[Federal Register Volume 62, Number 158 (Friday, August 15, 1997)]
[Proposed Rules]
[Pages 43866-43898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21169]



[[Page 43865]]

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Part IV





Department of Commerce





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National Oceanic and Atmospheric Administration



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50 CFR Part 679



Fisheries of the Exclusive Economic Zone Off Alaska; License Limitation 
Program; Community Development Quota Program; Proposed Rule

  Federal Register / Vol. 62, No. 158 / Friday, August 15, 1997 / 
Proposed Rules  

[[Page 43866]]



DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 970703166-7166-01; I.D. 060997A]
RIN 0648-AH65


Fisheries of the Exclusive Economic Zone Off Alaska; License 
Limitation Program; Community Development Quota Program

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 implement Amendment 39 
to the Fishery Management Plan for the Groundfish Fishery of the Bering 
Sea and Aleutian Islands Area (BSAI), Amendment 41 to the Fishery 
Management Plan for Groundfish of the Gulf of Alaska (GOA), and 
Amendment 5 to the Fishery Management Plan for the Commercial King and 
Tanner Crab Fisheries in the Bering Sea/Aleutian Islands (BS/AI). These 
amendments submitted by the North Pacific Fishery Management Council 
(Council) would establish a License Limitation Program (LLP) and expand 
the Community Development Quota (CDQ) Program. The LLP would limit the 
number, size, and specific operation of vessels that may be used in 
fisheries for groundfish, other than demersal shelf rockfish east of 
140 deg. W. long. and sablefish managed under the Individual Fishing 
Quota (IFQ) program for Pacific halibut and sablefish, in the exclusive 
economic zone (EEZ) off Alaska. The LLP also would limit the number, 
size, and specific operation of vessels that may be used in fisheries 
for crab species managed pursuant to the Fishery Management Plan (FMP) 
for Commercial King and Tanner Crab Fisheries of BS/AI. The CDQ program 
would be expanded by including in CDQ allocations a percentage of the 
total allowable catch (TAC) of groundfish in the BSAI and crab species 
in the BS/AI that is not currently included in the existing CDQ 
programs for pollock, halibut, and sablefish.

DATES: Comments must be received by September 29, 1997.

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

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

SUPPLEMENTARY INFORMATION: The U.S. groundfish fisheries of the GOA and 
the BSAI in the EEZ are managed by NMFS pursuant to the FMPs for 
groundfish in the respective management areas. The commercial king crab 
and Tanner crab fisheries in the BS/AI are managed by the State of 
Alaska with Federal oversight, pursuant to the FMP for those fisheries. 
The FMPs were prepared by the 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 U.S. 
fisheries at 50 CFR part 679. General regulations at 50 CFR part 600 
also apply.

License Limitation Program--Background Information

    The LLP is the first stage in fulfilling the Council's commitment 
to develop a comprehensive and rational management program for the 
fisheries in and off Alaska. The Council first considered the 
comprehensive rationalization plan (CRP) at its meeting in November 
1992. Experts on limited-entry programs were invited to testify at that 
meeting, and the Council reviewed initial CRP proposals from the 
fishing industry. In December 1992, the Council approved a problem 
statement describing the need for and purpose of the CRP.
    The problem statement articulated the Council's concern that the 
domestic harvesting fleet had expanded beyond the size necessary to 
harvest efficiently the optimum yield (OY) of the fisheries within the 
EEZ off Alaska. Further, it confirmed the Council's commitment to the 
long-term health and productivity of the fisheries and other living 
marine resources in the North Pacific and Bering Sea ecosystem. To 
fulfill that commitment, the Council intended to design a program that 
would efficiently manage the resources under its authority, reduce 
bycatch, minimize waste, and improve utilization so that the maximum 
benefit of these resources would be provided to present and future 
generations of fishermen, associated fishing industry sectors, fishing 
communities, consumers, and the Nation as a whole. The Council also 
committed itself to support the stability, economic well-being, and 
diversity of the seafood industry and provide for the economic and 
social needs of communities dependent on that industry.
    The problem statement also contained the following 14 issues 
identified by the Council as areas to be addressed by the CRP:
    (1) Harvesting capacity in excess of that required to harvest the 
resource.
    (2) Allocation and preemption conflicts between and within industry 
sectors, such as with inshore and offshore components.
    (3) Preemption conflicts between gear types.
    (4) Gear conflicts within fisheries where overcrowding of fishing 
gear exists due to excessive participation and surplus fishing effort 
on limited grounds.
    (5) Dead-loss such as ``ghost fishing'' by lost or discarded gear.
    (6) Bycatch loss of groundfish, crab, herring, salmon, and other 
non-target species, including bycatch that is not landed for regulatory 
reasons.
    (7) Economic loss and waste associated with discard mortality of 
target species harvested but not retained for economic reasons.
    (8) Concerns regarding vessel and crew safety that are often 
compromised in the race for fish.
    (9) Economic instability within various sectors of the fishing 
industry, and in fishing communities caused by short and unpredictable 
fishing seasons, or preemption that denies access to fisheries 
resources.
    (10) Inability to provide for a long-term stable fisheries-based 
economy in small economically disadvantaged adjacent coastal 
communities.
    (11) Reduction in ability to provide a quality product to consumers 
at a competitive price, and thus maintain the competitiveness of 
seafood products from the EEZ off Alaska on the world market.
    (12) Possible impacts on marine mammals and seabirds, and marine 
habitat.
    (13) Inability to achieve long-term sustainable economic benefits 
to the Nation.
    (14) A complex enforcement regimen for fishermen and management 
alike that inhibits the achievement of the Council's comprehensive 
goal.
    At its meeting in January 1993, the Council began evaluating the 
effectiveness of different alternatives to determine which ones would 
best meet the objectives of the CRP. These alternatives included: (1) 
Exclusive area registration; (2) seasonal allocations; (3) license 
limitation; (4) gear allocations; (5) inshore/offshore allocations; (6) 
CDQ

[[Page 43867]]

allocations; (7) trip limits; (8) IFQ for prohibited species catch; (9) 
non-transferable IFQ; (10) transferable IFQ; and (11) harvest privilege 
auctions. All the alternatives had qualities that would have helped 
achieve some of the objectives of the CRP; however, after comparing the 
strengths and weaknesses of the alternatives, the Council identified 
license limitation and transferable IFQ as the most viable 
alternatives.
    Although transferable IFQ was identified as the alternative with 
the greatest potential for solving the most issues in the problem 
statement for the CRP, several problems prevented the Council from 
choosing this alternative as the first step in the CRP process. For 
example, determinations about who should be found eligible to receive 
an initial allocation of quota or how much initial quota should be 
issued to each eligible applicant would have been exceedingly 
difficult. Also, the IFQ program for halibut and sablefish had not yet 
been implemented; therefore, any information or experience that would 
have been gained from the operation of that program was not then 
available. For these reasons, the Council, at its meeting in September 
1993, raised LLP to equal consideration with transferable IFQ as a 
management regime designed to meet the objectives of the CRP.
    In January 1994, the Council adopted its Advisory Panel's 
recommendations to expedite the LLP alternative. This decision was made 
because the industry lacked a consensus on the specific form of a 
transferable IFQ alternative and a concern about the amount of time 
that would be necessary to produce an analysis and implement a 
transferable IFQ program. The transferable IFQ alternative was not 
dropped completely; rather, it was considered by the Council as a 
potential second step in the overall CRP process. Advocates for the LLP 
argued that it was a necessary first step in the CRP process, because 
it could be implemented more expeditiously and it would provide 
stability in the fishing industry while a transferable IFQ system was 
analyzed and implemented.
    At its meeting in April 1994, the Council received an LLP/IFQ 
proposal from its State of Alaska representative. This proposal 
contained an integrated, step-wise approach consisting of an LLP 
followed by an IFQ program. This proposal became the basis for 
subsequent Council actions that culminated in June 1995 with the 
Council's adoption of the LLP which, if approved by NMFS, would be 
implemented by this proposed rule.
    By providing stability in the fishing industry and by identifying 
the field of participants in the groundfish and crab fisheries, the 
Council recommended the LLP as an interim step toward a more 
comprehensive solution to the conservation and management problems of 
an open access fishery. Although the LLP is an interim step, it 
addresses some of the important issues in the problem statement 
developed for the CRP. The LLP, through the limits it places on the 
number of vessels that could be deployed in the affected fisheries, 
would place an upper limit on the amount of capitalization that could 
occur in those fisheries. This upper limit would prevent 
overcapitalization in those fisheries at levels that could occur in the 
future if such a constraint were not present.

License Limitation Program--Operational Aspects

1. General

    The LLP would limit access to the commercial groundfish fisheries 
in the EEZ off Alaska, except for demersal shelf rockfish east of 
140 deg. W. long. and sablefish managed under the IFQ program (license 
limitation groundfish). Demersal shelf rockfish east of 140 deg. W. 
long. would be excluded from the LLP because an alternative management 
program for that species currently is under consideration. Sablefish 
would be excluded because that species is managed under the IFQ 
program. The LLP also would limit access to the commercial crab 
fisheries in the BS/AI, managed pursuant to the FMP for the Commercial 
King and Tanner Crab Fisheries in the BS/AI.

2. Nature of Licenses and Qualification Periods

    Licenses for license limitation groundfish would be issued to 
eligible applicants based on fishing that occurred from an eligible 
applicant's qualifying vessel in management areas (i.e., BSAI, GOA, or 
BSAI/GOA, or state waters shoreward of those management areas) during 
the general qualification period (GQP), and in endorsement areas 
defined by these regulations (i.e., Aleutian Islands, Bering Sea, 
Central Gulf, Southeast Outside, and Western Gulf, or state waters 
shoreward of those endorsement areas) during the endorsement 
qualification period (EQP). These licenses would authorize holders to 
conduct directed fishing for license limitation groundfish species in 
the endorsement areas designated on each license and would be 
transferrable. The GQP for license limitation groundfish would be 
January 1, 1988, through June 27, 1992, except for vessels under 60 ft 
(18.3 m) which made a legal landing of license limitation groundfish 
with pot or jig gear prior to January 1, 1995. For those vessels, the 
GQP would be extended through December 31, 1994. The Council 
recommended this extension so that vessels that entered the fishery 
after June 27, 1992, but that used gear that minimized bycatch loss and 
waste due to discard mortality, could be used for qualification. 
Qualification under this extension would be limited to one endorsement 
area to ensure that capacity would not be unduly increased. Minimizing 
bycatch loss and waste due to discard mortality are important 
objectives of the CRP (see issues (6) and (7) of the problem statement 
above). Additionally, an eligible applicant whose qualifying vessel 
``crossed-over'' to groundfish from crab under the provisions of the 
moratorium on entry by June 17, 1995, also would qualify under the GQP 
for license limitation groundfish.
    The EQP for license limitation groundfish would be January 1, 1992, 
through June 17, 1995. The area endorsement(s) designated on a 
groundfish license would authorize the holder to conduct directed 
fishing in the following areas: (1) Bering Sea Subarea; (2) Aleutian 
Islands Subarea; (3) Western Area of the Gulf of Alaska; (4) Central 
Area of the Gulf of Alaska and the West Yakutat District; and (5) 
Southeast Outside District.
    The Council designed the dual qualification periods (i.e., the GQP 
and the EQP) to account for past and recent participation in the 
affected fisheries. The GQP, which includes the qualification period 
for the moratorium on entry, would account for past fishing 
participation, and the EQP would account for the recent fishing 
participation that occurred up to the Council's final action on the LLP 
(June 17, 1995). The Council felt that it was critical that a 
qualifying vessel have fishing history in both periods, thereby showing 
past dependence and recent participation, to qualify its owner on June 
17, 1995, for a license. The Council recommended dual qualification 
periods for crab species licenses for the same reason.
    Licenses for crab species would be issued to eligible applicants 
based on fishing that occurred from the qualifying vessel in the BS/AI 
during the GQP, and for a specific species in an endorsement area 
(i.e., Adak brown king, Adak red king, Bristol Bay red king, C. opilio 
and C. bairdi, Dutch Harbor brown king, Norton Sound red king and 
Norton Sound blue king, Pribilof red king and Pribilof blue king, and 
St. Matthew blue

[[Page 43868]]

king) during the EQP. These licenses would authorize holders to conduct 
directed fishing for specific crab species in Federal waters of the 
specific areas designated on each license and would be transferrable. 
The GQP for crab species would be January 1, 1988, through June 27, 
1992. Vessels that participated in the Norton Sound king crab fisheries 
and the Pribilof king crab fisheries would be exempt from the landing 
requirements of the GQP because: (1) The Norton Sound king crab 
fisheries began to be managed by the State of Alaska under a system of 
super-exclusive registration in 1993, and (2) the Pribilof king crab 
fisheries were closed from 1988 through 1992. Eligibility for those 
fisheries would be based exclusively on participation during a separate 
EQP. Additionally, an eligible applicant whose qualifying vessel 
``crossed-over'' to crab from groundfish under the provisions of the 
moratorium on entry by December 31, 1994, also would qualify under the 
GQP for crab species.
    The EQP for crab species would vary among eight area/species 
endorsements. The EQP for (1) Pribilof red and Pribilof blue king and 
(2) Norton Sound red and Norton Sound blue king would be January 1, 
1993, through December 31, 1994. The EQP for (3) C. opilio and C. 
bairdi (Tanner crab), (4) St. Matthew blue king, (5) Adak brown king, 
(6) Adak red king, and (7) Dutch Harbor brown king would be January 1, 
1992, through December 31, 1994. The EQP for (8) Bristol Bay red king 
would be January 1, 1991, through December 31, 1994. These endorsement 
periods were designed to accommodate the different patterns of season 
openings and closures for specific crab species. For example, the 
Bristol Bay red king crab fishery was not open in 1994; therefore, a 3-
year participation window is provided by using a January 1, 1991, start 
date. The variations in the EQP for the Norton Sound king crab 
fisheries and the Pribilof king crab fisheries are explained in the GQP 
discussion above.

3. License Designations and Vessel Length Categories

    All licenses for license limitation groundfish and crab species 
would be designated for use by either catcher vessels or catcher/
processor vessels. This designation would prescribe the authorized 
behavior of the license holder on the vessel on which the license would 
be used. A catcher vessel designation on a groundfish license would 
authorize a license holder to conduct directed fishing for license 
limitation groundfish species and a catcher designation on a crab 
species license would authorize a license holder to conduct directed 
fishing for crab species. A license with a catcher vessel designation 
would not authorize a license holder to process license limitation 
groundfish or crab species. A catcher/processor vessel designation on a 
groundfish license would authorize a license holder to conduct directed 
fishing for, and process, license limitation groundfish. Similarly, a 
catcher/processor designation on a crab species license would authorize 
a license holder to conduct directed fishing for, and process, crab 
species. A license with a catcher/processor designation also would 
authorize a license holder to conduct directed fishing for but not 
process license limitation groundfish or crab species (i.e., the 
license holder is not required to process his or her catch).
    The Council also provided that persons could change the vessel 
designation on their licenses from a catcher/processor to a catcher 
vessel. This change in designation would be permanent; that is, once a 
vessel designation was changed from a catcher/processor vessel to a 
catcher vessel, the license holder would no longer be able to process 
license limitation groundfish or crab species using that license.
    The length overall (LOA) of a vessel is defined at Sec. 679.2 as 
the horizontal distance between the foremost part of the stem and the 
aftermost part of the stern, excluding bowsprits, rudders, outboard 
motor brackets, and similar fittings or attachments, measured in linear 
feet and rounded to the nearest foot. The size categories were selected 
in order to be consistent with size categories in other programs; in 
addition, some observer requirements vary with vessel size, and these 
categories are consistent with those observer requirements. The 
following convention would be used when rounding the LOA to the nearest 
foot.
    (1) When the amount exceeding a whole foot measurement is less than 
6 inches (15.2 cm), the LOA would be equal to that whole foot 
measurement. For example, if the horizontal distance of a vessel is 124 
ft, 5\3/4\ inches (37.9 m), the LOA of the vessel would be 124 ft (37.8 
m).
    (2) When the amount exceeding a whole foot measurement is greater 
than 6 inches (15.2 cm), the LOA would be equal to the next whole foot 
measurement. For example, if the horizontal distance of a vessel is 124 
ft, 6\1/8\ inches (38.0 m), the LOA of the vessel would be 125 ft (38.1 
m).
    (3) When the amount exceeding a whole foot measurement is exactly 6 
inches (15.2 cm), the LOA would be equal to that whole foot measurement 
if the number is even; however, if the number is odd, the LOA would be 
equal to the next whole foot measurement. For example, if the 
horizontal distance of a vessel is 124 ft, 6 inches (37.9 m), the LOA 
of the vessel would be 124 ft (37.8 m), but, if the horizontal distance 
of the vessel is 59 ft, 6 inches (18.1 m), the LOA of the vessel would 
be 60 ft (18.3 m).
    All licenses for license limitation groundfish and crab species 
would be issued with a specific vessel length category designated on 
the license. These categories are: (1) Category ``A'', which is 
comprised of vessels with an LOA of 125 ft (37.8 m) or greater; (2) 
category ``B'', which is comprised of vessels with an LOA from 60 ft 
(18.3 m) to 124 ft (37.5 m); and (3) category ``C'', which are vessels 
with an LOA of 59 ft (18 m) or less. A license would be issued with the 
appropriate specific vessel length category, based on the qualifying 
vessel's LOA on June 17, 1995.
    Vessels participating under the moratorium on entry may be 
lengthened to their maximum length overall (MLOA). A vessel's MLOA 
would be 1.2 times its LOA on June 24, 1992, except: (1) For a vessel 
that was under reconstruction on June 24, 1992, its MLOA would be 1.2 
times its LOA on the date reconstruction was completed; or (2) for a 
vessel that was 125 ft (37.8 m) or greater and that was under 
reconstruction on June 24, 1992, its MLOA would be its LOA on June 24, 
1992, or its LOA on the date reconstruction was completed.
    The vessel lengthening provisions of the moratorium on entry 
explained above provide some permissible flexibility to lengthen a 
vessel under the LLP. Specifically, a vessel may be lengthened to its 
MLOA under the moratorium on entry provided it was lengthened before 
June 17, 1995, or, if not, provided the lengthening does not cause the 
vessel to exceed the vessel's length category under the LLP. For 
example, a vessel that was 58 ft (17.7 m) on June 24, 1992, could be 
lengthened to 70 ft (21.4 m) under the provisions of the moratorium on 
entry. If the vessel had been lengthened before June 17, 1995, then the 
license issued would have a category ``B'' vessel length designation, 
which could be used on a vessel with an LOA from 60 ft (18.3 m) to 124 
ft (37.5 m). However, if the vessel had been lengthened after June 17, 
1995, then the license issued would have a category ``C'' vessel length 
designation (based on its LOA on June 17, 1995), which could be used on 
a vessel with

[[Page 43869]]

an LOA of 59 ft (18 m) or less. Therefore, although vessels may be 
lengthened under the provisions of the moratorium on entry, vessels may 
not be lengthened after June 17, 1995, beyond their length categories 
and still be eligible for LLP fishing with the license issued based on 
that vessel's LOA on June 17, 1995. For vessels that were lengthened 
under the provisions in the moratorium on entry, NMFS will require 
evidence of the date the vessel was lengthened, and the LOA of the 
vessel before and after that date. In addition, NMFS will require 
evidence of the vessel's LOA on June 17, 1995. In such circumstances, 
evidence bearing upon the vessel's LOA on the relevant dates could 
consist of a past marine survey, an original builder's certificate and 
any admeasurement documents submitted to the U.S. Coast Guard National 
Vessel Documentation Center, a certificate of registration that states 
the vessel's length, or other credible evidence. For the convenience of 
initial issuees and future transferees, LLP licenses issued for a 
vessel will state its MLOA.
    Difficulties have been reported with at-sea monitoring for 
compliance with vessel length categories based on the current 
definition of LOA at Sec. 679.2. In order to obtain an accurate 
measurement of LOA, a vessel must be moored to a wharf or dock upon 
which the distance between the foremost part of the stem and the 
aftermost part of the stern can be carefully marked and measured. Such 
careful marking and measurement is not possible while the vessel is at 
sea. Consequently, at-sea enforcement of fishery regulations 
incorporating the LOA definition is impaired. Moreover, vessel owners 
and operators could be inconvenienced in some situations while 
enforcement officers arrange to have a vessel's LOA measured in port.
    For these reasons, NMFS specifically requests public comments on 
alternative methods of determining or verifying LOA while a vessel is 
at sea. In particular, NMFS requests comments on the efficacy of 
redefining LOA as follows: for a vessel documented by the U.S. Coast 
Guard, the Coast Guard documented length; for an undocumented vessel 
that has been issued a certificate of registration, the length that 
appears on the vessel's certificate of registration; and for a vessel 
that is neither documented nor registered, the length as determined by 
the current definition of LOA at Sec. 679.2. If the LLP portions of the 
amendments are approved, the final rule may make these or other changes 
to the definition of LOA depending in large part upon the comments 
received during the public comment period.

4. Landing Requirements

    The landings that owners of vessels would need to qualify for a 
particular area endorsement for a groundfish license would vary 
according to vessel length category, the area, and vessel designation. 
These differing requirements are intended by the Council to account for 
differences in the operational characteristics of the fisheries, 
differences in the geographical areas in which the fisheries are 
prosecuted, and differences in the social and economic conditions that 
affect participants in the fisheries from various coastal areas. For 
instance, the dependence of fishing communities around the Gulf of 
Alaska on small vessel fleets would be accounted for by requiring only 
a single landing during the appropriate time periods for vessels less 
than 60 ft (18.3 m) LOA to qualify for an endorsement. The single 
landing requirement would be extended to catcher vessels less than 125 
ft (37.8 m) LOA in the Western Gulf because public testimony during 
Council consideration of the LLP indicated that local fleets did not 
participate in that area during the earlier portion of the EQP. 
Consequently, the Council concluded that excluding those fleets from 
adjacent fishing grounds through more stringent landing requirements 
would significantly harm local communities dependent on those 
fisheries. Catcher/processor vessels in the Western Gulf area that were 
60 ft (18.3 m) to less than 125 ft (37.8 m) LOA, would have the same 
landing requirements as all vessels of similar length in the Central 
Gulf area and Southeast Outside district because of their fishing 
capacity. Also, based on information in the LLP analysis that multiple 
landing requirements in the Bering Sea subarea and Aleutian Islands 
subarea would unduly burden small vessels, but would not affect larger 
vessels, which contributed to the largest portion of capacity in the 
fleet in those areas, the Council determined that a single landing 
requirement would best reflect the operational characteristics of the 
fisheries in those areas. Finally, the Council received public 
testimony during consideration of the LLP that some vessels that 
qualified under the moratorium on entry entered into the fishery during 
the latter portion of the EQP. The Council recommended that a four-
landing provision be added to the EQP landing requirements in certain 
areas to account for participation of these vessels. The Council felt 
that four landings would be sufficient to show that a person intended 
to remain in the fishery and that his or her participation was not 
merely speculative and opportunistic. Based on these considerations, 
the Council recommended the following landing requirements:
    For vessels in all three length categories (``A,'' ``B,'' and 
``C''), one landing of a license limitation groundfish species 
harvested in the appropriate area during the EQP to qualify their 
owner(s) for an Aleutian Islands area endorsement or a Bering Sea area 
endorsement; for vessels in length category C, one landing of license 
limitation groundfish species harvested in the appropriate area during 
the EQP to qualify their owner(s) for a Western Gulf area endorsement, 
a Central Gulf area endorsement, and a Southeast Outside area 
endorsement; for vessels in length category B designated as catcher 
vessels, one landing of license limitation groundfish species harvested 
in the appropriate area during the EQP to qualify their owner(s) for a 
Western Gulf area endorsement. Vessel length category ``B'' vessels 
would require one landing of license limitation groundfish species 
harvested in the appropriate area in each of any 2 calendar years from 
January 1, 1992, through June 17, 1995, or four landings of license 
limitation groundfish species harvested in the appropriate area between 
January 1, 1995, through June 17, 1995, for a Central Gulf area 
endorsement or a Southeast Outside area endorsement. This landing 
requirement also would apply to vessels designated as catcher/processor 
vessels and in vessel length category ``B'' for a Western Gulf area 
endorsement. Vessel length category ``A'' vessels would require one 
landing of license limitation groundfish species harvested in the 
appropriate area in each of any 2 calendar years from January 1, 1992, 
through June 17, 1995, for a Central Gulf area endorsement, a Southeast 
Outside area endorsement, and a Western Gulf area endorsement.
    The landings owners of vessels would need to qualify for a 
particular area/species endorsement for a crab species license would 
vary according to the crab species. The Council recommended differing 
requirements to ensure that incidental catches would not qualify a 
person for a license (e.g., incidentally caught Tanner crab with red or 
blue king) but allow for participation in some fisheries where a single 
landing may have indicated that a person intended to remain in a 
fishery (e.g., the Pribilof red and blue king crab fishery that was 
closed from 1988 through 1992). The following requirements were 
recommended by the Council: For a red and blue king crab license, one 
landing

[[Page 43870]]

of the appropriate crab species harvested in the appropriate fishery 
during the EQP; for a brown king and Tanner crab license, three 
landings of the appropriate crab species harvested in the appropriate 
fishery during the EQP.
    The appropriate fishery is the area, as defined in the proposed 
regulations, that corresponds to the area/species endorsement for which 
the person is seeking qualification. Only legal landings would qualify. 
As defined in the proposed regulations, a legal landing is a landing in 
compliance with Federal and state commercial fishing regulations in 
effect at the time of landing.

