Cadiz Inc. Issues Statement in Response to News that California Water Districts Will Receive 0% of Supplies Contracted from the State

LOS ANGELES, Dec. 3, 2021 /PRNewswire/ — Today, Cadiz Inc. (NASDAQ: CDZI) (“Cadiz”, the “Company”) CEO Scott Slater released the following statement in response to the California Department of Water Resources’ announcement that it will allocate zero water to its 29 contract water districts next year.

“The State water outlook turned gloomier this week; if that’s possible.  Following the already significant curtailments of 2021, the California Department of Water Resources confirmed Wednesday that the State will not be honoring contracts for the delivery of water to 25 million people and 750,000 acres of California farmland and is forecasting a zero allocation of water for the first time in history. Instead of meeting contractual allocations, DWR will apportion water among contract holders based upon its assessment of essential needs and will place DWR in the unenviable position of picking winners and losers.

“This historic drought in California and throughout the Southwest continues to take a devastating toll on the State’s existing system, and on the tens of millions of families who continue to see mandatory cutbacks with no indication that conditions will improve. Conservation efforts are critical to addressing this crisis, but more action is needed.

“As the State of California continues to address supply inequalities and infrastructure challenges that most significantly impact its disadvantaged communities, Cadiz is deeply committed to enhancing California’s water transportation network to improve water access for all.

“An immediate opportunity is manifest by the Cadiz Northern Pipeline, which spans 220 miles and crosses important state infrastructure.  It can help play a significant role in alleviating this crisis by enabling the conveyance of water to impacted communities, particularly in rural California, to help bring water from where it is, to where it is needed. Moreover, it could improve access to groundwater storage – a key tool to manage scarce resources.

“The Company also continues to offer potential beneficial water supply for 200,000 people through conservation of groundwater lost to salinity and evaporation, which is CEQA approved, regulated by local authorities, and continues to wind its way through the regulatory process.

“Our message is simple: Californians need water access. Cadiz can help. Let’s work together to get water to the millions of people who desperately need it.”

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