[Federal Register: November 29, 2007 (Volume 72, Number 229)]
[Rules and Regulations]
[Page 67580-67586]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29no07-11]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 635
[Docket No. 070803437-7666-02]
RIN 0648-AV93
Atlantic Highly Migratory Species; Atlantic Commercial Shark
Management Measures
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Final rule.
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SUMMARY: This final rule establishes the 2008 first trimester season
commercial quotas for large coastal sharks (LCS), small coastal sharks
(SCS), and pelagic sharks based on over- or underharvests from the 2007
first trimester season. This action provides advance notice of quotas
and season dates for the Atlantic commercial shark fishery. It also
ensures the measures in this action are in place until they are
replaced by those implemented under Amendment 2 to the Highly Migratory
Species (HMS) Consolidated Fishery Management Plan (FMP) even if
Amendment 2 is finalized after the start of the second trimester season
(May 1, 2008). As such, this action constitutes the regulatory action
to determine quotas and season lengths for LCS, SCS and pelagic sharks
for the 2008 second trimester season. However, if Amendment 2 to the
HMS FMP is unexpectedly delayed beyond the end of the 2008 second
trimester season, NMFS may consider a rulemaking for the 2008 third
trimester seasons. NMFS would announce any additional action for the
second and third seasons in a future Federal Register notice.
DATES: This rule is effective January 1, 2008. The Atlantic commercial
shark fishing season opening and closing dates and quotas for the 2008
first and second trimester seasons are provided in Tables 1 and 2,
respectively, under SUPPLEMENTARY INFORMATION.
ADDRESSES: For copies of the Final Environmental Assessment/Regulatory
Impact Review/Final Regulatory Flexibility Analysis (EA/RIR/FRFA),
please write to Highly Migratory Species Management Division, 1315
East-West Highway, Silver Spring, MD 20910, or at (301) 713-1917 (fax).
Copies are also available from the HMS website at http://www.nmfs.noaa.gov/sfa/hms/
or from www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: LeAnn Southward Hogan or Michael Clark
by phone: 301-713-2347 or by fax: 301-713-1917.
SUPPLEMENTARY INFORMATION:
Background
The Atlantic shark fishery is managed under the authority of the
Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act). The Consolidated HMS FMP for Atlantic Sharks, Tunas,
Swordfish and Billfish is implemented by regulations at 50 CFR part
635.
Currently, the Atlantic shark annual commercial quotas, with the
exception of pelagic sharks, are split among three regions based on
historic landings (1999 - 2003). Consistent with 50 CFR
635.27(b)(1)(iii) and (iv), the annual LCS baseline quota (1,017 mt dw)
is split among the three regions as follows: 52 percent to the Gulf of
Mexico, 41 percent to the South Atlantic, and 7 percent to the North
Atlantic. The annual SCS baseline quota (454 mt dw) is split among the
three regions as follows: 48 percent to the Gulf of Mexico, 49 percent
to the South Atlantic, and 3 percent to the North Atlantic. The
regional quotas for LCS and SCS are divided equally between the
trimester seasons in the South Atlantic and the Gulf of Mexico, and
according to historical landings in the North Atlantic.
Consistent with 50 CFR 635.27(b)(1)(vi), any over- or underharvest
in a given region from the 2007 first trimester season will be carried
over to the 2008 first trimester season in that region.
As stated in the proposed rule, existing regulations do not allow
underharvests of pelagic sharks to be carried forward to the next
fishing management period. Therefore, the 2008 first trimester pelagic
shark quotas do not need to be reduced consistent with the current
regulations at 50 CFR 635.27(b)(1)(vi)(B). The 2008 first trimester
season quotas for pelagic, blue, and porbeagle sharks are proposed to
be 162.7 mt dw (358,688 lb dw), 91 mt dw (200,619 lb dw), and 30.7 mt
dw (67,681 lb dw), respectively. The pelagic shark season would open on
January 1, 2008 and would close when quotas are projected to be reached
with a
[[Page 67581]]
notification filed at the Office of the Federal Register by the AA,
consistent with 50 CFR 635.28(b)(2). If Amendment 2 to the Consolidated
HMS FMP is not final and effective by the start of the 2008 second
trimester, the pelagic shark fishery would open on May 1, 2008, with
the baseline quotas.