5. License Recipients

    Licenses would be issued to eligible applicants. Eligible 
applicants must have been eligible, on June 17, 1995 (the date of final 
Council action on the LLP), to document a fishing vessel under Chapter 
121 of Title 46, U.S.C. An eligible applicant would be the owner, on 
June 17, 1995, of a qualified vessel or, if the fishing history of that 
qualified vessel has been transferred to another person by the express 
terms of a written contract that clearly and unambiguously provides 
that the qualification for a license under the LLP has been 
transferred, the person to which the qualification was transferred by 
the express terms of a written contract. The Council recommended that 
NMFS recognize written contracts to the extent practicable; however, in 
the event of a dispute concerning the disposition of the license 
qualification by written contract, NMFS would not issue a license until 
the dispute was resolved by the parties involved. For determining the 
qualification for a license in the absence of a written contract the 
Council recommended the following: (1) If the vessel were sold on or 
before June 17, 1995, the vessel's fishing history and license 
qualification transfers with the vessel; (2) if the vessel were sold 
after June 17, 1995, the vessel's fishing history and license 
qualification remain with the seller; (3) only one license be issued 
based on the landings of any qualified vessel. For instance, a vessel's 
fishing history could not be divided so that multiple licenses could be 
issued based on separate qualifications created by that division. Also, 
if there had been multiple owners of a qualified vessel on June 17, 
1995, then one license would be issued in the name of the multiple 
owners. A qualified vessel is one from which legal landings were made 
during the appropriate qualifying periods in Sec. 679.4(i) (4) and (5) 
of this proposed rule.
    A successor-in-interest would be eligible to apply for a license in 
the place of eligible applicant if the eligible applicant, because of 
death or dissolution, could not apply for the license.
    NMFS will assemble a comprehensive database containing relevant 
data on landings, vessels, and ownership. That database will be the 
``Official Record'' regarding eligibility for a license. Persons that 
appear to be eligible, premised on the information contained in the 
Official Record, would be notified of their status and invited to 
request an application from NMFS. Other persons, who may not initially 
appear eligible to NMFS, could also request an application from NMFS. 
On receipt of the request for application, NMFS would prepare an 
application premised on information in the Official Record and send it 
to the applicant. Applicants would then have an opportunity to review 
the information provided, make changes if appropriate, and return the 
completed application to NMFS. No license would be issued unless the 
application were returned to NMFS, and NMFS determined the applicant to 
be eligible for a license.
    Applicants who disagreed with the information in the Official 
Record (i.e., applicants who contended that the information was 
incomplete or incorrect, or both) would have an opportunity to 
demonstrate the validity of their contentions. For example, if the 
official record did not contain records of landings for a vessel during 
the GQP, a person could provide State of Alaska fish tickets to 
demonstrate those landings. Similarly, if an application were submitted 
based on a claim of unavoidable circumstances, the person submitting 
the application would need to provide sufficient evidence to verify the 
claim. Further information on the requirements for a claim of 
unavoidable circumstances is provided in Section 8, Other Provisions, 
below.
    Applicants would be notified of the disposition of their 
applications (i.e., whether the application was approved, partially 
approved, or disapproved). If the application were approved, then a 
license would be issued to the applicant. If the application were 
partially approved, or disapproved, the applicant would be provided an 
opportunity to submit evidence to support any claim that NMFS could not 
verify. Evidence submitted in a timely matter would be reviewed and 
used as the basis for reconsideration. NMFS' initial determination on 
an application would stand if an applicant fails to submit 
corroborating evidence within the time period provided.
    The disapproval of an application would be an initial 
administrative determination that could be appealed under 50 CFR 
679.43. For applications for which NMFS considers additional evidence 
to support previously unsupported claims, NMFS's determination on the 
validity of the claims would be an initial administrative determination 
that could be appealed.
    If an appeal were filed and accepted, the applicant would receive a 
non-transferable license authorizing that person to conduct directed 
fishing for license limitation groundfish or crab species based on any 
approved portion of the application. Further, the non-transferable 
license would [could also] authorize directed fishing for license 
limitation groundfish or crab species based upon the denied claims 
accepted for appeal, until the appeal was resolved. If an applicant's 
appeal were denied, then that applicant would only receive a license to 
conduct directed fishing for license limitation groundfish or crab 
species based on the approved portion of the application.

6. Transfer and Reissuance of Licenses

    A license holder may request NMFS, on a form available from NMFS, 
to transfer the license to a recipient designated by the license holder 
on the request form. The designated recipient may not conduct directed 
fishing for license limitation groundfish or crab species until NMFS 
reissues the license in the name of the recipient. NMFS will not 
reissue a license unless the license holder submits a completed, 
signed, and dated request form to NMFS and NMFS determines that the 
designated recipient is a person able to document a fishing vessel 
under Chapter 121, Title 46, U.S.C., that no party to the transfer has 
any fines, civil penalties, other payments due and outstanding, or 
outstanding permit sanctions resulting from Federal fishing violations 
involving any party to the transfer, and that the transfer will not 
cause the recipient to exceed the license caps in proposed 
Sec. 679.7(i).
    When reissued, the recipient may use the license for any vessel 
designation and vessel length category originally assigned to the 
license, or on any vessel equal to, or shorter than, the MLOA set forth 
on the license, regardless of vessel length category. For example, a 
license with a MLOA of 145 ft (44.2 m) could be used on a vessel 145 ft 
(44.2 m) or shorter, regardless of whether the vessel is in category 
``A'', ``B'', or ``C'', as long as the vessel conforms with all other 
requirements, such as vessel designation and area endorsement. The 
Council

[[Page 43871]]

included this provision to allow for increased transfer flexibility.

7. License Severability and Ownership Caps

    Area endorsements for groundfish licenses or area/species 
endorsements for crab species licenses would not be severable from the 
license. For example, a person transferring a groundfish license with a 
Southeast Outside area endorsement and a Central Gulf area endorsement 
would necessarily transfer both area endorsements with the license and 
could not keep one area endorsement while transferring the other. 
Similarly, vessel designations and vessel length categories would not 
be severable from the license. The non-severability of licenses was 
recommended by the Council to prevent increased capacity in the 
affected fisheries.
    Also, for at least 3 years after implementation, a groundfish 
license and crab species license initially issued to a person would not 
be severable if those licenses resulted from the landings of the same 
qualifying vessel. The Council intends to review the issue of 
severability 3 years after implementation of the LLP. After that 
review, if the Council decides that the reason for non-severability 
(i.e., excess effort in the fisheries) has been ameliorated, then the 
Council may remove the prohibition on severing initially issued 
groundfish and crab species licenses. Groundfish licenses and crab 
species licenses obtained by transfer could not be combined with any 
other licenses held by a person and would remain separate licenses.
    A person would be limited to a maximum of ten groundfish licenses 
and five crab species licenses, unless that person is initially issued 
more than those numbers of licenses, in which case the person could 
hold more licenses than specified by the license limit. However, a 
person above the limit could not receive a new groundfish license or a 
crab species license by transfer until the number of licenses held by 
that person is below the maximum number for the respective limits. 
After obtaining transfer eligibility by dropping below the license 
limit, a person could not exceed that limit, notwithstanding the 
earlier status of being allowed to exceed that limit on initial 
issuance. These limits were recommended by the Council to prevent any 
person from obtaining an excessive share of harvest privileges in the 
affected fisheries.

8. Other Provisions

    The Council included several other provisions in the proposed LLP. 
First, the Council recommended that persons targeting species not 
included in the groundfish portion of the LLP and who are currently 
allowed to land incidentally taken license limitation groundfish 
species be authorized under the LLP to continue landing bycatch amounts 
of license limitation groundfish species without a groundfish license. 
This provision is intended to avoid the waste that occurs when bycatch 
is required to be discarded. This is especially true for programs like 
the IFQ program for sablefish and halibut, where the targeted species 
and license limitation groundfish species may be found in the same 
habitat area.
    Second, the Council recommended that the owner of a vessel who 
qualifies for a license under the LLP but whose vessel was lost or 
destroyed be eligible for the license and accompanying endorsements, 
designation, and vessel length category. This license could not be used 
for harvesting applicable species unless the vessel on which the 
license is used conforms with all the requirements of the LLP.
    Third, the Council recommended that an ``unavoidable 
circumstances'' provision be included in the LLP. This provision would 
allow the owner of a vessel on June 17, 1995, to receive a license, 
even though the vessel on which the application would be based did not 
meet all of the landing requirements necessary to qualify that owner 
for a license. That owner, hereafter applicant, would need to provide 
evidence during the application process that the vessel made a legal 
landing of license limitation groundfish species, or crab species if 
applicable, between January 1, 1988, and February 9, 1992. The 
applicant would also need to provide evidence that, due to factors 
beyond the control of the owner of the vessel at that time, the vessel 
was subsequently lost, damaged, or unable to qualify the applicant for 
a license under the criteria in Sec. 679.4(i) (4) or (5). Furthermore, 
the applicant must demonstrate:
    (1) That the owner of the vessel at that time held a specific 
intent to conduct directed fishing for license limitation groundfish 
(crab species) with that vessel during a specific time period in a 
specific area.
    (2) That the specific intent to conduct directed fishing for 
license limitation groundfish (crab species) with that vessel was 
thwarted by a circumstance that was:
    (a) Unavoidable.
    (b) Unique to the owner of that vessel, or unique to that vessel.
    (c) Unforeseen and reasonably unforeseeable to the owner of the 
vessel.
    (3) That the circumstance that prevented the owner from conducting 
directed fishing for license limitation groundfish (crab species) 
actually occurred.
    (4) That, under the circumstances, the owner of the vessel took all 
reasonable steps to overcome the circumstance that prevented the owner 
from conducting directed fishing for license limitation groundfish 
(crab species).
    (5) That license limitation groundfish (appropriate crab species) 
were harvested on the vessel in the specific area that corresponds to 
the area endorsement (area/species endorsement) for which the claimant 
is applying and the harvested license limitation groundfish (crab) was 
legally landed after the vessel was prevented from participating by the 
unavoidable circumstance but before June 17, 1995.
    If all these criteria are met to the satisfaction of NMFS, a 
license may be issued for the appropriate fishery and endorsement area. 
This provision is not designed to be a ``loop hole'' through which 
owners of vessels that have not met the qualification requirements 
could be issued licenses. If an applicant failed to demonstrate that an 
unavoidable circumstance prevented the vessel from meeting the 
qualifications in Sec. 679.4(i) (4) or (5), NMFS would not issue a 
license.
    Fourth, the Council recommended that licenses be issued to owners 
of vessels that made a legal landing of license limitation groundfish 
species harvested during the GQP in one management area and a legal 
landing of license limitation groundfish species harvested during the 
EQP in another management area. For example, suppose a vessel in length 
category ``C'' made only two legal landings of license limitation 
groundfish species. The first legal landing was of license limitation 
groundfish species harvested in the BSAI on December 31, 1991, and the 
second legal landing was of license limitation groundfish species 
harvested in the Central Gulf endorsement area on June 16, 1995. 
Although the owner of the vessel would not qualify for a license under 
the standard eligibility criteria (i.e., making a landing during the 
GQP and the EQP of license limitation groundfish species harvested in 
the same management area), this owner would qualify for a license under 
the alternative method of eligibility. Section 679.4(i)(4) (iv) and (v) 
provide that if a vessel makes a legal landing during the GQP (and not 
the EQP) of

[[Page 43872]]

license limitation groundfish species harvested in one management area 
and a legal landing during the EQP (and not the GQP) of license 
limitation groundfish species harvested in another management area, 
then the owner of the vessel would qualify for a license for the 
management area in which the vessel harvested license limitation 
groundfish species during the EQP. The owner of the vessel in the 
example above would receive a license for the Gulf of Alaska with a 
Central Gulf area endorsement.
    Fifth, the Council recommended a no-trawl zone east of 140 deg. W. 
long. (Southeast Outside District). Owners of vessels that qualify for 
a groundfish license for the Gulf of Alaska with a Southeast Outside 
area endorsement would not be able to use trawl gear in that area 
regardless of whether trawl gear were used to harvest license 
limitation groundfish species during the EQP. The proposed no-trawl 
zone is designed to prevent preemption conflicts between gear types, 
prevent fixed gear loss, and to provide for the socio-economic needs of 
communities dependent on the local fisheries in the Southeast Outside 
District.
    Three types of preemption can occur among competing gear types. 
Direct preemption occurs when competing gear types target the same 
species. Rockfish species such as rougheye, other slope, and thornyhead 
rockfish are examples of species that would be targeted by trawl gear 
and fixed gear fisheries in the Southeast Outside District. 
Establishing a no-trawl zone would eliminate direct preemption by trawl 
gear. Indirect preemption occurs when one gear type impacts or 
precludes a target fishery by another gear type by incidentally 
catching the target species. Incidental catches of species made by 
trawl gear could preclude fixed gear target fisheries that are critical 
to the socio-economic viability of small communities in Southeast 
Alaska. Indirect preemption by trawl gear also would be eliminated by 
restricting the Southeast Outside Regulatory District to fixed gear 
only. Grounds preemption occurs when the operator of a vessel using one 
type of fishing gear chooses not to fish in an area because of the gear 
type being used by the operator of another vessel in the same area. For 
example, an operator of a vessel using longline gear may be hesitant to 
deploy gear in an area in which trawl gear will be used because of the 
possibility of the longline gear being lost or damaged by the trawl 
gear. This third type of preemption also would be eliminated by the 
establishment of a no-trawl zone. Fixed gear loss occurs when trawl 
gear is towed over a fixed gear set. This loss can lead to higher 
fishing mortality due to ``ghost fishing'' (i.e., fishing that occurs 
when fish are caught on unretrieved gear).

Western Alaska Community Development Quota Program

Background Information

    The goals and purpose of the CDQ program are to allocate CDQ to 
eligible Western Alaska communities to provide the means for starting 
or supporting commercial fishery activities that will result in 
ongoing, regionally based, commercial fishery or related businesses. 
The CDQ program began in 1992 with the pollock CDQ fishery, which was 
developed by the Council as part of Amendment 18 to the BSAI FMP. The 
approved portion of Amendment 18 and the final rule implementing 
Amendment 18 (57 FR 23321, June 3, 1992) allocated pollock for the CDQ 
program only for a temporary period from 1992 through 1995. The 
amendment allocated to a pollock CDQ reserve, one-half of the 15 
percent of the pollock TAC that is placed in the non-specific reserve 
for each subarea or district of the BSAI.
    Eligible CDQ communities could apply for a CDQ allocation from the 
CDQ reserve by submitting a Community Development Plan (CDP). 
Regulations implementing the CDQ program for 1992 and 1993 (57 FR 
54936, November 23, 1992) specified the process for applying for the 
CDQ program and the required contents of CDPs. A subsequent regulatory 
amendment (58 FR 32874, June 14, 1993) implemented the CDQ program for 
1994 and 1995.
    The Council recommended reauthorizing the pollock CDQ program for 
an additional 3 years as part of Amendment 38 to the BSAI FMP, and NMFS 
approved this amendment on November 28, 1995. Regulations implementing 
the pollock CDQ program for 1996 through 1998 were published on 
December 12, 1995 (60 FR 63654, corrected 61 FR 20, January 2, 1996).
    The Council recommended adding the halibut and fixed gear sablefish 
(H/S) fisheries to the CDQ program beginning in 1995, as part of the 
IFQ program. The final rule implementing the IFQ program (58 FR 59375, 
November 9, 1993) implemented the H/S CDQ program with no expiration 
date. More background and explanation of the pollock and H/S CDQ 
programs can be found in the preambles to the above final rules.
    Regulations implementing the pollock CDQ program were codified at 
50 CFR part 675, and regulations implementing the H/S CDQ program were 
codified at 50 CFR part 676. NMFS subsequently consolidated both sets 
of CDQ regulations into one set of regulations at 50 CFR part 679, 
subpart C (61 FR 31228, June 19, 1996).
    At its meeting in June 1995, the Council recommended a further 
expansion of the CDQ program. The Council recommended that 7.5 percent 
of all BSAI groundfish TACs not already covered by a CDQ program along 
with a pro-rata share of the prohibited species catch (PSC) limit, and 
7.5 percent of the BS/AI crab be allocated to CDQ communities as 
defined in the regulations implementing the current CDQ program. The 
Council recommended that the expanded program be designed similarly to 
the current pollock CDQ program. Further, the Council did not recommend 
a termination date as currently exists for the pollock CDQ program.
    Based on the Council's recommendation to expand the CDQ program to 
include groundfish in the BSAI and crab in the BS/AI, NMFS prepared a 
CDQ Program Design. The CDQ Program Design was an outline for 
implementing the groundfish and crab CDQ programs and for combining 
them with the existing pollock and H/S CDQ programs. NMFS submitted the 
CDQ Program Design to the Council for review at its meeting in April 
1996 and requested clarification on several CDQ policy issues. This 
proposed rule is based on that CDQ Program Design and the clarification 
provided by the Council.

Expectations for Monitoring the CDQ Fisheries

    The level of accountability for catch under the multispecies CDQ 
program determines the complexity of the monitoring program and the 
resulting cost to the CDQ groups, their industry partners, and the 
public. This proposed rule is based on NMFS' description and the 
Council's approval of a CDQ program design in which individual CDQ 
groups would be eligible to receive allocations of all groundfish TAC 
species or species groups, and prohibited species to support their 
groundfish, halibut, and crab CDQ.
    Under the proposed multispecies CDQ program, NMFS would be 
responsible for monitoring and enforcing the groundfish and halibut 
CDQs. The State of Alaska (State) would be responsible for monitoring 
and enforcing the crab CDQs under authority contained in the FMP for 
the Commercial King and Tanner Crab Fisheries in the BS/AI.

[[Page 43873]]

    In the CDQ fisheries managed by NMFS, all groundfish, prohibited 
species, and halibut catch and bycatch in CDQ fisheries, including the 
existing pollock, sablefish, and halibut CDQ fisheries, would accrue to 
CDQ or prohibited species quotas (PSQ) allocated to the CDQ group. 
Catch of groundfish or halibut in excess of a CDQ or PSQ would be 
prohibited under Sec. 679.7(d)(6). Catch of the salmon, herring, and 
crab PSQ would result in the same time and area closures that exist for 
these prohibited species in the open access groundfish fisheries. 
Failure to account for all allocated bycatch species in the groundfish 
or halibut CDQ fisheries would result in the CDQ program exceeding 
groundfish and halibut PSQ allocations recommended by the Council. The 
groundfish CDQ program would not have a ``prohibited species status'' 
that would allow for continued fishing for one groundfish species once 
the quota of another groundfish species has been reached. No provision 
would be included to allow overages from the CDQ fisheries to accrue to 
TACs and PSC limits in the non-CDQ fisheries.
    Based on this program design, the multispecies groundfish and 
halibut CDQ program would require a higher level of accountability than 
any fishery NMFS is currently managing off Alaska. The existing 
pollock, sablefish, and halibut CDQ fisheries and the fixed gear 
halibut and sablefish IFQ fisheries are target fishery-based quota 
programs that do not require accounting for all TAC and PSC species in 
the catch.

Combining Existing and Proposed CDQ Programs

    NMFS proposes to combine the existing pollock and fixed gear 
halibut and sablefish CDQ programs with the proposed groundfish and 
crab CDQ programs into a single multispecies CDQ program. A combined 
CDQ program would simplify the CDP process, provide for full accounting 
of all CDQ and PSQ in the groundfish and halibut CDQ programs, apply 
NMFS' monitoring requirements equitably, and decrease the 
administrative burden on the CDQ groups, the State, and NMFS.
    Under the proposed multispecies CDQ program, each CDQ group would 
submit one CDP for all species, and CDQ allocations for all species 
would be made every 3 years. Requirements for recordkeeping and 
reporting, observer coverage, and equipment for improved catch 
estimates would be applied equally to all participants in the 
groundfish and halibut CDQ fisheries based on vessel or processor type, 
not on target fishery. For example, requirements for a longline vessel 
harvesting sablefish CDQ would be the same as the requirements for that 
vessel harvesting Pacific cod CDQ.
    At its April 1996, meeting, the Council recommended that full 
integration of the catch monitoring and equipment requirements for the 
groundfish and halibut CDQ fisheries be delayed until 1999. Therefore, 
1998 would be a transition year from the existing separate CDQ programs 
by target species to an integrated CDQ program in which all 
participants in the groundfish and halibut CDQ fisheries would follow 
the same catch monitoring and reporting requirements specified by 
vessel and processor type rather than by CDQ target fishery. In 1998, 
CDQ vessels and processors participating in the pollock and H/S CDQ 
programs would be exempt from the groundfish CDQ program catch 
monitoring regulations.
    The Council's recommendation would result in four categories of CDQ 
fisheries in 1998 and two categories in 1999 and future years. The four 
categories for 1998 would be: (1) The pollock CDQ fisheries; (2) the 
fixed gear halibut and sablefish CDQ fisheries; (3) the groundfish CDQ 
fisheries, which would exclude pollock and fixed gear sablefish; and 
(4) the crab CDQ fisheries. The multispecies CDQ fisheries would be 
divided into two categories for 1999 and future years: (1) The 
groundfish and halibut CDQ fisheries managed by NMFS; and (2) the crab 
CDQ fisheries managed by the State.

Description of CDQ Species

    The multispecies CDQ program would include the existing CDQ species 
of pollock, fixed-gear sablefish and halibut; and the proposed CDQ 
groundfish, crab, and PSQ species. The proposed CDQ groundfish species 
include all other BSAI groundfish species or species groups that have 
an annually specified TAC and are not part of the current CDQ program. 
The proposed PSQ species are defined at Sec. 679.21(b)(1) and include 
any of the species of Pacific salmon (Oncorhynchus spp.), steelhead 
trout (Oncorhynchus mykiss), halibut, Pacific herring (Clupea harengus 
pallasi), king crab, and Tanner crab. The proposed crab CDQ species 
include all king and Tanner crab species in the BS/AI that have a 
guideline harvest level (GHL) specified by the State.

CDQ Reserves, Allocations, and Quotas

    The multispecies CDQ program would assign a portion of each CDQ 
species and PSQ species to a separate CDQ reserve. The following would 
be the amount assigned to each CDQ reserve for the exclusive use of the 
CDQ program:
    (1) Pollock CDQ reserve. One-half of the pollock TAC that is placed 
in the non-specific reserve for each subarea or district of the BSAI 
would be assigned to the pollock CDQ reserve.
    (2) Halibut CDQ reserve. A separate halibut CDQ reserve would be 
implemented for the following International Pacific Halibut Commission 
(IPHC) management areas:
    (A) Area 4B. In IPHC regulatory area 4B, 20 percent of the annual 
halibut quota would be made available for the halibut CDQ program to 
eligible communities physically located in or proximate to this 
regulatory area.
    (B) Area 4C. In IPHC regulatory area 4C, 50 percent of the halibut 
quota would be made available for the halibut CDQ program to eligible 
communities physically located in this regulatory area.
    (C) Area 4D. In IPHC regulatory area 4D, 30 percent of the halibut 
quota would be made available for the halibut CDQ program to eligible 
communities located in or proximate to IPHC regulatory areas 4D and 4E.
    (D) Area 4E. In IPHC regulatory area 4E, 100 percent of the halibut 
quota would be made available for the halibut CDQ program to 
communities located in or proximate to this regulatory area.
    (3) Sablefish CDQ reserves. Two sablefish CDQ reserves would be 
established:
    (A) Fixed gear sablefish CDQ reserve. NMFS would assign 20 percent 
of the fixed gear allocation of sablefish in each subarea or district 
of the BSAI as a fixed-gear sablefish CDQ reserve. Sablefish in this 
reserve could be harvested only by vessels using fixed gear as required 
by the FMP amendment establishing the H/S CDQ program.
    (B) Sablefish CDQ reserve. NMFS would assign 7.5 percent of the 
trawl gear allocation of sablefish in each subarea or district of the 
BSAI as a sablefish CDQ reserve. Sablefish in this reserve could be 
harvested by vessels using any authorized gear because no gear 
restrictions were recommended by the Council for the multispecies CDQ 
program.
    (4) Groundfish CDQ reserves. NMFS would assign one-half of the 
amount of each groundfish TAC that is placed in the reserve for each 
subarea or district of the BSAI to a separate CDQ reserve for each 
subarea or district of the BSAI. The groundfish CDQ reserves do not 
include sablefish.
    (5) PSQ reserves. NMFS would assign seven and one-half percent of 
each of the PSC species defined at Sec. 679.21(b)(1) to a separate PSQ 
reserve.

[[Page 43874]]

    (6) Crab CDQ reserves. The Council's recommendation on crab CDQs in 
June 1995, stated that 7.5 percent of the crab GHLs in the BS/AI would 
be made available to the CDQ program at the beginning of the 
multispecies CDQ program's implementation. However, the reauthorization 
of the Magnuson-Stevens Act, which became effective in October 1996, 
requires that the crab CDQ program be phased-in according to the 
following percentages: 3.5 percent for 1998, 5.0 percent for 1999, and 
7.5 percent for the year 2000 and thereafter. These proposed 
regulations reflect the requirements of the Magnuson-Stevens Act.
    A CDQ allocation is a percentage of a CDQ reserve that is assigned 
to a CDQ group when NMFS approves a proposed CDP. A CDQ means the 
annual amount of a particular CDQ species that a CDQ group is permitted 
to catch based on a CDQ allocation that has been requested in a 
proposed CDP and approved by NMFS. A PSQ allocation means a percentage 
of a PSQ reserve that is assigned to a CDQ group. PSQ means the annual 
amount of a prohibited species that is allocated to a CDQ group based 
on a PSQ allocation.

CDQ Program Responsibilities

    The proposed multispecies CDQ program would be a Federal program in 
which the fishing privileges for CDQ are temporarily allocated by NMFS 
to the CDQ groups. In return, the CDQ groups would be responsible for 
managing the CDQ harvesting and the CDQ projects as outlined in the 
CDPs on behalf of the member communities. NMFS would have no obligation 
to allocate future CDQ or PSQ based on past allocations, and CDQ and 
PSQ fishing privileges would expire with the expiration of a CDP. NMFS 
would base its awards of CDQ and PSQ allocations to the CDQ groups on 
the merits of the proposed CDPs.
    The proposed CDPs, developed by the CDQ groups, would be the means 
for requesting CDQ and PSQ allocations from NMFS. Although NMFS would 
award the CDQ allocations to the CDQ groups, the CDQ groups would make 
the allocation requests on behalf of the eligible community(ies) that 
is (are) participating in the CDQ group. Therefore, a CDQ group would 
have a fiduciary responsibility to manage its CDQ allocations, CDQ 
projects, and assets in the best interests of the participating CDQ 
community(ies).
    A CDQ community would be represented in a CDQ group in two ways. 
First, each CDQ group's Board of Directors (Board) would be required to 
have one voting member elected by his or her community for each 
community in the CDQ group. Second, the managing organization (either 
the Board or a managing group contracted by the Board) would have to 
have a letter of support from each participating community before NMFS 
could award a CDQ allocation to the CDQ group.
    To assure that the CDQ group's business decisions represent the 
interests of the CDQ community, the community-elected board member 
would vote on the Board in a way that reflects the community's wishes. 
During the election of a Board member, the CDQ community would have the 
opportunity to review the activities of its board member and its CDQ 
group, and evaluate the board member's performance. Further, a CDQ 
community could refuse to issue a letter of support for the CDQ 
managing organization for a proposed CDP and join another CDQ group or 
form a new CDQ group.
    A CDQ group could manage the day-to-day business affairs of its CDP 
itself through its Board or could choose to contract with a managing 
organization. If a CDQ group were to contract with a managing 
organization, the CDQ group would be responsible for overseeing the 
managing organization's activities and would be held accountable by 
NMFS for all the managing organization's actions related to CDP 
management.

