State Department of Transportation and Hawaii Superferry officials met yesterday to discuss the fallout from Monday's court ruling, including whether the company will have to continue making monthly payments of about $191,000 to the state in accordance with its operating agreement with DOT.

Under the terms of the agreement, Superferry must pay $2.3 million or 1 percent of its gross revenues, whichever is greater, in each of the first three years of the 22-year deal.

The payments are going into the Harbors Special Fund, which is responsible for reimbursing the state for the general obligation reimbursable bonds it issued to build $40 million in ferry-related improvements at Honolulu Harbor, Kahului Harbor on Maui, Kawaihae Harbor on the Big Island and Nawiliwili Harbor on Kaua'i.

The Harbors Special Fund collects all commercial harbor income, including mooring, dockage, and permit fees, tariffs and lease rent, so if Superferry folds, money from other harbor users will be used to reimburse the state for the ferry projects.

DOT Harbors Division chief Michael Formby said the agency has instructed its contractor, Belt Collins, to cease work for now on a $1.5 million environmental impact statement required under Act 2.

To expedite the study, the law allowed shortcuts from the kind of review set forth under Chapter 343, but the Supreme Court ruling invalidating Act 2 likely means the DOT will have to perform a full-blown EIS.

"We are reviewing options, including the incorporation of Act 2 EIS data into a Chapter 343 environmental review," Formby said.

The DOT released a draft EIS in January under Act 2 that said Hawaii Superferry and other large-capacity interisland ferries could have significant negative impacts, but that most of the concerns could be substantially addressed with mitigation measures, many of which are already in place.

The report also said interisland ferry service provides a valuable transportation option for people, vehicles and cargo and enhance the state's disaster relief system.

A final EIS was expected this summer. A new EIS process could take months or even years.