Gov. Katie Hobbs' administration announced two measures Monday to stop a controversial Saudi Arabian company from using groundwater in a state-owned basement in western Arizona to grow and export alfalfa.
Hobbs said in a statement that the Arizona Land Department has canceled one of its leases in Fondomonte, Ariz., and will not renew the remaining three that expire in February.
The governor's office said Fondomonte leases state land elsewhere, but these four companies account for all of Fondomonte's leases in the Butler Valley near Bowes.
The company cultivates approximately 3,500 acres of state-owned land in the Butler Valley in Saudi Arabia to grow feed for dairy cows, and is allowed to pump groundwater for that purpose without any checks or compensation.
The issue was brought to light last year by The Arizona Republic, which cited Fondomonte as an example of a company taking below-market leases on vast tracts of state-owned land in Arizona. Fondo Monte was unique in that its lease allowed it to draw water from a groundwater source designated as the future water source for Phoenix and other metropolitan areas.
Fondomonte's presence in western Arizona has become a political lightning rod as policy makers grapple with severe drought, diminishing supplies from the Colorado River, and increasing demand for water from a growing population.
“I'm not afraid to do what my predecessors refused to do: hold people accountable, maximize the value of our national land trusts, and protect Arizona's water future,” Hobbs said in a statement. mentioned in. “It is unacceptable that Fondomonte continues to pump unlimited amounts of groundwater out of state while clearly defaulting on its lease.”
Leases on state-owned land come with penalties for early termination, but the governor's office cited the company's default on “a number of items,” including failing to properly store fuel and diesel exhaust, to terminate the first Fondomonte lease. announced that its lease has been cancelled. Hobbs' office said Fondomonte was notified of these problems in November 2016, and an inspection in mid-August nearly seven years later showed the company had not fixed them. It has been revealed that
Other leases will not be renewed due to Fondomonte's use of “excessive amounts of water” in the Butler Valley. The Butler Valley is one of five water transport basins that allow water to be transported within the state and has been designated as a potential future water supply within the state. Phoenix and other metropolitan areas.
Fondomonte said through a spokesperson that he is reviewing the notice from Hobbs and the state Land Office and believes “the state incorrectly believes the company is in violation of the lease.” .
“Mr. Fondomonte will work with the Governor's Office to highlight these factual errors,” Press Secretary Barrett Marson said in a statement. “Fondomonte has complied with all the terms of the lease and we have therefore done everything required under those terms.
“For other leases that the state will not renew, this poses a risk to all farmers with state land leases, including very high costs to the state and Arizona taxpayers.” It will set a precedent. Mr. Fondomonte will seek every means to ensure there is no discrimination or discrimination.'' Unfair treatment. “
Original story:Arizona offers sweet deal to Saudi farm to pump water from backup source in Phoenix
Mr. Hobbs ran for governor last year and during his campaign began criticizing Mr. Fondomonte's mistress dealings. Her administration earlier this year revoked the company's well permits and suspended renewals and applications to lease federal land in groundwater transport basins.
Arizona leases vast swathes of federal land to private companies and uses the profits to fund the National Land Trust and its various beneficiaries, the largest of which is K-12 education. The state received $4.3 million in 2021 for about 160,000 acres of land leased for agriculture, according to the department.
The Republic report highlighted other shortcomings in these leases, including agricultural rental rates that have remained unchanged for more than 15 years.
Republican La Paz County Supervisor Holly Irwin has been raising concerns about these leases and their impact on the state's water supply for eight years.
“I’m so glad we have leadership in this administration that listens to the voices of La Paz County,” she told The Republic. “For the first time, I felt like there was real hope in addressing water issues.”
Irwin praised Hobbs as well as Democratic Attorney General Chris Mays and Rep. Ruben Gallego (D-Ariz.) for their work on the state's water crisis.
Mays took aim at Fondomonte's permit to drill a well and criticized the state Department of Water Resources for not following groundwater management laws.
Gallego, who is running for next year's U.S. Senate, has introduced a bill in Congress that would impose a 300% tax on sales and exports of water-intensive crops by foreign companies and governments.
“For all of our country's leaders to come together and look at this issue and realize that it's a mistake, it shouldn't matter which side of the aisle you're on. It shows how it should work,” Irwin said.
But Mays suggested the government had not acted quickly enough or addressed the systemic issues surrounding state-owned land leases.
“This decision to protect Arizona's precious groundwater resources and maintain trust on federal lands is a good step in the right direction for Arizona's future,” Mays said in a statement. He said the announcement was “laudable, but the state government should have made the decision sooner.”
“The failure to act sooner highlights the need for greater oversight and accountability in the management of our state's most important resource. … Foreign companies are putting straws in the ground. The previous administration's decision to allow unlimited pumping of groundwater and alfalfa exports is scandalous.”
Hobbs was sworn in as governor on January 2, following former Republican Gov. Doug Ducey, who served two four-year terms.
Contact reporter Stacy Birchanger. stacey.barchenger@arizonarepublic.com or 480-416-5669.
