[Federal Register: February 15, 2008 (Volume 73, Number 32)]
[Proposed Rules]
[Page 8838-8843]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15fe08-21]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 680
[Docket No. 070718364-7908-02]
RIN 0648-AV19
Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea
and Aleutian Islands Crab Rationalization Program
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Proposed rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: NMFS proposes regulations implementing Amendment 25 to the
Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner
Crabs (FMP) and a provision of the Coast Guard and Maritime
Transportation Act of 2006 (Coast Guard Act). These proposed
regulations would amend the Crab Rationalization Program. Amendment 25
to the FMP satisfies the Magnuson-Stevens Fishery Conservation and
Management Reauthorization Act of 2006 requirement for the Secretary of
Commerce to amend the FMP to authorize conversion of catcher vessel
owner quota shares and processor quota shares to newly created
converted catcher processor owner quota shares. The Secretary approved
Amendment 25 on April 12, 2007. The Coast Guard Act mandates the
Secretary to issue processing quota share to Blue Dutch, LLC, under
specific conditions. This proposed action is necessary to implement
Amendment 25 and the Coast Guard Act. This action is intended to
promote the goals and objectives of the Magnuson-Stevens Fishery
Conservation and Management Act, the Coast Guard Act, the FMP, and
other applicable law.
DATES: Comments must be received no later than March 17, 2008.
ADDRESSES: Send comments to Sue Salveson, Assistant Regional
Administrator, Sustainable Fisheries Division, Alaska Region, NMFS,
Attn: Ellen Sebastian. You may submit comments, identified by ``RIN
0648-AV19'', by any one of the following methods:
Electronic Submissions: Submit all electronic public
comments via the Federal eRulemaking Portal website at http://www.regulations.gov
.
Mail: P. O. Box 21668, Juneau, AK 99802.
Fax: (907) 586-7557.
Hand delivery to the Federal Building: 709 West 9\th\
Street, Room 420A, Juneau, AK.
All comments received are a part of the public record and will
generally be posted to http://www.regulations.gov without change. All
Personal Identifying Information (e.g., name, address) voluntarily
submitted by the commenter may be publicly accessible. Do not submit
confidential business information or otherwise sensitive or protected
information.
NMFS will accept anonymous comments. Attachments to electronic
comments will be accepted in Microsoft Word, Excel, WordPerfect, or
Adobe portable document file (pdf) formats only.
Written comments regarding the burden-hour estimates or other
aspects of the collection-of-information requirements contained in this
rule may be submitted to NMFS at the above address, and by email to
David_Rostker@omb.eop.gov or fax to 202-395-7285.
Copies of Amendment 25 and the Regulatory Impact Review (RIR) for
this action may be obtained from the NMFS Alaska Region at the address
above or from the Alaska Region website at http://www.fakr.noaa.gov/sustainablefisheries.htm
.
FOR FURTHER INFORMATION CONTACT: Glenn Merrill, 907-586-7228,
glenn.merrill@noaa.gov or Gretchen Harrington, 907-586-7228,
gretchen.harrington@noaa.gov.
SUPPLEMENTARY INFORMATION: The king and Tanner crab fisheries in the
exclusive economic zone of the Bering Sea/Aleutian Islands are managed
under the FMP. The FMP was prepared by the North Pacific Fishery
Management Council (Council) under the Magnuson-Stevens Fishery
Conservation and Management Act as amended by the Consolidated
Appropriations Act of 2004 (Public Law 108-199, section 801).
Amendments 18 and 19 to the FMP amended the FMP to include the Crab
Rationalization Program. A final rule implementing these amendments was
published on March 2, 2005 (70 FR 10174).
Crab Rationalization Program (Program)
To implement the Program in 2005, NMFS initially issued processing
quota shares (PQS), catcher vessel owner quota share (CVO QS), and
catcher processor owner quota share (CPO QS) to eligible applicants.
