Cal. Code Regs. Tit. 14, § 165.5 Lease of Kelp Beds For Exclusive Harvest of Macrocystis and Nereocystis

• Library: California Code of Regulations
• Edition: 2023
• Currency: Current through Register 2023 Notice Reg. No. 52, December 29, 2023
• Citation: Cal. Code Regs. Tit. 14, § 165.5
• Year: 2023

(a) The commission may lease to any person the exclusive privilege to harvest kelp in any designated kelp bed or beds, or part thereof described in subsection (k). In this section, kelp means giant kelp, bull kelp, or both.

(b) A current list of kelp beds considered by the commission to be available for leasing may be obtained through written request to the department's Marine Region at 20 Lower Ragsdale Drive, Suite 100, Monterey, CA 93940. Any person desiring to lease the exclusive privilege of harvesting kelp shall make a written application to the Fish and Game Commission by postal delivery to P.O. Box 944209, Sacramento, CA 94244-2090. The application for kelp bed lease shall include:

(1) The number of the designated kelp bed or beds as shown in subsection (k), a description of the kelp bed or portion of the kelp bed requested, and the designated number of square miles in each bed or portion thereof.

(2) A minimum deposit of $2,565 per square mile for kelp beds lying south of Point Arguello and $1,368 per square mile for kelp beds lying north of Point Arguello. The deposit shall be made payable to the California Department of Fish and Wildlife and submitted with the lease application to the Fish and Game Commission at the address in subsection (b). The deposit shall be returned to the applicant if a lease is not executed.

(3) The specified bid amount. The bid process is defined in subsection 14undefined165.5(d).

(4) Copy of business license.

(5) A detailed kelp harvest plan. Kelp harvest plans must be updated and submitted to the commission for approval every five years Requirements of a kelp harvest plan are defined in subsection 14undefined165(c)(8).

(6) Applicants for available lease only kelp beds in the 301-312 series shall, in addition to the above requirements, submit evidence of a scientifically acceptable survey of the requested kelp bed, conducted within one year of the date of the application, showing the extent of the kelp bed and the quantity (biomass) of kelp present. Evidence of such a survey must be submitted annually prior to beginning harvest. Harvest of bull kelp from leased beds shall be limited to not more than 15 percent of the bull kelp biomass revealed by the survey.

(c) Lease only administrative kelp beds 308, 309, and 312 are temporarily closed and cannot be leased through January 1, 2026. Beds 308, 309, and 312 are available for lease on or after January 2, 2026.

(d) The department shall evaluate the submitted application and provide its evaluation to the commission. Kelp leases may be awarded to applicants determined by the commission to possess the capabilities to harvest and utilize kelp in a manner beneficial to the state.

(1) In case more than one application is received for the lease of a specified kelp bed or beds, the lease shall be awarded to the highest qualified bidder.

(2) Bids tendered for the exclusive right to harvest kelp from designated kelp beds will be for the dollar amount of royalty to be paid on each wet ton of kelp harvested. The minimum acceptable bid will be for a royalty rate of no less than $1.71 per wet ton of kelp harvested.

(3) The commission may reject any or all applications for the lease of the exclusive privilege to harvest kelp, if it deems the rejection to be in the public interest.

(e) If the specified kelp harvesting area applied for is found to be available for lease, and that the lease would be in the public interest, the commission shall have legal notices published in a newspaper of general circulation in each county where the kelp bed, or any part thereof, is located. The department shall, in addition, notify by mail all current holders of kelp harvesting licenses that a kelp lease is being considered.

(f) Upon termination of a kelp bed lease for any reason, the commission shall notify all current holders of kelp licenses of the availability of such bed(s) for lease.

(g) Kelp bed leases may be awarded for a maximum term of 20 years.

(h) The royalty rate for kelp harvested from leased kelp beds shall be no less than $1.71 per wet ton of kelp harvested from such beds. A nonrefundable advance payment computed on the basis of the harvest of 800 tons of kelp annually times the bid royalty rate per square mile for kelp beds located north of Point Arguello and the harvest of 1,500 tons of kelp annually times the bid royalty rate per square mile for beds lying south of that point is due and payable to the department on January 1 each year. Kelp harvested from each bed during the calendar year will be credited against the advance payment at the specified royalty rate until the deposit has been depleted. Kelp harvested from each bed in excess of the amount covered by the advance deposit shall be assessed at the basic royalty rate established by subsection 14undefined165(c)(6)(A).

