ON-BOTTOM MOLLUSCAN
SHELLFISH LEASES
PROGRAM INFORMATION
The Mississippi Department of Marine Resources (MDMR) is pleased to announce the recent update of its on-bottom shellfish regulations. These changes were made possible by the passage of Senate Bill 2648 during the Mississippi Legislature 2024 Regular Session. The updated statutes and regulations now allow private individuals or businesses to lease previously inaccessible water bottoms, fostering a sustainable framework for shellfish production in Mississippi while ensuring compliance with environmental and conservation requirements. They emphasize responsible cultivation practices, ensuring the long-term protection of the marine environment for future generations.
The overall goal is to promote the prosperity of coastal communities and foster a thriving and sustainable shellfish industry in the state. One of the primary objectives of the updated regulations is to encourage private individuals or businesses to lease and develop water bottoms, thereby increasing oyster production in Mississippi. By creating leasing opportunities, the regulations aim to stimulate economic development within the shellfish industry. This includes job creation, revenue generation, and support for associated industries such as hatcheries, processing facilities, and seafood markets. The overall goal is to promote the prosperity of coastal communities and foster a thriving shellfish industry in the state. The updated regulations are designed to establish a vibrant and sustainable shellfish industry.
MDMR established a system to determine qualifications of applicants. The system prioritizes applicants based on weighted scoring criteria. Those with the highest scores will be prioritized among eligible applicants to enter into a Lease Agreement for Oyster Production in Mississippi with the MDMR.
Applicants will be evaluated and scored through the MDMR’s comprehensive application process. Those with the highest scores will then enter into a Lease Agreement for Oyster Production in Mississippi with the MDMR.
The application period will open on Tuesday, October 1, 2024, at 8:00 am and close on Monday, December 2, 2024, at 4:00 pm.
For a comprehensive understanding of the updated regulations, interested parties can access detailed information below.
WHAT YOU NEED TO KNOW
| Topic | Question | Points | Supporting Documentation | Scoring Matrix |
|---|---|---|---|---|
|
Has the applicant held a valid Private Oyster Lease in Mississippi or another state and for what time period? |
10 |
On-Bottom Lease Agreement for any state |
1/2 point for every one (1) year that a lease was held. |
|
|
What relevant experience does the applicant have related to cultch planting and reef development?
|
10 |
State contracts, receipts, permits, relevant experience
|
1 point for every one (1) year of experience
|
|
|
How many years’ experience does the applicant have harvesting oysters?
|
10 |
Trip tickets with associated harvest licenses
|
1 point for every one (1) year of experience
|
|
|
Over the past ten years, how many cubic yards have you planted for a lease/contract?
|
10 |
Material purchase receipts, Barge receipts
|
1/2 point for every increment of 2,500 cubic yard
|
|
|
What is the total length of time that the applicant has been registered on the US Food and Drug Administration ICSSL for Mississippi? |
20 |
Verify business name on the ICSSL for Mississippi |
1.4 point for each year on the list |
|
|
What is the total amount of acreage applied for per application? |
10 |
N/A |
MDMR has determined the total acreage for each zone. Each application will be scored by dividing the requested amount by 10 points. |
|
|
What is the total amount of acreage applied for and currenly leased? |
10 |
N/A |
Total Acreage of lease applications and current leases (in MS) divided by 10 Points in 125 acre increments |
|
|
Evidence of Applicant's Financial Ability to Perform Cultivation and Propagation Requirements
|
20 |
Financial statements, business balance sheets, tax returns, bank statements, personal financial statement
|
|
- The MDMR has established lease conditions to ensure the sustainable cultivation and gathering of shellfish, while promoting responsible practices and compliance with regulations. These conditions outline various requirements that lessees must fulfill to obtain and maintain leases for shellfish cultivation.
- Leases are granted for a term of fifteen (15) years, with the lessee having the right to renew the lease for an additional fifteen (15) years and subsequent renewals at fifteen-year intervals, as long as the lessee actively cultivates and gathers shellfish, complies with all provisions, and possesses necessary permits and licenses.
