[Federal Register Volume 62, Number 116 (Tuesday, June 17, 1997)]
[Proposed Rules]
[Pages 32734-32737]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15704]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 970520118-7118-01; I.D. 050197A]
RIN 0648-AJ00


Fisheries of the Exclusive Economic Zone Off Alaska; Individual 
Fishing Quota Program; Standard Allowances for Ice and Slime

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 issues a proposed rule that would establish standard 
allowances for ice and slime found on unwashed Pacific halibut and 
sablefish landed in the Individual Fishing Quota (IFQ) fisheries for 
these species and incorporate them into the conversion factors for 
halibut and product recovery rates for sablefish used by NMFS to debit 
IFQ accounts. This action is necessary to correct inaccuracies in the 
accounting process for landed IFQ product that are currently occurring 
because up to 15 percent of the industry participants have been 
adjusting the ``initial accurate weight of . . . product obtained at 
the time of landing'' by up to 9 percent to account for ice and slime. 
Such adjustments are not allowed under the existing regulations. The 
proposed rule would maintain the requirement that all processors must 
report the actual scale weight at the time of landing with no 
adjustments, but would revise the conversion factors and recovery rates 
used by NMFS for debiting IFQ accounts to include a standard allowance 
for ice and slime found on landed IFQ product.

DATES: Comments must be received by July 17, 1997.

ADDRESSES: Comments must be sent to Ronald J. Berg, Chief, Fisheries 
Management Division, Alaska Region, NMFS, 709 West 9th Street, Room 
453, Juneau, AK 99801, or P.O. Box 21668, Juneau, AK 99802, Attn: Lori 
J. Gravel. Copies of the Environmental Assessment/Regulatory Impact 
Review for this action may be obtained from the above address.

FOR FURTHER INFORMATION CONTACT: John Lepore, 907-586-7228.

SUPPLEMENTARY INFORMATION:

Background

    The U.S. groundfish fisheries of the Gulf of Alaska and the Bering 
Sea and Aleutian Islands in the exclusive economic zone are managed by 
NMFS pursuant to the fishery management plans (FMPs) for groundfish in 
the respective management areas. The FMPs were prepared by the North 
Pacific Fishery Management Council (Council) pursuant to the Magnuson-
Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act), 
16 U.S.C. 1801 et seq., and are implemented by regulations for the U.S. 
fisheries at 50 CFR part 679. The Northern Pacific Halibut Act of 1982 
(Halibut Act), 16 U.S.C. 773 et seq., authorizes the Council to 
develop, and NMFS to implement, regulations applicable in Convention 
waters to allocate halibut fishing privileges among U.S. fishermen.
    Under these authorities, the Council developed the IFQ program, a 
limited access management system for the fixed gear Pacific halibut and 
sablefish fisheries. NMFS approved the IFQ program in November 1993 and 
fully implemented the program beginning in March 1995. The Magnuson-
Stevens Act and the Halibut Act authorize the Council and NMFS to make 
regulatory changes to the IFQ program that are consistent with the FMPs 
and that are

[[Page 32735]]

necessary to conserve and manage the fixed gear Pacific halibut and 
sablefish fisheries.