CDQ Application Process

    Under the proposed multispecies CDQ program, the State would 
announce a CDQ application period, during which the CDQ groups would 
submit proposed CDPs to the State. The State would then hold a public 
hearing at which the CDQ groups would present their proposed CDPs and 
give the affected public an opportunity to comment. After the public 
hearing, the State would develop recommendations for the approval of 
proposed CDPs, consult with the Council, and submit the State's 
recommendations to NMFS for review and approval or disapproval.
    The CDP would be submitted to NMFS by October 7 to provide 
sufficient time for NMFS to review the CDPs and to approve final CDPs 
and their CDQ allocations by December 31 of the application year.

The Community Development Plan

    The CDP would provide information to the State and NMFS about the 
eligible communities, the managing organization, the CDQ projects, the 
requested allocation of CDQ and PSQ species, the harvesting and 
processing partners, and how the CDQ group would account for CDQ and 
PSQ catches by these partners.
    For each allocation request, Sec. 679.30(a)(4) would require that 
the CDP identify the primary target fisheries by species and gear type, 
percentage of the target species requested, and the percentage of CDQ 
and PSQ species needed as bycatch in these fisheries.
    The fishing plan (part of the CDP) described at Sec. 679.30(a)(5) 
would be used to obtain information about the harvesting and processing 
partners in the groundfish and halibut CDQ fisheries. Specifically, the 
fishing plan would be required to contain a list of vessels and 
processors that the CDQ group proposed to authorize to participate in 
its groundfish and halibut CDQ fisheries and information about how the 
catch of CDQ and PSQ by these vessels and processors would be 
determined. The U.S. Coast Guard and NMFS Enforcement would use the 
list of eligible vessels and processors to determine whether vessels or 
processors were legally participating in the CDQ fisheries.
    A vessel or processor would be required to be listed as an eligible 
vessel in an approved CDP in order to harvest or process groundfish or 
halibut CDQ for a particular CDQ group. In addition to this 
requirement, any vessel or processor with special equipment 
requirements such as certified scales to weigh catch or an observer 
sampling station also would be required to undergo a vessel or plant 
inspection and be permitted by NMFS to participate in the CDQ 
fisheries. Vessels or processors with no additional equipment 
requirements would not be required to be permitted by NMFS. They would 
be eligible to participate in the CDQ fisheries upon approval of a CDP 
in which they were listed. More information about vessel and processor 
categories, equipment requirements, vessel and plant inspections, and 
permitting requirements are contained in a later section.
    The fishing plan also would specify how the CDQ group intended to 
make the estimates of CDQ and PSQ catch required to be reported to NMFS 
on the CDQ Catch Report. NMFS proposes to require each CDQ group to 
commit to a specific source of data and method for determining the 
weight or numbers of CDQ and PSQ catch by vessels fishing under its 
CDP, to identify the method in its CDP, and to amend the CDP before 
changing the source of data or method. CDQ groups would be prohibited 
from using any source or method other than that specified in the CDP 
and approved by NMFS to report CDQ and PSQ catch on the CDQ Catch 
Report.

[[Page 43875]]

    Section 679.32(e)(3) sets forth NMFS' standard data sources for 
verifying catch estimates. If a CDQ group designates in its CDQ 
application, in accordance with the requirements of Sec. 679.30(a)(5), 
the standard data sources set forth at Sec. 679.32(e)(3) (and, if a 
catcher vessel using non-trawl gear, specifies whether it will be 
discarding CDQ species at sea), no specific approval by NMFS of the use 
of the data sources or method would be necessary. However, if the CDQ 
group desires to use an alternative procedure such as sorting and 
weighing all catch by species on processor vessels or using larger 
sample sizes than would be required under Sec. 679.32(e)(3), it must, 
in accordance with the requirements of Sec. 679.30(a)(5), propose the 
use of the specific alternatives it wishes to use. The CDQ group would 
have to demonstrate that space is available on the processor vessel to 
store, sort, and weigh the proposed sample sizes and that additional 
observers would be provided to accomplish the increased sampling or 
monitoring of sorting and weighing by species. The group would also 
have to demonstrate, and NMFS so find, that the alternative will 
produce equivalent or better estimates, that each haul, set or pot on 
an observed vessel can be sampled by an observer for species 
composition, that, if catch is to be sorted before it is weighed, the 
sorting and weighing process will be monitored by an observer, the 
observer will be required to be on duty no more than 12 hours in each 
24-hour period and will be required to sample no more than 9 hours in 
each 24-hour period, and if the vessel uses trawl gear, the observer 
will be required to sample no more than 3 hauls in each 24-hour period. 
NMFS will review any proposed alternative and approve it in writing 
upon making the requisite determinations. An alternative can not be 
used unless specifically approved by NMFS. Alternatives to the 
requirement for a certified scale or for an observer sampling station 
will not be approved.
    NMFS would require the CDQ groups to commit to the source of 
information and the procedures that would be used to estimate CDQ and 
PSQ catch for several reasons. First, discussion of the specific catch 
accounting requirements and the differences among the various vessel 
and processor types would help to identify and resolve conflicts prior 
to the start of CDQ fishing. NMFS wants to minimize the conflicts and 
decisions that have to be addressed between the harvesting and 
processing partners and the CDQ observers after fish have been 
harvested. Second, NMFS wants to provide a means for vessels and 
processors to suggest alternative catch accounting methods that could 
improve catch estimates or work better for a particular vessel or 
plant. However, if different methods would be used, NMFS would need 
time to examine the proposals and specify conditions necessary to 
assure accurate CDQ catch estimates and reasonable working conditions 
for the CDQ observers. Finally, determining how catch estimates would 
be made in advance of the fishery would improve observer training.

Management of the Groundfish and Halibut CDQ Fisheries

Closures

    All closures for the BSAI listed in Sec. 679.22(a) would apply to 
the CDQ fisheries. As that section provides, the CDQ fisheries are 
specifically exempted from closure of the Catcher Vessel Operational 
Area to catcher/processors.

Seasons

    The provision for closure of all trawl fisheries in the BSAI 
between January 1 and January 20 at Sec. 679.23(c) would remain in 
effect for the CDQ fisheries.

Transfers of CDQ Allocations or CDQ

    Once a proposed CDP is approved by NMFS and becomes effective, the 
proposed multispecies CDQ program would allow CDQ groups to transfer 
CDQ allocations, CDQ, PSQ allocations, and/or PSQ, from one to another, 
with certain restrictions.
    CDQ Allocation. Any amount of a CDQ allocation could be transferred 
by both groups filing substantial amendments to their respective CDPs. 
The proposed requirements for a substantial amendment to a CDP appear 
at Sec. 679.30(g)(4). The transfer would become valid on January 1 of 
the calendar year following the approval of the amendments, and the 
transfer would be valid for the duration of the CDPs.
    CDQ. CDQ could be transferred in two different ways, and the 
transfer would be effective only for the calendar year in which the 
transfer occurs. First, 10 percent or less of a CDQ could be 
transferred in a calendar year by a CDQ group to another by using the 
technical amendment process. The proposed requirements for a technical 
amendment to a CDP appear at Sec. 679.30(g)(5). Second, more than 10 
percent of a CDQ could be transferred through the substantial amendment 
process.
    PSQ allocations. A PSQ allocation could be transferred by 
substantial amendment, but the transfer would have to be accompanied by 
a transfer of a CDQ allocation. NMFS would accept substantial 
amendments for the transfer of PSQ allocations only during the month of 
January. The transfer of a PSQ allocation would be effective for the 
duration of the CDPs.
    PSQ. A PSQ allocation could be transferred by substantial 
amendment, but the transfer would have to be accompanied by a transfer 
of a CDQ allocation. NMFS would accept substantial amendments for the 
transfer of PSQ allocations only during the month of January. The 
transfer of PSQ would be effective only for the remainder of the 
calendar year in which the PSQ transfer occurs.

CDQ Non-Specific Reserve

    Bycatch of some species is expected to constrain the groundfish CDQ 
fisheries and may even result in a CDQ group reaching the CDQ or PSQ 
for a bycatch species before it has harvested all of its target species 
CDQ. Therefore, NMFS proposes to create a non-specific reserve within 
the CDQ program to reduce the potential for the catch of some 
groundfish species to limit overall CDQ catch. CDQ species eligible to 
be placed in the non-specific reserve are low-valued species for which 
no target fishery currently exists but for which there is a sufficient 
buffer between the TAC and ABC. A buffer between TAC and ABC is 
required because use of the non-specific reserve may result in overall 
CDQ catches for a particular species in excess of the 7.5 percent 
allocation to the CDQ program. Only squid, arrowtooth flounder, and 
``other groundfish'' meet the criteria for the CDQ non-specific 
reserve.
    Each year, 15 percent of each CDQ group's arrowtooth flounder, 
squid, and ``other groundfish'' CDQ would be placed into a non-specific 
reserve for each CDQ group. A CDQ group would apply for a release from 
its CDQ non-specific reserve to its squid, arrowtooth flounder, or 
``other species'' CDQ through the technical amendment process.

Prohibited Species Catch Management

    The management of prohibited species catch in the groundfish CDQ 
fisheries would be modeled after the requirements of the non-CDQ 
groundfish fisheries. One exception would be that halibut PSQ would not 
be allocated between trawl and non-trawl gear. This would give CDQ 
groups more flexibility in their use of halibut PSQ. Catches of 
herring, salmon, or crab PSQ species by vessels fishing with non-trawl 
gear and catch of halibut PSQ by vessels using pot gear would not 
accrue to the respective PSQs. The only catch

[[Page 43876]]

to accrue against the non-chinook salmon PSQ would be catch of non-
chinook salmon by vessels using trawl gear from August 15 through 
October 14 in the Catcher Vessel Operational Area as defined in 
existing Sec. 679.2. The only catch to accrue against the chinook 
salmon PSQ would be catch of chinook salmon by vessels using trawl gear 
from January 1 through April 15.
    Attainment of the herring, salmon, and crab PSQs by a CDQ group 
would result in the same time and area closures required for the open 
access fisheries in Sec. 679.21. Specifically, vessels fishing under a 
CDP would be prohibited from:
    1. Using trawl gear to harvest groundfish CDQ in Zone 1 once the 
PSQ for red king crab or C. bairdi Tanner crab in Zone 1 is reached.
    2. Using trawl gear to harvest groundfish CDQ in Zone 2 once the 
PSQ for C. bairdi Tanner crab in Zone 2 is reached.
    3. Using trawl gear to harvest groundfish CDQ in Herring Savings 
Areas (HSA) once the herring PSQ is reached.
    4. Using trawl gear to harvest groundfish CDQ in the Chinook Salmon 
Savings Area from January 1 through April 15 once the chinook salmon 
PSQ is reached.
    5. Using trawl gear to harvest groundfish CDQ in the Chum Salmon 
Savings Area between September 1 and October 14 once the non-chinook 
salmon PSQ is reached.
    The CDQ representative would be responsible for monitoring the 
catch of prohibited species by vessels fishing under its CDP and for 
assuring that vessels using trawl gear stop fishing in the closed areas 
once the PSQ has been reached.
    Attainment of the halibut PSC limit in the non-CDQ groundfish 
fisheries triggers closure of groundfish fishery categories to directed 
fishing. However, no fishery categories or gear allocations are 
proposed for halibut PSQ. Therefore, the halibut PSQ would be treated 
the same as groundfish or halibut CDQ. The CDQ groups would be 
prohibited from exceeding their halibut PSQ.
    NMFS is proposing that catcher vessels using trawl gear be required 
to retain all salmon and herring PSQ and deliver them to a processor 
where they would be sorted and weighed on a certified scale. Retention 
of salmon and herring PSQ would eliminate the need for the vessel 
operator or the CDQ observer to estimate the weight or numbers of at-
sea discards, thereby improving accounting for these PSQ species. 
Unlike halibut and crab, salmon and herring are believed to have 100 
percent mortality when harvested with trawl gear, so NMFS anticipates 
that no additional mortality of these species would result from the 
retention requirement.
    Section 679.21 would be amended to allow the retention of herring 
and salmon PSQ by catcher vessels using trawl gear in the CDQ fisheries 
until the PSQ is sorted and weighed on a certified scale by a 
processor. The State would have to change its regulations to allow the 
retention and delivery of these species to shoreside processing plants.
    In order for the multispecies CDQ regulations to reflect the State 
of Alaska's administration of the CDQ program, all references to the 
Governor of the State have been removed and the ``State of Alaska'' 
inserted in their places.
    In Sec. 679.2, the definition of ``Governor'' is removed and a 
definition of ``State'' is added.

Improved Retention/Improved Utilization

    Regulations governing the retention or utilization of groundfish 
species in the non-CDQ fisheries also would apply to the groundfish CDQ 
fisheries.

Vessel Incentive Program

    NMFS proposes that catch in the groundfish CDQ program not be 
subject to the Vessel Incentive Program (VIP) regulations in 
Sec. 679.21(f). CDQ groups would receive individual allocations of 
prohibited species catch allowances and would be responsible for 
managing their fisheries within these limits.

Recordkeeping and Reporting Requirements for CDQ Groups

    Each CDQ group would be responsible for collecting and reporting 
catch data for all vessels and processors participating in its CDQ 
fisheries. This would enable each group to directly manage its CDQ 
fisheries and to be held accountable for staying within CDQ and PSQ 
allocations.
    All vessels and processors participating in the CDQ fisheries would 
be required to continue to comply with all other recordkeeping and 
reporting requirements in Sec. 679.5, such as maintaining logbooks and 
preparing weekly production reports. Among other requirements, CDQ 
catch would have to be reported separately from other catch on these 
reports, along with the CDQ group number.

The CDQ Check-In/Check-Out Report

    The CDQ representative would be required to submit a CDQ check-in/
check-out report to notify NMFS when vessels participating in the CDQ 
fisheries begin and stop CDQ fishing throughout the year. The 
notification also would help NMFS track whether the appropriate CDQ 
catch reports were being submitted.
    A check-in report would be required prior to the first CDQ fishing 
of the year and any time during the year CDQ fishing started again 
after a CDQ check-out report had been submitted. A CDQ check-out report 
would be required when any vessel switched between CDQ and non-CDQ 
fishing, stopped CDQ fishing for the remainder of the year, or was 
removed as an eligible vessel from a CDQ. The CDQ check-in/check-out 
report is described at Sec. 679.5(m).

The CDQ Catch Report

    The CDQ group would submit a weekly CDQ catch report for each 
vessel fishing CDQ. NMFS would maintain a record of the cumulative CDQ 
and PSQ catch based on the information submitted in the CDQ catch 
report. The CDQ catch report is described at Sec. 679.5(n). NMFS would 
monitor the accuracy and completeness of the CDQ catch reports by using 
information from the CDQ check-in/check-out reports, vessel and 
processor reports, and observer data. NMFS would make an independent 
estimate of CDQ and PSQ catch for each CDQ group using the catch 
accounting procedures agreed upon in the CDP.

Attaining or Exceeding a CDQ or PSQ

    CDQ and PSQ allocations would be made to CDQ groups, not to 
individual vessels or processors. Each CDQ group would be responsible 
for preventing the exceeding of CDQs and halibut PSQ and for complying 
with time and area closures triggered by attainment of the salmon, 
herring, and crab PSQs. Therefore, the CDQ group would be primarily 
responsible for monitoring its harvesting and processing partners to 
account for all CDQ and PSQ and for taking actions necessary to prevent 
exceeding CDQs or halibut PSQs. Although NMFS would monitor CDQ fishing 
in season and provide information to the CDQ groups, NMFS would not 
prescribe specific actions to avoid exceeding CDQ or PSQ.
    Inseason monitoring of CDQ catches would be based on the weekly CDQ 
catch report submitted by the CDQ representative. Also, NMFS would 
estimate the CDQ and PSQ catches from reports submitted by vessels and 
processors, such as the ADF&G fish tickets and processor's weekly 
production reports and by observers. The official estimates of CDQ and 
PSQ catch would be made once all observer

[[Page 43877]]

data was verified by NMFS and the CDQ catch reports reviewed.

CDQ Catch Accounting Requirements for Vessels and Processors

    Proposed catch accounting requirements including equipment, 
observer coverage, and procedures for estimating catch are discussed 
below by vessel and processor type. Additional information about the 
specific requirements for certified scales to weigh catch at sea, 
certified bins for volumetric estimates, the observer sampling station, 
and certified CDQ observers are discussed in later sections.

Unobserved Catcher Vessels

    Catcher vessels in the groundfish and halibut CDQ fisheries that 
are less than 60 ft (18.3 m) LOA would not be required to carry a CDQ 
observer. The majority of unobserved vessels participating in the 
current CDQ fisheries are catcher vessels harvesting halibut CDQ that 
are 32 ft (9.8 m) or less LOA. In an analysis prepared for the April, 
1996 Council meeting, NMFS estimated that, of the 127 catcher vessels 
harvesting halibut CDQ in 1995, 120 were 32 ft (9.8 m) or less LOA, one 
was between 33 ft (10.1 m) and 59 ft (18.0 m) LOA, and six were between 
60 ft (18.3 m) and 124 ft (37.8 m) LOA. In the 1995 sablefish CDQ 
fisheries, one catcher vessel was less than 60 ft (18.3 m) LOA and two 
were between 60 ft (18.3 m) and 120 ft (36.6 m) LOA.
    The catch accounting expectations of the multispecies CDQ fishery 
would require that the catch of all CDQ and PSQ species by unobserved 
vessels be counted against a CDQ or PSQ allocation. However, it is 
difficult to obtain accurate and reliable estimates of the catch of 
species discarded at sea by unobserved vessels.
    NMFS proposes to require unobserved vessels to retain all CDQ 
species and deliver them to a processor where they would be sorted and 
weighed on a certified scale. Catcher vessels using trawl gear would be 
required to retain all salmon and herring PSQ and deliver it to the 
processor. All catcher vessels would be required to carefully release 
halibut PSQ, record the estimated weight of the halibut PSQ, and report 
this on the ADF&G fish ticket and to the CDQ representative.
    NMFS considered requiring the use of bycatch rate assumptions 
developed from observer data on vessels in the same target fishery and 
gear type as the unobserved vessels. However, NMFS decided not to 
propose this approach because it would require estimation of bycatch 
rates with very little observer data, particularly for the halibut CDQ 
fisheries, which make up the majority of the unobserved vessels at this 
time. NMFS also decided against proposing that the CDQ groups provide 
for some level of observer coverage on the unobserved vessels because 
of safety and cost concerns about deploying observers on such small 
vessels and out of remote communities.
    Unobserved catcher vessels would not have additional equipment 
requirements that would necessitate a vessel inspection. Therefore, 
they would not require a CDQ permit. They would be eligible to 
participate in the CDQ fisheries as long as they were listed as 
eligible vessels in an approved CDP.

Observed Catcher Vessels

    All catcher vessels 60 ft (18.3 m) and greater LOA would be 
required to have at least one certified lead CDQ observer (described in 
a later section) for all groundfish and halibut CDQ fishing.

Observed Catcher Vessels Using Trawl Gear

    Operators of observed catcher vessels using trawl gear would be 
required to retain all groundfish CDQ and salmon and herring PSQ and 
deliver it to a processor where it would be sorted and weighed on a 
certified scale. All halibut and crab PSQ would be required to be 
discarded at sea after the observer had counted the halibut and crab 
PSQ and taken length measurement of the halibut.
    NMFS is proposing that all groundfish CDQ and salmon and herring 
PSQ be retained and weighed at a processing plant to eliminate the need 
for an observer to estimate the weight or numbers of at-sea discards. 
Without a means to weigh a large quantity of catch on the vessel, 
observers on board catcher vessels using trawl gear cannot make 
accurate estimates of at-sea discards.
    NMFS' proposed standard sources for estimating catch are the 
observer's estimate of halibut PSQ weight and crab PSQ numbers and on 
ADF&G fish tickets for the weight or numbers of CDQ and PSQ species.
    Vessel owners would be required to provide space on the deck of the 
vessel for the observer to sort and store catch samples and a place 
from which to hang the observer sampling scale. Catcher vessels using 
trawl gear and retaining all groundfish CDQ and salmon and herring PSQ 
would not have additional equipment requirements that would necessitate 
a vessel inspection. Therefore, they would not require a CDQ permit. 
They would be eligible to participate in the CDQ fisheries as long as 
they were listed as eligible vessels in an approved CDP.

Observed Catcher Vessels Using Non-Trawl Gear

    Observed catcher vessels using longline, pot, and jig gear (non-
trawl gear) could select one of two options for estimating groundfish 
and halibut CDQ. The first option would be to retain all groundfish and 
halibut CDQ (as is required for observed catcher vessels using trawl 
gear) and deliver it to a processor with a certified scale. Catcher 
vessels using this option would not be required to have a CDQ permit. 
The second option would allow groundfish CDQ to be discarded at sea 
under the same requirements applicable to processor vessels using non-
trawl gear under this option. In this case, the catcher vessel operator 
would have to provide sufficient observer coverage to sample all CDQ 
sets for species composition and average weight. In addition, the 
vessel would be required to have an observer sampling station with a 
motion-compensated sampling scale so that observers could obtain 
accurate average weight data on each species in the catch (see 
discussion below). Under this option, catcher vessels using this option 
would be required to have a CDQ permit and a vessel inspection to check 
the sampling station and scale.
    In both cases, careful release of halibut PSQ would be required and 
the observer would estimate the weight of halibut PSQ.
    NMFS' proposed standard sources and procedures for verifying the 
catch for vessels retaining all groundfish CDQ are or would use the 
observer's estimate of halibut PSQ weight and the vessel operators' and 
processors' reports of weight or numbers of CDQ and PSQ catch reported 
on ADF&G fish tickets.
    NMFS' proposed standard procedures for estimating catch for vessels 
discarding groundfish CDQ at sea would use the observer's estimate of 
the weight of both groundfish CDQ and halibut PSQ.

Catcher/Processors and Motherships

    Regardless of their length, all catcher/processors and motherships 
would be required to have at least two certified CDQ observers, one of 
whom must meet the requirements of a lead CDQ observer (see discussion 
below).
    All catcher/processors and motherships would be required to provide 
special equipment for estimating CDQ and PSQ catch. Any vessel required 
to have a certified scale, certified bins, or an observer sampling 
station would have to be inspected and

[[Page 43878]]

receive a special permit prior to being permitted to participate in the 
CDQ fisheries. Therefore, being listed as an eligible vessel in an 
approved CDP would not be sufficient for a catcher/processor or 
mothership to fish CDQ. The proposed inspection and the CDQ permit 
requirements are described in a later section.

Catcher/Processors Using Trawl Gear and Motherships

    Catcher/processors using trawl gear and motherships would be 
required to weigh all catch in the CDQ fisheries on a scale certified 
by NMFS and to have an observer sampling station. Proposed regulations 
governing the certified scales and the observer sampling station are 
described in a later section.
    NMFS' proposed standard sources and procedures for estimating catch 
for these vessels are or would use the observer's report of total catch 
weight from the certified scale and the observer's species composition 
sample data.

Catcher/Processors Using Non-Trawl Gear

    Catcher/processors using longline, pot, or jig gear would be 
required to have an observer sampling station, including a motion-
compensated platform scale. CDQ observers would sample each set and 
determine species composition and average weight for all CDQ and PSQ 
species.
    NMFS' proposed standard sources for estimating catch for these 
vessels are the observer's report of species composition and average 
weight.

Shoreside Processors

    Shoreside processors would be required to sort all CDQ deliveries 
by species or species group and weigh them on a scale certified by the 
State. PSQ species monitored by number would be required to be counted. 
The sorting and weighing of all CDQ and PSQ would be required to be 
monitored by a CDQ observer.
    Shoreside processors would be required to be listed in the CDP and 
to have a valid CDQ permit to accept deliveries of CDQ catch. The 
permit would not be issued until NMFS had determined that the CDQ catch 
could be weighed on a certified scale and that an observer could 
monitor the sorting and weighing of all CDQ species.

Observer Sampling To Determine CDQ and PSQ Catch Weight

    Methods proposed by NMFS that would be based on observer sampling 
to estimate species composition of the catch would use sample sizes and 
procedures that NMFS believes an observer could reasonably accomplish 
in the time available to him or her under the fishing and processing 
conditions on a vessel. Observers would obtain the largest sample sizes 
they can, given time, equipment, available space, and catch 
composition. NMFS is not proposing to specify minimum sample sizes 
necessary to obtain catch weight estimates with specific statistical 
qualities. The staff resources and data necessary to develop sampling 
plans appropriate for specific target fisheries or specific vessels are 
not available at this time. In addition, NMFS expects that the minimum 
sample sizes required to estimate the weight of infrequently occurring 
species on a haul-by-haul basis with a high level of confidence would 
be too large to accommodate in the space available on many vessels and 
would require more than two observers to sort and weigh. If NMFS 
develops sampling plans or minimum sample sizes for the groundfish 
fisheries as a whole in the future, this information could be added to 
the CDQ fishery requirements at that time.