NMFS issued PQS and QS for nine crab fisheries in the BSAI. In 2006,
NMFS initially issued Bristol Bay red king crab (Paralithodes
camtschaticus) and snow crab (Chionoecetes opilio) PQS to the Blue
Dutch, LLC, under the requirements of section 417 of the Coast Guard
Act.
CVO QS represents an exclusive but revocable privilege that
authorizes the holder to receive an annual allocation to harvest a
specific percentage of the total allowable catch (TAC) from a fishery.
The annual allocations of TACs, in pounds, are referred to as
individual fishing quotas (IFQs).
PQS represents an exclusive but revocable privilege to receive
deliveries of a specific portion of the annual TAC from a fishery. An
annual allocation of PQS is referred to as individual processing quota
(IPQ) and expressed in pounds of crab. Harvesters holding CVO IFQ must
deliver a portion of their IFQ to processors with a like amount of IPQ
available.
For most crab fisheries, CVO QS and PQS is designated for specific
geographic regions. Crab harvested with regionally designated CVO QS is
required to be delivered to a processor in the designated region.
Likewise, a processor with regionally designated PQS is required to
accept delivery of and process crab in the designated region. Two
regional designations were created for the snow crab and Bristol Bay
red king crab fisheries. The North Region consists of all areas in the
Bering Sea north of 56[deg]20' N. latitude. The South Region is all
other areas. The regional designation of CVO QS and PQS preserves the
historic geographic distribution of landings in the fisheries.
CPO QS represents an exclusive but revocable privilege to harvest a
percentage of the TAC and process that crab onboard. Under the Program,
CPO QS does not have regional designations and is not required to be
delivered to a processor holding available IFQ.
[[Page 8839]]
Coast Guard Act
On July 11, 2006, the President signed the Coast Guard Act which
contained in section 417 a provision mandating the Secretary of
Commerce to issue PQS for the Bristol Bay red king crab and the Bering
Sea snow crab fisheries to Blue Dutch, LLC, under two specific
conditions.
First, NMFS must issue Blue Dutch PQS equal to 0.75 percent of the
total number of PQS units. NMFS issued an initial administrative
determination on July 31, 2006, to issue Blue Dutch 3,015,229 units of
Bristol Bay red king crab PQS and 7,516,253 units of snow crab PQS.
NMFS assigned a regional designation to the PQS units issued to Blue
Dutch according to the procedures established in the regulations at 50
CFR 680.40(b)(2)(iv).
Second, NMFS must issue IPQ for that PQS whenever the TAC for that
fishery is more than 2 percent higher than the most recent TAC in
effect for that fishery prior to September 15, 2005. The TAC used for
this calculation is the total TAC, which includes the CDQ allocation.
Accordingly, NMFS determined that it will issue Bristol Bay red king
crab IPQ to Blue Dutch when the TAC for that fishery is greater than
15,732,480 lb (7,136.1 mt). NMFS will issue snow crab IPQ to Blue Dutch
when the TAC for that fishery is greater than 21,350,640 lb (9,684.5
mt). This proposed rule is necessary to specify in regulations the
statutory thresholds for annually issuing IPQ to Blue Dutch to ensure
the regulations implementing the Program conform to the Coast Guard
Act. The proposed rule prohibits the transfer of the PQS units issued
under the Coast Guard Act because the Act explicitly requires NMFS to
issue the PQS to Blue Dutch.
Amendment 25
On January 12, 2007, the President signed the Magnuson-Stevens
Fishery Conservation and Management Reauthorization Act of 2006 (MSRA,
Public Law 109-479), which added a new requirement in section 122(a)
for the Secretary of Commerce, not later than 90 days after the date of
enactment of that act, to amend the FMP to modify the Program to
authorize conversion of North CVO QS and North PQS to newly created
converted CPO QS.
