Fondomonte acquired its Butler Valley leases, which cover about 3,500 acres of land northwest of Phoenix, in 2015. The region is home to critical groundwater supplies, in a desert state that is thirsting for such resources.
While Fondomonte received permits for its water wells in 2016 — and has since been growing alfalfa to nourish cattle in Saudi Arabia — the firm made headlines last year when The Arizona Republic exposed its
below-market lease terms.
With orders from Hobbs, the State Land Department conducted site inspections in August and determined that the company had failed to address defaults already identified in November 2016, according to the governor’s office.
Among the deficiencies left unresolved for seven years was a failure to install a system designed to contain leaks in diesel storage units, Hobbs’s office noted.