RULES AND REGULATIONS
Title 58—RECREATION
FISH AND BOAT COMMISSION
[ 58 PA. CODE CH. 51 ]
General Provisions; Administrative Provisions
[51 Pa.B. 426]
[Saturday, January 23, 2021]The Fish and Boat Commission (Commission) amends Chapter 51 (relating to administrative provisions). The Commission is publishing this final-form rulemaking under the authority of 30 Pa.C.S. (relating to Fish and Boat Code) (code). The amendments update the Commission's regulations concerning royalty rates for sand and gravel permits.
A. Effective Date
This final-form rulemaking will go into effect upon publication in the Pennsylvania Bulletin.
B. Contact Person
For further information on this final-form rulemaking, contact Wayne Melnick, Esq., P.O. Box 67000, Harrisburg, PA 17106-7000, (717) 705-7810. This final-form rulemaking is available on the Commission's web site at www.fishandboat.com.
C. Statutory Authority
The amendments to § 51.92 (relating to royalty rates) are published under the statutory authority of section 503(c) of the Conservation and Natural Resources Act (CNRA) (71 P.S. § 1340.503(c)).
D. Purpose and Background
The specific purpose and background of the amendments are described in more detail under the summary of changes.
E. Summary of Changes
Under section 503(c) of the CNRA, the Commission, with the concurrence of the Department of Environmental Protection (Department), is authorized to adjust the amount of royalty payments per ton or cubic yard of usable or merchantable, or both, sand or gravel, or both, extracted from Commonwealth waters.
There are four companies currently maintaining permits which allow the dredging of material from navigable waters of this Commonwealth. Historically, royalty rates were set in 1970 and involved establishing a flat rate of $0.10 per adjusted dry ton that was about 6% of the selling price. The rate was adjusted $0.05 each year from 1998 to 2001 culminating in $0.30 per dry ton. Between January 1, 2002, and December 31, 2010, a variable calculation using the change in the producer price index (PPI) for sand and gravel from the base year (2002) was used. This was an administratively burdensome process that required the carry forward calculations from 2002 with annual adjustments to make the Commission whole due to the timing of PPI rate releases.
In 2010, dredger representatives, the Department, and the Commission simplified the process into its current configuration using a straightforward calculation with a fair rate that multiplied the immediately preceding year's published price, average value, dollars per metric ton (converted to U.S. ton) for the commodity sand and gravel in the United States Geological Survey, Mineral Commodity Summary per dry ton, provided that the rate per dry ton is not less than $0.48. This straightforward approach removed any ambiguity in the rate setting process and has been successful for the past decade.
As such, the current royalty rate schedule, which was adopted in 2011 and is set forth in the Commission's regulations at § 51.92, expired on December 31, 2020. The Commission and four representatives from the sand and gravel dredging industry have unanimously agreed to extend the previous fair and equitable process for setting royalty rates for the 10-year period of January 1, 2021, through December 31, 2030.
The Commission therefore amends § 51.92 to read as set forth in the proposed rulemaking published at 50 Pa.B. 3894 (August 1, 2020).
F. Paperwork
This final-form rulemaking will not increase paperwork and will not create new paperwork requirements.
G. Fiscal Impact
This final-form rulemaking will have no adverse fiscal impact on the Commonwealth or its political subdivisions.
H. Public Comments
A notice of proposed rulemaking was published at 50 Pa.B. 3894. The Commission did not receive any public comments regarding the proposal.
Findings
The Commission finds that:
(1) Public notice of intention to adopt the amendments adopted by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P.L. 769, No. 240) (45 P.S. §§ 1201 and 1202), known as the Commonwealth Documents Law, and the regulations promulgated thereunder, 1 Pa. Code §§ 7.1 and 7.2 (relating to notice of proposed rulemaking required; and adoption of regulations).
(2) A public comment period was provided and no comments were received.
(3) The adoption of the amendments of the Commission in the manner provided in this order is necessary and appropriate for administration and enforcement of the authorizing statutes.
Order
The Commission, acting under the authorizing statutes, orders that:
(A) The regulations of the Commission, 58 Pa. Code Chapter 51, are amended by amending § 51.92 to read as set forth at 50 Pa.B. 3894.
(B) The Executive Director will submit this order and 50 Pa.B. 3894 to the Office of Attorney General for approval as to legality and form as required by law.
(C) The Executive Director shall certify this order and 50 Pa.B. 3894 and deposit them with the Legislative Reference Bureau as required by law.
(D) This order shall take effect upon publication in the Pennsylvania Bulletin.
TIMOTHY D. SCHAEFFER,
Executive DirectorFiscal Note: Fiscal Note 48A-298 remains valid for the final adoption of the subject regulation.
[Pa.B. Doc. No. 21-107. Filed for public inspection January 22, 2021, 9:00 a.m.]
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