FISH AND BOAT COMMISSION [58 PA. CODE CH. 51] Administration [26 Pa.B. 2792] The Fish and Boat Commission (Commission) proposes to adopt Chapter 51, Subchapter J (relating to royalties for sand and gravel permits). The Commission is publishing these additions as a notice of proposed rulemaking under the authority of 30 Pa.C.S. (relating to the Fish and Boat Code) (code). The proposed regulations deal with adjustments to the royalty rates for merchantable sand and gravel extracted from Commonwealth waters.
A. Effective Date
These proposed regulations will, if approved on final rulemaking, go into effect on October 1, 1996, or upon publication of an order adopting the regulations, whichever occurs later.
B. Contact Person
For further information on the proposed regulations, contact Dennis Guise, Chief Counsel, (717) 657-4525, P. O. Box 67000, Harrisburg, PA 17106-7000.
C. Statutory Authority
These proposed regulations are published under the statutory authority of section 503(c) of the Conservation and Natural Resources Act (CNRA) (71 P. S. § 1340.503(c)).
D. Purpose and Background
There are six companies that currently dredge material from the navigable waters of this Commonwealth and pay royalties under section 1808(d) of The Administrative Code of 1929 (71 P. S. § 468(d)). Royalties from sand and gravel extracted from Commonwealth waters are paid to the Fish Fund, which is administered under Chapter 5 of the code (relating to fiscal affairs).
Current royalty rates for merchantable sand and gravel extracted from Commonwealth waters were set in 1970 at 10¢ per adjusted dry ton of 2,000 pounds, or alternatively, 15¢ per cubic yard based on 3,000 pounds per adjusted dry weight for usable and merchantable sand or gravel, or both, or other minerals, or both, extracted, but in any event an amount of at least $1,000 per year. When the royalty rates were established in 1970, the royalty payment of 10¢ per adjusted dry ton or 15¢ per cubic yard was about 6% of the selling price of the dredged material. Section 503(c) of the CNRA provides that the Commission may by regulation, with the concurrence of the Department of Environmental Protection (DEP), adjust the amount of the royalty payments per ton or cubic yard of usable or merchantable sand or gravel extracted from Commonwealth waters.
E. Summary of Proposal
The Commission is seeking public comment on proposed regulations that would increase the sand and gravel royalties to 6% of the average Pennsylvania Free On Board price of the material or 25¢ per dry ton/37.5¢ per cubic yard, whichever is greater (but at least $1,000 per year).
F. Fiscal Impact
The proposed regulations will have no adverse fiscal impact on the Commonwealth or its political subdivisions. The proposed regulations, however, will impose new costs on the private sector. These costs will total approximately $300,000 to $600,000 per year for all businesses engaged in dredging.
G. Paperwork
The proposed regulations will not increase paperwork and will create no new paperwork requirements.
H. Public Comments
Interested persons are invited to submit written comments, objections or suggestions about the proposed regulations to the Executive Director, Fish and Boat Commission, P. O. Box 67000, Harrisburg, PA 17106-7000, within 30 days after publication of this notice in the Pennsylvania Bulletin.
PETER A. COLANGELO,
Executive DirectorFiscal Note: 48A-56. No fiscal impact; (8) recommends adoption.
Annex A TITLE 58. RECREATION PART II. FISH AND BOAT COMMISSION Subpart A. GENERAL PROVISIONS CHAPTER 51. ADMINISTRATIVE PROVISIONS Subchapter J. ROYALTIES FOR SAND AND GRAVEL PERMITS Sec.
51.91. Authority. 51.92 Royalty rates § 51.91. Authority.
Under section 503(c) of the Conservation and Natural Resources Act (71 P. S. § 1340.503(c)), the Commission, with the concurrence of the Department of Environmental Protection, is authorized to adjust the amount of royalty payments per ton or cubic yard of usable or merchantable, or both, sand or gravel, or both, extracted from Commonwealth waters.
§ 51.92. Royalty rates.
(a) Persons holding permits granting them nonexclusive rights and privileges of dredging, excavating, removing and carrying away merchantable sand and gravel under agreements between the permittees and the Department of Environmental Protection (DEP) shall pay royalties equal to the greater of one of the following amounts:
(i) One thousand dollars per year.
(ii) Twenty-five cents per adjusted dry ton of 2,000 pounds or 37 1/2¢ per cubic yard of 3,000 pounds, adjusted dry weight of merchantable sand and gravel or other merchantable material which is removed.
(iii) Six percent of the average Pennsylvania Free On Board (F.O.B.) price of the material, as determined by the Commission, after consultation with DEP.
(b) On or before______ (Editor's Note: The blank refers to the effective date of adoption of this proposal), the Commission, after consultation with DEP will determine the average Pennsylvania F.O.B. price applicable to the remainder of the year in which this subchapter takes effect for the materials to be extracted. The Commission will notify permittees of the average Pennsylvania F.O.B. price.
(c) On or before December 1 of each year, the Commission, after consultation with DEP, will determine the average Pennsylvania F.O.B. price applicable to the following year for the materials to be extracted. The Commission will notify permittees of the average Pennsylvania F.O.B. price.
[Pa.B. Doc. No. 96-957. Filed for public inspection June 14, 1996, 9:00 a.m.]
