Cadiz Inc. (NASDAQ:CDZI) Files An 8-K Other Events
Item 8.01 Other Events
Cadiz Inc. (NASDAQ:CDZI) Files An 8-K Other Events
Today, Cadiz Inc. (the “Company”) reported that the U.S. Bureau of Land Management (“BLM”) has granted to our subsidiary, Cadiz Real Estate LLC, two right-of-way permits that now enable the Company to transport water through an existing 30” buried pipeline asset that crosses over both the State Water Project and the Mojave River Pipeline on its 220-mile route from Cadiz, California to Wheeler Ridge, California (the “Northern Pipeline”). The first right-of-way was issued to an assignment of a portion of an existing right-of-way held by El Paso Natural Gas (“EPNG”) and renewed by BLM under the Mineral Leasing Act in October and enables the continued transportation of natural gas. The second right-of-way was issued under the Federal Land Policy and Management Act and authorizes the conveyance of water over BLM-managed lands.
The Company acquired the Northern Pipeline from EPNG to agreements originally executed in 2011 with the intention of repurposing idle oil and gas pipeline assets that could diversify water conveyance for the benefit of communities in underserved areas of Kern, Los Angeles and San Bernardino Counties in California. The Northern Pipeline provides California water purveyors with a unique asset and corresponding opportunity to connect available supplies with rural areas of the State that need it most.
The Company completed the acquisition of a 96-mile segment of the Northern Pipeline from Cadiz to Barstow, California in 2014. The acquisition of the remaining 124-mile segment of the Northern Pipeline from Barstow to Wheeler Ridge, California was subject to certain conditions precedent including the BLM right-of-way grants noted above. With these BLM grants, the conditions precedent have been satisfied to finalize the Company’s acquisition of the Northern Pipeline. As recently reported, the Company’s final payment of $19 million to EPNG is required to be made no later than June 30, 2021 in accordance with the Second Amendment to the Purchase and Sale Agreement.
Any water conveyed through the Northern Pipeline will be in accordance with all applicable local, state and federal law.
About Cadiz Inc. (NASDAQ:CDZI)
Cadiz Inc. is a land and water resource development company with approximately 45,000 acres of land in three areas of eastern San Bernardino County, California. The Company’s primary business is to acquire and develop land with water resources for various uses, including groundwater supply, groundwater storage and agriculture. It is focused on the development of the Cadiz Valley Water Conservation, Recovery and Storage Project, which captures and conserves millions of acre-feet of native groundwater being lost to evaporation from the aquifer system beneath its approximately 34,000-acre property in the Cadiz and Fenner valleys of eastern San Bernardino County and deliver it to water providers throughout Southern California. In addition to the Cadiz/Fenner Valley property, it also owns approximately 11,000 additional acres in the eastern Mojave Desert portion of San Bernardino County, California at two separate properties. It owns over 2,000 acres near Danby Dry Lake in Ward Valley.