Rationale for Establishing Standard Allowances for Ice and Slime

    Accurately accounting for the harvest of IFQ species is one of the 
important features of the IFQ program. This action is being proposed to 
prevent inaccurate accounting of harvests caused by up to 15 percent of 
the industry adjusting by up to 9 percent the ``initial accurate weight 
of . . . product obtained at the time of landing'' they are required to 
report to NMFS to account for ice and slime on unwashed Pacific halibut 
and sablefish managed under the IFQ program. The present regulations 
neither establish standard allowances for ice and slime nor allow 
participants to adjust the weights for reporting purposes to account 
for ice and slime.
    NMFS believes that allowances for ice and slime should be made when 
it debits an IFQ account and proposes to apply uniform allowances for 
unwashed product. To ensure that NMFS can determine the actual amount 
of Pacific halibut and sablefish harvested by participants, deductions 
cannot be allowed to vary from 0 to 9 percent as anecdotal information 
from the industry suggests and must be applied to all product 
containing ice and slime.
    Further, anecdotal reports from the industry indicate that some 
purchasers of IFQ halibut and IFQ sablefish have used deductions as a 
method to induce participants to deliver their harvest to them. For 
instance, if a purchaser of IFQ product uses a larger percentage 
deduction for ice and slime, a smaller amount of IFQ halibut or IFQ 
sablefish is reported for debiting a participant's IFQ account. This 
method of ``capturing'' a participant's business is unfair to other 
purchasers of IFQ halibut and sablefish who do not make any adjustment 
or who at least use a smaller, more accurate percentage for the 
deduction, and could harm the resource, a portion of which is being 
harvested but not accounted for, because it is reported as ``ice and 
slime'' by the purchaser. Establishing standard allowances for ice and 
slime and having NMFS apply them for all participants would ``level the 
playing field'' for IFQ purchasers and participants.
    This proposed rule would incorporate in the conversion factors used 
by NMFS when debiting halibut IFQ accounts a standard allowance for ice 
and slime for unwashed IFQ halibut product of 2 percent. This allowance 
is based on long-standing industry convention. For example, the 
Canadian Department of Fisheries and Oceans, uses a 2-percent allowance 
for ice and slime on its Halibut Validation Log. This allowance has 
been accepted by the International Pacific Halibut Commission, the 
international body entrusted with the primary responsibility for 
managing Pacific halibut. Processors in the United States have also 
used a 2-percent allowance for ice and slime when purchasing unwashed 
Pacific halibut.
    This proposed rule also would incorporate in the product recovery 
rates used by NMFS when debiting sablefish IFQ accounts, a 2-percent 
allowance for ice and slime. While a 2-percent allowance was proposed 
by members of the fishing industry, relatively little data exist on the 
proportion of ice and slime in sablefish landings, since sablefish is a 
newly exploited fishery resource when compared to Pacific halibut. NMFS 
particularly requests comments on the appropriateness of a 2-percent 
deduction for ice and slime for unwashed IFQ sablefish.

Management Action That Would Establish Standard Allowances for Ice 
and Slime for IFQ Halibut and Sablefish Products Landed Unwashed

    This proposed rule would revise the conversion factors and product 
recovery rates used by NMFS when debiting IFQ accounts to provide a 2-
percent allowance to account for ice and slime on IFQ halibut and IFQ 
sablefish products landed unwashed. The conversion factors and recovery 
rates would not be used for IFQ halibut or IFQ sablefish products 
landed washed since ice and slime would be removed by washing before 
weighing. Because conversion factors and product recovery rates are 
applied by NMFS by product code, the following new product codes would 
be established and codified: Product code 51--Whole fish/food fish with 
ice and slime (sablefish only); product code 54--Gutted only with ice 
and slime (Pacific halibut and sablefish); product code 55--Headed and 
gutted with ice and slime (Pacific halibut only); product code 57--
Headed and gutted, Western cut, with ice and slime (sablefish only); 
and product code 58--Headed and gutted, Eastern cut, with ice and slime 
(sablefish only). The IFQ landing report regulations would continue to 
require that the participants accurately report the scale weight 
actually measured at time of landing without any adjustments. Recording 
any amount on the IFQ landing report that is different from the scale 
weight actually measured at time of landing would be a violation 
subject to penalty.

Other Changes That Would Be Made by This Action

    The following changes would be made to the regulatory text found at 
50 CFR 679.5(l)(1)(iv) and 50 CFR 679.42(c) to clarify ambiguities 
concerning IFQ program requirements and deducted amounts.
    First, the information required by 50 CFR 679.5(l)(1)(iv) to be 
reported by IFQ landing reports would be clarified by changing the 
words ``fish product weight of sablefish and halibut landed'' to ``the 
scale weight actually measured at the time of landing of the halibut or 
sablefish product.''
    Second, the requirement to ``sign any required fish ticket'' in 
Sec. 679.42(c)(3) would be separated from the requirement to sign the 
IFQ landing report. Separating those requirements would clarify that 
the IFQ landing report is the exclusive source of data used by NMFS to 
debit an IFQ account. This was always the case, notwithstanding the 
confusion caused by the two requirements being combined in the current 
regulations. Deductions to an IFQ account would continue to be 
calculated by NMFS using the scale weight actually measured at the time 
of landing and reported on the IFQ landing report and, if halibut, 
multiplying by the appropriate conversion factor, or if sablefish, 
dividing it by the appropriate product recovery rate based on the 
product code reported in the IFQ landing report. The scale weight 
actually measured at the time of landing (referred to in the current 
regulations as initial accurate scale weight of the [halibut or 
sablefish] product obtained at the time of landing) and reported in the 
IFQ landing report would continue to be the exclusive source used by 
NMFS to make all other IFQ calculations (e.g., underages and the 10-
percent adjustment policy).
    Third, the regulatory text in Sec. 679.42(c)(3) (i) and (ii) 
explaining exactly what amount for debit against an IFQ account must be 
reported to NMFS would be eliminated, since that will now appear in 50 
CFR 679.5(l)(1)(iv), the remaining language in Sec. 679.42(c)(3) (i) 
and (ii) would be moved to Sec. 679.42(c)(2), and new language would be 
added to Sec. 679.42(c)(2) specifying that the IFQ landings report will 
be the only source of data used by NMFS for debiting an account.
    Because time and locality are critical elements to the landing 
process, existing 50 CFR 679.5(l)(1)(ii)(A) requires landing reports to 
be submitted to NMFS within 6 hours after fish are offloaded and prior 
to shipment or

