[Federal Register Volume 63, Number 7 (Monday, January 12, 1998)]
[Proposed Rules]
[Pages 1813-1819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-702]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 971128281-7281-01; I.D. 102197D]
RIN 0648-AG27


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Snapper-Grouper Fishery off the Southern Atlantic States; Amendment 8

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 this proposed rule to implement Amendment 8 to the 
Fishery Management Plan for the Snapper-Grouper Fishery of the South 
Atlantic Region (FMP). This proposed rule would limit access to the 
commercial snapper-grouper fishery; allow the retention of snapper-
grouper in excess of the bag limits on a permitted vessel that has a 
single bait net or cast nets on board; and, subject to specific 
conditions, exempt snapper-grouper lawfully harvested in Bahamian 
waters from the requirement that they be maintained on board a vessel 
in the exclusive economic zone (EEZ) of the South Atlantic with head 
and fins intact. In addition, Amendment 8 would redefine ``optimum 
yield,'' ``overfished,'' and ``overfishing'' for snapper-grouper and 
establish a ``threshold level'' for snapper-grouper, i.e., the level of 
spawning potential ratio at which the South Atlantic Fishery Management 
Council (Council) will take appropriate action including, but not 
limited to, eliminating directed fishing mortality and evaluating 
measures to eliminate any bycatch mortality. The intended effects of 
this rule are to conserve and manage the snapper-grouper resources off 
the southern Atlantic states.

DATES: Written comments must be received on or before February 26, 
1998.

ADDRESSES: Comments on the proposed rule or on the initial regulatory 
flexibility analysis (IRFA) must be sent to the Southeast Regional 
Office, NMFS, 9721 Executive Center Drive N., St. Petersburg, FL 33702.
    Comments regarding the collection-of-information requirements 
contained in this rule should be sent to Edward E. Burgess, Southeast 
Regional Office, NMFS, 9721 Executive Center Drive N.,

[[Page 1814]]

St. Petersburg, FL 33702, and to the Office of Information and 
Regulatory Affairs, Office of Management and Budget (OMB), Washington, 
DC 20503 (Attention: NOAA Desk Officer).
    Requests for copies of Amendment 8, which includes a final 
supplemental environmental impact statement, a regulatory impact 
review, an IRFA, and a social impact assessment, should be sent to the 
South Atlantic Fishery Management Council, One Southpark Circle, Suite 
306, Charleston, SC 29407-4699; phone: 803-571-4366; fax: 803-769-4520.

FOR FURTHER INFORMATION CONTACT: Peter Eldridge, 813-570-5305.

SUPPLEMENTARY INFORMATION: The snapper-grouper fishery off the southern 
Atlantic states is managed under the FMP. The FMP was prepared by the 
Council and is implemented under the authority of the Magnuson-Stevens 
Fishery Conservation and Management Act (Magnuson-Stevens Act) by 
regulations at 50 CFR part 622.

Limited Access

    The purposes of the proposed limited access program for the 
commercial snapper-grouper fishery are to promote stability in the 
fishery, facilitate long-term planning for the prosecution and 
management of the fishery, promote orderly utilization of the resource, 
decrease the incentive for overcapitalization, prevent continual 
dissipation of returns from fishing caused by open access to the 
fishery, prevent increases in fishing effort and habitat damage that 
would result from open access to the fishery, and provide a more 
flexible management system. To achieve these objectives, the Council 
proposes to limit participation in the commercial fishery to owners who 
had vessels with commercial vessel permits for snapper-grouper at any 
time from February 11, 1996, through February 11, 1997, and had at 
least one landing of snapper-grouper from January 1, 1993, through 
August 20, 1996.
    Specifically, an owner of a vessel that had landings of snapper-
grouper from the South Atlantic of at least 1,000 lb (453.6 kg), whole 
weight, during any one of the years 1993, 1994, or 1995, or in 1996 
through August 20, would receive a transferable commercial permit. An 
owner of a vessel that did not have landings of at least 1,000 lb 
during any one of these years but had at least one landing of snapper-
grouper from the South Atlantic from January 1, 1993, through August 
20, 1996, would receive a trip-limited commercial permit. A vessel with 
a trip-limited permit would be limited on any trip to 225 lb (102.1 kg) 
of snapper-grouper.
    The Council chose these limited access measures to minimize 
exclusion of present participants from the fishery. These measures 
would not result in reduced fishing mortality in the short term, but 
would minimize the possibility of increasing fishing pressure in the 
long term.