On October 1, 2007 (72 FR 55729), NMFS published a proposed rule
that examined the regional adjusted quotas and proposed season lengths
for the 2008 first trimester season for LCS, SCS and pelagic sharks
managed under the Consolidated HMS FMP. NMFS analyzed three
alternatives for adjusting regional trimester quotas and other
management measures based on the over- and underharvests that occurred
in the LCS and SCS fisheries in the South Atlantic and Gulf of Mexico
regions during the 2007 first trimester season. Information regarding
these alternatives was provided in the preamble of the proposed rule
and is not repeated here.
Response to Comments
Comments on the proposed rule are summarized below, together with
NMFS' responses.
Comment 1: NMFS received several comments in support of alternative
2, which would combine the LCS regions and quotas and open the LCS
season on January 1 through January 6.
Response: NMFS does not prefer alternative 2 because of the
negative consequences of establishing a single combined region with a
substantially shortened season. These consequences include derby-style
fishing and safety at sea concerns for all regions if fishermen have
only six days to fish starting January 1, when weather conditions are
potentially poor. Additionally, establishing a substantially shortened
season (six days) and opening the waters in all regions could lead to
decreased fishing efficiency and resultant decreased survival rates for
bycatch. Also, the LCS overharvest that has occurred in recent years
could continue if alternative 2 is implemented, causing negative
ecological impacts through potential overharvests of overfished species
in multiple regions.
Furthermore, the six day season in alternative 2 may cause a
temporary glut of shark products in the market. This glut would likely
reduce the ex-vessel price of shark products. Additionally, as
fishermen would likely try to land as much shark as possible in as
short a time as possible, fishing operations would likely be
inefficient, thus reducing the quality of the shark products landed.
Overall, market gluts and reduced shark product quality would likely
minimize any economic benefits fishermen would gain if the season were
open for six days.
Combining the regions would likely have negative economic impacts
on regions that do no have sharks present year round. The North
Atlantic region may be disadvantaged as a result of combining the three
regions into one region because sharks are only present in this region
certain times of the year. Dealers in all regions, but particularly in
the North Atlantic regions, would also be affected, possibly even more
so than vessels, as the likelihood of having quality, fresh shark
products would be decreased.
Comment 2: NMFS received a comment stating that NMFS has violated
National Standards 1 and 2 of the Magnuson-Stevens Act.
Response: National Standard 1 requires NMFS to establish
conservation and management measures to prevent overfishing while
achieving, on a continuing basis, the optimum yield from each fishery
for the United States fishing industry. Because of the overfished
nature of certain shark species and the recent overharvests experienced
in this fishery, NMFS believes that optimum yield requires a closure as
the available quota would result in derby fishing that may compromise
safety and efficiency while potentially resulting in excessive fishing
mortality. NMFS must close the LCS fishery in all regions during the
2008 first trimester. The closure would also provide the most
ecological benefits and help rebuild overfished sandbar and dusky shark
populations, and reduce fishing pressure on other LCS species.
Amendment 1 to the FMP for Atlantic Tunas, Swordfish, and Sharks
established a rebuilding plan for LCS that incorporated the results of
the 2002 LCS stock assessment and established optimum yield for the LCS
fishery by setting baseline LCS quotas. The LCS closure may help offset
the amount of overharvests that need to be accounted for in Amendment 2
to the Consolidated HMS FMP to achieve optimum yield per the results of
the 2006 LCS stock assessments.
National Standard 2 requires that conservation and management
measures be based upon the best scientific information available. The
baseline LCS quotas and quota adjustments that NMFS proposed in this
rulemaking were established in Amendment 1 to the FMP for Atlantic
Tunas, Swordfish and Sharks and are based on the 2002 LCS stock
assessment. Due to recent LCS overharvests during the first trimester
season, the adjusted LCS quotas for the 2008 first trimester season are
significantly reduced. The small amount of available LCS quota would
lead to substantially shortened seasons or closures during the 2008
first trimester season. Although the 2002 LCS stock assessment was the
best available science when the current LCS baseline quotas were
established, NMFS also considered the results of the 2006 LCS stock
assessment when determining the most appropriate course of action for
the LCS fishery in this rulemaking. This rulemaking does not propose
changes to the LCS baseline quotas. Overall, the 2008 first trimester
baseline quotas are based on the best available science when those
quotas were established, which is the 2002 LCS stock assessment and the
adjustments are based on the best available landings data in recent
years. Changes to the LCS baseline quotas, as proposed in Amendment 2
to the Consolidated HMS FMP, are based on the 2006 LCS stock
assessment. The results from the 2006 LCS stock assessment were also
considered as part of this rulemaking.
