From Deseret News archives:

Park City seeks BLM land

But critics say $1.16 million offer too little for prime acreage

Published: Saturday, Dec. 17, 2005 8:43 p.m. MST
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"It is inappropriate to make payment for claims without a demonstration of validity under the mining laws," Calvert said, adding that "validity exams should be completed on the claims prior to any payment of land to these claimants because the economic value of the claims has not been established."

There is also concern the claimants are being compensated for something that has no real value, since it is unrealistic to expect that silver mining will ever resume in Park City.

Even city officials say there is a "very low" likelihood that mining would ever restart anywhere in Park City, and that the surface value of lands far, far exceeds any minerals that might be harvested.

So why compensate the companies — Leo-Rhea based in Tremonton and the United Park City Mine Co. based in Park City — for mining claims that will never be developed?

"If they passed a validity test (proving that minerals could be economically recovered), then they would have title to the surface. In other words, they would own the land," Park City manager Tom Bakaly said. "And the real value is the land."

Advocates for the legislation say the acquisition of the mineral claims is critical, that someday far in the future the lease holders could exercise their legal rights to develop a mine on the property, thereby acquiring the surface lands for potential development. And there would be little the city could do to block it from happening.

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All it would take is a change in market conditions for mined products.

"You never know what the future will be. There will still be a need for natural resources domestically," Harding said.

According to a 1983 study of mineral potential on two Leo-Rhea parcels, BLM chief geologist Burrett W. Clay reported a high probability of minerals at depths where they could be mined. "In fact, this probability is high enough to make the parcel mineral in character," Clay wrote.

And both parcels have potential phosphate and oil and gas deposits, he added.

But Clay also added the caveat, "While the claimants in this case have a high probability of discovering a major ore deposit, they have not as yet uncovered ore and made a legal discovery."

Two years later, the BLM entered into a lease with Park City, which wanted to use the surface lands for recreation. The BLM signed a memorandum with Leo-Rhea assuring the company it had not forfeited its rights to pursue the mining claims in the future if desired.

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Jeffrey D. Allred, Deseret Morning News

Park City Mayor Dana Williams, left, and city manager Tom Bakaly look over BLM-owned land within the city.

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