Amendment 25 to the FMP complies with the MSRA by amending the FMP
to authorize an eligible entity and its commonly owned affiliates to
combine North PQS and North CVO QS and exchange these shares for newly
created converted CPO QS. While the MSRA does not specifically define
which fisheries are subject to this provision, converted CPO QS would
be created for only the snow crab and Bristol Bay red king crab
fisheries, because these were the only fisheries for which the eligible
entities were initially issued North PQS and North CVO QS, as specified
in the MSRA.
NMFS published the notice of availability for Amendment 25 on
February 5, 2007 (72 FR 5255), with a public comment period that closed
on April 6, 2007. NMFS received one public comment on Amendment 25. The
commenter opposed Amendment 25 because she is quite concerned about the
legislation. The Secretary of Commerce approved Amendment 25 on April
12, 2007. This proposed rule is necessary to implement Amendment 25.
This proposed rule would authorize two types of quota share
conversions and define the entities eligible to make those conversions.
First, an eligible entity holding PQS, along with its commonly
owned affiliates, could combine its North CVO QS for Bristol Bay red
king crab or snow crab with its North PQS for that fishery and exchange
these shares for converted CPO QS on an annual basis. Entities could do
this under the following two conditions: (1) if NMFS initially issued
the entity both CPO QS and PQS under the Program, and that PQS, in
combination with the PQS of its commonly owned affiliates, is less than
7 percent of the total PQS pool for that year; or (2) if NMFS initially
issued the entity CPO QS under the Program and PQS under the Coast
Guard Act. An eligible entity would be limited to converting only the
PQS that it, along with its commonly owned affiliates, was initially
issued by NMFS.
Second, an eligible entity holding CVO QS, along with its commonly
owned affiliates, could combine its North PQS for Bristol Bay red king
crab or snow crab with its North CVO QS for that fishery and exchange
these shares for converted CPO QS on an annual basis. The only entity
that could do this would be an entity to which NMFS initially issued
CPO QS and PQS under the Program, and that PQS, in combination with the
PQS of its commonly owned affiliates, is more than 7 percent of the
total PQS pool for that year. This eligible entity would be limited to
converting only the CVO QS that it, along with its commonly owned
affiliates, was initially issued by NMFS.
According to the NMFS Official Record, three individual entities
are eligible for these new provisions. Yardarm Knot, Inc., and Blue
Dutch, LLC, would be eligible for the first type of conversion. Trident
Seafoods, Inc., would be eligible for the second type of conversion.
These entities would elect on an annual basis whether to receive
converted CPO QS and the amount of North CVO QS and North PQS they wish
to convert by completing the annual application for converted CPO QS/
IFQ permit and submitting that application along with the annual
application for crab IFQ/IPQ permit by August 1 for that crab fishing
year.
Entities applying for a converted CPO QS permit and resulting CPO
IFQ would be required to provide information on any person who is
affiliated, as the term ``affiliation'' is defined at Sec. 680.2, to
that entity and indicate the amount of PQS and CVO QS in either the BBR
or BSS crab QS fishery with a north region designation for issuance as
converted CPO QS.
The proposed rule specifies a number of provisions for converted
QS/IFQ to conform with the MSRA and the Program's implementing
regulations. Converted CPO QS and the resulting CPO IFQ would not be
transferable. This restriction on transfers is consistent with the MSRA
eligibility standards that only entities that meet the specific
requirements of the Act are eligible to receive converted CPO QS.
However, CPO IFQ derived from converted CPO QS may be issued to a
cooperative.
The proposed rule specifies that (1) eligible entities would
receive one unit of North CPO QS in exchange for one unit of North CVO
QS and 0.9 units of North PQS and (2) the amount of IFQ derived from
the converted CPO QS issued to each entity could not exceed one million
pounds per fishery during any calendar year.
Additionally, the proposed rule would implement the area of
validity in section 122(a)(4) of the MSRA by requiring that any crab
harvested under a CPO IFQ permit derived from converted CPO QS must be
offloaded in the North Region, defined in the Program as the Bering Sea
subarea north of 56[deg]20' N. latitude.
