NATCHEZ — A settlement could be in the works to end a longstanding disagreement between the Adams County Water Association and Natchez Water Works.

In 2010, Adams County Water filed a lawsuit against Natchez Water Works claiming the city-based water company’s supposed plans to provide non-drinking water, or non-potable water, beyond the city limits infringed on ACWA’s certified territory.

The U.S. government joined the lawsuit in October.

“The biggest issue we have is that we feel very threatened they think they can go countywide to provide non-potable water service,” Adams County Water Association Director Ken Herring said.

Non-potable water has a variety of agricultural and industrial uses. It can be used in cooling towers at industrial plants.

The two entities had a settlement conference last week, but a settlement has not yet been reached, Herring said. The case is before the U.S. Southern District Court — Western Division of Mississippi.

“We’re more than willing to sit down, but until they decide that they can’t go countywide through our certificated area with non-potable water, (there will be no settlement),” Herring said.

Local attorney Walter Brown, who is representing Natchez Water Works, said it is the city’s position that no issue should exist before the court because Natchez Water Works is not attempting to provide non-potable water service as ACWA alleges.

The issue, Brown said, arose after Rentech Inc. came to town, and Natchez Water Works gave the company a quote on the cost of non-potable water, because Rentech was originally looking at locating on the former Belwood Country Club property. That property, Brown said, is in Natchez Water Works’ allowed service area. When Rentech — a coal-to-liquid fuel company — decided to move to the former International Paper Company site, Brown said, that complicated things because that area is not in Natchez Water Works’ service area.

Because the Rentech deal dissolved, Brown said, no issue exists before the court any longer.

Herring argues that if the court rules in favor of Natchez Water Works, it could mean water associations around the country could be challenged for the similar issues.

“There could be countrywide implications, if we were to get an adverse ruling, by setting precedence (in this type of case),” he said.

The lawsuit, also alleges that Natchez Water Works had previously expanded and was planning to continue expanding its services into areas in which ACWA had been granted an exclusive franchise, including the Homewood subdivision and the Alcorn State University and Copiah-Lincoln Community College campuses in Natchez.

In its response, Natchez Water Works claimed that their service to the Homewood area had been granted a special exemption by the Mississippi Public Service Commission in 1966, and that Natchez Water Works provided service to the Co-Lin campus because the ACWA “could not, did not and would not provide service or make available the provision of water service in that area in 1980 nor for 30 years thereafter.”

In a letter to the court filed Friday, ACWA asserts that it is the association’s position that the non-potable water issue must be settled before addressing any other issues, Herring said.

Another problem, Brown said, is that the city does not want the area’s hands tied if the need of non-potable water to an industrial prospect arises.

Because ACWA does not have a wastewater treatment facility like Natchez Water Works has, it does not have immediate access to sewer effluent, Brown said. Natchez Water Works discharges approximately two million gallons of treated sewer effluent in the Mississippi River daily.

That sewer effluent could supposedly be used at an industrial plant.

The city, Brown said, does not want an industrial prospect to go away because of a non-potable water issue.

Both Brown and Herring said they hope a resolution to the lawsuit means that ACWA and Natchez Water Works can work together in the future.