Separation of CDQ and Non-CDQ Catch

    The need to account for all halibut, groundfish TAC species, and 
prohibited species under the groundfish and halibut CDQ program 
necessitates the separation of CDQ catch, IFQ catch, and non-CDQ catch. 
NMFS must be able to distinguish between CDQ and non-CDQ fishing in 
order to know whether catch accrues to a CDQ/PSQ or to IFQs or non-CDQ 
TACs and PSC limits. Therefore, catcher vessels could land and deliver 
CDQ and IFQ species together, but they would be prohibited from 
catching and delivering CDQ and non-CDQ catch together. Catcher/
processors would be prohibited from mixing CDQ and non-CDQ catch in the 
same haul or set. In addition, observed catcher vessels and catcher/
processors could not harvest fish for more than one CDQ group or from 
CDQ and IFQ in the same haul or set. Observed catcher vessels could 
harvest CDQ and IFQ fish in different sets on the same trip if they had 
sufficient quota to cover their catch of all species.
    On catcher/processors allowed to retain both CDQ and non-CDQ catch 
during the same trip, no CDQ catch or processed product from CDQ catch 
could be used as a basis species to determine maximum retainable 
bycatch amounts in the non-CDQ fisheries.

Equipment Requirements for Vessels

    A new Sec. 679.28 entitled ``Equipment and Operational Requirements 
for Catch Weight Measurement'' proposed in a separate rulemaking would 
set forth the requirements for certified scales to weigh catch at sea 
and certified scales in shoreside processing plants (62 FR 32564, June 
16, 1997). This proposed rule would modify that proposed rule by adding 
requirements for observer sampling stations to Sec. 679.28 and moving 
the requirements for certified holding bins from subpart C to 
Sec. 679.28. Although these equipment and operational requirements are 
proposed only as part of the CDQ monitoring program at this time, they 
may be applied more widely in the future.

Certified Scales

    All CDQ catch harvested by trawl catcher/processors or delivered to 
processor vessels or shoreside processing plants would be required to 
be weighed on a certified scale to obtain the most accurate estimate of 
the weight of each CDQ and PSQ species. Catch by observed vessels using 
non-trawl gear could be estimated by counting individual species and 
applying an average weight. Scales in shoreside processing plants would 
be required to be certified by the State of Alaska, as they currently 
are required to be under State law. Scales on catcher/processors using 
trawl gear and motherships would be certified under NMFS' at-sea scale 
certification program. More discussion on the background and 
requirements of the at-sea scale certification program may be found in 
the preamble to the at-sea scale certification proposed rule (62 FR 
32564, June 16, 1997).
    All trawl catcher/processors and motherships would be required to 
install a scale and have the scale certified by a weights and measures 
inspector authorized by the Administrator, Alaska Region, NMFS 
(Regional Administrator). All of the catch would be required to be 
weighed on the certified scale before it is sorted. The weight of each 
species would be determined by the observer's species composition 
sampling unless some other method is approved by NMFS in the CDP.
    Purchase of a scale appropriate for trawl processor vessels may 
cost between $30,000 (hopper scales) and $50,000 (belt-conveyor 
scales). Installation costs will vary depending on the type of scale 
selected, the modifications necessary to accommodate the scale, and 
changes in the sorting and discarding operations. In 1994, the Council 
recommended that NMFS require at-sea scales on processor vessels in the 
BSAI pollock fisheries. A draft EA/RIR/IRFA prepared for that 
recommendation analyzed an alternative to requiring certified scales

[[Page 43879]]

on all trawl processor vessels. NMFS estimated that installation of an 
at-sea scale could cost from $5,000 to $250,000 per vessel. A copy of 
this EA/RIR/IRFA may be obtained from the Regional Administrator (see 
ADDRESSES). The installation of a scale also may reduce the efficiency 
of the fish processing factory, particularly if processing equipment 
has to be relocated. Although NMFS cannot estimate what these costs may 
be, processor vessels that would have to undergo significant 
modifications to their vessels or forego substantial processing 
efficiencies to accommodate a scale probably would choose not to 
participate in the CDQ fisheries rather than incur these costs.

Observer Sampling Station

    All processor vessels would be required to have an observer 
sampling station that includes a motion-compensated scale to improve 
the accuracy of sample weights, a table, a hose that supplies fresh or 
salt water, and a specified minimum amount of work space. Current 
observer sampling scales do not compensate for vessel motion and, 
therefore, are not providing as accurate sample weights as could be 
obtained with a motion-compensated scale. In addition, many processor 
vessels currently do not provide working and storage space necessary 
for observers to carry out their duties. The observer sampling station 
is estimated to cost between $8,000 and $14,000 per vessel, the 
majority of which is due to the motion-compensated platform scale which 
could cost between $8,000 and $12,000 each.

Certified Bins for Volumetric Estimates

    The regulations governing the use of certified holding bins for 
volumetric estimates of total catch weight on catcher/processors and 
motherships are proposed to be moved from subpart C to the new 
Sec. 679.28(e). Although processor vessels in the CDQ fisheries would 
be allowed to use certified bins for volumetric estimates of pollock 
CDQ catch in 1998 only, requirements for certified bins must remain in 
regulation because NMFS allows processor vessels in the non-CDQ pollock 
fisheries with certified bins and two observers to use only observer 
estimates, rather than the NMFS blend system, to determine pollock 
catch weight.
    NMFS implemented regulations in a final rule published on May 16, 
1994 (59 FR 25346) requiring processor vessels participating in the 
pollock CDQ fisheries to have certified bins for volumetric estimates. 
A more complete description of how certified bins are used by observers 
to make volumetric estimates of total catch weight is included in the 
preamble to the proposed rule referenced above and in the preamble to 
the then-proposed rule for certified bins (58 FR 68386, December 27, 
1993).
    The current certified bins regulations include equipment and 
operational requirements. The operator is required to have each holding 
bin that would be used for volumetric estimates measured, marked, and 
certified by an independent marine engineer or other authorized 
individual. The operator also is required to provide ``visual access'' 
to the bins so that the observer can see the level of fish throughout 
the bin from outside the bin. In addition to the certification 
requirements, operators also must comply with operational requirements 
such as notifying the observer when fish would be added to or removed 
from the bin, or not filling the bin above the viewing port.
    The following changes are proposed for the new paragraph at 
Sec. 679.28(e) on certified bins:
    (1) The paragraph would be reorganized to separate specifications 
and certification requirements from operational requirements.
    (2) Certification documents would be required to be submitted to 
the Regional Administrator (as would all equipment certification 
requirements in Sec. 679.28) rather than to the NMFS Observer Program 
Office as required under current regulations.
    (3) A new requirement that numerals identifying the level of fish 
in the bins be at least 4 cm high would be added for bin certification 
documents dated 30 days after the effective date of the final rule. 
Because the bin certification requirements would be effective only for 
1998 in the CDQ fisheries, NMFS does not believe that vessel owners 
should be required to modify numerals on previously certified bins. 
However, any bins certified for the first time or recertified after the 
effective date of this proposed rule would be required to comply with 
this requirement.
    (4) Clarification that marked increments would not be required on 
the wall in which the viewing port is located unless they are needed to 
determine the level of fish from another viewing port.
    (5) A specific list of information that must be included in bin 
certification documents submitted after the effective date of this 
proposed rule would be added. In the current regulations, the bin 
certification documents must include a description of the location of 
bin marks, tables indicating bin volume in cubic meters for each marked 
increment and must be dated and signed by the person preparing the 
documents. This proposed rule would add the vessel name, the date the 
bins were measured and the marked increments and numerals were 
witnessed, a diagram of the location of the marked increments, the 
location and dimensions of each viewing port, and instructions for 
determining the volume of fish in each bin from the diagrams and 
tables.
    (6) A new requirement that refrigerated seawater tanks could be 
used for volumetric estimates only if all other requirements of the 
paragraph were met and no water had been added to the bins before the 
observer made a volumetric estimate.
    (7) The requirement for a viewing port or ports, through which the 
level of fish inside the bin can be seen from outside the bin, would be 
more clearly stated.
    (8) The provision allowing bins to be certified by ``a qualified 
organization that has been designated by the USCG Commandant, or an 
authorized representative thereof, for the purpose of classing or 
examining commercial fishing industry vessels under the provisions of 
46 CFR 28.76 would be removed. NMFS believes that it is sufficient to 
require that a registered engineer perform bin certifications.

Equipment That Biases Observer Samples

    Estimates of the catch of CDQ and PSQ would be based either on 
processors' reports of sorted and weighed or counted catch or on the 
observer's species composition sample data applied to total catch 
weight. In either case, the use of equipment that would remove or 
destroy fish before they are counted, weighed, or sampled would result 
in an inaccurate estimate of CDQ or PSQ catch. In the shoreside plants, 
these fish would not be sorted and weighed or counted. On a vessel, 
removal of these fish would bias the observer's sample. NMFS 
regulations currently contain a prohibition at Sec. 679.7(g)(2) against 
interfering with or biasing the sampling procedure employed by an 
observer, including physical, mechanical, or other sorting or 
discarding of catch before sampling. Although no additional specificity 
is being proposed at this time, NMFS believes that the following 
equipment biases observer samples if used to transport fish prior to 
the time the fish reaches the location where the observer samples: 
Pumps that grind fish; grates, small pipes, and hatches that prevent 
larger fish from flowing through; and incline belts operated at certain 
angles or speeds so that some fish do not get transported up the belt. 
NMFS may

[[Page 43880]]

consider adding specific prohibitions against the use of such equipment 
in the future.

Permits for Vessels and Processors in the CDQ Fisheries

    The catch accounting requirements for the groundfish and halibut 
CDQ programs are different from those for the non-CDQ fisheries because 
they require the use of new equipment on vessels and observer 
monitoring of sorting and weighing of CDQ catch in shoreside plants.
    All shoreside processors and all vessels required to have equipment 
such as a certified scale to weigh catch or an observer sampling 
station would be required to obtain a permit from NMFS to participate 
in the groundfish or halibut CDQ fisheries. Prior to issuing the CDQ 
permit, NMFS would inspect each vessel and processing plant to verify 
that the equipment required to account for CDQ catch was present and 
operational on the vessel and that specific requirements for observer 
sampling or sorting and weighing of catch could be met.
    NMFS' experience with the certified bin requirement in the pollock 
CDQ fisheries is an important factor in NMFS' recommendation for pre-
fishing inspections. Problems with the certified bins include 
improperly certified bins, inability of observers to see into the bins, 
unsafe access to the bins, and lack of understanding about how to use 
the bin certification documents. These problems have caused conflicts 
between vessel operators and the observers. Communication difficulties 
and the fact that many of the problems are only identified once fish 
have been harvested and the observer is unable to make a volumetric 
estimate of total catch weight have made it difficult to resolve the 
problems quickly. Some of these problems could have been identified and 
resolved by a vessel inspection and improved communication between the 
CDQ participants and NMFS before CDQ fishing started. Other problems 
are operational in nature and cannot be identified until a vessel is 
fishing. The CDQ permit would be used only to identify compliance with 
specific equipment requirements prior to the start of the CDQ 
fisheries. NMFS would still have to rely on reports by observers or 
authorized officers to enforce operational violations.
    Trawl catcher/processors and motherships would be inspected to 
verify that the observer sampling station meets the requirements of 
Sec. 679.28(d), that the motion-compensated observer sampling scale is 
operating properly, and that observers can sample unsorted catch after 
it has been weighed on a certified scale.
    Longline and pot catcher/processors and catcher vessels would be 
inspected to verify that the observer sampling station meets the 
requirements of Sec. 679.28(d) and that the motion-compensated observer 
sampling scale is operating properly.
    Shoreside processors would be inspected to verify that an observer 
can monitor the sorting and weighing of all CDQ and PSQ catch on a 
scale certified by the State of Alaska.
    Vessel owners or processors would be required to submit a permit 
application to NMFS. Trawl catcher/processors and mothership owners and 
shoreside processors would be required to submit a diagram and 
description of the vessel or processing plant showing where CDQ catch 
would be sorted and weighed on a certified scale and the location of 
the observer sampling station on vessels. Trawl catcher/processors and 
mothership owners also would be required to submit a copy of the at-sea 
scale inspection certificate. Longline or pot catcher/processors or 
catcher vessels would not be required to submit supplemental 
information with the permit application.
    Upon receipt of the permit application, NMFS would schedule a 
vessel or plant inspection. NMFS would not issue the permit until the 
vessel or plant inspection had been conducted and NMFS verified 
compliance with specific equipment and catch accounting requirements.
    Permits would have to be renewed each year. However, after the 
initial inspection of a vessel or plant has been conducted, NMFS could 
waive requirements for inspections in future years if the observers 
report no problems with equipment or operational requirements and if 
the annual scale certification documents required for vessels are 
received by NMFS.
    Once permitted, a vessel or processor could harvest or process CDQ 
fish for any CDQ group during the year for which it is permitted as 
long as it is listed as an eligible vessel or processor on the approved 
CDP for that CDQ group.

Certified CDQ Observer

    The multispecies groundfish CDQ program would rely heavily on 
information collected by observers to determine the catch of CDQ and 
PSQ species, thereby increasing the need for accurate and timely 
observer data. Observers would need additional training and briefing to 
provide more in-depth information about the additional monitoring, 
equipment, and operational requirements of the CDQ fisheries; how to 
collect and transmit CDQ data; and how to communicate questions or 
problems to NMFS. Therefore, NMFS proposes to create a new category of 
observer called a NMFS-certified CDQ observer, the requirements for 
which would be added at Sec. 679.50(h)(1)(i) (D) and (E).
    Two levels of CDQ observer are proposed. The first level would be 
called a ``CDQ observer'' and the second level a ``lead CDQ observer.'' 
A person would be required to have experience observing in the CDQ 
fisheries in order to be certified as a lead CDQ observer. The CDQ 
observer level, with no requirements for CDQ observing experience, is 
necessary in order to provide the experience in the CDQ fisheries that 
is required to become a lead CDQ observer.
    Both the CDQ observer and the lead CDQ observer would be required 
to have the following qualifications to be certified:
    1. Receive the rating of 1 for ``exceptional'' or 2 for ``meets 
expectations'' by NMFS for their most recent deployment,
    2. Have completed at least 60 days of observer data collection as a 
certified North Pacific groundfish observer on a vessel using the same 
gear type as the CDQ vessel that they will be deployed on. In other 
words, CDQ observers would be certified for specific gear types.
    3. Successfully complete a NMFS-approved CDQ observer training and/
or briefing. The additional training is expected to take approximately 
5 days.
    In addition to these requirements, a person certified as a ``lead'' 
CDQ observer would be required to have successfully completed at least 
20 days of observer data collection on a vessel of any gear type 
participating in a CDQ fishery.
    At least one of the observers on each catcher/processor, 
mothership, or catcher vessel and in the onshore processing plant would 
be required to be a certified ``lead'' CDQ observer. All CDQ observers 
on vessels would be required to have at least 60 days of experience 
collecting data on a vessel of the same gear type as the CDQ vessel 
they are deployed on.

Observer Coverage Requirements

    Observer coverage requirements for vessels and processors 
participating in the groundfish and halibut CDQ fisheries would be 
moved from subpart C to subpart E with all other observer coverage 
requirements. Catcher vessels less than 60 ft (18.3 m) LOA would not be 
required to carry an observer. All

[[Page 43881]]

catcher vessels 60 ft (18.3 m) LOA or longer, including those catcher 
vessels fishing halibut CDQ with groundfish CDQ bycatch, would be 
required to carry at least one certified lead CDQ observer. Shoreside 
processing plants would be required to have at least one certified lead 
CDQ observer to monitor the sorting and weighing of all CDQ deliveries. 
Catcher/processors and motherships would be required to have two 
certified CDQ observers on board during the CDQ fisheries, at least one 
of whom would be required to be a certified lead CDQ observer. 
Processors purchasing halibut CDQ and no other groundfish are not 
required by NMFS to have Federal Processor permits and, therefore, are 
not required to be monitored by NMFS-certified observers. Observer 
coverage requirements include vessels fishing for halibut CDQ because 
of the need to monitor the catch of all CDQ and PSQ species in the 
catch.
    This proposed rule also would amend Sec. 679.50(a) to clarify that 
CDQ observer coverage days for ``30 percent coverage'' vessels would 
not count towards the required distribution of observer coverage 
throughout the year in the non-CDQ fisheries as described in 
Sec. 679.50(c)(1)(v) and (c)(1)(vii).

Catch Accounting During the Transition Year

    In 1998, processors in the pollock, sablefish, and halibut CDQ 
fisheries would continue to follow the catch accounting regulations 
currently used, although these regulations would be moved to 
Sec. 679.32(f). Processor vessels in the pollock CDQ fishery would 
continue to use volumetrics to estimate pollock catch weight, however, 
pollock CDQ catches would be required to be reported to NMFS on the CDQ 
catch report.
    Fixed gear vessel operators in the halibut and sablefish CDQ 
fisheries would be allowed to continue to use processed product weight 
and product recovery rates to estimate the round weight of retained 
catch and to report their catch to the RAM Division under the same 
regulations used for the halibut and sablefish IFQ program. The halibut 
and sablefish CDQ regulations would be moved to Sec. 679.32(g). Halibut 
and fixed gear sablefish CDQ landings would not be reported on the CDQ 
catch report until 1999.
    The Council recommended that bycatch from the pollock, fixed gear 
sablefish, or fixed gear halibut CDQ fisheries not accrue against the 
CDQ groups' CDQ or PSQs in the transition year. The only species that 
would accrue to a CDQ in the pollock CDQ fisheries would be pollock. 
Similarly, only sablefish and halibut catch in the fixed gear sablefish 
and halibut CDQ fisheries would accrue against a CDQ. Catch of all 
other species in these CDQ fisheries would accrue to the respective 
non-CDQ TACs and PSC limits.
    Different requirements for the various CDQ fisheries in 1998 
require definitions to distinguish among them. In 1998, the 
multispecies CDQ fisheries would not include pollock, fixed gear 
sablefish, or halibut. Different CDQ numbers would be assigned to each 
CDQ group's allocations of pollock, sablefish, halibut, and 
multispecies groundfish. Under the current regulations, each vessel and 
processor is required to maintain separate catch and production records 
for fish harvested under each CDQ number. In addition, the CDQ 
representative would be required to identify vessels fishing in the 
pollock CDQ fisheries on the check-in and check-out reports. Check-in/
check-out reports are not proposed to be required for the fixed gear 
halibut and sablefish CDQ fisheries in 1998, because they would still 
be operating under the IFQ regulations.
    The allowable amount of groundfish bycatch that could be retained 
in the pollock, fixed gear sablefish, and fixed gear halibut CDQ 
fisheries would have to comply with maximum retainable bycatch amounts 
and fishery closures for the non-CDQ TACs against which this bycatch is 
accruing.
    Equipment and operational requirements proposed for the 
multispecies CDQ program would not apply to the pollock and fixed gear 
sablefish and halibut CDQ fisheries in 1998. However, starting on 
January 1, 1999, the equipment and operational requirements discussed 
in previous sections would apply to all vessels and processors in the 
multi-species groundfish and halibut CDQ fisheries.

Classification

    At this time, NMFS has not determined that the amendment that this 
rule would implement is consistent with the national standards of the 
Magnuson-Stevens Act and other applicable laws. Section 304(a)(3) of 
the Magnuson-Stevens Act requires NMFS to approve, disapprove, or 
partially approve an amendment submitted by the Council within 30 days 
of the end of the comment period for that amendment. NMFS, in making 
that determination, will take into account the data, views, and 
comments received during the comment period.
    This proposed rule has been determined to be not significant for 
purposes of E.O. 12866.
    An EA/RIR was prepared for this rule that describes the management 
background, the purpose and need for action, the management action 
alternatives, and the socio-economic impacts of the alternatives. The 
EA/RIR estimates the total number of small entities affected by this 
action, and analyzes the economic impact on those small entities. Based 
on the economic analysis in the EA/RIR, 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, would not have a significant 
economic impact on a substantial number of small entities.

    Although most fishing operations affected by these regulations 
(1,896 fishing operations--based on the total number of moratorium 
qualifications issued to date) are considered small entities, a 
substantial number of these small entities would not experience 
impacts of the type contemplated by the RFA as ``significant.'' In 
fact, it is estimated that 2,962 fishing operations would qualify 
under the LLP, 1,066 more fishing operations than are currently 
licensed to operate. This number of fishing operations also exceeds 
the average number of fishing operations from 1988-1995 (1,956 
fishing operations) and the fishing operations in the year of the 
highest participation (1992--2,285 fishing operations). Some vessels 
that are currently participating under the moratorium on entry might 
not qualify under the LLP because of insufficient participation 
during the endorsement qualification period (1992-1995). However, 
given the relatively easy qualification requirements (i.e., one 
landing in each of any 2 calendar years 1/1/92-6/17/95 at most, in 
some cases only a single landing during that period), this number is 
anticipated to be below the 20 percent threshold. Furthermore, most 
vessels that would not qualify for a license under the LLP would be 
small vessels that are either exempt from the LLP because of their 
size (i.e., equal to or less than 32 ft in the Bering Sea and 
Aleutian Islands Area or equal to or less than 26 ft in the Gulf of 
Alaska), or vessels that primarily participated in state waters and 
only had minimal participation in the EEZ off Alaska (i.e., landings 
that amounted to less than 5 percent of their gross catch). In the 
case of the former, there would be no impact, significant or 
otherwise, because these vessels would be able to continue their 
participation through the exemption provided in the

[[Page 43882]]

LLP. In the case of the latter, the impact would not rise to 
significance under the RFA because the vessels primarily 
participated in state waters, which would be unaffected by the LLP.
    While the CDQ allocations certainly provide significant benefits 
to the recipient groups and communities, and at the same time impose 
additional reporting and administrative requirements, the six CDQ 
organizations likely would not be classified as ``small entities'' 
under the auspices of the RFA, nor would they, in total, comprise a 
``substantial'' number of entities (large or small) operating in the 
fisheries off Alaska.
    The associated 7.5 percent reduction in overall quota available 
to the remaining fishing fleet (which includes a substantial number 
of small entities) is not expected to result in a direct 7.5 percent 
reduction in catch, for example, by any individual small fishing 
operation. As noted previously, the 7.5 percent allocation is far 
less than the percentage of fish currently discarded in the 
collective groundfish fisheries. Council programs, which mandate 
retention and utilization of groundfish species beginning in 1998, 
are estimated to more than make up for the 7.5 percent quota 
reduction, in terms of overall fish available for both small and 
large fishing operations. It is also true that the gross income for 
individual, small fishing operations is less dependent on overall 
quotas available than it is on other factors such as, relative fish 
prices across species, unpredictable weather patterns, timing and 
magnitude of alternative fishing opportunities such as salmon, and 
other business decisions made independent of the overall TAC levels 
for groundfish.

    As a result, a regulatory flexibility analysis was not prepared. 
Copies of the EA/RIR can be obtained from NMFS (see ADDRESSES).
    This proposed rule contains new collection-of-information 
requirements subject to the Paperwork Reduction Act (PRA). These 
collection of information has been submitted to OMB for approval. The 
new information requirements consist of: Preparation of 5,000 initial 
applications over the life of the LLP requiring an estimated time of 2 
hours each to complete for a total of 10,000 hours; preparation of 500 
transfer applications per year requiring an estimated time of 1 hour 
each to complete for a total of 500 hours per year; preparation of six 
proposed CDPs requiring an estimated time of 500 hours to complete for 
an average of 1,000 hours per year; preparation of six annual reports 
requiring an estimated time of 40 hours to complete for a total of 240 
hours per year; preparation of six annual budget reports requiring an 
estimated time of 20 hours to complete for a total of 120 hours per 
year; preparation of six annual budget reconciliation reports requiring 
an estimated time of 8 hours to complete for a total of 48 hours per 
year; preparation of 48 substantial amendments requiring an estimated 
time of 8 hours to complete for a total of 384 hours per year; 
preparation of 60 technical amendments requiring an estimated time of 4 
hours to complete for a total of 240 hours per year; preparation of 56 
CDQ permit applications requiring an estimated time of 2 hours to 
complete for a total of 112 hours; preparation of 1,560 CDQ check-in/
check-out reports requiring an estimated time of 10 minutes to complete 
for a total of 260 hours; preparation of 144 CDQ catch reports 
requiring an estimated time of 2 hours to complete for a total of 288 
hours per year, preparation of 75 prior notices of offloading requiring 
an estimated 2 minutes to complete for a total of 2.5 hours per year; 
and printing and retention of 725 scale printouts by shoreside 
processors requiring an estimated time of 10 minutes to complete for a 
total of 121 hours per year, and reporting of at-sea discards on 650 
ADF&G fish tickets by unobserved catcher vessels requiring an estimated 
time of 20 minutes to complete for a total of 217 hours per year. For 
1998 only, information requirements consist of bin certifications 
requiring an estimated time of 8 hours to complete for a total of 0 
hours for 1998; changes to the list of CDQ halibut/sablefish 
cardholders requiring an estimated time of 0.5 hours to complete for a 
total of 3.5 hours for 1998; and changes to CDP lists of vessels for 
halibut/sablefish requiring an estimated time of 1 hour for a total of 
14 hours for 1998.
    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.
    Public comment is sought regarding: Whether this proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information has 
practical utility; the accuracy of the burden estimate; ways to enhance 
the quality, utility, and clarity of the information to be collected; 
and 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 regarding burden 
estimates or any other aspect of the data requirements, including 
suggestions for reducing burdens, to NMFS (see ADDRESSES) and to the 
Office of Information and Regulatory Affairs, Office of Management and 
Budget, Washington, DC 20503 (ATTN: NOAA Desk Officer).

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: August 6, 1997.
Rolland A. Schmitten,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

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

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

    1. The authority citation for 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. 679.1, paragraph (e) is revised and paragraph (j) is 
added to read as follows:


Sec. 679.1  Purpose and scope.

