Maryland Natural Resources Section 4-11A-07

Article - Natural Resources

§ 4-11A-07.

      (a)      Except as provided in subsection (c)(2) of this section the term of leases for submerged lands shall be 20 years at an annual rent the Department deems proper and commensurate with the value of the leased land.

      (b)      If the Department ascertains that any leased area is affected by environmental factors which destroy or seriously impede the culture and growth of oysters and threaten the potential of the area for continued oyster production, it may reduce or abate the annual rent by an amount and for a period the Department deems equitable and reasonable in view of the degree of damage.

      (c)      (1)      In this subsection, "utilize" includes the planting or harvesting of not less than 25 bushels of oysters or 25 bags of clams per lease during 1 year of each 3-year period.

            (2)      If any part of the rent required by a lease remains unpaid for more than 60 days after it becomes due, the Department may declare the lease null and void in accordance with subsection (e) of this section and the land shall revert to the State and may be leased again. The Department may cancel any lease, either in whole or in part, and may diminish or cancel the annual rental to an extent commensurate with the area remaining under lease on the written request of the lessee.

            (3)      The Department shall adopt regulations and condition each lease to require a leaseholder to actively utilize the leased area within any 3-year period commencing July 1, 1990, or the effective date of a lease after July 1, 1990. The Department may allow a longer period than 3 years upon a showing that natural conditions, including unavailability of oyster shell or seed, prevented utilization.

            (4)      If a leaseholder fails to actively utilize leased bottom in accordance with regulations promulgated under paragraph (2) of this subsection, the leasehold shall revert to the State and may be leased again. A leaseholder shall maintain records documenting activities which show that the lease is being used for shellfish production as required by the Department.

      (d)      A lease may not be invalidated in any way by facts determined in any resurvey under § 4-1102 of this title unless the lessee forfeits his lease voluntarily, fails to pay rental or other fees, or fails to actively utilize the lease areas within a period of 3 years.

      (e)      (1)      The provisions of Title 8 of the Real Property Article do not apply to leases under this subtitle.

            (2)      Upon a determination under subsection (c) of this section, the Department shall notify a lessee of the lessee's opportunity to contest the Department's action in a hearing under Title 10, Subtitle 2 of the State Government Article.



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