Arizona AG Takes Bold Action Against Saudi Firm Over Devastating Aquifer Drainage

By Matthew Holloway |

The state of Arizona has initiated a lawsuit against Fondomonte Arizona, LLC, a Saudi agribusiness, alleging significant violations of public nuisance laws due to excessive groundwater extraction. The action highlights a potential rift between Attorney General Kris Mayes and Governor Katie Hobbs, especially as Mayes’ announcement coincides with Hobbs’ close association with a lobbyist representing the firm.

In a statement issued on Wednesday, Mayes asserted that Fondomonte “does not have the right to endanger an entire community’s health and safety for its own gain,” according to KJZZ. She emphasized the company’s operations since 2014, which reportedly involve wells capable of pumping 4,000 gallons of water per minute, leading to the usage of approximately 31,196-acre feet of water in 2023 alone.

The lawsuit contends that Fondomonte deliberately chose Arizona for its water resources after encountering restrictions in its native Saudi Arabia, where water use in similar arid conditions faces significant limitations. “Fondomonte is taking advantage of Arizona’s failure to protect its precious groundwater resource,” the complaint states.

Spokesman Barrett Marson labeled the accusations as “totally unfounded,” asserting the company’s compliance with all state regulations. He characterized the attorney general’s actions as potentially harmful to Arizona’s agricultural sector.

The volume of water utilized by Fondomonte is striking; it could supply approximately 93,000 single-family homes. Neighboring residential wells have dried up, with some, like the Friendship Baptist Church’s well, going dry in 2017. Mayes highlighted alarming land subsidence in La Paz County, citing evidence of up to 9.8 inches of sinking land in the regions surrounding Fondomonte’s operations.

Under the nuisance law, Mayes emphasized that action is justified. She criticized the Arizona Legislature for neglecting to regulate corporate agricultural water usage outside of actively managed areas. “They have been completely AWOL when it comes to addressing rural Arizona’s water needs,” she stated.

Echoing this sentiment, La Paz County Supervisor Holly Irwin praised Mayes’ lawsuit, decrying the state’s failure to regulate foreign agricultural interests. “That is why we are seeing foreign companies come over to these areas… to supplement their alfalfa and send it back home,” she noted, expressing relief that someone is addressing constituent concerns over dried wells and land subsidence.

In March, inspections by the State Land Department curtailed Fondomonte’s access to water resources, noting that the company had failed to irrigate land leased in Butler Valley. Reports indicate that Fondomonte extracted over 5.3 billion gallons of groundwater in 2022 before their leases were canceled in October.

Mayes criticized the delayed response from the state government and called for enhanced oversight of water management practices. “The failure to act sooner underscores the need for greater oversight and accountability,” she stated.

Complicating matters is emerging speculation about Mayes’ political future, with potential plans to challenge Hobbs in the 2026 Democratic primary. Meanwhile, lobbying connections involving the Governor’s senior advisor and Fondomonte complicate the narrative, although the advisor has publicly denied any ongoing business ties.

The unfolding groundwater dispute poses a critical issue for both Mayes and Hobbs, especially as public sentiment shifts toward advocating for more stringent resource regulations. As Hobbs grapples with low favorability ratings, the controversy over groundwater management may serve as a pivotal point in the upcoming election dynamics.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.