[Federal Register: August 24, 2006 (Volume 71, Number 164)]
[Proposed Rules]
[Page 50012-50025]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24au06-20]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 622
[Docket No. 060731206-6206-01; I.D. 072806A]
RIN 0648-AS67
Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic;
Reef Fish Fishery of the Gulf of Mexico; Amendment 26
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Proposed rule; request for comments.
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[[Page 50013]]
SUMMARY: NMFS issues this proposed rule that would implement Amendment
26 to the Fishery Management Plan for the Reef Fish Fishery of the Gulf
of Mexico (FMP). Amendment 26 would establish an individual fishing
quota (IFQ) program for the commercial red snapper sector of the reef
fish fishery in the Gulf of Mexico. Initial participants in the IFQ
program would receive percentage shares of the commercial quota of red
snapper based on specified historical landings criteria. The percentage
shares of the commercial quota would equate to annual IFQ allocations.
Both shares and IFQ allocations would be transferable. The intended
effect of this rule is to manage the commercial red snapper sector of
the reef fish fishery to preserve its long-term economic viability and
to achieve optimum yield from the fishery.
DATES: Written comments must be received on or before September 28,
2006.
ADDRESSES: You may submit comments on the proposed rule by any of the
following methods:
E-mail: 0648-AS67.Proposed@noaa.gov. Include in the
subject line the following document identifier: 0648-AS67.
Federal e-Rulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: Phil Steele, Southeast Regional Office, NMFS, 263
13th Avenue South, St. Petersburg, FL 33701.
Fax: 727-824-5308; Attention: Phil Steele.
Copies of Amendment 26, which includes a supplemental environmental
impact statement (SEIS), a regulatory impact review (RIR), and an
initial regulatory flexibility analysis (IRFA), may be obtained from
the Gulf of Mexico Fishery Management Council, 2203 N. Lois Avenue,
Suite 1100, Tampa, FL 33607; telephone: 813-348-1630; fax: 813-348-
1711; e-mail: gulfcouncil@gulfcouncil.org. In addition, copies of the
final SEIS, a revised RIR, and a revised IRFA, prepared by NMFS are
also available from the Council at the address above. Copies of all of
these documents may also be downloaded from the Council's website at
http://www.gulfcouncil.org.
Comments regarding the burden-hour estimates or other aspects of
the collection-of-information requirements contained in this proposed
rule may be submitted in writing to Jason Rueter at the Southeast
Regional Office address (above) and to David Rostker, Office of
Management and Budget (OMB), by e-mail at David_Rostker@omb.eop.gov,
or by fax to 202-395-7285.
FOR FURTHER INFORMATION CONTACT: Phil Steele, telephone 727-824-5305;
fax 727-824-5308; e-mail Phil.Steele@noaa.gov.
SUPPLEMENTARY INFORMATION: The reef fish fishery of the Gulf of Mexico
is managed under the FMP. The FMP was prepared by the Gulf of Mexico
Fishery Management Council (Council) and is implemented through
regulations at 50 CFR part 622 under the authority of the Magnuson-
Stevens Act.
Background
A red snapper individual transferable quota (ITQ) program, proposed
in Amendment 8 to the FMP and approved by NMFS in 1995, was never
implemented because of action taken through the 1996 Sustainable
Fisheries Act to place a moratorium on the development or
implementation of new ITQ programs until October 1, 2000. The Council
and commercial fishermen remained concerned about the continuing
problems associated with overcapacity in the fishery and the adverse
impacts associated with the derby fishery, i.e., the competitive race
for available fish. This proposed rule would implement an IFQ program
to address these issues.
IFQ Program
Scope
The provisions of this IFQ program would apply to Gulf red snapper
in or from the Gulf EEZ and, for a person aboard a vessel with a Gulf
red snapper IFQ vessel endorsement or for a person with a Gulf red
snapper IFQ dealer endorsement, these provisions would apply to Gulf
red snapper regardless of where harvested or possessed.
Duration
The IFQ program would remain in effect until it is modified or
terminated; however, the program would be evaluated by the Council
every 5 years.
Electronic System Requirements, Account Setup, and Information
The administrative functions associated with this IFQ program,
e.g., registration and account setup, landing transactions, and
transfers, are designed to be accomplished online; therefore, a
participant would have to have access to a computer and Internet access
and set up an appropriate IFQ online account to participate. Assistance
with online functions would be available from IFQ Customer Service by
calling 1-866-425-7627 Monday through Friday between 8 a.m. and 4:30
p.m. eastern time.
The IFQ program would provide for use of paper-based components for
basic required functions as a backup only during catastrophic
conditions. The Regional Administrator, Southeast Region, NMFS, (RA)
would determine when catastrophic conditions exist, the duration of the
catastrophic conditions, and which participants or geographic areas are
deemed affected by the catastrophic conditions. The RA would provide
timely notice to affected participants via publication of notification
in the Federal Register, NOAA weather radio, fishery bulletins, and
other appropriate means and would authorize the affected participants'
use of paper-based components for the duration of the catastrophic
conditions. NMFS would provide each IFQ dealer the necessary paper
forms. The paper forms would also be available from the RA. The program
functions available to participants or geographic areas deemed affected
by catastrophic conditions would be limited under the paper-based
system. There would be no mechanism for transfers of IFQ shares or
allocation under the paper-based system in effect during catastrophic
conditions. Assistance in complying with the requirements of the paper-
based system would be available via IFQ Customer Service 1-866-425-7627
Monday through Friday between 8 a.m. and 4:30 p.m. eastern time.
As soon as possible after publication of the final rule that would
implement Amendment 26, the RA would mail an IFQ information package to
eligible IFQ participants. The package would include information for
accessing the online IFQ system at ifq.sero.nmfs.noaa.gov and
establishing an online account, general instructions related to online
transaction procedures and requirements, and where appropriate,
information regarding historical landings and initial IFQ shares and
allocation.
IFQ Shares and Allocation
An IFQ share is the percentage of the commercial quota of red
snapper proportioned to each eligible person based on specified
landings data. An IFQ allocation is the actual poundage of red snapper,
measured in gutted weight, each IFQ shareholder is ensured the
opportunity to land during a given fishing year. The allocation granted
each IFQ shareholder would be derived by multiplying their IFQ share
times the annual red snapper commercial quota. A person would be
required to have an annual allocation or portion thereof, to harvest,
possess, or sell red snapper. IFQ shares and annual allocations can be
transferred separately or together to other eligible persons.
[[Page 50014]]
Adjustments in Commercial Quota and Allocation
The Council periodically reviews and adjusts the commercial quota
for Gulf red snapper in response to new data and information, which
generally take the form of new or updated red snapper stock
assessments. As the quota is adjusted, shareholder's IFQ allocations
would be proportionately adjusted based on the IFQ share each
shareholder has at the time of the adjustment.
Special Procedure for Initial Calculation of 2007 IFQ Allocations
Because of uncertainty regarding the 2007 commercial quota for Gulf
red snapper and the timing of its implementation and to avoid the
possibility of having to revoke some proportion of initial allocation
if the quota was subsequently reduced, the RA may initially calculate
the 2007 IFQ allocations based on a proxy commercial quota. If a
commercial quota adjustment for Gulf red snapper has not been submitted
for review by the Secretary of Commerce in time for calculation of 2007
IFQ allocations, the RA would initially calculate 2007 allocations
based on a proxy commercial quota of 2.55 million lb (1.16 million kg).
Alternatively, if a commercial quota adjustment for Gulf red snapper
has been submitted for review by the Secretary of Commerce in time to
allow calculation of 2007 allocations, the RA would base 2007 IFQ
allocations on the proposed quota. Under either scenario, as soon as
the actual 2007 commercial quota is final, but no later than July 1,
2007, the RA would adjust the 2007 IFQ allocations, as necessary,
consistent with the actual quota.
IFQ Share Eligibility and Share Calculation
Eligibility for initial issuance of IFQ shares would be restricted
to persons who own a Class 1 or Class 2 license as of the date of
publication of the final rule implementing Amendment 26. An owner of a
license is defined as the person who actually controls transfer of the
Class 1 or Class 2 license and is listed as the qualifier on the face
of the license. NMFS would calculate initial IFQ shares based on the
highest average annual landings of Gulf red snapper associated with
each shareholder's current Class 1 or Class 2 license(s) during the
applicable landings history unless the shareholder selects other years
of landings consistent with the applicable landing history. For a Class
1 license holder whose license was not issued based on historical
captain status, the 10 consecutive years between 1990 and 2004 with the
highest average landings would be used. For a Class 1 license holder
whose license was issued on the basis of historical captain status, all
years of landings data from 1998 through 2004 would be used. For a
Class 2 license holder, the 5 years between 1998 and 2004 with the
highest average landings would be used.
All landings associated with a current Class 1 or Class 2 license
for the applicable landings history, including those reported by a
person who held the license prior to the current license owner, would
be attributed to the current license owner. Only legal landings
reported in compliance with applicable state and Federal regulations
would be accepted. Each shareholder's initial IFQ share would be
derived by dividing the shareholder's highest average annual landings
during the applicable landings history by the sum of the highest
average annual landings of all shareholders during the respective
applicable landings histories. Initial IFQ shares would not be issued
in denominations of less than 0.0001 percent.
