Cadiz Inc Issues Statement of Federal Court Ruling in Cases Challenging Conversion of Former Oil & Gas Pipeline to Transport Water

(LOS ANGELES, September 14, 2022) — Cadiz Inc. (NASDAQ: CDZI/CDZIP) (“Cadiz”, the “Company”) announced today that on September 13, 2022, the U.S. District Court for the Central District of California affirmed its tentative ruling in two cases filed against the US Department of the Interior (“Interior”) and US Bureau of Land Management (“BLM”) by the Center for Biological Diversity and National Parks Conservation Association (“plaintiffs”) challenging the adequacy of the federal review of the two rights-of-ways issued to the Company in 2020 authorizing the conversion of the natural gas pipeline acquired from El Paso Natural Gas (“Northern Pipeline”) to transport water over BLM-managed lands (approx. 58 miles of the 220 mile pipeline).

In its ruling, the Court granted Interior’s motion for voluntary remand, sending the permits back to the BLM while the agency considers the scope of environmental review required to approve conversion of the pipeline to transport water over BLM lands. There is a status conference with the Court set for September 26, 2022.

The Executive Chair of the Company’s Board of Directors, Susan Kennedy, made the following statement regarding the ruling:

Yesterday’s ruling will have no impact on completion of the Cadiz Water Conservation and Storage Project and we do not expect additional environmental review by the BLM to cause significant delay. Cadiz’ ownership of the pipeline is unaffected by the Court’s ruling, and any additional environmental review required by the BLM to convert the pipeline to transport water will be done concurrently with the existing construction schedule.

Full environmental review of the Cadiz Water Conservation and Storage Project was completed in 2012 with a final ruling issued by the California Court of Appeal in 2016.  California Courts have determined the Groundwater Management, Monitoring and Mitigation Plan adopted by San Bernardino County and reviewed under California Environmental Quality Act ensures that the Project will have no adverse environmental impacts. The Company has no concerns with additional environmental review and believes review can be conducted without impeding the construction timeline.

While permits for conversion of the Northern Pipeline are reviewed by federal agencies, the Company will continue with the conversion of the pipeline and development of the Project, including the construction of three new groundwater wells beginning in the 4th quarter of 2022.  Construction of the three wells will start in early October and proceed through 1st quarter of 2023. With three new wells online, the Cadiz Ranch will have 10 wells in operation with total annual capacity of 25,000 acre-feet of water per year.

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