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<regulation prefix="Regulation" num=".03" citation="COMAR 08.02.23.03" title_num="08" subtitle_num="02" chapter_num="23" heading="Commercial Lease Procedures.">
  <paragraph num="A.">
    <text>Aquaculture Activities on Submerged Land.</text>
    <paragraph num="(1)">
      <text>A person may not engage in aquaculture activities on submerged land in waters of the State, including the areas listed in Regulation .06 of this chapter, unless the land is leased or permitted for shellfish aquaculture purposes.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>To obtain a submerged land lease a person shall:</text>
      <paragraph num="(a)">
        <text>Apply for:</text>
        <paragraph num="(i)">
          <text>A submerged land lease by submitting an application on a form provided by the Department; and</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>A shellfish aquaculture harvester permit as described in Regulation .04 of this chapter; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>Submit a non-refundable fee of $300.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Aquaculture Activities in the Water Column.</text>
    <paragraph num="(1)">
      <text>A person may not engage in aquaculture activities in the water column unless the water column is leased or permitted for shellfish aquaculture purposes.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>To obtain a water column lease, a person shall:</text>
      <paragraph num="(a)">
        <text>Apply for:</text>
        <paragraph num="(i)">
          <text>A water column lease by submitting an application on a form provided by the Department; and</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>A shellfish aquaculture harvester permit as described in Regulation .04 of this chapter; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>Submit a non-refundable fee of $300.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Reporting. A leaseholder shall submit to the Department an annual report as required by the Department not later than December 31.</text>
  </paragraph>
  <paragraph num="D.">
    <text>Rent.</text>
    <paragraph num="(1)">
      <text>Submerged Land Lease. Except as provided in §D(2) of this regulation, the rental rate for a submerged land lease is $3.50 per acre per year and is due in full to the Department by December 31 of the preceding year.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The rental rate for the first year of a lease may be prorated and is due in full to the Department within 30 days of lease approval.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>Locations. In addition to restrictions provided in Natural Resources Article, Title 4, Subtitle 11A, Annotated Code of Maryland, a lease may not be located:</text>
    <paragraph num="(1)">
      <text>In waters classified as restricted by the Maryland Department of the Environment unless the person:</text>
      <paragraph num="(a)">
        <text>Provides proof to the Department of a viable relay location; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Has a demonstration lease;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>In the Assateague Island National Seashore as described in 16 U.S.C. §459f; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Within 150 feet of a Yates Bar located in an oyster sanctuary as established in COMAR 08.02.04.15A.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Prohibited Activities.</text>
    <paragraph num="(1)">
      <text>A leaseholder may not make any alteration which includes adding any type of fill or sediment other than shell to the existing condition of the lease without first obtaining the Department's written consent.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Shell present in the leased area at the time the lease is issued may not be removed from the leased area without the written permission of the Department.</text>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>Marking a Lease. A leaseholder shall:</text>
    <paragraph num="(1)">
      <text>Place a minimum of four poles at the corners of the lease perimeter;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Mark each pole with an 8-inch by 12-inch marker displaying only the initials or name of the leaseholder and the lease number; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Maintain and meet any standards for corner marker structures as required by the Department in documents available on its website.</text>
    </paragraph>
  </paragraph>
  <paragraph num="H.">
    <text>Gear.</text>
    <paragraph num="(1)">
      <text>All equipment, gear, or manmade material placed on the lease shall be permanently and individually marked with the lease number and name of the leaseholder.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The leaseholder shall be responsible and liable for equipment, gear, or aquaculture-related material:</text>
      <paragraph num="(a)">
        <text>That has been found adrift or unattended outside the boundaries of the lease area; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Remaining on the lease after the surrender, default, abandonment, or termination of the lease.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="I.">
    <text>Transfer of Lease.</text>
    <paragraph num="(1)">
      <text>A leaseholder may apply to transfer a lease by completing forms provided by the Department.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Prior to receiving approval of a transfer, the person receiving a transferred lease shall complete a lease application and a shellfish aquaculture harvester permit application and submit the required forms with the transfer form described in §I(1) of this regulation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="J.">
    <text>Surrender of a Lease. A lease may be surrendered by providing written notice to the Department.</text>
  </paragraph>
</regulation>