Converting PQS and CVO QS to converted CPO QS would allow entities
to harvest and process crab onboard a catcher processor. Conversion
could reduce each eligible entity's operating costs associated with
purchasing crab, processing crab on land or in a stationary floater
processor, and complying with the Program's arbitration system. NMFS
can not predict the annual amount of converted CPO QS that would be
annually issued because the participants would annually elect to
exercise this provision and need not request conversion of all CVO QS
and PQS held.
[[Page 8840]]
Sections 122(b) and (c) of the MSRA include additional requirements
for fees and off-loading for converted CPO QS; however, the statute
does not require the Secretary of Commerce to implement these
requirements and therefore they are not part of Amendment 25 and will
not be implemented by Federal rulemaking. The MSRA requires the holder
of converted CPO QS to pay a fee of five percent of the ex-vessel value
of the crab harvested with those shares to any local governmental
entities in the North Region, if the PQS used to produce the converted
CPO QS was originally derived from the processing activities that
occurred in a community under the jurisdiction of those local
governmental entities. The State of Alaska may collect from the holder
of the converted CPO QS a fee of one percent of the ex-vessel value of
the crab harvested with those shares. Additionally, crab harvested with
converted CPO QS shall be off-loaded in those communities receiving the
local governmental entities fee revenue.
Section 122(d) of the MSRA also provides that, as part of its
periodic review of the Program, the North Pacific Fishery Management
Council may review the effects on communities in the North Region of
allowing the conversion to CPO QS. Under this section, if the Council
determines that Amendment 25 adversely affects the communities, the
Council may recommend to the Secretary of Commerce, and the Secretary
may approve, changes to the Program necessary to mitigate those adverse
effects.
Section 122(e) of the MSRA requires an additional FMP amendment and
rule making to modify the use caps for processing North Region snow
crab. Under this section, custom processing arrangements do not count
against any use cap for the processing of snow crab in the North Region
by a shore-based crab processor. NMFS issued an enforcement policy on
January 19, 2007, that provides guidance to the industry on NMFS'
enforcement and interpretation of this section, which is effective
until superseded by future rulemaking. At its December meeting, the
Council adopted Amendment 27 to the FMP that would implement this MSRA
provision. NMFS intends to publish a proposed rule for Amendment 27 in
the spring of 2008.
Classification
The Assistant Administrator for Fisheries, NOAA, has determined
that this proposed rule is consistent with the Magnuson-Stevens Fishery
Conservation and Management Act and other applicable laws.
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866.
An Environmental Impact Statement/Regulatory Impact Review/Initial
Regulatory Flexibility Analysis/Social Impact Assessment was prepared
for the Program that describes the management background, the purpose
and need for the Program, the management alternatives, and the
environmental, social, and economic impacts (see ADDRESSES). With this
proposed rule, NMFS is continuing to implement the Program.
Department of Commerce Chief Counsel for Regulations has certified
to the Small Business Administration, under Section 605(b) of the
Regulatory Flexibility Act, that this proposed rule would not have a
significant economic impact on a substantial number of small entities.
NMFS finds that the proposed action is not likely to have the potential
to have a significant economic impact on any small entities
participating in these fisheries because no small entities will be
directly regulated by this action.
Section 122(a) of the MSRA defines the entities eligible to elect
to exercise this provision. According to the NMFS Official Record,
three individual entities are eligible under the MSRA for these new
provisions; Yardarm Knot, Inc., Blue Dutch, LLC, and Trident Seafoods
Corporation. These three entities do not qualify as small entities
according to the Small Business Administration criteria.
