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Supervisors hear proposal for USG mineral-rights purchase under Big Hollow; conservation board raises concerns
Summary
The Des Moines County Board of Supervisors reviewed a US Gypsum purchase agreement for mineral rights under about 148 acres of Big Hollow Recreation Area. Conservation representatives warned proceeds may not be legally restricted to the conservation fund and urged further legal review; no sale was approved.
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The Des Moines County Board of Supervisors on a routine agenda reviewed a purchase agreement provided by USG (US Gypsum) that would give the company up to a year to determine whether to acquire mineral rights under roughly 148 acres of the county's Big Hollow Recreation Area.
Chris Lee, speaking for the county conservation office, said the document is a purchase agreement rather than a completed sale; it would let USG do soil borings to confirm mineral quantities and, if necessary, seek up to 10 acres of surface land later for ventilation or service shafts. "This agreement outlines kind of the approximate acreage, the purchase price," Lee said. He told supervisors the National Park Service flagged administrative requirements tied to Land and Water Conservation Fund (LWCF) restrictions but "didn't have an issue with the contract" other than process questions.
Why it matters: Big Hollow is a popular county-managed recreation area whose property is encumbered in places by federal LWCF restrictions. Conservation staff and board members warned that mineral-rights sales can trigger a federal "conversion" review and that proceeds from any transaction could be redirected within county budgeting processes unless the supervisors take explicit action.
A conservation-board representative told the supervisors the conservation board's practice has been to have Big Hollow revenues directed to the conservation reserve, but warned that "the board of supervisors' can redirect that revenue as they see fit." The representative added, "They can't stipulate where the proceeds of that transaction go" in a way that binds future boards.
Supervisors and staff discussed several legal and practical issues: how and when USG performs soil borings, whether blasting or operations might affect campers, whether an option that allows USG to buy surface parcels later creates land‑access or easement complications, and the county process required for real-estate sales. County counsel and staff noted that sale of mineral rights is a sale of real property and must follow public-notice, bidding and resolution steps; any conversion under LWCF would also require National Park Service approval.
Board members agreed to seek more information before any decision. "I'll check" on relevant case law and contract language, one staff member said, and the board requested staff to report back with legal guidance and any required public‑hearing steps.
No final sale or resolution was approved during the meeting; supervisors instead directed staff to review the contract language, confirm federal restrictions and return with recommendations and a public-process timeline.
What's next: Staff will review the contract for problematic language (including the undefined future-interest/optional surface purchase clause), consult legal counsel on LWCF conversion risks, and report back to the board before any public hearing or vote on a sale.
