[Federal Register Volume 61, Number 232 (Monday, December 2, 1996)]
[Proposed Rules]
[Pages 63812-63814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30634]


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DEPARTMENT OF COMMERCE
50 CFR Part 679

[Docket No. 961121323-6323-01; I.D. 111396C]
RIN 0648-AJ05


Fisheries in the Exclusive Economic Zone Off Alaska; Groundfish 
of the Bering Sea and Aleutian Islands Area; Increase Halibut Quota 
Share Use Limits in Area 4

AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and 
Atmospheric Administration (NOAA), Commerce.

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS proposes to implement a regulatory amendment to the 
Individual Fishing Quota (IFQ) Program for fixed gear Pacific halibut 
fisheries in and off Alaska. This action would increase halibut quota 
share (QS) use limits for QS holders in IFQ regulatory

[[Page 63813]]

areas 4A, 4B, 4C, 4D, and 4E (Area 4) of the Bering Sea and Aleutian 
Islands (BSAI). This action is necessary to increase individual harvest 
limits of IFQ halibut in Area 4 and is intended to improve the profits 
for IFQ halibut fishermen operating in Area 4.

DATES: Comments on the proposed rule and supporting documents must be 
received by January 2, 1997.

ADDRESSES: Comments must be sent to Ronald J. Berg, Chief, Fisheries 
Management Division, Alaska Region, NMFS, Room 453, 709 West 9th 
Street, Juneau, AK 99801, or P.O. Box 21668, Juneau, AK 99802, 
Attention: Lori J. Gravel.
    Copies of the environmental assessment/regulatory impact review/
initial regulatory flexibility analysis (EA/RIR/IRFA) are available 
from the North Pacific Fishery Management Council, 605 West 4th Avenue, 
Suite 306, Anchorage, AK 99501.

FOR FURTHER INFORMATION CONTACT: James Hale, 907-586-7228.

SUPPLEMENTARY INFORMATION:

Background

    The fixed gear halibut fishery is managed by the IFQ Program, a 
limited access system for fixed gear Pacific halibut (Hippoglossus 
stenolepis) and sablefish (Anoplopoma fimbria) fisheries in and off 
Alaska. The North Pacific Fishery Management Council (Council), under 
authority of the Magnuson-Stevens Fishery Conservation and Management 
Act and the Northern Pacific Halibut Act of 1982 (Halibut Act), 
recommended the IFQ Program to reduce excessive fishing capacity, while 
maintaining the social and economic character of the fixed gear fishery 
and the Alaskan coastal communities where many of these fishermen are 
based. NMFS implemented the IFQ Program in 1995. Various constraints 
were placed on QS and IFQ that limit consolidation of QS and ensure 
that practicing fishermen, rather than investment speculators, retain 
harvesting privileges. Use limits on BSAI sablefish QS are written into 
the Fishery Management Plan (FMP) for the Groundfish Fishery of the 
Bering Sea and Aleutian Islands Area. This action does not propose any 
change to sablefish QS use limits. No FMP for halibut exists; the 
halibut fishery is subject to the regulations of the International 
Pacific Halibut Commission (IPHC) and additional management measures 
developed by the Council that allocate harvesting privileges among U.S. 
fishermen. The Halibut Act provides NMFS, in consultation with the 
Council, with authority to implement such allocation measures through a 
regulatory amendment.
    Limits on QS use were created in response to concerns that an 
unrestricted market for QS could result in a few powerful interests 
controlling most of the IFQ landings and thus result in excessive 
decreases in the number and demographic distribution of vessels and 
fishermen participating in the fixed gear halibut fishery. The use 
limits restrict the amount of QS that a single QS holder may use to 
harvest IFQ species. Current regulations at 50 CFR 679.42(f)(3) allow a 
single QS holder to use no more than \1/2\ percent (0.005) of the total 
amount of halibut QS for IFQ regulatory areas 4A, 4B, 4C, 4D, and 4E 
combined, unless the amount in excess of this limit was received in the 
initial allocation of QS. The \1/2\ percent limit for these regulatory 
areas combined limited QS use to 165,015 QS units per IFQ holder in 
1996.
    The amount of halibut, in pounds, that a fisherman is allowed to 
harvest each year is calculated annually by dividing the number of QS 
units a fisherman holds by the QS pool, the total of all QS for each 
respective IFQ regulatory area. From the resulting figure is derived 
the percentage of the catch limit of halibut that a fisherman may 
harvest in each IFQ regulatory area for which the fisherman holds QS. 
This percentage is then multiplied by the catch limit in each IFQ 
regulatory area determined annually for halibut by the IPHC. The 
mathematical formula for deriving IFQ pounds from QS is given at 50 CFR 
679.40(c). Because the total allowable catch can change annually in 
response to changes in fish stocks, IFQ based on a certain amount of QS 
can also vary from year to year. The QS pool can also change as appeals 
are decided and additional QS issued, or as QS are revoked due to 
violations.
    In 1995, representatives of the fishing industry testified to the 
Council that the limited profits available from halibut harvests under 
the \1/2\ percent limit were insufficient to justify the expense of 
traveling to remote fishing grounds in the western BSAI. To further 
exacerbate this problem, most QS are distributed among IFQ regulatory 
areas 4A, 4B, 4C, 4D, and 4E. Hence, QS units result in differing 
amounts of IFQ poundage for each specific regulatory area. For example, 
in 1996, the Area 4 use limit of \1/2\ percent (165,015 QS units) 
resulted in 32,813 IFQ lb for IFQ regulatory area 4B, but only 16,005 
IFQ lb for IFQ regulatory area 4C. Moreover, because the current use 
limit is expressed as a percentage of the QS pool--and the size of the 
QS pool can vary from year to year--a fisherman's QS holdings that are 
at the use limit in one year could exceed the use limit in another year 
without the fisherman adding more QS to his holdings.
    At its meeting in January 1996, the Council initiated an analysis 
of options for increasing Area 4 halibut use limits from the current 
one-half percent to a range of from 1 percent to 2 percent and, at its 
next meeting in April 1996, approved the analysis for public review. 
The Council took final action to recommend a regulatory amendment 
increasing the use limits to 1\1/2\ percent at its meeting in June 
1996. Under this proposal, the halibut QS use limit in Area 4 would be 
increased from one-half percent to 1\1/2\ percent of the QS pool. This 
would allow halibut QS holders currently at the present limit to 
increase their QS and would provide greater economic incentive to 
harvest halibut in remote areas of the western BSAI.
    Current regulations at 50 CFR 679.42 set the use limit as a 
percentage of the QS pool in any given year; this action would set the 
use limit for Area 4 at 1\1/2\ percent of the 1996 QS pool for a total 
of 495,044 QS units. For consistency, regulations at 50 CFR 679.42(f) 
(1) and (2), which set halibut QS use limits for IFQ regulatory areas 
2C, 3A, and 3B, would be revised also to set the halibut QS use limit 
for all IFQ regulatory areas at a fixed number of QS units rather than 
a percentage of the annual QS pool. By setting the use limit at a fixed 
number of QS units, this action would provide QS holders with an 
unchanging QS limit that will not vary according to the size of the QS 
pool. While the amount of IFQ produced from a certain amount of QS will 
vary from year to year, an invariable use limit would allow QS holders 
to judge more accurately whether their holdings exceed the use limit.

