[Federal Register Volume 62, Number 218 (Wednesday, November 12, 1997)]
[Rules and Regulations]
[Pages 60667-60670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29707]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 970520118-7251-02; I.D. 050197A]
RIN 0648-AJ00


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

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

ACTION: Final rule.

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SUMMARY: NMFS issues a final rule that establishes standard allowances 
for ice

[[Page 60668]]

and slime found on unwashed Pacific halibut and sablefish landed in the 
Individual Fishing Quota (IFQ) fisheries for these species and 
incorporates them into the conversion factors for halibut and product 
recovery rates for sablefish used by NMFS to debit IFQ accounts. This 
action is necessary to correct inaccuracies in the current accounting 
process for landed IFQ product and is intended to support the goals and 
objectives of the IFQ program.

DATES: Effective December 12, 1997.

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

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

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

Rationale and Management Action for Establishing Standard Allowances 
for Ice and Slime

    Accurately accounting for the harvest of IFQ halibut and IFQ 
sablefish (IFQ species) is an important component of the IFQ program. 
Participants in the IFQ program are given specified allocations of IFQ 
species. Inaccurate accounting of the harvest of these allocations 
could cause either the underharvesting or overharvesting of IFQ 
species.
    A major source of inaccurate accounting currently occurs because 
the current regulations do not provide for the adjustment of landed 
weights of unwashed IFQ species by either NMFS or program participants 
(fishermen and purchasers). An adjustment is needed to allow 
participants landing fish or fish products with ice and slime to 
harvest their full IFQ species share. Participants have been making, 
without regulatory authorization, adjustments of up to 9 percent to 
account for ice and slime. To the extent that the amount of adjustment 
is too high, these participants harvest more than their IFQ species 
share, potentially leading to a total overharvest. Also anecdotal 
reports from industry indicate that some purchasers of IFQ species have 
used their practice of making high ice and slime allowance adjustments 
to the weights they report to NMFS as an inducement to fishermen to 
deliver their catch to them rather than to a competitor who makes no 
adjustment or at least attempts to make a fair adjustment. The larger 
the percentage allowance for ice and slime used, the smaller the amount 
of landed IFQ species is reported to NMFS and the smaller the deduction 
from an IFQ participant's account with the ultimate consequence being 
overharvest. This method of inducing a participant's business is unfair 
to other purchasers of IFQ species.
    In recognition that persons who land unwashed IFQ fish and products 
and who, in compliance with the regulations, report actual scale 
weights do not get to harvest their full IFQ shares while those who 
land washed fish and products do, and those who make unauthorized 
deductions harvest more than their share, NMFS proposed establishing a 
standard allowance of 2 percent for ice and slime on unwashed IFQ 
species (62 FR 32734, June 17, 1997). A 2-percent allowance for 
unwashed Pacific halibut is based on long-standing industry convention 
and has been accepted by the International Pacific Halibut Commission 
(IPHC), the international body entrusted with the primary 
responsibility for managing Pacific halibut. A 2-percent allowance for 
unwashed sablefish was proposed by the industry. NMFS specifically 
requested comments on this proposed standard. Only one comment was 
received. That comment is addressed in the comment section below.
    NMFS, by this rule, adopts a 2-percent allowance for ice and slime 
on unwashed halibut and sablefish. NMFS is implementing this allowance 
by incorporating it into the conversion factors and product recovery 
rates it uses to adjust reported weights to ``standardized'' weight 
measurements when debiting a participant's IFQ account. When applying 
conversion factors and product recovery rates, NMFS relies on product 
codes. The following new product codes are established and codified to 
accommodate the new conversion factors and product recovery rates for 
the ice and slime standard allowance: Product code 51--Whole fish/food 
fish with ice and slime (sablefish only); product code 54--Gutted only 
with ice and slime (Pacific halibut and sablefish); product code 55--
Headed and gutted with ice and slime (Pacific halibut only); product 
code 57--Headed and gutted, Western cut, with ice and slime (sablefish 
only); and Headed and gutted, Eastern cut, with ice and slime 
(sablefish only). IFQ program participants are to use these new product 
codes only for unwashed IFQ species. Existing product codes 01, 04, 05, 
07, and 08 are available for washed IFQ species (i.e., IFQ species 
without ice and slime).
    These changes do not affect the requirement that IFQ program 
participants accurately report the scale weight actually measured 
without any adjustments at the time of landing. NMFS will adjust these 
weights to compensate for ice and slime by using the appropriate 
conversion factor or product recovery rate based on the product code(s) 
reported. By NMFS adopting a standard allowance and by NMFS doing the 
adjustments instead of industry participants, the practice of some 
industry participants using large allowances to ``induce'' business 
will be eliminated and the playing field will be leveled for all. 
Recording any amount on the IFQ landing report that is different from 
the scale weight actually measured at time of landing is a violation of 
the regulations and is subject to penalty.

