If, after completing the processes provided in OAR 141-014-0240(1) through (3) and 141-014-0250(1) through (5), the Department decides to
offer a lease for the removal of material from state-owned submerged and
submersible land, the Department will, pursuant to the requirements of ORS
274.040, offer a preference
right to lease to the eligible party as defined in OAR 141-014-0210(30) and
(31), hereafter referred to as the preference right holder. The Department will
take the following steps to offer this preference right.
(1) If the proposed lease area consists of a
single parcel, or two or more contiguous parcels owned by the same person, the
Department will extend the boundaries of the single parcel or combined group of
single-ownership parcels perpendicular to the thread of the stream creating a
single lease parcel that fronts and abuts the upland ownership.
(2) If the proposed lease area consists of
parcels having different owners, the Department will subdivide the requested
lease area into smaller parcels by extending lines perpendicular to the thread
of the stream from the boundaries of, or within the boundaries of the adjacent
riparian tax lot so that there is a separate lease parcel for each parcel of
property that fronts and abuts the lease area.
(3) In accordance with the proposed use(s),
the Department will calculate in a manner consistent with OAR
141-014-0320 and
141-014-0330 a minimum annual compensatory payment for each lease parcel. The
minimum bid or compensation amount shall be established by the Department based
on the:
(a) Compensation rate in effect at the
time that the application is received by the Department; and
(b) The amount of material that the applicant
states on their application they intend to remove or use each year for the term
of the lease requested.
(4) The Department will notify each
preference right holder in writing that a lease application has been approved
by the Department and provide 30 calendar days from the date on the letter of
notification for the preference right holder to exercise their preference right
to take the lease at the established minimum annual compensatory
payment.
(5) If the preference
right holder has accepted the offer of a preference right to lease and has
executed the lease form and all other documents and remitted the required
minimum annual lease rental payment within the required 30 calendar day period,
the Department will execute the lease.
(6) If the preference right holder does not
exercise the preference right to take a lease applied for by another person,
the Department will prepare and publish an advertisement for bids pursuant to
ORS
274.040 and hold a public
auction pursuant to OAR
141-014-0290. The highest qualified bidder will be
awarded the lease. The minimum bid amount will be set by the
Department.