(i) Each kelp lease shall specify a period prior to expiration when renewal of the lease may be requested by lessee. If during the notification period the lessee successfully demonstrates to the commission that all conditions of the lease have been met, the lessee shall have a prior right to renew the lease on terms agreed upon between the commission and the lessee. If terms of a lease renewal are not agreed upon prior to termination of a lease agreement, the commission shall advertise for bids on the individual kelp beds comprising the lease. If a request for renewal is not made during the specified period by the lessee, the commission shall advertise for bids on the individual kelp beds comprising the lease.

(j) Notwithstanding the provisions of subsections (g) and (i), at any time during the term of a lease, a lessee may notify the commission of its desire to enter into a new lease. If the lessee can successfully demonstrate to the commission that all conditions of its lease have been met and that a new lease would be in the best interest of the state, a new lease may be drawn on terms agreed upon between the two parties, provided a new lease is negotiated for an additional period not to exceed 20 years.

(k) Administrative kelp beds are defined as follows: kelp bed number, designation, area (approximate square miles of kelp canopy within a kelp bed based on historic survey data), and boundary descriptions. Kelp bed designations are defined as follows: open -- kelp bed is open to all kelp harvesting, and leases cannot be issued; closed -- kelp bed is closed to all kelp harvesting; lease only -- kelp bed is closed to all kelp harvesting unless an exclusive lease is obtained; and leasable -- kelp bed is open to kelp harvesting until the bed is leased and, once leased, can only be harvested by the lessee. It is the responsibility of the potential harvester to contact the department to ensure leasable beds are not leased before harvest occurs. The grand total for all administrative kelp beds equals 74.17 square miles. All geographic coordinates listed use the North American Datum 1983 (NAD83) reference datum:

(1) Mainland administrative kelp beds U.S./Mexico Border to Pt. Arguello (Total 19.07 square miles) (A) Administrative kelp bed 1. Open. 0.20 square miles. This bed extends from the U.S./Mexico Border to the southern tip of San Diego Bay, defined as the area bounded by the mean high tide line and straight lines connecting the following points in the order listed except where noted 32° 32.063' N. lat. 117° 07.431' W. long.; thence westward along the U.S./Mexico border to: 32° 31.847' N. lat. 117° 11.018' W. long.; thence northward along the three nautical mile offshore boundary to 32° 35.979' N. lat. 117° 11.601' W. long.; and 32° 35.979' N. lat. 117° 08.010' W long. (B) Administrative kelp bed 2. Open. 0.10 square miles. This bed extends from the southern tip of San Diego Bay to the southern tip of Point Loma, defined as the area bounded by the mean high tide line and straight lines connecting the following points in the order listed except where noted 32° 35.979' N. lat. 117° 08.010' W. long.; 32° 35.979' N. lat. 117° 11.601' W. long.; thence northwestward along the three nautical mile offshore boundary to 32° 39.189' N. lat. 117° 18.171' W. long.; and 32° 39.891' N. lat. 117° 14.559' W long. (C) Administrative kelp bed 3. Leasable. 2.58 square miles. This bed extends from the southern tip of Point Loma to the south jetty of Mission Bay, defined as the area bounded by the mean high tide line and straight lines connecting the following points in the order listed except where noted 32° 39.891' N. lat. 117° 14.559' W. long.; 32° 39.189' N. lat. 117° 18.171' W. long.; thence northward along the three nautical mile offshore boundary to 32° 45.492' N. lat. 117° 19.169' W. long.; 32° 45.364' N. lat. 117° 15.501' W. long.; and 32° 45.398' N. lat. 117° 15.221' W. long. (D) Administrative kelp bed 4. Leasable. 2.53 square miles. This bed extends from the south jetty of Mission Bay to Scripps Pier, defined as the area bounded by the mean high tide line and straight lines connecting the following points in the order listed except where noted: 32° 45.398' N. lat. 117° 15.221' W. long.; 32° 45.364' N. lat. 117° 15.501' W. long.; 32° 45.492' N. lat. 117°...