DATE: Wednesday, July 23, 1997              TAG: 9707230609

SECTION: LOCAL                   PAGE: B6   EDITION: NORTH CAROLINA 

SOURCE: BY PAUL SOUTH, STAFF WRITER 

DATELINE: CURRITUCK                         LENGTH:   62 lines

WATER PACT STIRS FRICTION BETWEEN DARE AND CURRITUCK

Officials from Carolina Water and a northern Outer Banks developer hinted that a legal fight may ensue if Currituck County tries to void an emergency water agreement between the utility and Dare County.

Under the agreement, Dare County would provide emergency water service to the utility's residential and commercial customers on the Currituck beaches. The private utility would do the same for Dare County if ocean overwash disrupts water service.

Letters from Carolina Water Service Group Vice President Carl Daniel and Bob DeGabrielle, president of the Currituck Outer Banks Improvement Association, were read at Monday's meeting of the five-member Currituck governing board.

Commissioners declined comment after the meeting.

Both letters were presented by attorney John Gladden.

The agreement, reached between Dare County and Carolina Water Service July 7, has ignited friction between the neighboring counties. A resolution passed by the Currituck County Economic Development Committee asked the Currituck commission to try to void the agreement.

In an interview last week, Currituck Board of Commissioners Chairman Paul O'Neal said there were concerns about the private utility's capacity to provide water and its ability to tie into Dare County's 8-inch water main.Company officials declined comment last week. But in letters to the commission, DeGabrielle and Daniel said the aim of the agreement was to meet the needs of residents served by the utility.

``Our company felt it was prudent and necessary to take measures that will help protect our customers in the event of a natural disaster,'' Daniel wrote. ``The fact of the matter is that as a result of our efforts to gain an emergency interconnect, more Currituck County residents are better protected than if we had done nothing at all. With all due respect, it is difficult to understand how taking steps to protect the public welfare can be viewed as anything but beneficial to Currituck County, regardless of who takes the initiative to do so.''

Daniel also hinted at a possible legal fight if Currituck County seeks to set aside the agreement, which also must be approved by Kill Devil Hills and Nags Head.

``Carolina Water Service is duty-bound to provide our customers with reliable utility service,'' Daniel wrote. ``This duty includes using our best efforts to restore and have utility service available in certain circumstances, such as during or after a natural disaster.''

``Accordingly, we will vigorously protect our right under any contract with Dare County, and will not tolerate contractual interference of any kind.''

DeGabrielle, an Outer Banks developer, serves as president of an organization representing a number of commercial and upscale residential developments. He said Currituck officials left COBIA members with no alternative but to link with Carolina Water and seek the emergency agreement with Dare County.

``To think the county would wish to interfere with our private negotiations borders on restraint of trade and raises legal questions and liabilities,'' DeGabrielle wrote.

He said the county's opposition to the agreement could hinder the north beach tourism industry.

``As a resort location whose financial success is dependent upon tourism, it perplexes us that the county would want to harm the goose that is laying the golden egg for the entire county,'' DeGabrielle wrote.

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