VICKSBURG, Ariz. — Agriculture in rural Arizona lives or dies on groundwater. After Gov. Hobbs terminated a contentious water lease with Saudi Arabia, more companies could be next on the chopping block.
“When they come in, they start sucking all of our water out. Our wells start dropping. So we have to drill deeper or they dry them completely up." Broken Arrow Land and Cattle Company rancher Brad Mead said.
The resource is running dry, and Mead told 12News large companies moving into Butler Valley over the last decade are partially to blame. Gov. Katie Hobbs said she's looking to her Water Policy Council to update and modernize the laws that let this happen.
“The Groundwater Policy Council is hopefully coming up with some really good recommendations that we can get enacted to protect the groundwater going forward," Hobbs said.
The Governor's office said the ASLD inspected three other companies in a transportation basin in August.
The inspections include on-site visits to ensure leaseholders are in compliance.
“This is about protecting Arizona’s groundwater and getting the best value of the land for the trust beneficiaries, and we’re doing diligence across the board with all state land leases to make sure that’s what’s happening," Hobbs said.
The ASLD Commissioner was unavailable for an interview with 12News on Tuesday but said since state land trust makes up such a large portion of the state, they work with the Governor and other agencies to ensure natural resources are mitigated against impacts.
RELATED: Attorney General revokes drill permits of Saudi-owned company building Arizona deep-water wells
The lease termination that started this review was with Fondemonte Arizona, a Saudi Arabian-owned farm using unregulated amounts of groundwater to grow alfalfa.
A spokesperson for Fondemonte said the company is not in violation of the lease. Gov. Hobbs said state inspections found the company violated one of its leases in several ways.
The Arizona State Land Department (ASLD) terminated the lease and won't renew three others when they expire in February.
The Fondemonte spokesperson also claimed that if the state doesn't renew their other leases, it would set a dangerous precedent for all farmers on state land.
"The other three leases that we announced that we are not going to renew are based on the best use of the land and the trust beneficiaries getting their value from that," Hobbs said.
ASLD will decide what happens to the land after Fondemonte moves out. Regardless of who takes over the land, the current law shows companies aren't required to regulate water usage.
"We're going to study the best use of the land, make sure that we're getting the best value out it, and work to protect Arizona's groundwater, which was a big part of this whole issue," Hobbs said.
Up to Speed
Catch up on the latest news and stories on the 12 News YouTube channel. Subscribe today.