Comment 3: NMFS received a comment stating that NMFS violated
National Standard 4 of the Magnuson-Stevens Act by deducting state
landings from federal quotas.
Response: National Standard 4 requires that conservation and
management measures shall not discriminate between residents of
different States. If it becomes necessary to allocate or assign fishing
privileges among various United States fishermen, such allocation shall
be (A) fair and equitable to all such fishermen; (B) reasonably
calculated to promote cooperation; and (C) carried out in such manner
that no particular individual, corporation, or other entity acquires an
excessive share of such privileges. This action does not discriminate
between residents of different States because the LCS closure will
apply to all regions and the SCS and pelagic shark fisheries will open
in all regions on January 1, 2008. In addition, consistent with the
regulations at 50 CFR 635.27(b)(1)(vi)(C), sharks taken and landed from
state waters are counted against the fishery quota for the applicable
region and time period. National Standard 3 states that fish stocks
shall be managed as a unit throughout its range. Therefore, deducting
state landings from federal quotas is necessary to manage stocks
throughout the range and does not discriminate between residents of
different states. Some residents may be impacted differently but this
measure is needed to prevent overfishing. These landings are also
included when
[[Page 67582]]
assessing the stock. The shark fishery is not the only fishery where
NMFS deducts state landings from Federal quotas. Other fisheries in the
southeast region such as snapper/grouper and reef fish fisheries also
deduct state landings from federal quotas, consistent with 50 CFR
622.42. However, to improve consistency between state and federal
regulations, NMFS is actively working with the Atlantic States Marine
Fishery Commission and, as part of Amendment 2 to the Consolidated HMS
FMP, wrote letters to all states comparing their regulations with
Federal regulations.
Comment 4: NMFS received a comment stating that the Agency failed
to monitor the quota and the 2008 LCS quota should default to the 2003
emergency rule LCS quota of 1,714 mt dw.
Response: The draft Amendment 2 to the Consolidated HMS FMP
includes measures to improve reporting and quota monitoring. Such
measures are not addressed in this rulemaking which only establishes
quotas and season lengths based on adjustments to baseline quotas. NMFS
used the best information available when it became available to
establish the quotas and season lengths in this rulemaking. The 2003
emergency rule LCS quota was put into place temporarily while Amendment
1 to the FMP for Atlantic Tunas, Swordfish and Sharks was being
finalized. The LCS baseline quotas that were finalized in Amendment 1
to the FMP for Atlantic Tunas, Swordfish and Sharks were based on the
best available science at the time, which was the 2002 LCS stock
assessment. Therefore, NMFS would not default to the 2003 emergency
rule LCS quota because that quota was temporary and did not include the
full range of analyses and public comment that was included in
Amendment 1 to the FMP for Atlantic Tunas, Swordfish and Sharks. NMFS
accounts for over- and underharvests when adjusting the trimester
season quotas and has for a number of years, and this rule does not
propose a change to this management measure.
Comment 5: NMFS received a comment stating that the overall quota
for all shark species should be zero.
Response: The purpose of this rulemaking is to adjust trimester
quotas based on over- and underharvests from the previous year, not to
reanalyze the overall shark quotas and management measures, which is
being done in Amendment 2 to the Consolidated HMS FMP. NMFS is
reexamining quotas and other management measures in Amendment 2 to the
Consolidated HMS FMP.
Comment 6: NMFS received a comment stating that NMFS has created an
economic disaster from failure to manage the fishery and that the
Secretary of Commerce should provide economic relief to the small
businesses affected by shark quota reductions.
Response: Under the Magnuson-Stevens Act at Sec. 312 (16 U.S.C.
