The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Saturday, May 13, 1995                 TAG: 9505130015
SECTION: FRONT                    PAGE: A12  EDITION: FINAL 
TYPE: Editorial 
                                             LENGTH: Medium:   58 lines

THE GASTON PIPELINE AGREEMENT WHAT DOES NORFOLK WANT?

Federal mediation answered one major question that has delayed the Lake Gaston pipeline for more than a decade: What does North Carolina want? In part, it wants this region's water to stay in this region. But in agreeing to that demand, Virginia Beach is forced to find an answer to the question now delaying the pipeline: What does Norfolk want?

Water is Norfolk's main salable commodity. Virginia Beach has been its main customer, but completion of the Gaston pipeline will end that arrangement. Completing the pipeline depended on North Carolina's support, and Carolina's support depended on Norfolk's agreement not to sell its water outside the region. Carolinians see a good reason for that restriction: If Norfolk has water to sell, why must Virginia Beach tap Lake Gaston?

But Virginia Beach had no authority to commit Norfolk to that restriction. If Norfolk loses its main regional water customer, and agrees not to sell water outside the region, it wants some sort of com-pen-sa-tion.

Norfolk will profit from the service contract with the Beach to treat and convey Gaston water. Norfolk gains, too, from the Beach's multimillion-dollar contribution to upgrading Norfolk's water treat-ment facilities. But neither is inducement enough, Norfolk says. What would be? Revenue sharing, Norfolk says. What revenues? What share? Norfolk doesn't say, not publicly anyway.

The Gaston project started because Norfolk can't forever supply Virginia Beach enough, and Virginia Beach didn't want to stay forever at Norfolk's mercy. Yet the Beach ends up at Norfolk's mercy to tap its alternative source of water. Where both ought to end up is in a regional, if not statewide, water authority that (figuratively) dumps all water in one pot, pumps each jurisdiction its share and prorates expenses.

If that happens by June 27, Marcia Clark will wed F. Lee Bailey. What must happen by then? Agreement among Norfolk and Virginia Beach - and Chesapeake, Franklin and Isle of Wight, which will share in Gaston water and ought to share in all costs - that helps Norfolk offset its coming loss. The Beach could continue to buy some water Norfolk offers at a reasonable price, a proc-ess that might underline a sad fact: Holding water hostage isn't Norfolk's ticket out of municipal poverty, and is even less the route to the regionalism officials so regularly profess.

Also by June 27, the General Assembly must meet to approve certain provisions of the Gaston agreement. Governor Allen says he won't call the session until approval is assured. Democratic legislators here and elsewhere say the Republican governor must move first. Beach Sen. Clancy Holland will hold hearings around the state to air the citizens' arguments while politicians work their deals up the pipeline and down.

Dealing with Norfolk is the crucial test, and not of Beach Republicans' influence with the governor. In making or break-ing the Gaston agreement, Assembly Democrats, not the governor, get first dibs. by CNB