The court has provisionally granted four water-only resource consents for the proposed $993 million scheme.
Its interim decision - a copy of which was obtained by the Otago Daily Times yesterday - said that evidence from three expert witnesses appearing on behalf of the Lower Waitaki River Management Society had helped it decide to grant the consents.
The interim decision is subject to Meridian and parties which appeared before the Environment Court reaching agreement on major issues the court has identified.
A timetable has been set for that.
That may mean having a further hearing some time after the middle of June to resolve any issues on which agreement cannot be reached.
The granting of consents by Environment Canterbury (ECan) in December last year was appealed to the Environment Court by the Lower Waitaki River Management Society, supported at the 11-day hearing in June and July by interested parties Waitaki First and Moeraki consultant Dugald MacTavish.
At the end of its decision, the court indicated that without evidence from three of the society's witnesses it might have declined the consents.
"Without the comfort of their critical evidence we may have refused the consents on the grounds of the vagueness of proposed objectives and conditions [in the consents] on the subjects on which they gave their evidence," the court said.
It suggested "there was a reasonable case" for Meridian to bear the costs of those three witnesses - Dr Steve Rate (wetlands), Dr Rachel McLellan (braided-river birds) and Bill Chisholm (didymo).
A 35-year term has been provisionally granted for the consents.
Meridian asked for a 12-year period in which to exercise the consents - start building the scheme - but the court has required Meridian to carry out "necessary groundwork" and obtain other necessary resource consents within "a reasonable period [say six years]" or relinquish the consents.
Three issues which the court identified as having "come very close" to outweighing positive effects of the scheme were the effects of taking more than 200cumecs of water on the mauri (special character) of the river and its relationship with Waitaha; the need to protect significant habitats of native fauna, especially braided-river birds; and the need to preserve the wetlands of the lower Waitaki.
"We are not satisfied with the proposed mitigation nor compensation proposed [by Meridian] in respect of braided-river birds or wetlands," it said.
The court has outlined the issues it has with wetlands and braided-river birds and which it wants resolved.
The wetlands management plan is to be more focused and its objectives amended.
A timetable has been set to achieve that, starting with Meridian giving other parties its draft proposals by November 29.
Those parties have to confirm to Meridian by February 26 whether they approve of the draft proposals or advise what changes they want.
There are other steps in the timetable, which sets a deadline of June 14 so the hearing may be resumed to consider changes.
The court has asked for new proposed conditions for a study into the causes of a population decline of braided-river birds and how to change the braided-river bird management plan to achieve that.
The court has also asked all the parties to confer about any errors or inconsistencies in all the conditions of the consents.
If they can agree, a memorandum is to be filed with the court by November 29 and, if they cannot, submissions are to be lodged by January 29 and replies by February 26.
The court has given leave for any party to apply by November 27 to be heard further on five other specified issues.