* * * * *
    (e) Western Alaska CDQ Program. The goals and purpose of the CDQ 
program are to allocate CDQ to eligible Western Alaska communities to 
provide the means for starting or supporting commercial fisheries 
business activities that will result in an ongoing, regionally-based, 
fisheries-related economy.
* * * * *
    (j) License Limitation Program. (1) Regulations in this part 
implement the license limitation program for the commercial groundfish 
fisheries in the EEZ off Alaska and for the commercial crab fisheries 
for the Bering Sea and Aleutian Islands in the EEZ off Alaska.
    (2) Regulations in this part govern the commercial fishing for 
license limitation groundfish by vessels of the United States using 
authorized gear within that portion of the Gulf of Alaska and the 
Bering Sea and Aleutian Islands management area over which the United 
States exercises exclusive fishery management authority and the 
commercial fishing for crab species by vessels of the United States 
using authorized gear within that portion of the Bering Sea and 
Aleutian Islands management area over which the United

[[Page 43883]]

States exercises exclusive fishery management authority.
    3. In Sec. 679.2, the definition for ``Governor'' is removed; the 
definitions for ``Community Development Plan (CDP)'', ``Community 
Development Quota (CDQ)'', ``Legal Landing'', ``Maximum LOA'', 
``Person'', ``Processing or to process'', ``Qualified Applicant'', 
``Qualified Person'', and ``Resident Fisherman'' are revised; and 
definitions for ``Area Endorsement'', ``Area/Species Endorsement'', 
``Catcher/Processor Vessel Designation'', ``Catcher Vessel 
Designation'', ``CDQ Allocation'', ``CDQ Fishing'', ``CDQ Group'', 
``CDQ Number'', ``CDQ Project'', ``CDQ Representative'', ``CDQ 
Species'', ``Crab Species'', ``Crab Species License'', paragraph (3) 
for ``Directed Fishing'', ``Eligible Applicant'', ``Eligible 
Community'', ``Groundfish License'', ``License Holder'', ``License 
Limitation Groundfish'', ``Managing Organization'', ``Prohibited 
Species Quota'', ``PSQ Allocation'', ``PSQ Species'', ``State'', and 
``Vessel Length Category'' are added in alphabetical order to read as 
follows:


Sec. 679.2  Definitions.

    Area endorsement means the designation(s) on a license that 
authorizes a license holder to conduct directed fishing for license 
limitation groundfish in the designated area(s), subarea(s), or 
district(s). Area endorsements, which are inclusive of, but not 
necessarily the same as, management areas, subareas, or districts 
defined in this part, are as follows:
    (1) Aleutian Islands area endorsement. Authorizes the license 
holder to conduct directed fishing for license limitation groundfish in 
the Aleutian Islands Subarea;
    (2) Bering Sea area endorsement. Authorizes the license holder to 
conduct directed fishing for license limitation groundfish in the 
Bering Sea Subarea;
    (3) Central Gulf area endorsement. Authorizes the license holder to 
conduct directed fishing for license limitation groundfish in the 
Central Area of the Gulf of Alaska and the West Yakutat District;
    (4) Southeast Outside area endorsement. Authorizes the license 
holder to conduct directed fishing for license limitation groundfish in 
the Southeast Outside District; and
    (5) Western Gulf area endorsement. Authorizes the license holder to 
conduct directed fishing for license limitation groundfish in the 
Western Area of the Gulf of Alaska.
    Area/species endorsement means the designation(s) on a license that 
authorizes a license holder to conduct directed fishing for the 
designated crab species in Federal waters in the designated area(s). 
Area/species endorsements for crab species licenses are as follows:
    (1) Adak brown king in waters with an eastern boundary of 171 deg. 
W. long., a western boundary of the U.S.-Russian Convention Line of 
1867, and a northern boundary of 55 deg.30' N. lat.
    (2) Adak red king in waters with an eastern boundary of 171 deg. W. 
long., a western boundary of the U.S.-Russian Convention Line of 1867, 
and a northern boundary of 55 deg.30' N. lat.
    (3) Bristol Bay red king in waters with a northern boundary of 
58 deg. 39' N. lat., a southern boundary of 54 deg. 36' N. lat., and a 
western boundary of 168 deg. W. long. and including all waters of 
Bristol Bay.
    (4) BS/AI C. opilio and C. bairdi in Pacific Ocean waters with a 
northern boundary of 58 deg. 52' N. lat., and an eastern boundary of 
148 deg. 50' W. long and all Bering Sea and Pacific Ocean waters east 
of the U.S.-Russian Convention Line of 1867, excluding:
    (i) Pacific Ocean waters with a northern boundary of 58 deg. 52' N. 
lat., an eastern boundary of 148 deg. 50' W. long., and a western 
boundary of 157 deg. 27' W. long.
    (ii) Pacific Ocean waters with an eastern boundary line from the 
southernmost tip of Kupreanof Point to the easternmost tip of Castle 
Rock and extending southeast (135 deg.) from that easternmost point, 
and a western boundary line extending south (180 deg.) from Scotch Cap 
Light.
    (iii) Pacific Ocean waters with a western boundary line from the 
southernmost tip of Kupreanof Point to the easternmost tip of Castle 
Rock and extending southeast (135 deg.) from that easternmost point, 
and an eastern boundary line of the longitude of the easternmost tip of 
Cape Kumlik.
    (5) Dutch Harbor brown king in waters with a northern boundary of 
54 deg. 36' N. lat., an eastern boundary of the longitude of Scotch Cap 
Light, and a western boundary of 171 deg. W. long., excluding the 
waters with a southern boundary line from 54 deg. 36' N. lat., 168 deg. 
W. long., to 54 deg. 36' N. lat., 171 deg. W. long., to 55 deg. 30' N. 
lat., 171 deg. W. long., to 55 deg. 30' N. lat., 173 deg. 30' E. lat., 
a northern boundary of 68 deg. 21' N. lat., an eastern boundary line 
from 54 deg. 36' N. lat., 168 deg. W. long., to 58 deg. 39' N. lat., 
168 deg. W. long., to 59 deg. 39' N. lat., and a western boundary of 
the U.S.-Russian Convention line of 1867.
    (6) Norton Sound red king and Norton Sound blue king in waters with 
a western boundary of 168 deg. W. long., a southern boundary of 61 deg. 
49' N. lat., and a northern boundary of 65 deg. 36' N. lat.
    (7) Pribilof red king and Pribilof blue king in waters with a 
northern boundary of 58 deg. 39' N. lat., an eastern boundary of 
168 deg. W. long., a southern boundary line from 54 deg. 36' N. lat., 
168 deg. W. long., to 54 deg. 36' N. lat., 171 deg. W. long., to 
55 deg. 30' N. lat., 171 deg. W. long., to 55 deg. 30' N. lat., 
173 deg. 30' E. lat., and a western boundary of the U.S.-Russian 
Convention line of 1867.
    (8) St. Matthew blue king in waters with a northern boundary of 
61 deg. 49' N. lat., a southern boundary of 58 deg. 39' N. lat., and a 
western boundary of the U.S.-Russian Convention line of 1867.
    Catcher/processor vessel designation means a license designation 
that authorizes a license holder:
    (1) To conduct directed fishing for license limitation groundfish 
and/or process license limitation groundfish on a vessel; or
    (2) To conduct directed fishing for crab species and/or process 
crab species on a vessel.
    Catcher vessel designation means a license designation that 
authorizes a license holder:
    (1) To conduct directed fishing for, but not process, license 
limitation groundfish on a vessel; or
    (2) To conduct directed fishing for, but not process, crab species 
on a vessel.
    Community Development Plan (CDP) means a business plan for the 
economic and social development of a specific Western Alaska community 
or group of communities under the CDQ program at Sec. 679.30.
    Community Development Quota (CDQ) means the annual amount of a 
particular CDQ species, in metric tons or numbers of animals, that a 
CDQ group is permitted to catch based on a CDQ allocation that has been 
requested in a proposed CDP and approved by NMFS.
    CDQ allocation means a percentage of a CDQ reserve, defined at 
Sec. 679.31, which is assigned to a CDQ group when NMFS approves a 
proposed CDP.
    CDQ fishing means fishing for any CDQ or PSQ species.
    CDQ group means a qualified applicant with an effective CDP.
    CDQ number means a number assigned to the CDQ group by NMFS that is 
to be used on all reports submitted by the CDQ group.
    CDQ project means any program that is funded by a CDQ group's 
assets for the economic or social development of a community or group 
of communities that are participating in a CDQ group, including but not 
limited to, infrastructure development, CDQ investments, employment and 
training programs, and CDP administration.
    CDQ representative means the individual who is the official contact 
for

[[Page 43884]]

NMFS regarding all matters relating to a CDQ group's activities.
    CDQ species means any species or species group that has been 
assigned to a CDQ reserve as specified at Sec. 679.31(b)-(f).
    Crab species means all crab species covered by the Fishery 
Management Plan for the Commercial King and Tanner Crab Fisheries in 
the Bering Sea/Aleutian Islands, including, but not limited to, red 
king crab (Paralithodes camtschatica), blue king crab (Paralithodes 
platypus), brown or golden king crab (Lithodes aequispina), scarlet or 
deep sea king crab (Lithodes couesi), Tanner or bairdi crab 
(Chionoecetes bairdi), opilio or snow crab (Chionoecetes opilio), 
grooved Tanner crab (Chionoecetes tanneri), and triangle Tanner crab 
(Chionoecetes angulatus).
    Crab species license means a license issued by NMFS that authorizes 
the vessel designated on the license to conduct directed fishing for 
crab species.
    Directed fishing means:
* * * * *
    (3) With respect to license limitation groundfish species, directed 
fishing as defined in paragraph (1) of this definition, or, with 
respect to license limitation crab species, the catching and retaining 
of any license limitation crab species.
    Eligible applicant means:
    (1) A qualified person who owned a vessel on June 17, 1995, that 
made legal landings of license limitation groundfish or crab species in 
the appropriate areas during the qualifying periods specified in 
Sec. 679.4(i) (4) and (5), unless the fishing history of that vessel 
was transferred in conformance with the provisions in paragraph (2) of 
this definition; or
    (2) A qualified person to whom the fishing history of a vessel that 
made legal landings of license limitation groundfish or crab species in 
the appropriate areas during the qualifying periods specified in 
Sec. 679.4(i) (4) and (5) has been transferred by the express terms of 
a written contract that clearly and unambiguously provides that the 
qualifications for a license under the LLP have been transferred.
    (3) Notwithstanding the provisions of paragraphs (1) and (2) of 
this definition, for purposes of eligibility for an area/species 
endorsement specified at Sec. 679.4(i)(5)(ii)(H), an eligible applicant 
also includes (i) an individual who held a State of Alaska permit for 
the Norton Sound king crab summer fishery in 1993 and 1994, and who 
made at least one landing of red or blue king crab in the appropriate 
area during the period specified in Sec. 679.4(i)(5)(ii)(H), or (ii) a 
corporation that owned or leased a vessel on June 17, 1995, that made 
at least one landing of red or blue king crab in the appropriate area 
during the period in Sec. 679.4(i)(5)(ii)(H), and that was operated by 
an individual who was an employee or a temporary contractor;
    Eligible community means a community:
    (1) That is located within 50 nm from the baseline from which the 
breadth of the territorial sea is measured along the Bering Sea coast 
from the Bering Strait to the most western of the Aleutian Islands, or 
on an island within the Bering Sea. A community is not eligible if it 
is located on the GOA coast of the North Pacific Ocean, even if it is 
within 50 nm of the baseline of the Bering Sea.
    (2) That is certified by the Secretary of the Interior pursuant to 
the Native Claims Settlement Act (Pub. L. 92-203) to be a native 
village.
    (3) Whose residents conduct more than half of their current 
commercial or subsistence fishing effort in the waters of the BSAI.
    (4) That has not previously developed harvesting or processing 
capability sufficient to support substantial groundfish fisheries 
participation in the BSAI, unless the community can show that benefits 
from an approved CDP would be the only way to realize a return from 
previous investments. The community of Unalaska is excluded under this 
provision.
    Groundfish license means a license issued by NMFS that authorizes a 
vessel to conduct directed fishing for license limitation groundfish.
    Legal landing means a landing in compliance with Federal and state 
commercial fishing regulations in effect at the time of landing.
    License holder means the person who received a groundfish or crab 
species license by initial issuance or transfer, or the individual 
designated to use that license to conduct directed fishing for license 
limitation groundfish or crab species by the person who received a 
groundfish or crab species license by initial issuance or transfer.
    License limitation groundfish means target species and the ``other 
species'' category, specified annually pursuant to Sec. 679.20(a)(2), 
except that demersal shelf rockfish east of 140 deg. W. longitude and 
sablefish managed under the IFQ program are not considered license 
limitation groundfish.
    Managing organization means the organization responsible for 
managing all or part of a CDP.
    Maximum LOA (MLOA) means:
    (1) (Applicable through December 31, 1998) with respect to a 
vessel's eligibility for a moratorium permit:
    (i) Except for a vessel under reconstruction on June 24, 1992, if 
the original qualifying LOA is less than 125 ft (38.1 m) LOA, 1.2 times 
the original qualifying LOA or 125 ft (38.1 m), whichever is less.
    (ii) Except for a vessel under reconstruction on June 24, 1992, if 
the original qualifying LOA is equal to or greater than 125 ft (38.1 
m), the original qualifying LOA.
    (iii) For an original qualifying vessel under reconstruction on 
June 24, 1992, the LOA on the date reconstruction was completed, 
provided that maximum LOA is certified under Sec. 679.4(c)(9).
    (2) With respect to the license limitation program, 1.2 times the 
LOA of the vessel on June 24, 1992, or if the vessel was under 
reconstruction on June 24, 1992, 1.2 times the LOA of the vessel on the 
date reconstruction was completed, except that the maximum LOA of a 
vessel cannot exceed:
    (i) 59 ft (18.0 m) LOA, if the LOA of the vessel on June 17, 1995, 
or on the date reconstruction was completed, was less than 60 ft (18.3 
m);
    (ii) 124 ft (37.8 m) LOA, if the LOA of the vessel on June 17, 
1995, or on the date reconstruction was completed, was less than 125 ft 
(38.1 m); or
    (iii) The LOA of the vessel on June 17, 1995, or on the date 
reconstruction was completed, if that LOA was 125 ft (38.1 m) or 
greater.
    Person means:
    (1) For purposes of IFQ species and the CDQ program, any individual 
who is a citizen of the United States or any corporation, partnership, 
association, or other entity (or its successor-in-interest), regardless 
of whether organized or existing under the laws of any state, who is a 
U.S. citizen.
    (2) (Applicable through December 31, 1998). For the purposes of the 
moratorium, any individual who is a citizen of the United States or any 
U.S. corporation, partnership, association, or other entity (or their 
successor-in-interest), whether or not organized or existing under the 
laws of any state.
    Processing, or to process, means the preparation of, or to prepare, 
fish or crab to render it suitable for human consumption, industrial 
uses, or long-term storage, including but limited to cooking, canning, 
smoking, salting, drying, freezing, or rendering into meal or oil, but 
does not mean icing, bleeding, heading, or gutting.
    Prohibited species quota (PSQ) means the annual amount of a 
prohibited species listed in Sec. 679.21(b)(1), in metric tons or 
numbers, that a CDQ group is

[[Page 43885]]

permitted to catch based on an allocation of that species which has 
been approved by NMFS.
    PSQ allocation means a percentage of a PSQ reserve specified 
pursuant to Sec. 679.31(g) that is assigned to a CDQ group when NMFS 
approves a proposed CDP.
    PSQ species means any species that has been assigned to a PSQ 
reserve as specified at Sec. 679.31(g) for purposes of the CDQ program.
    Qualified applicant means, for the purposes of the CDQ program:
    (1) A local fishermen's organization that represents an eligible 
community, or group of eligible communities, that is incorporated under 
the laws of the State of Alaska, or under Federal law, and whose board 
of directors is composed of at least 75 percent resident fishermen of 
the community (or group of communities); or
    (2) A local economic development organization that represents an 
eligible community or group of communities, and that is incorporated 
under the laws of the State of Alaska, or under Federal law, 
specifically for the purpose of designing and implementing a CDP, and 
that has a board of directors composed of at least 75 percent resident 
fishermen of the community (or group of communities).
    Qualified person means:
    (1) With respect to the IFQ program, see IFQ Management Measures at 
Sec. 679.40(a)(2).
    (2) With respect to the license limitation program, a person who 
was eligible on June 17, 1995, to document a fishing vessel under 
Chapter 121, Title 46, U.S.C.
    Resident fisherman means an individual with documented commercial 
or subsistence fishing activity who maintains a mailing address and 
permanent domicile in the community and is eligible to receive an 
Alaska Permanent Fund dividend at that address.
    State means the State of Alaska.
    Vessel length category means the length category designated on a 
license based on the MLOA of the vessel.
    4. In Sec. 679.4, paragraph (e) is revised and paragraphs (a)(6) 
and (i) are added to read as follows:


Sec. 679.4  Permits.

    (a) * * * 
    (6) Harvesting privilege. Quota shares, permits, or licenses issued 
pursuant to this part are neither an absolute right to the resource nor 
any interest that is subject to the ``takings'' provision of the Fifth 
Amendment to the U.S. Constitution. Rather, such quota shares, permits, 
or licenses represent only a harvesting privilege that may be revoked 
or amended subject to the requirements of the Magnuson-Stevens Act and 
other applicable law.
* * * * *
    (e) CDQ permit--(1) Applicability. This paragraph applies to 
vessels or processors required in Sec. 679.32 to obtain a CDQ permit 
prior to harvesting or taking deliveries of CDQ catch.
    (2) Application for a permit. A complete application for a CDQ 
permit must include the following:
    (i) The name and signature of the person submitting the application 
and the date the application was signed.
    (ii) The year for which the CDQ permit is requested.
    (iii) Whether the vessel or processor has received a CDQ permit 
before and, if so, the most recent year.
    (iv) The vessel or processor name.
    (v) The Federal fishery or processor permit number.
    (vi) The street address, mailing address, telephone number, and fax 
number of the person submitting the application.
    (vii) And for the following types of vessels or processors:
    (A) Trawl catcher/processors and motherships.
    (1) A diagram drawn to scale showing the location(s) where all CDQ 
and PSQ will be weighed on a certified scale, the location where 
observers will sample unsorted catch, and the location of the observer 
sampling station as described at Sec. 679.28(d), including the observer 
sampling scale.
    (2) The name of the manufacturer and model of the motion-
compensated observer sampling scale.
    (3) A copy of the most recent at-sea scale inspection certificate.
    (B) Shoreside processing plants. A diagram drawn to scale showing 
the location(s) where all CDQ and PSQ will be sorted and weighed on a 
scale certified by the State of Alaska.
    (C) Longline and pot catcher/processors and catcher vessels. The 
name of manufacturer and model of the motion-compensated observer 
sampling scale.
    (3) Issuance of permit. A CDQ permit will be issued to the 
applicant when the following requirements are met:
    (i) The Regional Administrator receives a completed CDQ permit 
application.
    (ii) NMFS completes an inspection of the vessel or processor and 
verifies that the following requirements are met.
    (A) The scale(s) on trawl catcher/processors or motherships to 
weigh CDQ catch have been certified by an authorized weights and 
measures agency within twelve months of the date of inspection.
    (B) The scale on a trawl catcher/processor or mothership is located 
so that an observer can sample unsorted catch after it has been weighed 
on the scale.
    (C) The observer sampling station on a vessel meets the 
requirements of Sec. 679.28(d).
    (D) The scale or scales in a shoreside processing plant meet the 
requirements of Sec. 679.28(c) and the CDQ observer can monitor the 
sorting and weighing of all CDQ species.
    (4) Duration. CDQ permits are effective the calendar year requested 
by the applicant. Issuance of a CDQ permit means that the vessel or 
processor complied with the requirements in paragraph (e)(3) of this 
section on the date the vessel or processor was inspected. Once 
permitted, vessel and processor owners and operators also are 
responsible for complying with all equipment and operational 
requirements in Sec. 679.28 and Sec. 679.32.
* * * * *
    (i) Licenses for license limitation groundfish or crab species--(1) 
General requirements. (i) In addition to the permit and licensing 
requirements prescribed in this part, and except as provided in 
paragraph (i)(2) of this section, each vessel within that portion of 
the Gulf of Alaska and the Bering Sea and Aleutian Islands management 
area over which the United States exercises exclusive fishery 
management authority must have a groundfish license on board at all 
times it is engaged in fishing activities defined in Sec. 679.2 as 
directed fishing for license limitation groundfish. This groundfish 
license, issued by NMFS to a qualified person, authorizes a license 
holder to conduct directed fishing for license limitation groundfish 
only in the specific area(s) designated on the license and may only be 
used on a vessel that complies with the vessel designation and vessel 
length category specified on the license.
    (ii) In addition to the permit and licensing requirements 
prescribed in this part, and except as provided in paragraph (i)(2) of 
this section, each vessel within that portion of the Bering Sea and 
Aleutian Islands area over which the United States exercises exclusive 
fishery management authority must have a crab species license on board 
at all times it is engaged in fishing activities defined in Sec. 679.2 
as directed fishing for crab species. This crab species license, issued 
by NMFS to a qualified person, authorizes a license holder to conduct 
directed fishing for crab species only for the specific species

[[Page 43886]]

and in the specific area(s) designated on the license, and may only be 
used on a vessel that complies with the vessel designation and vessel 
length category specified on the license.
    (2) Exempt vessels. Notwithstanding the requirements of paragraph 
(i)(1) of this section,
    (i) A catcher vessel or catcher/processor vessel that does not 
exceed 26 ft (7.9 m) LOA may conduct directed fishing for license 
limitation groundfish in the Gulf of Alaska without a groundfish 
license;
    (ii) A catcher vessel or catcher/processor vessel that does not 
exceed 32 ft (9.8 m) LOA may conduct directed fishing for crab species 
in the Bering Sea and Aleutian Islands management area and also may 
conduct directed fishing for license limitation groundfish in the 
Bering Sea and Aleutian Islands management area without a groundfish or 
crab species license;
    (iii) A catcher vessel or catcher/processor vessel that does not 
exceed 60 ft (18.3 m) LOA may use a maximum of 5 jig machines, one line 
per jig machine, and a maximum of 15 hooks per line, to conduct 
directed fishing for license limitation groundfish in the Bering Sea 
and Aleutian Islands management area without a groundfish license; or
    (iv) A catcher vessel or catcher/processor vessel that does not 
exceed 125 ft (38.1 m) LOA, and that was, after November 18, 1992, 
specifically constructed for and used exclusively in accordance with a 
CDQ approved by the Secretary of Commerce under subpart C of this part, 
and is designed and equipped to meet specific needs that are described 
in the CDQ.
    (3) Vessel designations and vessel length categories--(i) General. 
A license can be used only on a vessel that complies with the vessel 
designation specified on the license and that has an LOA less than or 
equal to the MLOA specified on the license.
    (ii) Vessel designations--(A) Catcher vessel. A license will be 
assigned the vessel designation of catcher vessel if:
    (1) For license limitation groundfish, no license limitation 
groundfish were processed on the vessel that qualified for the 
groundfish license under paragraph (i)(4) of this section during the 
period January 1, 1994, through June 17, 1995, or in the most recent 
calendar year of participation during the area endorsement qualifying 
period specified in paragraph (i)(4)(ii) of this section; or
    (2) For crab species, no crab species were processed on the vessel 
that qualified for the crab species license under paragraph (i)(5) of 
this section during the period January 1, 1994, through December 31, 
1994, or in the most recent calendar year of participation during the 
area/species endorsement qualifying period specified in paragraph 
(i)(5)(ii) of this section.
    (B) Catcher/processor vessel. A license will be assigned the vessel 
designation of catcher/processor vessel if:
    (1) For license limitation groundfish, license limitation 
groundfish were processed on the vessel that qualified for the 
groundfish license under paragraph (i)(4) of this section during the 
period January 1, 1994, through June 17, 1995, or in the most recent 
calendar year of participation during the area endorsement qualifying 
period specified in paragraph (i)(4)(ii) of this section; or
    (2) For crab species, crab species were processed on the vessel 
that qualified for the crab species license under paragraph (i)(5) of 
this section during the period January 1, 1994, through December 31, 
1994, or in the most recent calendar year of participation during the 
area endorsement qualifying period specified in paragraph (i)(5)(ii) of 
this section.
    (C) Changing a vessel designation. A person who holds a groundfish 
license or a crab species license with a catcher/processor vessel 
designation may, upon request to the Regional Administrator, have the 
license reissued with a catcher vessel designation. The vessel 
designation change to a catcher vessel will be permanent and that 
license will be valid for only those activities specified in the 
definition of catcher vessel designation at Sec. 679.2.
    (iii) Vessel length categories. A license will be assigned one of 
the following three vessel length categories based on its LOA on June 
17, 1995:
    (A) Vessel length category ``A'' if the LOA of the qualifying 
vessel on June 17, 1995, was equal to or greater than 125 ft (38.1 m) 
LOA.
    (B) Vessel length category ``B'' if the LOA of the qualifying 
vessel on June 17, 1995, was equal to or greater than 60 ft (18.3 m) 
but less than 125 ft (38.1 m) LOA.
    (C) Vessel length category ``C'' if the LOA of the qualifying 
vessel on June 17, 1995, was less than 60 ft (18.3 m) LOA.
    (4) Qualifications for a groundfish license. A groundfish license 
will be issued to an eligible applicant who owned a vessel that meets 
the criteria in paragraphs (i)(4)(i) and (i)(4)(ii) of this section.
    (i) General qualification periods (GQP). (A) To qualify for one or 
more of the area endorsements in paragraphs (i)(4)(ii)(A) and 
(i)(4)(ii)(B) of this section, a vessel must have made at least one 
legal landing of any amount of license limitation groundfish species 
harvested in the Bering Sea and Aleutian Islands management area or in 
State waters shoreward of that management area from:
    (1) January 1, 1988, through June 27, 1992;
    (2) January 1, 1988, through December 31, 1994, provided that the 
landing was of license limitation groundfish harvested using pot or jig 
gear from a vessel that was less than 60 ft (18.3 m) LOA; or
    (3) January 1, 1988, through June 17, 1995, provided that the 
vessel qualified for a crab fisheries endorsement under the Moratorium 
on Entry.
    (B) To qualify for one or more of the area endorsements in 
paragraphs (i)(4)(ii)(C) through (i)(4)(ii)(E) of this section, a 
vessel must have made at least one legal landing of any amount of 
license limitation groundfish species harvested in the Gulf of Alaska 
or in State waters shoreward of the Gulf of Alaska from:
    (1) January 1, 1988, through June 27, 1992;
    (2) January 1, 1988, through December 31, 1994, provided that the 
landing was of license limitation groundfish harvested using pot or jig 
gear from a vessel that was less than 60 ft (18.3 m) LOA; or
    (3) January 1, 1988, through June 17, 1995, provided that the 
vessel qualified for a crab fisheries endorsement under the Moratorium 
on Entry.
    (ii) Endorsement qualification periods (EQP). A groundfish license 
will be assigned one or more area endorsements based on the criteria in 
paragraphs (i)(4)(ii)(A) through (i)(4)(ii)(E) of this section.
    (A) Aleutian Islands area endorsement. A vessel of any length 
(vessel categories ``A'' through ``C'') must have made at least one 
legal landing of any amount of license limitation groundfish harvested 
from January 1, 1992, through June 17, 1995, in the Aleutian Islands 
Subarea or in State waters shoreward of that subarea for an Aleutian 
Islands area endorsement.
    (B) Bering Sea area endorsement. A vessel of any length (vessel 
categories ``A'' through ``C'') must have made at least one legal 
landing of any amount of license limitation groundfish harvested from 
January 1, 1992, through June 17, 1995, in the Bering Sea Subarea or in 
State waters shoreward of that subarea for a Bering Sea area 
endorsement.
    (C) Central Gulf area endorsement. (1) A vessel assigned to vessel 
category ``A'' must have made at least one legal landing of any amount 
of license limitation groundfish harvested in each of any 2 calendar 
years from January 1,