1861a), at the request of a Governor, the Secretary of Commerce can
determine whether there is a commercial fishery failure due to a
fishery resource disaster as a result of (A) natural causes; (B) man-
made causes beyond the control of fishery managers to mitigate through
conservation and management measures, including regulatory restrictions
(including those imposed as a result of a judicial action) imposed to
protect human health or the marine environment; or (C) undetermined
causes. Due to the language contained in the Magnuson-Stevens Act, NMFS
is currently reviewing these criteria and anticipates doing a
rulemaking on them in the near future. At this time, because NMFS has
not received a request from a Governor, NMFS is not considering a
disaster determination for the Atlantic shark fishery.
Changes to the Proposed Rule
NMFS is not changing the proposed rule published on October 1, 2007
(72 FR 55729) based upon public comments NMFS received for the
aforementioned reasons. As a result, the provisions published in the
proposed rule are adopted as final.
Final Fishing Season Notification and Quotas for the 2008 First
Trimester Season
The final opening and closing dates and quotas for the 2008 first
and second trimester season for LCS, SCS, and pelagic sharks are
provided in Table 1 and Table 2, respectively.
Table 1. Final Seasons and Quotas for LCS, SCS and Pelagic Sharks for
the First Trimester of 2008.
All quotas are in metric tons, dressed weight.
------------------------------------------------------------------------
Species 2008 1st
Group Region 2008 1st 2008 1st Tri.
(Annual (Allocation) Tri. opening Tri. closing Adjusted
Quota) date date Quota
------------------------------------------------------------------------
Large Gulf of Mexico Closed N/A
Coastal (52 %)
Sharks
(1,017)
------------------
South Atlantic ............
(41 %)
------------------
North Atlantic ............
(7 %)
------------------------------------------------------------------------
Small Gulf of Mexico January 1, To be 73.2
Coastal (48 %) 2008 determined (161,377 lb
Sharks as dw)
(454) necessary
------------------ -------------
South Atlantic ............ ............ 354.9
(49 %) (782,413 lb
dw)
------------------ -------------
North Atlantic ............ ............ 19.3
(3 %) (42,549 lb
dw)
------------------------------------------------------------------------
Blue Sharks No regional January 1, To be 91.0
(273) quotas 2008 determined (200,618 lb
as dw)
necessary
------------- -------------
Porbeagle ................ ............ ............ 30.7
sharks (67,681 lb
(92) dw)
------------- -------------
[[Page 67583]]
Pelagic ................ ............ ............ 162.7
Sharks (358,688 lb
other than dw)
Porbeagle
or blue
(488)
------------------------------------------------------------------------
Table 2. Final Seasons and Quotas for LCS, SCS and Pelagic Sharks for
the Second Trimester of 2008.
All quotas are in metric tons, dressed weight.
------------------------------------------------------------------------
Species 2008 2nd
Group Region 2008 2nd 2008 2nd Tri.
(Annual (Allocation) Tri. opening Tri. closing Adjusted
Quota) date date Quota
------------------------------------------------------------------------
Large Gulf of Mexico CLOSED N/A
Coastal (52 %)
Sharks
(1,017)
------------------
South Atlantic ............
(41 %)
------------------
North Atlantic ............
(7 %)
------------------------------------------------------------------------
Small Gulf of Mexico May 1, 2008 To be 72.6
Coastal (48 %) determined (160,054 lb
Sharks as dw)
(454) necessary
------------------ -------------
South Atlantic ............ ............ 74.1
(49 %) (163,361 lb
dw)
------------------ -------------
North Atlantic ............ ............ 12.0
(3 %) (26,455 lb
dw)
------------------------------------------------------------------------
Blue Sharks No regional May 1, 2008 To be 91.0
(273) quotas determined (200,618 lb
as dw)
necessary
------------- -------------
Porbeagle ................ ............ ............ 30.7
sharks (67,681 lb
(92) dw)
------------- -------------
Pelagic ................ ............ ............ 162.7
Sharks (358,688 lb
other than dw)
Porbeagle
or blue
(488)
------------------------------------------------------------------------
Classification
NMFS has determined that this action is consistent with section
304(b)(1) of the Magnuson-Stevens Act, including the National
Standards, and other applicable law.
This final rule has been determined to be not significant for
purposes of Executive Order 12866.
In compliance with Section 604 of the Regulatory Flexibility Act, a
Final Regulatory Flexibility Analysis (FRFA) was prepared for this
rule. The FRFA analyzes the anticipated economic impacts of the
preferred actions and any significant alternatives to the final rule
that could minimize economic impacts on small entities. A summary of
the FRFA is below. The full FRFA and analysis of economic and
ecological impacts, are available from NMFS (see ADDRESSES).
