Judges: RICHARD P. IEYOUB
Filed Date: 4/19/1993
Status: Precedential
Modified Date: 7/5/2016
Dear Mr. Herring:
You have asked for an opinion from this office clarifying Opinion Number 87-172 which opined that the Department of Wildlife and Fisheries is not authorized to impose a royalty on any sand or fill material that is removed from state waterbottoms but is not placed "in commerce" since there is, technically, no severance. See: Traigle v. Lafayette Airport Commission,
You have now advised that, instead of charging for the service of removal, a dredging contractor has billed the Department of Transportation and Development specifically for the product itself. Under these circumstances, you have asked this office whether a royalty is due.
It is the opinion of this office that a royalty is due at any time sand and fill material is sold on the open market. The fact that it is being purchased by an agency of the State of Louisiana is of no moment. If the contractor receives the full purchase price for the sand and fill material from the state agency, then he owes the royalty. See: La. R.S.
Consequently, when the bid specifications and contract provide for the public entity to purchase sand and fill material from a contractor, the Department of Wildlife and Fisheries is entitled to a royalty payment.
If we may be of further service in this matter, please advise.
Very truly yours,
RICHARD P. IEYOUB Attorney General
BY: DAVID C. KIMMEL Assistant Attorney General
DCK/jb