Historical Landings

    Eligibility for limited access permits based on landings of 
snapper-grouper from the South Atlantic would be determined from 
fishing vessel logbooks received by NMFS on or before August 20, 1996. 
The Council chose August 20, 1996, because that was the date when the 
Council decided to base eligibility on such landings. The Council was 
concerned that allowing consideration of landings from logbooks 
received after that date would provide an incentive for vessel owners 
to submit fraudulent logbooks that showed landings meeting the 
criteria. State trip ticket data may be considered in support of 
landings claims provided that such information was received by the 
state on or before September 20, 1996. Only landings that were recorded 
during the period when the vessel had a valid Federal permit and only 
landings that were harvested, landed, and sold in compliance with all 
state and Federal regulations would be used to determine eligibility 
for commercial snapper-grouper limited access permits.
    If a vessel with documented landings of snapper-grouper during the 
qualifying period changed ownership, the owner at the time of the 
landings would retain credit for such landings for the purpose of 
determining eligibility for a limited access permit, unless the sale of 
the vessel included a written agreement that credit for such landings 
transfers to the new owner. If a snapper-grouper catch history is 
transferred under such an agreement, the entire snapper-grouper 
landings history would be transferred--partial transfers would not be 
recognized.

Permit Application/Issuance/Reconsideration

    Proposed Sec. 622.18(d) would set forth the procedures for permit 
application, issuance, and reconsideration. Applications for permits 
would have to be made within 90 days after publication of the final 
rule. Permits would be initially issued to qualifying vessel owners. 
Effective 150 days after publication of the final rule, the only 
commercial vessel permits that would be valid for the commercial 
snapper-grouper fishery would be those issued under Amendment 8's 
limited access criteria.
    An Application Oversight Board (Board) would be established to 
assist the Regional Administrator, Southeast Region, NMFS (Regional 
Administrator), in resolving disputes over eligibility for limited 
access permits. The Board would be made up of the state directors (or 
their designees) from each state in the Council's area of jurisdiction. 
If an applicant requests the Regional Administrator to reconsider a 
determination of initial permit eligibility, the Regional Administrator 
will forward the application and related materials to the Board for its 
consideration. The Board would consider whether the eligibility 
criteria for a limited access permit were applied to an applicant in a 
proper manner. The Board could not consider ``hardship'' applications 
in which vessel owners seek issuance of a permit based on personal, 
economic, social, or other considerations, other than the eligibility 
criteria. Each member would provide his/her individual recommendation 
on each application for reconsideration to the Regional Administrator 
for final administrative decision.

Transfer of Permits

    Upon request, NMFS may transfer a transferable permit on a one-for-
one basis to a replacement vessel, including a new vessel, or upon a 
change of ownership of a permitted vessel to an immediate family 
member. In other words, one commercial snapper-grouper permit issued 
according to the limited access criteria may be surrendered to the 
Regional Administrator in exchange for one limited access permit issued 
to the same owner or an immediate family member of the owner. In 
addition, if an individual has a written contract entered into and 
dated not later than August 20, 1996, that provides for a permit 
transfer with the purchase of a vessel that qualifies for a 
transferable permit, NMFS will transfer the permit to that individual 
on a one-for-one basis. In this case, the entire catch history of a 
vessel being purchased would be transferred--partial transfers of the 
catch history would not be recognized. An individual intending to 
qualify under the written contract provision would be required to 
provide a copy of the contract to the Regional Administrator not later 
than 150 days after the final rule is published.
    NMFS will transfer a transferable permit under circumstances other 
than those described above if a vessel owner surrenders two existing 
snapper-grouper transferable permits to the Regional Administrator in 
exchange for one new

[[Page 1815]]

permit. The entire catch histories of the vessels whose permits are 
exchanged for the one new permit would be transferred to the owner of 
the vessel receiving the new permit.
    The Council intends that the two-for-one permit transfer 
requirement would apply until the optimum number of vessels in the 
fishery is reached. Amendment 8 states the Council's intent to amend 
the FMP to eliminate the two-for-one permit transfer requirement once 
data become available to determine this optimum number and that number 
is reached.
    By application from an owner of a vessel with a trip-limited 
permit, the Regional Administrator may transfer the permit to a 
replacement vessel, provided the replacement vessel is equal to or less 
than the size (length and gross tonnage) of the replaced vessel. A 
replacement vessel could be a new vessel or a vessel replacing a lost 
or damaged vessel.
    As is the case for all commercial vessel permits issued by the 
Regional Administrator, a snapper-grouper limited access permit would 
be valid only for the vessel and owner named on the permit. 
Accordingly, a person desiring a change in either the vessel or the 
owner of a limited access permit would have to submit an application 
for transfer to the Regional Administrator. NMFS would charge an 
administrative fee to cover the cost of processing such application for 
transfer.

Permit Renewal

    NMFS will not reissue a limited access permit if the permit is 
revoked or if an application for renewal is not received by the 
Regional Administrator within 60 days of the permit's expiration date. 
The current earned income or gross sales requirement for a commercial 
vessel permit for snapper-grouper would not apply for issuance of a 
limited access permit.

