Cadiz signs agreement with Santa Margarita Water District

Cadiz announced that the company signed a definitive agreement with Santa Margarita Water District to deliver water from the Cadiz Water Supply and Storage Project in the Mojave Desert through the company’s Northern Pipeline. SMWD’s board of directors approved the agreement by unanimous vote at the agency’s board meeting on June 5th. The 50-year take or pay agreement with SMWD follows the previously announced term sheet entered into with SMWD in February 2024. SMWD’s decision to contract for delivery of water through Cadiz’s Northern Pipeline provides key revenue streams expected to support infrastructure financing for the pipeline project. Under the agreement Cadiz is expected to deliver 5,000 acre-feet per year to groundwater banks located along the 220-mile pipeline in the High Desert in exchange for water that can be delivered to SMWD by State Water Contractors with local water suppliers. In accordance with the agreement the price per acre-foot of water from Cadiz, inclusive of all capital, operating and maintenance costs, will not exceed $1,650 per AFY.