Arizona AG Launches Lawsuit Against Saudi Company For ‘Excessive’ Depletion Of Arizona Aquifer
By Matthew Holloway |
The State of Arizona has engaged in legal battle against a Saudi Arabian firm: Fondomonte Arizona, LLC., on allegations that the agribusiness has violated public nuisance law by aggressively pumping groundwater from the Ranegras Plain Basin of La Paz County. The move could signal a split between Democrats Attorney General Kris Mayes and Governor Katie Hobbs whose chief campaign advisor is partnered with a lobbyist for the Saudi company.
Announcing the lawsuit on Wednesday, Mayes said the company, which enjoys a strong lobbying connection to Democrat Gov. Katie Hobbs, does not have “the right to endanger an entire community’s health and safety for its own gain,” according to KJZZ. She added, “The law is clear on that point.”
Mayes said the consequences are immediate and visible. She cited that the firm has operated in the Ranegras basin since 2014 and has several wells that pump up to 4,000 gallons of water per minute. She also shared that in 2023, it used approximately 31,196-acre feet of water.
“Fondomonte came to Arizona to extract water at an unreasonable and excessive rate because doing so was banned in its home country – another arid desert with limited water,” the lawsuit claims. “Fondomonte is taking advantage of Arizona’s failure to protect its precious groundwater resource.”
The Saudi firm called Mayes’ allegations “totally unfounded,” according to spokesman Barrett Marson.
“We believe the attorney general is setting a dangerous precedent attempting to penalize farming and the wider agricultural industry within the state of Arizona. The company complies with all state and local regulations.”
The amount of water drawn by the alfalfa farms is reportedly enough to serve approximately 93,000 single family homes. Neighboring wells serving homes less than a mile away went dry about five years ago. Mayes noted that the well for the Friendship Baptist Church a little under two miles away ran dry in 2017.
“The land is literally sinking in La Paz County with as much as 9.8 inches of subsidence documented in the immediate vicinity of Fondomonte’s farms,” she told reporters adding that under the nuisance law, action can be taken. However the AG pointed to what she described as the Arizona legislature’s failure to regulate the water use of corporate farms outside active management areas. “They have been completely AWOL when it comes to addressing rural Arizona’s water needs and these situations where people are being harmed,” she said, according to the outlet.
According to the Associated Press, Mayes said, “While laws regulating groundwater pumping could have prevented this situation, the legislature’s inaction has allowed the crisis to grow. When the legislature fails to protect our most basic resources, the attorney general must step in.”
Republican La Paz County Supervisor Holly Irwin praised the move, while castigating Arizona lawmakers for failing to weigh in. “That is why we are seeing foreign companies come over to these areas, purchase land and pump water out so that they can supplement their alfalfa and send it back home,” said Holly.
“Attorney General Kris Mayes is the first one who has stepped up and done anything about it. I know my constituents will be thrilled that somebody’s actually paying attention to the real problems here, which are wells that are going dry, the land subsidence that we’ve seen, and the concern that we have for the future of our basin.”
In March, Fondomonte was reportedly stripped of the ability to use Arizona’s water resources when the State Land Department inspected the company’s land leases in western Arizona’s Butler Valley and determined they were no longer irrigating in the area. The company allegedly pumped over 5.3 billion gallons of groundwater in Butler Valley throughout 2022, stopping after Gov. Hobbs canceled their leases on its thousands of acres of land in October according to The Center Square.
Mayes said in a statement at the time, “The Arizona Attorney General’s Office worked closely with Governor Hobbs’ administration on these inspections, which confirmed what we have suspected — Fondomonte has been in violation of its leases for many years.”
However, she was critical of the delayed reaction. “And while today’s announcement is commendable, it should have been taken by state government much earlier. The failure to act sooner underscores the need for greater oversight and accountability in the management of our state’s most vital resource.”
As reported by AZ Free News in July, Chad Guzmán, who co-manages the lobbying firm Fillmore Strategy with Hobbs’ senior campaign advisor, Joe Wolf, is now working as a lobbyist for Fondomonte. The move came after Fondomente enlisted Guzmán’s company, Signal Peak Consulting, according to a Fondomonte spokesman. Wolf referred to the development as a “nothingburger” at the time, telling the Arizona Republic the he is no longer paid by the Hobbs campaign and has no business dealings with Fondomonte.
Speculation is rife that Mayes could seek to challenge Hobbs in the 2026 Democrat Primary for the Governor’s office, though the Arizona Capitol Times reported in November that Mayes said she is looking at running for a second term as AG in 2026. Stacey Barchenger, state politics reporter at the Arizona Republic, confirmed to KJZZ’s Laren Gilger a day later that she had reached out to Mayes who indicated she intends to seek re-election as Attorney General. Despite these assurances, the outlet noted that the groundwater controversy has proven to be a high-profile dispute between the two Democrats.
With Hobbs’ favorability ratings critically low, the divide on groundwater, an issue that often garners bipartisan support for regulation, could prove to be a wedge issue in 2026 that places Mayes in a position to challenge Hobbs on equal footing, despite the Governor’s hefty $3 million war chest.
Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.