Saudi company at center of water controversy parts ways with Ariz. lobbyist with ties to Gov. Hobbs

A lobbyist with ties to Arizona Gov. Katie Hobbs is no longer representing a Saudi Arabian company at the center of controversy for using the state's groundwater and land to grow and export alfalfa crops.

Chad Guzman said Friday he was "no longer representing Fondomonte, but wish them the best." State-required lobbying records show Guzman was not working for the foreign company on Friday, just two days after registering with the state to represent them.

Guzman had signed a contract with Fondomonte Arizona about two months ago through his lobbying firm Signal Peak Consulting. He has another business, Fillmore Strategy, with Joe Wolf, Hobbs' senior campaign adviser and a confidant of the governor.

The Arizona Republic and azcentral.com highlighted the connection in an article on Wednesday in which Wolf declared the connection between he and his business partner's controversial new client a "nothingburger" because he had done no consulting for Fondomonte.

There was another Friday shakeup for the company's hired help in Arizona: Matthew Benson, a partner at the firm Veridus who worked briefly as a spokesperson for the company, said he no longer represented Fondomonte, "but wish them well."

Benson, speaking on behalf of Fondomonte, previously said Guzman was hired because of his experience working with natural resources companies. Those include Guzman's history as a lobbyist for Arizona Public Service Co. and Epcor, the water provider. A spokesperson for Hobbs declined to comment on the ties between Wolf and Guzman.

Fondomonte's leases in Arizona

Fondomonte leases state lands in Arizona's Butler Valley, near Bouse, to grow feed for dairy cows. The lease rate is $25 an acre, roughly a fifth of market price for farmland in the area, and the leases allow Fondomonte to draw unlimited groundwater that could serve as a future water supply for the Phoenix area.

The leases were first revealed last year by The Arizona Republic and prompted widespread condemnation and pledges from Hobbs and Democratic Attorney General Kris Mayes to take action. Hobbs oversees the Arizona State Land Department and Arizona Department of Water Resources, two agencies that do business with Fondomonte related to leases and water wells.

So far, two well permits have been revoked, and the Hobbs administration in May paused lease renewals and applications for state-owned land in basins such as Butler Valley.

Reach reporter Stacey Barchenger at stacey.barchenger@arizonarepublic.com or 480-416-5669. Follow her on Twitter @sbarchenger.

This article originally appeared on Arizona Republic: Fondomonte, Arizona lobbyist who is partner with Hobbs' adviser split