The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Tuesday, November 15, 1994             TAG: 9411150301
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER 
DATELINE: VIRGINIA BEACH                     LENGTH: Medium:   57 lines

BEACH TRIES NEW STRATEGY IN PURSUIT OF PIPELINE

The city took another step Monday in its pursuit of the Lake Gaston pipeline by asking a federal court in North Carolina to loosen restrictions on building the 76-mile water line.

The city asked the U.S. District Court in Raleigh to permit construction of the pipeline once the city condemns the land it needs along the banks of Lake Gaston. The 4 acres are now owned by Virginia Power and would serve as the entry point of the pipeline into the lake.

The court ruled in 1990 that Virginia Beach could not proceed with the project until the injunction is lifted or the Federal Energy Regulatory Commission, which oversees Virginia Power, approves the project.

The city would like to add another option, allowing the pipeline to be built when ``Virginia Beach acquires the easements needed for construction and operation of its facilities in Lake Gaston by condemnation.''

The Federal Energy Regulatory Commission said in the summer that it won't sign off on the project until it completes an extensive environmental review of the pipeline, which would bring 60 million gallons of water a day to South Hampton Roads.

Virginia Beach would get about 48 million gallons of that water per day, Chesapeake would receive about 10 million gallons, and the city of Franklin and Isle of Wight County would each get about 1 million gallons.

To avoid the need for at least six months of study, the city decided to try to condemn the property in state court rather than continuing to seek permission from the federal commission to cross Virginia Power property.

The commission regulates the utility's hydroelectric power operation at the lake and therefore had to approve any easements.

Last week, the Virginia State Corporation Commission, which also oversees the utility, granted the city permission to seek condemnation of the 4 acres.

The city is waiting to see whether it can alter the federal injunction before starting condemnation proceedings in state court.

Virginia Beach City Councilman Louis R. Jones said he is optimistic the federal court will uphold Virginia's right to determine water issues affecting its citizens.

``We think that the decision by the State Corporation Commission to give us the right to condemn the property for access to Lake Gaston was a step forward for the city of Virginia Beach,'' Jones said. ``And hopefully, the federal court will see fit to modify their injunction, allowing us to proceed with the construction of the pipeline once we take title to the property.''

North Carolina officials could not be reached for comment late Monday but have said they do not think Virginia Beach's strategy for circumventing federal approval will succeed. The state does not have the legal right to override a federal decision to study the project's environmental impacts, pipeline opponents have argued.

KEYWORDS: LAKE GASTON PIPELINE NORTH CAROLINA VIRGINIA by CNB