Overview
- State officials announced the lease cancellations this week after an Arizona State Land Department inspection found AgTech not in compliance and the Land Commissioner ruled continued leasing was not in the trust’s best interest.
- Investigators reported roughly 68,000 dry metric tons of treated sewage sludge were applied to the parcels, with more than 97% sourced from California and application rates near 140 dry metric tons per acre compared with commonly cited Arizona benchmarks of about 7 dmt/acre.
- The cancellations are effective immediately but include a 90‑day period for AgTech to cease operations and an additional 90 days to vacate if the company does not file an appeal; AgTech has said it will appeal and pursue legal remedies.
- Local farmers and residents long complained of foul odors, severe fly infestations, and dust linked to the biosolids operations, and state leaders including Governor Katie Hobbs and Attorney General Kris Mayes framed the move as protecting community health and State Trust assets.
- The dispute raises questions about interagency roles, lease due process and statewide policy for biosolids use, and it arrives as the Legislature’s Biosolids Study Committee prepares broader review and potential recommendations.