141-014-0330 Compensation (1) Each lessee or licensee must pay compensation to the Department in an amount based on quantity of material actually removed or used during that reporting period multiplied by the compensation rate in effect at the time of the removal or use. (2) The Department will establish for each lease and license the basis for which payment of compensation shall be calculated and paid, as well as the reporting period. (3) Each lessee and licensee must on a monthly basis or as otherwise required as a term and condition of the lease or license: (a) Report to the Department the amount of material removed or used; and (b) Calculate and submit to the Department the amount of compensation owed to the Department as provided in the lease or license. (4) Unless otherwise agreed to in writing by both the Department and the lessee or licensee: (a) Compensation must be paid on the basis of the reporting period determined by the Department and provided as a term of the authorization; (b) Compensation payments and removal reports must be received by the Department no later than the 20th calendar day after the end of the reporting period during which the material was removed or used; and (c) Removal reports must be submitted to the Department every period, including those reporting periods in which no material was removed or used, or compensation paid. (5) Compensation not paid by the due date will accrue interest at the maximum rate allowed by law from the first day of the reporting period following the end of the reporting period during which the material was removed or used. (6) The compensation to be paid by a lessee or licensee to the Department for material removed or used under a lease or license for calendar year 2008 shall be: (a) $0.63 per cubic yard for material removed from state-owned submerged and submersible land; and (b) $0.71 per cubic yard for state-owned dredged material that has been placed on either land controlled by the Department or land belonging to another person. (7) All sand and gravel leases or licenses in effect at the time the compensation rates indicated in OAR 141-014-0330(6) are adopted will be subject to the new rates upon renewal or redetermination as specified in the lease or license agreement. (8) The minimum compensation rates indicated in OAR 141-014-0330(6) will be adjusted every calendar year based on the annual changes in the United States Department of Labor’s Producer Price Index (Industry Code #1442) for Construction Sand and Gravel. (9) Any increase or decrease resulting from application of the United States Department of Labor’s Producer Price Index (#1442) for Construction Sand and Gravel (or any other index selected by the Department) will be limited to a maximum of 5% per year. Compensation rates will not be adjusted below those rates established in OAR 141-014-0330(6). (10) Should the United States Department of Labor’s Bureau of Labor Statistics discontinue publishing this index, the Department will select another index to use. (11) Pursuant to ORS 274.590, the Department may cooperate with, and enter into agreements with officials of the State of Washington concerning the contracting for, receipt and collection of compensation for material removed or used from the state-owned submerged and submersible land underlying the Columbia River. Consequently, notwithstanding the provisions of OAR 141-014-0330(6) through (10) of these rules, the Department may establish a compensation rate for material removed or used from Oregon’s state-owned submerged and submersible land underlying the Columbia River that is equal to the compensation established by the State of Washington for the removal of rock, sand, gravel and silt derived from that state’s submerged and submersible land underlying the Columbia River. Statutory/Other Authority: ORS 273.551, 274.525, 274.530, 274.550 & 274.560 Statutes/Other Implemented: ORS 274 .525 & 274 .550 History: DSL 2-2008, f. & cert. ef. 10-15-08