The Southern Environmental Law Center (SELC) is raising flags that Twin Pines Minerals, LLC, a company seeking to mine next to the Okefenokee National Wildlife Refuge, has been benefiting from a state tax credit meant for conservation.
Georgia’s Forest Land Protection Act provides 10-year covenants where landowners promise to keep certain land use practices in timber or conservation. In return, property owners receive a property tax reduction of sometimes up to 60% or 70%.
The SELC found the covenant while looking through property tax records. SELC Senior Attorney Megan Huynh said Twin Pines Minerals has been receiving these tax benefits since 2019, and the covenant is set to last through 2034. Twin Pines said it would maintain the property as conservation forest land during that time period.
Huynh said this is worrisome.
“Twin Pines has already failed to pay even these artificially low taxes on time, which raises questions about whether it has the ability to pay these penalties to be released from the covenants,” Huynh said, referencing reporting from the Atlanta Journal-Constitution from August.
She said it not only raises concerns about Twin Pines’ ability to pay its taxes, but also its ability to pay for any damages the company might cause if it proceeds with its mining plan.
To get out of the covenant early, Twin Pines Minerals would have to pay Charlton County double the amount it has saved from tax reductions throughout its time in the covenant. If it sells the property, the next property owner must continue the covenant or pay the fee to end it.
Yanshu Li is an associate professor of forest economics and taxation at the University of Georgia. She said companies can exit the covenant early, but it can be costly — two times the money they’ve saved from the program. But for many larger-scale developers, the trade-off is worth it.
“Compared to development potentials, the penalty is nothing,” Li said. “It’s always good to enjoy the benefit first, and then once the opportunity comes, they just pay the penalty and then put the land for other uses.”
The Charlton County Tax Assessor office administers the Forest Land Protection Act covenants and did not respond to requests for comment.
Twin Pines Minerals has not started development on its property, however, it has conducted activities like drilling exploratory boreholes.
Li said this could breach Twin Pines Minerals’ covenant, but it’s up to the county tax assessor’s office to monitor compliance.
Twin Pines Minerals says it hasn’t violated its covenant. The company also said it will pay the fine to exit its covenant once it receives permits and is ready to start development.
The Charlton County Tax Assessor office said Twin Pines Mineral’s covenant hasn’t been altered at this time.
