State Signs Unusual Environmental Clean Up Plan

State environmental regulators have reached an agreement with eight North Carolina manufactured gas plant owners to hasten the clean up of 27 abandoned coal gas operation sites across the state. Under the innovative agreement, the gas plant site owners together will pay the state $425,000 to fund the salaries of two Division of Waste Management engineers who will work exclusively on coal tar cleanup for three years. In return, the industries can accelerate their cleanup schedules by having qualified state personnel devoted to reviewing their work.

The agreement between the state Department of Environment and Natural Resources and the N.C. Manufactured Gas Plant Group is the state's first effort with directly funded state oversight. Using the funding provided by the parties, the state can hire staff dedicated to the assessment and cleanup of these sites without any cost to taxpayers. Prior to the agreement, the division lacked the resources to oversee these cleanups within a reasonable time. Second, this is the first cleanup planned between the division and a group of responsible parties with multiple sites.

Ralph Roberts, NC MGP chairman said, "Negotiating one master agreement for all of the MGP sites saves the division and the MGP Group members' time and money compared to negotiating 27 separate agreements. More importantly, having two division engineers dedicated to our sites will permit us to move forward with site cleanups. This will allow group members to remove liabilities from our books and put these properties back into productive uses. This agreement is good for the division, taxpayers, NC MGP Group members and the communities where the former MGP sites are located."

The unusual agreement came about when division officials suggested the various companies that owned abandoned coal gas plants conduct voluntary cleanups. The companies formed their own industry group, NC MGP, to negotiate with the division. The pact commits all group members to assessments and necessary remediations at each site. If three years is insufficient, those members with incompletely cleaned sights can renew the agreement, and provide additional funds for continued oversight. The division has agreed to prioritize cleanup operations in order to concentrate on sites with the highest environmental threats.

"I think that we have found something with this direct funding approach," said Bruce Nicholson, head of the division's Special Remediation Branch. "The group had no problem funding oversight positions because they wanted state oversight as much as we did. This allows us to get these sites cleaned sooner with less cost to taxpayers."

Group members include Duke Power, Carolina Power and Light, Public Service Co. of North Carolina, NUI North Carolina Gas (formerly Pennsylvania and Southern Gas), Piedmont Natural Gas, Greenville's Utilities Commission, and the cities of Rocky Mount and Wilson.

Manufactured gas plants processed coal to create coal gas, which was used before natural gas rose to popularity in the 1950s. The by-product, coal tar, was either sold, placed in on-site pits which have since been abandoned, or simply dumped into nearby stream beds. Over time, the coal tar, which contains carcinogenic constituents, has migrated through both soil and ground water. The cleanup will involve remove large volumes of contaminated soil, water, and, potentially, stream bed sediment.


State Plans Hearings on Water Supply Plan
The state Department of Environment and Natural Resources is seeking public input on a draft of the first ever State Water Supply Plan for North Carolina. The non-regulatory plan, mandated by the 1989 General Assembly, describes the major water supply issues facing state and local governments now and over the next decade and strategies for addressing these issues.

"For the first time we have a statewide review of what areas of the state are facing problems with having an adequate water supply and what we need to do to meet these future needs," said Bill Holman, secretary of the department. "If we are to ensure that all North Carolinians continue to have enough water, we must look at the entire state and coordinate the efforts of all our co mmunities."

The plan includes four recommendations:
1. Ground water withdrawals should be regulated in the 15-county Central Coastal Plain to ensure that these aquifers remain a productive, high-quality, sustainable water supply for the region.
2. Water systems using on average more than 80 percent of their available supply should actively manage their water demand and pursue additional water supplies.
3. All water systems should have a Water Shortage Response Plan to reduce the likelihood of serious effects during a drought or other water shortage.
4. Local governments are encouraged to seek regional water supply solutions where feasible, since increasing costs and regulatory requirements for new water supplies and treatment facilities make it less practical for communities to act independently to meet future water supply needs.

The plan, a compilation of more than 500 detailed local water supply plans, pulls together information that local governments should consider when planning their future water supply needs. It also provides current and projected water supply and demand information through 2020 for local systems. An atlas-style series of river basin summaries provides basin-specific information about factors affecting water demand, water use by type, and general water availability for each of the major river basins in the state.

Several informational meetings will be held across the state in late June to answer questions about water supply planning and to receive comments and suggestions about the draft plan. Interested parties are encouraged to review the plan at the N.C. Division of Water Resources web site at
www.dwr.ehnr.state.nc.us/wsas/nc_swsp.htm. Anyone wishing to comment on the plan should send questions and suggestions to swsp@dwr.ehnr.state.nc.us or the Water Supply Planning Section, Division of Water Resources, 1611 Mail Service Center, Raleigh, NC 27699-1611, or call 919-733-4064. The final State Water Supply Plan, including updated local water supply plan information, will be released by November 2000.

School Merger Suit: Lawyers for the Kings Mountain school board asked a state administrative law judge to block a plan, approved last week by the State Board of Education, that would lead to the merger of Cleveland County's three school systems. Kings Mountain claims the merger plan is invalid and that the State Board of Education exceeded its authority when it approved the merger June 1. Kings Mountain school officials contend Gaston County must first approve the merger because part of the Kings Mountain district is in Gaston County. But Cleveland County, which supports the merger, counters that the Kings Mountain district was never officially extended into Gaston County and approval there is unnecessary. State Board of Education Chairman Phil Kirk said the board agrees with Cleveland County.

Economic Development News: Two of the state's most economically distressed counties got some good news recently.

* FCC Co. Ltd., a Japanese company, broke ground for a Scotland County plant that will create 125 jobs over the next three years. The company is building a $19 million plant to produce clutches for motorcycles, all-terrain vehicles and for automatic transmissions for cars. The company will occupy a 75,000-square-foot facility and expects to be fully operational by April 2001.
* Reser's Fine Foods held a ceremonial groundbreaking for a 180,000-square-foot food production and distribution center in Halifax County. The company, which makes and sells over 50 different kinds of potato salads, is investing $18 million and plans to hire 320 workers over the next three years.
Both companies are eligible for the maximum state tax credits because they are locating in Tier 1 counties.
Flying in the state helicopter to the Scotland County groundbreaking ceremony, Commerce Secretary Rick Carlisle and other state officials got a terrible scare when two Army helicopters suddenly appeared. The state helicopter had to make an emergency descent to avoid a mid-air collision. Observers said Carlisle appeared visibly shaken after the state helicopter landed safely.



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