Appeals Process
The only items subject to appeal under this IFQ system would be
initial eligibility for IFQ shares based on ownership of a Class 1 or
Class 2 license, the accuracy of the amount of landings, and correct
assignment of landings to the license owner. The RA would review,
evaluate, and render final decisions on appeals. Appeals would have to
be submitted to the RA postmarked no later than 90 days after the
effective date of the final regulations implementing the IFQ program
and would have to contain documentation supporting the basis for
appeal. Hardship arguments would not be considered. Landings data from
1990 through 1992 would not be subject to appeal. Landings records
appeals for 1993-2004 would be based on NMFS logbook data. If NMFS
logbooks are not available; state landings records or data submitted on
or before June 30, 2005, could be used. During the first year of the
IFQ program only, the RA initially would reserve a 3-percent IFQ share,
prior to initial distribution of shares, to be used to resolve appeals.
Any portion of the 3-percent share reserve remaining after the appeals
process has been completed would be proportionately distributed back to
the initial recipients as soon as possible that year. If resolution of
appeals requires more than a 3-percent share, the shares of all initial
shareholders would be reduced proportionately to accommodate the
required shares in excess of the 3-percent reserve.
IFQ Share Cap--NMFS Solicits Public Comment
To prevent any entity from obtaining excessive shares under this
IFQ program, as mandated by National Standard 4 of the Magnuson-Stevens
Act, a share cap would be established. No person would be allowed to
own at any time IFQ shares exceeding the maximum share initially issued
to any person for the 2007 fishing year, as of the date appeals are
resolved and shares are adjusted accordingly. NMFS estimates this would
cap ownership of shares at approximately 8 percent of total shares. If
an ownership cap is too high, market power may become too consolidated
and produce an unduly anti-competitive market. However, setting the
limit too low can also have adverse effects on the price of fish. This
can happen in cases where it is less costly overall for fewer entities
to each catch more fish than it is for lots of entities to each catch
smaller amounts of fish.
Aside from considerations of controlling the undue consolidation of
market power and maintaining a fair level of competition, Section
303(b)(6) of the Magnuson-Stevens Act requires consideration of several
factors in establishing a limited access program such as the red
snapper IFQ program. Those factors include, but are not limited to:
present participation in the fishery, historical fishing practices in,
and dependence on, the fishery; the economics of the fishery; and the
cultural and social framework relevant to the fishery and any affected
fishing communities. Although the approximately 8 percent cap may not
result in consolidation that rises to the level of presenting an undue
concentration of market power or chilled competition, a higher cap
could result in levels of consolidation producing effects that are
problematic under the Magnuson-Stevens Act. Examples would include
potentially eliminating numerous small-scale historical participants,
adversely affecting the social and cultural framework of the fishery by
adversely affecting working conditions and wages for crew, and
potentially adversely affecting prices.
NMFS is seeking comments on whether the proposed cap of
approximately 8 percent is appropriate. According to the``Horizontal
Merger Guidelines'' (Guidelines) issued jointly by the Department of
Justice and the Federal Trade Commission (http://www.usdoj.gov/atr/public/guidelines/
[[Page 50015]]
hmg.pdf, see especially pp 15-17), even under conservative assumptions
a limit of 10 percent (or possibly higher under less restrictive
assumptions) would be unlikely to have adverse competitive effects.
Accordingly, NMFS seeks specific comments on the appropriateness and
magnitude of the proposed ownership cap.
Permit and IFQ Endorsement Requirements
For a person aboard a vessel, for which a commercial vessel permit
for Gulf reef fish has been issued, to fish for, possess, or land Gulf
red snapper, regardless of where harvested or possessed, a Gulf red
snapper IFQ vessel endorsement would have to be issued to the vessel
and be on board, and such person would have to hold or be assigned
sufficient IFQ allocation to account for all red snapper on board or
landed. As a condition of the IFQ vessel endorsement, a person aboard
such vessel would have to comply with the requirements of the IFQ
program regardless of where red snapper are harvested or possessed.
All dealers who purchase red snapper from an IFQ share/allocation
holder would be required to possess a valid Federal dealer permit for
Gulf reef fish and a red snapper IFQ dealer endorsement without which
possessing, transporting, selling, purchasing, or processing red
snapper would be prohibited.
The red snapper IFQ vessel endorsement and red snapper IFQ dealer
endorsement would be available for download from the IFQ website,
ifq.sero.nmfs.noaa.gov, at no cost to those individuals who possess a
valid Gulf reef fish permit or a valid Gulf reef fish dealer permit,
respectively, and request the endorsements. If such individuals do not
have an IFQ online account, they would have to first contact IFQ
Customer Service at 1-866-425-7627 to obtain information necessary to
access the IFQ website and establish an IFQ online account. The red
snapper IFQ vessel endorsement and dealer endorsement would remain
valid as long as the individual possesses a valid Gulf reef fish permit
or reef fish dealer permit, respectively, abides by all reporting and
cost recovery requirements of the IFQ program, and is not subject to
sanctions under 15 CFR part 904. The IFQ vessel endorsement and the
dealer endorsement are not transferable.
Fleet Management and Assignment of Allocation
An IFQ shareholder or IFQ allocation holder who owns more than one
vessel with a valid Gulf reef fish vessel permit and a valid Gulf red
snapper IFQ vessel endorsement may assign IFQ allocation to a person
aboard such vessel and provide that person the IFQ account information
necessary to conduct landing transactions. This assignment of
allocation, which does not constitute a transfer or sale of allocation,
can be accomplished by the shareholder or allocation holder online via
the IFQ website.
Electronic Reporting of IFQ Transactions
IFQ share and allocation transactions would be tracked using an
online accounting system developed by NMFS, in which the IFQ share/
allocation holder, IFQ dealer, and appropriate NOAA personnel would
participate. The IFQ share/allocation holder and IFQ dealer accounts
would record IFQ share/allocation transactions into the online system
using unique user ID numbers and personal identification numbers (PIN)
issued to them by NMFS. Transaction approval codes obtained from NMFS
via the online accounting system would be required for the following
transactions: (1) share transfers; (2) allocation transfers; and (3)
landings/sales transactions. The transaction approval code would verify
the IFQ share/allocation holders involved in the transaction are
eligible participants and, in the case of landings/sale, have
sufficient allocation to conduct the sales transaction.
Data managed through the online accounting system would include,
but not be limited to:
1. The identities and certificate numbers of IFQ share holders and
their associated vessel ID numbers;
2. The identities of persons and corporations holding and fishing
IFQ allocations and their associated vessel ID numbers;
3. The dates, times, and types of IFQ share and allocation
transactions;
4. The identities and locations of IFQ dealerships;
5. The dates, times, and places of landing/sales transactions;
6. The identities of the dealers and fishermen conducting landing/
sales transactions;
7. The price of red snapper recorded during each landing/sales
transaction; and
8. The biological data recorded during each landing/sales
transaction.
Landings/Sale Transactions
At the time of landing/sale of IFQ red snapper, the dealer would be
responsible for initiating transactions in the online accounting
system. The fisherman would validate the transaction online by entering
his unique PIN number at the point of transaction submittal. The
information required to be recorded in the online accounting system for
each landing/sale transaction at the point of sale would include, but
not be limited to:
1. The date and time of landing/sale;
2. The weight of red snapper purchased;
3. The share/allocation holder account number from which the catch
should be debited;
4. The ID number of the vessel used to harvest the fish;
5. The IFQ endorsement number of the authorized dealer;
6. The PIN numbers of both the dealer and fishermen; and
7. The actual ex-vessel unit price of the red snapper.
Limited Landings Overage Allowance
On the last fishing trip of the fishing year permitted by the
shareholder's annual allocation, a shareholder would be permitted to
land up to 10 percent more than the remaining allocation, without
purchasing additional allocation. Any such overages would be deducted
from the next year's allocation associated with the shareholder's IFQ
share.
This carryover provision would not apply to a person who only
possesses IFQ allocation and no IFQ shares because there would be no
reliable mechanism for compensating for the overage in the following
fishing year. Such a person would not be permitted to land any red
snapper in excess of his/her current allocation.
Cost Recovery
Section 304(d)(2)(A) of the Magnuson-Stevens Act requires the
Secretary of Commerce to establish a fee to assist in recovering the
actual costs directly related to the management and enforcement of any
IFQ program. Currently, such a fee may not exceed 3 percent of the ex-
vessel value of fish harvested under any such program, and must be
collected at either the time of landing, filing of a landing report, or
sale of such fish during a fishing season or in the last quarter of the
calendar year in which the fish is harvested. Fees collected must be in
addition to any other fees charged under the Magnuson-Stevens Act and
must be deposited in the Limited Access System Administration Fund
(LASAF) established under Section 305(h)(5)(B) of the Magnuson-Stevens
Act. Initially, the fee would be 3 percent of the actual ex-vessel
value of Gulf red snapper landed under the IFQ program, as
[[Page 50016]]
documented at the time of sale in each landings transaction report. The
RA would review the cost recovery fee annually to determine if a
downward adjustment is warranted. Factors considered in the review
would include the catch subject to the IFQ cost recovery, projected ex-
vessel value of the catch, costs directly related to the management and
enforcement of the IFQ program, the projected IFQ balance in the LASAF,
and expected non-payment of fee liabilities. If the RA determines that
a fee adjustment is warranted, the RA would publish a notification of
the fee adjustment in the Federal Register.
The IFQ shareholder or allocation holder whose IFQ allocation is
debited for a Gulf red snapper landing would be responsible for paying
the associated IFQ cost recovery fees. The IFQ dealer who receives such
landing would be responsible for collecting the applicable fee from the
shareholder/allocation holder and submitting the applicable fee to NMFS
using pay.gov via the IFQ system no later than 30 days after the end of
each calendar-year quarter; however, fees may be submitted at any time
before that deadline. Authorized payment methods would be credit card,
debit card, or automated clearing house (ACH). Payment by check would
be authorized only if the RA has determined that the geographical area
or an individual(s) is affected by catastrophic conditions. Fees not
received by the deadline would be considered delinquent and would be
resolved through the fee reconciliation process as specified in Sec.
