Mississippi Administrative Code
Title 22 - MISSISSIPPI DEPARTMENT OF MARINE RESOURCES
Part 1 - rules and regulations for molluscan shellfish related activities
Chapter 10 - Molluscan Shellfish Leases
Rule 22-1-10.3 - On-Bottom Molluscan Shellfish Leases

1. Any person wanting to lease bottoms must complete an on-bottom shellfish lease application in writing and submit it to the MDMR Authority. Applications are available at the MDMR office.

2. An application fee of $50 must be rendered at the time of submission.

3. Applicants must be a resident of the State of Mississippi or be organized under the laws of the State and registered with the Secretary of State's Office.

4. The time and date of the receipt of each application will be noted on the application.

5. Each application must be accompanied by a plat showing the proposed lease area using decimal degrees coordinates, a map taken from NOAA nautical charts, 11371, 11372, 11373, or 11374, depicting the area to be leased and a description of cultch material and amount to be deployed.

6. Upon initial leasing of new areas, pursuant to Senate Bill 2544, 2023 Regular Legislative Session, the MDMR will issue a "Request for Proposals," the response to which must include the following information in addition to the application:

1. The MDMR Authority will review and evaluate each lease application based on the information provided in the application and in the response to the "Request for Proposals.

2. Approval of lease applications will be based on the criteria established by the "Request for Proposals" and an evaluation of the information provided in the response.

3. The MDMR Authority may request additional information from the applicant or conduct site visits as part of the evaluation 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 applications must be processed in order of the earliest receipt and so noted by the MDMR Authority, prior to consideration of each lease application; however, the MDMR is authorized to exercise its discretion as to which bid is the highest responsible bid, and such leases must be awarded to promote the maximum cultivation and propagation of molluscan shellfish.

8. The MDMR will either grant or deny the lease application and the applicant will be notified in writing of the action on their lease application no less than 30 days after the action proposal.

1. Each proposed lease area must be located in growing waters 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 before or after July 1 of each year 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 one (1) acre but must not exceed 2,500 acres.

8. The proposed lease area must have a continuous border.

9. The proposed lease area must be configured as a square or rectangle with the lease area boundaries meeting at right angles. However, the lease rent may be adjusted pro rata to conform to non-rectangular shapes within the lease area.

10. The length of the proposed lease area cannot be greater than twice the distance of the width of the lease area.

11. No proposed lease areas will be approved that are within 100 feet yards of an existing lease area or lease area that is pending final approval, unless the same person holds both leases.

12. No areas designated as state-owned reefs, as defined in this Part will be leased for shellfish harvest by the MDMR.

13. 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.

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. Planting, harvest, and cultivation activities shall be reported to the MDMR annually by December 31st.

6. MDMR staff will inspect cultch material and volume prior to deployment to ensure conditions of US ACE Permit are adhered to.

7. Failure to meet the above requirements may be deemed an "Event of Default".

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 the MDMR Shellfish Bureau for the previous lease period within 30 days on or before January 30th of each year.

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 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.

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 Mississippi resident or corporation.

6. The new lease combined with other leases held by the lease transferee must not amount to more than 500 acres.

7. All terms and conditions, including term limitations, from the lease transfer to the transferee.