It's a property rights dispute.  Seems there should be a bargain to be struck.  But only if both sides are wiling to play by the rules.  Which apparently neither side is…

A 20-year dispute between a Nevada rancher and federal rangers over illegal cattle grazing erupted into an Old West-style showdown on the open range this week, even prompting self-proclaimed members of militia groups from across the country to join the rancher in fighting what they say is U.S. "tyranny."

What began as a legal fight between longtime rancher Cliven Bundy and the U.S. Bureau of Land Management has escalated as Bundy kept his cattle on the federal land, and the government has responded by beginning roundups of the livestock.

To environmentalists and the feds, however, he's an outlaw of sorts who owes U.S. taxpayers more than $1 million in unpaid grazing fees.

The U.S. government is rounding up Bundy's cattle that it says have been grazing illegally on public lands in Clark County for more than 20 years, according to the land-management bureau and the National Park Service.

Between Saturday and Wednesday, contracted wranglers impounded a total of 352 cattle, federal officials said. Bundy says he owns 500 of the more than 900 cattle that federal officials are planning to confiscate for illegal grazing, the Las Vegas Review-Journal reported. Bundy told the newspaper that each head of his livestock is worth about $1,000.

via www.cnn.com

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  1. Alaina Gercak Avatar

    Since this dispute has been ongoing for so long, there must be some blurred legal lines that are causing such conflict to continue between the two parties. There are high transaction costs associated with this type of disagreement between the rancher and federal government. As Environmental Economics students we propose that the two parties should apply the Coase theorem and establish a clear contract to determine who owns the property rights. Through engage in negotiations some sort of payment system must be contracted so that mutually beneficial solutions and could create an efficient level of environmental quality that’s positive for both parties. Thus, the free-rider problem of the rancher would be solved, and the transaction costs of this expensive and violent dispute would be eliminated.

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