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Cadiz the biggest price gainer on the Nasdaq after announcing major water storage project

Posted by: Maven on June 6, 2009 at 6:39 am

From the Los Angeles Business Journal:

Cadiz Inc. was the biggest price gainer Friday on the Nasdaq after announcing it signed letters of intent with five Southern California water providers to partner on a $200 million underground water storage project. The proposal resurrects a water-banking project that the Metropolitan Water District killed in 2002 after opposition from environmentalists and questions that arose about the finances of the Los Angeles natural resources company.

The project would involve pumping Colorado River water into an aquifer beneath 35,000 acres Cadiz owns near the U.S. Marine Corps base at Twentynine Palms. The water would then be stored and piped to Los Angeles and other Southern California counties.

The prior effort died when environmentalists argued that pumping the aquifer would harm the desert’s delicate ecology. Other critics questioned Cadiz’s ability to carry out the project, given the company’s high debt load. Cadiz is seeking to overcome that opposition by partnering this time with water agencies to share in the costs of producing environmental studies and any measures that need to be taken to lessen environmental damage. The project includes construction of a 44-mile underground pipeline.

Read more from the Los Angeles Business Journal by clicking here. More on Cadiz by clicking here.

June 6, 2009 · Filed Under Groundwater

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