- The proposed lease area must be located in growing waters classified as approved, conditionally approved, or restricted.
- If a lessee is unable to gather shellfish from the leased area due to a storm or natural phenomenon, they may renew the lease if they actively work the bottoms during the remaining term or renewal term.
- All leases expire on December 31 of the expiration year.
- To renew the lease, the lessee must 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.
- Each on-bottom lease application should be for one (1) acre, not exceeding 2,500 acres.
- The leasing rate for acreage is set at three dollars ($3.00) per acre per year.
- No proposed lease areas will be approved if they are within 50 yards of an existing lease area or a lease area pending final approval, unless the same person holds both leases.
- Lease of areas designated as state-owned reefs, as defined in Title 22 Part 1, for shellfish harvest by the MDMR is not permitted.
- Leases must actively ensure maximum cultivation and propagation of oysters throughout their term. The applicant must not commence any activities on the lease until all applicable permits, including MDMR wetlands permits, have been obtained. Failure to obtain permits indicates that the lease is not active.
- Appropriate poles, stakes, or buoys, constructed of such material as will not be injurious to watercraft, must mark all leases at the expense of the leaseholder.
- Each leaseholder must mark corners of each lease with an appropriate marker and must maintain all markers. If the lease configuration does not have definitive corners, the boundaries must be marked in a manner that clearly identifies the lease area. Each marker must list the lease number and marker position (i.e., southeast (SE) corner).
- Leaseholders must comply with all applicable federal, state, and local laws and regulations, including environmental and conservation requirements, throughout the lease term.
The MDMR has established specific cultivation and propagation requirements for lessees to ensure the sustainable growth and propagation of shellfish. These requirements are designed to promote the successful shellfish populations, maintain species diversity, and protect the natural ecosystem. Some requirements that lessees will be required to adhere to are as follows:
- Lessees must propagate a minimum of 50% of the total bottom area leased within the first five (5) years, with a minimum of 20% being propagated by Year 2 of the lease agreement. A minimum of 10% per year must be propagated thereafter, excluding Class III of the On-Bottom Property Classifications.
- The minimum planting density should 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.
- Only species native to the Gulf of Mexico may be cultured. Polyploid native species are prohibited. Imported shellfish seed used for grow-out in Mississippi waters must be descendants of broodstock originating from the Gulf of Mexico. The hatchery must provide documentation of broodstock origin.
- In instances of extreme environmental conditions designated by the MDMR that are not conducive to oyster recruitment or survival (e.g., hurricanes, freshwater intrusion, prolonged dissolved oxygen events, harmful algal blooms, federal fisheries disaster declarations), the cultivation requirements may be waived until favorable conditions resume.
- MDMR staff will inspect cultch material and volume prior to deployment to ensure compliance with USACE Permit conditions.
- Failure to meet these requirements may be grounds for termination of your Lease Agreement for Oyster Production.
- Planting, harvest, and cultivation activities shall be reported to the MDMR Shellfish Bureau annually no later than December 31st of each year.
- MDMR staff will inspect cultch material and volume prior to deployment to ensure conditions of USACE Permit are adhered to.
- 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.
- Failure to meet these requirements may be grounds for termination of your Lease Agreement for Oyster Production.
- The MDMR may conduct inspections, audits, and investigations to ensure lease holders’ compliance with lease terms, laws, and regulations.
- Non-compliance with lease terms, laws, and regulations may result in lease termination, and all works, improvements, betterments, and oysters on the leased water bottom will be forfeited to the MDMR.
- Upon lease termination, the lessee must remove any poles, stakes, buoys, or other structures associated with the lease.
- 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.
- Subleasing is prohibited.
- Lease transfers require prior written approval from the MDMR.
- Transfers of portions of the lease are not permitted.
- To obtain a transfer, the transferee must apply for the lease as if it were a new lease.