[[Page 43887]]

1992, through June 17, 1995, in the Central Area of the Gulf of Alaska 
or in State waters shoreward of that area, or in the West Yakutat 
District or in state waters shoreward of that district, for a Central 
Gulf area endorsement.
    (2) A vessel assigned to vessel category ``B'' must have made at 
least one legal landing of any amount of license limitation groundfish 
harvested in each of any 2 calendar years from January 1, 1992, through 
June 17, 1995, or at least four legal landings of license limitation 
groundfish harvested from January 1, 1995, through June 17, 1995, in 
the Central Area of the Gulf of Alaska or in State waters shoreward of 
that area, or in the West Yakutat District or in State waters shoreward 
of that district, for a Central Gulf area endorsement.
    (3) A vessel assigned to vessel category ``C'' must have made at 
least one legal landing of any amount of license limitation groundfish 
harvested from January 1, 1992, through June 17, 1995, in the Central 
Area of the Gulf of Alaska or in State waters shoreward of that area, 
or in the West Yakutat District or in state waters shoreward of that 
district, for a Central Gulf area endorsement.
    (D) Southeast Outside area endorsement. (1) A vessel assigned to 
vessel category ``A'' must have made at least one legal landing of any 
amount of license limitation groundfish harvested in each of any 2 
calendar years from January 1, 1992, through June 17, 1995, in the 
Southeast Outside District or in State waters shoreward of that 
district for a Southeast Outside area endorsement.
    (2) A vessel assigned to vessel category ``B'' must have made at 
least one legal landing of any amount of license limitation groundfish 
harvested in each of any 2 calendar years from January 1, 1992, through 
June 17, 1995, in the Southeast Outside District or in State waters 
shoreward of that district, or at least four legal landings of license 
limitation groundfish harvested from January 1, 1995, through June 17, 
1995, in the Southeast Outside District or in State waters shoreward of 
that district for a Southeast Outside area endorsement.
    (3) A vessel assigned to vessel category ``C'' must have made at 
least one legal landing of any amount of license limitation groundfish 
harvested from January 1, 1992, through June 17, 1995, in the Southeast 
Outside District or in State waters shoreward of that district for a 
Southeast Outside area endorsement.
    (E) Western Gulf area endorsement. (1) A vessel assigned to vessel 
category ``A'' must have made at least one legal landing of any amount 
of license limitation groundfish harvested in each of any 2 calendar 
years from January 1, 1992, through June 17, 1995, in the Western Area 
of the Gulf of Alaska or in State waters shoreward of that area for a 
Western Gulf area endorsement.
    (2) A vessel assigned to vessel category ``B'' and the vessel 
designation of catcher vessel must have made at least one legal landing 
of any amount of license limitation groundfish harvested from January 
1, 1992, through June 17, 1995, in the Western Area of the Gulf of 
Alaska or in State waters shoreward of that area for a Western Gulf 
area endorsement.
    (3) A vessel assigned to vessel category ``B'' and the vessel 
designation of catcher/processor vessel must have made at least one 
legal landing of any amount of license limitation groundfish harvested 
in each of any 2 calendar years from January 1, 1992, through June 17, 
1995, in the Western Area of the Gulf of Alaska or in State waters 
shoreward of that area, or at least four legal landings of any amount 
of license limitation groundfish harvested from January 1, 1995, 
through June 17, 1995, in the Western Area of the Gulf of Alaska or in 
State waters shoreward of that area for a Western Gulf area 
endorsement.
    (4) A vessel assigned to vessel category ``C'' must have made at 
least one legal landing of any amount of license limitation groundfish 
harvested from January 1, 1992, through June 17, 1995, in the Western 
Area of the Gulf of Alaska or in State waters shoreward of that area 
for a Western Gulf area endorsement.
    (iii) An eligible applicant that is issued a groundfish license 
based on a vessel's qualifications under paragraph (i)(4)(i)(A)(2) or 
(i)(4)(i)(B)(2) of this section must choose only one area endorsement 
for that groundfish license even if the vessel qualifies for more than 
one area endorsement.
    (iv) Notwithstanding the provisions in paragraph (i)(4) of this 
section, an eligible applicant whose vessel made a legal landing of any 
amount of license limitation groundfish harvested in the Bering Sea and 
Aleutian Islands management area or in State waters shoreward of that 
management area during the GQP defined in paragraph (i)(4)(i)(A) of 
this section, and made legal landings of any amount of license 
limitation groundfish harvested in one of the areas of the Gulf of 
Alaska or in State waters shoreward of one of the areas of the Gulf of 
Alaska during the EQP defined in paragraphs (i)(4)(ii) (C), (D), and 
(E) of this section, but did not make legal landings of any amount of 
license limitation groundfish harvested in the Gulf of Alaska or in 
State waters shoreward of the Gulf of Alaska during the GQP defined in 
paragraph (i)(4)(i)(B) of this section, and did not make legal landings 
of any amount of license limitation groundfish harvested in one of the 
areas of the Bering Sea and Aleutian Islands management area or in 
State waters shoreward of one of the areas of that management area 
during the EQP defined in paragraphs (i)(4)(ii) (A) and (B) of this 
section, will be issued a license with area endorsements based on the 
legal landings of license limitation groundfish harvested during the 
EQP and meeting the requirements in paragraphs (i)(4)(ii) (C), (D), and 
(E) of this section.
    (v) Notwithstanding the provisions in paragraph (i)(4) of this 
section, an eligible applicant whose vessel made a legal landing of any 
amount of license limitation groundfish harvested in the Gulf of Alaska 
or in State waters shoreward of the Gulf of Alaska during the GQP 
defined in paragraph (i)(4)(i)(B) of this section, and made legal 
landings of any amount of license limitation groundfish harvested in 
one of the areas of the Bering Sea and Aleutian Islands management area 
or in State waters shoreward of one of the areas of that management 
area during the EQP defined in paragraphs (i)(4)(ii) (A) and (B) of 
this section, but did not make legal landings of any amount of license 
limitation groundfish harvested in the Bering Sea and Aleutian Islands 
management area or in State waters shoreward of that management area 
during the GQP defined in paragraph (i)(4)(i)(A) of this section, and 
did not make legal landings of license limitation groundfish harvested 
in one of the areas of the Gulf of Alaska or in State waters shoreward 
of one of the areas of the Gulf of Alaska during the EQP defined in 
paragraph (i)(4)(ii) (C), (D), and (E) of this section, will be issued 
a license with area endorsements based on the legal landings of license 
limitation groundfish harvested during the EQP and meeting the 
requirements in paragraphs (i)(4)(ii) (A) and (B) of this section.
    (5) Qualifications for a crab species license. A crab species 
license will be issued to an eligible applicant who owned a vessel that 
meets the criteria in paragraphs (i)(5) (i) and (ii) of this section, 
except that vessels are exempt from the requirements in paragraph 
(i)(5)(i) of this section for the area/species endorsements in 
paragraph (i)(5)(ii) (A) and (H) of this section.
    (i) General qualification period (GQP). To qualify for one or more 
of the area/

[[Page 43888]]

species endorsements in paragraph (i)(5)(ii) of this section, a vessel 
must have:
    (A) Made at least one legal landing of any amount of crab species 
harvested from January 1, 1988, through June 27, 1992; or
    (B) Made at least one legal landing of any amount of crab species 
harvested from January 1, 1988, through December 31, 1994, providing 
that the vessel qualified for a groundfish fisheries endorsement under 
the Moratorium on Entry.
    (ii) Area/Species Endorsements. A crab species license will be 
assigned one or more area/species endorsements specified at Sec. 679.2 
based on the criteria in paragraphs (i)(5)(ii) (A) through (H) of this 
section.
    (A) Pribilof red king and Pribilof blue king. A vessel must have 
made at least one legal landing of any amount of red king or blue king 
crab harvested in the area described in the definition for the Pribilof 
red king and Pribilof blue king area/species endorsement in Sec. 679.2 
from January 1, 1993, through December 31, 1994, to qualify for a 
Pribilof red king and Pribilof blue king area/species endorsement.
    (B) BS/AI C. opilio and C. bairdi. A vessel must have made at least 
three legal landings of any amount of C. opilio or C. bairdi crab 
harvested in the area described in the definition for the BS/AI C. 
opilio or C. bairdi area/species endorsement in Sec. 679.2 from January 
1, 1992, through December 31, 1994, to qualify for a C. opilio and C. 
bairdi area/species endorsement.
    (C) St. Matthew blue king. A vessel must have made at least one 
legal landing of any amount of blue king crab harvested in the area 
described in the definition for the St. Matthews blue king area/species 
endorsement in Sec. 679.2 from January 1, 1992, through December 31, 
1994, to qualify for a St. Matthew blue king area/species endorsement.
    (D) Adak brown king. A vessel must have made at least three legal 
landings of any amount of brown king crab harvested in the area 
described in the definition for the Adak brown king area/species 
endorsement in Sec. 679.2 from January 1, 1992, through December 31, 
1994, to qualify for a Adak brown king area/species endorsement.
    (E) Adak red king. A vessel must have made at least one legal 
landing of any amount of red king crab harvested in the area described 
in the definition for the Adak red king area/species endorsement in 
Sec. 679.2 from January 1, 1992, through December 31, 1994, to qualify 
for a Adak red king area/species endorsement.
    (F) Bristol Bay red king. A vessel must have made at least one 
legal landing of any amount of red king crab harvested in the area 
described in the definition for the Bristol Bay red king area/species 
endorsement in Sec. 679.2 from January 1, 1991, through December 31, 
1994, to qualify for a Bristol Bay red king area/species endorsement.
    (G) Dutch Harbor brown king. A vessel must have made at least three 
legal landings of any amount of brown king crab harvested in the area 
described in the definition for the Dutch Harbor brown king area/
species endorsement in Sec. 679.2 from January 1, 1992, through 
December 31, 1994, to qualify for a Dutch Harbor brown king area/
species endorsement.
    (H) Norton Sound red king and Norton Sound blue king. A vessel must 
have made at least one legal landing of any amount of red king or blue 
king crab harvested in the area described in the definition for the 
Norton Sound red king and Norton Sound blue king area/species 
endorsement in Sec. 679.2 from January 1, 1993, through December 31, 
1994, to qualify for a Norton Sound red king and Norton Sound blue king 
area/species endorsement.
    (6) Application for a groundfish license or a crab species license. 
(i) An eligible applicant must meet all the criteria for eligibility in 
paragraph (i) of this section and submit a complete application to the 
Regional Administrator to receive a groundfish license or a crab 
species license.
    (ii) A successor-in-interest may apply in the place of an eligible 
applicant if the eligible applicant is unable to apply for a license 
because:
    (A) Of death or disability at the time of application, if the 
eligible applicant is an individual; or
    (B) The entity is no longer in existence at the time of 
application, if the eligible applicant is not an individual.
    (iii) An application for a groundfish license or a crab species 
license may be requested from and submitted to the Restricted Access 
Management Division, Alaska Region, NMFS, P.O. Box 21668, Juneau, AK 
99802-1668. An application may be requested also by telephone by 
calling 907-586-7202 or 800-304-4846 or by facsimile by calling 907-
586-7354. To be complete, an application for a groundfish license or a 
crab species license must be signed by the eligible applicant, or the 
person who represents the eligible applicant, and include:
    (A) The name of the vessel, state registration number of the 
vessels and, the U.S. Coast Guard documentation number of the vessel, 
if any.
    (B) The name, business address, and telephone and fax number of the 
owner of the vessel as of June 17, 1995, including all owners if more 
than one.
    (C) The name of the managing company.
    (D) Valid documentation of the legal landings that qualify the 
vessel for a groundfish license or a crab species license if requested 
by the Regional Administrator due to an absence of landing records for 
the vessel during the qualifying periods.
    (E) Valid documentation of the vessel's LOA on June 17, 1995. For 
purposes of determining LOA for the License Limitation Program, an 
eligible applicant must provide evidence showing:
    (1) The vessel's length on June 24, 1992, or the vessel's length on 
the date reconstruction was completed if the vessel was being 
reconstructed on June 24, 1992;
    (2) The vessel's length on June 17, 1995; and
    (3) The date the vessel was lengthened and the vessel's length 
before and after that date, if the vessel was lengthened after June 24, 
1992.
    (F) Valid documentation to support the vessel's designation of 
catcher vessel or catcher/processor vessel based on the criteria in 
Sec. 679.4(i)(3)(i).
    (7) Transfers--(i) General. A license holder may request NMFS, on a 
transfer request form provided by NMFS, to transfer the license to a 
transferee designated by the license holder on the transfer request 
form. The designated transferee may not conduct directed fishing for 
license limitation groundfish or crab species until NMFS reissues the 
license in the name of the designated transferee.
    (ii) Reissuance procedures. A license holder who wishes to transfer 
the license to another person must request NMFS to reissue the license 
to that person by submitting a complete transfer request form to NMFS 
to the address specified in paragraph (i)(6)(ii) of this section. Forms 
are available from that address.
    (A) To be complete, a transfer request form must be signed and 
dated by the license holder and include:
    (1) The name of the license holder (the names of all persons 
holding the license must be included if more than one person holds the 
license);
    (2) The name of the person who is the designated transferee and to 
whom the license is to be reissued (the names of all persons who are 
the designated transferee must be included if more than one person is 
the designated transferee);
    (3) Valid documentation that the designated transferee(s) is or are 
able to

[[Page 43889]]

document a fishing vessel under Chapter 121, Title 46, U.S.C.
    (B) The Regional Administrator shall reissue the license to the 
designated transferee if:
    (1) A complete transfer request has been submitted by the 
transferor.
    (2) The designated transferee is a person able to document a 
fishing vessel under Chapter 121, Title 46, U.S.C..
    (3) There are no fines, civil penalties, other payments due and 
outstanding, or outstanding permit sanctions resulting from Federal 
fishing violations involving any party to the transfer.
    (4) The transfer will not cause the designated transferee to exceed 
the license caps in Sec. 679.7(i).
    (iii) Severability of licenses. (A) Area endorsements or area/
species endorsements specified on a license are not severable from the 
license and must be transferred together.
    (B) A groundfish license and a crab species license issued based on 
the legal landings of the same vessel and initially issued to the same 
qualified person are not severable and must be transferred together.
    (8) Other provisions. (i) Any person committing, or a fishing 
vessel used in the commission of, a violation of the Magnuson-Stevens 
Fishery Conservation and Management Act or any regulations issued 
pursuant thereto, is subject to the civil and criminal penalty 
provisions and the civil forfeiture provisions of the Magnuson-Stevens 
Fishery Conservation and Management Act, part 621 of this chapter, 15 
CFR part 904 (Civil Procedure), and other applicable law. Penalties 
include, but are not limited to, permanent or temporary sanctions to 
licenses.
    (ii) Notwithstanding the provisions of the license limitation 
program in this part, vessels fishing for species other than license 
limitation groundfish as defined in Sec. 679.2 that were authorized 
under Federal regulations to incidentally catch license limitation 
groundfish without a Federal fisheries permit described at 
Sec. 679.4(b) will continue to be authorized to catch the maximum 
retainable bycatch amounts of license limitation groundfish as provided 
in this part without a groundfish license.
    (iii) An eligible applicant, who qualifies for a groundfish license 
or crab species license but whose vessel has been subsequently lost or 
destroyed, will be issued the license for which the lost or destroyed 
vessel qualified. This license:
    (A) Will have the vessel designation and vessel length category of 
the lost or destroyed vessel.
    (B) Cannot be used to conduct directed fishing for license 
limitation groundfish or to conduct directed fishing for crab species 
on a vessel that has an LOA greater than the MLOA designated on the 
license.
    (iv) A qualified person who owned a vessel on June 17, 1995, that 
made a legal landing of license limitation groundfish, or crab species 
if applicable, between January 1, 1988, and February 9, 1992, but whose 
vessel was unable to meet all the criteria in paragraph (i)(4) of this 
section for a groundfish license or paragraph (i)(5) of this section 
for a crab species license because of an unavoidable circumstance 
(i.e., the vessel was lost, damaged, or otherwise unable to participate 
in the license limitation groundfish or crab fisheries) may receive a 
license if the qualified person is able to demonstrate:
    (A) That the owner of the vessel at the time of the unavoidable 
circumstance held a specific intent to conduct directed fishing for 
license limitation groundfish or crab species with that vessel during a 
specific time period in a specific area.
    (B) That the specific intent to conduct directed fishing for 
license limitation groundfish or crab species with that vessel was 
thwarted by a circumstance that was:
    (1) Unavoidable.
    (2) Unique to the owner of that vessel, or unique to that vessel.
    (3) Unforeseen and reasonably unforeseeable to the owner of the 
vessel.
    (C) That the circumstance that prevented the owner from conducting 
directed fishing for license limitation groundfish or crab species 
actually occurred.
    (D) That, under the circumstances, the owner of the vessel took all 
reasonable steps to overcome the circumstance that prevented the owner 
from conducting directed fishing for license limitation groundfish or 
crab species.
    (E) That any amount of license limitation groundfish or appropriate 
crab species was harvested on the vessel in the specific area that 
corresponds to the area endorsement or area/species endorsement for 
which the qualified person who owned a vessel on June 17, 1995, is 
applying and the harvested license limitation groundfish or crab 
species was legally landed after the vessel was prevented from 
participating by the unavoidable circumstance but before June 17, 1995.
    (v) A groundfish license or a crab species license may be used on a 
vessel that complies with the vessel designation on the license and 
that does not exceed the MLOA on the license.
    5. In Sec. 679.5, new paragraphs (m) and (n) are added to read as 
follows:


Sec. 679.5  Recordkeeping and reporting.

* * * * *
    (m) CDQ check-in/check-out report. The CDQ representative must 
submit a check-in/check-out report for each vessel harvesting 
groundfish and halibut CDQ under Subpart C of this part.
    (1) Check-in. The CDQ representative must submit a check-in message 
by fax to NMFS before the operator of a catcher vessel or catcher/
processor begins harvesting groundfish or halibut CDQ. The check-in 
message must be submitted before the first trip of the year and if CDQ 
fishing begins again after a check-out message has been sent for the 
vessel.
    (2) Check-out. The CDQ representative must submit a check-out 
message by fax to NMFS after the delivery of CDQ catch by a catcher 
vessel unless that vessel will be CDQ fishing on its next trip and 
after the retrieval of a CDQ haul or set by a catcher/processor unless 
that vessel will be CDQ fishing on its next haul or set. The check-out 
message must be received by NMFS before the vessel deploys gear in a 
non-CDQ fishery.
    (3) Information required. The CDQ representative must include the 
following in each CDQ check-in/check-out report.
    (i) The CDQ number.
    (ii) The vessel name.
    (iii) The Federal fisheries or processor number or ADF&G number if 
the vessel is not required to have a Federal fisheries permit.
    (iv) Check-in message--(A) Catcher vessel. The date the CDQ trip 
will start.
    (B) Catcher/processor. The date CDQ fishing will start and the 
first haul or set number for the CDQ catch.
    (v) Check-out message--(A) Catcher vessel. The date CDQ catch was 
delivered and name of processor that received delivery.
    (B) Catcher/processor. The date CDQ fishing ended and the last haul 
or set number for the CDQ catch.
    (vi) The CDQ representative's printed name and signature, and the 
date of signature.
    (n) CDQ catch report--(1) Applicability. The CDQ representative 
must submit a catch report summarizing the CDQ and PSQ catch for each 
vessel each week that CDQ fishing occurs.
    (2) Time limits and submittal. The CDQ representative must submit a 
CDQ catch report to NMFS no later than 1200 hours, A.l.t., on the 
Tuesday following the end of the applicable weekly reporting period.

[[Page 43890]]

    (3) Information required. The CDQ representative must include the 
following in each CDQ catch report.
    (i) Whether the submission is an original or revised report.
    (ii) The CDQ number.
    (iii) The week ending date.
    (iv) CDQ and PSQ catch information. The CDQ representative must 
report the following CDQ and PSQ catch information for each catcher/
processor harvesting and each catcher vessel delivering CDQ or PSQ 
during the weekly reporting period.
    (A) The Federal fisheries or processor number or ADF&G number if 
the vessel is not required to have a Federal fisheries permit.
    (B) The vessel name.
    (C) The gear type used to harvest CDQ.
    (D) The total weight to the nearest 0.01 mt or the total number of 
catch of all species in each category of CDQ or PSQ. The catch of 
nonallocated species from any vessel; the catch of crab, herring, or 
salmon PSQ from non-trawl vessels; or the catch of halibut PSQ from 
vessels using pot gear should not be reported on the CDQ catch report.
    (v) The CDQ representative's printed name, signature, and date of 
signature.
    6. In Sec. 679.7, paragraph (d) is revised and paragraph (j) is 
added to read as follows:


Sec. 679.7  Prohibitions.

* * * * *
    (d) CDQ. (1) Participate in a Western Alaska CDQ program in 
violation of subpart C of this part.
    (2) Fail to submit, submit inaccurate information on, or 
intentionally submit false information on any report, application, or 
statement required under this part.
    (3) Participate as a community in more than one CDP unless the 
second CDP is for a halibut CDQ fishery only.
    (4) Harvest groundfish or halibut CDQ or PSQ on behalf of a CDQ 
group if the vessel is not listed as an eligible vessel on an approved 
CDP, before the CDQ representative has submitted a check-in report for 
the vessel, or after the CDQ representative has submitted a check-out 
report for the vessel.
    (5) For a catcher/processor or shoreside processor, catch or take 
delivery of CDQ without a valid CDQ permit.
    (6) For a CDQ group, exceed a CDQ or halibut PSQ.
    (7) Use trawl gear to harvest groundfish CDQ in Zone 1 after the 
CDQ group's red king crab PSQ or C. bairdi Tanner crab PSQ in Zone 1 is 
attained.
    (8) Use trawl gear to harvest groundfish CDQ in Zone 2 after the 
CDQ group's PSQ for C. bairdi Tanner crab in Zone 2 is attained.
    (9) Use trawl gear to harvest groundfish CDQ in Herring Savings 
Areas (HSA) after the CDQ group's herring PSQ is attained.
    (10) Use trawl gear to harvest groundfish CDQ in the Chinook Salmon 
Savings Area between January 1 and April 15 after the CDQ group's 
chinook salmon PSQ is attained.
    (11) Use trawl gear to harvest groundfish CDQ in the Chum Salmon 
Savings Area between September 1 and October 14 after the CDQ group's 
non-chinook salmon PSQ is attained.
    (12) For a vessel operator, harvest CDQ fixed gear sablefish or 
halibut with other than fixed gear.
    (13) For a catcher vessel using trawl gear, discard any groundfish 
CDQ species or salmon or herring PSQ before it is delivered to an 
eligible processor under a CDP.
    (14) For a vessel using trawl gear, release CDQ catch from the 
codend before it is brought onboard the vessel and weighed on a 
certified scale. This includes, but is not limited to, ``codend 
dumping'' and ``codend bleeding.''
    (15) For a catcher vessel, catch, retain on board, or deliver CDQ 
groundfish or halibut together with non-CDQ groundfish or halibut, 
except that IFQ sablefish and halibut may be caught, retained, or 
delivered together with CDQ groundfish and halibut by vessels using 
fixed gear.
    (16) For a catcher/processor or an observed catcher vessel, combine 
catch from more than one CDQ group or from CDQ and IFQ in the same haul 
or set.
    (17) Use any CDQ groundfish as a basis species for calculating 
retainable bycatch amounts under Sec. 679.20.
    (18) For a CDQ representative, use methods other than those 
approved in the CDP to report CDQ and PSQ on the CDQ catch report.
    (19) Fail to comply with the requirements of a CDP.
* * * * *
    (j) License Limitation Program--(1) Number of licenses. (i) Hold 
more than ten groundfish licenses in the name of that person at any 
time, except as provided in paragraph (i)(1)(iii) of this section;
    (ii) Hold more than five crab species licenses in the name of that 
person at any time, except as provided in paragraph (i)(1)(iii) of this 
section; or
    (iii) Hold more licenses than allowed in paragraphs (i)(1) (i) and 
(ii) of this section unless those licenses were issued to that person 
in the initial distribution of licenses. Any person who receives in the 
initial distribution more licenses than allowed in paragraphs (i)(1) 
(i) and (ii) of this section shall have no transfer applications for 
receipt of additional licenses approved until the number of licenses in 
the name of that person is less than the numbers specified in 
paragraphs (i)(1) (i) and (ii) of this section; furthermore, when a 
person becomes eligible to receive licenses by transfer through the 
provisions of this paragraph, that person is subject to the provisions 
in paragraphs (i)(1) (i) and (ii) of this section;
    (2) Use gear other than fixed gear east of 140 deg. W. long., 
regardless of the gear used to qualify for the license;
    (3) Conduct directed fishing for license limitation groundfish 
without a groundfish license, except as provided in Sec. 679.4(i)(2);
    (4) Conduct directed fishing for crab species without a crab 
species license, except as provided in Sec. 679.4(i)(2);
    (5) Process license limitation groundfish on board a vessel without 
a groundfish license with a Catcher/processor designation;
    (6) Process crab species on board a vessel without a crab species 
license with a Catcher/processor designation;
    (7) Use a license on a vessel that has an LOA that exceeds the MLOA 
of the vessel that was used to originally qualify for that license;
    (8) Lease a groundfish or crab species license.
    7. In Sec. 679.20, paragraphs (c)(1)(iii), (c)(2)(ii), and 
(c)(3)(iii) are revised, and paragraph (e)(3) is added to read as 
follows:


Sec. 679.20  General limitations.

