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LONG-TERM WATER ASSETS
 9 Months Ended
Sep. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
LONG-TERM WATER ASSETS LONG-TERM WATER ASSETS
Long-term water assets consist of water and water purchase contracts held for future use or sale. The water is held at cost, which includes the price paid for the water and the cost to pump and deliver the water from the California aqueduct into the water bank. Water is currently held in a water bank on Company land in southern Kern County and by TCWD in Kern County Water Banks.
The Company has secured SWP water purchase contracts from the Tulare Lake Basin Water Storage District and the Dudley-Ridge Water District, totaling 3,444 acre-feet of SWP water annually, subject to SWP allocations. These contracts extend through 2085 and have been transferred to AVEK for the Company's use in the Antelope Valley. In 2013, the Company acquired a contract to purchase water that obligates the Company to purchase 6,693 acre-feet of water each year from the Nickel Family, LLC, or Nickel, a California limited liability company that is located in Kern County.
The initial term of the water purchase agreement with Nickel runs to 2044 and includes a Company option to extend the contract for an additional 35 years. The purchase cost of water in 2025 is $986 per acre-foot. The purchase cost is subject to annual cost increases based on the greater of the Consumer Price Index or 3%.
The water purchased above will ultimately be used in the development of the Company’s land for commercial/industrial real estate development, resort/residential real estate development, and farming. Interim uses may include the sale of portions of this water to third-party users on an annual basis until this water is fully allocated to Company uses, as just described.
Water revenues and cost of sales were as follows for the nine months ended ($ in thousands):
September 30, 2025September 30, 2024
Acre-Feet Sold2,362 2,625 
Revenues$3,156 $3,260 
Cost of sales2,548 2,663 
Profit$608 $597 

Costs assigned to water assets held for future use were as follows ($ in thousands):
September 30, 2025December 31, 2024
Banked water and water for future delivery$45,182 $36,048 
Transferable water679 35 
Total water held for future use at cost$45,861 $36,083 

Intangible Water Assets
The Company’s carrying amounts of its purchased water contracts were as follows ($ in thousands):
September 30, 2025December 31, 2024
CostsAccumulated DepreciationCostsAccumulated Depreciation
Dudley-Ridge water purchase contract *
$11,581 $(7,117)$11,581 $(6,755)
Nickel water purchase contract *
18,740 (7,657)18,740 (7,175)
Tulare Lake Basin water purchase contract *
6,479 (4,040)6,479 (3,862)
$36,800 $(18,814)$36,800 $(17,792)
Net cost of purchased water contracts17,986 19,008 
Total cost of water held for future use45,861 36,083 
Net investments in water assets$63,847 $55,091 
*All water purchase contracts were acquired from third parties.
Water contracts with WRMWSD and TCWD are also in place, but were entered into with each district at inception of the contract and not purchased later from third parties, and do not have a related financial value on the books of the Company. Therefore, there is no amortization expense related to these contracts. Total water resources, including both recurring and one-time usage are:
(in acre-feet, unaudited)September 30, 2025December 31, 2024
Water held for future use
TCWD - Banked water owned by the Company63,406 60,936 
Company water bank54,728 54,728 
Transferable water933 505 
Recharged water6,797 6,797 
Total water held for future use125,864 122,966 
Purchased water contracts
Water Contracts (Dudley-Ridge, Nickel and Tulare)10,137 10,137 
WRMWSD - Contracts with the Company15,547 15,547 
TCWD - Contracts with the Company5,749 5,749 
Total purchased water contracts31,433 31,433 
Total water held for future use and purchased water contracts157,297 154,399