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Cities, company settle two of three water lawsuits

| Friday, Jun 13 2008 2:36 PM

Last Updated: Monday, Jun 16 2008 9:27 AM

Bakersfield, Shafter and Oildale Mutual Water Company have settled two of three lawsuits over Shafter’s plans to provide water for development.

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The settlement appears to be a win for Bakersfield, which sought to stop Shafter from using a certain water supply for residences.

Shafter had planned to use water from a wastewater treatment plant for farms, freeing up fresher water for new development. But Bakersfield sued, saying Shafter didn’t have the right to use that water for development — only Bakersfield does.

Under the settlement, Oildale Mutual withdrew the document certifying its water supply, and Shafter promised not to use the same approach for at least six months.

Shafter City Manager John Guinn said there are other ways to come up with water for development, although right now the city doesn’t doesn’t have it.

“I think you have to look at it as progress,” Guinn said. “It’s a lawsuit that’s settled. Taxpayers aren’t paying attorneys. As far as I’m concerned, that’s progress.”

“I think, pardon the cliché, but it’s a win-win for all the parties,” said Bakersfield City Attorney Ginny Gennaro.

In October, developer SunCal Companies pulled out of a project in Shafter, blaming the uncertainty of the water supply. The company also defaulted on a loan payment, and the company’s 515 acres transfered back to Lennar Homes, according to Californian archives.

Two more related lawsuits remain pending.



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