1. A. Eligibility. The Department may only issue a demonstration lease to be used exclusively for educational, conservation, or ecological purposes to:

   1. (1) A public high school;
   2. (2) An incorporated college or university within the State;
   3. (3) A 4-H club; or
   4. (4) A nonstock, nonprofit corporation organized under the laws of the State.

2. B. Application.

   1. (1) Prior to obtaining a demonstration lease, an eligible group or organization shall complete and submit an application on a form provided by the Department.

   2. (2) The application shall include:

      1. (a) Documentation that the applicant meets the qualifications set forth in Natural Resources Article, §4-11A-11, Annotated Code of Maryland;
      2. (b) The name and contact information of an employee of the applicant group or organization who will be responsible for ensuring that the requirements of this regulation are met;
      3. (c) The purpose of the demonstration lease;
      4. (d) A declaration that the applicant intends to actively use the leased area for demonstration purposes; and

      5. (e) A proposed plan for active use of the demonstration lease which shall include:

         1. (i) The applicant’s source and quantity of shellfish or shellfish seed;
         2. (ii) The quantity of shellfish or shellfish seed that the applicant expects to plant on the leased area during the initial 3 years of the lease;
         3. (iii) A description of the activities that will occur on the leased area; and
         4. (iv) A description of the labor, materials, and equipment to be used by the applicant.

3. C. Application Review Process.

   1. (1) If an application for a demonstration lease in the Chesapeake Bay or in the Atlantic Coastal Bays meets the requirements of this regulation and Natural Resources Article, §4-11A-11, Annotated Code of Maryland:

      1. (a) The applicant for the lease shall mark the proposed area with a stake; and

      2. (b) The Department shall:

         1. (i) Advertise the application on the website of the Department and once a week for 2 weeks in a newspaper published in the county or counties where the proposed lease is to be located;
         2. (ii) Notify the owners of property directly in front of the proposed activity;
         3. (iii) Notify each Chair of an Oyster Committee in the county in which the proposed activity is located; and
         4. (iv) Notify other interested parties that the Department deems appropriate.
   2. (2) Within 30 days of publication of the last advertisement under §C(1) of this regulation, any person who has a specific right, duty, privilege, or interest that is different from that held by the general public and may be adversely affected by the proposed lease may file a petition with the Department protesting the issuance of the lease.
   3. (3) The protest shall be heard in accordance with the requirements of the Administrative Procedure Act under Title 10, Subtitle 2 of the State Government Article.
   4. (4) The Department shall hold a public informational meeting on the issuance of a lease on the request of any person.
   5. (5) After termination of the period prescribed in §C(2) of this regulation for filing a petition or after a final decision dismissing a protest, the Department shall survey the proposed leased area and issue a lease to the applicant.

   6. (6) The Department, as it considers necessary to protect the public health, safety, and welfare, may:

      1. (a) Deny a lease application for reasonable cause; or
      2. (b) Include any conditions in a lease.
4. D. Fees. There are no application or rental fees for a demonstration lease.
5. E. Locations. In addition to restrictions provided in Natural Resources Article, §4-11A-11, Annotated Code of Maryland, a lease may not be located in the Assateague Island National Seashore as described in 16 U.S.C. §459f.

6. F. Prohibited Activities.

   1. (1) Alterations, including adding any type of fill or sediment other than shell to the existing condition of the lease, are not permitted without written permission from the Department.
   2. (2) Shell present in the leased area at the time the lease is issued may not be removed from the leased area without the written permission of the Department.
   3. (3) Permanent structures of any kind may not be placed on the leased area without written permission from the Department.
   4. (4) Shellfish may not be harvested from the leased area for commercial or human consumption purposes.

7. G. Lease Markers and Equipment. A leaseholder shall:

   1. (1) Place a minimum of four poles at the corners of the lease perimeter;
   2. (2) Mark each pole with an 8-inch by 12-inch marker displaying the name of the leaseholder and the lease number;
   3. (3) Maintain and meet any standards for corner marker structures as described by the Department on its website;
   4. (4) Permanently and individually mark all equipment or manmade material used on the lease with the lease number and name of the leaseholder; and
   5. (5) Be responsible and liable for equipment, gear, or aquaculture-related material that has been found adrift or unattended outside the boundaries of the lease area.

