141-014-0350 General Lease and License Conditions (1) All leases are exclusive and will only be offered through a competitive bid auction procedure except when: (a) The applicant is the preference right holder of the area for which an application is received; (b) A preference right holder accepts an offer by the Department to enter into a lease for the state-owned submerged and submersible land fronting their upland; or (c) The Director determines that the best interests of the Department and the policies provided in OAR 141-014-0220 are served by offering the lease to the applicant. (2) The Department reserves the right to modify the terms and conditions of its standard lease or license if, in the judgment of the Department and concurrence of the Department of Justice, such changes are required given the size and nature of the proposed removal, use or sale of material or the risks associated therewith. (3) The maximum term for a lease will be 10 calendar years; licenses will be issued for a term of less than three calendar years. (4) A lease or license issued by the Department must be on a form supplied by the Department that has been approved by the Department of Justice for legal sufficiency pursuant to ORS 291.045 to 291.047 (Public Contract Approval). (5) Each lessee and licensee must maintain and make available for audit by the Department adequate records and accounts which accurately reflect the amount of material removed or used from the authorized area. (6) State-owned submerged and submersible land, regardless of whether it is included in an authorized area, must remain available and open to the public for commerce, navigation, fishing and recreation unless restricted or closed to public entry by the State Land Board. A lessee or licensee may request the Department to close the authorized area to public entry or restrict recreational use by the public on all or portions of the authorized area to protect persons or property from harm arising from, or in connection with the removal or use of material. (7) A lessee or licensee may restrict public use of lessee or licensee-owned property or structures within the authorized area. (8) The Department or its authorized representative(s) will have the right to enter into and upon the authorized area at any time for the purposes of inspection or management. (9) A lessee or licensee must dispose of all waste in a proper manner and shall not permit waste, debris, garbage or other refuse to either accumulate within the authorized area or be discharged into the waterway unless so authorized by the Department of Environmental Quality. A lessee’s or licensee’s failure to comply with this provision will be considered a material default of the lease or license. (10) Except as authorized by the lease or license, a lessee or licensee must not cut, destroy or remove, or permit to be cut, destroyed or removed any vegetation (except for noxious weeds) that may be upon the authorized area without the prior written authorization of the Department. The lessee or licensee will promptly report to the Department the cutting or removal of vegetation by other persons. (11) A lessee or licensee must, in accordance with the terms and conditions of their lease or license, conduct all operations within the authorized area in a manner that conserves fish and wildlife habitat, protects water quality, and does not contribute to insect or animal infestation, soil erosion or the growth of noxious weeds. (12) A lessee or licensee must maintain all buildings; removal, processing and sales-related machinery and equipment; docks; and similar structures and improvements located within the authorized area in a good state of repair and workmanlike manner as determined by the Department. (13) The Department may require that an applicant for a lease or license to remove or use material present evidence to the Department prior to removal or use of any material that they have obtained: (a) All authorizations required by the applicable local, state, and federal governing bodies to undertake the removal or use of the material; (b) Any authorization that may be required to obtain access or to cross land belonging to a person other than the Department to remove or use state-owned dredged material placed on that land; and (c) A surety bond or comprehensive or commercial general liability insurance, or both, in an amount required by the Department. (14) The holder of a lease or license must indemnify the State of Oregon and the Department of State Lands against any claim or costs arising from or related to a release of a hazardous substance on or from the authorized area. (15) An authorization issued by the Department will be conditional and not valid until: (a) The holder has received all other authorizations required by the Department (such as a Removal-Fill Permit pursuant to OAR 141-085-0005 through 141-085-0176) and other local, state, and federal governing bodies to undertake the removal or use of the material; and (b) The Department has received all fees and compensation specified in these rules, and evidence of any required insurance and surety bond. (16) An applicant for a lease or license is responsible for obtaining any authorization that may be required to obtain access to, or to cross land belonging to a person other than the Department to remove or use state-owned dredged material placed on that land. (17) The Department may, at its discretion, deny a lease or license application or lease renewal to remove or use material if the applicant’s financial status, and past business and management practices indicate that the applicant may not: (a) Be able to fully meet the terms and conditions of a lease or license offered by the Department; or (b) Use the land applied for in a way that meets the provisions of OAR 141-014-0220. (18) The Department may: (a) Conduct field inspections to determine if the removal or use of material is authorized by, or conforms with the terms and conditions of a lease or license; and, if not, (b) Pursue whatever remedies are available under law and OAR 141-014-0410 to ensure that the unauthorized removal or use of material is either ceased or brought into compliance with the requirements of these rules. 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