A DEVELOPER'S legal challenge against a planning refusal has been rejected by the High Court.

Eco Energy's application to opencast coal from 144 acres of land between Coxhoe, Bowburn and Old Quarrington, near Durham City, was rejected by Durham County Council because the authority felt it would hamper efforts to regenerate the area.

The scheme was strongly opposed by residents and Durham Labour MP Gerry Steinberg.

The company appealed against the decision but Deputy Prime Minister John Prescott rejected it following a public inquiry.

Yesterday, in the High Court, Mr Justice Collins threw out a challenge by Eco Energy (GB) Ltd against Mr Prescott's ruling.

He decided that the company was not the same as the consortium that made the original planning application and mounted the appeal, and could not make the challenge.

Mr Justice Collins gave the council permission to apply for costs, thought to run to several thousand pounds, against Robert Clarke, described as the person behind the scheme, as the firm apparently has no assets.

County council planning officer Claire Teasdale said: "This is good news for the people of Bowburn, Coxhoe and Old Quarrington."

The company could not be contacted for comment last night.