Use of Nets for Bait

    Amendment 8 proposes to allow the use of cast and bait nets on 
board permitted vessels. The possession of bait nets would be limited 
to one per vessel. The bait net could be up to 50 ft (15.2 m) long by 
10 ft (3.1 m) high with a stretched mesh size of not more than 1.5 
inches (3.8 cm). Currently, the possession of nets on board severely 
limits the authorized possession of snapper-grouper. This proposal 
would allow fishermen on permitted vessels to use nets to catch bait 
while fishing for South Atlantic snapper-grouper on the same trip.

Snapper-grouper From Bahamian Waters

    Amendment 8 proposes to exempt snapper-grouper caught in Bahamian 
waters in accordance with Bahamian law from the requirement that they 
be maintained with head and fins intact on board a vessel in the South 
Atlantic EEZ. This exemption would apply provided the vessel is in 
transit from the Bahamas and valid Bahamian fishing and cruising 
permits are on board. Vessels in transit from the Bahamas would not be 
allowed to fish in the South Atlantic EEZ. This proposal would allow 
fishermen legally fishing in Bahamian waters to return to ports in the 
southern Atlantic states with filleted fish or fish that otherwise do 
not have head and fins intact.

Optimum Yield, Overfished, Overfishing, and Threshold Level

    Amendment 8 proposes to define optimum yield (OY) for snapper-
grouper species as the yield from a stock with a 40-percent spawning 
potential ratio (SPR). The present definition of OY is any harvest 
level for a species which maintains, or is expected to maintain, over 
time, a survival rate of biomass into the stock of spawning age fish 
that will achieve at least a level of 30-percent spawning stock biomass 
per recruit (SSBR) relative to the SSBR that would occur with no 
fishing. The proposed definition of OY is more conservative than the 
current OY (i.e., it would provide more biological protection to the 
resource). The Council is changing from SSBR to SPR as a basis for 
specifying OY because SPR is technically a more correct reference to 
the spawning population and is used in the most recent stock 
assessment. SPR represents the number of spawning females of a species 
when it is being fished divided by the number of spawning females of 
the species when it is not being fished (i.e., when only natural 
mortality occurs).
    Amendment 8 would define a snapper-grouper species as being 
overfished when the SPR is below 20 percent. Presently, a snapper-
grouper species is considered overfished when the spawning stock is 
below the level of 30 percent of that which would occur in the absence 
of fishing (i.e., when the SPR is below 30 percent). Also, Amendment 8 
would define overfishing for a stock that is not overfished as a 
fishing mortality rate that exceeds the fishing mortality rate that 
would produce an SPR of 20 percent.
    The proposed changes to the definitions of overfishing and 
overfished stocks may not be in compliance with national standards 1 
(prevent overfishing) and 2 (use the best scientific information 
available) of the Magnuson-Stevens Act. The Magnuson-Stevens Act 
requires the specification of a time period for ending overfishing and 
rebuilding the fishery that is as short as possible and does not exceed 
ten years, unless limited exceptions apply. The Magnuson-Stevens Act 
defines overfishing as the rate of fishing that jeopardizes the 
capacity of a fishery to produce MSY on a continuing basis. Although 
information defining the stock size that would produce MSY for snapper-
grouper species is not yet available, the best scientific information 
available indicates that an acceptable substitute for the MSY fishing 
mortality rate is a fishing mortality rate that results in an SPR of 
30-40 percent. It appears that changing the definitions of overfishing 
and overfished stocks from 30-percent SPR to 20-percent SPR would allow 
a fishing mortality rate that is too high to produce MSY. Therefore, 
the new definitions may not prevent overfishing or enable overfished 
stocks to be rebuilt to target levels.
    This amendment would also establish a ``threshold level'' criterion 
of 10-percent SPR that would trigger management action by the Council. 
If the SPR falls below the 10-percent threshold level, the Council 
would take appropriate action to prevent further population decline, 
including but not limited to, eliminating fishing mortality due to 
directed fishing and evaluating measures to eliminate any bycatch 
mortality. The NMFS proposed National Standard Guidelines for the 
Magnuson-Stevens Act (62 FR 41907, August 4, 1997) state that the 
minimum stock size threshold should be set at the greater of either 
one-half the MSY stock size or the minimum stock size at which 
rebuilding to the MSY level would be expected to occur within 10 years 
if the stock were exploited at the specified maximum fishing mortality 
threshold. Given that the best scientific information available 
indicates a target SPR for species in the snapper-grouper management 
unit between 30 and 40 percent, the 10-percent threshold level appears 
to be too low to prevent overfishing and rebuild stocks within the 
appropriate time frame. As a result, it may not comply with national 
standards 1 and 2.
    According to Amendment 8, when there is insufficient information 
available to determine if a species is overfished, overfishing would be 
defined as a fishing mortality rate in excess of the fishing mortality 
rate corresponding to a default SPR of 30 percent. If overfishing is 
occurring, a program to reduce fishing mortality