622.16(c)(2)(iv) of this proposed rule. Failure to resolve payment of
delinquent fees may result in annulment of the applicable IFQ permit
and/or IFQ endorsement and submission of the matter to appropriate
authorities for resolution.
IFQ Share/Allocation Transferability
During the first 5 years of the IFQ program, IFQ shares or
allocations could only be transferred to a person with a valid
commercial vessel permit for Gulf reef fish; thereafter, shares and
allocations could be transferred to U.S. citizens and permanent
resident aliens.
Share Transfer Transactions
IFQ share transfers would require NMFS' approval of a share
transfer application. The person transferring the share would be
responsible for initiating the transfer request by using the online red
snapper IFQ website at ifq.sero.nmfs.noaa.gov. Following the
instructions provided on the website, the transferor would be required
to enter pertinent information regarding the transfer request
including, but not limited to:
1. The name, address, and certificate number of the individual or
corporation transferring the IFQ share;
2. The identity of the purchaser or transferee;
3. The amount of the IFQ share being transferred; and
4. The monetary value of the transfer.
If the information is accepted, the online system would send the
transferor an initial transaction approval code and make an application
for share transfer available for downloading and printing. The
transferor and transferee would be required to complete the
application, have their signatures notarized, and mail the signed
application to the RA at least 30 days prior to the date on which the
applicant desires to have the transfer effective. Share transfers would
be prohibited during December of each year to allow NMFS the time
necessary for end-of-year program management; therefore, any signed
application would have to be received by the RA prior to December 1. If
the RA approves the application for transfer, the online system would
send the transferor and transferee an electronic message acknowledging
the approval; a transfer would be effective upon receipt of the
message. The adjusted shares resulting from a transfer could be viewed
online by each shareholder. If the RA does not approve the transfer
application, the RA would return the application to the transferor with
an explanation and instructions for correcting any deficiencies.
Allocation Transfer Transactions
Unlike share transfers which require a notarized application for
transfer, allocation transfers could be accomplished online via the red
snapper IFQ website. An allocation holder could initiate an allocation
transfer by logging on to the red snapper IFQ website at
ifq.sero.nmfs.noaa.gov, and entering the required information
including, but not be limited to:
1. The name, address, and share certificate number (if applicable)
of the individual or corporation transferring the IFQ allocation;
2. The identity of the eligible purchaser or transferee;
3. The amount of the IFQ allocation being transferred; and
4. The monetary value of the transfer.
An allocation transfer would be valid only for the remainder of the
fishing year in which it occurs; it would not carry over to the
subsequent fishing year. Transfer of allocation is not prohibited
during December. Any allocation that is unused at the end of the
fishing year would be void.
Redistribution of Shares Resulting from Permanent Permit or Endorsement
Revocation
If a shareholder's commercial vessel permit for Gulf reef fish or
Gulf red snapper IFQ vessel endorsement has been permanently revoked
under provisions of 15 CFR part 904, the RA would redistribute the IFQ
shares held by that shareholder proportionately among remaining
shareholders based upon the amount of shares each held just prior to
the redistribution. During December of each year, the RA would
determine the amount of revoked shares, if any, to be redistributed,
and the shares would be distributed at the beginning of the subsequent
fishing year.
Annual Recalculation and Notification of IFQ Shares and Allocation
On or about January 1 each year, IFQ shareholders would be
notified, via the IFQ website, of their IFQ share and allocation for
the upcoming fishing year. These updated share values would reflect the
results of applicable share transfers and any redistribution of shares
resulting from permanent revocation of applicable permits or
endorsements under 15 CFR part 904. Allocation is calculated by
multiplying IFQ share times the annual red snapper commercial quota.
Updated allocation values would reflect any change in IFQ share, any
change in the annual commercial quota for Gulf red snapper, and any
debits required as a result of prior fishing year overages. IFQ
participants would be able to monitor the status of their shares and
allocation throughout the year via the IFQ website.
Measures to Enhance Enforceability
The following measures are proposed to enhance enforceability of
the IFQ program. Fishermen participating in the IFQ program would be
required to offload their red snapper landings to permitted IFQ dealers
and only between 6 a.m. and 6 p.m. daily. Any person landing IFQ red
snapper would be required to notify NMFS' Office of Law Enforcement by
calling 1-866-425-7627, at least 3 hours in advance of landing and
specify the time and location of landing and the name and address of
the dealer where the fish would be received. Possession of IFQ red
snapper from the time of transfer from a vessel through possession by a
dealer would be prohibited unless the IFQ red snapper are accompanied
by a transaction approval code verifying a legal transaction of the
amount of IFQ
[[Page 50017]]
red snapper in possession. For red snapper offloaded to a truck for
transportation to a dealer, this would require on-site capability to
accurately weigh the fish and to connect electronically to the online
IFQ system to complete the transaction and obtain the transaction
approval code. At-sea or dockside vessel-to-vessel transfers of fish on
board IFQ vessels would be prohibited.
Changes Proposed by NMFS
In this proposed rule, NMFS has clarified the distinction between
IFQ shareholders and IFQ allocation holders, and more clearly
distinguished the roles and responsibilities of these two IFQ
participant types. This clarification was necessary for proper
implementation of the IFQ program.
NMFS has also determined that it is not necessary to prohibit
transfer of allocation during December as Amendment 26 proposed.
Allocation is only valid for a given fishing year; does not carry over
to the subsequent year; and, thus, does not affect agency calculations
and implementation for the following year. Therefore, consistent with
the Council's intent to maximize flexibility among eligible
participants, NMFS has modified the proposed rule to only prohibit
transfer of IFQ shares during December of each year.
In addition, NMFS has structured the proposed rule to require an
IFQ vessel endorsement rather than an IFQ endorsement issued to an
individual as discussed by the Council. The primary purpose of the
endorsement requirement is to enhance enforceability. NMFS has
determined that a vessel endorsement would provide the necessary
enforceability; be less restrictive for participants; and be consistent
with endorsement provisions in current regulations for other fisheries
in the Southeast Region.
NMFS also has clarified in this proposed rule that the IFQ
allocation holder specified in the landing transaction report is
responsible for payment of the applicable cost recovery fee, not
necessarily the shareholder. In some cases, the shareholder may also be
the allocation holder, but in other cases, the shareholder may have
transferred allocation to a non-shareholder. In all cases, the
allocation holder is ultimately responsible for payment of the fee.
Finally, this proposed rule does not include the vessel monitoring
system (VMS) requirement for vessels with a Gulf reef fish vessel
permit that was proposed in Amendment 26. Amendment 26 acknowledged
that a comparable VMS requirement was proposed in Amendment 18A to the
FMP. Amendment 26 stated that the VMS requirement in Amendment 26 would
be unnecessary if Amendment 18A was approved by NMFS. NMFS has approved
Amendment 18A and the associated VMS requirement; therefore, this
proposed rule would not implement any additional VMS requirement.
Classification
At this time, NMFS has not determined that Amendment 26 is
consistent with the Magnuson-Stevens Act and other applicable laws.
NMFS, in making that determination, will take into account the data,
views, and comments received during the comment periods on Amendment 26
and this proposed rule.
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866.
NMFS prepared a final supplemental environmental impact statement
(FSEIS) for this amendment; a notice of availability was published on
August 2, 2006 (71 FR 43706).
NMFS prepared an IRFA, as required by section 603 of the Regulatory
Flexibility Act, for this proposed rule. The IRFA describes the
economic impact this proposed rule, if adopted, would have on small
entities. A description of the action, why it is being considered, and
the legal basis for this action are contained at the beginning of this
section in the preamble and in the SUMMARY section of the preamble. A
copy of the full analysis is available from the Council (see
ADDRESSES). A summary of the IRFA follows.
The Magnuson-Stevens Act provides the statutory basis for the
proposed rule. The proposed rule will establish an IFQ program for the
commercial red snapper fishery in the Gulf. Specifics for this IFQ
program include the following: (1) no limit on the duration of the
program, but a program evaluation is required every 5 years; (2)
maximum IFQ share ownership equal to the maximum percentage issued to
any initial recipient of IFQ shares; (3) restriction on initial
eligibility only to owners of Class 1 or Class 2 license holders; (4)
proportionate allocation of initial IFQ shares based on average annual
landings for 10 consecutive years during 1990-2004 for Class 1, all
years of landings during 1998-2004 for Class 1 historical captains, and
any 5 years during 1998-2004 for Class 2; (5) establishment of an
appeals process and a set-aside of a 3-percent IFQ share to resolve
appeals; (6) restriction on transfers of IFQ shares/allocations only to
those with a valid commercial reef fish permit during the first 5 years
and to U.S. citizens and permanent resident aliens thereafter; (7)
proportionate allocation of commercial quota adjustments based on
percentage of IFQ share holdings at the time of the adjustment and
phased-in issuance of IFQ allocations for the 2007 season; and, (8)
provision for IFQ cost recovery fees to be paid by IFQ allocation
holders who land IFQ red snapper but collected and submitted to NMFS by
registered IFQ dealers.
The main objectives of the proposed rule are to address the excess
capacity and derby problems in the commercial red snapper fishery. The
proposed rule would generally impact two types of businesses in the
Gulf reef fish fishery, namely, commercial fishing vessels (including
recreational for-hire vessels with commercial reef fish permits) and
fish dealers.