The Small Business Administration has established size criteria for
all major industry sectors in the United States, including fish
harvesting and fish processing businesses. A business involved in fish
harvesting is a small business if it is independently owned and
operated and not dominant in its field of operation (including its
affiliates) and if it has combined annual receipts not in excess of $4
million for all its affiliated operations worldwide. A seafood
processor is a small business if it is independently owned and
operated, not dominant in its field of operation, and employs 500 or
fewer persons on a full-time, part-time, temporary, or other basis, at
all its affiliated operations worldwide. A business involved in both
the harvesting and processing of seafood products is a small business
if it meets the $4 million criterion for fish harvesting operations.
Yardarm Knot and its affiliates own two large catcher processors,
the Highland Light and the Westward Wind. The Highland Light primarily
targets pollock, and the Westward Wind participates in the Bristol Bay
red king crab and Bering Sea snow crab and Tanner crab fisheries. In
addition, Yardarm Knot operates a salmon processing plant in Naknek
that employs up to 450 people during the peak season. Yardarm Knot
substantially exceeds the 500 employee threshold applicable to shore-
based processing entities.
Blue Dutch operates vessels in the crab and groundfish fisheries in
the North Pacific. Blue North Fisheries (an affiliate of Blue Dutch)
has a fleet of seven catcher processors, ranging in size from 124 ft to
180 ft. The fleet primarily participates in the hook-and-line Pacific
cod fishery in the Bering Sea. Since Blue Dutch operates no shore-based
facilities, it is not regulated by this action as a shore-based
facility. Instead it is subject to regulation as an at-sea operation
and as a catcher vessel operation. Catch by Blue Dutch and its
affiliates substantially exceeds the $4.0 million annual gross receipts
threshold applicable to at-sea operations and catcher vessels.
Trident Seafoods operates 3 factory trawlers that primarily target
pollock in the Bering Sea. Trident also owns seven at-sea processors
that produce salmon, herring, crab, and groundfish products, eleven
catcher vessels that target pollock and Pacific cod, and five catcher
vessels that primarily catch Bristol Bay red king crab, Bering Sea snow
crab, and Tanner crab (C. bairdi). Trident operates large shore-side
processing plants in Akutan, St. Paul, Kodiak, and Sand Point, Alaska,
in addition to smaller plants in other Alaska communities. The Akutan
facility is the largest seafood processing plant in North America, and
processes pollock, crab, and halibut. The St. Paul plant primarily
processes crab, and the Sand Point and Kodiak facilities process
Pacific cod, sablefish, crab, halibut, pollock, salmon, and other
groundfish. Trident's corporate offices are located in Seattle,
Washington, and the company also operates fish processing facilities in
Seattle, Anacortes, and Bellingham, Washington; Motley, Minnesota; and
Newport, Oregon. Trident substantially exceeds the 500 employee
threshold criterion applicable to shore-based processors.
A Regulatory Impact Review was prepared to assess all costs and
benefits of available regulatory alternatives. The Regulatory Impact
Review describes the potential size, distribution, and magnitude of the
economic impacts that this action may be expected to have. Copies of
the RIR prepared for this proposed rule are available from NMFS (see
ADDRESSES).
[[Page 8841]]
Collection-of-Information
This proposed rule contains a collection-of-information requirement
subject to review and approval by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act (PRA). This requirement has
been submitted to OMB for approval. Public reporting burden for annual
application for converted CPO QS and CPO IFQ permit is estimated to
average 30 minutes per response, including the time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection-of-information.
Public comment is sought regarding whether (1) this proposed
collection-of-information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; the accuracy of the burden estimate; (2) ways
to enhance the quality, utility, and clarity of the information to be
collected; and (3) ways to minimize the burden of the collection-of-
information, including through the use of automated collection
techniques or other forms of information technology. Send comments on
these or any other aspects of the collection-of-information to the
National Marine Fisheries Service (see ADDRESSES), and e-mail to
David_Rostker@omb.eop.gov, or fax to (202) 395-7285.
Notwithstanding any other provision of the law, no person is
required to respond to, nor shall any 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 680
Alaska, Fisheries, Recordkeeping and reporting requirements.
Dated: February 11, 2008.
