FOR IMMEDIATE RELEASE
November 10, 2005
Contact: Josh Freed
(202) 225-4431

 
 WASHINGTON, DC – Democratic Chief Deputy Whip Diana DeGette (CO-01) questioned Republican’s financial acumen based on their proposal, as part of the 2005 budget reconciliation plan, to sell valuable public lands to mining, real estate and oil and gas companies for far less than actual worth.

“This is a complete violation of the public’s trust in their government. Instead of putting the American public’s best interests first, giving away these public lands at fire sale prices does nothing to reduce the deficit, nothing to encourage mineral development and nothing to protect vital hunting and recreation areas,” said Rep. DeGette.

The Republican proposal would put federally-owned public land up for sale for $1,000 an acre or the fair market value of the land, whichever is higher, but excluding its potential mineral wealth to mining companies. It would also allow non-mining companies, including real estate and oil and gas companies, to purchase the land. The Congressional Budget Office estimates this could generate $158 million in revenue over five years. A Democratic mineral rights reform plan would generate $350 million in revenue over the same period while retaining public ownership of the land.

Under the GOP plan, more than 123,000 acres of existing mining claims, including 22,000 acres in Colorado's Gunnison County, could be sold at fire sale prices. In addition, virtually all of the state’s 24 million acres of public land, including national parks, wildlife preserves and wilderness areas, could be put on the market for purchase by foreign corporations, real estate developers or oil and gas companies for as little as $1,000 per acre. Once sold, there would be no restrictions on development of the land.

“I have to wonder whether my Republican colleagues took even the most remedial classes in economics. They want to sell public lands for an estimated $158 million over five years that would generate $350 million from mineral production for American taxpayers over the same period. That’s a loss of almost $200 million,” said Rep. DeGette. “Shareholders would revolt against any CEO that tried to pull such a move.”

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