The commissioners of Garfield County, Colorado, have formally communicated their concerns about the proposed Natural Asset Company (NAC) ruling to Vanessa Countryman, the secretary of the Securities and Exchange Commission (SEC). The letter outlines two primary objections to the rule currently under consideration by the SEC.
According to the commissioners' letter, they fear that the proposed rule could permit federal lands, including those in Garfield County, to be enrolled in a NAC. This is particularly alarming for Commissioners Tom Jankovsky, John Martin, and Mike Samson who noted that around 62% of northwest Colorado's 3,000 square miles - which constitute Garfield County - are federally owned public lands.
The letter asserts that if these lands were to be enrolled as NACs, it could threaten vital productive uses that underpin the local economy. These include funding for essential services such as schools, hospitals, emergency services and roads. The commissioners argue that a decrease in Congressionally authorized uses could negatively impact industries supporting the local economy. They also claim that proponents of the rule have not adequately considered its potential consequences on Garfield County.
In their correspondence with the SEC, Jankovsky, Martin and Samson requested consideration for two primary concerns. First among these is their worry about SEC granting management authority of all assets - including federal and private lands - to NACs without clear guidelines or citing authority for transferring management of federal resources. According to them, this lack of guidance allows private entities to set rules without limitations and potentially infringe on local governance.
The second issue raised by Garfield County pertains to the proposed rule's requirement for communities within a NAC's jurisdiction to adhere to its sustainability goals. This is irrespective of whether these communities share similar desires, policies or goals with the NAC. The commissioners argue that residents should have direct voting rights or representation through Congressional delegates before being involuntarily enrolled in a private investment company. The letter states that "the proposed purpose of this new investment product is to provide a vehicle for elite investors and governments to profit from the protection of natural resources," and adds that "there are certain things such as our public lands and our natural resources that are not for sale."
In light of these concerns, the commissioners' letter urges the SEC to reject the New York Stock Exchange's (NYSE) Proposed Rule. They argue for implementing measures to proactively disallow NACs from being listed on the NYSE. Their recommendations include withholding federal funds, denying access to federal lands or assets, and opposing any form of support for NACs.