At present, the Gulf of Mexico (GOM) commercial reef fish permits
are under a limited access program. Commercial reef fish permits are
renewable every year subject to the condition the applicant meets the
income requirement. Also, the commercial red snapper fishery is
presently under a two-tier license limitation program. A Class 1
license entitles the holder a trip limit of 2,000 lb (907.2 kg) of red
snapper while a Class 2 license entitles the holder a lower trip limit
of 200 lb (90.7 kg). Each type of license is allowed only one trip per
day. The proposed IFQ program would replace this two-tier license
limitation system in the commercial red snapper fishery, but the
limited access program for commercial reef fish permits remains
unchanged.
No duplicative, overlapping, or conflicting Federal rules have been
identified.
There are 1,118 active commercial reef fish permits and 91 others
that are currently expired but may be renewed within a year. Thus, a
total of 1,209 vessels may be considered to comprise the universe of
commercial harvest operations in the GOM reef fish fishery. Of the
1,209 commercial permittees, 136 entities hold red snapper Class 1
licenses and 628 entities hold red snapper Class 2 licenses. Of the 136
Class 1 licenses, seven have been issued on the basis of the historical
captain criterion. All original owners of Class 1 historical captain
licenses have sold their licenses. Reported average annual gross
receipts (in 2004 dollars) of commercial reef fish vessels in the GOM
range from $24,095 for low-volume vertical line vessels to $116,989 for
high-volume longline vessels which primarily target grouper. The
corresponding annual net incomes range from $4,479 for low-volume
vertical line vessels to $28,466 for high-volume vertical line vessels.
Permit records
[[Page 50018]]
indicate there are 17 Class 1 fleet operations owning a total of 58
licenses. In 2004, the top three fleet operations landed a total of
987,532 lb (447,937 kg) of red snapper, or an average of 329,177 lb
(149,312 kg) per fleet operation. At the 2004 average red snapper ex-
vessel price of $2.83 per pound, the average pounds landed convert to
ex-vessel revenues of $931,571. No fleet information is available for
Class 2 licenses, but it is reasonable under the circumstances to
assume that if ever a Class 2 fleet operation exists, it would generate
much less revenues than its Class 1 counterparts.
There currently exists a permitting requirement for dealers to buy
or sell reef fish, including red snapper, caught in the GOM. This
permitting requirement remains under the proposed IFQ program, but in
addition a red snapper endorsement would be required of dealers to buy
or sell red snapper. Based on the permits file, there are 227 dealers
possessing permits to buy and sell reef fish species. However, based on
logbook records, there are 154 reef fish dealers actively buying and
selling red snapper. It is possible, though, that some of the 227
dealers may be handling red snapper in one year but not in another.
Dealers in Florida purchased about $1.8 million of red snapper,
followed by dealers in Louisiana with purchases of $1.4 million and
dealers in Texas with purchases of $1.3 million. Dealers in Mississippi
purchased $174,000 worth of red snappers and those in Alabama, $88,000.
These dealers may hold multiple types of permits, and because we do not
know 100 percent of the business revenues, it is not possible to
determine what percentage of their business comes from buying and
selling red snapper.
Average employment information per reef fish dealer in the GOM is
unknown. Although dealers and processors are not synonymous entities, a
recent study reported total employment for reef fish processors in the
Southeast at approximately 700 individuals, both part and full time.
NMFS assumes all processors must be dealers, yet a dealer need not be a
processor. Further, processing is a much more labor intensive operation
than dealing. Therefore, given the employment estimate for the
processing sector, it is likely the average dealer employment would be
low.
The Small Business Administration (SBA) defines a business as a
small business if it is independently owned and operated and not
dominant in its field of operation, and if it has annual receipts not
in excess of $4.0 million in the case of commercial harvesting entities
or $6.5 million in the case of for-hire entities, or if it has fewer
than 500 employees in the case of fish processors, or fewer than 100
employees in the case of fish dealers. Based on the gross revenue and
employment profiles presented above, all permitted commercial reef fish
vessels (including fleet operations) and reef fish dealers affected by
the proposed regulations may be classified as small entities.
The proposed rule would introduce additional reporting and record-
keeping requirements involving the tracking of IFQ shares and the
corresponding red snapper landings. An electronic reporting system is
the planned approach to track IFQ shares and corresponding red snapper
landings. The reporting burden would mainly fall on the dealers. An IFQ
dealer endorsement would be required of any dealer purchasing red
snapper. The IFQ dealer endorsement would be issued at no cost to those
individuals who possess a valid GOM reef fish dealer permit and request
the endorsement. Although the current GOM reef fish dealer permit must
be renewed annually at a cost of $50 for the initial permit ($12.50 for
each additional permit), the IFQ dealer endorsement would remain valid
as long as the individual possesses a valid GOM reef fish dealer
permit, abides by all reporting and cost recovery requirements of the
IFQ program, and is not subject to sanctions under 15 CFR part 904. As
an integral part of the electronic monitoring system, an IFQ dealer
would be required to have access to computers and the Internet for
inputting, among other data, pounds and value of red snapper purchased
by the dealer from an IFQ shareholder. If a dealer does not have
current access to computers and the Internet, he or she may have to
expend approximately $1,500 for computer equipment and accessories
(one-time cost) and $300 annual cost for Internet access. Dealers would
need some basic computer and Internet skills to input information for
all red snapper purchases into the IFQ electronic reporting system.
Dealers also have to remit to NMFS on a quarterly basis, the cost
recovery fees equivalent to 3 percent of the actual ex-vessel value of
red snapper purchased from IFQ shareholders/allocation holders.
Although IFQ allocation holders pay this fee, it is the responsibility
of dealers to collect and remit these fees to NMFS. In addition to this
quarterly remittance, dealers would be required to submit to NMFS a
year-end report summarizing all transactions involving the purchase of
red snapper. There is currently no available information to determine
how many of the 227 reef fish dealers or of the current 154 red snapper
dealers have the necessary electronic capability to participate in the
IFQ program. However, demonstration of this capability would be
necessary for IFQ program participation by any dealer.
IFQ shareholders/allocation holders also have to use the electronic
reporting system to report transfer/assignment of shares and allocation
as well as to monitor their outstanding IFQ shares and allocations.
Similar skills and equipment needs for dealers also apply to IFQ
shareholders/allocation holders. There would be 95 IFQ shareholders
based on Class 1 license qualification and as many as 482 IFQ
shareholders based on Class 2 license qualification. Over time under
the IFQ program, the number of IFQ shareholders is expected to decline.
The 764 vessels (136 Class 1 licenses plus 628 Class 2 licenses)
that have Class 1 or Class 2 licenses comprise 64 percent of all
vessels with GOM commercial reef fish permits. Also, at least 154, or
68 percent, of the 227 permitted reef fish dealers would be affected.
Therefore, the proposed rule would affect a substantial number of small
entities.
Because all affected vessel and dealer operations are small
entities, the proposed rule would not result in disproportionate
impacts where small entities are placed at a significant competitive
disadvantage to large entities. Some vessel operations are relatively
larger than others. In particular, 17 fleet operations account for as
much as 40 percent of the entire commercial quota for red snapper.
These 17 fleet operations and another 78 single vessel operations would
initially receive about 90 percent of IFQ shares. The other 482 smaller
operations would receive the rest of the IFQ shares. And 146 Class 2
vessel operations would likely not receive any initial IFQ shares,
because they have no landings history during the qualifying period of
1998-2004 for these licenses.
The proposed rule has varying effects on the profitability of the
affected vessel operations. Most likely, it has minimal effects on the
profits of the 146 Class 2 vessel operations that have no red snapper
landings. These vessels would mainly lose their relatively low-cost
entry into the red snapper fishery should the need arise. Under the
proposed rule, they would have to buy shares/allocations even if they
intend to fish only on a limited basis. Some of the 482 Class 2 vessel
operations that may have increasingly relied on red snapper to
supplement their overall harvests
[[Page 50019]]
may receive small IFQ shares. They would either have to buy more
shares/allocations to continue fishing for red snapper or sell their
shares. Either way, their overall profits may decline, at least
initially, although in selling their IFQ shares they would receive some
remuneration. The 136 Class 1 vessel operations and some Class 2 vessel
operations that have relatively large red snapper landings are expected
to benefit most from the IFQ program. As discussed in the RIR, an IFQ
system is expected to improve the profitability of these vessels. This
improvement would generally take time, since fishermen would have to
adjust their operations in order to achieve the most profitable
position. Such adjustment may involve consolidation of multiple vessel
operations to lower costs, scheduling of harvests to take advantage of
market and weather conditions, negotiation with purchasers to strike a
long-term deal at relatively stable prices, or some other arrangements
that take advantage of a relatively certain share of a season's quota
at the start of the season. Some entities may be successful in making
adjustments while others may not. For those that cannot, there is
always the option to sell their shares. They may leave the red snapper
fishery, but would receive some remuneration for doing so.
The extent to which the IFQ monitoring system, including the
collection and remittance of the cost recovery fees, would affect
dealers' profitability cannot be determined at this time. For the
relatively established dealers, the monetary cost requirement under an
electronic monitoring system is probably small, especially if they
already have computer systems in place. Smaller operations, however,
may totally stay out of the red snapper fishery. On top of the cost the
dealer defrays to collect and remit cost recovery fees, participating
dealers are also exposed to possibilities of temporarily or permanently
losing their red snapper business in the event there are problems with
their collection and/or remittance of the full amount of cost recovery
fees. To mitigate this potential adverse impact, dealers are granted a
30-day grace period from the end of the quarter to reconcile their cost
recovery fee accounts. Arrears in cost recovery fees not settled within
the 30-day grace period would lead to suspension of the dealer red
snapper endorsement. In this eventuality, dealers are granted another
30 days to settle their accounts before their dealer endorsement is
annulled. Note, however, that payment of arrears is sufficient to
reinstate the dealer endorsement within a certain period of time.
