MONTPELIER, Vt. (AP) – Vermont may sue to stop International Paper Co. from burning shredded tires at its Ticonderoga, N.Y., paper mill, a spokesman for Gov. James Douglas said.

International Paper hopes to burn shredded tires to generate some of the electricity needed to run the plant, and thereby cut its oil bills. The mill is located across Lake Champlain from Shoreham.

The New York Department of Environmental Conservation issued a draft permit last month for a two-week test burn, which is subject to public comment and review by the U.S. Environmental Protection Agency.

Douglas and the Vermont Attorney General will pursue every legal option to prevent “the potentially toxic tire burn,” said spokesman Jason Gibbs.

The threat comes as New York officials prepare to hold a public hearing on the test burn Wednesday. Hundreds of Vermont and New York residents, experts and environmental groups are expected to testify and submit comments.

Vermont has been fighting the test burn since it was proposed in 2003, but the state has no official standing. However, New York officials have promised to consider comments from Vermont residents and will accept a transcript of a public hearing to be held by Vermont officials in Middlebury on Nov. 15.