[[Page 1816]]

rates to at least the level corresponding to management target levels 
would be implemented.
    The time frame in the FMP for recovery of overfished stocks would 
remain unchanged. For shorter lived, faster growing species (e.g., 
snapper, excluding red snapper; greater amberjack; black sea bass; and 
red porgy), the time frame is not to exceed 10 years. For longer lived, 
slower growing species (e.g., red snapper and groupers), the time frame 
is not to exceed 15 years.

Availability of Amendment 8

    Additional background and rationale for the measures discussed 
above are contained in Amendment 8, the availability of which was 
announced in the Federal Register (62 FR 58703, October 30, 1997). 
Written comments on Amendment 8 must have been received by December 29, 
1997. All comments received on Amendment 8 or on this proposed rule 
during their respective comment periods will be addressed in the final 
rule.

Changes Proposed by NMFS

    For clarity, NMFS proposes to add to Sec. 622.39(a) a reference to 
the bag and other limits of South Atlantic snapper-grouper that apply 
to persons aboard permitted vessels that have on board longlines in the 
longline closed areas.
    For standardization and enforceability, NMFS proposes to specify at 
Sec. 622.44 that all weights applicable to commercial trip limits are 
round or eviscerated weights. Currently, trip limits are monitored by 
the landed weight, whether whole, eviscerated, or mixed. Under this 
procedure, a person monitoring a trip does not have to sort fish 
between whole and eviscerated, weigh each group, and apply conversion 
factors to the eviscerated fish to determine equivalent whole weights. 
Accordingly, this standardization of the regulatory language does not 
constitute a change in practices in the fisheries.

Classification

    At this time, NMFS has not determined that Amendment 8 is 
consistent with the national standards of the Magnuson-Stevens Act and 
other applicable laws. NMFS, in making that determination, will take 
into account the data, views, and comments received during the comment 
period on Amendment 8.
    This proposed rule has been determined to be not significant for 
purposes of E.O. 12866.
    The Council prepared an IRFA that describes the impact this 
proposed rule, if adopted, would have on small entities. Based on the 
IRFA, NMFS agrees with the Council's conclusion that Amendment 8, if 
approved and implemented through final regulations, would have a 
significant economic impact on a substantial number of small entities. 
A summary of the IRFA's assessment of the significant impacts on small 
entities follows.
    Amendment 8 would affect most of the roughly 2,500 commercial 
vessels that currently hold valid commercial snapper-grouper permits, 
because the vast majority of such vessels operate in the EEZ for at 
least part of the year. All of the vessels that would be affected by 
Amendment 8 are considered small business entities for the purposes of 
the Regulatory Flexibility Act, because their individual annual gross 
revenues are less than $3 million. The vessels that would be affected 
by Amendment 8 generate annual gross revenues ranging from $53,000 
(vessels that use vertical fishing lines) to about $237,000 (vessels 
that use longlines). The exvessel value of catches from these vessels 
in 1995 was approximately $15.5 million.
    The Council estimates that the limited entry action may reduce 
annual gross revenue of commercial fishermen by approximately $1.0 
million (6.5 percent of current revenue) during the first year under 
that action. This estimate may be high, because some of the 513 vessels 
listed as having landed snapper-grouper species that would not qualify 
under the limited entry program may no longer be participating in the 
fishery. Also, other vessels may be eligible for a trip-limited permit 
that would allow them to harvest fish with a 225-lb (102.1-kg) trip 
limit. Thus, the actual reduction in gross revenue could be less than 
the estimated $1.0 million.
    Allowing the use of cast and bait nets for capturing bait would 
reduce costs for fishermen and could enhance fishing success, because 
live bait is more effective than frozen bait. Also, this measure 
clarifies the use of gear and should enhance enforcement of gear 
regulations.
    Allowing the transit of Bahamian caught fish through the South 
Atlantic EEZ would increase demand for for-hire trips to the Bahamas 
and, as a result, increase revenue to the for-hire fishery. Also, 
allowing fishermen to fillet their Bahamian catch would reduce storage 
costs and enhance quality of fish during transit. This should result in 
increased satisfaction for anglers who generally prize fresh fish for 
consumption.
    The Council considered the status quo as an alternative to each 
proposed action. For the limited entry system, the Council also 
considered a number of alternatives that would have established 
different dates and/or pounds of snapper-grouper as criteria to 
determine initial eligibility. One alternative for the limited entry 
system also contained other options regarding the composition of the 
Application Oversight Board, permit transfers, and permit renewals. 
Relative to the proposed actions, the Council concluded that all of the 
alternatives would result in reduced net benefits from the fishery in 
the long term. Some of the alternatives would minimize economic impacts 
on small entities in the short term, but would not achieve the 
Council's goal of managing species in the management unit at the 
optimum yield level. Thus, these alternatives would not meet the stated 
objectives of the FMP.
    A copy of the IRFA is available for comment (see ADDRESSES).
    Notwithstanding any other provision of law, no person is required 
to respond to nor shall a person be subject to a penalty for failure to 
comply with a collection of information subject to the requirements of 
the Paperwork Reduction Act (PRA) unless that collection of information 
displays a currently valid OMB Control Number.
    This rule contains three, new, one-time collection-of-information 
requirements subject to the PRA--namely, the submission of applications 
for limited access commercial permits for snapper-grouper, 
reconsideration of determinations that applicants are not eligible for 
initial limited access commercial permits, and submission of contracts 
that provide for transfers of rights to limited access commercial 
permits. These requirements have been submitted to OMB for approval. 
The public reporting burdens for these collections of information are 
estimated at 20, 45, and 15 minutes per response, respectively, 
including the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and completing and 
reviewing the collections of information.
    Public comment is sought regarding: Whether these proposed 
collections of information are necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; the accuracy of the burden estimates; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways to minimize the burden of the collections of 
information, including through the use of automated collection 
techniques or other forms of information technology. Send comments on 
these, or any other aspects of the collections of information, to NMFS 
and OMB (see ADDRESSES).