This amendment considered several alternatives to the proposed
rule. An alternative to the IFQ program is the current limited access
and license limitation system. Under this system, overcapacity and
derby effects have substantially constrained the profitability of the
commercial harvest industry. The proposed IFQ program is expected to
effectively address these major issues/problems in the fishery. To
partly cushion the impacts of unintended IFQ allocation overruns that
may result in penalties, IFQ shareholders are allowed to land up to 10
percent more than their remaining allocations for the fishing year's
last fishing trip without having to purchase additional allocation.
However, any overages would be deducted from the next year's allocation
associated with their IFQ shares.
There are two other alternatives with respect to the duration of
the IFQ program. One specifies no duration while the other imposes a
term limit on the program. The former has similar effects as the
proposed rule, but it does not contain a mandatory evaluation of the
program every 5 years. A sunset provision, as in the latter
alternative, offers a lower likelihood for the IFQ program to achieve
its intended objectives. Also, it would introduce uncertainties into
the program due to potential changes in the ``rules of the game.''
With respect to an ownership cap, two other alternatives have been
considered. One places no cap on ownership of IFQ shares while the
other places a cap ranging from 2 to 15 percent of the commercial
quota. The first alternative provides a fertile ground for
consolidation of IFQ shares, but it can also lead to concentration of
ownership to a select few at the expense of eliminating historically
small-scale operations in the fishery. The second alternative may be
too liberal (e.g., 15 percent) as to lead to over-consolidation or too
restrictive (e.g., 2 percent) as to penalize the more efficient
operations.
Two other alternatives have been considered on the issue of
initially eligible persons. The first one does not specify persons
eligible to receive initial IFQ shares, and, thus, does not provide
guidance for initially allocating IFQ shares. The second restricts
initial eligibility to Class 1 license holders. This is too restrictive
as to disallow at least 482 Class 2 license holders from continued
participation in the fishery at the start of the IFQ program.
Regarding allocating initial IFQ shares, two other alternatives
have been considered. The first does not specify a methodology for
allocating initial IFQ shares, and, thus, does not provide guidance for
allocating IFQ shares to eligible participants. The second allocates
initial IFQ shares equally among all eligible participants. This
alternative would penalize the highliners and reward the small-scale
operations in the fishery. There are more participants who would
benefit from this alternative, but the magnitude of adverse impacts on
at least 136 operations would be relatively large.
Regarding the appeals process, three other alternatives have been
considered. The first does not establish an appeals process, and, thus,
would not provide fishermen an avenue to contest landings information
used by NMFS to determine their IFQ shares. The second establishes an
appeals board composed of state directors/designees who would advise
the RA on appeals. The third establishes an advisory panel composed of
IFQ shareholders. The proposed rule is simple and more straightforward
than any of the alternatives that establish an appeals board.
There are five other alternatives regarding the transfer of IFQ
shares/allocations. The first provides no limit on transfer; the second
limits transfers only to those with valid commercial reef fish permits;
the third limits transfers only to IFQ shareholders; the fourth allows
transfers to U.S. citizens and permanent resident aliens; and, the
fifth limits transfers only to IFQ shareholders during the first five
years of the IFQ program and those with valid commercial reef fish
permits thereafter. With the exception of the first alternative, all
others would tend to limit the price an IFQ seller gets, so the
resulting IFQ prices would not capture the true value of the resource.
In addition, such limitations would constrain the entry of potentially
more efficient producers. The proposed rule would be less restrictive
than these alternatives but still would be more restrictive than the
first alternative that does not impose limits on transfer. However, the
proposed rule addresses concerns relative to the preservation of the
historical and current participation in the fishery.
On the issue of allocating adjustments in the commercial quota,
three other alternatives have been considered. The first does not
specify a method for allocating adjustments, so it does not provide
adequate guidance for allocating quota changes. The second would
allocate quota changes equally among IFQ share holders, and the third
would allocate quota changes equally for 50 percent of the change and
[[Page 50020]]
proportionately for the other 50 percent. The second alternative would
provide smaller operations larger benefits with quota increases and
also larger losses with quota decreases. The third alternative would
favor smaller operations at the expense of larger operations. One
should note, however, that both large and small vessel operations have
been considered small entities for SBA purposes.
The proposed rule regarding a cost recovery fee is intended to
abide by the Sec. 304(d)(2)(A) provision of the Magnuson-Stevens Act.
One other alternative considered in this respect is not to impose a
fee, which would not be in compliance with the noted provision. Another
alternative considered is similar to the proposed rule, except that
collection and submission of fees reside on the IFQ holders and not on
the dealers. Under this alternative and the proposed rule, a small
entity bears the cost of collecting and remitting the fees. The
proposed rule, however, affords a better accounting control for the
government. Copies of the RIR and IRFA are available (see ADDRESSES).
This proposed rule contains collection-of-information requirements
subject to the Paperwork Reduction Act (PRA). The collection-of-
information requirements and associated public reporting burdens, in
minutes, are as follows: (1) Dealer account activation--5; (2) Dealer
transaction report--7; (3) Shareholder account activation--5; (4)
Allocation holder account activation--10; (5) Advance notification of
landing--3; (6) Transfer of share--15; and (7) Transfer of allocation--
5. These requirements have been submitted to OMB for approval. These
estimates of the public reporting burdens include the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collections of information. Public comment is sought regarding: Whether
these proposed collections of information are necessary for the proper
performance of the functions of the agency, including whether the
information will have practical utility; the accuracy of the burden
estimates; ways to enhance the quality, utility, and clarity of the
information to be collected; and ways to minimize the burden of the
collections of information, including through the use of automated
collection techniques or other forms of information technology. Send
comments regarding the burden estimates or any other aspect of the
collection-of-information requirements, including suggestions for
reducing the burden, to NMFS and to OMB (see ADDRESSES).
Notwithstanding any other provision of law, no person is required
to respond to, nor shall a person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements
of the PRA, unless that collection of information displays a currently
valid OMB control number.
List of Subjects in 50 CFR Part 622
Fisheries, Fishing, Puerto Rico, Reporting and recordkeeping
requirements, Virgin Islands.
Dated: August 18, 2006.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine
Fisheries Service.
For the reasons set out in the preamble, 50 CFR part 622 is
proposed to be amended as follows:
PART 622--FISHERIES OF THE CARIBBEAN, GULF, AND SOUTH ATLANTIC
1. The authority citation for part 622 continues to read as
follows:
Authority: 16 U.S.C. 1801 et seq.
2. In Sec. 622.1, revise paragraph (a) and the first sentence in
paragraph (b), and Table 1 entry ``FMP for the Reef Fish Resources of
the Gulf of Mexico'', and add footnote 5 to read as follows:
Sec. 622.1 Purpose and scope.
(a) The purpose of this part is to implement the FMPs prepared
under the Magnuson-Stevens Act by the CFMC, GMFMC, and/or SAFMC listed
in Table 1 of this section.
(b) This part governs conservation and management of species
included in the FMPs in or from the Caribbean, Gulf, Mid-Atlantic,
South Atlantic, or Atlantic EEZ, unless otherwise specified, as
indicated in Table 1 of this section. * * *
Table 1--FMPs Implemented Under Part 622
------------------------------------------------------------------------
Responsible fishery
FMP title management Geographical
council(s) area
------------------------------------------------------------------------
* * * * *
...................
FMP for the Reef Fish Resources of GMFMC Gulf.\1,5\
the Gulf of Mexico
* * * * *
...................
------------------------------------------------------------------------
\5\ Regulated area includes adjoining state waters for Gulf red snapper
harvested or possessed by a person aboard a vessel with a Gulf red
snapper IFQ vessel endorsement or possessed by a dealer with a Gulf
red snapper IFQ dealer endorsement.
3. In Sec. 622.2, definitions of ``Actual ex-vessel value'' and
``IFQ'' are added in alphabetical order to read as follows:
Sec. 622.2 Definitions and acronyms.
* * * * *
Actual ex-vessel value means the total monetary sale amount a
fisherman receives for IFQ landings from a registered IFQ dealer.
* * * * *
IFQ means individual fishing quota.
* * * * *
4. Section 622.4 is amended by:
A. Adding introductory text to the section.
B. Adding a new sentence after the first sentence of paragraph
(a)(2)(v).
C. Revising paragraphs (a)(2)(ix), (a)(4), the first sentence of
paragraph (d), paragraph (g)(1), and the first sentence of paragraph
(h)(1).
D. Removing and reserving paragraph (p).
The additions and revisions read as follows:
Sec. 622.4 Permits and fees.
Paragraphs (p)(1) through (3) and (p)(5) through (6) of this
section will no longer be in effect as of January 1, 2007, and
paragraph (p)(4) of this section will no longer be in effect as of
[DATE OF PUBLICATION OF THE FINAL RULE].
(a) * * *
(2) * * *
(v) * * * See paragraph (a)(2)(ix) of this section regarding an
additional IFQ vessel endorsement required to fish for, possess, or
land Gulf red snapper. * * *
* * * * *
(ix) Gulf red snapper IFQ vessel endorsement. For a person aboard a
vessel, for which a commercial vessel permit for Gulf reef fish has
been issued, to fish for, possess, or land Gulf red snapper, regardless
of where harvested or possessed, a Gulf red snapper IFQ vessel
endorsement must have been issued to the vessel and must be on board.
