Nah. I find this very hard to believe. The whole idea of burning-man is booze, drugs, and getting naked. The point of it is anti-authoritarian, and in many ways, anti-government. No one wants the Feds showing up.
If this is true, which I seriously doubt, they might as well just shut the thing down.
What they may do is simply move it. Go ahead with the standard burning-man for the tourists and the Feds. But, have the real one somewhere else with a limited audience.
