It’s full speed ahead for Nichols Boat Builders on the launch later this month of a nearly completed cruise ship.

Nichols was given the go ahead Tuesday to resume work on the 600-foot-long rail system it intends to use to launch the 360-foot Empress of the North from its yard at Holmes Harbor.

A stop work-order was issued against the project on May 27 by the Army Corps of Engineers after Nichols failed to acquire permits for the construction. The order was lifted Tuesday to allow work to resume on the rails. At the same time, the state Department of Ecology and Island County also gave Nichols the nod to continue work on the rails.

This latest news should assure that the launch will go ahead as scheduled on June 16.

“All the agencies involved have given us the OK for the launch,” said Bryan Nichols. “(But) There are still details to be worked out.”

According to the Army Corps, Nichols failed to get a “substantial shoreline development” permit required to build its rail system. Without the rail system completed, delivery of the new, 3,500-ton cruise ship to its buyer, American West Steamship Company, would have been be delayed. Nichols has been meeting with the Army Corps, Island County, Ecology and the state Department of Fish and Wildlife since May 28 to resolve the impasse.

“All four agencies have been working hard with us, to help us solve this within the laws of the state.” Nichols said.

In addition to the lift on the stop-work order, the DNR has issued a Hydraulic Project Approval, another hurdle Nichols said his company needed to jump to put the Empress in the water.

Nichols said the outpouring of support from the community has been tremendous.

“We have been bombarded with e-mails, telephone calls and people stopping by offering support, concerned about the families who work for us. We really appreciate it,” Nichols said.

Lifting the stop work-order allows the rail system to be completed.

The Army Corps and the U.S. Attorney’s Office are working on two agreements that will allow Nichols to complete the rails and launch the $50 million ship in June.

The scramble will likely cost Nichols something. Patricia Graesser, a spokeswoman for the Corps said, “the U.S. Attorney’s office is working on a second agreement which says Nichols may be required to post a bond for mitigation work, agree to remove the rail system within 10 days of the launch date, and pay a $50,000 fine,” Graesser said.

Island County and Ecology have imposed a $47,000 fine with reference to the Corps’ mitigation bond.

As a secondary outcome to this situation, county officials hope this process will lead to a “master permit” for Nichols’ launch site.

“We are scheduling quarterly meetings with Nichols to begin discussing what a master permit will look like,” said Phil Bakke, Island County’s planning director. “A package that will allow them to continue their business, while protecting the environment.”

Bakke said he also wants to have more extensive talks with Nichols management to discuss what they can and cannot do at their shipyard. The county has been trying for several years to work with Nichols in developing a master permit for their launch site, he said.

“We have four file drawers filled with permits issued to Nichols through the years. It’s difficult to manage.”

Bakke, Nichols and DOE officials met in Bellevue yesterday to work out the details of how mitigation for the rail project will be accomplished.