A state Superior Court judge on Friday rejected a motion filed by a coalition of eight Native village corporations to block further drilling and water usage at the massive copper and gold Pebble prospect in Southwest Alaska, according to attorneys in the case.

But Judge Craig Stowers also rejected the state's motion to dismiss the case, which alleges that state regulators violated the Alaska Constitution when they approved exploration permits for the Pebble project.

"He's allowing the case to go forward, which is the most important thing," said Vicki Clark, an attorney for the Trustees for Alaska, the environmental law firm representing the plaintiffs.

A state attorney and the companies trying to develop Pebble said they are pleased with Stowers' decision not to void the permits granted by the Alaska Department of Natural Resources.

"We believe he made the right call," said Ruth Hamilton Hesse, a state assistant attorney general.

"It would have definitely had an impact on our ability to do work. ... It could have caused delays in our project," said Mike Heatwole, spokesman for the Pebble Partnership, which owns the mining leases to the controversial mineral prospect. Developing Pebble into a major mine is controversial due to its location near some of Bristol Bay's world-class salmon streams.

The lawsuit against the state, filed by the coalition of Native firms, called Nunamta Aulukestai, and several individuals -- including former Alaska first lady Bella Hammond and constitutional convention delegate Victor Fischer -- claims that the DNR is failing to provide the public a chance to weigh in before it grants mining companies permits to drill holes in the ground and use water from nearby streams.

State officials say that contrary to the lawsuit's claims, they are not required to gather public comments before granting such permits.

But the plaintiffs say the state's current permitting system doesn't protect the public's interest. They allege that the exploration drilling at Pebble has scared off wildlife, for example. The Pebble Partnership says that isn't true, and says it strives to leave no permanent traces of its drilling.

The case has been set for a 10-day trial, starting Sept. 7.

The Pebble Partnership announced this year that it will finalize its development plans for a mine next year and will attempt to obtain permits by 2013. It says it could begin mining by 2015.