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 680 is
proposed to be amended as follows:
PART 680--SHELLFISH FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF
ALASKA
1. The authority citation for 50 CFR part 680 is revised to read as
follows:
Authority: 16 U.S.C. 1862; Pub. L. 109-241; Pub. L 109-479.
2. In Sec. 680.2, add the definition of ``Converted CPO QS'' in
alphabetical order to read as follows:
Sec. 680.2 Definitions.
* * * * *
Converted CPO QS means CPO QS for the BBR and BSS crab QS fisheries
that is issued to the entities defined in Sec. 680.40(c)(5)(ii),
(c)(5)(iii), or (c)(5)(iv) based on the procedures established in Sec.
680.40(c)(5).
* * * * *
3. In Sec. 680.4, revise paragraph (b)(1) and add paragraphs
(b)(3) and (n) to read as follows:
Sec. 680.4 Permits.
* * * * *
(b) * * *
(1) Crab QS is issued by the Regional Administrator to persons who
qualify for an initial allocation under Sec. 680.40 or receive QS by
transfer under Sec. 680.41. Once issued, a crab QS permit is valid
until modified under paragraphs (b)(2) or (b)(3) of this section, or by
transfer under Sec. 680.41; or until the permit is revoked, suspended,
or modified pursuant to Sec. 679.43 of this chapter or under 15 CFR
part 904. To qualify for a crab QS permit, the applicant must be a U.S.
citizen.
* * * * *
(3) A converted CPO QS permit is valid until the end of the crab
fishing year for which the permit is issued.
* * * * *
(n) Contents of annual application for converted CPO QS/IFQ permit.
(1)(i) A complete application must be received by NMFS no later than
August 1 of the crab fishing year for which a person or crab harvesting
cooperative is applying to receive converted CPO QS and the IFQ derived
from that converted CPO QS. If a complete application is not received
by NMFS by this date, that person or crab harvesting cooperative will
not receive converted CPO QS and the IFQ derived from that converted
CPO QS for that crab fishing year.
(ii) To receive converted CPO QS/IFQ this application must be
accompanied by a timely and complete application for crab IFQ/IPQ
described at paragraph (f) of this section or a timely and complete
application for a crab harvesting cooperative IFQ permit described at
paragraph (m) of this section.
(2) For the application to be considered complete, all fees
required by NMFS must be paid, and any EDR required under Sec. 680.6
must be submitted to the DCA. In addition, the applicant must include
the following information:.
(i) Entity identification. Indicate the entity (Entity A, B, or C)
described in Sec. 680.40(c)(5)(ii) through (c)(5)(iv) for which you
are applying to receive converted CPO QS.
(ii) Applicant information. Enter applicant's name and NMFS Person
ID; applicant's permanent business mailing address and any temporary
mailing address the applicant wishes to use; and applicant's business
telephone number, facsimile number, and e-mail address.
(A) For Entity A or B.
(1) Identify the amount of CVO QS in either the BBR or BSS crab QS
fishery with a north region designation for issuance as converted CPO
QS; and
(2) Identify the amount of PQS in either the BBR or BSS crab QS
fishery initially issued to you by NMFS with a north region designation
for issuance as converted CPO QS.
(B) For Entity C.
(1) Identify the amount of CVO QS in either the BBR or BSS crab QS
fishery initially issued to you by NMFS with a north region designation
for issuance as converted CPO QS; and
(2) Identify the amount of PQS in either the BBR or BSS crab QS
fishery with a north region designation for issuance as converted CPO
QS.
(iii) Affiliate information for Entities A and B. (A) For Entities
A and B described in Sec. 680.40(c)(5)(ii) and (c)(5)(iii), indicate
the permanent business mailing address and any temporary mailing
address; business telephone number, facsimile number, and e-mail
address of any person who is affiliated with you based on information
provided in an annual application for IFQ/IPQ that is approved by the
Regional Administrator for that crab fishing year;
(B) Indicate the amount of PQS in either the BBR or BSS crab QS
fishery initially issued to that person with a north region designation
for issuance as converted CPO QS.
