According to a March 2013 report from the Southern California Salinity Coalition, an association of some of Southern California’s largest water agencies dedicated to salinity management , "increased salinity is one of the most under-recognized water quality threats in the Southwest.” USBR has also estimated that high salinity causes more than $350 million a year in damage to the lower basin of the Colorado River.Stephen Hatchett, Senior Economist at CH2M HILL, conducted the analysis using the model developed by USBR and Metropolitan. He stated, “Based on the information we have on the quantity and quality of water from the Cadiz Project, the model indicates that the Project would provide significant salinity benefits.” To provide its salinity benefits assessment of the Cadiz water supply, CH2M HILL applied the Lower Colorado River Basin Water Quality Model (“Model”) developed to compare salinity-related damages for regions of Southern California receiving water from the CRA. The Model has been used in various salinity damages assessments since its introduction, including most recently in the state’s August 2013 Bay Delta Conservation Plan Draft Statewide Economic Impact Report. In its application of the Model, CH2M HILL assumed average CRA deliveries of 957,000 acre-feet/year and TDS in the CRA of 687 mg/L, the long-term annual average values being used in other planning studies. CH2M HILL further assumed that 50,000 acre-feet of water at 300 mg/L TDS would be introduced into the CRA every year based upon the Cadiz Project’s approved July 2012 Environmental Impact Report. Additional salinity benefits will be achieved if, after subsequent environmental review, an imported storage phase of the Project is also implemented. The Model demonstrated that importing supplemental water acquired from Northern California sources via an existing 96 mile idle natural gas pipeline from Barstow to Cadiz may result in an additional $5.8 million annual salinity benefit when the banked water is delivered to the CRA. To add this value, it was assumed 30,000 acre-feet of water from California’s State Water Project at an average TDS of 240 mg/L would be banked at Cadiz.
Any introduction of Cadiz water supplies into the CRA in Phase 1 or Phase 2 will be subject to the review and approval of Metropolitan. To view the CH2M HILL Salinity study, visit: www.cadizinc.com.About Cadiz Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources in Southern California. The Company is engaged in a combination of organic farming and water supply and storage projects at its properties and abides by a wide-ranging “Green Compact” focused on environmental conservation and sustainable practices to manage its land, water and agricultural resources. For more information about Cadiz, visit http://www.cadizinc.com/. FORWARD LOOKING STATEMENT: This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company and the financing activities of the Company. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company’s forward-looking statements include the Company’s ability to maximize value for Cadiz land and water resources, the Company’s ability to obtain new financing as needed, the receipt of additional permits for the water project and other factors and considerations detailed in the Company’s Securities and Exchange Commission filings.