As a condition of the IFQ vessel endorsement issued under this
[[Page 50021]]
paragraph (a)(2)(ix), a person aboard such vessel must comply with the
requirements of Sec. 622.16 regardless of where red snapper are
harvested or possessed. An owner of a vessel with a commercial vessel
permit for Gulf reef fish can download an IFQ vessel endorsement from
the NMFS IFQ website at ifq.sero.nmfs.noaa.gov. If such owner does not
have an IFQ online account, the owner must first contact IFQ Customer
Service at 1-866-425-7627 to obtain information necessary to access the
IFQ website and establish an IFQ online account. There is no fee for
obtaining this endorsement. The vessel endorsement remains valid as
long as the vessel permit remains valid and the vessel owner is in
compliance with all Gulf reef fish and Gulf red snapper IFQ reporting
requirements, has paid all IFQ fees required under paragraph (c)(2) of
this section, and is not subject to sanctions under 15 CFR part 904.
The endorsement is not transferable. See Sec. 622.16 regarding other
provisions pertinent to the Gulf red snapper IFQ system.
* * * * *
(4) Dealer permits, endorsements, and conditions --(i) Permits. For
a dealer to receive Gulf reef fish, golden crab harvested from the
South Atlantic EEZ, South Atlantic snapper-grouper, rock shrimp
harvested from the South Atlantic EEZ, dolphin or wahoo harvested from
the Atlantic EEZ, or wreckfish, a dealer permit for Gulf reef fish,
golden crab, South Atlantic snapper-grouper, rock shrimp, Atlantic
dolphin and wahoo, or wreckfish, respectively, must be issued to the
dealer.
(ii) Gulf red snapper IFQ dealer endorsement. In addition to the
requirement for a dealer permit for Gulf reef fish as specified in
paragraph (a)(4)(i) of this section, for a dealer to receive Gulf red
snapper subject to the Gulf red snapper IFQ program, as specified in
Sec. 622.16(a)(1), or for a person aboard a vessel with a Gulf red
snapper IFQ vessel endorsement to sell such red snapper directly to an
entity other than a dealer, such persons must also have a Gulf red
snapper IFQ dealer endorsement. A dealer with a Gulf reef fish dealer
permit can download a Gulf red snapper IFQ dealer endorsement from the
NMFS IFQ website at ifq.sero.nmfs.noaa.gov. If such persons do not have
an IFQ online account, they must first contact IFQ Customer Service at
1-866-425-7627 to obtain information necessary to access the IFQ
website and establish an IFQ online account. There is no fee for
obtaining this endorsement. The endorsement remains valid as long as
the Gulf reef fish dealer permit remains valid and the dealer is in
compliance with all Gulf reef fish and Gulf red snapper IFQ reporting
requirements, has paid all IFQ fees required under paragraph (c)(2) of
this section, and is not subject to sanctions under 15 CFR part 904.
The endorsement is not transferable. See Sec. 622.16 regarding other
provisions pertinent to the Gulf red snapper IFQ system.
(iii) State license and facility requirements. To obtain a dealer
permit or endorsement, the applicant must have a valid state
wholesaler's license in the state(s) where the dealer operates, if
required by such state(s), and must have a physical facility at a fixed
location in such state(s).
* * * * *
(d) * * * Unless specified otherwise, a fee is charged for each
application for a permit, license, or endorsement submitted under this
section, for each request for transfer or replacement of such permit,
license, or endorsement, and for each fish trap or sea bass pot
identification tag required under Sec. 622.6(b)(1)(i)(B). * * *
* * * * *
(g) * * *
(1) Vessel permits, licenses, and endorsements and dealer permits.
A vessel permit, license, or endorsement or a dealer permit or
endorsement issued under this section is not transferable or
assignable, except as provided in paragraph (m) of this section for a
commercial vessel permit for Gulf reef fish, in paragraph (n) of this
section for a fish trap endorsement, in paragraph (o) of this section
for a king mackerel gillnet permit, in paragraph (q) of this section
for a commercial vessel permit for king mackerel, in paragraph (r) of
this section for a charter vessel/headboat permit for Gulf coastal
migratory pelagic fish or Gulf reef fish, in paragraph (s) of this
section for a commercial vessel moratorium permit for Gulf shrimp, in
Sec. 622.17(c) for a commercial vessel permit for golden crab, in
Sec. 622.18(e) for a commercial vessel permit for South Atlantic
snapper-grouper, or in Sec. 622.19(e) for a commercial vessel permit
for South Atlantic rock shrimp. A person who acquires a vessel or
dealership who desires to conduct activities for which a permit,
license, or endorsement is required must apply for a permit, license,
or endorsement in accordance with the provisions of this section and
other applicable sections of this part. If the acquired vessel or
dealership is currently permitted, the application must be accompanied
by the original permit and a copy of a signed bill of sale or
equivalent acquisition papers. In those cases where a permit, license,
or endorsement is transferable, the seller must sign the back of the
permit, license, or endorsement and have the signed transfer document
notarized.
* * * * *
(h) * * *
(1) * * * Unless specified otherwise, a vessel owner or dealer who
has been issued a permit, license, or endorsement under this section
must renew such permit, license, or endorsement on an annual basis.
* * * * *
5. In Sec. 622.7, paragraphs (gg) and (hh) are added to read as
follows:
Sec. 622.7 Prohibitions.
* * * * *
(gg) Fail to comply with any provision related to the Gulf red
snapper IFQ program as specified in Sec. 622.16.
(hh) Falsify any information required to be submitted regarding the
Gulf red snapper IFQ program as specified in Sec. 622.16.
6. The stay of Sec. 622.16 is lifted and the section is revised to
read as follows:
Sec. 622.16 Gulf red snapper individual fishing quota (IFQ) program.
(a) General. This section establishes an IFQ program for the
commercial fishery for Gulf red snapper. Under the IFQ program, the RA
initially will assign eligible participants IFQ shares equivalent to a
percentage of the annual commercial red snapper quota, based on their
applicable historical landings. Shares determine the amount of Gulf red
snapper IFQ allocation, in pounds gutted weight, a shareholder is
initially authorized to possess, land, or sell in a given calendar
year. Shares and annual IFQ allocation are transferable. See Sec.
622.4(a)(2)(ix) regarding a requirement for a vessel landing red
snapper subject to this IFQ program to have a Gulf red snapper IFQ
vessel endorsement. See Sec. 622.4(a)(4)(ii) regarding a requirement
for a Gulf red snapper IFQ dealer endorsement. Details regarding
eligibility, applicable landings history, account setup and transaction
requirements, constraints on transferability, and other provisions of
this IFQ system are provided in the following paragraphs of this
section.
(1) Scope. The provisions of this section apply to Gulf red snapper
in or from the Gulf EEZ and, for a person aboard a vessel with a Gulf
red snapper IFQ vessel endorsement as required by Sec. 622.4(a)(2)(ix)
or for a person with a Gulf red snapper IFQ dealer endorsement as
required by Sec. 622.4(a)(4)(ii), these provisions apply
[[Page 50022]]
to Gulf red snapper regardless of where harvested or possessed.
(2) Duration. The IFQ program established by this section will
remain in effect until it is modified or terminated; however, the
program will be evaluated by the Gulf of Mexico Fishery Management
Council every 5 years.
(3) Electronic system requirements. (i) The administrative
functions associated with this IFQ program, e.g., registration and
account setup, landing transactions, and transfers, are designed to be
accomplished online; therefore, a participant must have access to a
computer and Internet access and must set up an appropriate IFQ online
account to participate. Assistance with online functions is available
from IFQ Customer Service by calling 1-866-425-7627 Monday through
Friday between 8 a.m. and 4:30 p.m. eastern time.
(ii) The RA will mail initial shareholders and dealers with Gulf
reef fish dealer permits information and instructions pertinent to
setting up an IFQ online account. Other eligible persons who desire to
become IFQ participants by purchasing IFQ shares or allocation or by
obtaining a Gulf red snapper IFQ dealer endorsement must first contact
IFQ Customer Service at 1-866-425-7627 to obtain information necessary
to set up the required IFQ online account. Each IFQ participant must
monitor his/her online account and all associated messages and comply
with all IFQ online reporting requirements.
(iii) During catastrophic conditions only, the IFQ program provides
for use of paper-based components for basic required functions as a
backup. The RA will determine when catastrophic conditions exist, the
duration of the catastrophic conditions, and which participants or
geographic areas are deemed affected by the catastrophic conditions.
The RA will provide timely notice to affected participants via
publication of notification in the Federal Register, NOAA weather
radio, fishery bulletins, and other appropriate means and will
authorize the affected participants' use of paper-based components for
the duration of the catastrophic conditions. NMFS will provide each IFQ
dealer the necessary paper forms, sequentially coded, and instructions
for submission of the forms to the RA. The paper forms will also be
available from the RA. The program functions available to participants
or geographic areas deemed affected by catastrophic conditions will be
limited under the paper-based system. There will be no mechanism for
transfers of IFQ shares or allocation under the paper-based system in
effect during catastrophic conditions. Assistance in complying with the
requirements of the paper-based system will be available via IFQ
Customer Service 1-866-425-7627 Monday through Friday between 8 a.m.
and 4:30 p.m. eastern time.
(b) Procedures for initial implementation--(1) Determination of
eligibility for initial IFQ shares. To be eligible as an initial IFQ
shareholder a person must own a Class 1 or Class 2 Gulf red snapper
license as of the date of publication of the final rule implementing
this IFQ system. For the purposes of this paragraph, an owner of a
license is defined as the person who controls transfer of the license
and is listed as the qualifier on the face of the license. NMFS' permit
records are the sole basis for determining eligibility based on Class 1
or Class 2 license history. No more than one initial eligibility will
be granted based upon a given Class 1 or Class 2 license.
