Arizona Attorney General Kris Mayes has announced the revocation of drilling permits for new deep-water wells on land leased to a Saudi-owned company, saying that their approval eight months ago was “unconscionable” because the state is on the verge of a water crisis.
Fondomonte, which is owned by a major dairy company in Saudi Arabia, has been growing water-intensive alfalfa in Arizona for export in order to feed cows in the Middle East. It’s illegal to grow the crop in Saudi Arabia because it takes up too much water.
But anyone who buys or leases land in Arizona can, after putting in a well, pump unlimited amounts of water because there are no regulations limiting how much water can be extracted. That’s despite the fact that Arizona is facing cuts to its surface water supply from the Colorado River system, which is critically low.
Eight months ago, the Arizona State Land Department (ASLD) approved two applications for new deep-water wells on the Butler Valley state trust land in La Paz County, some of which is leased to Fondomonte.
The newly-elected Mayes, who made canceling the leases part of her recent election campaign, said that the two leases to Fondomonte have been canceled.
‘Cusp of a Water Crisis’
Foreign-owned or leased farms in Arizona that are growing water-intensive crops have been the subject of controversy for some time.Later, Fondomonte leased land in the unincorporated township of Bouse, La Paz County, which lies on top of the Butler Valley Basin, an unrestricted basin that allows for continuous pumping.
Since then, Fondomonte has been pumping unlimited amounts of groundwater to irrigate the alfalfa crops, raising concerns that this would stress the Butler Valley aquifer.
“At the current rate of pumping, it is estimated the depletion of water in the Butler Valley Basin COULD occur within 25–30 years. If not before,” La Paz County Supervisor Holly Irwin said in a letter to former Arizona state Rep. Regina Cobb, in which Irwin called on the attorney general to investigate.
Irwin said that Fondomonte was leasing land at a discounted amount of $25 an acre, or around one-sixth of market value, which was depriving La Paz County of potential revenue that could be used for things like education.
Mayes, who ran on the promise of challenging Arizona’s lease agreement with Fondomonte and assumed office several months ago, said in an April 17 letter to the director of the Arizona Department of Water Resources that there have been reports of residential and commercial wells running dry in the area of the Fondomonte alfalfa farms.
She said in the letter that ASLD had formally requested to withdraw approval for the two Fondomonte wells.
“It is unconscionable that as recently as eight months ago, the state of Arizona was approving new deep-water wells designed to pump thousands of gallons of water per-minute out from under La Paz County,” Mayes stated. “It is long-past time for the state of Arizona to wake up and address this growing crisis head-on before it is too late.”
Mayes also renewed her calls for stricter oversight by state regulators of Arizona’s water resources due to a “historic long-term drought” facing the state.
“Arizona is on the cusp of a water crisis that could have devastating impacts for all Arizonans,” Mayes said in a statement.
“For too long, our state leaders have been asleep at the wheel while this crisis has only grown,” she continued. “Now is the time for the state government to get serious about regulating groundwater across Arizona and fulfill existing statutory duties so Arizona as we know it can continue to exist.”
Former Republican gubernatorial candidate Kari Lake has gone a step further, calling not only to cancel Fondomonte leases but to “examine all existing leases to ensure Arizona’s water and natural resources primarily benefit Arizonans, not overseas corporations,” according to her communications director Ross Trumble.
During her election campaign, Mayes pledged to be a “watchdog” over things like the leases and called for a “cessation” of the leases.