[[Page 1817]]

List of Subjects in 50 CFR Part 622

    Fisheries, Fishing, Puerto Rico, Reporting and recordkeeping 
requirements, Virgin Islands.

    Dated: January 5, 1998.
Rolland A. Schmitten,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
    For the reasons set out in the preamble, 50 CFR part 622 is 
proposed to be amended as follows:

PART 622--FISHERIES OF THE CARIBBEAN, GULF, AND SOUTH ATLANTIC

    1. The authority citation for part 622 continues to read as 
follows:

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

    2. In Sec. 622.4, paragraph (a)(2)(vi) and the first sentence of 
paragraph (g) are revised to read as follows:


Sec. 622.4  Permits and fees.

    (a) * * *
    (2) * * *
    (vi) South Atlantic snapper-grouper. For a person aboard a vessel 
to be eligible for exemption from the bag limits for South Atlantic 
snapper-grouper in or from the South Atlantic EEZ, to engage in the 
directed fishery for tilefish in the South Atlantic EEZ, to use a 
longline to fish for South Atlantic snapper-grouper in the South 
Atlantic EEZ, or to use a sea bass pot in the South Atlantic EEZ north 
of 28 deg.35.1' N. lat. (due east of the NASA Vehicle Assembly 
Building, Cape Canaveral, FL), either a transferable commercial permit 
for South Atlantic snapper-grouper or a trip-limited commercial permit 
for South Atlantic snapper-grouper must have been issued to the vessel 
and must be on board. A vessel with longline gear and more than 200 lb 
(90.7 kg) of tilefish aboard is considered to be in the directed 
fishery for tilefish. It is a rebuttable presumption that a fishing 
vessel with more than 200 lb of tilefish aboard harvested such tilefish 
in the EEZ. A vessel with a trip-limited commercial permit is limited 
on any trip to 225 lb (102.1 kg) of snapper-grouper. (See Sec. 622.18 
for information on limited access transferable and trip-limited 
commercial permits for the South Atlantic snapper-grouper fishery.)
* * * * *
    (g) * * * A vessel permit or endorsement or dealer permit issued 
under this section is not transferable or assignable, except as 
provided in paragraph (m) of this section for a commercial vessel 
permit for Gulf reef fish, in paragraph (n) of this section for a fish 
trap endorsement, in paragraph (p) of this section for a red snapper 
endorsement, or in Sec. 622.18(e) for a commercial vessel permit for 
South Atlantic snapper-grouper. * * *
* * * * *
    3. In Sec. 622.7, paragraph (b) is revised to read as follows:


Sec. 622.7  Prohibitions.

* * * * *
    (b) Falsify information on an application for a permit or 
endorsement or submitted in support of such application, as specified 
in Sec. 622.4(b) or (g) or Secs. 622.17 or 622.18.
* * * * *
    4. Section 622.18 is added to subpart B to read as follows:


Sec. 622.18  South Atlantic snapper-grouper limited access.