(2) Calculation of initial IFQ shares and allocation--(i) IFQ
shares. The RA will calculate initial IFQ shares based on the highest
average annual landings of Gulf red snapper associated with each
shareholder's current Class 1 or Class 2 license during the applicable
landings history. The applicable landings history for a Class 1 license
owner whose license was not issued based on historical captain status
includes any 10 consecutive years of landings data from 1990 through
2004; for a Class 1 license owner whose license was issued on the basis
of historical captain status, all years of landings data from 1998
through 2004; and for a Class 2 license holder, any 5 years of landings
data from 1998 through 2004. All landings associated with a current
Class 1 or Class 2 license for the applicable landings history,
including those reported by a person who held the license prior to the
current license owner, will be attributed to the current license owner.
Only legal landings reported in compliance with applicable state and
Federal regulations will be accepted. Each shareholder's initial share
is derived by dividing the shareholder's highest average annual
landings during the applicable landings history by the sum of the
highest average annual landings of all shareholders during the
respective applicable landings histories. Initial IFQ shares will not
be issued in denominations of less than 0.0001 percent.
(ii) Initial share set-aside to accommodate resolution of appeals.
During the first year of implementation of this IFQ program only, the
RA will reserve a 3-percent IFQ share, prior to the initial
distribution of shares, to accommodate resolution of appeals, if
necessary. Any portion of the 3-percent share remaining after the
appeals process is completed will be distributed as soon as possible
among initial shareholders in direct proportion to the percentage share
each was initially allocated. If resolution of appeals requires more
than a 3-percent share, the shares of all initial shareholders would be
reduced accordingly in direct proportion to the percentage share each
was initially allocated.
(iii) IFQ allocation. IFQ allocation is the amount of Gulf red
snapper, in pounds gutted weight, an IFQ shareholder or allocation
holder is authorized to possess, land, or sell during a given fishing
year. IFQ allocation is derived at the beginning of each year by
multiplying a shareholder's IFQ share times the annual commercial quota
for Gulf red snapper.
(iv) Special procedure for initial calculation of 2007 IFQ
allocations. Because of uncertainty regarding the 2007 commercial quota
for Gulf red snapper and the timing of its implementation and to avoid
the possibility of having to revoke some proportion of initial
allocation if the quota was subsequently reduced, the RA may initially
calculate the 2007 IFQ allocations based on a proxy commercial quota.
If a commercial quota adjustment for Gulf red snapper has not been
submitted for review by the Secretary of Commerce in time for
calculation of 2007 IFQ allocations, the RA will initially calculate
2007 allocations based on a proxy commercial quota of 2.55 million lb
(1.16 million kg). Alternatively, if a commercial quota adjustment for
Gulf red snapper has been submitted for review by the Secretary of
Commerce in time to allow calculation of 2007 allocations, the RA will
base 2007 IFQ allocations on the proposed quota. Under either scenario,
as soon as the actual 2007 commercial quota is final, but no later than
July 1, 2007, the RA will adjust the 2007 IFQ allocations, as
necessary, consistent with the actual quota.
(3) Shareholder notification regarding landings history, initial
determination of IFQ shares and allocations, and IFQ account setup
information. (i) As soon as possible after the date of publication of
the final rule implementing this IFQ program, the RA will mail each
Class 1 or Class 2 red snapper license owner information pertinent to
the IFQ program. This information will include--
(A) Gulf red snapper landings associated with the owner's license
[[Page 50023]]
during each year of the applicable landings history;
(B) The highest average annual red snapper landings based on the
owner's applicable landings history;
(C) The owner's initial IFQ share based on the highest average
annual landings associated with the owner's applicable landings
history;
(D) The initial IFQ allocation;
(E) Instructions for appeals;
(F) General instructions regarding procedures related to the IFQ
online system, including how to set up an online account; and
(G) A user identification number--the personal identification
number (PIN) will be provided in a subsequent letter.
(ii) The RA will provide this information, via certified mail
return receipt requested, to the license owner's address of record as
listed in NMFS' permit files. A license owner who does not receive such
notification from the RA within 30 days after the date of publication
of the final rule implementing this IFQ system must contact the RA to
clarify eligibility status and landings and initial share information.
(iii) The initial share information provided by the RA is based on
the highest average landings associated with the owner's applicable
landings history; however, a license owner may select a different set
of years of landings, consistent with the owner's applicable landings
history, for the calculation of the initial IFQ share. The license
owner must submit that information to the RA postmarked no later than
30 days after the date of publication of the final rule implementing
this IFQ system. If alternative years, consistent with the applicable
landings history, are selected, revised information regarding shares
and allocations will be posted on the online IFQ accounts no later than
January 1, 2007. A license owner who disagrees with the landings or
eligibility information provided by the RA may appeal the RA's initial
determinations.
(4) Procedure for appealing IFQ eligibility and/or landings
information. The only items subject to appeal under this IFQ system are
initial eligibility for IFQ shares based on ownership of a Class 1 or
Class 2 license, the accuracy of the amount of landings, and correct
assignment of landings to the license owner. Appeals based on hardship
factors will not be considered. Appeals must be submitted to the RA
postmarked no later than 90 days after the effective date of the final
rule implementing this IFQ system and must contain documentation
supporting the basis for the appeal. The RA will review all appeals,
render final decisions on the appeals, and advise the appellant of the
final decision.
(i) Eligibility appeals. NMFS' records of Class 1 and Class 2
licenses are the sole basis for determining ownership of such licenses.
A person who believes he/she meets the permit eligibility criteria
based on ownership of a vessel under a different name, as may have
occurred when ownership has changed from individual to corporate or
vice versa, must document his/her continuity of ownership.
(ii) Landings appeals. Landings data for 1990 through 1992 are not
subject to appeal. Appeals regarding landings data for 1993 through
2004 will be based solely on NMFS' logbook records. If NMFS' logbooks
are not available, state landings records or data that were submitted
in compliance with applicable Federal and state regulations, on or
before June 30, 2005, can be used.
(5) Dealer notification and IFQ account setup information. As soon
as possible after the date of publication of the final rule
implementing this IFQ program, the RA will mail each dealer with a
valid Gulf reef fish dealer permit information pertinent to the IFQ
program. Any such dealer is eligible to receive a red snapper IFQ
dealer endorsement which can be downloaded from the IFQ website
atifq.sero.nmfs.noaa.gov once an IFQ account has been established. The
information package will include general information about the IFQ
program and instructions for accessing the IFQ website and establishing
an IFQ dealer account.
(c) IFQ operations and requirements--(1) IFQ Landing and
transaction requirements. (i) Gulf red snapper subject to this IFQ
program can only be possessed or landed by a vessel with a Gulf red
snapper IFQ vessel endorsement. Such red snapper can only be received
by a dealer with a Gulf red snapper IFQ dealer endorsement. The person
landing the red snapper must hold or be assigned IFQ allocation at
least equal to the pounds of red snapper landed, except as provided in
paragraph (c)(1)(ii) of this section.
(ii) An IFQ shareholder or his agent or employee assigned to land
the shareholder's allocation can legally exceed, by up to 10 percent,
the shareholder's allocation remaining on the last fishing trip of the
fishing year. Any such overage will be deducted from the shareholder's
allocation for the subsequent fishing year.
(iii) The dealer is responsible for completing a landing
transaction report for each landing and sale of Gulf red snapper via
the IFQ website at ifq.sero.nmfs.noaa.gov at the time of the
transaction in accordance with reporting form and instructions provided
on the website. This report includes, but is not limited to, date,
time, and location of transaction; weight and actual ex-vessel value of
red snapper landed and sold; and information necessary to identify the
fisherman, vessel, and dealer involved in the transaction. The
fisherman must validate the dealer transaction report by entering his
unique PIN number when the transaction report is submitted. After the
dealer submits the report and the information has been verified, the
website will send a transaction approval code to the dealer and the
allocation holder.
(2) IFQ cost recovery fees. As required by section 304(d)(2)(A)(i)
of the Magnuson-Stevens Act, the RA will collect a fee to recover the
actual costs directly related to the management and enforcement of the
Gulf red snapper IFQ program. The fee cannot exceed 3 percent of the
ex-vessel value of Gulf red snapper landed under the IFQ program. Such
fees will be deposited in the Limited Access System Administration Fund
(LASAF). Initially, the fee will be 3 percent of the actual ex-vessel
value of Gulf red snapper landed under the IFQ program, as documented
in each landings transaction report. The RA will review the cost
recovery fee annually to determine if adjustment is warranted. Factors
considered in the review include the catch subject to the IFQ cost
recovery, projected ex-vessel value of the catch, costs directly
related to the management and enforcement of the IFQ program, the
projected IFQ balance in the LASAF, and expected non-payment of fee
liabilities. If the RA determines that a fee adjustment is warranted,
the RA will publish a notification of the fee adjustment in the Federal
Register.
(i) Payment responsibility. The IFQ allocation holder specified in
the documented red snapper IFQ landing transaction report is
responsible for payment of the applicable cost recovery fees.
(ii) Collection and submission responsibility. A dealer who
receives Gulf red snapper subject to the IFQ program is responsible for
collecting the applicable cost recovery fee for each IFQ landing from
the IFQ allocation holder specified in the IFQ landing transaction
report. Such dealer is responsible for submitting all applicable cost
recovery fees to NMFS on a quarterly basis. The fees are due and must
be submitted, using pay.gov via the IFQ system, no later than 30 days
after the end of each calendar-year quarter; however, fees
[[Page 50024]]
may be submitted at any time before that deadline. Fees not received by
the deadline are delinquent.
