Boston, MA 08/14/2014 (wallstreetpr) – Cadiz Inc (NASDAQ:CDZI)., a land and water resources provider involves in various projects to acquire lands and develop water resources such as conservation and storage facility, and transport water through pipeline.
In 2008, the Company signed a long-term lease agreement (99-year) with the Arizona & California Railroad Company (ARZC) for the project “the Cadiz Valley Water Conservation, Recovery and Storage” as per the 1875 Act.
The primary objective of the project is to transport water from Cadiz, California to the Colorado River Aqueduct through a buried pipeline. Now, Cadiz plans to expand the project to enhance the operation.
Benefits
The proposed plans benefit in multiple aspects such as it will give the complete access to roads and power facilities. The reserved water supply through a new pipeline will meet the ongoing and additional services including fire suppression purposes when there is damage to the railroads. The project will also support to operate the steam-powered train between Cadiz Inc (NASDAQ:CDZI), California and Parker, Arizona for tourism.
Hurdles
The Bureau of Land Management (BLM) recently issued a new instruction memorandum (IM) on “Evaluation and approval activities within the railroad right to ways as per the 1875 Act.”
Accordingly, the BLM will evaluate the proposed activities of railroad services that cross the federal lands. If the agency found such incidences, which developed without the consent of the federal authorities, then the responsible parties will take the permission from the federal to proceed further.
So, the proposed plan for pipeline expansion by Cadiz Inc (NASDAQ:CDZI) to offer extended services may withstand hurdles as it perhaps needs the approval as per the latest IM.
Step ahead
Since 2012, the companies provided detailed information to the BLM on its projects. So, ARZC and Cadiz Inc (NASDAQ:CDZI) expects that they will get speedy approval from the BLM on the proposed projects in the railroad services as per the new IM.
