History - Cadiz, Inc.
Cadiz Inc. was founded in 1983 after acquiring 11,000 acres of land in the Cadiz Valley of eastern San Bernardino County, California. A NASA-funded research project that integrated satellite imagery with geological, geophysical, and geochemical survey methods played a major role in the selection and evaluation of the land. Through NASA research and analysis, the founders of the Company determined that our land was situated over a large, naturally recharging aquifer system able to provide a high-quality, reliable water supply to southern Californians, as well as much-needed underground storage for surplus water.
Cadiz, Water, Agriculture, Sustainable Farming, Cadiz Water Project, Water Resources, Southern California, NASA funded research project
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History

1983

Cadiz Inc. was founded in 1983 after acquiring 11,000 acres of land in the Cadiz Valley of eastern San Bernardino County, California. A NASA-funded research project that integrated satellite imagery with geological, geophysical, and geochemical survey methods played a major role in the selection and evaluation of the land. Through NASA research and analysis, the founders of the Company determined that our land was situated over a large, naturally recharging aquifer system able to provide a high-quality, reliable water supply to southern Californians, as well as much-needed underground storage for surplus water.

 

1984

We installed the first production wells at our Cadiz Valley property to determine the potential of the aquifer system; these wells yielded high-quality groundwater. A year later, we more than doubled the size of the Cadiz Valley property – expanding to 27,000 acres. Today, we own more than 45,000 acres, 35,000 of which are located in the Cadiz Valley.

 

1986-1996

With a vast underground water resource, fertile soil, few indigenous pests and warm weather, the Cadiz Valley has been ideal for agricultural development. In 1986, we successfully planted our first table grape vineyards. In 1989, we added a citrus orchard and annually added seasonal vegetable crops.  In 1993, we received permits from San Bernardino County to plant, irrigate and harvest on up to 9,600 acres of the Cadiz Valley property.  Over this period, we expanded our irrigation capacity and constructed a wellfield and irrigation lines.

 

1997

Cadiz initiated discussions with the Metropolitan Water District of Southern California to develop a water supply and storage project that would store imported surplus Colorado River water at Cadiz and return that water, as well as additional Cadiz groundwater, to Metropolitan when needed. In 2002, the US Department of the Interior approved this MWD storage project and approved the construction of a pipeline from Cadiz to the Colorado River Aqueduct.  In October 2002, the MWD Board declined to proceed with the Project citing uncertainty in availability of surplus supplies as well as potential for environmental impacts due to uncertain surrounding hydrological data for the watershed area.

 

2008-2010

We re-designed the project and invested in detailed scientific analysis to address previous uncertainties and also offer a project that could deliver a sustainable and reliable water supply to Southern California without harm to the environment.   As part of this effort, we changed the route for the project’s water conveyance pipeline to avoid impacts to undisturbed public lands.  In September 2008, we executed a 99-year lease agreement with the Arizona and California Railroad Company (ARZC) to utilize a portion of the railroad’s existing right-of-way for the water conveyance pipeline. The pipeline will be buried alongside the railroad tracks on its disturbed property and connect the project’s wellfield at our Cadiz Valley property with the Colorado River Aqueduct.

 

In 2010, internationally respected engineering firm CH2M HILL, now Jacobs, conducted a comprehensive study measuring the vast scale and recharge rate of the aquifer system at the Project area. This and subsequent studies found that the aquifer system beneath our Cadiz Valley property consists principally of an alluvial, carbonate, and crystalline aquifer; The porous and cavernous nature of this rock contributes significantly to the productivity of the aquifer system. CH2M estimated 17-34 million acre-feet of groundwater in storage in the alluvial aquifer, a volume comparable to Lake Mead. Application of the latest 2008 USGS computer model (INFIL3.0) results in water recharge rate estimates of approximately 32,000 acre-feet per year; Freshly collected field data, including measured evaporation from the Dry lakes, corroborates watershed model results; and shows significant, evaporation at Dry Lake playas at base of watershed.

