Attorney General Asks Arizona Water Director to Act on Saudi Company's Well

Arizona Attorney General Kris Mayes is demanding that state water officials revoke a deep-water well drilling permit issued to a controversial Saudi company in rural Arizona.

The permit was recently issued to Fondomonte, with the well to be drilled on Fondomonte’s private land in La Paz County. The company had become known for leasing several parcels of public land in western Arizona, where it was allowed to pump groundwater without oversight. One of those leases was canceled by the state Department of Lands in 2023, and three others expired earlier this year.

Mayes’ letter, dated Thursday, was addressed to Tom Buschatzke, director of the Arizona Department of Water Resources.

The statement drew a sharp response that night from the office of her boss, Gov. Katie Hobbs. A spokesperson called the statement “empty rhetoric” and said Mayes’ remarks had been cited in Fondomonte’s legal appeal of the cancellation of its leases.

What does the Attorney General’s letter say?

Mayes said his office is currently investigating the impact of extreme groundwater pumping in La Paz and Cochise counties.

Mayes’ letter also noted that the well would be drilled in an area used by the military and could contain munitions debris.

Mayes asked Buschatzke to revoke the drilling permit and investigate the circumstances surrounding its issuance.

“I believe that these rural Arizonans cannot wait another day for meaningful action on this issue. Large-scale farming and Wall Street hedge funds have been allowed to exploit Arizona’s lax rural groundwater laws and drain these unprotected aquifers with no regard for small family farms and rural Arizonans,” Mayes said in his letter.

A 2022 Arizona Republic investigation highlighted Fondomonte as an example of a company securing below-market leases on Arizona’s vast swaths of state land. Fondomonte was unique in that its leases allowed it to tap into a groundwater reserve intended as a possible future source for Phoenix and other metropolitan areas.

What did the governor’s office say?

Fondomonte has appealed the termination of its public land leases and the case is still ongoing. One of the arguments put forward by the company is that it should not be discriminated against because of its national origin.

He cites Mayes’ comments supporting the cancellation of the leases: “The decision of the previous administration to allow foreign companies to plant straw in the ground and pump unlimited amounts of groundwater to export alfalfa is outrageous.”

Hobbs spokesman Christian Slater said in a statement: “Thanks to Governor Hobbs’ actions, four Fondomonte leases have been terminated, millions of gallons of water each year will not be pumped unchecked by a large corporation, and Arizonans will have better access to the water that is in their own state.” That’s because the governor is interested in taking real action to secure our water future instead of making empty statements.

“Right now, Governor Hobbs’ actions to hold Fondomonte accountable are subject to administrative prosecution in part because of the Attorney General’s reckless statements like the one she made today. “The Governor will continue to lead on water security, addressing the needs of everyday Arizonans, and putting real solutions ahead of political games and publicity stunts.”