.08 Oil Transfer License.
A. Oil Transfer License Requirement. Except for a vessel or barge, a person may not transfer oil in the State without an Oil Transfer License issued by the Department.
B. Application Requirements. Before an Oil Transfer License may be issued by the Department, an applicant shall submit to the Department all of the following information:
(1) A completed application on a form provided by the Department;
(2) If applicable, satisfactory evidence that the applicant has implemented or is in the process of implementing:
(a) State and federal plans and regulations to control pollution related to oil, petroleum products, and their byproducts; and
(b) A plan for the abatement of pollution related to oil, petroleum products, and their byproducts when a spill, release, or discharge occurs;
(3) Proof that the applicant is registered with the Maryland Department of Assessments and Taxation and that the person is in good standing with the State at the time the application for an Oil Transfer License is submitted;
(4) Proof of Workers’ Compensation Insurance or, if not required, a certificate of compliance with the Maryland Workers’ Compensation Act; and
(5) Proof of the applicant’s registration with the Comptroller of Maryland’s Motor Fuel Tax Unit or a signed document that registration by the applicant with the unit is not required.
C. License Effective Period. An Oil Transfer License issued by the Department has an effective period of 5 years, unless the license is:
(1) Surrendered, suspended, revoked, or otherwise terminated by the Department; or
(2) Issued by the Department, with reasons stated, with an effective period of less than 5 years.
D. License Renewal.
(1) In addition to satisfying the requirements under §B of this regulation, a licensee applying to renew an Oil Transfer License may not have any tax liabilities with the Comptroller of Maryland.
(2) When a tax liability is identified, the licensee will be notified by the Department and the license renewal process will stop until the liability is resolved.
(3) The licensee shall determine the cause of the tax liability and notify the Department in writing when the liability is resolved.
E. License Cancellation. A licensee that determines they no longer require an Oil Transfer License shall notify the Department in writing within 60 days of making the determination.
F. Oil Transfer Fee.
(1) The Department shall impose a fee on each barrel of oil transferred in the State, with the fee assessed only once at the first point of transfer in the State.
(2) The fee amount is established under Environment Article, §4-411, Annotated Code of Maryland.
(3) The licensee that offloads or onloads oil at the first point of transfer in the State is responsible for paying the fee.
(4) A licensee shall pay the fee on a quarterly basis to the Department not later than the following due dates or, if the payment is received by the Department after a due date, postmarked two days before the following due dates:
(a) First Quarter (July, August, September) — October 31;
(b) Second Quarter (October, November, December) — January 31;
(c) Third Quarter (January, February, March) — April 30; and
(d) Fourth Quarter (April, May, June) — July 31.
G. Reports Required. A licensee, including one that does not transfer oil during one or more quarters identified in §F of this regulation, shall:
(1) Report to the Department the barrels of oil transferred each quarter on forms provided by the Department; and
(2) Submit the completed forms with the fee payment to the Department in accordance with §F of this regulation.
H. The transfer of the following products are exempt from the oil transfer fee and reporting requirements:
(1) Oil in containers of less than 100 gallons capacity; and
(2) Oil products not listed under §I of this regulation.
I. The following oil and petroleum products are subject to the license fee:
(1) Gasoline;
(2) Gasohol, including:
(a) Alcohols denatured with oil; and
(b) Ethanol that is intended to be used as a motor fuel or fuel source;
(3) Kerosene;
(4) Aviation fuels;
(5) Diesel motor fuel, including biodiesel fuel, regardless of whether the fuel is petroleum based;
(6) Heating oil;
(7) Fuel oils, including fuel oil that is blended or mixed with:
(a) Biofuels; or
(b) Processed or re-refined used oil;
(8) Liquid asphalts;
(9) Hydraulic oils;
(10) Lubricating oils; and
(11) Crude oil.
J. Audits.
(1) The Department may perform audits of a report, required under §G of this regulation, submitted by a licensee to ensure the licensee is reporting properly and completely.
(2) Upon the request of the Department, a licensee shall provide records to the Department during an audit in accordance with Regulation .20 of this chapter.
K. Failure to Submit Oil Transfer Fee Payments and Reports.
(1) If a licensee fails to submit an oil transfer fee payment and accompanying report to the Department for a given quarter, the Department shall determine the amount of oil transfer fee due using available information and provide notice of this determination to the licensee liable for payment of the oil transfer fee.
(2) A licensee shall have an opportunity for a contested case hearing if the licensee files a written request with the Department within 30 calendar days of receiving a notice of determination issued under §K(1) of this regulation.
(3) A determination made in accordance with §K(1) of this regulation is considered final, unless:
(a) The licensee liable for the oil transfer fee payment requests a hearing in accordance with §K(2) of this regulation; or
(b) The Department, on its own, redetermines the oil transfer fee amount owed by the licensee liable for the oil transfer fee payment.
(4) The Department shall conduct a contested case hearing in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.