[[Page 32736]]

departure of the delivery vessel from the landing site, whichever 
occurs first. Therefore, the scale measurement must be made during that 
period and before the IFQ halibut or IFQ sablefish are shipped. That 
means that a scale measurement must occur prior to moving the IFQ 
halibut or IFQ sablefish away from the landing site.

Classification

    Section 304(b) of the Magnuson-Stevens Act requires NMFS, upon 
transmittal by the Council of proposed regulations prepared under 
section 303(c), to immediately initiate an evaluation of the proposed 
regulations to determine whether they are consistent with the fishery 
management plan, plan amendment, the Magnuson-Stevens Act, and other 
applicable laws. Within 15 days of initiating such evaluation, NMFS 
shall make a determination. If that determination is affirmative, NMFS 
must publish such regulations in the Federal Register, with such 
technical changes as may be necessary for clarity and an explanation of 
those changes, for a comment period of 15 to 60 days. If that 
determination is negative, NMFS must notify the Council in writing of 
the inconsistencies and provide recommendations on revisions that would 
make the proposed regulations consistent with the fishery management 
plan, plan amendment, the Magnuson-Stevens Act, and other applicable 
laws. Furthermore, the Northern Pacific Halibut Act authorizes the 
Secretary of Commerce to promulgate regulations concerning halibut 
proposed by the Council that are in addition to, and not in conflict 
with regulations adopted by the International Pacific Halibut 
Commission. This proposed rule was determined to be consistent with the 
applicable fishery management plan and all applicable laws.
    The Assistant General Counsel for Legislation and Regulation of the 
Department of Commerce certified to the Chief Counsel for Advocacy of 
the Small Business Administration that this proposed rule, if adopted, 
will not have a significant economic impact on a substantial number of 
small entities as follows:

    This proposed rule, by establishing standard allowances for ice 
and slime found on Pacific halibut and sablefish managed under the 
IFQ program, is intended to account more accurately for the actual 
weight of IFQ halibut and sablefish landed by IFQ program 
participants. Although the implementation of standard allowances for 
ice and slime on IFQ halibut and sablefish is likely to affect a 
substantial number of small entities (i.e., all small entities that 
harvest and deliver fresh IFQ halibut or IFQ sablefish, and all 
small entities that receive fresh IFQ halibut or IFQ sablefish), the 
action would not result in any adverse impacts. Presently, no 
adjustment for ice and slime is allowed or made. A standard 2-
percent allowance for unwashed halibut and sablefish would provide a 
benefit to all IFQ fisherman delivering unwashed halibut or 
sablefish by increasing their annual gross revenues by an estimated 
2 percent with no change in their production or compliance costs. 
Establishing these allowances would not affect the revenues or costs 
of small entities that receive fresh IFQ halibut or fresh IFQ 
sablefish.

As a result, a regulatory flexibility analysis was not prepared.
    This proposed rule has been determined to be not significant for 
purposes of E.O. 12866.

List of Subjects in 50 CFR Part 679

    Fisheries, Reporting and recordkeeping requirements.

    Dated: June 10, 1997.
David L. Evans,
Deputy 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 OF 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, and 3631 et seq.

    2. In Sec. 679.5, paragraph (l)(1)(iv) is revised to read as 
follows:


Sec. 679.5  Recordkeeping and reporting.

