Arrogance of Power

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~~~~~~~~~~~~~~~~~~~ĂRROGANCE OF POWER~~~~~~~~~~~~~~~~~

This is a true account of the corruption I have encountered by the US Government's Bureau of Land Management which I have entitled, ARROGANCE OF POWER.

This website deals with the government fraud, waste, and abuse I have encountered in "trying" to exercise my right to surface mine under the authority of the 1872 mining laws. It is the public's right to know how their Constitutional rights are usurped by the government in an attempt to take personal property without compensation.

My problems are with the Bureau of Land Management, Oregon state office, and the state of Oregon Mining Division known as DOGAMI. In trying to abide legally by the 1872 mining laws, I have observed their perjury and seen them obstruct justice by knowingly introducing fabricated (false) testimony under oath, using bully threatening tactics to intimidate both myself and my clients, all in an effort to stop me from mining a unique sand and gravel deposit in central Oregon.

I am not merely making accusations but I am posting proof of these violations click here -actual documents in hopes that this fraud and deceit will be exposed and that our government employess can understand they are not above the law and that the laws were designed for a purpose, to promote discovery of these minerals for the benefit of the local economy.

I was mining a unique deposit of sand and gravel under the terms of the 1872 mining laws, after years of research, I had filed mining claims covering approximately 1,000 acres and had complied fully with the law with all the correct paperwork and filing of documents. Bob Coats, owner of Deschutes Ready-mix was buying this material and mining it on my claims under a royalty arrangement. The local Bureau of Land Management (BLM) approved my plan of operations and issued a letter stating the terms under which this sand could be mined (11/8/91)..

On June 23, 1993, the BLM had decided to shut down my operation by serving me with a phony cease and desist order which was a notice of non-compliance order. They had an armed ranger hand me a document stating that we were mining outside the approved area in the plan. Since I had chosen this particular area I knew there had to be some kind of a mistake and Coats and I met with the BLM three days later and explained their mistakes to them.

We were told that the Solicitor (govt lawyer) had to rescind the order and told to wait, as the local office did not have the authority. After getting the run-a-round for several weeks, there was no respone from the BLM other than the fact that James Kenna who had issued the order was suddenly gone on a 2 week vacation and there was no one left who knew anything of the situation. This forced us into an appeal situation because the 30 day appeals time limit was about to expire. So Coats had his lawyer write an appeal to the Oregon State Director as required, which pointed out their errors as stated previously in our meeting. The State Director was absent of leave and the Solicitor (the same person who illegally shut us down) was there in his absence to write an opinion for the State Director which reaffirmed her own initial conclusions, after stalling us the maximum time (over 100 days) and issued this opinion denying our appeal. CERTAINLY A CONFLICT OF INTEREST HERE......

I appealed this decision to the Interior Board of Land Appeals (IBLA) and nearly three and one half years later they stated that I was illegally shut down because the BLM lacked the authority and required a court order which they had not secured (12/17/96). The decision also stated that the BLM was correct in issuing the notice of noncompliance order however, despite the clear proof that we were mining within the approved area, and there is evidence that the state knows we were not mining outside the approved area.

The mining laws state that a mining claimant may be required to prove that his mining minerals complies with the regulations, which is done through a process called a "contest". I was served documents stating that a contest was to be held in which the gov't would supply evidence that the materials I was mining was a "common variety", meaning it was widely abundent throughout the area and therefor not locatable. I was informed that the mineral examiner, Jerry Capps had won a trip and the BLM asked me if I would be willing to postpone the hearing to a later date. I was willing to accomodate their needs and the hearing was postponed. In the meantime, the Solicitor Maryanne King told me that the BLM would drop the contest proceedings if I could demonstrate to them the legality of my operation under the mining laws. I readily agreed and after 25 hours of good faith talks in which I proved the validity of my actions, they still refused to give in without giving me any reason, just saying they believed it was a common variety material.

In the words of Patrick Henry, "I smell a rat" I knew at this point just how corrupt this system was and I wrote King's superior stating that I had acted in good faith and revealed my case and they still refused to give in and that I was bound to find "smoke and mirrors" as their defense, and on June 27, 1994 (one year after the illegal shutdown) the hearing was held. I had previously found an attorney who was willing to take my case on a contingency, however, he was not prepared for the hearing and asked for a postponement which King and the BLM rudely denied our request forcing me to go to the hearing myself without any representation. I complained to the Judge, John Rampton but he basically said I was lying about having an attorney despite having my lawyer's request for postponement was already made part of the record.