(C) Indicate the amount of CVO QS in either the BBR or BSS crab QS
fishery with a north region designation held by that person for
issuance as converted CPO QS.
(iv) Affiliate information for Entity C. (A) For Entity C described
in Sec. 680.40(c)(5)(iv), indicate the permanent business mailing
address and any temporary mailing address; business telephone number,
facsimile number, and e-mail address of any person who is affiliated
with you based on information provided in an annual application for
IFQ/IPQ that is approved by the Regional Administrator for that crab
fishing year;
(B) Indicate the amount of PQS in either the BBR or BSS crab QS
fishery with a north region designation for issuance as converted CPO
QS.
(C) Indicate the amount of CVO QS in either the BBR or BSS crab QS
fishery issued to that person with a north region
[[Page 8842]]
designation for issuance as converted CPO QS.
(v) Certification of applicant and affiliates. The applicant and
any persons who are affiliated with the applicant and named on the
application must sign and date the application certifying that all
information is true, correct, and complete to the best of his/her
knowledge and belief. If the application is completed by an authorized
representative, proof of authorization must accompany the application.
4. In Sec. 680.7, add paragraph (c)(6) to read as follows:
Sec. 680.7 Prohibitions.
* * * * *
(c) * * *
(6) For any person who is not an entity defined in Sec.
680.40(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) to:
(i) Hold converted CPO QS.
(ii) Use the CPO IFQ derived from that converted CPO QS outside of
a crab harvesting cooperative.
* * * * *
5. In Sec. 680.40, add paragraphs (c)(5), (c)(6), (e)(3), and
(j)(4) to read as follows:
Sec. 680.40 Quota Share (QS), Processor QS (PQS), Individual Fishing
Quota (IFQ), and Individual Processor Quota (IPQ) issuance.
* * * * *
(c) * * *
(5) Issuance of converted CPO QS. (i) For each crab fishing year,
the Regional Administrator may issue converted CPO QS for the BBR or
BSS crab QS fishery with a north region designation to an entity
described in paragraphs (c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) of this
section if NMFS has approved an application for converted CPO QS/IFQ
for that crab fishing year.
(ii) Entity A is comprised only of Yardarm Knot, Inc. (NMFS ID
675).
(iii) Entity B is comprised only of Blue Dutch, LLC (NMFS ID
3163).
(iv) Entity C is comprised only of Trident Seafoods, Inc. (NMFS ID
8184).
(v) NMFS will issue Entity A, B, or C described in paragraphs
(c)(5)(ii) through (c)(5)(iv) of this section one unit of converted CPO
for each unit of CVO QS and 0.9 units of PQS indicated in an approved
application for converted CPO QS/IFQ.
(vi) For each crab fishing year, the Regional Administrator will
not issue CPO QS for the BBR or BSS crab QS fishery:
(A) To Entity A described in paragraph (c)(5)(ii) of this section
that is greater than the amount of converted CPO QS that may be derived
from the amount of PQS units with a north region designation initially
issued by NMFS to Yardarm Knot, Inc. (NMFS ID 675), and any
affiliates of Yardarm Knot Inc. as listed on an annual application for
converted CPO QS/IFQ for that crab fishing year;
(B) To Entity B described in paragraph (c)(5)(iii) of this section
that is greater than the amount of converted CPO QS that may be derived
from the amount of PQS units with a north region designation initially
issued by NMFS to Blue Dutch, LLC, (NMFS ID 3163) under
paragraph (e)(3) of this section and any affiliates of Blue Dutch, LLC,
as listed on an annual application for annual application for converted
CPO QS/IFQ for that crab fishing year; and
(C) To Entity C described in paragraph (c)(5)(iv) of this section
that is greater than the amount of converted CPO QS that may be derived
from the amount of CVO QS units with a north region designation
initially issued by NMFS to Trident Seafoods, Inc., (NMFS ID
8184) and any affiliates of Trident Seafoods Inc. as listed on an
annual application for converted CPO QS/IFQ for that crab fishing year;
(vii) CPO IFQ derived from converted CPO QS may be issued to a crab
harvesting cooperative only if the entity described in paragraph
(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) of this section holding the
converted CPO QS is a member of that crab harvesting cooperative.
