FACT SHEET
          FISHING CAPACITY REDUCTION DEMONSTRATION PROGRAM 
                         (FCRDP)

The FCRDP is premised on three fundamental concepts:

1. The program is voluntary. 2. The program is based on a reverse bid process. 3. The program will require mandatory scrapping and the surrender of all Federal fishing permits attached to the vessel.

The FCRDP is targeted to the Northeast groundfish fishery.

The FCRDP assumes continuation of limited access on Federal groundfish permits.

The FCRDP is limited to Category I, II, and VI Northeast limited access multi-species fishing permits. These permits have been issued to the larger groundfish vessels and restrict fishing on a days-at-sea basis, either individually (I) or an a fleet- wide basis (II), and gillnet vessels (VI).

The FCRDP is limited to vessels that are active and functioning. Active boats are defined as having made a minimum of 2 fishing trips between March 1, 1995, and May 1, 1995. Functioning vessels are defined as being capable of fishing in Federal waters under their own power at the time of the bid.

The FCRDP is limited to full-time groundfish vessels, defined as vessels that can prove that at least 65 percent of their gross annual income in each of 3 of the last 4 years is derived from groundfish regulated under the multi-species plan.

Bids will be scored using the following formula--bid divided by average annual revenues from regulated groundfish of the highest 3 of last 4 years--and the lowest scores will be given preference.

If there are not enough satisfactory scores to exhaust the funds, another call for bids will go out and all unsuccessful previous bids will be rejected.

Successful applicants will be given 15 working days to withdraw their offers.

NOAA reserves the right to reject any and all bids.