Section 604(a)(1) of the Regulatory Flexibility Act requires the
Agency to state the objective and need for the rule. The objective of
the rulemaking is to ensure that the season lengths and quotas for the
first and second trimester seasons of 2008 for LCS, SCS, and pelagic
sharks are in place by January 1, 2008, until they are replaced by
those implemented under draft Amendment 2 of the Consolidated HMS FMP.
There will be no regulatory action to determine quotas and season
lengths for LCS, SCS, and pelagic sharks for the 2008 second trimester
season even if Amendment 2 to the Consolidated HMS FMP is finalized
after May 1, 2008, the start of the second trimester season. This rule
does not change the overall annual base quotas.
Section 604(a)(2) of the Regulatory Flexibility Actrequires the
Agency to summarize significant issues raised by the public in response
to the Initial Regulatory Flexibility Analysis (IRFA), a summary of the
Agency's assessment of such issues, and a statement of any changes made
as a result of the comments. The IRFA was done as part of the draft EA
for the 2008 first trimester season Atlantic commercial shark
management measures. NMFS did not receive any comments specific to the
IRFA. However, NMFS did receive comments related to the overall
economic impacts of the proposed rule. Those comments and NMFS's
responses to them are mentioned above in the preamble for this rule.
Section 604(a)(3) of the Regulatory Flexibility Act requires the
Agency to describe and provide an estimate of the number of small
entities to which the rule will apply. This rule could directly affect
commercial shark fishermen on the Atlantic Ocean in the United States.
NMFS considers all HMS permit holders to be small entities because they
either had gross receipts less than $3.5 million for fish-harvesting,
gross receipts less than $6.0 million for charter/party boats, or 100
or fewer employees for wholesale dealers. These
[[Page 67584]]
are the Small Business Administration's size standards for defining a
small versus large business entity in this industry. There are
approximately 529 (231 directed and 298 incidental) shark permit
holders. Additionally, approximately 269 commercial shark dealers could
be indirectly affected by this proposed rule. Other small entities
involved in HMS fisheries such as processors, bait houses, and gear
manufacturers might also be indirectly affected by the final
regulations. More information regarding the number of small entities
involved in the fishery and their locations can be found in Chapters 3
and 6 of Amendment 2 to the Consolidated HMS FMP.
Section 604(a)(4) of the Regulatory Flexibility Act requires the
Agency to describe the projected reporting, recordkeeping, and other
compliance requirements of the final rule, including an estimate of the
classes of small entities which would be subject to the requirements of
the report or record. None of the alternatives considered for this
final rule would result in additional reporting, recordkeeping, and
compliance requirements.
Section 604(a)(5) of the Regulatory Flexibility Act requires the
Agency to describe the steps taken to minimize the significant economic
impact on small entities consistent with the stated objectives of
applicable statutes. Additionally, the Regulatory Flexibility Act (5
U.S.C. 603(c)(1)-(4)) lists four general categories of ``significant''
alternatives that would assist an agency in the development of
significant alternatives. These categories of alternatives are:
Establishment of differing compliance or reporting
requirements or timetables that take into account the resources
available to small entities;
Clarification, consolidation, or simplification of
compliance and reporting requirements under the rule for such small
entities;
Use of performance rather than design standards; and
Exemptions from coverage of the rule for small entities.
As noted earlier, NMFS considers all permit holders in this fishery
to be small entities. In order to meet the objectives of this final
rule, consistent with Magnuson-Stevens Act, NMFS cannot exempt small
entities or change the reporting requirements only for small entities.
Thus, there are no alternatives discussed that fall under the first and
fourth categories described above. In addition, none of the
alternatives considered would result in additional reporting or
compliance requirements (category two above). NMFS does not know of any
performance or design standards that would satisfy the aforementioned
objectives of this rulemaking while, concurrently, complying with the
Magnuson-Stevens Act.
As described below, NMFS analyzed three different alternatives in
this final rulemaking and provides justification for selection of the
preferred alternatives to achieve the desired objective.
