litigation
confidence high
sentiment negative
materiality 0.70
Intrepid Potash loses most Pecos River water rights; $32.5M contract liability at risk
Intrepid Potash, Inc.
- Court ruled all Pecos River water rights forfeited or abandoned before 2017 except 150 acre-feet/year for salt processing.
- Intrepid relied on Pecos River to deliver water under a sales contract with $32.5M outstanding liability as of June 30, 2021.
- Company states it has sufficient liquidity to satisfy obligation if necessary without material adverse effect; appeal is being considered.
- Caprock and South Ranch water rights unaffected; current mining operations and other sales obligations can be met.