Cadiz Valley Water Conservation, Recovery and Storage Project. OVERVIEW & UPDATE August 2011

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1 Cadiz Valley Water Cnservatin, Recvery and Strage Prject OVERVIEW & UPDATE August 2011

2 The Cadiz Valley Water Resurce 1,300 sq. mile watershed Apprximately 20 millin acre-feet (AF) f water undergrund. Water naturally flws t dry lakes and is lst t evapratin. Estimated natural recharge = 32,500 AF per year. (AF/Y) 1 (Additinal mdeling being perfrmed) Cadiz Inc. is largest private landwner in area: wns 35,000 acres; has permits t farm up t 9,600 acres and t withdraw mre than 1 millin AF; uses apprximately 5,000 AF/Y fr agriculture with n changes in grundwater levels r impacts; Granite Muntains Orange Blssm Wash Bristl Dry Lake Prvidence Muntains New Yrk Muntains Fenner Valley BNSF 66 runs a netwrk f 8 prductin wells and 10 mnitring wells. Cadiz Lak Dry e 5 Miles 1. Surce 2008 USGS INFIL 3.0 Watershed Sil Misture Budget Mdel

3 Water Prject Reginal Lcatin Fresn 5 Las Vegas 15 Santa Barbara Bakersfield Barstw San Bernardin 40 Kingman Laughlin Needles CADIZ Ls Angeles 5 Clrad River Aqueduct San Dieg 8 El Centr Yuma

4 Hw It Wrks Wells n Cadiz Inc. prperty intercept grundwater befre it evaprates in dry lakes The cnserved water is cnveyed t the Clrad River Aqueduct (CRA) via undergrund pipeline Deliver water t participating agencies Future Phase 2 wuld stre imprted water undergrund

5 Prject Descriptin PHASE I - Cnservatin & Recvery Cmpnent Cnstruct wellfield n Cadiz Inc. prperty. Cnstruct 44-mile pipeline within existing railrad easement t cnnect wellfield t CRA. Fenner Gap Wellfield perated using established grundwater management techniques t capture sustainable yield. Subject t finalizing CEQA, annual average f 50,000 AF/Y cnveyed frm wellfield t CRA ver 50-year prject term. Includes 32,500 AF/Y, plus an amunt needed t manage the hydraulic gradient and limit evapratin at the dry lakes.

6 Prject Descriptin PHASE II Imprted Water Strage Cmpnent Cnstruct recharge basins n Cadiz Inc. prperty. Cnvey water frm the CRA t recharge basins fr strage. Return up t 75,000 AF/Y f previusly recharged water frm the wellfield t CRA. Subject t future envirnmental dcumentatin. Pilt Spreading Basin

7 Prject Histry Prject first prpsed in 1997 and develped with MWD until Beginning in 2008, Cadiz restructured Prject, updated science and accepted new participants. Summary f changes t Prject: Participants Metrplitan Water District f Suthern Califrnia Five smaller water prviders Pipeline Rute 35 miles acrss federal desert lands 44 miles alng existing, active railrad Pipe. Capacity 150,000 AF/Y 75,000 AF/Y Operatins Science Strage f imprted surplus water in wet years; Delivery f grundwater and previusly stred water in dry-years. Mdeling unspecific t lcal area; Pilt spreading basins and 1 test well. Delivery f grundwater in smaller amunts annually; Carry-ver strage f annual supplies; (Phase I) Imprted strage f surplus water (Phase II) Updated USGS mdel specific t lcal area; Multiple new test wells t 2,000 ft bgs cnfirming aquifer s gelgic characteristics; Mdeled impact analysis cnducted.

8 Prject Participants Participants include - SMWD Three Valleys Municipal Water District Jurupa Cmmunity Services District Glden State Water Cmpany Suburban Water Systems (SuthWest Water C.) Participants have signed ptin agreements and envirnmental cst sharing agreements with Cadiz Inc. SMWD is Lead Agency fr the CEQA envirnmental review prcess - Prepares the EIR t evaluate ptential envirnmental impacts. SMWD Bard f Directrs reviews analysis and decides whether t prceed. Other Participants and the Cunty f San Bernardin are Respnsible Agencies fr apprving the EIR. Prcess will determine the viability f the Prject fr the Suthern Califrnia regin.

9 Recent Develpments Cmpleted NEW Technical, Hydrlgical and Engineering Studies Cadiz Inc. has invested mre than $7 millin in new scientific analysis since 2009, including - Cmprehensive study measuring the vast scale and prductivity f the aquifer system at the Prject area by CH2M HILL. 10 new wells at the Prject site drilled t depths f up t 2,000 ft. bgs 10 test wells prduce 1,200 gallns per minute with almst n drawdwn. Wells reveal cavernus limestne carbnate strata deep belw grund. Gelgical characteristics f the aquifer system cntribute t recharge and prject sustainability. Peer reviews f CH2M HILL study by Dr. Jack Sharp (PhD in Gelgy and preeminent expert in limestne carbnates) and Dr. Dennis Williams (PhD in Hydrlgy and an expert in grundwater mdeling). Special analysis f ptential dust impacts cnducted at dry lakes. (HydrBi ARS, Dr. David Greneveld) Mdeling perfrmed with varying recharge. Gescience, Dr. Dennis Williams) Test pipe

10 Recent Develpments CEQA Envirnmental Review Initiated SMWD issued a Ntice f Preparatin (NOP) f a Draft Envirnmental Impact Reprt (DEIR) in February 2011 frmally cmmencing the CEQA prcess. The envirnmental review is being cnducted by ESA ( A 30-day scping perid was cnducted in March Scping meetings were held n March 16th and March 24th. Preparatin f a DEIR is nging with publicatin expected in Fall ARZC Railrad Easement

11 Recent Develpments Grundwater Stewardship Cmmittee Assembled In March 2011, a Grundwater Stewardship Cmmittee (GSC) frmed t guide the design f the perating plan and grundwater mnitring prgram The GSC has 13 experts, including industry prfessinals, regulatry fficials, academics, and nn-gvernmental rganizatins. Members include: Jack Sharp, Ph.D. (CHAIR) University f Texas Charles Grat Frmer Directr f the U.S. Gelgical Survey Andrew Stne American Grund Water Trust Gregry Thmas The Natural Heritage Institute Bb Wilkinsn, Ph. D. Prfessr f Water Plicy, U.C. Santa Barbara GSC site visit March 2011

12 Timeline 2011 Public Scping: Ntice f Preparatin (COMPLETED) 30-day public review (ended March 30, 2011) Public scping meetings (March 16 and 24, 2011) Draft Envirnmental Impact Reprt (IN PROGRESS) Ntice f Availability f Draft EIR Psted Minimum 45-day public review Public meetings 2012 Respnse t Cmments/ Final Envirnmental Impact Reprt 2013 CONSTRUCTION

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