8. H. Operators.

   1. (1) The Department shall issue an operator card to the lessee at the time of lease approval.
   2. (2) When one or more individuals are engaged in demonstration activities on the leased area, an individual authorized by the lessee shall be present and in possession of the operator card.
   3. (3) Any individual engaged in demonstration activities on a leased area shall comply with the terms and conditions of the lease agreement for that area.
9. I. Reporting. A leaseholder shall submit to the Department an annual report as required by the Department not later than December 31.
10. J. Surrender of a Lease. A lease may be surrendered by providing written notice to the Department.

Authority: Natural Resources Article, §§4-215, 4-1103, 4-11A-02, 4-11A-04, 4-11A-05, 4-11A-07, 4-11A-08, 4-11A-09, 4-11A-10, 4-11A-11, 4-11A-12, 4-11A-18, and 4-11A-19, 4-11A-23, Annotated Code of Maryland

Effective date:

Regulations .01 and .05 adopted effective October 19, 2009 (36:21 Md. R. 1590)

Chapter revised effective September 6, 2010 (37:18 Md. R. 1214)

Regulation .02B amended as an emergency provision effective July 2, 2011 (38:16 Md. R. 942); emergency expired effective December 29, 2011

Regulation .02B amended effective January 9, 2012 (38:27 Md. R. 1763)

Regulation .02B amended as an emergency provision effective September 13, 2012 (39:20 Md. R. 1303); emergency provision extended to July 9, 2013 (40:3 Md. R. 215); emergency provision expired

Regulation .02B amended effective July 8, 2013 (40:13 Md. R. 1073)

Regulation .03 amended effective April 27, 2015 (42:8 Md. R. 607); November 7, 2016 (43:22 Md. R. 1218); February 11, 2019 (46:3 Md. R. 106)

Regulation .03B, E amended as an emergency provision effective September 13, 2012 (39:20 Md. R. 1303); emergency provision extended to July 9, 2013 (40:3 Md. R. 215); emergency provision expired

Regulation .03B, E amended effective July 8, 2013 (40:13 Md. R. 1073)

Regulation .03B, F amended as an emergency provision effective July 2, 2011 (38:16 Md. R. 942); emergency expired effective December 29, 2011

Regulation .03B, F amended effective January 9, 2012 (38:27 Md. R. 1763)

Regulation .04 amended as an emergency provision effective July 2, 2011 (38:16 Md. R. 942); emergency expired effective December 29, 2011

Regulation .04 amended effective January 9, 2012 (38:27 Md. R. 1763); November 7, 2016 (43:22 Md. R. 1218); April 1, 2024 (51:6 Md. R. 270)

Regulation .04A amended effective April 27, 2015 (42:8 Md. R. 607)

Regulation .04E amended effective March 17, 2025 (52:5 Md. R. 236)

Regulation .04F amended as an emergency provision effective September 13, 2012 (39:20 Md. R. 1303); emergency provision extended to July 9, 2013 (40:3 Md. R. 215); emergency provision expired

Regulation .04F amended effective July 8, 2013 (40:13 Md. R. 1073); December 23, 2013 (40:25 Md. R. 2067)

Regulation .04G adopted as an emergency provision effective September 13, 2012 (39:20 Md. R. 1303); emergency provision extended to July 9, 2013 (40:3 Md. R. 215); emergency provision expired

Regulation .04G adopted effective July 8, 2013 (40:13 Md. R. 1073)

Regulation .04H, I adopted effective December 23, 2013 (40:25 Md. R. 2067)

Regulation .04J adopted effective April 27, 2015 (42:8 Md. R. 607)

Regulation .05 repealed effective February 11, 2019 (46:3 Md. R. 106)

Regulation .05 adopted effective December 11, 2023 (50:24 Md. R. 1040)

Regulation .07 amended as an emergency provision effective July 2, 2011 (38:16 Md. R. 942); emergency expired effective December 29, 2011

Regulation .07 amended effective January 9, 2012 (38:27 Md. R. 1763)

Regulation .07 repealed and new Regulation .07 adopted effective April 27, 2015 (42:8 Md. R. 607)

Regulation .08 adopted as an emergency provision effective September 23, 2013 (40:21 Md. R. 1771); adopted permanently effective November 25, 2013 (40:23 Md. R. 1932)