Water Scarcity Evaluation

Client: Confidential Client

Location: California

Summary: Cardno ENTRIX conducted a technical review of the water supply aspects at a food processing facility in California?s Central Valley in support of pre-aquisition due diligence efforts. Water resource supply and water quality issues continue to represent a complex and ever-changing aspect of many business activities nationwide, and are often particularly important in water intensive operations. For this facility, the inherent large water usage and wastewater generation precipitates several aspects to evaluate from both regulatory and economic perspectives. The factory?s on-site water wells provide an abundant and reliable supply of water for the plant?s use. However, regional issues related to aquifer water levels and aquifer water quality have created conditions at the facility that required additional monitoring because of historical pesticide uses in the surrounding agricultural areas. Future actions suggested, ranged from no action, to well modifications or replacement, to conversion to local municipal water supply for the ?process water? portion of the plant?s demand.

Additionally, the plant?s effluent stream has historically been allowed to be discharged on nearby farmlands. The California Regional Water quality Control Board has been steadily enacting additional water quality requirements and other restrictions that portend an end to this cost-effective discharge method. Suggestions on regulatory timing and optional discharge methods were provided.