SECTION 22. Compensation when title to land is in Commonwealth

If authority or a license is granted by the general court or by the department to a person to build a wharf or other structure upon, or to fill or otherwise occupy, land in tide water, or to build or extend any structure or drive piles, fill land or make any obstruction, encroachment or excavation in, over or upon the waters of any great pond, he shall pay to the commonwealth such compensation for the rights granted in any land the title to which is in the commonwealth as shall be determined pursuant to regulations of the department. The department shall by regulation provide for a method for determination of such compensation which may in the department's discretion be based on either a schedule of rates per square yard of commonwealth tidelands occupied or on an appraisal of the fair market value of the rights granted by the commonwealth, and which may in the department's discretion be assessed either as a lump sum payable in full prior to issuance of the license or as a series of annual payments which shall be required as a condition of the license. This section shall not apply to authority granted to a county, city or town for the construction, widening or maintenance of a bridge constituting a part of a highway.