SALT LAKE CITY - An environmental activist tainted an auction of oil and gas drilling leases Friday by bidding up parcels of land by hundreds of thousands of dollars without any intention of paying for them, a federal official said.
The process was thrown into chaos and the bidding halted for a time before the auction was closed, with 116 parcels totaling 148,598 acres having sold for $7.2 million plus fees.
"He's tainted the entire auction," said Kent Hoffman, deputy state director for the U.S. Bureau of Land Management in Utah.
Hoffman said buyers will have 10 days to reconsider and withdraw their bids if they think they paid too much.
Tim DeChristopher, a 27-year-old University of Utah economics student, said his plan was to disrupt the auction and he feels he accomplished his goal.
DeChristopher won the bidding on 13 parcels, auction records show, and drove up the price of several other pieces of land.
"I thought I could be effective by making bids, driving up prices for others and winning some bids myself," the Salt Lake City man said.
Some bidders said they were forced to bid thousands of dollars more for their parcels, while others fumed that they lost their bids.
"We were hosed," said Jason Blake of Park City, a consulting geologist who was outbid on a 320-acre parcel. "It's very frustrating. I hope the guy is prosecuted."
Several bidders said they hadn't decided whether they would withdraw their bids. Some said they may reluctantly hold on to their leases — despite the higher cost — out of concern that the parcels might not go up for auction again under President-elect Barack Obama's administration.
BLM criminal investigators questioned DeChristopher, who says he expects to be charged. He was released and the case was referred to federal prosecutors for possible fraud charges, said Melodie Rydalch, a spokeswoman for the U.S. attorney's office.
"I'm willing to deal with that," DeChristopher said.
I imagine that DeChristopher will be very prosecuted, but I wonder why he can't use the 10-day "buyer's remorse" period to "decide" that he overpaid for the land. Maybe it's special in the case of fraud. If these lands do come back up for auction, I hope someone else does this as well. You? Me?
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