<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".12" citation="COMAR 23.02.04.12" title_num="23" subtitle_num="02" chapter_num="04" heading="Compensation.">
  <paragraph num="A.">
    <text>Except for any license issued to a governmental unit, the Board may require as a license condition that the licensee pay compensation to the State in an amount the Board deems appropriate for the following activities:</text>
    <paragraph num="(1)">
      <text>Filling to make upland;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Dredging or severance of material unrelated to navigational need; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Similar nonriparian use.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Except for any license issued to a governmental unit, the Board shall require as a license condition that the licensee pay compensation to the State in an amount deemed appropriate by the Board for the following:</text>
    <paragraph num="(1)">
      <text>Cables, pipelines, or other structures over, on, in, or under State tidal wetlands; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Nonwater-dependent projects.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Compensation for Filling to Make Upland.</text>
    <paragraph num="(1)">
      <text>When the Board requires compensation for filling to make upland, the licensee shall pay a one-time amount equivalent to the fair market value of the upland created or other amount specified by the Board.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Administrator shall:</text>
      <paragraph num="(a)">
        <text>Determine the fair market value of the upland created based on the higher of two appraisals obtained by the licensee, after consulting with the Department of General Services; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Make a recommendation to the Board on the compensation amount.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Compensation for Dredging or Severance of Materials.</text>
    <paragraph num="(1)">
      <text>The Board may not require compensation for dredging projects involving navigational purposes, beach nourishment, removal of bottom contaminants, or displacement of the bottom during archeological investigations.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>When the Board requires compensation for dredging or severance of materials from State tidal wetlands, the licensee shall pay an amount specified by the Board.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The Administrator shall:</text>
      <paragraph num="(a)">
        <text>Determine an amount based on:</text>
        <paragraph num="(i)">
          <text>A nonrecurring, nonrefundable charge of $1,000, and a minimum of $250 or $1.75 per cubic yard of dredged or severed material, whichever is greater; or</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Any other rates specified by the Board; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>Make a recommendation to the Board on the amount of compensation.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>Compensation for Cables, Pipelines, or Other Structures.</text>
    <paragraph num="(1)">
      <text>The Board shall require compensation for cables, pipelines, or other similar structures over, on, in, or under State tidal wetlands.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The licensee shall pay:</text>
      <paragraph num="(a)">
        <text>A nonrecurring, nonrefundable charge of $1,000; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>A minimum annual compensation rate of $2.50 per linear foot or an amount specified by the Board.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>Each individual cable, pipeline, or similar structure is subject to the annual compensation requirement.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>The Administrator shall make a recommendation to the Board on the amount of the annual compensation by multiplying $2.50 by each linear foot by each individual cable, pipeline, or other similar structure.</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Five years after issuing the license and every 5 years thereafter, the Board may adjust the per linear foot annual compensation rate to reflect changes in the Consumer Price Index as published by the U.S. Department of Labor, Bureau of Labor Statistics.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Annual Compensation for Nonwater-Dependent Projects on a Pier.</text>
    <paragraph num="(1)">
      <text>Except for small-scale renewable energy system projects as authorized by Regulation .07B(3) of this chapter, the Board shall require annual compensation for:</text>
      <paragraph num="(a)">
        <text>Nonwater-dependent projects; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Projects that materially alter or expand the footprint of an existing nonwater-dependent project.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Calculation of Compensation.</text>
      <paragraph num="(a)">
        <text>The Administrator shall make a recommendation to the Board on the annual compensation amount that is based on the most recent data provided by the State Department of Assessments and Taxation in the assessment record for the real property to which the nonwater-dependent project is attached.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The annual compensation is computed by:</text>
        <paragraph num="(i)">
          <text>Multiplying the total square footage of the nonwater-dependent project by a fraction, the denominator of which is the total square footage of the land area of the real property to which the nonwater-dependent project is attached, and the numerator of which is the assessed land value of the real property to which the nonwater-dependent project is attached; and</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Multiplying the rate calculated under §F(2)(b)(i) of this regulation by a percentage considered appropriate by the Board not to exceed 100 percent.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(c)">
        <text>In determining the appropriate percentage under §F(2)(b)(ii) of this regulation, the Board may consider:</text>
        <paragraph num="(i)">
          <text>The extent to which the nonwater-dependent project is used on a seasonal or year-round basis;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>The extent of the economic impact of the nonwater-dependent project on the local jurisdiction;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>The nature and extent of the environmental impact of the nonwater-dependent project;</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>The extent to which the nonwater-dependent project and, if applicable, its roof or covering, are permanent or temporary;</text>
        </paragraph>
        <paragraph num="(v)">
          <text>Any history of violation of the State Tidal Wetlands Law by the licensee;</text>
        </paragraph>
        <paragraph num="(vi)">
          <text>Any real property lease rates for the area for a commercial activity similar to the licensee’s or any real property appraisals obtained by the licensee; and</text>
        </paragraph>
        <paragraph num="(vii)">
          <text>Any other factor that the Board considers relevant.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>Compensation received under this regulation is deposited into the Department’s Wetlands and Waterways Program Fund.</text>
  </paragraph>
</regulation>