* * * * *
    (c) Annual Specifications--(1) Proposed specifications--* * *
    (iii) BSAI. The BSAI proposed specifications will specify the 
annual TAC and initial TAC amounts for each target species and the 
``other species'' category and apportionments thereof established under 
Sec. 679.20(a)(2), prohibited species catch allowances established 
under Sec. 679.21, seasonal allowances of pollock TAC (including 
pollock CDQ), and reserve amounts established under Sec. 679.31 (b), 
(d), (e), and (g) for pollock CDQ, sablefish CDQ, groundfish CDQ, and 
PSQ.
    (2) Interim specifications. * * *
    (ii) BSAI. Except for pollock and the hook and line and pot gear 
allocation of sablefish, one quarter of each proposed initial TAC and 
apportionment thereof, one quarter of each CDQ reserve established 
under Sec. 679.31 (b), (d), (e), and (g), and one quarter of the 
proposed prohibited species catch allowance established under 
Sec. 679.21.

[[Page 43891]]

    (A) The interim specifications for pollock will be equal to the 
first seasonal allowance under paragraph (a)(5)(i)(A) of this section 
that is published in the proposed specifications under paragraph (c)(1) 
of this section.
    (B) The interim specifications for CDQ pollock will be equal to the 
first seasonal allowance that is published in the proposed 
specifications under paragraph (c)(1) of this section.
    (3) Final specifications. * * *
    (iii) The final specifications will specify the annual TAC for each 
target species and the ``other species'' category and apportionments 
thereof, prohibited species catch allowances, seasonal allowances of 
the pollock TAC (including pollock CDQ), and the reserve amounts 
established under Sec. 679.31 (b), (d), (e) and (g) for pollock CDQ, 
sablefish CDQ, groundfish CDQ, and PSQ, respectively.
* * * * *
    (e) * * *
    (3) CDQ. Retained CDQ species may not be used as a basis species to 
calculate maximum retainable bycatch amounts.
* * * * *
    8. In Sec. 679.21, paragraphs (b)(2)(ii), (b)(3), (e)(1) (v) and 
(vi) are revised, and paragraphs (e)(3)(iv)(G) and (e)(4)(ii)(F) are 
added to read as follows:


Sec. 679.21  Prohibited species bycatch management.

* * * * *
    (b) * * *
    (2) * * *
    (ii) Sort its catch immediately after retrieval of the gear and, 
except as provided below, return all prohibited species or parts 
thereof to the sea immediately, with a minimum of injury, regardless of 
its condition, after allowing for sampling by an observer if an 
observer is aboard. The following exceptions are made.
    (A) Salmon prohibited species catch in the BSAI non-CDQ groundfish 
fisheries under paragraph (c) of this section and Sec. 679.26.
    (B) Catcher vessels using trawl gear in the CDQ fisheries under 
subpart C of this part must retain all salmon and herring prohibited 
species catch and deliver it to a processor with a valid CDQ permit.
    (3) Rebuttable presumption. Except as provided under paragraph (c) 
of this section, Sec. 679.26, or for salmon and herring retained by 
catcher vessels using trawl gear in the CDQ fisheries, there will be a 
rebuttable presumption that any prohibited species retained on board a 
fishing vessel regulated under this part was caught and retained in 
violation of this section.
* * * * *
    (e) * * *
    (1) * * *
    (v) Chinook salmon. The PSC limit of chinook salmon caught while 
conducting any non-CDQ trawl fishery for groundfish in the BSAI between 
January 1 and April 15 is 44,400 fish. A chinook salmon prohibited 
species catch reserve of 3,600 fish is established for the CDQ 
fisheries under Sec. 679.31.
    (vi) Non-chinook salmon. The PSC limit of non-chinook salmon caught 
while conducting any non-CDQ trawl fishery for groundfish in the CVOA 
between August 15 and October 14 is 38,850 fish. A non-chinook salmon 
prohibited species catch reserve of 3,150 fish is established for the 
CDQ fisheries under Sec. 679.31.
    (3) * * *
    (iv) * * *
    (G) CDQ fisheries. 7.5 percent of the PSC limits are apportioned to 
the CDQ fisheries under Sec. 679.31.
    (4) * * *
    (ii) * * *
    (F) CDQ fisheries. 7.5 percent of the non trawl halibut PSC limit 
is apportioned to the CDQ fisheries under Sec. 679.31.
    9. In Sec. 679.23, paragraph (e)(3) is amended by revising the 
headings of paragraphs (e)(3) (i) and (ii) and by adding paragraph 
(e)(3)(iii) to read as follows:


Sec. 679.23  Seasons.

* * * * *
    (e) * * * * *
    (3) * * *
    (i) Halibut CDQ. * * *
    (ii) Sablefish CDQ. * * *
    (iii) Groundfish CDQ. Directed fishing for groundfish species, 
other than fixed gear sablefish under the Western Alaska CDQ program, 
pursuant to subpart C of this part is authorized from 0001 hours, 
A.l.t., January 1, through the end of the fishing year, except as 
provided in paragraph (c) of this section.
* * * * *
    10. In subpart B, Sec. 679.28 proposed to be amended at 62 FR 
32564, is further proposed to be amended by revising paragraph (a) and 
adding new paragraphs (c) through (f) as follows:


Sec. 679.28  Equipment and Operational Requirements for Catch Weight 
Measurement.

    (a) Applicability. This section contains the requirements for 
scales certified by NMFS to weigh catch at sea, scales certified by the 
State of Alaska, observer sampling stations, and certified bins for 
volumetric estimates of catch weight. Requirements for specific vessels 
or processors to use this equipment are made elsewhere in this part.
* * * * *
    (c) Scales certified by the State of Alaska. Scales used to weigh 
groundfish catch that also are required to be certified by the State of 
Alaska under Alaska Statutes 45.75 must meet the following 
requirements.
    (1) Certification. The scale must display a valid State of Alaska 
certification sticker indicating that the scale was certified within 12 
months of the date of inspection.
    (2) The scale and scale display must be visible simultaneously to 
the observer. Observers, NMFS personnel, or an authorized officer must 
be allowed to observe the weighing of fish on the scale and be able to 
read the scale display at all times.
    (3) Printed scale weights. Printouts of the scale weight of each 
haul, set, or delivery must be made available to observers, NMFS 
personnel, or an authorized officer at the time they are printed and 
anytime thereafter for the duration of the fishing year. Printouts must 
be retained by the operator or manager as specified in 
Sec. 679.5(a)(15).
    (d) Observer Sampling Station--(1) Accessibility. All of the 
equipment required for an observer sampling station must be [made] 
available to the observer at all times while a sampling station is 
required and the observer is on board the vessel.
    (2) Location--(i) Motherships or catcher/processors and catcher 
vessels using trawl gear. The observer sampling station must be located 
within 4 m of the location from which the observer samples unsorted 
catch.
    (ii) Longline or pot catcher vessels or catcher/processors. The 
observer sampling station must be located within 3 m of the location 
where fish are brought on board the vessel.
    (3) Minimum work space. The observer must have a working area at 
least 1.8 m wide by 2.5 m long including the observer's sampling table, 
for sampling and storage of fish to be sampled. The observer must be 
able to stand upright in the area in front of the table and scale.
    (4) Table. The observer's sampling table must be at least 0.6 m 
deep, 1.2 m wide and 0.9 m high and must not be more than 1.1 m high. 
The entire surface area of the table must be available for use by the 
observer. Any area used for the motion-compensated platform scale is in 
addition to the minimum space requirements for the table. The 
observer's sampling table must be secured to the floor or wall.

[[Page 43892]]

    (5) Motion-compensated platform scale--(i) Specifications. The 
electronic motion-compensated platform scale must have a capacity of at 
least 50 kg. The scale must be mounted within 1 m of the observer's 
sampling table.
    (ii) Test weights. At least two 5-kg, two 10-kg, and one 20-kg test 
weights must be on board the vessel at all times when an observer 
sampling station is required. Each test weight must have an identifying 
number or character code stamped or otherwise permanently affixed to 
it. The identification number and weight of each test standard to the 
nearest 0.1 kg must be verified in writing annually by the scale 
manufacturer or a scale inspector authorized by the Regional 
Administrator. This written verification must be signed and dated and 
be on board the vessel at all times.
    (iii) Maximum permissible error at sea. The motion-compensated 
platform scale must weigh the test weights to within the maximum 
permissible error specified in Appendix A, section 4, Table 1 when 
tested at sea by an observer.
    (6) Other requirements. The sampling station must include floor 
grating, adequate lighting, and a hose that supplies fresh or sea water 
to the observer.
    (7) Requirements for sampling catch. On motherships and catcher/
processors using trawl gear, the conveyor belt conveying unsorted catch 
must have a removable board to allow fish to be diverted from the belt 
directly into the observer's sampling baskets. The diverter board must 
be located after the certified scale used to weigh total catch so that 
the observer can use this scale to weigh large samples.
    (e) Certified bins for volumetric estimates of catch weight--(1) 
Certification. The information required in this paragraph must be 
prepared, dated, and signed by a licensed engineer with no financial 
interest in fishing, fish processing, or fish tender vessels. Complete 
bin certification documents must be submitted to the Regional 
Administrator prior to harvesting or receiving groundfish from a 
fishery in which certified bins are required and must be on board the 
vessel and must be available to the observer at all times.
    (2) Specifications--(i) Measurement and marking. The volume of each 
bin must be determined by accurate measurement of the internal 
dimensions of the bin. The internal walls of the bin must be 
permanently marked and numbered in 10-cm increments indicating the 
level of fish in the bin in cm. All marked increments and numerals must 
be readable from the outside of the bin through a viewing port or hatch 
at all times. Marked increments are not required on the wall in which 
the viewing port is located unless such increments are necessary to 
determine the level of fish in the bin from another viewing port. Bins 
must be lighted in a manner that allows marked increments to be read 
from the outside of the bin by an observer or authorized officer. For 
bin certification documents dated after [insert date 30 days after date 
of publication of the final rule in the Federal Register], the numerals 
at the 10-cm increment marks must be at least 4 cm high.
    (ii) Viewing ports. Each bin must have a viewing port or ports from 
which the internal bin markings and numerals on all walls of the bin, 
except the wall in which the viewing port is placed, can be seen from 
the outside of the bin.
    (3) Information required. For bin certification documents submitted 
after [insert date 30 days after date of publication of the final rule 
in the Federal Register], the person certifying the bins must provide:
    (i) The vessel name.
    (ii) The date the engineer measured the bins and witnessed the 
location of the marked increments and numerals.
    (iii) A diagram, to scale, of each bin showing the location of the 
marked increments on each internal wall of the bin, the location, and 
dimensions of each viewing port or hatch, and any additional 
information needed to estimate the volume of fish in the bin.
    (iv) Tables indicating the volume of each certified bin in cubic 
meters for each 10-cm increment marked on the sides of the bins.
    (v) Instructions for determining the volume of fish in each bin 
from the marked increments and table.
    (vi) The person's name and signature and date the completed bin 
certification documents were signed.
    (4) Recertification. The bin's volume and marked and numbered 
increments must be recertified if the bin is modified in a way that 
changes its size or shape or if marking strips or marked increments are 
moved or added.
    (5) Operational requirements--(i) Placement of catch in certified 
bins. All catch must be placed in a bin certified under this paragraph 
to estimate total catch weight prior to sorting. Refrigerated seawater 
tanks may be used for volumetric estimates only if the tanks comply 
with all other requirements of this paragraph, no water is in the tanks 
before fish are added, and no water is added to the tanks before the 
observer records the level of fish in the tank. No adjustments of 
volume will be made for the presence of water in the bin or tank.
    (ii) Prior notification. Vessel operators must notify observers 
prior to any removal or addition of fish from each bin used for 
volumetric measurements of catch so that an observer may make bin 
volume estimates prior to fish being removed from or added to the bin. 
Once a volumetric estimate has been made, additional fish may not be 
added to the bin until at least half the original volume has been 
removed. Fish may not be removed from or added to a bin used for 
volumetric estimates of catch weight until an observer indicates that 
bin volume estimates have been completed and any samples of catch 
required by the observer have been taken.
    (iii) Fish from separate hauls or deliveries from separate 
harvesting vessels may not be mixed in any bin used for volumetric 
measurements of catch.
    (iv) The bins must not be filled in a manner that obstructs the 
viewing ports or prevents the observer from seeing the level of fish 
throughout the bin.
    11. Section 679.30 is revised to read as follows:


Sec. 679.30  General CDQ regulations.

    (a) Application procedure. The CDQ program is a voluntary program. 
Allocations of CDQ and PSQ are made to CDQ groups and not to vessels or 
processors fishing under contract with any CDQ group. Any vessel 
harvesting or processing CDQ or PSQ under a CDP must comply with all 
other requirements of this part. Allocations of CDQ and PSQ are harvest 
privileges that expire upon the expiration of the CDP. When a CDP 
expires, further CDQ allocations are not implied or guaranteed, and a 
CDQ group must re-apply for further allocations on a competitive basis 
with other CDQ groups. The CDQ allocations provide the means for CDQ 
groups to complete their CDQ projects. A CDQ group may apply for CDQ 
and PSQ allocations by submitting a proposed CDP to the State during 
the CDQ application period which will be announced by the State. A 
proposed CDP must be submitted by a qualified applicant and must 
include:
    (1) Community development information. Community development 
information includes:
    (i) Project description. A detailed description of all proposed CDQ 
projects, including the short- and long-term benefits to the CDQ group 
from the proposed CDQ projects. CDQ projects should not be designed 
with the expectation of CDQ allocations beyond those requested in the 
proposed CDP.

[[Page 43893]]

    (ii) Project schedule. A schedule for the completion of each CDQ 
project with measurable milestones for determining the progress of each 
CDQ project.
    (iii) Employment. The number of individuals to be employed through 
the CDP projects, and a description of the nature of the work and the 
career advancement potential for each type of work.
    (iv) Community eligibility. A list of the participating 
communities. Each participating community must be listed in Table 7 of 
this part or meet the criteria for an eligible community under 
Sec. 679.2.
    (v) Community support. A demonstration of each participating 
community's support for the CDQ group and the managing organization 
participating through an official letter approved by the governing body 
of each such community.
    (2) Managing organization information. A proposed CDP must include 
the following information about the managing organization:
    (i) Structure and personnel. A description of the management 
structure and key personnel, such as resumes and references, including 
the name, address, fax number, and telephone number of the CDQ 
representative.
    (ii) Management qualifications. A description of how the managing 
organization is qualified to carry out the CDP projects in the proposed 
CDP, and a demonstration that the managing organization has the 
management, technical expertise, and ability to manage CDQ allocations 
and prevent exceeding a CDQ or PSQ.
    (iii) Legal relationship. Documentation of the legal relationship 
between the CDQ group and the managing organization (if the managing 
organization is different from the CDQ group) clearly describing the 
responsibilities and obligations of each party as demonstrated through 
a contract or other legally binding agreement.
    (iv) Board of directors. The name, address, and telephone number of 
each member of the board of directors of the CDQ group. If a qualified 
applicant represents more than one community, the board of directors of 
the qualified applicant must include at least one member elected in an 
at-large election by his or her community, for each community in the 
CDQ group. For the purposes of this paragraph, election-at-large means 
that all registered voters in the community are eligible to vote.
    (3) Business information. A proposed CDP must include the following 
business information:
    (i) Business relationships. A description of all business 
relationships between the CDQ group and all individuals who have a 
financial interest in a CDQ project or subsidiary venture, including 
but not limited to, any arrangements for management and audit control 
and any joint venture arrangements, loans, or other partnership 
arrangements, including the distribution of proceeds among the parties.
    (ii) Profit sharing. A description of all profit sharing 
arrangements.
    (iii) Funding. A description of all funding and financing plans.
    (iv) General budget for implementing the CDP. A general account of 
estimated income and expenditures for each CDQ project for the total 
number of calendar years that the CDP is in effect.
    (v) Financial statement for the CDQ group. The most recent audited 
income statement, balance sheet, cash flow statement, management 
letter, and agreed upon procedures report.
    (vi) Organizational chart. A visual representation of the CDQ 
group's entire organizational structure including all divisions, 
subsidiaries, joint ventures, and partnerships. This chart must include 
the type of legal entity, state of registration, and percentage of 
ownership.
    (4) Request for CDQ and PSQ allocations. A list of the percentage 
of each CDQ reserve and PSQ reserve, as defined at Sec. 679.31 (b)-(g), 
that is being requested. The request for allocations of CDQ and PSQ 
must identify percentage allocations requested for target species and 
bycatch species for each target fishery. Target fishery designations 
must include the primary target species of the fishery and gear type of 
the vessel that will be used to harvest the catch.
    (5) Fishing plan for groundfish and halibut CDQ fisheries. The 
following information must be provided for all vessels and processors 
that will be harvesting groundfish and halibut CDQ.
    (i) List of eligible vessels and processors--(A) Vessels. A list of 
the name, Federal fisheries permit number (if applicable), ADF&G vessel 
number, LOA, gear type, and vessel type (catcher vessel, catcher/
processor, or mothership) for each vessel that will be used to catch or 
process CDQ and PSQ. Any CDQ vessel that is exempt from the License 
Limitation Program under Sec. 679.4(i)(2)(iv) must be identified as 
such.
    (B) Shoreside processors or buying stations. A list of the name, 
Federal processor permit number, and location of each shoreside 
processor or buying station that is required to have a Federal 
processor permit under Sec. 679.4(f) and will take deliveries of, or 
process, CDQ catch.
    (C) Buyers of halibut CDQ. A list of processors of halibut CDQ that 
are not required to have a Federal Processor Permit under 
Sec. 679.4(f), including the name of the buyer or processor, mailing 
address, telephone number, and location where halibut CDQ will be 
landed.
    (ii) Sources of data or methods for estimating CDQ and PSQ catch. 
The sources of data or methods that will be used to estimate catch 
weight of CDQ and PSQ for each vessel or processor proposed as eligible 
under the CDP. For each vessel or processor, the CDP must specify 
whether the NMFS' standard sources of data set forth at 
Sec. 679.32(e)(3) or some other alternative will be used. For catcher 
vessels using nontrawl gear, the CDP also must specify whether the 
vessel will be retaining all groundfish CDQ or will be discarding some 
CDQ catch at sea. The CDQ group may propose the use of an alternative 
method such as the sorting and weighing all catch by species on 
processor vessels or using larger sample sizes than would be required 
under Sec. 679.32(e)(3). Alternatives to the requirement for a 
certified scale or an observer sampling station may not be proposed. 
NMFS will review the proposal for the requirements specified in 
paragraphs (a)(5)(ii) (A) through (D) of this section:
    (A) The alternative proposed will provide equivalent or better 
estimates than use of the NMFS standard data source.
    (B) Each haul, set, or pot on an observed vessel can be sampled by 
an observer for species composition.
    (C) Any proposal to sort catch before it is weighed assures that 
the sorting and weighing process will be monitored by an observer.
    (D) The CDQ observer is required to be on duty no more than 12 
hours in each 24-hour period and is required to sample no more than 9 
hours in each 24-hour period.
    (E) The CDQ observer on a vessel using trawl gear is required to 
sample no more than 3 hauls in each 24-hour period. NMFS will review 
the proposal and approve it or notify the CDQ group in writing if the 
proposed alternative does not meet these requirements. The CDQ group 
may remove the vessel or processor for which the alternative method is 
proposed from the proposed CDP to facilitate approval of the CDP and 
add the vessel or processor to the CDP by amendment at a later date.
    (iii) Amendments to the list of eligible vessels and processors. 
The list of eligible vessels and processors may be

[[Page 43894]]

amended by submitting the information required in paragraphs (a)(5) (i) 
and (ii) of this section as a technical amendment to the CDP.
    (6) CDQ planning--(i) Transition plan. A proposed CDP must include 
an overall plan and schedule for transition from reliance on CDQ 
allocations to self-sufficiency in fisheries for each CDQ project.
    (ii) Post-allocation plan. [Reserved]
    (b) Public hearings on CDQ application. When the CDQ application 
period has ended, the State must hold a public hearing to obtain 
comment on the proposed CDPs from all interested persons. The hearing 
must cover the substance and content of proposed CDPs so that the 
general public, and particularly the affected parties, have a 
reasonable opportunity to understand the impact of the proposed CDPs. 
The State must provide reasonable public notification of hearing date 
and location. The State must make available for public review, at the 
time of public notification of the hearing, all State materials 
pertinent to the hearing.
    (c) Council consultation. Before the State sends its 
recommendations for approval of proposed CDPs to NMFS, the State must 
consult with the Council, and make available, upon request, proposed 
CDPs that are not part of the State's recommendations.
    (d) Review and approval of proposed CDPs. The State must transmit 
the proposed CDPs and its recommendations for approval of each of the 
proposed CDPs to NMFS along with the findings and the rationale for the 
recommendations by October 7. The State shall determine in its 
recommendations for approval of the proposed CDPs that each proposed 
CDP meets all applicable requirements of this part. Upon receipt by 
NMFS of the proposed CDPs and the State's recommendations for approval, 
NMFS will review the proposed CDPs and approve those that it determines 
meet all applicable requirements. In the event of approval of the CDP, 
NMFS will notify the State in writing that the proposed CDP is approved 
by NMFS and is consistent with all requirements for CDPs. If NMFS finds 
that a proposed CDP does not comply with the requirements of this part, 
NMFS must so advise the State in writing, including the reasons 
therefor. The State may submit a revised proposed CDP along with 
revised recommendations for approval to NMFS.
    (e) Transfer. CDQ groups may request NMFS to transfer CDQ 
allocations, CDQ, PSQ allocations, or PSQ from one to another by each 
group filing an appropriate amendment to its CDP. If NMFS approves both 
amendments, NMFS will make the requested transfer(s) by decreasing the 
account balance of the CDQ group from which the CDQ or PSQ species is 
transferred by the amount transferred, and by increasing the account 
balance of the CDQ group receiving the transferred CDQ or PSQ species 
by the amount transferred.
    (1) CDQ allocation. CDQ groups may request that NMFS transfer any 
or all of one group's CDQ allocation to another by each group filing an 
amendment to its CDP through the CDP substantial amendment process set 
forth at paragraph (g)(4) of this section. The CDQ allocation will be 
transferred as of January 1 of the calendar year following the calendar 
year NMFS approves the amendments of both groups and is effective for 
the duration of the CDPs.
    (2) CDQ. CDQ groups may request that NMFS transfer any or all of 
one group's CDQ for a calendar year to another by each group filing an 
appropriate amendment to its CDP. If the amount to be transferred is 10 
percent or less of a group's CDQ, that group's request may be made 
through the CDP technical amendment process set forth at paragraph 
(g)(5) of this section. If the amount to be transferred is greater than 
10 percent of a group's CDQ, that group's request must be made through 
the CDP substantial amendment process set forth at paragraph (g)(4) of 
this section. The CDQ will be transferred as of the date NMFS approves 
the amendments of both groups and is effective only for the remainder 
of the calendar year in which the transfer occurs.
    (3) PSQ allocation. CDQ groups may request that NMFS transfer any 
or all of one group's PSQ allocation to another CDQ group through the 
CDP substantial amendment process set forth at paragraph (g)(4) of this 
section. Each group's request must be part of a request for the 
transfer of a CDQ allocation and the requested amount of PSQ allocation 
must be the amount reasonably required for bycatch needs during the 
harvesting of the CDQ. Requests for the transfer of a PSQ allocation 
may be submitted to NMFS only from January 1 through January 31. The 
PSQ allocation will be transferred as of January 1 of the calendar year 
following the calendar year NMFS approves the amendments of both groups 
and is effective for the duration of the CDPs.
    (4) PSQ. CDQ groups may request that NMFS transfer any or all of 
one group's PSQ for a calendar year to another by each group filing an 
amendment to its CDP through the CDP substantial amendment process set 
forth at paragraph (g)(4) of this section. Each group's request must be 
part of a request for the transfer of a PSQ and the requested amount of 
PSQ must be the amount reasonably required for bycatch needs during the 
harvesting of the CDQ. Requests for the transfer of PSQ may be 
submitted to NMFS only from January 1 through January 31. The PSQ will 
be transferred as of the date NMFS approves the amendments of both 
groups and is effective only for the remainder of the calendar year in 
which the transfer occurs.
    (f) CDQ group responsibilities. A CDQ group must:
    (1) Direct and supervise all activities of the managing 
organization.
    (2) Maintain the capability to communicate with all vessels 
harvesting its CDQ and PSQ at all times.
    (3) Monitor the catch of each CDQ or PSQ.
    (4) Submit the CDQ check-in/check-out report and CDQ catch report 
described at Sec. 679.5 (m) and (n).
    (5) Ensure that no CDQ or halibut PSQ is exceeded.
    (6) Ensure that the CDQ group's CDQ harvesting vessels and CDQ 
processors will:
    (i) Provide observer coverage, equipment, and operational 
requirements for CDQ catch monitoring.
    (ii) Provide for the communication of observer data from their 
vessel to NMFS and the CDQ representative.
    (iii) Maintain contact with the CDQ group for which it is 
harvesting CDQ and PSQ.
    (iv) Cease fishing operations when requested by the CDQ group.
    (7) Comply with all requirements of this part.
    (g) Monitoring of CDPs--(1) Annual progress report--(i) The State 
must submit to NMFS, by October 30 of each year, an annual progress 
report for the previous calendar year for each CDP.
    (ii) Annual progress reports must be organized on a project-by-
project basis and include information for each CDQ project in the CDP 
describing how each scheduled milestone in the CDP has been met, and an 
estimation by the State of whether each of the CDQ projects in the CDP 
is likely to be successful.
    (iii) The annual report must include a description by the State of 
any problems or issues in the CDP that the State encountered during the 
annual report year.
    (2) Annual budget report. (i) Each CDQ group must submit to NMFS an 
annual budget report by December 15 preceding the year for which the 
annual budget applies.
    (ii) An annual budget report is a detailed estimate of the income 
from the

[[Page 43895]]