The alternatives included: maintain existing procedures for LCS and
SCS quota management (alternative 1, No Action), combine the LCS
regions and quotas and maintain status quo for SCS (alternative 2), and
close all regions to LCS fishing during the 2008 first trimester season
until Amendment 2 to the Consolidated HMS FMP effective and maintain
modified status quo for SCS (alternative 3, preferred). NMFS preferred
alternative 3 because it would provide the most ecological benefits to
overfished sandbar and dusky shark populations and reduce fishing
pressure on other LCS species. In addition, the ecological benefits of
keeping the LCS fishery closed in all regions outweighs the potential
economic impacts associated with the closure.
Alternative 1 is considered the no action alternative since it
would maintain existing procedures for addressing regional trimester
over- and underharvests of LCS and SCS when establishing the regional
quotas and seasons for the first trimester season of 2008. This
alternative is not preferred in part because it could result in
negative ecological impacts for LCS species compared to the preferred
alternative because it would allow the LCS season to open in the Gulf
of Mexico and North Atlantic regions for a short time period. As
described below, this alternative would also result in derby fishing
and market gluts. It is also important to note that the unexpected
magnitude of the 2006 first trimester overharvest would result in no
commercial fishing for LCS in the South Atlantic region during the
first trimester of 2008 for the second consecutive year since the
available adjusted quota of 16.3 mt dw would be taken in approximately
one day.
If not for the overharvests in 2006 and 2007, the LCS 2008 first
trimester base quota allocation would have been 138.9 mt dw in the
South Atlantic region. Instead, the adjusted quota under the no action
alternative, would be 16.3 mt dw, which is 122.6 mt dw less than it
would have been under the base quota allocation. Because of this small
2008 adjusted quota, no fishing season is preferred due to safety at
sea concerns, potential derby fishing conditions and further
overharvests of overfished shark species. Therefore, under this
alternative, the South Atlantic region would be closed during the 2008
first trimester season. Based on the ex-vessel prices per pound dw by
region in 2006 of $0.46 per pound dw of LCS flesh and $16.20 per pound
for shark fins in the South Atlantic region, the closure would lead to
a loss in revenue of approximately $7,121 for LCS flesh (95 percent of
the 16.3 mt dw) and $13,122 for shark fins (based on the 5 percent
shark fin to carcass ratio). While these revenue reductions alone may
not appear to be significant, it should be noted that the 2007 first
trimester season in the South Atlantic region was also closed.
Therefore, the 2008 first trimester closure would be the second
consecutive year this region was closed, possibly leading to continued
disrupted revenue flows and negative economic impacts.
If not for the 125.1 mt dw overharvest in the first trimester of
2007 in the Gulf of Mexico region, the 2008 first trimester available
quota would have been 176.1 mt of LCS in the Gulf of Mexico region. Due
to this overharvest, the adjusted LCS quota is 51 mt dw in the Gulf of
Mexico region. To estimate the value of changes in revenues from the
2008 available quota, the 2006 ex-vessel prices were used to calculate
the ``extra'' revenues generated from the overharvest in the first
trimester of 2007. Based on the ex-vessel prices per pound dw by region
in 2006 of $0.47 per pound dressed weight of LCS flesh and $20.65 per
pound for shark fins in the Gulf of Mexico region, the value of the
125.1 mt dw reduction from the baseline quota allocation is
approximately $55,855 for LCS flesh (95 percent of the quota weight)
and $129,166 for shark fins (based on the 5 percent shark fin to
carcass ratio).
With a 2008 adjusted quota of 51 mt dw, the Gulf of Mexico region
would have a short season that would last for five days. Using the ex-
vessel prices as above for the Gulf of Mexico region, the value of this
51 mt dw adjusted quota for the first trimester of 2008 is
approximately $22,772 for LCS flesh (95 percent of the quota weight)
and $52,658 for shark fins (based on the 5 percent shark fin to carcass
ratio). Therefore the estimated revenue for the 2008 first trimester
season would be approximately $75,430. While there may be slight
positive economic impacts as a result of a limited LCS season in the
Gulf of Mexico coupled with a South Atlantic LCS closure causing prices
to increase, the intense fishing period may also cause a temporary glut
in the market, and therefore, a reduction in the ex-vessel price of
shark products or less
[[Page 67585]]
efficient fishing operations thus reducing the quality of the shark
products landed. Overall, NMFS expects that the small amount of LCS
quota available and short season would likely result in negative
economic impacts in the Gulf of Mexico region.
