Off-bottom Molluscan Shellfish Leases

Off-bottom Molluscan Shellfish Leases A. All off-bottom molluscan shellfish aquaculture harvesters must adhere to the rules and regulations outlined in the applicable Public Trust Tidelands Sublease, Commercial Aquaculture Permit, this Part, and the most current version of the NSSP Model Ordinance. B. Each off -bottom lessee must file a "Private Aids to Navigation" application with and receive permit approval from the U.S. Coast Guard, for the lease markers, and provide a copy of the permit approval to the MDMR Authority prior to final granting of the lease and placement of the markers. Source: MISS. CODE ANN. §§ 49-15-15; NSSP Model Ordinance § II-VIII Rule 10.3 On-Bottom Molluscan Shellfish Leases A. Lease Application 1. Any person wanting to lease bottoms must complete an on-bottom shellfish lease application in writing and submit it to the MDMR Authority. 2. Applications will be available at the MDMR office and on it’s website. 3. An application fee of $50 must be rendered at the time of submission. 4. Applicants must be a resident of the State of Mississippi or if a firm or corporation, such firm or corporation shall be organized under the laws of the State of Mississippi, registered with the Secretary of State’s Office, and owned by a resident of the State of Mississippi. 5. The time and date of the receipt of each application will be noted on the application. 6. Each application must be accompanied by a plat showing the proposed lease area using decimal degrees coordinates, depicting the area to be leased and a description of cultch material and amount to be deployed. 7. The MDMR will issue a Public Notice that applications will be accepted and such applications will be prioritized based on qualifications established in MS Code 49-15- 27. B. Lease Application Review 1. The MDMR Authority will review and evaluate each lease application based on the information provided in the application and determine the qualifications of each applicant. 2. Approval of lease applications will be based on the information provided in the response application. Applicants will be prioritized based upon the qualifications established in MS Code 49-15-27. 3. The MDMR Authority may request additional information from the applicant or conduct site visits as part of the application process. 4. Upon approval of the lease application, the applicant will be required to enter into a lease agreement with the MDMR, which will outline the terms and conditions of the lease, including rental rates, lease duration, and reporting requirements. 5. Lease holders must comply with all applicable federal, state, and local laws and regulations, including environmental and conservation requirements, throughout the term of the lease. 6. Applications will be reviewed by the MDMR staff for compliance with application guidelines and completeness. 7. In the event that applications are received for overlapping areas, the area will be assigned to the applicant with the highest priority based upon the qualifications established in MS Code 49-15-27. In the event that the areas applied for are the exact same area and the applicants are deemed to possess the exact same experience and financial stability, the MDMR will award that particular lease to the first applicant. The leases must be awarded to promote the maximum cultivation and propagation of molluscan shellfish. C. Lease Conditions 1. Each Proposed lease area must be located in growing water classified as approved, conditionally approved, or restricted. 2. Leases must be for a term of fifteen (15) years, with the right of the lessee to renew the lease for an additional fifteen (15) years and continue to renew at fifteen -year (15) intervals, at the same ground rental rate so long as the lessee actively cultivates and gathers shellfish, complies with all provisions, and has all applicable permits and licenses. 3. If the lessee is prevented from gathering shellfish from the leased area by a storm, or other natural phenomenon, the lessee may renew the lease if the bottoms are actively worked by the lessee during the remaining term or renewal term of the lease. 4. All leases issued must be prorated from the date of lease to the following expiration of fifteen (15) years from the date of the lease. 5. All leases expire on December 31 of the expiration year. 6. Each lessee has the option to renew their lease provided they submit a written application with payment of annual or prorated rental for the subsequent lease period within thirty (30) days of the lease expiration date to the MDMR Business Office. 7. Each application for an on-bottom lease must be for a minimum of one (1) acre but must not exceed 2,500 acres. 8. The proposed lease area must have a continuous border. 9. No proposed lease areas will be approved that are within 50 yards of an existing lease area or lease area that is pending final approval, unless the same person holds both leases. 10. No areas designated as state-owned reefs, as defined in this Part will be leased for shellfish harvest by the MDMR. 11. Leases must be active and engaged in ensuring maximum cultivation and propagation of oysters on their lease throughout their term. The applicant must not begin any activities on the lease until they have obtained all applicable permits, including MDMR wetlands permits. Failure to obtain permits is evidence that the lease is not active. D. Cultivation and Propagation Requirements 1. Lessee shall propagate no less than 50% of the total bottom area leased within the first five (5) years of the lease, with a minimum of 20% being propagated by Year two (2) of the lease agreement. A minimum of 10% per year shall be propagated for each year thereafter. This provision will not apply to Class III of the On-Bottom Property Classifications. 2. The minimum planting density shall be no less than 60 cubic yards of approved cultch per acre OR no less than 5 cubic yards of approved cultch material with a minimum of 75,000 oyster spat per cubic yard. 3. Must only culture species native to the Gulf of Mexico. Polyploid native species are prohibited. Imported shellfish seed to be used for grow-out in Mississippi waters must be descendants of broodstock who originated in the Gulf of Mexico. The hatchery where the aquaculture seed was produced must provide documentation of broodstock origin. 4. In instances of extreme environmental conditions designated by the Department that are not conducive to oyster recruitment or survival (i.e. hurricanes, freshwater intrusion, prolonged dissolved oxygen events, harmful algal blooms, federal fisheries disaster declarations) the cultivation requirements may be waved until favorable conditions resume. 5. MDMR staff will inspect cultch material and volume prior to deployment to ensure conditions of USACE Permit are adhered to. E. Reporting 1. All on-bottom molluscan shellfish reef lessees must submit a report outlining all shellfish related activity pertaining to their lease to the MDMR Shellfish Bureau within thirty (30) days of activity. 2. All on-bottom molluscan shellfish reef lessees must submit an annual written summary with supporting documentation of lease activity, to include planting, harvesting and cultivation, to the MDMR Shellfish Bureau for the previous lease period no later than December 31st of each year. F. Termination and Waivers 1. The MDMR may conduct inspections, audits, and investigations of lease holders' compliance with lease terms, laws, and regulations. 2. Non-compliance with lease terms, laws, and regulations after an opportunity to remedy the non-compliance may result in termination of the lease and forfeits to the MDMR all the works, improvements, betterments, and oysters on the leased water bottom. 3. On the termination of any lease, the lessee must remove any poles, stakes, buoys, or other structures associated with the lease. 4. All lease agreements must contain provisions requiring the lessee to waive any and all claims for damages that may result from any freshwater diversion projects authorized by the State of Mississippi. G. Subleases and Transfers 1. Subleasing is prohibited. 2. Lease transfers must first obtain prior written approval of the transfer by the MDMR Authority. 3. Transfers of portions of the lease are not permitted. 4. To obtain a transfer, the transferee must apply for the lease as if it were a new lease. 5. The lease transferee must be a resident of the State of Mississippi, or if a firm or corporation, such firm or corporation shall be organized under the laws of the State of Mississippi and owned by a resident of the State of Mississippi. 6. The new lease combined with other leases held by the lease transferee must not amount to more than 2,500 acres. 7. All terms and conditions, including term limitations, from the lease transfer to the transferee.