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Merrimack Valley

February 10, 2010

Lawrence mill water rights battle settled, at least for now

LAWRENCE — A long, drawn-out battle over water rights in the city appears to have been settled — at least partially and at least for now.

Pacific Mills, at 300 Canal St., had sought for years to use the hydroelectric turbines in the basement of the mill to generate electricity for its tenants. The hope, according to mill owner Michael Perry, was to sell any additional power to other occupants of the island as well as to tenants.

But the only way to run the turbines, which need some work but are in otherwise good condition, was to use water in the North Canal to power the nearly 100-year-old equipment.

Enel North America, the company that owns the Great Stone Dam and the hydroelectric plant at the south end of it, declined to allow Pacific Mills to use that water. So Perry sued.

After lengthy deliberations, Land Court Judge Gordon Piper has ruled that Enel does not have to provide water to Pacific Mills to run the turbines.

Pacific Mills spokeswoman Alida Davis said the company disputes Piper's findings. In particular, she said, the mill power, a measure of water that creates energy, "has a pertinent easement. It runs with the land. It can't be relocated."

Right now, that mill power is being used by Enel, at the Great Stone Dam, rather than at Pacific Mills, which is where it was originally intended to be used, she said.

Under the lease agreement, she said, Enel is supposed to use that money for canal maintenance.

Davis said Pacific Mill is not undertaking any kind of appeal until it gets out of bankruptcy. The mill management company has been in Bankruptcy Court since the summer of 2008.

Enel said in a statement yesterday that "the ruling confirms that the water rights were legally conveyed to us about 30 years ago."

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