    (a) Applicability. Effective 150 days after the date of publication 
of the final rule, the only valid permits for South Atlantic snapper-
grouper are those that have been issued under the limited access 
criteria in this section. A vessel may have either a transferable 
commercial permit or a trip-limited commercial permit for South 
Atlantic snapper-grouper.
    (b) Initial eligibility. A vessel is eligible for an initial 
limited access commercial permit for South Atlantic snapper-grouper if 
the owner had a vessel with a commercial vessel permit for South 
Atlantic snapper-grouper at any time from February 11, 1996, through 
February 11, 1997, and had at least one landing of snapper-grouper from 
the South Atlantic from permitted vessels from January 1, 1993, through 
August 20, 1996, as reported on fishing vessel logbooks received by the 
SRD on or before August 20, 1996. An owner whose permitted vessels had 
landings of snapper-grouper from the South Atlantic of at least 1,000 
lb (453.6 kg), whole weight, from permitted vessels in any one of the 
years 1993, 1994, or 1995, or in 1996 through August 20, as reported on 
fishing vessel logbooks received by the SRD on or before August 20, 
1996, is eligible for an initial transferable permit. All other 
qualifying owners are eligible for an initial trip-limited permit.
    (c) Determinations of eligibility--(1) Permit history. The sole 
basis for determining whether a vessel had a commercial vessel permit 
for South Atlantic snapper-grouper at any time from February 11, 1996, 
through February 11, 1997, is NMFS' permit records. An owner of a 
currently permitted vessel who believes he/she meets the February 11, 
1996, through February 11, 1997, permit history criterion based on 
ownership of a vessel under a different name, as may have occurred when 
ownership has changed from individual to corporate or vice versa, must 
document his/her continuity of ownership. No more than one owner of a 
currently permitted vessel will be credited with meeting the permit 
history criterion based on a vessel's permit history.
    (2) Landings. (i) Landings of snapper-grouper from the South 
Atlantic during the qualifying period are determined from fishing 
vessel logbooks received by the SRD on or before August 20, 1996. State 
trip ticket data may be considered in support of claimed landings 
provided such trip ticket data were received by the state on or before 
September 20, 1996.
    (ii) Only landings when a vessel had a valid commercial permit for 
snapper-grouper and only landings that were harvested, landed, and sold 
in compliance with state and Federal regulations may be used to 
establish eligibility.
    (iii) For the purpose of eligibility for a limited access 
commercial permit for snapper-grouper, the owner of a vessel that had a 
commercial snapper-grouper permit during the qualifying period retains 
the snapper-grouper landings record of that vessel during the time of 
his/her ownership unless a sale of the vessel included a written 
agreement that credit for such landings was transferred to the new 
owner. Such transfer of credit must be for the vessel's entire record 
of landings of snapper-grouper from the South Atlantic.
    (d) Implementation procedures--(1) Notification of status. On or 
about 10 days after the date the final rule is published, the RD will 
notify each owner of a vessel that had a commercial permit for South 
Atlantic snapper-grouper at any time from February 11, 1996, through 
February 11, 1997, and each owner of a vessel that has a commercial 
permit for South Atlantic snapper-grouper on the date the final rule is 
published, of NMFS' initial determination of eligibility for either a 
transferable or trip-limited limited access commercial permit for South 
Atlantic snapper-grouper. Each notification will include an application 
for such permit. Addresses for such notifications will be based on 
NMFS' permit records. A vessel owner who believes he/she qualifies for 
a limited access commercial permit for South Atlantic snapper-grouper 
and who does not receive such notification must obtain an application 
from the RD.
    (2) Applications. (i) An owner of a vessel who desires a limited 
access commercial permit for South Atlantic snapper-grouper must submit 
an application for such permit postmarked

[[Page 1818]]