The LCS quota in the North Atlantic region for the first trimester
season of 2008 would be 10.7 mt dw. The ex-vessel prices only provide
the value of LCS flesh in the North Atlantic region and not for shark
fins; therefore an average of $18.43 was taken of the ex-vessel price
for shark fins in the South Atlantic and Gulf of Mexico regions to
calculate approximate revenue from the available quota. The approximate
value of the 10.7 mt dw adjusted quota for the 2008 first trimester
season in the North Atlantic region would be $13,415.
Under alternative 1, the estimated total value of the adjusted 2008
first trimester LCS quota is $75,430 for the Gulf of Mexico region and
$13,415 for the North Atlantic region. Due to the LCS closure in the
South Atlantic region, under alternative 1, a negative economic impact
totaling $20,243 in lost revenues would occur. The estimated total
overall revenue under alternative 1 for all regions would be $68,602.
Some of the impacts from these reduced revenues might be mitigated
somewhat for vessels that can fish for SCS and pelagic sharks or in
other HMS and non-HMS fisheries. However, these opportunities would
likely be limited and result in additional costs associated with
adjusting current fishing practices.
With regards to SCS, alternative 1 would maintain existing
procedures for addressing regional trimester over- and underharvests
for SCS when establishing the regional quotas and seasons for the first
trimesters of 2008. There were no overharvests of SCS in any region
during the 2007 first trimester season. No change in economic impacts
would be realized in the North Atlantic, South Atlantic, and Gulf of
Mexico regions since these regions would be open, with ample quota,
during the first trimester of 2008 under the no action alternative.
Based on the ex-vessel price per pound of SCS in the North Atlantic,
South Atlantic, and Gulf of Mexico regions potential revenue for flesh
would be $0.43, $0.55, and $0.53, respectively. Potential revenue from
SCS may help offset lost revenue in the LCS fishery due to short
seasons and a closure.
Alternative 2 would combine the North Atlantic, South Atlantic and
Gulf of Mexico regions for the LCS fishery into one region. Combining
the 2008 first trimester baseline quota for all three regions would
result in a baseline quota of 317.8 mt dw. Accounting for the 2007
first trimester overharvests in all three regions of 239.8 mt dw, would
result in an adjusted quota of 78 mt dw. NMFS used the 2005 total ex-
vessel annual revenue data for these calculations because region
specific data was not available for all regions in 2006. Based on total
ex-vessel annual revenues in all regions combined in 2005 of $0.48 per
pound dress weight of flesh and $17.94 per pound of shark fins, the
value of the 239.8 mt dw reduction from the baseline quota allocation
in all the regions is approximately $109,349 for LCS flesh (95 percent
of the quota weight) and $215,101 for shark fins (based on the 5
percent shark fin to carcass ratio). Therefore, the 2007 first
trimester overharvest in the South Atlantic and Gulf of Mexico regions
is estimated to have a direct revenue impact on the LCS commercial
fishery, when combining the regions, of approximately $324,450. The
value of the 78 mt dw combined quota that would allow the season to be
open for six days is approximately $35,568 for LCS flesh (95 percent of
the quota weight) and $69,966 for shark fins (based on the 5 percent
shark fin to carcass ratio). Therefore, the estimated revenue for the
LCS 2008 first trimester season under alternative 2, with all regions
combined would be approximately $105,534. Derby style fishing
conditions and safety at sea concerns may occur as a result of the
shortened season causing negative social impacts. The six day season
may cause a temporary glut of shark products in the market and
therefore a reduction in the ex-vessel price of shark products or less
efficient fishing operations thus reducing the quality of the shark
products landed. Under these conditions, it is likely the estimated
revenue for all regions would be less than $105,534. Combining the
regions would likely have negative economic impacts on regions that do
not have sharks present year round. The North Atlantic region may be
disadvantaged as a result of combining the three regions into one
region. Dealers in all regions, but particularly in the North Atlantic
region, would also be affected, possibly even more so than vessels, as
the likelihood of having shark products consistently would be
decreased. Overall, negative economic impacts would result from the
small amount of LCS quota available and short season in all regions.