* * * * *
    (l) * * *
    (1) * * *
    (iv) Information required. Information contained in a complete IFQ 
landing report shall include: Date, time, and location of the IFQ 
landing; names and permit numbers of the IFQ card holder and registered 
buyer; product type landed; product type landed; and the scale weight 
of the product as actually measured at the time of landing.
* * * * *
    3. In Sec. 679.42, paragraph (c) is revised to read as follows:


Sec. 679.42  Limitation on use of QS and IFQ.

* * * * *
    (c) Requirements and deductions. (1) Any individual who harvests 
halibut or sablefish with fixed gear must:
    (i) Have a valid IFQ card.
    (ii) Be aboard the vessel at all times during the fishing 
operation.
    (iii) Sign any required fish ticket.
    (iv) Sign the IFQ landing report required by Sec. 679.5(l)(1)(iv).
    (2) The scale weight of the halibut or sablefish product actually 
measured at the time of landing, required by Sec. 679.5(l)(1)(iv) to be 
included in the IFQ landing report, shall be the only source of 
information used by NMFS to debit an IFQ account. An IFQ account will 
be debited as follows:
    (i) For sablefish product, dividing the scale weight actually 
measured and reported at the time of landing by the product recovery 
rate found in Table 3 of this part that corresponds to the product code 
reported in the IFQ landing report; or
    (ii) For halibut product, multiplying the scale weight actually 
reported at the time of landing by the conversion factor listed in 
paragraph (c)(2)(iii) of this section that corresponds to the product 
code reported in the IFQ landing report.
    (iii) Halibut conversion factors. 

------------------------------------------------------------------------
                                                              Conversion
        Product code                Product description         factor  
------------------------------------------------------------------------
04..........................  Gutted, head on...............       0.90 
05..........................  Gutted, head off..............       1.00 
54..........................  Gutted, head on, with ice and        0.88 
                               slime.                                   
55..........................  Gutted, head off, with ice and       0.98 
                               slime.                                   
------------------------------------------------------------------------

    4. In 50 CFR part 679, Table 1 is amended by adding the following 
fish product codes/descriptions in numerical order:

                   TABLE 1 TO PART 679--PRODUCT CODES                   
------------------------------------------------------------------------
         Fish product code                       Description            
------------------------------------------------------------------------
                                                                        
                          *    *    *    *    *                         
5.................................  Headed and gutted. Pacific halibut  
                                     only                               
                                                                        
                          *    *    *    *    *                         
51................................  Whole fish/food fish with ice and   
                                     slime. Sablefish only.             
54................................  Gutted only with ice and slime.     
                                     Belly slit and visera removed.     
                                     Pacific halibut and sablefish only.
55................................  Headed and gutted with ice and      
                                     slime. Pacific halibut only.       
57................................  Headed and gutted, Western cut, with
                                     ice and slime. Sablefish only.     
58................................  Headed and gutted, Eastern cut, with
                                     ice and slime. Sablefish only.     
                                                                        
                          *    *    *    *    *                         
------------------------------------------------------------------------


[[Page 32737]]

    5. In 50 CFR part 679, Table 3 is revised by adding new product 
code columns with the following descriptions and product code numbers 
between Column 37 (Butterfly Backbone Removed) and Column 96 
(Decomposed Fish) and adding the following product recovery rate values 
for the listed FMP species ``SABLEFISH'' in new columns 51, 54, 57, and 
58:

                 Table 3 to Part 679.--Product Recovery Rates for Groundfish Species--Continued                 
----------------------------------------------------------------------------------------------------------------
                                                                                 Product code                   
                                                             ---------------------------------------------------
                                                   Species    Whole fish/               H&G western   H&G east- 
                  FMP species                        code      food fish   Gutted with    cut with     ern cut  
                                                                with ice     ice and      ice and      with ice 
                                                               and slime      slime        slime      and slime 
----------------------------------------------------------------------------------------------------------------
                                                                       51           54           57           58
                                                                                                                
                          *         *         *         *         *         *         *                         
Sablefish......................................          710         1.02         0.91         0.70         0.65
                                                                                                                
                          *         *         *         *         *         *         *                         
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[FR Doc. 97-15704 Filed 6-16-97; 8:45 am]
BILLING CODE 3510-22-P