or hand-delivered not later than 90 days after the date of publication 
of the final rule. Failure to apply in a timely manner will preclude 
permit issuance even when the vessel owner meets the eligibility 
criteria for such permit.
    (ii) A vessel owner who agrees with NMFS' initial determination of 
eligibility, including type of permit (transferable or trip-limited), 
need provide no documentation of eligibility with his/her application.
    (iii) A vessel owner who disagrees with the initial determination 
of eligibility or type of permit, must specify the type of permit 
applied for and provide documentation of eligibility. Documentation and 
other information submitted on or with an application are subject to 
verification by comparison with state, Federal, and other records and 
information. Submission of false documentation or information may 
disqualify an owner from initial participation in the limited access 
commercial South Atlantic snapper-grouper fishery and is a violation of 
the regulations in this part.
    (iv) If an application that is postmarked or hand-delivered in a 
timely manner is incomplete, the RD will notify the vessel owner of the 
deficiency. If the owner fails to correct the deficiency within 20 days 
of the date of the RD's notification, the application will be 
considered abandoned.
    (3) Issuance. (i) If a complete application is submitted in a 
timely manner and the eligibility requirements specified in paragraph 
(b) of this section are met, the RD will issue an initial commercial 
vessel permit, transferable or trip-limited, as appropriate, and mail 
it to the vessel owner not later than 140 days after the date the final 
rule is published.
    (ii) If an application that is postmarked or hand-delivered in a 
timely manner is incomplete, the RD will notify the vessel owner of the 
deficiency. If the applicant fails to correct the deficiency within 20 
days of the date of the RD's notification, the application will be 
considered abandoned.
    (iii) If the eligibility requirements specified in paragraph (b) of 
this section are not met, the RD will notify the vessel owner, in 
writing, not later than 120 days after the date of publication of the 
final rule of such determination and the reasons for it.
    (4) Reconsideration. (i) A vessel owner may request reconsideration 
of the RD's determination regarding initial permit eligibility by 
submitting a written request for reconsideration to the RD. Such 
request must be postmarked or hand-delivered within 20 days of the date 
of the RD's notification denying initial permit issuance and must 
provide written documentation supporting permit eligibility.
    (ii) Upon receipt of a request for reconsideration, the RD will 
forward the initial application, the RD's response to that application, 
the request for reconsideration, and pertinent records to an 
Application Oversight Board consisting of state directors (or their 
designees) from each state in the Council's area of jurisdiction. Upon 
request, a vessel owner may make a personal appearance before the 
Application Oversight Board.
    (iii) If reconsideration by the Application Oversight Board is 
requested, such request constitutes the vessel owner's written 
authorization under section 402(b)(1)(F) of the Magnuson-Stevens 
Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.) for 
the RD to make available to the Application Oversight Board members 
such confidential catch and other records as are pertinent to the 
matter under reconsideration.
    (iv) The Application Oversight Board may only deliberate whether 
the eligibility criteria specified in paragraph (b) of this section 
were applied correctly in the vessel owner's case, based solely on the 
available record, including documentation submitted by the owner. The 
Application Oversight Board may not consider whether an owner should 
have been eligible for a commercial vessel permit because of hardship 
or other factors. The Application Oversight Board members will provide 
their individual recommendations for each application for 
reconsideration to the RD.
    (v) The RD will make a final decision based on the eligibility 
criteria specified in paragraph (b) of this section and the available 
record, including documentation submitted by the vessel owner, and the 
recommendations and comments from members of the Application Oversight 
Board. The RD may not consider whether a vessel owner should have been 
eligible for a commercial vessel permit because of hardship or other 
factors. The RD will notify the owner of the decision and the reason 
for it, in writing, within 15 days of receiving the recommendations 
from the Application Oversight Board members. The RD's decision will 
constitute the final administrative action by NMFS.
    (e) Transfers of permits. A snapper-grouper limited access permit 
is valid only for the vessel and owner named on the permit. To change 
either the vessel or the owner, an application for transfer must be 
submitted to the RD.
    (1) Transferable permits. (i) An owner of a vessel with a 
transferable permit may request that the RD transfer the permit to 
another vessel owned by the same entity.
    (ii) A transferable permit may be transferred upon a change of 
ownership of a permitted vessel with such permit from one to another of 
the following: Husband, wife, son, daughter, brother, sister, mother, 
or father.
    (iii) A transferable permit may be transferred to an owner who had, 
as of August 20, 1996, a written contract for the purchase of a vessel 
that included a provision transferring to the new owner the rights to 
any limited access permit to which the former owner might become 
entitled under the provisions for initial issue of limited access 
permits. To be considered, any such written contract must be submitted 
to the RD postmarked or hand delivered on or before the date that is 
150 days after the date of publication of the final rule that contains 
this paragraph.
    (iv) Except as provided in paragraphs (e)(1)(i), (ii), and (iii) of 
this section, a person desiring to acquire a limited access 
transferable permit for South Atlantic snapper-grouper must obtain and 
exchange two such permits for one new permit.
    (v) A transfer of a permit that is undertaken under paragraph 
(e)(1)(ii), (iii), or (iv) of this section will constitute a transfer 
of the vessel's entire catch history to the new owner.
    (2) Trip-limited permits. An owner of a vessel with a trip-limited 
permit may request that the RD transfer the permit to another vessel 
owned by the same entity provided the length and gross tonnage of the 
replacement vessel are equal to or less than the length and gross 
tonnage of the replaced vessel.
    (f) Renewal. NMFS will not reissue a commercial vessel permit for 
South Atlantic snapper-grouper if the permit is revoked or if the RD 
does not receive an application for renewal within 60 days of the 
permit's expiration date.
    5. In Sec. 622.38, paragraph (a) is revised and paragraph (h) is 
added to read as follows:


Sec. 622.38  Landing fish intact.

