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Judge Nixes Town's Water Deal With Nestle

Thursday, March 24, 2005 8:11:52 AM
By BRIAN MELLEY

SACRAMENTO, Calif. (AP) - A California judge has blocked a rural community's plan to sell more than a half billion gallons of spring water annually to Nestle SA, the world's largest food and beverage company, ruling it failed to pass environmental scrutiny before it was signed.

The decision Monday by Siskiyou County Judge Roger Kosel effectively halts the village of McCloud's efforts to sell water to Nestle for a proposed $120 million water bottling plant that supporters said would revitalize the former lumber town at the base of Mount Shasta.

A group known as Concerned McCloud Citizens had sued after learning the deal would give Nestle up to 521 million gallons of the town's drinking water for as little as $300,000 a year. The 50-year deal could be extended for a century with little control by the unincorporated town.


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