Note 6 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 6– COMMITMENTS AND CONTINGENCIES

In 2012, the Company was named as a real-party-in-interest in nine lawsuits challenging the various Water Project approvals granted by Santa Margarita Water District (“SMWD”) and the County of San Bernardino (“County”) under the California Environmental Quality Act (“CEQA”). In 2013, three of the nine cases were dismissed or otherwise settled. Administrative trial for the six remaining cases began in December 2013 and concluded in February 2014. During the quarter ended September 30, 2014, the trial court issued final signed judgments (“Judgments”) in these cases, which denied all six petitions and upheld the environmental review and approvals granted by SMWD and the County. The Judgments also awarded costs to SMWD, the County, Cadiz and Fenner Valley Mutual Water Company as the prevailing parties in the cases. The petitioners have 60 days following the Court’s entry of judgment to file an appeal. To date, the petitioners have filed notices of appeal in four of the six cases. The Company is unable to determine whether or not the petitioners will appeal the rulings in the remaining two cases prior to the appeal deadline of December 1, 2014.

There are no other material legal proceedings pending to which the Company is a party or of which any of the Company’s property is the subject.