NMFS did not prefer this alternative because negative consequences of
establishing a single region combined with a substantially shortened
season might include derby-style fishing and safety at sea concerns, as
well as decreased fishing efficiency with resulting decreased survival
rates for bycatch. Additionally, negative ecological impacts to
overfished shark species could occur if all regions were combined and
opened for a short time period. Under alternative 2, the SCS fishery
would remain the same as in the no action alternative and no adverse
economic impacts are expected since these regions would be open, with
ample quota, throughout the entire first trimester of 2008.
Alternative 3, the preferred alternative would close the LCS
fishery in the North Atlantic, South Atlantic and Gulf of Mexico
regions for the entire 2008 first and second trimester seasons. The SCS
and pelagic shark fisheries would be open in all three regions on
January 1, 2008, and no adverse economic impacts are expected since
these regions would be open, with ample quota, throughout the first
trimester of 2008. If Amendment 2 to the Consolidated HMS FMP is not
finalized and effective before the start of the 2008 second trimester
season the SCS and pelagic shark fisheries will open in all regions on
May 1, 2008 with the baseline quotas.
Closing the LCS fishery in all three regions would have slightly
more negative economic impacts than the no action alternative but this
was chosen due to the result in positive ecological impacts for
overfished sandbar and dusky sharks, protected species and other LCS
species compared to the no action alternative. Under this alternative,
the South Atlantic region would be closed during the 2008 first
trimester season similar to alternative 1. However, unlike alternative
1, the Gulf of Mexico region would be closed. The estimated lost
revenue as a result of this closure would be approximately $75,430,
which would be the approximate revenue lost due to all regions being
closed to LCS fishing during the 2008 first trimester season. The North
Atlantic region would also be closed under this alternative but this
closure is not expected to have a significant economic impact because
LCS are not typically in the North Atlantic region during the first
trimester. Due to the small landings in this region during the first
trimester, it is not expected that the North Atlantic would benefit
economically from the 10.7 mt dw of quota available for the 2008 first
trimester. From 2004-2007 only an average of 0.4 mt dw of LCS was
landed in this region during the entire first trimester season.
Therefore, closing all three regions to LCS fishing as in the final
rule would have only a slightly different economic impact than the no
[[Page 67586]]
action alternative. Atlantic shark fishermen may pursue other options
as a result of closing the LCS fishery for the 2008 first and second
trimesters including transferring fishing effort to other fisheries for
which they are permitted, acquiring new permits to participate in other
fisheries or relinquishing their permits and leaving the fishing
industry.
List of Subjects in 50 CFR Part 635
Fisheries, Fishing, Fishing vessels, Foreign relations, Imports,
Penalties, Reporting and recordkeeping requirements, Treaties.
Dated: November 26, 2007.
Samuel D. Rauch III
Deputy Assistant Administrator for Regulatory Programs, National Marine
Fisheries Service.
0
For reasons set out in the preamble, 50 CFR part 635 is amended as
follows:
PART 635--ATLANTIC HIGHLY MIGRATORY SPECIES
0
1. The authority citation for part 635 continues to read as follows:
Authority: 16 U.S.C. 971 et seq.; 16 U.S.C. 1801 et seq.
0
2. In Sec. 635.27, paragraphs (b)(1)(i) and (b)(1)(vi)(A) introductory
text are revised to read as follows:
Sec. 635.27 Quotas.
* * * * *
(b) * * *
(1) * * *
(i) Fishing seasons. The commercial quotas for large coastal
sharks, small coastal sharks, and pelagic sharks will be split among
three fishing seasons: January 1 through April 30, May 1 through August
31, and September 1 through December 31. NMFS may consider merging or
closing any of the fishing seasons pursuant to paragraph (b)(1)(vi) of
this section.
* * * * *
(vi) * * *
(A) NMFS will adjust the next year's fishing season quotas for
large coastal, small coastal, and pelagic sharks to reflect actual
landings during any fishing season in any particular region. For
example, a commercial quota underharvest or overharvest in the fishing
season in one region that begins January 1 will result in an equivalent
increase or decrease in the following year's quota for that region for
the fishing season that begins January 1. NMFS may consider merging or
closing any of the fishing seasons and relevant quotas in any region
when there is limited available quota in one or more seasons.
* * * * *
[FR Doc. E7-23160 Filed 11-28-07; 8:45 am]
BILLING CODE 3510-22-S