| (a) The commission, with the approval of the governor,
establishes a minimum royalty of $0.20 ton for sedimentary materials.
The permittee shall pay the minimum royalty or a percent royalty of
8.0% on the average selling price per ton sold calculated on a monthly
basis, whichever is higher.
(1) Where the permittee uses a floating dredge and
barge or does not have access to a scale, measurement of materials
sold may be made in cubic yards and converted into tons according
to industry standard prior to payment.
(2) Payment for materials dredged solely for personal
use may be based on the minimum royalty.
(3) Penalties and interest on delinquencies.
(A) Penalties. Any royalty not paid when due, or any
required affidavit, report, or document not submitted when due, is
delinquent and penalties as provided in this paragraph shall be assessed.
The penalties prescribed by this paragraph shall be assessed beginning
on the 31st day following the due date. Payments remitted before the
31st day are not subject to the provisions of this paragraph.
(i) For royalties due after the effective date of this
section, the department shall add a penalty of 10% of the delinquent
amount or $100, whichever is greater, to any royalty which is more
than 30 days delinquent. An additional penalty of 10% of the amount
owed shall be assessed for each 30-day period that the royalty payment
or portion of the royalty payment is outstanding.
(ii) For each report, affidavit, or document that is
delinquent or incorrect, a penalty of $100 shall be assessed. An additional
penalty of $100 per affidavit, report, or document that is delinquent
or incorrect shall be assessed for each 30-day period that each affidavit,
report, or document remains delinquent or is not corrected.
(B) Interest. Any royalty not paid is delinquent and
shall accrue interest as provided in this subparagraph.
(i) Interest shall accrue on all delinquent royalties
at the rate of 12% per year (simple interest).
(ii) Interest shall begin to accrue 31 days after the
due date.
(b) The commission, with approval of the governor,
establishes a price of $1.25 per cubic yard on all grades of shell
removed from state-owned submerged tidelands. The price of shell will
hereafter be adjusted semiannually, starting October 1, 1981, to reflect
any increase or decrease (percent of change) in the Consumer Price
Index of retail sales as prepared by the Bureau of Labor Statistics,
U.S. Department of Labor (using the National Consumer Price Index,
all urban consumers, 1967 equals 100) except that any adjustment for
the six-month period starting October 1, 1981, will be based upon
the Consumer Price Index statistics compiled for the six months ending
June 30, 1981, and each succeeding six-month period will be adjusted
in the same manner in order to provide permittees advanced notice
of price adjustments, and except that the price of shell per cubic
yard will be rounded off to the nearest whole cent and will not be
adjusted in any six-month period to less than the base price of $1.25
per cubic yard as established in this section.
(c) In addition, 5.0% of all shell dredged from state-owned
submerged tidelands will be delivered to points designated by the
department in Texas bays and spread at permittee's expense for reef
enhancement. Except that when permittee is required to deliver and
spread shell at a point greater than 50 statute miles (computed using
the nearest water route through public navigational channels) from
the dredge site, the director is authorized to adjust the amount of
shell permittee is required to deliver and spread to a quantity less
than 5.0% in order to offset permittee's increased delivery cost for
the distance over 50 miles. Permittee will not be required to pay
for the shell used for reef enhancement.
(d) The department's actual cost of monitoring the
dredging operations from state-owned submerged tidelands, not to exceed
$50,000 per year, will be assessed against each permittee in proportion
to the quantity (percentage of the total) shell removed by each permittee;
provided however the maximum monitoring cost of $50,000 will be adjusted
each fiscal year using the Consumer Price Index (CPI-U) for the preceding
12-month period except that in no event will the maximum monitoring
cost be adjusted below $50,000. The director is authorized to determine
the methods and terms for payment of the monitoring cost.
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| Source Note: The provisions of this §69.121 adopted to be effective February 4, 1997, 22 TexReg 958; amended to be effective April 23, 2001, 26 TexReg 3026; amended to be effective May 9, 2013, 38 TexReg 2768; amended to be effective July 2, 2017, 42 TexReg 3404 |
