Queen Creek, Arizona — The Arizona State Land Department has terminated five agricultural trust land leases in Yuma County, ending commercial-scale applications of treated municipal sewage sludge and domestic septage on state parcels, Governor Katie Hobbs announced Thursday.
Queen Creek straddles Maricopa and Pinal counties in the Phoenix metropolitan area's southeast Valley, roughly 35 miles from downtown Phoenix.
The administrative action halts activities operated by AgTech LLC and affiliated entities, which had leased state-managed territory since 2002. Department records show the company distributed more than 68,000 metric tons of dried wastewater biosolids in 2025 alone, with greater than 97 percent of the material originating from California municipal utilities. Daily shipments required roughly 47 haul trucks arriving at the rural site.
State regulators cited heavy environmental impacts and contractual noncompliance following complaints from surrounding agricultural producers, business operators, and residents regarding dust, persistent odors, and insect infestations. Inspectors recorded application rates near 140 metric tons of dried material per acre on the parcel, compared to an average of seven metric tons per acre across other certified applicators in Arizona.
> "Arizona is not a disposal site for California's treated sewage sludge, and AgTech's commercial operations on Arizona state land were damaging local businesses, hurting Arizona farmers, and eroding the quality of life of families in the community." — Governor Katie Hobbs
