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

DATE: Wednesday, June 7, 1995                TAG: 9506070473
SECTION: LOCAL                    PAGE: B1   EDITION: FINAL 
SOURCE: BY ROBERT LITTLE, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Medium:   82 lines

LEGISLATORS OPTIMISTIC ON GASTON BUT THEY EXPECT TO REDRAW BEACH'S ACCORD WITH N.C.

General Assembly members were optimistic Tuesday that they can reach an agreement to approve the Lake Gaston pipeline within three weeks, but only by unstitching and retailoring the version offered by negotiators in Virginia Beach.

The problem: Lawmakers from Southside Virginia and even parts of Hampton Roads said the agreement has been imposed on them by Virginia Beach officials who negotiated the settlement privately with North Carolina leaders.

Members of a special committee of the House of Delegates held the legislature's first hearing on the settlement Tuesday, just three weeks before the proposed compact is set to expire June 27. The House committee scheduled a series of meetings and hearings over the next two weeks, in tandem with a similar state Senate committee.

The committee also appointed two subcommittees: One charged with smoothing out differences among delegations from various parts of the state and the other to confer with North Carolina officials who also must approve the deal.

The chairman of the House committee, Franklin P. Hall, D-Richmond, said some legislators seem unlikely to support the pipeline without more inclusive negotiations.

``We've come a long way not to try our best to wrap this thing up,'' Hall said.

Virginia Beach City Manager James K. Spore said Tuesday that he is concerned about Hall's interest in reopening the settlement negotiations.

``I think to try and start renegotiating a settlement agreement that took four months to negotiate, at this point, would be very difficult,'' said Spore, who did not attend the committee meeting because it conflicted with a City Council meeting. ``I'd like to know what their concerns are.''

The onus remained, however, on negotiations in Norfolk and Virginia Beach, where officials have been unable to agree on a portion of the agreement that would restrict Norfolk's ability to sell surplus water. Without a quick compromise between those two cities, most lawmakers agreed, participation by the General Assembly is pointless.

``A lot of members think we should all just stop - wait until Norfolk and Virginia Beach solve their problems,'' said Del. Alan A. Diamonstein, D-Newport News.

Said Del. Glenn R. Croshaw, D-Virginia Beach: ``It's crystal clear: If Norfolk and Virginia Beach don't reach an agreement in the next 10 days, this thing is dead.''

Still, General Assembly members promised to trudge on, trying to settle other differences so the pipeline agreement can be voted on quickly if Norfolk and Virginia Beach negotiators reach a compromise. Gov. George F. Allen has said he would call a special General Assembly session on short notice.

One key to the deal's success could be appeasement of Southside lawmakers who believe that the compact restricts their rights to use Lake Gaston water. Lake Gaston straddles the Virginia/North Carolina border in Brunswick and Mecklenburg counties.

The proposed agreement would allow Virginia Beach and other South Hampton Roads municipalities to pump as many as 60 million gallons of water from the lake each day. Norfolk currently provides all of Virginia Beach's drinking water.

``They're buying Norfolk's water now, but, under this agreement, they're not paying the Roanoke River Basin anything,'' said Ralph Axselle Jr., an attorney representing a group of Southside businesses.

Attorneys for Virginia Beach had hoped the legislative committees would address only a section of the agreement that would allow water to be pumped from the lake and restrict future ``out-of-basin transfers'' - the only portion requiring legislative approval.

But Hall said the House committee will address all aspects of the agreement before considering anything in a formal session of the full Assembly.

``Let no one be misled,'' he said. ``We don't intend to limit it to one paragraph.''

The debate, therefore, often centered on the agreement's more contentious details.

``Our rate payers and our taxpayers are not going to be extorted by any jurisdiction for this water,'' Croshaw said.

Countered Norfolk Del. George H. Heilig Jr.: ``We're being made out as the bad guys in this thing because we haven't reached an agreement within 60 days - when my city knew nothing about what was being put into this agreement.'' by CNB