Cadiz Inc. has officially advanced the Mojave Groundwater Bank project into full construction phase. Consequently, the company established a definitive $403.3 million capital budget for its Northern Pipeline water conveyance facilities. The ambitious Mojave Groundwater Bank will convert a 220-mile idle natural gas pipeline into high-pressure water infrastructure. Meanwhile, the project faces immediate legal challenges from environmental groups and tribal coalitions.

Cadiz affiliate Fenner Gap Mutual Water Co. executed principal construction contracts in July using construction management-at-risk delivery. Specifically, Fresno-based W.M. Lyles will construct pipeline pump stations throughout the desert corridor. Mike Bubalo Construction from Baldwin Park will repair and prepare the existing pipeline corridor. Stantec serves as owner’s engineer, a role it assumed in early 2025. The project is not the only one facing legal hurdles as the Northeast Supply Enhancement pipeline with a federal appeals court has backed New York’s approval of the project. Consequently, developer Williams Cos. can proceed with the $1-billion natural gas expansion into New York City.

Mojave Groundwater Bank Taps Massive Desert Aquifer System

The Mojave Groundwater Bank utilizes an aquifer beneath Cadiz Ranch in the eastern Mojave Desert. Remarkably, this freshwater system holds approximately 50 million acre-feet of water reserves. That quantity roughly equals the combined capacity of Lake Mead and Lake Powell. Therefore, Cadiz projects the completed bank will provide 1 million acre-feet of underground storage capacity.

The Northern Pipeline represents one leg of a broader 350-mile conveyance network valued at $800 million. Additionally, separate infrastructure will connect the aquifer to the Colorado River Aqueduct system. Water will flow from the desert to the California Aqueduct north of Los Angeles.

Legal Opposition Threatens Project Timeline

Federal lawsuits filed on 24 August challenge the Bureau of Land Management’s 50-year right-of-way permit. However, Cadiz maintains the ruling enables pursuit of $194 million in government financing. One lawsuit involves Native American tribes and national parks groups, while another comes from environmental organizations. Specifically, opponents argue the permit bypassed mandatory comprehensive environmental review processes. Critics claim annual pumping of 25,000 acre-feet could deplete groundwater and dry fragile desert springs.

Project Overview

• Project Value: $403.3 Million (Northern Pipeline); $800 Million (total program)
• Location: Eastern Mojave Desert to California Aqueduct, north of Los Angeles
• Developer: Cadiz Inc. /Fenner Gap Mutual Water Co.
• Status: Construction phase commenced July 2026

Scope

• Converting 220-mile idle natural gas pipeline to water conveyance
• Pipeline pump station construction
• Corridor repair and preparation work
• Part of 350-mile total conveyance network

Project Highlights

• Public-private partnership with tribes and water agencies
• Lytton Rancheria of California committed $50 million equity
• Aquifer holds estimated 50 million acre-feet freshwater
• Targets 1 million acre-feet underground storage capacity

Key Developments

• Principal construction contracts executed July 2026
• BLM granted 50-year right-of-way permit for federal lands
• Two federal lawsuits filed 24 August challenging permit
• Stantec appointed owner’s engineer in early 2025

Key Challenges

• Federal litigation from tribal and environmental coalitions
• Concerns over depleting groundwater and desert springs
• Opponents claim inadequate environmental review process
• Protecting sacred tribal lands and Bonanza Spring ecosystem

Outlook

• Pursuing $194 million government loan and San Bernardino backing
• Completed bank projected to supply 2.5 million acre-feet new water
• Construction management-at-risk delivery model in use
• Legal challenges could impact construction timeline and permits