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LUFKIN — An East Texas groundwater conservation district is negotiating a legal path that would pause a plan to pump billions of gallons of water out of the region.

The Neches & Trinity Valleys Groundwater Conservation District is allowing its lawyers to settle a lawsuit with a poultry farm that sued the district, which gave preliminary approval to a Dallas-area company to install 40 high-capacity water wells above the Carrizo Wilcox Aquifer.

The nascent settlement, which became public Monday, is the latest twist in a monthslong debate over the project, which drew the ire of community members, local businesses and lawmakers. It resulted in several community meetings and an 11-hour legislative committee hearing.

The lawsuit was filed by Wayne-Sanderson Farms, a poultry business in East Texas. The lawsuit argued the project would hurt its business.

As part of the settlement, which must still be approved by the district and the court, would void the district’s original decision that the permits were considered “administratively complete,” a legal term meaning they were filled out properly. This means Conservation Equity Management and its subsidiaries must reapply for permits.

Conservation Equity Management declined to comment on the board’s decision.

The second term of the settlement prohibits the district from approving other permits until hydrologists have time to study the aquifer. The second agreement is still being negotiated, said Holli Pryor-Baze, an attorney representing the groundwater conservation district.

The idea to study the aquifer grew in popularity during the second special legislative session under a bill authored by state Rep. Cody Harris, a Palestine Republican. The bill sought to pause any more work on the high-capacity wells until state-mandated studies were completed. That bill died after the Texas House rejected changes made by the Senate.

The Texas Water Development Board, however, independently decided to study the aquifer and the Trinity River Authority has also begun searching for hydrologists, said Pryor-Baze. The groundwater conservation district board will wait to approve the high-capacity well permits until after those studies are completed, said Sam Hurley, the board’s vice president.

The study should shed light on what kind of pressure these high-capacity wells will put on the Carrizo Wilcox Aquifer and the Queen City Aquifer, which is shallower, Hurley said.

“We need to look at the science. We want to make sure that we get this right,” Hurley said.