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Alcoa deal raises questions, riverkeeper says

'We've done nothing wrong,' president of lake association says

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The Yadkin Riverkeeper is accusing the president of the High Rock Lake Association of potentially violating state law by illegally lobbying for Alcoa.

Riverkeeper Dean Naujoks said yesterday that the state is investigating Larry Jones, the president of the association. Jones said yesterday that he has not heard from the secretary of state, the office that would investigate such a violation. A spokeswoman for the office couldn't comment on potential lobbying violations. That information can only be made public through a court order, she said.

Sen. Stan Bingham, R-Davidson, and Naujoks said they believe that Jones, who lives in Salisbury, changed his position on Alcoa's relicensing bid at about the same time he made a land deal with the company.

Alcoa wants to renew its 50-year license with the Federal Energy Regulatory Committee to operate four dams on the Yadkin.

In a letter to the secretary of state's office, Bingham and Naujoks said they believe that a land swap between Jones and Alcoa could be considered compensation for Jones' willingness to lobby for Alcoa, which means he should have registered as a lobbyist.

"It gives the appearance of a conflict of interest that has not been addressed," Naujoks said. "It doesn't pass the smell test."

If convicted, a person who has not registered to lobby can face fines and be barred from lobbying for a period of time.

The lake association, whose membership includes about 1,000 families, is among 23 stakeholders who signed a relicensing settlement agreement with Alcoa. Such an agreement is part of the relicensing process.

Jones said that he and Alcoa had been in discussions for several years about their respective properties. In 2005 and 2006, they began talking in earnest about an agreement. At about the same time, Jones was negotiating with Alcoa as part of the relicensing agreement. The agreement was signed in 2007. Jones said that after he talked with Alcoa about a land trade in 2005, he talked to his board, and they refused his offer to resign.

In a quitclaim deed dated Oct. 20, 2009, Jones agreed to give up the title on two easements that gave him access to the Yadkin, and Alcoa gave him about 2.5 acres, which allowed him full ownership of a road.

Naujoks said that the swap, coupled with Jones' support of Alcoa, raises questions. He said that until about 2007, Jones frequently criticized Alcoa.

"The bottom line for me is if the Yadkin Riverkeeper had a strong opposition against a polluter and suddenly changed 180 degrees and it came out that there had been some conveyance of land, I would expect people to question that," he said.

Jones said his support of Alcoa's relicensing bid is based on steps Alcoa said it would take to benefit lake users. He denied he was a lobbyist. Jones said he traveled to Raleigh three times last summer to testify before House and Senate committees.

"We've done nothing wrong," Jones said. "And the truth will stand for itself."

Henry Booke, a longtime member of the High Rock Lake Association, said Jones' deal was made with the full knowledge of the lake association's board.

Booke said Jones has been critical of Alcoa but he threw his support behind Alcoa after the company agreed in 2007 to certain provisions in the relicensing settlement agreement that Jones believed would benefit lake users.

"Larry is as honest as you can get and is very much working hard for this lake and the users of the lake," Booke said.

lo'donnell@wsjournal.com


727-7420

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