Other Changes Made by This Action

    The following changes are made to the regulatory text found at 50 
CFR part 679 to clarify ambiguities concerning IFQ program requirements 
and deducted amounts.

[[Page 60669]]

    First, the information required by Sec. 679.5(l)(1)(iv) to be 
reported by IFQ landing reports is clarified by changing the words 
``fish product weight of sablefish and halibut landed'' to ``the scale 
weight of the product at the time of landing.''
    Second, the requirement to ``sign any required fish ticket'' in 
Sec. 679.42(c)(3) is separated from the requirement to sign the IFQ 
landing report. Separating these requirements is intended to clarify 
that the IFQ landing report is the exclusive source of data NMFS will 
use to debit an IFQ account and to make all other IFQ calculations 
(e.g., adjustments under Sec. 679.40(c)).
    Third, the regulatory text in Sec. 679.42(c)(3) (i) and (ii) 
explaining exactly what amount must be reported to NMFS for debit 
against an IFQ account is removed. These requirements will now appear 
at Sec. 679.5(l)(1)(iv). Other provisions that were found in 
Sec. 679.42(c)(3) (i) and (ii) are moved to Sec. 679.42(c)(2), and new 
language is added to Sec. 679.42(c)(2) specifying that the IFQ landing 
report will be the exclusive source of data NMFS will use for debiting 
an IFQ account.

Response to Comments

    NMFS received one letter of comment was received on the proposed 
rule during the comment period. The following paragraphs summarize and 
respond to that comment.
    Comment 1: The commenter fully supports establishing a standard 
allowance for ice and slime on unwashed IFQ species; however, the 
commenter indicates that 4 percent, rather than 2 percent, is a more 
accurate percentage based on derived recovery rates on IFQ species 
purchased and prepared for marketing. Further, the commenter states 
that the derived recovery rates are also affected by the allowance for 
heads, which is fixed at 10 percent for Pacific halibut. For example, 
when the weights of the heads of IFQ species are a greater percentage 
of body weight than the current allowance for heads, which frequently 
occurs with smaller fish, recovering buying and processing costs, even 
with a 4 percent allowance for ice and slime, is difficult. The head 
weight/body weight ratio is also affected by where the head is severed 
from the body. Historically, the standard head cut used to be on the 
back side of the eye socket; currently the head cut must be through the 
middle of the eye socket, or even lower, to achieve an economically 
viable head weight/body weight ratio.
    Response: Historical information and the best available data 
support the determination that 2 percent is an appropriate standard 
allowance for ice and slime. Calculating an allowance for ice and slime 
by comparing recovery rates of purchased product to processed product 
is not statistically accurate because it does not account for other 
variables, such as the loss of body weight through loss of moisture 
content, different head cuts, etc. The only statistically accurate 
method of deriving a percentage for an allowance for ice and slime is 
to measure the product before and after washing. To ensure the accuracy 
of the percentage, the time period between the two weighings should be 
minimal and the product should not be affected by any other procedures, 
such as heading the product or chilling the product. Changing the ice 
and slime standard allowance to account for varying head weights is 
inappropriate. Furthermore, NMFS contacted the IPHC and confirmed that 
the standard head cut percentage allowance is based on a head cut 
through the second eye ball. Therefore, cutting the head behind the eye 
socket would change the head weight/body weight ratio. This change 
would reduce the processed product weight, thereby requiring an 
increase in some allowance to account for the loss. This could be the 
reason why the commenter prefers 4 percent, rather than 2 percent ice 
and slime allowance to achieve an economically viable derived rate. 
However, the two allowances should not be dependent on one another and, 
for the reasons stated above, a 2-percent standard allowance for ice 
and slime is appropriate.

Changes Made to the Final Rule

    Two changes were made to the final rule as compared with the 
proposed rule. First, the fifth clause of the first sentence of 
Sec. 679.5(l)(1)(iv) was removed because it was the same as the 
previous clause. Second, the words ``actually measured'' and ``actually 
measured and reported'' were removed from Sec. 679.5(l)(1)(iv) and 
Sec. 679.42(c)(2)(i) and (ii), respectively.
    These phrases did not add any additional clarification to the 
regulatory text.

