[Congressional Record Volume 157, Number 163 (Thursday, October 27, 2011)]
[Extensions of Remarks]
[Page E1960]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      SOUTHEAST ARIZONA LAND EXCHANGE AND CONSERVATION ACT OF 2011

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                               speech of

                             HON. RON PAUL

                                of texas

                    in the house of representatives

                      Wednesday, October 26, 2011

       The House in Committee of the Whole House on the state of 
     the Union had under consideration the bill (H.R. 1904) to 
     facilitate the efficient extraction of mineral resources in 
     southeast Arizona by authorizing and directing an exchange of 
     Federal and non-Federal land, and for other purposes:

  Mr. PAUL. Mr. Chair, I rise reluctantly to oppose this legislation 
that authorizes a land exchange between the federal government and a 
private company to benefit that company's commercial interests. The 
bill conveys 2,400 acres of federal lands to Resolution Copper, an 
Australian mining company, in exchange for 5,300 acres of Resolution 
Copper's land to the federal government. In principle, I am strongly in 
favor of the privatization of federal government land and I only wish 
we would do more of it. This is not the way to privatize federal land, 
however. Rather than determine the real market value of the land, such 
as through a public auction process, the legislation names the company 
to receive the land with the stipulation that a yearly assessment of 
the land may result in a value adjustment payment to the federal 
government by that company. This additional fee would be paid to a 
special fund controlled by the Department of the Interior.
  Absent any free market mechanism to determine the real value of the 
land being conveyed, this looks like a special deal for one company. 
Even with the best intentions and intelligence on the part of the 
government, only free market mechanisms can accurately determine value.
  Also, doing the math on this bill it will result in the federal 
government controlling more land than before the bill! So rather than a 
privatization program it is an anti-privatization program.
  I am all for privatization of federal lands, and I am all for private 
industry profiting from this country's labor and natural resources. 
However, setting up these public/private partnerships and special deals 
is not the way to go about it. I sincerely hope that we will re-think 
this approach in favor of an open and public auction where as many 
companies may compete as might have an interest, even if we must change 
existing laws to do so.

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