BILOXI — A legal battle is underway over Mississippi’s plan to lease most of its public oyster reefs to private companies. 

A group of commercial fishermen has filed a lawsuit in Harrison County Chancery Court, seeking to block the Mississippi Department of Marine Resources from finalizing the leases. 

The case, filed on May 1 by Mississippi Commercial Fisheries United and 20 individual oystermen, argues the leasing program threatens public access, violates constitutional protections and unfairly favors wealthy investors at the expense of working fishermen. 

What is the state trying to do? 

MDMR plans to lease up to 80% of the state’s historically public oyster reefs to private businesses.

Applications are scored on factors such as reef development experience, oyster cultivation and harvesting history, FDA registration, the amount of reef area requested and financial stability.  

According to MDMR, the program is intended to speed up reef restoration following years of damage caused by natural and human-caused disasters — including the opening of the opening of the Bonnet Carré Spillway in 2019, which flooded the Mississippi Sound with freshwater and decimated oyster beds.  

MDMR has said the state cannot afford to rebuild the reefs alone. The leasing program, they argue, allows private companies to supply the funding and labor needed to revive the ecosystem. Under the program, leaseholders are required to actively manage their reef areas, submit annual reports and meet restoration benchmarks — or they risk losing access.

Why are fishermen suing? 

The plaintiffs claim the leasing program would “irreparably harm the reefs, the plaintiffs (fishermen), the coastal way of life of all coastal communities and the people of Mississippi.” 

At the center of the lawsuit is the issue of access. The fishermen argue the plan violates constitutional protections that guarantee their right to fish. Turning over the majority of reefs to private leaseholders, they said, would block them from waters they’ve depended on for generations. 

They also question how public resources are being managed. Because oyster reefs are part of Mississippi’s public trust tidelands — areas held by the state for the benefit of all residents — the lawsuit claims prioritizing applicants based on financial strength violates that principle. In their view, awarding leases to the highest bidder undermines fair access to a shared natural resource. 

Another concern raised in the suit is oversight. Fisherman allege that MDMR and its executive director, Joe Spraggins, delegated key responsibilities — including the rulemaking and applicant evaluation — to a private accounting firm. The plaintiffs argue no law allows a third party to create policy or make eligibility decisions on behalf of the agency.

The lawsuit also raises possible antitrust issues. Because applicants must prove they have the financial capacity to restore reefs, fishermen claim small, independent harvesters are being priced out. If leases are awarded under the current rules, the suit argues, it could consolidate the seafood market under a few large companies — reducing competition, cutting jobs and leaving less room for traditional oystermen. 

What’s the debate about public notice? 

During an MDMR meeting in January, commercial fishermen raised concerns about the state’s outreach process. The same concerns are outlined in the lawsuit, which argues the leasing plan lacked transparency and failed to inform the communities most affected. 

The lawsuit claims Spraggins had agreed to hold a public hearing but failed to follow through. RHCJC News verified that MDMR posted the rules online and published a notice in The Sun-Herald newspaper on May 26, 2024. The agency also provided screenshots of press releases and proof of publication on its website to show that public notice was given. 

Fishermen argue that publishing notice in the Biloxi-based newspaper wasn’t enough to reach working harvesters across the coast. As a result, they say, no formal objections were recorded during the June 2024 public comment period. 

In January, Spraggins acknowledged communication gaps and said the agency would improve outreach in the future. When asked by RHCJC News about specific changes, the agency declined to comment. 

How did we get here?  

Tensions over the leasing plan have been growing for months. In December 2024, dozens of commercial fishermen packed a Mississippi Advisory Commission on Marine Resources meeting to protest the proposal. 

“You’re giving 100% to the leaseholder, so the fishermen have no voice in it anymore. None,” said John Livings, a commercial fisherman from Pass Christian, in January.

He and others argued the application process favors outside investors and excludes local working fishermen. 

“We still own the boats, the gear, all the expense — you still have that. You just make half the money,” Livings said. 

Ryan Bradley, executive director of Mississippi Commercial Fisheries United, told the commission the public wasn’t properly notified about the changes. Even the Oyster Task Force — a formal advisory group that includes fishermen — was not consulted before the rules were finalized. 

“Did we convene that Oyster Task Force to let them vet out some of these issues? I don’t recall that we did,” Bradley said. 

MDMR has said it followed legal notice requirements by publishing updates in The Sun-Herald and on its website. But fishermen argue those notices didn’t reach many of the communities most affected. 

What happens next?

The final application window for reef leases closed in late 2024. According to the lawsuit, MDMR could announce lease awards at any time. 

That could change if the court grants a temporary restraining order. If approved, the order would pause the program while the court determines whether the plan violates the state constitution or statutory protections. 

A longer-term injunction could follow, potentially halting the leasing system altogether or forcing the state to revisit its rules with broader community input.