This chapter describes how farm owners or operators may petition the Department of Agriculture for written permission to defer mitigation for nontidal wetlands for agricultural activities under the Nontidal Wetlands Protection Act, Natural Resources Article, Title 8, Subtitle 12, Annotated Code of Maryland. Subject to the requirements of this chapter, a farm owner or operator may petition the Department for written permission to defer an applicable nontidal wetland mitigation component of a soil conservation and water quality plan on the grounds that mitigation will create an economic hardship that would jeopardize the continued operation of the farm. A farm owner or operator who petitions the Department as provided under Regulation .02 of this chapter shall use a departmental form that contains: The name and address of the farm owner or operator; The farm's location; The farm's total acreage; A description of the farm's operation; The number of nontidal wetland acres requiring mitigation; A copy of proposed mitigation alternatives; The estimated cost or costs of the mitigation proposal or proposals, verified by the local soil conservation district; A statement showing how mitigation will jeopardize the continued operation of the farm; A financial statement: Showing the owner or operator's complete assets and liabilities for the most current 2 consecutive years, and Signed by the owner or operator under the penalty of perjury that the information contained in the financial statement is true and correct; and Any additional information supporting the claim of economic hardship, including, for example, information from mortgagees, other lien holds, creditors, attorneys, the Internal Revenue Service, or any other third party interest who is qualified to address the economic condition of the owner or operator. The Department shall decide whether an applicant is entitled to a deferral of mitigation of nontidal wetlands by doing the following: Evaluating the applicant's petition and determine the applicant's net worth; Comparing the applicant's net worth with the cost of any proposed mitigation alternatives on the farm; and Determining whether a deferral is justified on the grounds that any required mitigation of nontidal wetlands will create an economic hardship which would jeopardize the viable continued operation of the farm. If the Department makes a written determination that mitigation will create an economic hardship that would jeopardize the continued operation of a farm, mitigation may be deferred until one or more of the following occur: The economic hardship no longer exists; The current owner or operator transfers the farm to a new owner or operator, but if this occurs, the current owner or operator shall remain responsible for any mitigation; or Agricultural activities no longer take place on the impacted nontidal wetland. If the Department grants a deferral, the owner or operator shall agree to provide the Department immediately with the following information if it would change or affect the economic hardship determination: Change in the owner or operator's financial status; Change in ownership or operation of the affected farm; Change of land use on the affected farm; and Change of agricultural or nonagricultural activities on the affected farm. By May 30 of each year, the owner or operator shall submit to the Department, on a departmental form, the most current status on the owner or operator's economic hardship. The owner or operator shall use the last filed tax statement, annual or quarterly, to assist in completing the status report requirement. At the time the Department determines the end of the economic hardship as provided in this chapter, an owner or operator shall implement the mitigation component of the Soil Conservation and Water Quality Plan within 3 years of the loss of the nontidal wetlands, or within 1 year of the end of the economic hardship, whichever is greater. Within 90 days of the end of the Department's determination of economic hardship, an owner or operator shall file the required surety bond with the Department of Natural Resources under COMAR 08.05.04.13. The Department shall submit an annual mitigation report to the Department of Natural Resources at the end of each fiscal year. The report in §A of this regulation shall provide the following information on the status of the Department's approval of economic hardship mitigation deferrals for each farm: Whether the economic hardship still exists; Whether the owner or operator granted the deferral is the current owner or operator; and The acreage of nontidal wetland losses for which mitigation has been deferred because of the economic hardship. The Department shall notify the Department of Natural Resources within 30 days of the Department's determination of the end of the economic hardship. The Department shall deny public access to records if access is denied under the Maryland Public Information Act, State Government Article, Title 10, Subtitle 6, Annotated Code of Maryland. After an opportunity for a hearing, the Department may refuse to issue or revoke its approval granted to any person under this chapter for: Any false or incomplete statements made by any person to the Department for the Department's approval; or A violation of any of the provisions of this chapter. Natural Resources Article, §8-1205, Annotated Code of Maryland Effective date: September 30, 1991 (18:19 Md. R. 2102)