This week the Bureau of Land Management (BLM) hosted an online competitive auction sale of federal minerals located under the surface of the Wayne National Forest. The BLM auctioned off 719 acres for a total sale of over $1.7 million. On average, each acre sold for $2,416.85.

More importantly, the local government will see a portion of this sale, as well as a portion of the royalty payments. In this case, the sale included leases with a royalty requirement of 12.5%.

Because the Wayne National Forest is public land, the area does not benefit from the revenues of private property taxes, which typically support schools, roads, bridges, and government services.  Monroe County in particular has to grapple with this as Wayne National Forest covers tens of thousands of acres. Instead of property tax payments, the Bureau of Land Management instead pays Payment in Lieu of Taxes (PILT) to counties that contain the forest.

Here’s how it works: Funds are returned to the states annually and then distributed to the counties based on national forest acres within the county, (a system which has been in place since 1908).  So, for Monroe County, leasing federal minerals in the most prolific dry gas region of the state will in fact be a windfall for local governments over the next few years.  For example, take a look at the receipts in 2014 from the national forest to Monroe County. As you will clearly see, they received no money from federal minerals as there was no development then.

With WNF leasing going ahead, all that will change for Monroe County

Perhaps that’s why the Monroe Cou...