Skip to comments.Cadiz water deal was all wet the last time (Arnie jumps on board with the scam)
Posted on 06/11/2009 10:48:32 AM PDT by calcowgirl
People who say that nothing's harder to get rid of than a bad penny must never have met Keith Brackpool.
The British-born promoter, who has spent the last dozen years pushing a scheme to pump water to Southern California from beneath 35,000 acres his Cadiz Inc. owns in the Mojave Desert, just won't go away.
... In the past his posse has included ex-Gov. Gray Davis and Los Angeles Mayor Antonio Villaraigosa. Now he has added Gov. Arnold Schwarzenegger, who last week publicly endorsed the scheme as "a path-breaking, new, sustainable groundwater conservation and storage project."
The endorsement was embedded in an announcement Cadiz issued Friday, saying it executed letters of intent with four Southern California municipal water agencies to jointly investigate reviving the water scheme, which was rejected by the Metropolitan Water District seven years ago.
One might feel better about such maneuvering if Cadiz Inc. were a strong company, but it hasn't had a profitable year since at least 1999. Last years loss was nearly $16 million. The Los Angeles-based company has been kept on life support by its lenders ... At the end of March the company disclosed that its working capital was down to $4.3 million, enough to last another year.
... As for Brackpool, 51, Cadiz's chairman and chief executive, The Times has pointed out that in 1983 he pleaded guilty in London to criminal charges that included dealing in securities without a license.
Cadiz has shown a sure feel for publicity under Brackpool, who according to a company disclosure in April owned or controlled more than 132,000 shares at that time.
The release featuring Schwarzenegger's name helped send Cadiz shares rocketing by more than 45% in Nasdaq trading Friday. It closed Wednesday at $12.46, up 56 cents.
(Excerpt) Read more at latimes.com ...
Latter of which are nearly always nameless. There might be any number of reasons. Some groups may want to stop development. Others may want to force consumption of natural gas for desalinization sweetened with carbon taxes...
Without a money trail, there's just no way to know what the deal is.
LOS ANGELES--(BUSINESS WIRE)--Today Cadiz Inc. (NASDAQ:CDZI) announced that it has executed Letters of Intent (LOI) with a broad collection of Southern California water providers to develop a cost-sharing agreement, finalize terms of pricing, design and capital allocation and work towards implementation of its water conservation and storage project. These providers together serve more than 3 million water customers across the region.
Signing the LOIs are four public municipal water agencies and Golden State Water Company, Californias second largest publicly-traded water utility. These providers serve customers in Californias San Bernardino, Riverside, Los Angeles, Orange and Ventura Counties. The Company expects to add additional participants for other aspects of the project.
Specifically, Cadiz and the interested water providers have agreed to undertake a mutual project evaluation and seek an agreement identifying and apportioning expected environmental review costs, including the preparation and submittal of a Project description for review under the California Environmental Quality Act (CEQA). The environmental review process is expected to begin shortly following the submittal of the Project description.
Under the LOIs, water purchase options will tentatively be made available to participants on a 50-year term based on the cost of comparable alternative sources of supply. Participants will be subject to fees for administration, management and maintenance of storage, puts and takes, and power costs. Discounts will be provided to participants meeting agreed-upon environmental stewardship objectives.
In a statement to the participating water providers, Governor Arnold Schwarzenegger applauded their decisions to join the project:
I applaud the leadership of these Southern California water agencies who are helping address the states water supply challenges by exploring a path-breaking, new, sustainable groundwater conservation and storage project. This innovative project, utilizing sophisticated water conservation practices, will sustainably recover more than one million acre feet of water that would otherwise be lost to evaporation and make it available to help provide a reliable source of water for Southern California. All Californians who care about our states economic future and job creation should follow the lead of these water suppliers and examine smart and sustainable ways to conserve every last drop of water.
With the State of California suffering the effects of a severe long-term water shortage, Governor Schwarzenegger declared a state of emergency in February, and deliveries to local agencies from the State Water Project have been cut to 40 percent of capacity. On June 1, the Los Angeles Department of Water and Power imposed mandatory rationing, cutting water allocations to its customers by 15 percent.
Our state is facing a water crisis today and tomorrow unless we expand our water supply for a growing California, said Congressman Jim Costa (D-CA). We must use all the water tools in our water toolbox. In Southern California especially, all viable water projects that relieve pressure on the Delta and increase supply and storage opportunities are critical to provide water for growing cities, to maintain the viability of our farms, and to address long-term environmental concerns. The Cadiz project falls in this category.
We are excited to be a part of this critical water supply and conservation effort, said Denise Kruger, Senior Vice President at Golden State Water Company. This is an environmentally friendly proposal that will create jobs and serve thousands of families currently facing shortages and cutbacks.
The $200 million project features the construction of a 44-mile underground conveyance pipeline and will create an estimated 1,200 construction jobs. Cadiz has pledged to hire Inland Empire companies for materials and services, wherever possible, and to reserve up to ten percent of conserved water and storage for beneficial uses in San Bernardino County.
