Cadiz Inc. reported that on February 7, 2020 it received from the U.S. Bureau of Land Management (“BLM”) reaffirmation that the Cadiz Water Project’s proposed use of the Arizona & California Railroad’s (“ARZC”) right-of-way for its conveyance pipeline and related railroad improvements furthered a railroad purpose and is within the scope of the right-of-way, consistent with its conclusion in October 2017. The BLM confirmation responds to the direction of a June 2019 Los Angeles Central District Federal Court order requiring a supplementary explanation from BLM before the Court would validate BLM’s October 2017 evaluation. The 2020 analysis references the extensive record and sets forth the factual basis for its conclusions in detail while reaffirming the agency’s 2017 finding that the proposed infrastructure will further railroad purposes and therefore can be co-located and operated within the railroad right-of-way without additional BLM permitting. The Cadiz Water Project was exhaustively evaluated under the California Environmental Quality Act (“CEQA”) and independently reviewed and approved by the County of San Bernardino under local ordinances in 2012. Both actions were judicially validated in California’s Courts in 2016. Subsequently, an Addendum to the Project’s CEQA Environmental Impact Report was adopted by the Santa Margarita Water District in June of 2019 finding that there was no credible new information that the Project threatened harm to the environment.