When commencing a contest exam, the mineral examiner (Capps) is required to perform tests on the materials and evaluate the entire marketplace and the other products that are available and compare them. The only comparable pit was the Horse Ridge one and Capps admitted he had not bothered to even go there. I had spent over 25 hours in talks with Capps and others from the BLM in which i proved my case, however the BLM refused to admit to the truth. Instead they chose to lie and deceive and the day of the hearing they introduced fabricated evidence in an attempt to obfuscate the facts. By changing a table of prices in the marketplace with phony evidence, they were able to steal my case by taking advantage of the good faith talks we had, and committing perjury under oath in discussing these false facts. Representing myself, I was able to impeach Capps well over 100 times, however, Judge Rampton was just another advocate for the gov't and refused to give my motions for dismissal any credibility despite the fact the gov't had not presented a prima facie case, once this false evidence was revealed. When I impeached Capps and the Solicitor with a price list from one of the companies showing they overstated the price of sand by nearly twice the accurate amount, neither one had anything to say, nor did the judge when i asked for a dismissal...some justice ! more like JUST US !!

Needless to say Judge Rampton ruled against me and ignored my whole case as if i weren't in the room. I had the most competent witness in the county in Bob Coats (who had been in the business 30 years) and the BLM did not even have an expert witness. I promptly appealed my case to the IBLA and waited three and a half years for their denial of my appeal, completely ignoring the errors and evidence that my briefs revealed. The IBLA finally denied my appeal despite their own ruling that I was illegally shut down and my right to a fair hearing didn't seem to matter to the board. Unjust enrichment is a legal term that applies when one commits a crime they cannot benefit from it but this does not seem to be the case with the Bureau of Land Management.

Government's case is all smoke and mirrors

A validity hearing was held on June 27, 1994 one full year after the illegal shutdown. After more than 25 hours of " good faith " talks, the gov't realized that I was correct in my interpretation of the mining laws but failed to acknowledge the truth and chose to submit fraudulent documents and testimony regarding the key issues.

Bend Aggregate price list

O;Neill price list

The documents above are the only evidence that is relevant to the hearing because it demonstrates that my client Deschutes S&G sells our product for $15.60 per cu.yd while his competitors Bend Ag. sell their product for $8.50 and O'Neil S & G sells for $8.00 per cubic yard. Since the gov't had already taken advantage of me by failing to live up to their word regarding our "good faith" discussions, they knew they could say anything with their judge and get away with it. So much for oaths to God, apparently God has no effect on these bureaucrats who will say or do anything to preserve their jobs in maintaining the program .

Click on the Bulletin news article to see how the State admits they used inferior aggregate in the past in paving, and that by using "marginal" material, it has caused millions of dollars in damages because the roads are now rutted Bulletin (local newspaper)

Bulletin newspaper article

These documents were submitted by the BLM and as sworn testimony show the prices of materials in the local marketplace. As you can see above, the price lists and quote are the only evidence but the gov't submits their table #3 which lists every relevant price wrong.

Original price list

then on the day of the hearing they submit a revised listing of prices whereby they fraudulently show that everyone is now selling their material for the same price as my client which is TOTALLY FRAUDULENT.

Revised (Phony) price list

Within the last year i was able to receive a copy of my file with DOGAMI (State) where by there are notes of a converstation between Capps of the BLM and Frank Schnitzer of DOGAMI whereby Capps asks the state to issue a closure order on my operation but on the bottom of the note Schnitzer makes a note to his superior that they cannot issue a CO because we were "mining in the approved area" DOGAMI letter. This document is proof that the State (DOGAMI) knew of this illegal shutdown and failed to report this fraud, waste, and abuse, a violation of ethics.

DOGAMI Note Even the local newspaper did an article admitting that the state erred by using inferior aggregate and that they were forced to use a different source for all work in the future

This is the real story behind the story

First the Story

THE BEND BULLETIN..Bend, Oregon...March 22, 1998

Motorists cuss main drag's ruts

"Drivers feel trapped in tracks that make the car seemingly steer itself - ruts so deep, they cast shadows when the sun is low. Wrestling to change lanes feels akin to breaching the big waves at the mouth of the Columbia River in a broken-down dinghy".

