01- 670 C.M.R. ch. 53, § 1.8

Current through 2024-51, December 18, 2024
Section 670-53-1.8 - FEES

Fees are required for the processing of conveyance applications and for private uses of Submerged Lands granted through conveyances.

A.Easements
1. Application Processing - $50.00
2. Registration - $50.00 every 5 years
3. Registration fee is payable upon execution of the easement and on or before December 31 every 5th year thereafter.
B.Standard Leases
1. Application Processing: $100.00
2. Annual Rental
a. Rental fees for Submerged Lands leases are set by the Legislature and are subject to change by action of the Legislature. The Bureau shall charge rental fees in accordance with the Submerged Lands Act, , as from time to time amended. Fees for certain uses which are not specified by law, such as dredging, pipelines, and cables are specified herein. The Legislature has defined two categories of methods for determining the annual rental fees for leased Submerged Lands:
(1) The annual rental fee for permanent structures greater than one foot in width, non-permanent structures greater than 500 square feet in area, buffer zones, loading, service and repair areas, and private berthing or docking space that is not rented or otherwise made available to other parties for a fee is based on a percentage of the value of the adjacent upland. The Submerged Lands Act provides the guidelines and formulas to be used in determining annual rental fees which are based on a percentage of upland value.
(2) The annual rental fee for slip space that is rented or otherwise made available for private use for a fee is based upon a percentage of the gross income of the Lessee. Examples of this kind of slip space include berthing space at marinas, dockominiums, boat clubs, and similar facilities and berthing space that is rented by the pier owner to a commercial vessel for a fee. The Submerged Lands Act provides the specific formulas to be used in determining annual rental fees which are based on a percentage of gross income. In order to determine annual fees, gross income must be reported to the Bureau annually on a form provided by the Bureau. Information sent to the Bureau on gross income is subject to verification by independent audit, which may be requested at the discretion of the Director.
b. When the Bureau determines that the municipally assessed value of the adjacent upland is not an accurate indicator of the value of Submerged Lands, the Bureau may:
(1) make adjustments in the municipally assessed value so that it more closely reflects the values of comparable waterfront properties in the vicinity; and
(2) require the applicant to provide an appraisal of the Submerged Lands. The appraisal must be approved by the Bureau.
c. Cables and Pipelines of less than one foot in width: $0.02 per linear foot.
d. Minimum Rental Rate: If the rental rate is determined to be less than $0.01 per square foot, it shall be rounded off to $0.01 per square foot.
e. Minimum Annual Rental Fee: $100.00
f. Rental fees are payable on or before each February 1 and on an annual basis thereafter. The rental fee due at the time of execution of a new lease shall be a portion of the total annual rental fee prorated over the remainder of the year.
g. Any lease fee which is more than thirty days past due shall be subject to a processing charge of $10.00 and interest on the amount due equal to the highest rate of interest charged for commercial unsecured loans by Maine banking institutions, as determined by the Treasurer of State.
3.Lease Options
a. Application Processing: $100.00 for the initial application.
b. Administrative Fee: $100.00 for the second year.
4. Rents for leased areas other than slip space which were in existence prior to August 1, 1989, shall be revalued to the full fair market rental rate as defined under Section 1.8.B of these Rules. Rents shall be incrementally adjusted annually until full fair market rental rate is reached in the year 2000.
5. Rental rates may be revised as follows:
a. As a result of any revision of these Rules, the Submerged Lands Act, or other applicable laws.
b. For slip space, rates are revised annually to reflect changes in gross income.
c. For areas other than slip space, no adjustment may be made within the first 5 years of the lease. Thereafter, the Bureau will conduct a periodic reevaluation of all non-slip space rental fees once every 5 years by contacting local municipal officials to determine the current valuation of adjacent upland property and making other adjustments and equalizations as necessary.
C.Dredging Lease
1.Application Processing: $100.00
2.Public Navigational Projects: There is no fee required for projects conducted by public agencies for a public purpose.
3.Private or Commercial Navigational Projects
a. Less than 1,000 cubic yards: $100.00
b. 1,000 to less than 5,000 cubic yards: $250.00
c. 5,000 to less than 10,000 cubic yards: $500.00
d. 10,000 or more cubic yards: $1,000.00
4.Materials removed for profit or use in another location: Fair market value to be determined by the Bureau.
5.Material removed for the placement of structures
a.Private or Commercial: Same schedule under 3 above.
b.Public Purposes: There is no fee required for projects conducted by public agencies for a public purpose.
6. Fees are payable upon execution of lease.
D.Constructive Easements
1.Administrative Processing: $50.00.
2.Registration Fee: $50.00 every 5 years.
3. Registration fee is payable upon execution and on or before December 31 every 5th year thereafter.
E.Lease Transfers, Assignments, and Amendments

Administrative Processing: $100.00.

There shall be no charge for minor amendments, as determined by the Bureau, that do not involve changes in the size of the leased area or substantive changes to the provisions of the lease.

F.Billing Procedure and Cancellation of Leases for Unpaid Rent

The following billing procedure will be used:

1. The Bureau will send the annual rental bill 30 days before due date.
2. If not paid by due date, the Bureau will notify lessee of overdue rent by letter.
3. After the due date, and whatever period the Bureau provides for corrective action, the Bureau will notify lessee that lease has been canceled and demand removal of any structures within 90 days.
4. If the structures are not removed as directed by the Bureau, the Bureau may turn the matter over to the Department of the Attorney General for appropriate legal action.
G.Exemptions

Although required to obtain a lease or easement, the following uses shall be exempt from the requirement to pay an annual rental or registration fee. If any of these criteria should cease to be met at any time during the operation or maintenance of the facility, then the exemption from the requirement to pay fees shall also cease, and the Lessee or Grantee shall be required to pay the applicable fee to the Bureau consistent with these Rules or other rules or laws then in effect.

1. Structures used by municipal or quasi-municipal entities in providing utility services.
2. Port facilities that:
a. Provide significant public benefits to the people of Maine, to offset the loss of the Submerged Lands occupied by the structure; and
b. Are an essential component of the State's marine waterway infrastructure, as determined by the Department of Transportation and approved by the Bureau; and are owned and controlled by a public entity which is publicly accountable for the business transacted at the facility, even though that business may be conducted by a privately owned and operated company under contract to the owner; and
c. Are sited and operated in a manner consistent with Maine's Coastal Management Policies.
3. Facilities, or portions of facilities, which are publicly owned or owned by nonprofit organizations that offer public use for free or with nominal user fees. Public uses include but are not limited to, municipal facilities that provide public access to the water, town wharves, walkways, fishing piers, boat launches, parks, nature reserves, swimming or skating areas and other projects designed to allow or enhance public recreation, fishing, fowling and navigation and for which user fees are used exclusively for maintenance of the facility.
4. Facilities, or portions of facilities owned by entities other than public or nonprofit organizations which are used only to provide free public access.
5. Other structures owned by municipal, state or federal governmental entities that are used to provide essential public services or enhance public trust values, including defense, maritime safety and environmental protection.

01- 670 C.M.R. ch. 53, § 1.8