The Cadiz Project will bring an immediate infusion of economic stimulus and new jobs to the region, said San Bernardino County Supervisor Brad Mitzelfelt. Over the long haul, it will help us meet our needs by making responsible and sustainable use of local resources.
We see the project as a clear win-win for the local economy, offering good green jobs when we need them most, said Mike Quevedo, International Vice-President at Laborers International Union of America. We strongly support the project and look forward to its consideration and approval.
By offering new jobs and service opportunities, the Cadiz Project will help get the local economy back on track and put our people to work, stated Bob Ereth, Vice President at Layne Christensen Company, an industry leader in water related construction services. We look forward to participating in the project as it moves forward.
One of the largest water conservation efforts of its kind, the Cadiz Project is designed to conserve and utilize billions of gallons of renewable native groundwater currently being lost annually to evaporation and to make available vast quantities of groundwater storage. The Company owns approximately 35,000 acres of land in the Cadiz and Fenner valleys of San Bernardino County, California. This landholding is underlain by an extensive aquifer system with storage capacity and natural recharge. By making use of groundwater that currently evaporates from the aquifer system at the nearby dry lakes, the project will yield a sustainable annual water supply for its subscribers. The aquifer system also offers approximately one million acre feet of storage capacity that can be used to conserve or bank imported water, virtually eliminating the high rates of evaporative loss suffered by local surface reservoirs.
The interest in our project reflects an overwhelming public interest in developing long-term sustainable solutions to the water crisis, said Cadiz General Counsel Scott Slater. We are moving actively to bring our water supply and conservation project on line in an environmentally responsible manner.
Cadiz has recently pledged to develop the water banking aspect of the project with the core goal of achieving environmental betterment. Last month, the Company signed a wide-ranging Green Compact with the Natural Heritage Institute (NHI), a leading global environmental organization, in which it committed to lead a series of model environmental initiatives, including the permanent preservation of surface lands, a set-aside for clean energy development, and stringent plans for groundwater management and habitat conservation. In addition, the Company has pledged to use its water bank to promote the restoration of endangered aquatic ecosystems.
Scott Slater added, This conservation project can actually work to unlock the storage potential of the aquifer system for environmental benefit and is consistent with the Companys pledge to manage the entire property in a holistic manner. We are optimistic that the right combination of conservation and storage partners will assist us in achieving our goals of water supply augmentation and environmental betterment.
The Green Compact is a potential model for how the private sector and the environmental community can work together, said NHI President Greg Thomas. This agreement will potentially yield a variety of significant environmental benefits, from wildland preservation to clean energy to the restoration of threatened water systems. Our mutual goal is not just to avoid environmental harm but to actually provide a net environmental improvement.
Founded in 1983, Cadiz is a publicly held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of organic farming, solar energy and water supply projects. Further information can be obtained by visiting www.cadizinc.com.
Courtney Degener, Investor Relations Manager
Cadiz Signs Green Compact with Natural Heritage Institute
May 14, 2009 09:00 AM Eastern Daylight Time
Broad-based Agreement on Land Preservation, Clean Energy, and Restoration of Aquatic Ecosystems
LOS ANGELES--(BUSINESS WIRE)--Today Cadiz Inc. (NASDAQ:CDZI) and the Natural Heritage Institute (NHI) announced a wide-ranging Green Compact designed to ensure the sustainable management of the largest privately owned portion of the Mojave Desert. Founded in 1989, NHI is a leading global environmental organization dedicated to restoring and protecting water-dependent ecosystems.
Under a Memorandum of Understanding (MOU) between Cadiz and NHI, the company will pursue a series of model environmental initiatives, including the permanent preservation of its lands, dedication of a portion for solar power development, stringent plans for groundwater management and habitat conservation, and the creation of a water bank that will be used in part to restore one or more endangered aquatic ecosystems in California and the Colorado River basin.
This agreement reflects our clear vision for Cadizs future as a green company, said Cadiz General Counsel Scott Slater. We are in the business of sustainable resource management, and we believe our growth must occur in partnership with the environment.
We see the Green Compact as a potential model for how the private sector and the environmental community can work together to achieve environmental betterment, said NHI President Greg Thomas. This agreement will potentially yield a variety of significant environmental benefits, from wild land preservation to clean energy to the restoration of threatened water systems. Our mutual goal is not just to avoid environmental harm but to actually provide a net environmental improvement.
To ensure that the Compacts Stewardship Principles are followed, the MOU assigns NHI the role of auditing Cadizs performance. NHI will also have a consultative role in developing a set of land-management standards applicable to the design, planning, construction, and operation of Cadiz projects. Provisions include:
Can someone explain how Cadiz owns the water rights to any water found flowing under that property?
LOL. It's a "public interest" law firm.
I found the dirty fingerprints of the NRDC with these guys here, with over 1,200 Google hits on "National Heritage Institute" +NRDC, most of it involving the Delta. They were definitely in on the lawsuits to list the Delta Smelt and Split-tail. My guess is that they handle special applications and "lawsuit surge."
If you think this is a good idea, I have a real estate deal in Elk Grove for you.
I think they acquired them when they purchased the land from bankrupt Sun World.
Thanks for the intel. I hadn’t yet googled it. No suprise.
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