PHOENIX — Arizona Attorney General Chris Mays said in an interview. The Mike Broomhead Show on KTAR News 92.3 FM A day after Gov. Katie Hobbs announced the termination of the lease on La Paz County farmland in the city of Fondmonte, Arizona announced that statewide groundwater regulations are needed.
The company is a subsidiary of a dairy company Almarai Companywas excavating groundwater from an alfalfa farm in the Butler Valley to be shipped to Saudi Arabia to feed livestock.
Fondomonte Arizona, a subsidiary of Saudi-owned dairy company Almarai, said it plans to appeal the termination of its lease by the Arizona Land Department.
Mays briefly mentioned what alfalfa farmers have to go through to move through this process.
“Well, there's a regular appeals process through the State Lands Office. So it's the State Lands Office, which leases state land,” she said.
“This involved the governor making that decision. It was the right decision to terminate some leases and Butler Valley and not renew other releases in Butler Valley, Arizona. I think the La Paz County that was given to the Saudis in the 2014-2015 period, Mike, you know my opinion, but I think those leases should never have been given to the Saudis. .”
She said she thought the arrangement was flawed from the beginning, but an inspection revealed several leases had been violated.
How did Fondomonte Arizona break the lease?
In November 2016, Fondomonte was given notice and opportunity to correct the violations. The company failed to incorporate secondary containment structures in its fuel and diesel waste fluid storage units. In a 2023 inspection, the Land Department found that Fondmante had not corrected the default for nearly seven years.
“Well, you know there was some unsafe fuel involved in some unsafe fuel containers. So that was the specific breach at issue,” Mays said. “And of course, Mike, I think this arrangement violates the Gift Clause of the Arizona Constitution.”
gift clause Prohibited by state and local governments Giving or donating public funds to private companies is prohibited.
“I think there was a breach of the gift clause, and I think there was a breach of the lease agreement. It doesn't necessarily matter which country was involved or the fact that it was a foreign company,” Mays said. .
“I think most people would think that's outrageous on the face of it. But you know, we didn't charge this entity a penny for the water. Fact number one. In fact, number two is that there was a breach of the lease.”
Arizona has no statewide groundwater regulations.
Mays said parts of Arizona still have Saudi land leases.
“They still have a lease in a place called Vicksburg in La Paz County, so it’s not gone yet. I believe,” she said.
Situations like the one where companies are pumping Arizona's groundwater occur because there is no statewide regulation.
“We have AMAs in certain areas of the state that are regulated, like La Paz County. They're not regulated. That means companies can come in, and that's what's happening in Cochise County. You know that. We're a Minnesota-owned dairy farm, and we drain the wells of the entire dairy farm because all you have to do is stick a straw in the ground.”
“And essentially, the companies and organizations that raise the most money win, the companies and organizations that can drill the deepest wells win, and the companies and organizations that raise the most money win, the companies and organizations that can drill the deepest wells win, and the companies and organizations that surround these gigantic mega-dairies and these gigantic mega-agriculture operations win. Private landowners in the area will lose their livelihoods.''
“Groundwater regulation requires a statewide approach. It's no wonder Arizonans know that, and that's why a situation like this could occur in La Paz County.”
