Cadiz Inc. Issues Statement on New Lawsuits from Opponents of Water Access Targeting Company’s Repurposing of Idle Oil & Gas Pipeline

Rhea-AI Summary

Cadiz Inc. (NASDAQ: CDZI) announced on March 23, 2021, that two lawsuits have been filed against the U.S. Bureau of Land Management’s permit grants for the company’s Cadiz Water Project. The lawsuits, from environmental groups, aim to obstruct the use of an existing 217-mile pipeline for water conveyance in California’s underserved areas. Cadiz asserts its commitment to augment California's water supply amid ongoing droughts, highlighting past legal victories against similar challenges. The company believes these recent lawsuits lack merit and will continue working to repurpose the pipeline for water access.

Positive

• Cadiz has a history of prevailing in legal challenges, winning six cases in the past against similar lawsuits.
• The existing pipeline has potential to significantly benefit underserved communities in California by providing access to clean water.

Negative

• Ongoing lawsuits may delay the implementation of the Cadiz Water Project, impacting water supply augmentation efforts.
• Continued opposition from environmental groups could hinder future permit acquisitions and project developments.

Lawsuits by Growth Opponents Seek to Undercut the Needs of Communities in Underserved Area of California and Deny their Use of an Idle, Existing Pipeline to Convey Water for the Public Benefit

LOS ANGELES, March 23, 2021 (GLOBE NEWSWIRE) -- Cadiz Inc. (“the Company”, NASDAQ:CDZI), a California business dedicated to sustainable water and agricultural projects, reported that two lawsuits were filed today in federal court by longtime litigants of its Cadiz Water Project, including the Center for Biological Diversity, Sierra Club and National Parks Conservation Association, challenging the US Bureau of Land Management’s recent assignment and grant of right-of-way permits to the Company to convey water, oil or natural gas over BLM-managed lands in an existing idle 217-mile pipeline acquired by the Company from El Paso Natural Gas (“EPNG”). Under agreements with EPNG first entered in 2011, Cadiz has sought to acquire the idle pipeline for the purpose of augmenting east-west water conveyance opportunities along this underserved, growing area of California. Cadiz Inc. is not a named party in the lawsuits.

The Company issued the following statement:

“While we will not comment on the pending litigation to which we are not a named party, we are deeply saddened but not surprised by the latest attempts by opponents of new water supply to delay and obstruct federal permits that could augment California’s water supply infrastructure, especially as the State is staring down another drought and continues to have more than 1 million people without reliable access to clean water.

The parties that filed the lawsuits have repeatedly filed legal challenges to permits granted for Cadiz’s water projects and Cadiz has prevailed in each of the six cases, at trial and on appeal. They also routinely oppose virtually every water supply and infrastructure project in California. These opponents callously disregard the needs of communities benefitted by improved access to clean, reliable water supplies in their relentless efforts to deny economic opportunity, fair housing, and affordable water to all Californians. Rather than openly oppose affordable housing, they hide behind pretextual environmental claims.

In this instance, Cadiz has been working for five years to ready an idle, already constructed oil and gas pipeline to use for the better environmental purpose of transporting needed water between disadvantaged and underserved communities in Inland California. A need acknowledged by all. Repurposed for water transportation, the idle oil and gas pipeline that is already in the ground has the potential to benefit tens of thousands of people. Any specific activity to convey water in the line would be subject to all applicable state and federal laws.

Members of the organizations funding these lawsuits and spreading the misinformation about the pipeline’s use should be ashamed of the frivolous spending of their dues to fund attacks on water access in California.

Cadiz is confident that the two lawsuits that were filed today challenging BLM’s decisions are without merit and will continue its efforts whole-heartedly to make the existing pipeline available to communities in need."  

About Cadiz Inc.

Founded in 1983, Cadiz Inc. (NASDAQ: CDZI) is a California business dedicated to sustainable water and agricultural projects. We own 70 square miles of property with significant water resources in Southern California and are the largest agricultural operation in San Bernardino, California, where we have sustainably farmed since the 1980s.  We are also partnering with public water agencies to implement the Cadiz Water Project, which was named a Top 10 Infrastructure Project that over two phases will create a new water supply for approximately 400,000 people and make available up to 1 million acre-feet of new groundwater storage capacity for the region. Guided by a holistic land management plan, we are dedicated to pursuing sustainable projects and practicing responsible stewardship of our land, water and agricultural resources. For more information, please visit www.cadizinc.com.

Contact:
Courtney Degener
Cadiz Inc.
213-271-1600
cdegener@cadizinc.com

FORWARD LOOKING STATEMENT: This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company and the financing activities of the Company.  Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Factors that could cause actual results or events to differ materially from those reflected in the Company’s forward-looking statements include the Company’s ability to maximize value for Cadiz land and water resources, the Company’s ability to obtain new financing as needed, the receipt of additional permits for the water project and other factors and considerations detailed in the Company’s Securities and Exchange Commission filings.

FAQ

What recent lawsuits have been filed against Cadiz Inc. regarding the Cadiz Water Project?

Two lawsuits were filed by environmental groups challenging the U.S. Bureau of Land Management’s permits for the Cadiz Water Project on March 23, 2021.

How might the lawsuits affect Cadiz Inc.'s operations?

The lawsuits could delay Cadiz Inc.'s ability to utilize an existing pipeline for water conveyance, impacting water supply initiatives.

What is the significance of the existing pipeline for Cadiz Inc.?

The existing 217-mile pipeline, if repurposed, can provide access to clean water for underserved communities in California.

What has been Cadiz Inc.'s response to the lawsuits?

Cadiz Inc. stated that it is not named in the lawsuits but is confident the challenges lack merit and will continue its efforts for the water project.