By Dennis Box-The Courier-Herald

The future of Lake Tapps as a drinking water reservoir has become increasingly complex and confounding.

On the surface, the water rights issue appears to be moving forward. But below the calm talk, there are some swirling currents of unrest.

There was a sense of optimism several years ago when it appeared the lake would be saved by converting it to a drinking water reservoir. But the euphoria has given way to serious concerns among lakeside residents and others about the devil in the details.

Tom Loranger from the Department of Ecology said the work on the water rights is nearly done, but the department expects legal challenges once the rights are reissued to Puget Sound Energy, owner of the lake.

The drinking water rights were first given to PSE in 2003, which would convert the lake from a hydroelectric utility to a consumptive water reservoir.

The utility agreed to sell the lake, flume, barrier dam and mothballed hydroelectric plant to Cascade Water Alliance, an eastside water wholesaler for $10 million. Once the water right is issued and cleared of all legal challenges, Cascade will pay PSE another $27 million.

Some officials have voiced concern, off the record, about the ability of Cascade to close the deal with PSE.

&#8220We are trying to finalize an agreement with the Puyallup (Tribe of Indians) and Muckleshoot (Indian Tribe) and get the contract with Puget (Sound Energy) finalized,” said Mike Gagliardo, general manager for Cascade.

Cascade is hoping to avoid legal challenges from the tribes, who hold the senior water rights dating from the 1854 Medicine Creek Treaty, but the quantity of the water under the rights has never been decided.

The water level in the lake from Memorial Day through September and the amount of water left in the river after the diversion to Lake Tapps has been a hot topic for years and is of great concern to residents, the tribes and Cascade.

The tribes have stated the river needs 800 cubic feet per second in July and 500 to 650 cfs in August for fish.

Residents are worried the lake will be left well below recreational levels too often during dry years.

The Lake Tapps Community Council has been raising funds for what they fear will be a protracted legal battle once the water rights are reissued by Ecology.

&#8220It's pretty quiet right now until someone comes up with some answers,” said Chuck Romeo, president of the community council.

According to Leon Stucki, also a member of the council, the members and many residents are &#8220very concerned. They (Cascade, PSE and the tribes) have been negotiating in secret for three or four years and they're not including the public in any way. We are really not trying to be greedy (with the water). We're happy to give them lots of water, just so there is a little water to go into the lake.”

Loranger said the water rights will likely be issued by Ecology to PSE, probably before the end of the year, whether or not the various parties come to an agreement on the amount of water left in the river.

Another problem hanging over the entire sale of the lake concerns Cascade asking the Legislature for the power of eminent domain.

Cascade plans to build a treatment plant near the lake and a pipeline extending to the Bellevue area to provide eastside customers with water. Granting Cascade eminent domain powers allows the company to take possession of private property if needed to build their pipeline. Eminent domain is a government power, usually exercised by cities, counties or the state when building roads or other public facilities. The Legislature can grant the power to a private business if there is a public benefit.

The bill giving Cascade the power passed through the House during the last session, but stalled in the Senate.

Gagliardo said Cascade is working on next year's legislative agenda, and eminent domain will be one of the prime issues.

&#8220We are working on building a pipeline without it,” Gagliardo said. &#8220But it would be much easier with it.”

Legislative insiders are saying the prospect of the bill passing during the 2008 session is poor at best.

City officials from Bonney Lake, Auburn and Sumner have been assessing different strategies concerning the lake.

&#8220It could be all pie in the sky,” Deputy Mayor Dan Swatman said. &#8220But the lake is key to the area.”

Dennis Box can be reached at dbox@courierherald.com.