HARPSWELL – The town’s effort to acquire a 117-acre waterfront property from the U.S. Navy is in jeopardy because of a dispute over how much drinking water can be drawn from a well on the land.

The Navy, which owns the former Harpswell Fuel Depot, is ready to transfer the land to the town for free after cleaning up most of the spilled fuel.

Harpswell officials say they need to draw 3,000 gallons a day from the well to support the people who would use the playing fields, hiking trails and marine-related businesses planned for the property.

But the Maine Department of Environmental Protection won’t allow the transfer to take place unless the town agrees to a cap of 450 gallons.

“Things have ground to a halt,” said David Chipman, chairman of the selectmen. “We maintain that 450 gallons a day is just a trickle. The DEP won’t budge. It’s too bad. We’ve got great hopes and plans for that land.”

The fuel depot overlooks Middle Bay. In addition to being a deep-water port, the site has a beach, boat launch and pier.

Harpswell envisions the site supporting boat builders, marine research firms, fishermen, and aquaculture operations.

The Navy stored jet fuel at the depot from the 1950s to 1992. Despite the government’s cleanup efforts, there are still underground pollutants in the bedrock, a fact that worries state geologists.

Chipman said the town’s consultant says it would be safe to draw 3,000 gallons a day from the well.

But three DEP geologists dispute that conclusion, saying the site’s fractured bedrock makes it impossible to predict whether contaminated water would be drawn into the well that generates potable water.

Unless a compromise can be reached soon, the federal government may auction the fuel depot off to the highest bidder. The Navy had set a deadline of Sept. 30 for transferring the site.