The Town of Tiverton has filed an appeal in Superior Court over the state's approval of National Grid's plan to buy the Rhode Island assets of New England Gas. The appeal also asks the court to "stay," or set aside, that approval until it makes a ruling on the appeal. A court hearing on that request is scheduled for Tuesday at 9:30 a.m.

If the motion to set aside the approval is granted, it could delay the closing of the $575-million acquisition, which is scheduled for Aug. 25.

The appeal was filed Aug. 11 by lawyers Andrew M. Teitz and Jeanne M. Scott on behalf of the town.

The town's appeal claims that the Rhode Island Division of Public Utilities and Carriers, the state agency that approved the transaction, erred in its decision because it didn't require Southern Union, the parent of New England Gas, to put funds into an escrow account in case Southern Union is found liable for cleaning up a major hazardous waste site in Tiverton.

During the hearing process at the DPUC, Tiverton, as well as the attorney general's office, recommended that the sale be conditioned upon Southern Union establishing an escrow account of between $30 million and $55 million, the anticipated cost of the cleanup.

The DPUC issued its approval without any such condition. The hearing officer, John Spirito, said that Southern Union had demonstrated that it had the means to pay for a cleanup, if the company is found liable.

Attorney General Patrick C. Lynch has said his office also plans to appeal the DPUC decision. The deadline for doing so is Aug. 24.

tbarmann@projo.com / (401) 277-7369