 

2011-12

Since 2008, we have achieved significant milestones in the development of the Water Project. The Project began a California Environmental Quality Act (CEQA) environmental review and permitting process in February 2011 led by the Santa Margarita Water District (SMWD). The Final Environmental Impact Report (DEIR) was certified by SMWD in July 2012. In October 2012, the County of San Bernardino separately approved the Project’s groundwater management plan and conservation of approximately 50,000 acre-feet of water per year for 50 years. The Project is now in the pre-construction phase.

 

In addition to the Water Project, we are pursuing other sustainable and environmentally-responsible uses of our land, such as habitat preservation. Since our founding, we have been committed to the highest, best and most sustainable use of our properties and continue the pursuit of that goal today and beyond.

 

2011-12

The Cadiz Valley Water Conservation, Recovery and Storage Project began a California Environmental Quality Act (CEQA) environmental review and permitting process in February 2011 led by the Santa Margarita Water District (SMWD). Public hearings and public comments are processed over 18 months. The Final Environmental Impact Report (FEIR) was certified by SMWD in July 2012. In October 2012, the County of San Bernardino separately approved the Project’s groundwater management plan and conservation of approximately 50,000 acre-feet of water per year for 50 years.

 

In 2011, we optioned ownership rights to an idle natural gas pipeline that is 30” and extends northwest from Cadiz for 220 miles reaching California’s Central Valley. Initial technical studies concluded the pipeline could be used to transport water and had capacity to move approximately 20,000 acre-feet per year in either direction.

 

2013 – 2016

SMWD and the County defended the Project’s CEQA and County approvals in California’s Courts against multiple challenges brought by conservation interest groups, the National Parks Conservation Association and the Center for Biological Diversity, and oil and gas corporation Tetra Technologies Inc. In 2014, the Project’s approvals were upheld by Superior Court against all claims in six separate cases. Also in 2014, we purchased the first 96-mile segment of the Northern Pipeline and kept the second 124-mile segment under option.

 

In 2016, the lower court rulings in favor of the Project permits were sustained by a unanimous, three-justice panel of the 4th District California Court of Appeal.  The Project’s permits to conserve 50,000 acre-feet per year for 50 years became fully-vested and not subject to further challenge.

 

2017 – 2019

In October 2017, the BLM Washington Office concluded that the Project’s proposed use of a ARZC railroad right-of-way for its conveyance pipeline was within the scope of the original right-of-way grant and no further federal permitting to construct the pipeline and related facilities within the railroad’s right-of-way would be required prior to construction.

 

Interest group National Parks Conservation Association challenged this evaluation in federal Court in 2018 and in 2019, however, the federal Court Judge remanded the evaluation back to the BLM to provide further detail in the record. The Judge did not disagree with the conclusion of BLM’s evaluation that the Project’s use of the right-of-way was compliant with its scope.

 

2020

In 2020, we installed three new agricultural wells increasing our irrigation capacity to total 25,000 acre-feet per year.

 

In February 2020, USBLM issued an updated evaluation in consideration of the Federal Court’s remand in 2019 providing further detail regarding its authorization of our proposed co-location of a water conveyance pipeline within the ARZC right-of-way.  This new evaluation was not further challenged in Court.

 

In December 2020, US BLM granted to our subsidiary Cadiz Real Estate LLC two right-of-way permits that now enable the transportation of water through our Northern Pipeline over BLM-managed lands. The first right-of-way was issued pursuant to an assignment in October 2020 of a portion of an existing right-of-way held by EPNG and renewed by BLM under the Mineral Leasing Act. The second right-of-way was issued under the Federal Land Policy and Management Act and authorizes the conveyance of water in the pipeline over BLM-managed lands.

 

 

2021

The Project is presently pursuing terms and conditions to convey water to participating agencies within the southern California water transportation system.

 

In addition to the Water Project, we are pursuing other sustainable and environmentally-responsible uses of our land, such as habitat preservation. Since our founding, we have been committed to the highest, best and most sustainable use of our properties and continue the pursuit of that goal today and beyond.