Water company structure, lawsuit outlined in paper

A story in Tuesday's Austin American- Statesman outlined how Cross County Water Supply, a non-profit, seeks to borrow up to $40 million in tax-exempt bonds to build a 52-mile pipeline from neighboring Burleson County to the Manor area.

The story stated the pipeline project is part of a lucrative race to serve the developing area around Texas 130 toll road. Non-profit Cross County WSC has as a customer Blue Water Systems, run by water dealer Ross Cummings. Blue Water has leased 71,000 acre-feet in Milam and Burleson counties. Cummings is also a director for Cross County WSC.

Cross County WSC and Blue Water are involved in a lawsuit with Burleson County couple Terry and Linda Ausley over an easement for the water pipeline. The Ausleys countersued, claiming Cummings sought non-profit status to "fraudulently provide a mechanism for obtaining easements below market rate via threat of condemnation...."


Parties listed in the suit and counter-suit, filed in Texas Western Federal District Court, were Ausley as defendant and plaintiffs Ross Cummings, Patrick Reilly, Spitzer & Associates Inc., Omar Nassar, Kit Worley, Wayne Brinkley, Debra Murphy, Blue Water Systems. Presiding Judge is Sam Sparks.

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