BLM Approves MLA Right-of-Way Grant to Cadiz for Northern Pipeline

The Bureau of Land Management (BLM) announced their decision on Friday to approve the assignment of an existing Mineral Leasing Act right-of-way grant held for a natural gas pipeline by El Paso Natural Gas Company (EPNG) to Cadiz Real Estate, LLC (Cadiz) as part of a change of ownership. BLM’s approval of the right-of-way grant to Cadiz completes the Company’s acquisition of the 220-mile pipeline in 2020 and will allow the company to advance project development on several fronts.

The right-of-way assignment involves a 71-mile portion of an existing 30-inch diameter, buried gas pipeline extending 217 miles between Cadiz Valley in San Bernardino County and Wheeler Ridge, near Bakersfield, in Kern County.

“We’re excited to cross this milestone,” said Susan Kennedy, Executive Chair of Cadiz. “The Northern Pipeline is the backbone of Cadiz’s clean water and clean energy projects. Repurposing existing fossil fuel infrastructure to support clean water, green hydrogen and low-emission generation is the key to climate adaptation. The BLM staff did a great job sorting through a lengthy review process. We’re excited to move forward.”

This segment of the existing pipeline had not been used for more than 10 years and while Cadiz had previously expressed an interest in converting the pipeline to convey water, the BLM decision does not give Cadiz any future right or guarantee to utilize the right-of-way for such a purpose.

“The BLM carefully reviewed public comments and used that input to shape the decision,” said BLM Needles Field Manager Mike Ahrens. “The BLM added terms and conditions to make clear this decision is limited to the assignment of EPNG’s existing rights and may not be used for transporting anything other than natural gas.”

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