Governor Hobbs Terminates One Fondomonte Lease and Won’t Renew the Other Three

From the office of Governor Katie Hobbs

The Saudi gorging of the precious groundwater supply in Butler Valley, Arizona (LaPaz County) so they can grow alfalfa and ship it to their country to feed their cattle may soon be coming to an end.

Because the holders of the Fondomonte Lease did not perform the required corrections to problems such as providing fuel containment equipment, Arizona Governor Katie Hobbs decided to terminate one of the Fondomonte Leases, citing default of their responsibilities after having seven years to correct the issue and announced, due to the adverse effect on the state’s water supply, that the other three leases would not be renewed.

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In an October 2, 2023 press release announcing the decision, Governor Hobbs stated:

“I’m not afraid to do what my predecessors refused to do—hold people accountable, maximize value for the state land trust, and protect Arizona’s water future. It’s unacceptable that Fondomonte has continued to pump unchecked amounts of groundwater out of our state while in clear default on their lease. I’m proud my administration has taken swift action to hold defaulting high-volume water users accountable and bring an end to these leases. And moving forward, I will continue to do everything in my power to protect Arizona’s water so we can continue to sustainably grow for generations to come.”

Arizona Attorney General Kris Mayes

Arizona Attorney General Kris Mayes quickly supported the Governor’s decision, issuing a press release, offering:

“I commend Governor Hobbs for taking action against Fondomonte’s default on their Butler Valley lease in Western Arizona, and for deciding to not renew the company’s additional Butler Valley leases. This decision to protect Arizona’s precious groundwater resources and uphold the integrity of our state land trust is a good step in the right direction for the future of Arizona. However, we must take additional steps to urgently protect Arizona’s water resources – especially in rural Arizona.”

“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.”

“And while today’s announcement is commendable, it should have been taken by the 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.”

“It has been long evident to Arizonans across our state that these leases never should have been signed in the first place. The decision by the prior administration to allow foreign corporations to stick straws in the ground and pump unlimited amounts of groundwater to export alfalfa is scandalous.”

While Fondomonte’s representatives have said they will appeal the Governor’s decision, Hobbs defended her position stating:

“This is not about the foreign-owned business. This is about protecting Arizona’s groundwater and getting the best value of the land for the beneficiaries.”

The Governor is right. Letting Fondomonte gorge the groundwater in the Butler Valley to serve Saudi Arabia’s domestic needs (where growing the alfalfa there is not allowed because, wait for it, of the drain on the water supply) was not in the best interest of the Grand Canyon State.

In a time where there is a historic drought, protecting the state’s water supply is essential to supporting the local populace and livestock.

The Governor should be applauded for the decision she made.

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3 thoughts on “Governor Hobbs Terminates One Fondomonte Lease and Won’t Renew the Other Three”

  1. Way to go, Great Job. The Saudis have sucked cash out of this and many other countries. Let them build their own desalination plants, they have the resources to do so. They need to get it done before the need for oil diminishes.

  2. Correct great job. Of course they will scream like, you know. And Gail Griffin would likely offer there is a Constitutional right to sucking a groundwater basin dry, in the name of freedom, of course.
    And Clarence Thomas would agree if his billionaire pals said to.

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