Fayetteville, N.C. — The Fayetteville City Council was to consider at its Monday night meeting how to pay for extending water lines to a neighborhood with contaminated wells.

The Public Works Commission has formulated a funding plan after council members approved extending water service to residents on Rim Road in August 2007.

Water lines will be extended to 14 lots, including seven that have contaminated wells, at a cost of $340,400. Each homeowner will be assessed $5,000 for water service, according to the PWC's plan.

The PWC also anticipates grants of $56,659 from the state Department of Environmental and Natural Resources and $45,000 from the North Carolina Rural Center.

Benzene seeped into the groundwater near the intersection of Old Raeford and Rim roads years ago from leaking underground tanks at a former gas station, state environmental officials said. The leaking tanks were discovered in 1988, and residents tapped into two uncontaminated wells in the area.

In July, residents told WRAL they wanted the city to provide them with safe drinking water. Fayetteville annexed that area in October 2005 but had not yet extended water and sewer lines to it.