The bureau of Land Management just sold 155 acres of a mountain in Crested Butte Colorado for 875$ to the Phelps Dodge Corp. Crested Butte is a place where 1/10th of an acre brings in 100,000 dollars. How’s that for a windfall. How did this happen?
It goes back to a 132-year-old law the1872 Federal Mining Act
This act was developed during a time when the government wanted to entice people west. All a company needed to do was prove a mine would be profitable and the government would sell federal land for 5$ an acre or less. The company didn’t need to give any of the profits back and it turns out the company doesn’t actually have to build a mine. Now the government is in the process of giving away federal land for no gain to the taxpayers. If they don’t build the mine there are no jobs, and somehow it doesn’t seem like a community that averages half-million dollar houses needs mining jobs.
During the Clinton administration there was a moratorium on the law, but it lapsed, and the BLM has no choice but to follow the law. Even the mining companies seem to know that they really are getting too good a deal but there is no political will to fix it. The mining companies are willing to loose this provision if they are guarantied some kind of protection from future environmental concerns, and assorted laws that have been attempted have mostly tried to punish the mining companies for taking advantage of the law. The mining companies have too much power with western senators for that to get passed. The Bush administration is not exactly the bad guy here, the law predates them, but they seem to think that this will help oil exploration.
What sort of thing should be done, or is it ok for the government to give away our property with no benefit to the taxpayer.