(6) Offloading requirements for CPO IFQ derived from converted CPO
QS. Any crab harvested under a CPO IFQ permit derived from converted
CPO QS must be offloaded in the Bering Sea subarea north of 56[deg]20'
N. lat.
* * * * *
(e) * * *
(3) PQS issued to Blue Dutch, LLC. (i) Pursuant to Public Law 109-
241, NMFS issued 3,015,229 units of PQS for the BBR crab QS fishery and
7,516,253 units of PQS for the BSS crab QS fishery.
(ii) PQS units issued to Blue Dutch, LLC, under paragraph (e)(3)(i)
of this section were assigned a regional designation according to the
procedures established in paragraph (b)(2)(iv) of this section.
(iii) PQS units issued to Blue Dutch, LLC, under paragraph
(e)(3)(i) of this section may not be transferred to any other person.
* * * * *
(j) * * *
(4) IPQ issued to Blue Dutch, LLC--(i) BBR IPQ. For each crab
fishing year that the total allowable catch for BBR CR crab is greater
than 15,732,480 lb (7,136.2 mt), NMFS will issue IPQ for the 3,015,229
units of PQS issued to Blue Dutch, LLC, pursuant to Public Law 109-241.
(ii) BSS PQS. For each crab fishing year that the total allowable
catch for BSS CR crab is greater than 21,350,640 lb (9,684.6 mt), NMFS
will issue IPQ for the 7,516,253 units of PQS issued to Blue Dutch,
LLC, pursuant to Public Law 109-241.
* * * * *
6. In Sec. 680.41:
a. Paragraphs (c)(1)(iv) through (c)(1)(vi) are redesignated as
paragraphs (c)(1)(vi) through (c)(1)(viii), respectively.
b. New paragraphs (c)(1)(iv) and (c)(1)(v) are added.
c. Paragraph (c)(1)(i) is revised.
The additions and revision read as follows:
Sec. 680.41 Transfer of QS, PQS, IFQ, and IPQ.
* * * * *
(c) * * *
(1) * * *
------------------------------------------------------------------------
Eligibility
Quota type Eligible person requirements
------------------------------------------------------------------------
(i) PQS not issued Any person None.
under Sec.
680.40(e)(3)(i)
------------------------------------------------------------------------
* * * * * * * ....................... ......................
------------------------------------------------------------------------
(iv) Converted CPO QS N/A Converted CPO QS may
not be transferred.
------------------------------------------------------------------------
(v) CPO IFQ derived N/A CPO IFQ derived from
from Converted CPO QS Converted CPO may not
be transferred.
------------------------------------------------------------------------
* * * * * * * ....................... ......................
------------------------------------------------------------------------
[[Page 8843]]
* * * * *
7. In Sec. 680.42, paragraph (a)(5) is revised, and paragraph
(a)(7) is added to read as follows:
Sec. 680.42 Limitations on use of QS, PQS, IFQ, and IPQ.
(a) * * *
(5) IFQ that is used by a crab harvesting cooperative is not
subject to the use caps in this paragraph (a) except as provided for in
paragraph (a)(7) of this section.
* * * * *
(7) In a calendar year, an entity as described in Sec.
680.40(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv), may not use more than
1,000,000 lb (453.6 mt) of IFQ derived from converted CPO QS in the BBR
or BSS crab QS fisheries.
* * * * *
[FR Doc. E8-2895 Filed 2-14-08; 8:45 am]
BILLING CODE 3510-22-S