(iii) Fee payment procedure. For each IFQ dealer, the IFQ system
will post, on individual message boards, an end-of-quarter statement of
cost recovery fees that are due. The dealer is responsible for
submitting the cost recovery fee payments using pay.gov via the IFQ
system. Authorized payments methods are credit card, debit card, or
automated clearing house (ACH). Payment by check will be authorized
only if the RA has determined that the geographical area or an
individual(s) is affected by catastrophic conditions.
(iv) Fee reconciliation process--delinquent fees. The following
procedures apply to an IFQ dealer whose cost recovery fees are
delinquent.
(A) On or about the 31st day after the end of each calendar-year
quarter, the RA will send the dealer an electronic message via the IFQ
website and official notice via mail indicating the applicable fees are
delinquent; the dealer's IFQ account has been suspended pending payment
of the applicable fees; and notice of intent to annul the dealer's IFQ
endorsement.
(B) On or about the 61st day after the end of each calendar-year
quarter, the RA will mail to a dealer whose cost recovery fee payment
remains delinquent, official notice documenting the dealer's IFQ
endorsement has been annulled.
(C) On or about the 91st day after the end of each calendar-year
quarter, the RA will refer any delinquent IFQ dealer cost recovery fees
to the appropriate authorities for collection of payment.
(v) Annual IFQ dealer ex-vessel value report. The IFQ online system
will generate an annual IFQ Dealer Ex-Vessel Value Report for each IFQ
dealer. The report will include quarterly and annual information
regarding the amount and value of IFQ red snapper received by the
dealer, the associated cost recovery fees, and the status of those
fees. The dealer's acceptance of this report constitutes compliance
with the annual dealer IFQ reporting requirement.
(3) Measures to enhance IFQ program enforceability--(i) Advance
notice of landing. The owner or operator of a vessel landing IFQ red
snapper is responsible for calling NMFS Office of Law Enforcement at 1-
866-425-7627 at least 3 hours in advance of landing to report the time
and location of landing and the name and address of the IFQ dealer
where the red snapper are to be received.
(ii) Time restriction on landing and offloading. IFQ red snapper
may be landed and offloaded only between 6 a.m. and 6 p.m., local time.
(iii) Restrictions on transfer of IFQ red snapper. At-sea or
dockside transfer of IFQ red snapper from one vessel to another vessel
is prohibited.
(iv) Requirement for transaction approval code. Possession of IFQ
red snapper from the time of transfer from a vessel through possession
by a dealer is prohibited unless the IFQ red snapper are accompanied by
a transaction approval code verifying a legal transaction of the amount
of IFQ red snapper in possession.
(4) Transfer of IFQ shares and allocation. Through the date 5 years
after the effective date of the final rule implementing this IFQ
program, IFQ shares and allocations can be transferred only to a person
who holds a valid commercial vessel permit for Gulf reef fish;
thereafter, IFQ shares and allocations can be transferred to any U.S.
citizen or permanent resident alien. However, a valid commercial permit
for Gulf reef fish, a Gulf red snapper IFQ vessel endorsement, and Gulf
red snapper IFQ allocation are required to possess, land or sell Gulf
red snapper subject to this IFQ program.
(i) Share transfers. Share transfers are permanent, i.e., they
remain in effect until subsequently transferred. Transfer of shares
will result in the corresponding allocation being automatically
transferred to the person receiving the transferred share beginning
with the fishing year following the year the transfer occurred.
However, within the fishing year the share transfer occurs, transfer of
shares and associated allocation are independent--unless the associated
allocation is transferred separately, it remains with the transferor
for the duration of that fishing year. A share transfer transaction
that remains in pending status, i.e., has not been completed and
verified with a transaction approval code, after 30 days from the date
the shareholder initiated the transfer will be cancelled, and the
pending shares will be re-credited to the shareholder who initiated the
transfer.
(ii) Share transfer procedures. A shareholder must initiate the
request for the RA to transfer IFQ shares by using the online Gulf red
snapper IFQ website at ifq.sero.nmfs.noaa.gov. Following the
instructions provided on the website, the shareholder must enter
pertinent information regarding the transfer request including, but not
limited to, amount of shares to be transferred, which must be a minimum
of 0.0001 percent; name of the eligible transferee; and the value of
the transferred shares. For the first 5 years this IFQ program is in
effect, an eligible transferee is a person who has a valid commercial
vessel permit for Gulf reef fish; is in compliance with all reporting
requirements for the Gulf reef fish fishery and the red snapper IFQ
program; is not subject to sanctions under 15 CFR part 904; and who
would not be in violation of the share cap as specified in paragraph
(c)(6) of this section. Thereafter, share transferee eligibility will
be extended to include U.S. citizens and permanent resident aliens who
are otherwise in compliance with the provisions of this section. NMFS
will evaluate and verify the information entered. If the information is
not accepted, NMFS will send the shareholder an electronic message
explaining the reason(s). If the information is accepted, NMFS will
send the shareholder an initial transaction approval code and make an
application for share transfer available for downloading and printing.
The shareholder and eligible transferee must complete the application,
have their signatures notarized, and mail the signed application to the
RA at least 30 days prior to the date on which the applicant desires to
have the transfer effective. The signed application must be received by
the RA prior to December 1. See paragraph (c)(4)(v) of this section
regarding a prohibition on transfer during December of each year. If
the RA approves the application for transfer, the online system will
send the shareholder and the transferee an electronic message
acknowledging the approval; a transfer is effective upon receipt of the
message. The adjusted shares resulting from a transfer may be viewed
online by each shareholder. If the RA does not approve the transfer
application, the RA will return the application to the shareholder with
an explanation and instructions for correcting any deficiencies.
(iii) Allocation transfers. An allocation transfer is valid only
for the remainder of the fishing year in which it occurs; it does not
carry over to the subsequent fishing year. Any allocation that is
unused at the end of the fishing year is void.
(iv) Allocation transfer procedures. Unlike share transfers which
require a notarized application for transfer, allocation transfers can
be accomplished online via the red snapper IFQ website. An IFQ
allocation holder can initiate an allocation transfer by logging on to
the red snapper IFQ website at ifq.sero.nmfs.noaa.gov, entering the
required information, including but not limited to, name of an eligible
transferee and amount of IFQ allocation to be transferred and price,
and submitting
[[Page 50025]]
the transfer electronically. If the transfer is approved, the website
will provide a transaction approval code to the transferor and
transferee confirming the transaction.
(v) Prohibition of transfer of shares during December each year. No
IFQ shares may be transferred during December of each year. This period
is necessary to provide the RA sufficient time to reconcile IFQ
accounts, adjust allocations for the upcoming year if the commercial
quota for Gulf red snapper has changed, and update shares and
allocations for the upcoming fishing year.
(5) Fleet management and assignment of IFQ allocation. An IFQ
shareholder or IFQ allocation holder who owns more than one vessel with
a valid Gulf reef fish vessel permit and a valid Gulf red snapper IFQ
vessel endorsement may assign IFQ allocation to a person aboard such
vessel and provide that person the IFQ account information necessary to
conduct landing transactions.
(6) IFQ share cap. No person, including a corporation or other
entity, may individually or collectively hold IFQ shares in excess of
the maximum share initially issued to a person for the 2007 fishing
year, as of the date appeals are resolved and shares are adjusted
accordingly. For the purposes of considering the share cap, a
corporation's total IFQ share is defined as the sum of the IFQ shares
held by the corporation and the IFQ shares held by individual
shareholders of the corporation. A corporation must identify the
shareholders of the corporation and their percent of shares in the
corporation.
(7) Redistribution of shares resulting from permanent permit or
endorsement revocation. If a shareholder's commercial vessel permit for
Gulf reef fish or Gulf red snapper IFQ vessel endorsement has been
permanently revoked under provisions of 15 CFR part 904, the RA will
redistribute the IFQ shares held by that shareholder proportionately
among remaining shareholders based upon the amount of shares each held
just prior to the redistribution. During December of each year, the RA
will determine the amount of revoked shares, if any, to be
redistributed, and the shares will be distributed at the beginning of
the subsequent fishing year.
(8) Annual recalculation and notification of IFQ shares and
allocation. On or about January 1 each year, IFQ shareholders will be
notified, via the IFQ website at ifq.sero.nmfs.noaa.gov, of their IFQ
share and allocation for the upcoming fishing year. These updated share
values will reflect the results of applicable share transfers and any
redistribution of shares resulting from permanent revocation of
applicable permits or endorsements under 15 CFR part 904. Allocation is
calculated by multiplying IFQ share times the annual red snapper
commercial quota. Updated allocation values will reflect any change in
IFQ share, any change in the annual commercial quota for Gulf red
snapper, and any debits required as a result of prior fishing year
overages as specified in paragraph (c)(1)(ii) of this section. IFQ
participants can monitor the status of their shares and allocation
throughout the year via the IFQ website.
Sec. 622.34 [Amended]
7. In Sec. 622.34, paragraph (l) is removed and reserved.
8. In Sec. 622.42, paragraph (a)(1)(i) is revised to read as
follows.
Sec. 622.42 Quotas.
* * * * *
(a) * * *
(1) * * *
(i) Red snapper--4.65 million lb (2.11 million kg), round weight.
* * * * *
Sec. 622.44 [Amended]
9. In Sec. 622.44, paragraph (d) is removed and reserved.
[FR Doc. 06-7122 Filed 8-23-06; 8:45 am]
BILLING CODE 3510-22-S