Cadiz Inc (CDZI) SEC Filing 10-K Annual report for the fiscal year ending Tuesday, December 31, 2019

The 2020 Evaluation reaffirmed that the Project's proposed use of the ARZC right-of-way for the Southern Pipeline and related railroad improvements furthers a railroad purpose and is within the scope of the right-of-way, consistent with BLM's conclusion in October 2017.

We believe there are multiple benefits that can be realized by MWD and water users throughout its service area, such as water quality improvements, upon making space reasonably available for the Cadiz water supplies and providing the region the flexibility of relying on the Water Project in both wet and dry years.

i. BLM Approval of Southern Pipeline In October 2017, the BLM provided a letter finding that the Project's proposed use of a portion of the ARZC right-of-way from our Cadiz Valley property to Freda, California to construct and operate the Water Project's water conveyance pipeline and related railroad improvements is within the scope of the original right-of-way grant and not subject to additional permitting.

Effective January 1, 2020, the wheeling statutes now include Water Code Section 1815 which requires water projects in a section of the Mojave Desert where our Cadiz Valley property is located to apply for a review by the California State Lands Commission ("SLC") prior to transporting water in public conveyance facilities.

Cadiz water also has no PFAs, a recently added constituent of concern by California water regulators, improving its attractiveness for the service area.