THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, July 21, 1995 TAG: 9507210528
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER
LENGTH: Medium: 68 lines
Virginia Beach's efforts to build the Lake Gaston pipeline suffered yet another setback Thursday when a federal judge issued a ruling that is likely to delay construction at least another two months.
Beach officials had hoped they would receive a permit next Wednesday and could begin construction later this summer. Instead, the permit probably will not be issued until after the judge reviews North Carolina's arguments against the pipeline and renders a decision, promised by Sept. 22.
U.S. District Judge Thomas F. Hogan temporarily overturned a decision by U.S. Commerce Secretary Ronald H. Brown that had favored building the pipeline.
Hogan noted that it would be very difficult for North Carolina to meet conditions that would permanently overrule Brown's decision. But he said that North Carolina had raised ``serious legal questions'' in its challenge that required his review.
He said he issued a stay of Brown's decision after determining that Virginia Beach would be harmed less by a delay than North Carolina would be should the pipeline be constructed.
Virginia Beach officials were somewhat perplexed by the ruling, but undeterred in their plans to build the 76-mile water line to Lake Gaston. They were unsure whether the Federal Energy Regulatory Commission would delay issuing the final permit necessary for the pipeline until after the judge has made his decision.
``At worst it's a 60-day delay,'' Beach outside counsel M. Scott Hart said. ``It doesn't indicate in any way we're not going to win, in fact it says they are not likely to win.''
Bill Ellis, who represents the Roanoke River Basin Association, an anti-pipeline group of residents, business leaders and municipalities in Southside Virginia was ``delighted'' with the judge's ruling.
``It clearly means that there will not be any construction of the pipeline until after Judge Hogan has had an opportunity to consider the merits of North Carolina's . . . claims, and I think that's a very good thing,'' he said. ``I think he saw through the rather overblown claims of Virginia Beach to any sort of imminent harm as a result of not being able to proceed with construction.''
It was at Hogan's recommendation that Virginia Beach and North Carolina entered mediation last December, trying to resolve their 12 1/2 years of differences out of court. Settlement efforts collapsed earlier this month when a political stalemate in Richmond allowed the deal to expire without approval.
North Carolina, which would not consider a settlement without state legislative approval in Virginia, said then that it would recommence its legal opposition to the pipeline.
Jonathan Howes, North Carolina Secretary of the Department of Environment, Health, and Natural Resources said Thursday that North Carolina could still support the elapsed deal if the Virginia General Assembly would approve it.
``As the (North Carolina) governor said a few weeks ago, we're prepared to stand by our earlier agreement,'' Howes said, ``but if Virginia won't do what it pledged then we will fight.''
``We're very pleased that the judge's decision will give us further opportunity to challenge this project,'' he continued.
Last Friday, North Carolina formally told Judge Hogan that the settlement had failed and asked him to consider their concerns. His ruling was in response to that request.
KEYWORDS: WATER SUPPLY PLAN LAKE GASTON by CNB