The Groundwater Authority reported that it has reached a settlement with Searls Valley Minerals, counsel Keith Lemieux told the board in a closed-session report. The cases between the parties were dismissed with prejudice, and Searls Valley has agreed to negotiate a contract to receive reclaimed water from the city’s treatment plant.

Under the terms described by Lemieux, Searls Valley agreed to take recycled water in an amount that “could be as much as 2,000 acre feet,” a change the Authority said would reduce the amount of potable water the company would otherwise pump from the basin. Lemieux said the settlement eliminated the previously assessed replenishment fee for Searls Valley “both in the past and going forward.”

Lemieux said he would not take questions on the settlement at the meeting because many details remain protected by attorney-client privilege but noted that the Brown Act requires reporting certain closed-session outcomes and that the board chose to announce the result proactively.

The counsel’s public description did not include a complete contract text or the specific timing for the recycled-water deliveries; Lemieux said the parties will negotiate an agreement between Searls Valley and the city to implement the water deliveries. The board did not take a formal vote related to the settlement at the public meeting.

The Authority’s announcement follows press coverage and public interest about the litigation and pipeline project; staff said additional details are subject to confidentiality and future filings. The board did not open the floor for questions after the report, citing privilege restrictions. The next procedural step will be negotiations between Searls Valley and city officials to produce a contract for recycled-water deliveries.