Saudi farming company reduces amount of Arizona groundwater it pumps, Gov. Hobbs says
PHOENIX (3TV/CBS 5) — A Saudi Arabian farming company has reduced the amount of groundwater it pumps in western Arizona, months after Gov. Katie Hobbs ended a controversial land lease with Fondomonte Arizona.
“Today is the start of a new chapter for Arizona’s water future,” Gov. Hobbs said in an emailed statement. “I’m not afraid to hold people accountable, maximize value for the state land trust, and protect Arizona’s water security. I am proud to deliver this not just for the La Paz County community, but for the entire state of Arizona, and will continue taking decisive action to protect Arizona’s water so we can thrive for generations to come.”
Gov. Hobbs and the Arizona State Land Department made the announcement on Thursday regarding Fondomote’s farm leases in the Butler Valley groundwater basin. That’s where the company had been growing alfalfa, then shipping the hay to the Middle East. There, the company leased 3,500 acres of land at $25 per acre and, under existing state law, was allowed to pump as much groundwater as needed at no additional cost.
State records show that Fondomonte used 5.3 billion gallons of water in 2022 alone. Last April, state officials rescinded approval for two new deepwater wells that would have been able to pump 3,000 gallons of water per minute.
Then, in October, Gov. Hobbs accused Fondomonte of violating the terms of its leases by pumping “unchecked amounts of groundwater” out of Arizona. She terminated one lease “due to an uncured default” and said the state would not renew three other leases in the Butler Valley groundwater basin that were set to expire in February.
Fondomonte said at the time that the company was “adhering to all conditions of the lease,” and that the cancellation would set a “dangerous precedent for all farmers on state land leases.” Hobbs says Fondomonte appealed the cancellation, which is still pending.
Following action by the governor and Arizona Attorney General’s Office, the state says that as of Feb. 15, Fondomonte was no longer irrigating on any Butler Valley farms and has begun taking steps to vacate the property.
But that’s not the only land where Fondomonte pumps water. The company still has other leases on state trust in Vicksburg and continues to farm that land.
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