Arizona AG Battles Fondomonte Over Water Rights

Aerial view of a large alfalfa farm highlighting irrigation systems

News Summary

Arizona Attorney General Kris Mayes has filed a lawsuit against Fondomonte Arizona, claiming the company’s excessive groundwater extraction depletes the Ranegras Plain Basin and threatens local communities’ water supply and health. Fondomonte, a subsidiary of Saudi Arabia’s Almarai, has responded by denying any wrongdoing and asserting compliance with agricultural regulations. The case raises significant concerns over groundwater management in Arizona and the impact of foreign agricultural practices on local resources.

Arizona Attorney General Kris Mayes is currently embroiled in a legal battle against Fondomonte Arizona, a subsidiary of the Saudi Arabian dairy giant Almarai. The lawsuit, initiated by Mayes, argues that Fondomonte’s extensive groundwater extraction is resulting in significant depletion of the Ranegras Plain Basin in La Paz County. Mayes asserts that the excessive pumping threatens not only the local communities’ water supply and quality, but also their health and property enjoyment.

The basis for the lawsuit hinges on public nuisance laws, which Mayes believes are applicable due to the adverse effects of Fondomonte’s operations on local residents. In response to the allegations, Fondomonte has categorically denied any wrongdoing, stating that it operates fully within the framework of federal, state, and local agricultural laws. The company claims that the Arizona Department of Water Resources (ADWR) is the authority governing groundwater laws in the state.

Since its establishment in 2014, Fondomonte has been pumping groundwater from the Ranegras Basin, a practice that has occurred during a period characterized by minimal regulatory oversight. In 2023 alone, Fondomonte reportedly extracted about 31,196 acre-feet of groundwater, a staggering figure that represented over 81% of all groundwater drawn from the Ranegras Basin during that year.

Mayes has expressed significant concerns regarding the implications of Fondomonte’s water usage on local wells, the quality of groundwater, and the overall availability of water supplies for the surrounding communities. Fondomonte operates a 10,000-acre farm dedicated to growing alfalfa, a crop known for its high water consumption, which is subsequently exported to Saudi Arabia where its farming is prohibited.

The company’s operations make it a crucial economic player in the region, ranking as the third-largest employer in La Paz County. The importance of groundwater extraction has also attracted wider attention, with foreign investors, including Fondomonte, holding around 45.85 million acres of U.S. agricultural land as of December 31, 2023. This figure marks a dramatic increase from the 7.6 million acres reported in 2020.

The groundwater use crisis has garnered bipartisan concern, with various political figures advocating for stricter regulations on Fondomonte’s activities. Mayes has criticized the Arizona Legislature for its insufficient action regarding groundwater regulations, particularly in rural areas where regulations tend to be less robust. Legislative proposals like the Rural Groundwater Management Act have been discussed, aiming to empower rural regions with greater control over groundwater management, though these changes would not retroactively affect Fondomonte’s ongoing activities.

Critics of Fondomonte’s practices argue that the current regulatory framework permits unreasonable water usage that ultimately harms neighboring communities and depletes their water resources. The outcome of Mayes’ legal efforts against Fondomonte is poised to set a significant precedent regarding water rights in Arizona. A coalition of farmers and ranchers sought to intervene on behalf of Fondomonte in the lawsuit; however, the judge denied their request.

There are concerns that if Mayes prevails in her legal challenges, it could pave the way for similar public nuisance claims targeting other agricultural operations across the state. Mayes aims to bridge the regulatory gaps surrounding groundwater management, acknowledging the complex challenges posed by existing laws in an era focused on drought conditions.

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STAFF HERE PHOENIX WRITER
Author: STAFF HERE PHOENIX WRITER

The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.

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