Classification

    This proposed rule has been determined to be not significant for 
purposes of E.O. 12866.
    The Council prepared an IRFA as part of the RIR, which describes 
the impact this proposed rule would have on small entities, if adopted. 
A copy is available (see ADDRESSES). Approximately 500 halibut QS 
holders in regulatory areas 4A through 4D would benefit from an 
increase in the Area 4 QS use limit, either as QS buyers or sellers. 
Area 4E would not be affected by this action, because all of the 
halibut QS in this area is assigned to the CDQ Program, which would not 
be impacted by this rule. Under this proposed action, 45 QS holders 
would be allowed to increase

[[Page 63814]]

their holdings above the current limit to the new limit. Because 
blocked QS are limited by block and vessel category restrictions, 
unblocked QS units are more likely to be transferred. The unblocked 
halibut QS units in regulatory areas 4A through 4D equal approximately 
2.1 million lb (952 metric tons) of halibut worth more than $4.6 
million in exvessel value. Therefore, this proposed action would have a 
significant positive impact on a substantial number of small 
businesses. It would significantly improve the profitability of 
operations for fishermen wishing to harvest IFQ halibut in remote areas 
of the western BSAI.

List of Subjects in 50 CFR Part 679

    Alaska fisheries, Reporting and recordkeeping requirements.

    Dated: November 25, 1996.
Gary Matlock,
Acting Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

    For the reasons set out in the preamble, 50 CFR Part 679 is 
proposed to be amended as follows:

PART 679--FISHERIES IN THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA

    1. The authority citation for 50 CFR Part 679 continues to read as 
follows:

    Authority: 16 U.S.C. 773 et seq., 1801 et seq.

    2. In Sec. 679.42, paragraphs (f)(1) through (f)(3) are revised to 
read as follows:


Sec. 679.42  Limitations on use of QS and IFQ.

* * * * *
    (f) * * *
    (1) IFQ regulatory area 2C. 599,799 units of halibut QS.
    (2) IFQ regulatory areas 2C, 3A, and 3B. 3,005,646 units of halibut 
QS.
    (3) IFQ regulatory areas 4A, 4B, 4C, 4D, and 4E. 495,044 units of 
halibut QS.
* * * * *
[FR Doc. 96-30634 Filed 11-29-96; 8:45 am]
BILLING CODE 3510-22-P