viewCadiz Inc

Cadiz shares pop on defeat of California bill to block its efforts to pump water from the Mojave Desert

The throwing out of a California bill paves the way for Cadiz to pump as much as 16.3bn gallons of water from its wells underneath the Mojave Desert

California Republic logo
Cadiz has been battling with environmentalists who argue that its business activities will endanger Bonanza Spring, the biggest spring in the Mojave

A bill that would have impeded a move by the Los Angeles-based Cadiz Inc (NASDAQ:CDZI) to pump water from a desert aquifer in the Mojave Desert has died in the California Senate, which marks a major victory for the company’s efforts to supply water to Southern California.

The defeat of California Senate Bill 120, which was introduced just last month, came about after the state’s Senate Appropriations committee set aside the measure in the wake of legislative deliberations.

The bill would have forced Cadiz to pass environmental tests before moving ahead with its program to pump and then pipe water from the desert to cities across Southern California.

The throwing out of the bill paves the way for Cadiz to pump as much as 16.3bn gallons of water each year from its wells underneath the Mojave Desert and send it via a forty-three mile pipeline to the Colorado River Aqueduct from where it will make its way to the people of Southern California. 

Cadiz had been locked in a battle with environmentalists who had pushed lawmakers in Sacramento to enact a bill that would hamper the project. Conservationists argued that Cadiz’s business activities would endanger Bonanza Spring, the biggest spring in the Mojave.

In response to the news, Cadiz shares jumped 17% to US$11.25 in Tuesday’s afternoon trade.

Quick facts: Cadiz Inc

Price: 12.67 USD

Market: NASDAQ
Market Cap: $440.56 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Anglo Pacific 'operating as normal' through uncertainty and has access to...

Anglo Pacific Group PLC's (LON:APF) (TSE:APY) Julian Treger tells Proactive London's Andrew Scott that relative to many other companies they're in a good position. ''We continue to operate as usual, everyone's working remotely and there hasn't been an enormous disruption to our business''....

12 hours, 34 minutes ago

2 min read