Randleman Lake operators settle long-standing lawsuit

Apr. 15, 2014 @ 04:25 PM

The agency that operates the Randleman Regional Reservoir announced Tuesday that it has settled a long-running inverse condemnation lawsuit for $2.35 million.

The mediated settlement would resolve a dispute dating from last decade between the Piedmont Triad Regional Water Authority and seven downstream hydroelectric facilities operating on the Deep River. The hyrdoelectric providers argued that the dam constructed on the river to create Randleman Lake financially damaged them by reducing water flow and power generation.
The Water Authority lost the case in Guilford County Superior Court and in a series of appeals that reached the state Supreme Court.
The agency faced potential damages of several million dollars. Last December, an outside auditor who performed the annual audit of the Water Authority indicated that losses at trial could total up to $5 million.
The Water Authority expects the settlement should be concluded by June 1, subject to completion of paperwork by the plaintiffs, said agency Executive Director Greg Flory.
“The authority chose to enter into this mediated settlement agreement to end the controversy and litigation over riparian rights in the flow of Deep River,” the agency said in a statement.
The settlement amount of $2.35 million includes all fees and costs and “disposes of future claims for additional losses from water used within the parameters of the authority’s permits for expansions of the water treatment plant up to 48 million gallons per day,” according to the Water Authority.
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