Gov. Katie Hobbs announced Monday that the State Land Department terminated the lease with a controversial company that used groundwater in Arizona to grow and export alfalfa to feed dairy cows in Saudi Arabia.
She said in a statement that the Arizona State Land Department found that the company – Fondomonte Arizona – has defaulted on their lease since 2016, specifically for failing to properly store fuel and diesel exhaust fluid.
The department canceled one of its leases in Butler Valley and also delivered notice that it would not renew three others set to expire in February.
Hobbs’ administration also cited the company’s excessive use of the groundwater supply at no cost which is earmarked as a possible future source of water for Arizona. The deal became a flashpoint as the state faces an ongoing drought.