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Judge Clears Way for Power Plant Ground-Breaking

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Times Staff Writer

Tenneco Oil Co. on Tuesday successfully blocked a homeowner association’s attempt to keep it from breaking ground for a controversial power plant in Placerita Canyon and said it expects to begin construction today.

The Los Angeles County Board of Supervisors approved the project earlier in the day, which prompted the homeowner association to file suit in Superior Court to keep Tenneco from starting the project.

Moments after Judge Warren H. Deering turned down the Placerita Canyon Property Owners Assn.’s request for a temporary restraining order, Tenneco officials obtained a county grading permit required to break ground for the $35-million co-generation plant in Newhall.

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Called a Tax Bonanza

Tenneco says the plant, to be built near Placerita Canyon Road and Sierra Highway, will net local governments $63 million in taxes over its lifetime.

It is important to Tenneco to move quickly. If it fails to make substantial construction progress by next Tuesday, the city of Santa Clarita--which will be incorporated then--could stop the project.

But the judge’s decision Tuesday was only a partial victory for Tenneco. In a ruling issued in his chambers, Deering warned Tenneco’s attorneys that the company will be proceeding with construction at its own financial risk.

Another hearing in the suit filed Tuesday has been scheduled for January in Superior Court. At that time, a judge will hear a second request to stop the plant and will also listen to arguments about whether the project requires an environmental impact report.

Mel Ehrlich, a Tenneco attorney, said he was pleased with the ruling. “The homeowners can still have their day in court, and we can proceed with our project,” he said.

Michael McEntee, a spokesman for the homeowner group, said he was “delighted” with the ruling because the merits of the suit will still be heard.

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“On Jan. 22, we will have a hearing on whether or not the environmental impact report is required. If it’s determined that it is required, then Tenneco is sent all the way back to square one.”

Hazards Cited

The homeowner association filed suit against Tenneco and the county because members contend the gas-burning plant would create environmental and health hazards in the Santa Clarita Valley.

Last month, Carl Newton, acting attorney for the future city of Santa Clarita, urged the Board of Supervisors not to act on Tenneco’s request so the new city could decide its fate.

McEntee predicted Santa Clarita will join the suit after it incorporates Tuesday. An attorney for the recently approved city was present during the court hearing but was not entitled to speak since Santa Clarita is not a party to the suit.

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