Classification

    NMFS prepared an EA/RIR for this rule, and the Assistant 
Administrator for Fisheries concluded that there will be no significant 
impact on the quality of the human environment as a result of this 
rule. This action will not significantly alter the impacts analyzed in 
the Final Environmental Impact Statement (FEIS) for the IFQ program. A 
copy of the FEIS for the IFQ program or the EA/RIR for this action is 
available from NMFS (see ADDRESSES).
    This final rule has been determined to be not significant for 
purposes of E.O. 12866.
    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 rule would not have a 
significant economic impact on a substantial number of small entities. 
No comments were received regarding this certification. As a result, a 
regulatory flexibility analysis was not prepared.

List of Subjects in 50 CFR Part 679

    Fisheries, Recordkeeping and reporting requirements.

    Dated: November 4, 1997.
David L. Evans,
Deputy Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

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

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

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

    Authority: 16 U.S.C. 773 et seq., 1801 et seq., and 3631 et seq.

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


Sec. 679.5  Recordkeeping and reporting.

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


Sec. 679.42  Limitations on use of QS and IFQ.

* * * * *
    (c) Requirements and deductions. (1) Any individual who harvests 
halibut or sablefish with fixed gear must:
    (i) Have a valid IFQ card.
    (ii) Be aboard the vessel at all times during the fishing 
operation.
    (iii) Sign any required fish ticket.
    (iv) Sign the IFQ landing report required by Sec. 679.5(l)(1)(iv).
    (2) The scale weight of the halibut or sablefish product actually 
measured at

[[Page 60670]]

the time of landing, required by Sec. 679.5(l)(1)(iv) to be included in 
the IFQ landing report, shall be the only source of information used by 
NMFS to debit an IFQ account. An IFQ account will be debited as 
follows:
    (i) For sablefish product, dividing the scale weight at the time of 
landing by the product recovery rate found in Table 3 of this part that 
corresponds to the product code reported in the IFQ landing report; or
    (ii) For halibut product, multiplying the scale weight at the time 
of landing by the conversion factor listed in paragraph (c)(2)(iii) of 
this section that corresponds to the product code reported in the IFQ 
landing report.
    (iii) Halibut conversion factors.

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      Fish product code            Description                                                                  
---------------------------------------------------                                                             
                                                                                                                
                                                                                                                
*                  *                  *                  *                  *                  *                
                                                        *                                                       
5...........................  Headed and gutted.                                                                
                               Pacific halibut                                                                  
                               only..                                                                           
                                                                                                                
*                  *                  *                  *                  *                  *                
                                                        *                                                       
51..........................  Whole fish/food fish                                                              
                               with ice and slime.                                                              
                               Sablefish only..                                                                 
54..........................  Gutted only with ice                                                              
                               and slime. Belly                                                                 
                               slit and viscera                                                                 
                               removed. Pacific                                                                 
                               halibut and                                                                      
                               sablefish only..                                                                 
55..........................  Headed and gutted                                                                 
                               with ice and slime.                                                              
                               Pacific halibut                                                                  
                               only..                                                                           
57..........................  Headed and gutted,                                                                
                               Western cut, with                                                                
                               ice and slime.                                                                   
                               Sablefish only..                                                                 
58..........................  Headed and gutted,                                                                
                               Eastern cut, with                                                                
                               ice and slime.                                                                   
                               Sablefish only..                                                                 
                                                                                                                
*                  *                  *                  *                  *                  *                
                                                        *                                                       
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    5. In 50 CFR part 679, Table 3 is amended by adding new product 
code columns with the following descriptions and product code numbers 
between Column 37 (Butterfly Backbone Removed) and Column 96 
(Decomposed Fish) and adding the following product recovery rate values 
for the listed FMP species ``SABLEFISH'' in new columns 51, 54, 57, and 
58:

                Table 3 To Part 679.--Product Recovery Rates For Groundfish Species Product Code                
----------------------------------------------------------------------------------------------------------------
                                                           Whole fish/                                          
                                                            food fish    Gutted with   H&G western   H&G eastern
                FMP species                 Species code  with ice and     ice and    cut with ice  cut with ice
                                                              slime         slime       and slime     and slime 
----------------------------------------------------------------------------------------------------------------
                                            ............           51            54            57            58 
                                                                                                                
*                  *                  *                  *                  *                  *                
                                                        *                                                       
Sablefish.................................          710          1.02          0.91          0.70          0.65 
                                                                                                                
*                  *                  *                  *                  *                  *                
                                                        *                                                       
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[FR Doc. 97-29707 Filed 11-10-97; 8:45 am]
BILLING CODE 3510-22-P