The U.S. Bureau of Land Management has issued a final decision approving a right-of-way grant allowing Cadiz, Inc. (NASDAQ: CDZI) to begin construction on converting its 220-mile Northern Pipeline from natural gas to water conveyance.

The approval, announced July 10, 2026, authorizes the conversion and operation of the pipeline across BLM-managed lands under Title V of the Federal Land Policy and Management Act. The right-of-way will extend for 50 years following the grant.

Cadiz purchased the existing buried steel pipeline from El Paso Natural Gas in 2020. Fenner Gap Mutual Water Company, a mutual water company formed by Cadiz in 2010, applied for the right-of-way to change the pipeline's use from gas to water, including the construction of pump stations and related facilities.

When placed into service, the Northern Pipeline is expected to enable delivery of up to 25,000 acre-feet of water annually to High Desert and Inland Empire communities in San Bernardino County, California, from the Mojave Groundwater Bank.

Susan Kennedy, Chair and CEO of Cadiz, said the company is "finalizing project financing with prospective investors" following the federal permit, noting that long-term offtake agreements and construction contracts are already in place.

Cadiz entered into commercial water supply agreements with public water agencies and investor-owned utilities in 2024 to provide water through the Northern Pipeline under long-term contracts.

The Mojave Groundwater Bank is being developed by Cadiz in partnership with Lytton Rancheria of California, a federally recognized Native American Tribe. The project is located within the Fenner Valley Aquifer System in California's eastern Mojave Desert.