* * * * *
    (a) The following must be maintained with head and fins intact: A 
cobia in or from the Gulf or South Atlantic EEZ; a king mackerel or 
Spanish mackerel in or from the Gulf, Mid-Atlantic, or South Atlantic 
EEZ; except as specified in paragraphs (e) and (h) of this section, a 
South Atlantic snapper-grouper in or from the South Atlantic EEZ; a

[[Page 1819]]

yellowtail snapper in or from the Caribbean EEZ; and, except as 
specified in paragraphs (c) and (d) of this section, a finfish in or 
from the Gulf EEZ. Such fish may be eviscerated, gilled, and scaled, 
but must otherwise be maintained in a whole condition.
* * * * *
    (h) In the South Atlantic EEZ, snapper-grouper lawfully harvested 
in Bahamian waters are exempt from the requirement that they be 
maintained with head and fins intact provided valid Bahamian fishing 
and cruising permits are on board the vessel and the vessel is in 
transit through the South Atlantic EEZ. For the purpose of this 
paragraph, a vessel is in transit when it is on a direct and continuous 
course through the EEZ and it does not fish in the EEZ.
    6. In Sec. 622.39, paragraph (a)(3) is added to read as follows:


Sec. 622.39  Bag and possession limits.

    (a) * * *
    (3) Paragraph (a)(1) of this section notwithstanding, the bag and 
other limits specified in Sec. 622.35(b) apply for South Atlantic 
snapper-grouper in or from the EEZ to a person aboard a vessel for 
which a commercial permit for South Atlantic snapper-grouper has been 
issued that has on board a longline in the longline closed area.
* * * * *
    7. In Sec. 622.41, paragraph (d)(2)(ii) introductory text is 
revised and paragraphs (d)(4) and (d)(5) are added to read as follows:


Sec. 622.41  Species specific limitations.

* * * * *
    (d) * * *
    (2) * * *
    (ii) Except as specified in paragraphs (d)(3) through (d)(5) of 
this section, a person aboard a vessel with unauthorized gear on board, 
other than trawl gear, that fishes in the EEZ on a trip is limited on 
that trip to:
* * * * *
    (4) Use of bait nets. A vessel that has on board a commercial 
permit for South Atlantic snapper-grouper, excluding wreckfish, that 
fishes in the South Atlantic EEZ on a trip with a bait net on board, 
may retain otherwise legal South Atlantic snapper-grouper taken on that 
trip with bandit gear, buoy gear, handline, rod and reel, or sea bass 
pot, provided only one such net is on board. For the purpose of this 
paragraph (d)(4), a bait net is a gillnet not exceeding 50 ft (15.2 m) 
in length or 10 ft (3.1 m) in height with stretched mesh measurements 
of 1.5 inches (3.8 cm) or smaller that is attached to the vessel when 
deployed.
    (5) Use of cast nets. A vessel that has on board a commercial 
permit for South Atlantic snapper-grouper, excluding wreckfish, that 
fishes in the South Atlantic EEZ on a trip with a cast net on board, 
may retain otherwise legal South Atlantic snapper-grouper taken on that 
trip with bandit gear, buoy gear, handline, rod and reel, or sea bass 
pot. For the purpose of this paragraph (d)(5), a cast net is a cone-
shaped net thrown by hand and designed to spread out and capture fish 
as the weighted circumference sinks to the bottom and comes together 
when pulled by a line.
* * * * *
    8. In Sec. 622.44, the last sentence of the introductory text and 
paragraph (c) are revised to read as follows:


Sec. 622.44  Commercial trip limits.

    * * * For fisheries governed by this part, commercial trip limits 
apply as follows (all weights are round or eviscerated weights):
* * * * *
    (c) South Atlantic snapper-grouper. When a vessel fishes on a trip 
in the South Atlantic EEZ, the vessel trip limits specified in this 
paragraph (c) apply, provided persons aboard the vessel are not subject 
to the bag limits. See Sec. 622.39(a) for applicability of the bag 
limits.
    (1) Trip-limited permits. A vessel for which a trip-limited permit 
for South Atlantic snapper-grouper has been issued is limited to 225 lb 
(102.1 kg) of snapper-grouper.
    (2) Golden tilefish. (i) Until the fishing year quota specified in 
Sec. 622.42(e)(2) is reached, 5,000 lb (2,268 kg).
    (ii) After the fishing year quota specified in Sec. 622.42(e)(2) is 
reached, 300 lb (136 kg).
    (3) Snowy grouper. (i) Until the fishing year quota specified in 
Sec. 622.42(e)(1) is reached, 2,500 lb (1,134 kg).
    (ii) After the fishing year quota specified in Sec. 622.42(e)(1) is 
reached, 300 lb (136 kg).
* * * * *
[FR Doc. 98-702 Filed 1-9-98; 8:45 am]
BILLING CODE 3510-22-F