CDQ project and of the expenditures for each subsidiary, division, 
joint venture, partnership, investment activity, or CDQ project as 
described in paragraph (a)(1)(i) of this section for a calendar year. A 
CDQ group must identify the administrative costs for each CDQ project. 
The CDQ group's total administrative costs will be considered a 
separate CDQ project.
    (iii) An annual budget report is approved upon receipt by NMFS, 
unless disapproved by NMFS in writing by December 31. If disapproved, 
the annual budget report will be returned to the CDQ group for revision 
and resubmittal to NMFS.
    (3) Annual budget reconciliation report. A CDQ group must reconcile 
its annual budget by May 30 of the year following the year for which 
the annual budget applied. Reconciliation is an accounting of the 
annual budget's estimated income and expenditures with the actual 
income and expenditures, including the variance in dollars and variance 
in percentage for each CDQ project that is described in paragraph 
(a)(1)(i) of this section. If a general budget, as submitted in 
accordance with paragraph (a)(3)(iv) of this section, is no longer 
accurate due to the reconciliation of an annual budget, then the 
general budget must also be revised to reflect the annual budget 
reconciliation. The revised general budget must be included with the 
annual budget reconciliation report.
    (4) Substantial amendments. A CDP is a working business plan and 
must be kept up to date.
    (i) Substantial amendments to a CDP require written notification by 
the CDQ group to the State. The State must forward the amendment to 
NMFS with a recommendation as to whether it should be approved.
    (ii) NMFS will notify the State in writing of the approval or 
disapproval of the amendment within 30 days of receipt of the amendment 
and the State's recommendation. Except for substantial amendments for 
the transfer of CDQ and PSQ which are effective only for the remainder 
of the calendar year in which the transfer occurs (see paragraphs (e) 
(2) and (4) of this section), once a substantial amendment is approved 
by NMFS, the amendment will be effective for the duration of the CDP.
    (iii) If NMFS determines that the CDP, if changed, would no longer 
meet the requirements of this subpart, NMFS will notify the State in 
writing of the reasons why the amendment cannot be approved.
    (iv) For the purposes of this section, substantial amendments are 
defined as changes in a CDP, including, but not limited to:
    (A) Any change in the applicant communities or replacement of the 
managing organization.
    (B) A change in the CDP applicant's harvesting or processing 
partner.
    (C) Funding a CDP project in excess of $100,000 that is not part of 
an approved general budget.
    (D) More than a 20-percent increase in the annual budget of an 
approved CDP project.
    (E) More than a 20-percent increase in actual expenditures over the 
approved annual budget for administrative operations.
    (F) A change in the contractual agreement(s) between the CDP 
applicant and its harvesting or processing partner, or a change in a 
CDP project, if such change is deemed by the Governor or NMFS to be a 
material change.
    (G) Any transfer of a CDQ allocation, PSQ allocation, PSQ, or a 
transfer of more than ten percent of a CDQ.
    (v) Notification of an amendment to a CDP shall include the 
following information:
    (A) The background and justification for the amendment that 
explains why the proposed amendment is necessary and appropriate.
    (B) An explanation of why the proposed change to the CDP is a 
substantial amendment.
    (C) A description of the proposed amendment, explaining all changes 
to the CDP that result from the proposed amendment.
    (D) A comparison of the original CDP text with the text of the 
proposed changes to the CDP, and the revised pages of the CDP for 
replacement in the CDP binder. The revised pages must have the revision 
date noted with the page number on all affected pages. The table of 
contents may also need to be revised to reflect any changes in 
pagination.
    (E) Identification of any NMFS findings that would need to be 
modified if the amendment is approved along with the proposed modified 
text.
    (F) A description of how the proposed amendment meets the 
requirements of this subpart. Only those CDQ regulations that are 
affected by the proposed amendment need to be discussed.
    (5) Technical amendments. Any change to a CDP that is not a 
substantial amendment as defined in paragraph (g)(4)(iv) of this 
section is a technical amendment.
    (i) The CDQ group must notify the State in writing of any technical 
amendment. Such notification must include a copy of the pages of the 
CDP that would be revised by the amendment, with the text highlighted 
to show the proposed deletions and additions, and a copy of the CDP 
pages as they would be revised by the proposed amendment for insertion 
into the CDP binder. All revised CDP pages must include the revision 
date, amendment identification number, and CDP page number. The table 
of contents may also need to be revised to reflect any changes in 
pagination.
    (ii) The State must forward the technical amendment to NMFS with 
its recommendations for approval or disapproval of the amendment. A 
technical amendment is approved by NMFS and is effective when NMFS 
notifies the State in writing of the technical amendment's receipt.
    12. Section 679.31 is revised to read as follows:


Sec. 679.31  CDQ reserves.

    (a) Non-specific CDQ reserve. Annually, NMFS will apportion 15 
percent of each squid, arrowtooth flounder, and ``other species'' CDQ 
for each CDQ group to a non-specific CDQ reserve. A CDQ group's non-
specific CDQ reserve must be for the exclusive use of that CDQ group. A 
release from the non-specific CDQ reserve to its squid, arrowtooth 
flounder, or ``other species'' is a technical amendment as described in 
Sec. 679.30(g)(5). The technical amendment must be approved before 
harvests relying on CDQ transferred from the non-specific CDQ reserve 
may be conducted.
    (b) Pollock CDQ reserve (applicable through December 31, 1998). In 
the proposed and final harvest specifications required under 
Sec. 679.20(c), one-half of the pollock TAC placed in the reserve for 
each subarea or district of the BSAI will be apportioned to a CDQ 
reserve for each subarea or district.
    (c) Halibut CDQ reserve. (1) NMFS will annually withhold the 
proportions of the halibut catch limit that are specified in paragraph 
(c)(2) of this section for use as a CDQ reserve.
    (2) The proportions of the halibut catch limit annually withheld 
for purposes of the CDQ program, exclusive of issued QS, are as follows 
for each IPHC regulatory area:
    (i) Area 4B. In IPHC regulatory area 4B, 20 percent of the annual 
halibut quota shall be made available for the halibut CDQ program to 
eligible communities physically located in or proximate to this 
regulatory area. For the purposes of this section, ``proximate to'' an 
IPHC regulatory area means within 10 nm from the point where the

[[Page 43896]]

boundary of the IPHC regulatory area intersects land.
    (ii) Area 4C. In IPHC regulatory area 4C, 50 percent of the halibut 
quota shall be made available for the halibut CDQ program to eligible 
communities physically located in IPHC regulatory area 4C.
    (iii) Area 4D. In IPHC regulatory area 4D, 30 percent of the 
halibut quota shall be made available for the halibut CDQ program to 
eligible communities located in or proximate to IPHC regulatory areas 
4D and 4E.
    (iv) Area 4E. In IPHC regulatory area 4E, 100 percent of the 
halibut quota shall be made available for the halibut CDQ program to 
communities located in or proximate to IPHC regulatory area 4E. A 
fishing trip limit of 6,000 lb (2.7 mt) will apply to halibut CDQ 
harvesting in IPHC regulatory area 4E.
    (d) Sablefish CDQ reserves--(1) Fixed gear sablefish CDQ reserve. 
In the proposed and final harvest limit specifications required under 
Sec. 679.20(c), NMFS will specify 20 percent of the fixed gear 
allocation of sablefish in each subarea or district of the BSAI as a 
fixed-gear sablefish CDQ reserve, exclusive of issued QS.
    (2) Sablefish CDQ reserve. In the proposed and final harvest limit 
specifications required under Sec. 679.20(c), NMFS will specify 7.5 
percent of the trawl gear allocation of sablefish in each subarea or 
district of the BSAI as a sablefish CDQ reserve.
    (e) Groundfish CDQ reserve. In the proposed and final harvest 
specifications required under Sec. 679.20(c), one-half of the amount of 
each groundfish TAC that is placed in the reserve for each subarea or 
district of the BSAI will be apportioned to a separate CDQ reserve for 
each subarea or district. The groundfish CDQ reserve does not include 
sablefish. If the proposed and final harvest limit specifications 
required under Sec. 679.20(c) change the groundfish species comprising 
the ``other species'' category, then any CDQ allocations of ``other 
species'' category groundfish would change according to the changed 
species mix of the ``other species'' category.
    (f) Crab CDQ reserve. The following percentages of the king and 
Tanner crab in the Bering Sea and Aleutian Islands Area that has a 
guideline harvest level specified by the State that is available for 
commercial harvest will be apportioned to a crab CDQ reserve:
    (1) For calendar year 2000, and thereafter, 7.5 percent.
    (2) For calendar year 1999 (applicable through December 31, 1999), 
5 percent.
    (3) For calendar year 1998 (applicable through December 31, 1998), 
3.5 percent.
    (g) PSQ reserve. Seven and one-half percent of the PSC limits 
specified at Sec. 679.21(e) for red king crab in Zone 1, Tanner crab 
(C. bairdi) in Zone 1, Tanner crab in Zone 2, halibut, and Pacific 
herring will be apportioned to PSQ reserves. 3,600 chinook salmon and 
3,150 non-chinook salmon will be apportioned to PSQ reserves.
    13. Section 679.32 is revised to read as follows:


Sec. 679.32  Groundfish and halibut CDQ catch monitoring.

    (a) Applicability. (1) The CDQ representative, the operator or 
manager of a buying station, the operator of a vessel, and the manager 
of a shoreside processor fishing in the groundfish or halibut CDQ 
fisheries must comply with the requirements of this section.
    (2) Pollock, halibut, and fixed-gear sablefish CDQ fishing in 1998 
(applicable through December 31, 1998). Regulations governing the catch 
of pollock, halibut, fixed-gear sablefish CDQ in 1998 are at paragraphs 
(f) and (g) of this section. Vessels and processors harvesting only 
these CDQ species are not required to comply with paragraphs (b) 
through (e) of this section in 1998, unless specifically required to do 
so in paragraphs (f) and (g). The catch of pollock with any authorized 
gear and sablefish with fixed gear in the multispecies CDQ fisheries in 
1998 will not accrue to the CDQs for these species.
    (b) Prohibited species catch. Time and area closures required once 
the CDQ group has reached its salmon, herring, or crab PSQs are listed 
in Sec. 679.7(d) (7) through (11). The catch of salmon, crab, or 
herring PSQ by vessels using other than trawl gear and the catch of 
halibut PSQ by vessels using pot gear does not accrue to the PSQ for 
these species.
    (c) Gear restrictions. Fixed gear sablefish and halibut CDQ must be 
harvested with fixed gear only. Catch of sablefish with fixed gear may 
accrue to the fixed gear sablefish CDQ reserve or the sablefish CDQ 
reserve. Catch of sablefish with other than fixed gear will accrue to 
the sablefish CDQ reserve.
    (d) Requirements for vessels and processors. Vessels and processors 
participating in the CDQ fisheries must comply with the following 
requirements.
    (1) Catcher vessels without observers. (i) Catcher vessels less 
than 60 ft (18.3 m) LOA must retain all groundfish and halibut CDQ 
until it is delivered to a processor with a valid CDQ permit.
    (ii) Catcher vessels using trawl gear must discard halibut and crab 
PSQ at-sea. The weight of halibut PSQ and numbers of crab PSQ must be 
reported on the ADF&G fish ticket within 24 hours of the completion of 
the fishing trip.
    (iii) Catcher vessels using non-trawl gear must discard all halibut 
PSQ at sea and report the weight of halibut discarded on the ADF&G fish 
ticket within 24 hours of the completion of the fishing trip.
    (2) Catcher vessels with observers. Catcher vessels equal to or 
greater than 60 ft (18.3 m) LOA must comply with the following 
requirements in addition to complying with the minimum observer 
coverage requirements at Sec. 679.50(c)(4).
    (i) If using trawl gear must,
    (A) Retain all CDQ species, salmon PSQ, and herring PSQ until it is 
delivered to a processor with a valid CDQ permit.
    (B) Retain all halibut and crab PSQ in a bin or other location 
until it is counted and sampled by a CDQ observer.
    (C) Provide space on the deck of the vessel for the CDQ observer to 
sort and store catch samples and a place from which to hang the 
observer sampling scale.
    (ii) If using non-trawl gear, either
    (A) Retain all CDQ Species. Retain all CDQ species until they are 
delivered to a processor with a valid CDQ permit and have all of the 
halibut PSQ counted by the CDQ observer and sampled for average weight.
    (B) Discard Some CDQ Species At-Sea. May discard some CDQ species 
at sea if the following requirements are met.
    (1) Sampling station. The vessel owner provides an observer 
sampling station that complies with Sec. 679.28(d) so that the CDQ 
observer can accurately determine the average weight of discarded CDQ 
species.
    (2) CDQ permit. A valid CDQ permit is on board the vessel at all 
times while harvesting, processing, or transporting CDQ.
    (3) Species composition. Each set or pot is sampled for species 
composition by a CDQ observer.
    (4) Catch weight and numbers. The CDQ group specifies in the CDP 
that the CDQ and PSQ catch weight and numbers will be based on the CDQ 
observer's estimates rather than the processor's report of landed catch 
weight and numbers.
    (3) Shoreside processors and buying stations. All shoreside 
processors and buying stations taking CDQ deliveries in addition to 
complying with the minimum observer coverage requirements at 
Sec. 679.50(d)(4) must:

[[Page 43897]]

    (i) CDQ permit. Have a valid CDQ permit on site at the shoreside 
processor at all times.
    (ii) CDQ and PSQ by weight. Sort and weigh on a scale certified 
under Sec. 679.28(c), all groundfish and halibut CDQ or PSQ and any 
halibut and herring PSQ delivered to a shoreside processor or buying 
station by CDQ or PSQ species or species group.
    (iii) PSQ by number. The shoreside processor must count all salmon 
or crab PSQ.
    (iv) Prior notice of offloading schedule. The manager of each 
shoreside processor or buying station must notify the CDQ observer(s) 
of the offloading schedule of each CDQ groundfish delivery at least 1 
hour prior to offloading to provide the CDQ observer an opportunity to 
monitor the weighing of the entire delivery.
    (v) CDQ and PSQ sorting and weighing. All sorting and weighing of 
CDQ and PSQ must be monitored by a CDQ observer.
    (4) Catcher/processors and motherships. Catcher/processors and 
motherships in addition to complying with the minimum observer coverage 
requirements described at Sec. 679.50(c)(4) must:
    (i) CDQ permit. Have a valid CDQ permit on board the vessel at all 
times harvesting, processing, or transporting CDQ.
    (ii) Observer sampling station. Provide an observer sampling 
station as described at Sec. 679.28(d).
    (iii) Catcher/processors using trawl gear and motherships. Catcher/
processors using trawl gear and motherships must weigh all catch on a 
scale certified under Sec. 679.28(b) of this part. Catch from each haul 
must be weighed separately. Catch must not be sorted before it is 
weighed unless a CDQ provision for doing so is approved by NMFS for the 
vessel. Each CDQ haul must be sampled by a CDQ observer for species 
composition and the vessel operator must allow CDQ observers to use the 
certified scale to weigh partial haul samples.
    (iv) Catcher/processors using non-trawl gear. Each CDQ set or pot 
must be sampled by a CDQ observer for species composition and average 
weight.
    (e) Recordkeeping and reporting--(1) Check-in/check-out report. The 
CDQ representative must submit the CDQ check-in/check-out report and 
the CDQ catch report described at Sec. 679.5 (m) and (n).
    (2) Catch record. The operator or manager of a buying station, the 
operator of a vessel, and the manager of a shoreside processor must 
record all catch in the CDQ fisheries, including all groundfish species 
and prohibited species caught, taken, or harvested in each haul or set 
as required at Sec. 679.5.
    (3) Verification of CDQ and PSQ catch reports. CDQ groups may 
specify the sources of data listed below as the sources they will use 
to report CDQ catch by specifying ``NMFS standard sources of data'' in 
their CDP. In the case of a catcher vessel using non-trawl gear, the 
CDP must specify whether any CDQ species will be discarded at sea. CDQ 
species may be discarded at sea only if the requirements of paragraph 
(d)(2)(ii)(A) of this section are met. NMFS will use the following 
sources to verify the CDQ catch reports unless an alternative catch 
estimation procedure in the CDP is approved by NMFS under 
Sec. 679.30(a)(5)(ii).
    (i) Unobserved catcher vessels. The weight or numbers of all CDQ 
and PSQ species on ADF&G fish tickets if all CDQ species, salmon PSQ, 
and herring PSQ are retained on board the vessel, delivered to a 
processor with a valid CDQ permit, and sorted and weighed in compliance 
with paragraph (d)(3) of this section.
    (ii) Observed catcher vessels using trawl gear. The CDQ observer's 
estimate of halibut and crab PSQ and the weight or numbers of all 
groundfish CDQ, salmon PSQ, and herring PSQ on ADF&G fish tickets if 
all CDQ species, salmon PSQ, and herring PSQ are retained on board the 
vessel, delivered to a processor with a valid CDQ permit, and sorted 
and weighed in compliance with paragraph (d)(3) of this section.
    (iii) Observed catcher vessels using non-trawl gear. (A) The CDQ 
observer's estimates of the weight of halibut PSQ and the weight or 
numbers of CDQ species on ADF&G fish tickets if all CDQ species are 
retained on board the vessel, delivered to a processor with a valid CDQ 
permit, and sorted and weighed in compliance with paragraph (d)(3) of 
this section; or
    (B) The CDQ observer's estimate of the weight of all CDQ and PSQ 
species if any CDQ species are discarded at sea.
    (iv) Catcher/processors using trawl gear and motherships. The CDQ 
observer's estimate of the weight and numbers of CDQ and PSQ species as 
determined by applying the CDQ observer's species composition sampling 
data for each haul to the total weight of haul as determined by 
weighing all catch from each haul on a scale certified under 
Sec. 679.28(b).
    (v) Catcher/processors using non-trawl gear. The CDQ observer's 
estimates of the weight and numbers of CDQ and PSQ species as 
determined by sampling each set or pot to determine the number and 
average weight of each CDQ and PSQ species.
    (f) Pollock CDQ (applicable through December 31, 1998)--(1) 
Applicability. Vessels and processors harvesting pollock CDQ in 1998 
must comply with the requirements of this paragraph.
    (2) Catch of non-pollock. The catch of all non-pollock species for 
which a TAC or PSC limit is specified will accrue against the non-CDQ 
groundfish fishery TACs and PSC limits. Regulations governing maximum 
retainable bycatch amounts in the non-CDQ groundfish fisheries must be 
complied with while harvesting pollock CDQ.
    (3) Recordkeeping and reporting. (i) The CDQ representative must 
submit a CDQ catch report that complies with Sec. 679.5(n). Catch from 
the pollock CDQ fisheries must be identified separately from catch in 
other CDQ fisheries on the CDQ catch report. Harvest of species other 
than pollock in the pollock CDQ fisheries must not be reported on the 
CDQ catch report.
    (ii) The CDQ representative must submit a CDQ check-in/check-out 
report that complies with Sec. 679.5(m) and states that the vessel will 
be participating in the pollock CDQ fishery.
    (iii) The operator or manager of a buying station, the operator of 
a vessel, and the manager of a shoreside processor must record all 
catch in the CDQ fisheries, including all groundfish species and 
prohibited species caught, taken, or harvested in each haul or set as 
required at Sec. 679.5.
    (4) Observer coverage. Two observers are required on all catcher/
processors and motherships while harvesting, processing, or taking 
deliveries of pollock CDQ, one observer is required on all catcher 
vessels harvesting pollock CDQ, and one observer is required in the 
shoreside processing plant while pollock CDQ is being delivered, 
sorted, or processed.
    (5) Estimation of the weight of pollock CDQ--(i) Shoreside 
processors and buying stations. All pollock CDQ delivered to a 
shoreside processor or buying station must be weighed on a scale 
certified under Sec. 679.28(c). The manager of each shoreside processor 
or buying station must notify the observer(s) of the offloading 
schedule of each CDQ groundfish delivery at least 1 hour prior to 
offloading to provide the observer an opportunity to monitor the 
weighing of the entire delivery.
    (ii) Motherships and catcher/processors. Operators of mothership 
and catcher/processors must provide the holding bins and comply with 
the operational requirements at Sec. 679.28(e) in order for volumetric 
estimates of total catch weight to be made.

[[Page 43898]]

    (g) Sablefish and halibut CDQ fisheries (applicable through 
December 31, 1998)--(1) Applicability. Vessels and processors 
harvesting fixed gear sablefish or halibut CDQ in 1998 must comply with 
the requirements of this paragraph.
    (2) Catch of other groundfish. All groundfish for which a TAC is 
specified and all prohibited species caught during the sablefish and 
halibut CDQ fisheries will accrue to the non-CDQ groundfish TACs and 
PSC limits. Regulations governing maximum retainable bycatch amounts in 
the non-CDQ groundfish fisheries must be complied with while harvesting 
fixed-gear sablefish and halibut CDQ.
    (3) Permits. The managing organization responsible for carrying out 
an approved CDQ project must have a halibut and/or sablefish permit 
issued by the Regional Administrator. A copy of the halibut and/or 
sablefish CDQ permit must be carried on any fishing vessel operated by, 
or for, the managing organization and be made available for inspection 
by an authorized officer. Such halibut and/or sablefish CDQ permit is 
non-transferable and is effective for the duration of the CDQ project 
or until revoked, suspended, or modified.
    (4) CDQ cards. All individuals named on an approved CDP application 
must have a halibut and/or sablefish CDQ card issued by the Regional 
Administrator before landing any halibut and/or sablefish. Each halibut 
and/or sablefish CDQ card will identify a CDQ permit number and the 
individual authorized by the managing organization to land halibut and/
or sablefish for debit against its CDQ allocation.
    (5) Alteration. No person may alter, erase, or mutilate a halibut 
and/or sablefish CDQ permit, card, registered buyer permit, or any 
valid and current permit or document issued under this part. Any such 
permit, card, or document that has been intentionally altered, erased, 
or mutilated is invalid.
    (6) Landings. Halibut and/or sablefish harvested pursuant to a 
approved CDQ project may be landed only by a person with a valid 
halibut and/or sablefish CDQ card, and delivered only to a person with 
a valid registered buyer permit, and reported in compliance with 
Sec. 679.5(l)(1) and (l)(2).
    (7) Recordkeeping and reporting. Vessels and processors with 
Federal fisheries or processor permits under Sec. 679.4(f) must report 
all catch of groundfish, including sablefish CDQ, and prohibited 
species from the fixed gear sablefish and halibut CDQ fisheries on 
logbooks and weekly production reports required under Sec. 679.5. Catch 
from the fixed gear sablefish and halibut CDQ fisheries must not be 
reported on the CDQ catch report in 1998.
    14. Sections 679.33 and 679.34 are removed.
    15. In Sec. 679.40, existing paragraph (f) is removed and existing 
paragraph (g) is redesignated as a new paragraph (f).
    16. In Sec. 679.43, a new paragraph (p) is added to read as 
follows:


Sec. 679.43  Determinations and appeals.

* * * * *
    (p) Issuance of a non-transferable permit. A non-transferable 
permit will be issued to a person upon acceptance of his or her appeal 
of an initial administrative determination denying an application for a 
license for license limitation groundfish or crab species under 
Sec. 679.4(i). This non-transferable permit authorizes a person to 
conduct directed fishing for groundfish or directed fishing for crab 
species and will have specific endorsements and designations based on 
the person's claims in his or her application for a license. This non-
transferable permit expires upon the resolution of the appeal.
    17. In Sec. 679.50, the last sentence of paragraph (a) is revised 
and new paragraphs (c)(4), (d)(4), and (h)(1)(i) (D) and (E) are added 
as follows:


Sec. 679.50  Groundfish Observer Program applicable through December 
31, 1997.

    (a) * * * Observer coverage for the CDQ fisheries obtained in 
compliance with paragraphs (c)(4) and (d)(4) of this section may not be 
used to comply with observer coverage requirements for non-CDQ 
groundfish fisheries specified in paragraphs (c)(1)(v) and (c)(1)(vii) 
of this section.
* * * * *
    (c) Observer requirements for vessels. * * *
    (4) Groundfish and halibut CDQ fisheries. Vessels harvesting 
groundfish or halibut CDQ must comply with the following minimum 
observer coverage requirements each day that the vessel harvests, 
transports, processes, delivers, or takes deliveries of groundfish or 
halibut CDQ or PSQ. No CDQ observer may be required to be on duty more 
than 12 hours in a 24-hour period, to sample more than 9 hours in a 24-
hour period, or to sample more than 3 hauls in a 24-hour period on a 
vessel using trawl gear or a processor taking deliveries from vessels 
using trawl gear.
    (i) Mothership or catcher/processor. A mothership or catcher/
processor of any length must have at least two CDQ observers as 
described at paragraph (h)(1)(i) (D) and (E) of this section aboard the 
vessel, at least one of whom must be certified as a lead CDQ observer.
    (ii) Catcher vessel. A catcher vessel equal to or greater than 60 
ft (18.3 m) LOA, except a catcher vessel that delivers only unsorted 
codends to a processor or another vessel, must have at least one lead 
CDQ observer as described at paragraph (h)(1)(i)(E) of this section 
aboard the vessel.
    (d) * * *
    (4) Groundfish and halibut CDQ fisheries. Each shoreside processor 
required to have a federal processor permit under Sec. 679.4(f) and 
taking deliveries of groundfish or halibut CDQ must have at least one 
lead CDQ observer as described at paragraph (h)(1)(i)(E) of this 
section present at all times while CDQ is being received or processed.
* * * * *
    (h) * * *
    (1) * * *
    (i) * * *
    (D) For purposes of the groundfish and halibut CDQ fisheries a 
NMFS-certified CDQ observer must meet the following requirements.
    (1) Be a prior observer who has completed at least 60 days of 
observer data collection on a vessel using the same gear type as the 
CDQ vessel that they will be deployed on.
    (2) Receive the rating of 1 for ``exceptional'' or 2 for ``meets 
expectations'' by NMFS for their most recent deployment.
    (3) Successfully complete a NMFS-approved CDQ observer training 
and/or briefing as prescribed by NMFS and available from the Observer 
Program Office.
    (4) Comply with all of the other requirements of this section.
    (E) To be certified as a ``lead observer'' in the groundfish and 
halibut CDQ fisheries, a NMFS-certified observer must complete at least 
20 days of observer data collection on a vessel participating in a CDQ 
fishery in addition to meeting the requirements of paragraph 
(h)(1)(i)(D) of this section.
* * * * *
[FR Doc. 97-21169 Filed 8-14-97; 8:45 am]
BILLING CODE 3510-22-P