More Lawsuits Against
Cadiz Water Project
Expected This Week

August 27, 2012

      Following the Santa Margarita Water District's certification July 31, 2012 of the Final Environmental Impact Report (SCH# 2011031002) of the Cadiz Valley Water Conservation, Recovery, And Storage Project, this week will mark the end of the one month statutory period that adversarial litigation may be filed.

      A minimum of at least two legal filings opposing the project are expected by the Newberry Springs Community Alliance to be filed by this coming Friday, August 31.

      In a press release dated August 20, 2012 by Cadiz, Inc., the proposed pumper and initial seller of the water, Scott Slater, President and General Counsel acknowledged that "It is standard for large infrastructure projects in California to face legal challenges" and that "...the Company does not believe that litigation will delay the next steps or alter plans for the construction of the Project."

      As two lawsuits have already been served against the project by Tetra Technologies and the upcoming expected filings by environmental groups are all targeting the demise of the project, based upon numerous grounds including procedural failures, the litigation could delay construction, if not stop it permanently.

      Media reports last July revealing that the Cadiz groundwater contains high levels of hexavalent chromium, a toxic heavy metal, have further dampened the public's desirability for the Cadiz water.

      Continued positive press releases are expected from Cadiz, Inc. which is currently scrambling to acquire investors for the project.  Under agreements with its supporters, such as the County of San Bernardino, Cadiz, Inc. is responsible for all legal fees and costs expended in defense of the water project.

      Cadiz, Inc. has not had a profitable year in the last couple of decades and is reported to have a major payment due next year.  The Santa Margarita Water District has been in the red for the last two years.