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Change in 1872 law could bring in millions

Nov. 10, 2005 at 9:30 AM   |   Comments

ASHLAND, Ore., Nov. 10 (UPI) -- The U.S. Congress is looking at changing a law from the 1870s that allows companies to stake claims on precious-metal laden land for $2.50 an acre.

The change, supporters told the Christian Science Monitor, would bring millions to local communities for schools and infrastructure. Opponents say it would set off a land grab of federally owned areas.

A law passed in 1872 allowed for the staking of land -- usually by individual prospectors -- for $2.50 an acre. But as technology changed, small stakes became much larger enterprises.

A measure proposed by Rep. Jim Gibbons, R-Nev., would increase that to a fee of at least $1,000 per acre to privatize the land, the Monitor said. Supporters say such a move could be worth $158 million to the U.S. government over five years.

Opponents to privatization told the newspaper they would rather see industries pay a royalty on the land, similar to the 8 percent royalties paid by coal miners and oil producers. This method, the Monitor said, could generate government income of $350 million over five years.

Topics: Jim Gibbons
© 2005 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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