"You get thrown around, from side to side all over the place, said Dylan Edwards, who spends much of his workday on the road, delivering food" ....

In a foulup that state highway engineers made sure not to repeat on Bend's new parkway, batches of SOFTER AGGREGATE, or gravel, from the Horse Ridge area have broken down under the gouging of studded tires and the weight of trucks

No one is happy about it, and the rock specs have been tightened up to prevent a recurrence. But Oregon officials warn not to hold your breath for a big (as in $1.5 million) paving job. That could be two or three years away.....

A Deschutes River Woods resident stated "Does somebody have to be killed before they do anything ? It's really ludicrous that they allow this to go on."

Another hard luck story ?, or maybe there is a reason why the situation happened

A superior source of state spec aggregate exists south of Bend which was being mined by Deschutes Ready-Mix, the major supplier of ready-mix and one of the main construction cmpanies doing work on the 90 million dollar Bend parkway. The authority for mining this deposit is granted in the mining laws and in particular, the Common Varieties Act of 1955.

On July 23, 1993 the Bureau of Land Management issued a bogus "cease and desist" order stopping production at this site. Knowing they had the protection of their own courts, they were able to get away scott free and totally absent from liability, even after their own court, the Interior Board of Land Appeals, stated in their 12/17/96 decision that the government "lacked authority to issue a cease and desist order, without a court order (federal district court)." This illegal shutdown interfered with Rothbard's right to a fair hearing, which took place on June 27, 1994, a full year after the illegal shutdown.

The BLM agreed to good faith talks prior to the hearing in which claimant Ray Rothbard proved to them that this particular deposit was an uncommon variety deposit of superior quality material, in 25 plus hours of "good faith" talks. However, the BLM failed to acknowledge the truth and the day of the hearing introduced fabricated evidence in an attempt to obfuscate the facts. Claimant Rothbard , representing himself pro se, pointed out these inconsistencies many times durng the hearing, including a motion for dismissal for failure of the BLM to establish a prima facie case, but the presiding Judge, John Rampton helped the BLM's cause by ignoring the facts and acted as aid to the BLM, by ignoring Rothbard's motions, evidence, and expert witness, Bob Coats. Needless to say, he ruled against the validity of the deposit.

In ignoring the facts, he did a disservice to all the residents of Deschutes County, and the result is millions of dollars in damages to the existing roads due to inferior aggregate being used.

This illegal act of removing "superior materials" from the marketplace was helped by Bruce Patterson from the ODOT state materials lab, who tested all the samples taken and testified under oath that the material only required screening to meet state spec, and failed to show that any other source within the county was comparable.

This obvious act of government corrupton was brought to the attention of Congressman Bob Smith (who refused to help saying this is a civil matter), Attorney General Janet Reno who refused to acknowledge the many requests for help, as they referred the case to the FBI who lost the file twice and failed to respond, President Clinton and Bruce Babbitt (head of the Dept. of the Interior), and many others.

This is a request for help to restore justice and integrity in our government, and is quite indicative of how the people suffer as a result of these crimes which normally are unknown to the public, and won't be prosecuted by the "proper" authorities. The Oregon state office of the Bureau of Land Management committed many civil rights crimes against Rothbard, knowing the ONLY way they can be held liable is to be dragged into federal district court like arrogant gangsters. As a Viet Nam Era veteran and little league president of five years, I, Ray Rothbard have found this conduct to be deplorable and sickening as Marianne King, Jerry Capps and Jim Kenna of the BLM are the most corrupt bureaucrats I have ever encountered, and this country will suffer if people like them are allowed to break the law. Further proof of any of these accusations is readilly available and will be furnished upon request. a letter to Senator Gordon Smith (the BLM's response to my complaint), the BLM states they "have filed a claim against the Coats estate for trespass damages in the amount of $270,000."

You have read about all these frauds and now the BLM is engaging in EXTORTION as a result of the crimes they committed by charging a dead man's estate (nobody understands that these charges are bogus, its just the intimidation that the gov't says something and it is too hard to fight them, after all they are spending somebody elses money.)

