en.Wedoany.com Reported - The U.S. Bureau of Land Management (BLM) has approved a right-of-way grant allowing Cadiz, Inc. to convert the Northern Pipeline in California from natural gas transmission to water conveyance.

Authorized under Title V of the Federal Land Policy and Management Act (FLPMA), the right-of-way permits Cadiz to retrofit and operate the pipeline on BLM-managed land. Susan Kennedy, Chairman and CEO of Cadiz, stated that after years of planning and environmental review, the project is now ready to enter the construction phase.

The Northern Pipeline will transport water from the Mojave Groundwater Bank to the High Desert and Inland Empire communities in San Bernardino County, California. The Mojave Groundwater Bank is one of the largest new water supply projects in the Colorado River Basin and is expected to provide one of the lowest-cost new water sources for the drought-stricken southwestern United States.

Cadiz purchased the existing 220-mile pipeline from El Paso Natural Gas (EPNG) in 2020. This buried steel pipeline previously operated as a natural gas pipeline, with its right-of-way under the Mineral Leasing Act, which was renewed in 2020. Last year, Fenner Gap Mutual Water Company (FGMWC), a mutual water company established by Cadiz in 2010 to manage and operate the Mojave Groundwater Bank, applied for a right-of-way under FLPMA to convert the pipeline's use from natural gas to water, including the construction of pump stations and related facilities. The BLM's latest decision approves the new FLPMA right-of-way, authorizing the conversion of the existing pipeline and extending the right-of-way for 50 years based on the pipeline's expected operational lifespan.

In 2024, Cadiz has entered into commercial water supply agreements with public water agencies and investor-owned utilities to provide long-term dedicated water supplies through the Northern Pipeline. The Mojave Groundwater Bank has obtained fully adjudicated water supply permits, completed environmental studies, and is at an advanced stage of engineering, procurement, and construction contracting. Once operational, the Northern Pipeline will be capable of conveying up to 25,000 acre-feet of new water annually, with the potential for expansion as the Mojave Groundwater Bank facilities are further developed.