Jan 11, 2024 By Mike Jones 3 min read

Negotiations over the proposed receivership to transfer East Dunkard Water Authority’s operations over to Pennsylvania American Water Co. made progress last week, although an agreement still has not been finalized.

The mediation session on Jan. 4 between East Dunkard solicitor Lane Turturice, state Department of Environmental Protection officials and representatives from Pennsylvania American Water was designed to iron out details of the proposed receivership that, if agreed upon, could be approved by all parties as early as next month.

While all sides declined to comment on specific details about the mediation session, it apparently went well enough that the state Commonwealth Court ordered a stay the following day on all future proceedings due to the matter being “potentially settled,” according to the online court docket.

“We’re still working on some things,” Turturice said. “Everyone is still working together trying to resolve it. The court has issued an order to stay everything while we do that.”

He said EDWA’s board would need to approve any settlement at a public meeting, which could happen in February. Turturice added that DEP and PAWC would also have to approve the terms of the settlement in order to move forward with the receivership.

“Everybody needs to get approval from their management and/or government bodies,” Turturice said. “The authority has to vote on it at a public meeting. Any possible settlement or resolution would have to be approved at a public meeting.”

He declined to discuss how the mediation session went, citing the Commonwealth Court’s requirement that details of the negotiations not be made public. DEP spokeswoman Lauren Camarda also declined to comment on the situation.

“DEP can confirm that the case has been stayed,” Camarda said in a written statement. “Commonwealth Court’s rules prohibit the parties from divulging communications made in mediation, so DEP is unable to comment further at this time.”

PAWC spokesman Gary Lobaugh confirmed that the water company also participated in the mediation session, but did not say what, if any, issues remain before the receivership can move forward.

“The company appreciates the Court’s involvement, and all parties are working to resolve the outstanding issues,” Lobaugh said.

Turturice requested mediation last month as Commonwealth Court got closer to making a decision on the receivership and other issues stemming from EDWA’s alleged failure to follow certain DEP administrative orders.

The DEP filed an emergency petition Nov. 1 asking the appellate court to immediately hand over all of EDWA’s operations to PAWC after the beleaguered water authority’s treatment plant stopped functioning in late October due to turbidity issues. The shutdown caused service disruptions for several days, leaving 4,200 residents in southeastern Greene County without water for lengthy periods of time.

The DEP said at the time that East Dunkard had not had a “certified operator” to make “legally authorized” decisions for the water system since Sept. 15. In addition, state environmental regulators said the receivership was needed due to the “serious public health and safety threat” posed to residents who rely on the authority for water.

PAWC was selected as the emergency receiver since it had agreed in June to purchase EDWA’s assets for $5 million with the expectation of eventually providing water service to the authority’s customers. The emergency receivership would not alter the acquisition process for PAWC, which is expected to be finalized later this year or early next year.