- The lease transferee must be a Mississippi resident or corporation.
- The new lease combined with other leases held by the lease transferee must not exceed a total of 2,500 acres.
- All terms and conditions, including term limitations, apply to the lease transferee.
HOW TO APPLY
STEP ONE – WATCH THE VIDEO BELOW FOR IMPORTANT PROGRAM INFORMATION
STEP TWO – LOCATE THE PROPOSED LEASE
Using the Mississippi Oyster Lease Application Map, locate your proposed lease area and write down the corner/point coordinates and total acreage.
You will add this information to the application in Step 3.
Click the map below to open the Oyster Lease Application Map
STEP THREE – GATHER THE NECESSARY DOCUMENTS
These are the documents that you will need:
- On-Bottom Lease Agreement for any state
- State contracts, receipts, permits, relevant experience
- Trip tickets with associated harvest licenses
- Material purchase receipts, barge receipts
- Corner/point coordinates from Oyster Lease Application Map
- Total acreage from Oyster Lease Application Map
STEP FOUR – COMPLETE THE APPLICATION
To apply for a Lease Agreement for Oyster Production in Mississippi, all applicants are required to complete the application and submit to the MDMR.
The application period will open on Tuesday, October 1, 2024, at 8:00 am and close on Monday, December 2, 2024, at 4:00 pm.
If you have located the lease location and it has less than eight points, and if you have gathered all of the required documentation, you are ready to complete the lease application.
**We recommend completing the application on a desktop computer and not a mobile device.
STEP FIVE – PROVIDE FINANCIAL DOCUMENTATION
As required by Senate Bill 2648, all applicants must submit financial documents demonstrating their ability to meet cultivation and propagation requirements. This process will be managed by Piltz, Williams, LaRosa & Company, and all documentation should be submitted by clicking the button below.
Please use the same email address that you used in the application.
These are the documents that you will need:
- Financial statements
- Business balance sheets
- Tax returns
- Bank statements
- Personal financial statement
Please note that your application will not be considered complete until these documents are submitted.
IMPORTANT - Click to read the key elements of the lease application:
The application process involves providing detailed information and fulfilling specific requirements according to Senate Bill 2648.
- Application Fee: A non-refundable application fee of $50 must be paid at the time of submission. The receipt time and date will be noted on the application. If you were provided a coupon code because you submitted an application last year, enter the code on the payment page to waive the $50 fee.
- Residency Requirement: Applicants must be residents of the State of Mississippi or be organized as a business entity (corporation, limited liability company, etc.) under Mississippi laws and registered with the Mississippi Secretary of State’s Office.
- Applicants will be required to submit their experience with:
- Experience in oyster reef development
- Experience in oyster cultivation and harvesting
- Registration with the US Food and Drug Adminstration, Interstate Certified Shellfish Shippers List (ICSSL) for Mississippi
- Amount of acreage to be leased
- Applicants financial stability
By submitting a complete application, applicants increase their chances of being considered for a Lease Agreement for Oyster Production. The information provided in the application will be evaluated by the MDMR and a certified public accountant based on the criteria outlined in the application process. It’s important to note that additional information may be requested by the MDMR, and site visits may be conducted as part of the evaluation process.
Overall, the application process ensures that applicants provide all necessary information and demonstrate their suitability and commitment to responsible shellfish cultivation and development in Mississippi’s waters.
APPLICATION REVIEW AND EVALUATION
The MDMR will undertake a comprehensive review process for each application to ensure a fair and transparent selection process.
During the review process, the MDMR may request additional information from applicants or conduct site visits to gather more detailed insights. This allows the MDMR to assess the suitability of the proposed lease areas and ensure compliance with established guidelines.
Upon approval of the lease application, the applicant is expected to enter into a Lease Agreement for Oyster Production with the MDMR.
If you have any questions or need further information, please contact Jason Rider at 228-523-4037 or oyster@dmr.ms.gov.
