A hearing set for Jan. 12 in Richmond focused on Battle Creek Landfill was postponed earlier this week at the request of National Waste Services (NWS) of Virginia and its attorneys and financial backers.

The move comes as reports from local officials indicate that Page County and NWS backers CapitalSource Finance of Maryland have been in talks about upcoming landfill litigation.

The hearing, which had been scheduled in Richmond City Circuit Court this Wednesday, was postponed one day before proceedings were set to begin. NWS was asking the court to reverse the state’s permit revocation order which shut down Battle Creek in March 2004.

The closure of the facility by the Virginia Department of Environmental Quality followed repeated citations against Battle Creek for operational deficiencies.

NWS’s attorney Patrick Cavanaugh said he requested that this week’s hearing be continued after landfill company investors asked for more time to meet with attorneys.

"I received a request from CapitalSource and the other creditors to postpone the hearing at least 10 days until they have another chance to meet," Cavanaugh said. "I have been out of town and I’m trying to catch up, but apparently there has been some developments in Delaware and with the investors."

Cavanaugh, however, declined to speak about the developments and said he was unaware of any new information related to the case.

But according to Page County officials, there have been ongoing negotiations with CapitalSource and NWS over at least the past month. Reports indicate that the sides were talking about a possible settlement to avoid the pending court battle.

CapitalSource Managing Director Joe Kenary declined to comment on the situation. And Page County’s landfill attorney Ann Neil Cosby said she has not met directly with CapitalSource.

"We have not met with CapSource, but there are always ideas floating around out there," said Cosby, neither confirming nor denying speculation about a settlement.

The postponement moves this week’s hearing to Jan. 25, the same day that other arguments related to Battle Creek Landfill were set to be heard by Judge Theordore J. Markow.

NWS is petitioning the court to reverse the state’s permit revocation and hold a formal hearing where NWS representatives could defend themselves against DEQ’s claims. The landfill company also hopes the judge will allow the landfill to reopen.

NWS claims the state did not follow proper procedures when issuing the revocation order. In court documents, NWS alleges DEQ conspired with the Page County Board of Supervisors to drive out NWS.

The DEQ argues that it followed state guidelines when preparing and issuing the permit revocation, seeing no other alternative to get Page County and NWS to comply with the landfill’s operating permit.

Also on tap for Jan. 25 is the county’s claim that its contract with NWS should be terminated.

For now, Page County’s Cosby is making plans for the upcoming court date.

"Both of these hearings are still set. And at this point I think they will go forward," Cosby said. "It was NWS’s and DEQ’s decision to move tomorrow’s hearing. And on the 25th, NWS will go first and then we will follow. We are fine with that. Frankly, we think the two motions should be heard together."