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Based on that story, it appears that both sides are in the wrong. The rancher appears to be grazing his cattle on public land illegally. There are ranchers that have grazing permits on public land, and the land will support only a very limited number of cattle. If the story is correct, that rancher is infringing on the rights of other ranchers. The rancher's claim that he doesn't recognize federal authority is something that needs to be settled in court, not in a show down with armed federal agents.
On the other hand, it appears that the BLM is acting like storm troopers (or worse, ATF agents), a problem that they are known for. The BLM has a history of over-reacting and interfering with ranchers who have legitimate grazing rights on public lands simply because the BLM apparently doesn't like ranchers.
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A man's got to know his limitations. -- Dirty Harry
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