Louisiana under-prices its oyster leases and loopholes in state law have allowed individuals to exceed the limits, according to a performance review of the state Wildlife and Fisheries Commission conducted by the Louisiana Legislative Auditor.

The state could generate $1.29 million in additional revenue by increasing the oyster lease rate from $2 an acre to the $5.20 per acre average of five other states that harvest Eastern oysters. Legislators in 1902 set the lease rate at $1 per acre per year. In 1980, the Wildlife and Fisheries Commission, which manages the state’s water bottoms, put the lease rate at $2 per acre. Louisiana’s lease rate has not changed since 1980.

Louisiana leaseholders produced more than 10,000 pounds of oysters for restaurants and seafood markets for a total market value of $40.6 million in 2013, according to the audit. Louisiana leads the nation in oyster production.

Auditors also found that 36 people — using different corporations and partnerships — were able to circumvent state limitations of 2,500 acres leased to control more than half of the available water bottoms. That works out to 213,564 acres, or 53.1 percent or 402,579 acres currently being leased.

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