UPDATE After speaking with the new owner of Coat's old company, Deschutes Ready Mix, he has stated to me the BLM has never made an attempt to collect this fine. In other words, when the BLM responded to my Congressman Senator Gordon Smith they LIED. Why has the government engaged in such outrageous conduct you might ask yourself, ? the answer is simple they have done it before. As this link says they take your claims away and sell the material themselves. click here then use your back button to return

In pursuing this matter, I have found that the Attorney General's representatives act as "legal counsel" to these offenders and defends them, rather than prosecute, and there is no one else who can help. As a Veteran, I am totally appalled at the conduct and recklessness of the BLM, Inspector General, Dept. of Interior, and Attorney General. It is their inherent duty to report fraud, waste, and abuse, and nobody I have encountered in government seems to care, or given my claims any consideration.

The following crimes have been committed against me and so far NOBODY in government will hold the BLM accountable, they consist of






By virtue of IBLA (INTERIOR BOARD OF LAND APPEALS) decision Ray Rothbard, 137 IBLA 159 (1996)

"The B.L.M. lacked authority to issue a notice to cease and desist mining operations under 43 CFR 3809.3-2, because such action required an appropriate court order, which had not been obtained."

These are the civil rights violations they have NOT been prosecuted for:

42 USC 1983, deprivation of civil rights

42 USC 1985, conspiracy to interfere with civil rights

42 USC 1986, action for neglect to prevent abuse

42 USC 1987, prosecution for violations of civil laws

18 USC 241, conspiracy against civil rights

18 USC 242, deprivation of rights under color of law

18 USC 1341, Mail Fraud

18 USC 152, knowingly making false declarations

18 USC 1001, knowingly submitting false statements

18 USC 1962(d), conspiracy

31 USC 3802, liability for false claims and statements

43 CFR 20.735, fraud or fraudulent statements

On 7/23/97 I filed a complaint for damages with the Office of Hearings and Appeals (Arlington office), based on their decision that i was illegally shut down, which was denied, as well as 2 other tort claims previously filed with the BLM that were also denied, forcing me to pursue the matter in Federal District Court .

After many phone calls in following up my original March 1994 complaint filed with the Inspector General, I have concluded they will not prosecute their own for fear of proven liability.

The doctine of collateral estoppel states that a conviction (IBLA decision), can be proof of legal liability. The legal term, unjust enrichment states that one should not be allowed to benefit from their own wrongdoing.

In a FOI Request (Freedom of Information Act), I received a four page memo (7 months wait) with the Solicitor's (Marrianne King) response, which was lying to and misleading the Inspector General, in responding to my complaint (which was validated by the IBLA decision). In addition I have 20 fraudulent statements in documents sent to me in bogus threats trying to discourage me from pursuing my rights. My mining activities have been illegally blocked (despite all the violations above). I have found that I cannot resume mining (sand and gravel) since they continue to slander, harass, and intimidate both me and my clients as they remain unprosecuted for the above offenses.

I have documented proof of all of the above allegations. In pursuing justice against the BLM employees who have committed all of these felonies, the appropriate agency is the Inspector General. Mike Sedbrook of the IG Colorado office has told me he is only one of 28 agents and is too busy to deal with a low priority case such as mine.

In their total disregard for the law, I have made numerous complaints to the Attorney General who has refused to intervene, but has shuffled the case to the FBI who managed to lose the file twice and never did respond to my complaints to prosecute this fraud, waste, and abuse.

In essence, they are above the law, AND THEY KNOW IT !!!.

Not only have I suffered as a result of this fraud and deception, but many of the roads in Bend, Oregon have been paved with inferior aggregate which has broken down and as a result all taxpayers must suffer.... click here

In seeking a settlement for the violations of law that I have encountered, I have filed damage claims with the IBLA that ruled I was illegally shutdown but after 3 expedited requests, they are now making me drag them into Federal District court, continuing the legislative nightmare that i have encountered. This seems to be the way of the government, to complicate and obfuscate issues to the point where you either die or just give up out of frustration.

Please contact me for further details and I feel it is very important to inform the public of the conduct of the government in this instance, since the only thing they fear is bad publicity.

Ray Rothbard
54411 Huntington Rd.
Bend, Oregon 97707 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------------------------