[Federal Register Volume 63, Number 136 (Thursday, July 16, 1998)]
[Rules and Regulations]
[Pages 38298-38303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18909]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

15 CFR Part 902

50 CFR Part 622

[Docket No. 971128281-8165-02; I.D. 102197D]
RIN 0648-AG27


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Snapper-Grouper Fishery Off the Southern Atlantic States; Golden Crab 
Fishery Off the Southern Atlantic States; Amendment 8; OMB Control 
Numbers

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

ACTION: Final rule.

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SUMMARY: NMFS issues this final rule to implement the approved measures 
in Amendment 8 to the Fishery Management Plan for the Snapper-Grouper 
Fishery of the South Atlantic Region (FMP). This final rule limits 
access to the commercial snapper-grouper fishery; allows 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, exempts 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. This final rule also corrects the regulations for 
golden crab. Finally, NMFS informs the public of the approval by the 
Office of Management and Budget (OMB) of the collection-of-information 
requirements contained in this rule, publishes the OMB control number 
for these collections, and corrects the list of control numbers 
applicable to title 50 of the Code of Federal Regulations. The intended 
effects of this rule are to conserve and manage the snapper-grouper 
resources off the southern Atlantic states.

DATES: This final rule is effective August 17, 1998, except that the 
amendments to 15 CFR 902.1(b), 50 CFR 622.4(g), 622.7(b), and 
622.40(b)(3)(ii)(B), and the addition of Sec. 622.18 to subpart B are 
effective July 16, 1998, and the amendments to Sec. 622.4(a)(2)(vi) and 
Sec. 622.44 introductory text and the revision of Sec. 622.44(c) are 
effective December 14, 1998.

ADDRESSES: Copies of the final regulatory flexibility analysis (FRFA) 
may be obtained from 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., St. Petersburg, FL 33702, and to the 
Office of Management and Budget (OMB), Washington, DC 20503 (Attention: 
NOAA Desk Officer).

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 
South Atlantic Fishery Management Council (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.
    On October 30, 1997, NMFS announced the availability of Amendment 8 
and requested comments on the amendment (62 FR 58703). On January 12, 
1998, NMFS published a proposed rule to implement the measures in 
Amendment 8 and additional measures proposed by NMFS and requested 
comments on the rule (63 FR 1813). The background and rationale for the 
measures in the amendment and proposed rule, including a detailed 
explanation of the limited access program and key dates, are contained 
in the preamble to the proposed rule and are not repeated here. On 
January 28, 1998, after considering the comments received on the 
amendment and proposed rule, NMFS partially approved Amendment 8. 
Revised definitions of ``overfishing,'' ``overfished,'' and of 
``threshold level'' were disapproved.

Definitions of Overfishing, Overfished, and Threshold Level

    NMFS disapproved the revised definitions of overfished/overfishing 
and the threshold criterion for all snapper-grouper species because 
they were inconsistent with the Magnuson-Stevens Act requirement to 
prevent overfishing. Specifically, reducing the overfished/overfishing 
definitions from the 30-percent to the 20-percent level of the spawning 
potential ratio (SPR) could allow a higher level of fishing mortality 
that would jeopardize the capacity of the fisheries to produce maximum 
sustainable yield (MSY) on a continuing basis. Retention of the 
overfished/overfishing definitions at the 30-percent SPR level is more 
risk averse and more likely to assure the attainment of MSY on a 
continuing basis. The SPR Strategy

[[Page 38299]]

Committee advised the Council that the best estimate of OY for snapper-
grouper species lies between 30 and 40 percent SPR. This advice 
constitutes the best scientific information available at this time.
    The proposed overfishing threshold of 10 percent SPR was 
disapproved because it is inconsistent with the Magnuson-Stevens Act 
requirement to maintain a stock size that has the capacity to produce 
MSY on a continuing basis. Since the MSY level for species in the 
snapper-grouper complex is at least 30 percent SPR, the 10-percent 
criterion would be too low. Thus, the 10-percent criterion was 
disapproved because it was not consistent with national standard 1.

Comments and Responses

    Comments on Amendment 8 and on the proposed rule were received from 
the Council and 11 individuals.
    Comment: The Council reiterated its support for Amendment 8 and 
stated that it did not understand why NMFS disapproved the threshold 
level.
    Response: NMFS agrees with the Council on the approved measures of 
Amendment 8. The proposed overfishing threshold of 10 percent SPR was 
disapproved because it is inconsistent with the Magnuson-Stevens Act 
requirement to maintain a stock size that has the capacity to produce 
MSY on a continuing basis.
    Comment: One fisherman stated that he wanted snapper-grouper 
landings from Gulf statistical area number 2 to be included for 
eligibility purposes.
    Response: Amendment 8 allows landings from Gulf statistical area 
number 2 to be included for eligibility purposes, provided these 
landings were harvested, landed, and sold in compliance with all state 
and Federal regulations.
    Comment: Six individuals, who did not meet the criterion of having 
a Federal snapper-grouper permit during the period February 11, 1996, 
through February 11, 1997, oppose this criterion for the limited access 
program. They believe that all currently permitted vessels should be 
allowed to remain in the fishery.
    Response: NMFS disagrees with these comments for the following 
reasons. The average number of permitted vessels between 1993 and 1996 
has been approximately 2,100 vessels. Of these, over 1,200 did not 
report any landings of snapper-grouper species. It appears that many 
vessel owners obtained snapper-grouper permits for speculative 
purposes.
    On July 30, 1991, a notice of control date for entry into the 
snapper-grouper fishery was published in the Federal Register (56 FR 
36052). This notice announced that anyone entering the snapper-grouper 
fishery in the EEZ off the South Atlantic states after July 30, 1991 
(control date), may not be assured of future access to the fishery if a 
management regime is developed and implemented. Since that time, NMFS 
and the South Atlantic Council have informed the public on several 
occasions that entry to the fishery could be limited. The purpose of 
these announcements was to discourage new entry into the fishery based 
on economic speculation.
    After extensive analysis, the Council concluded that the size and 
capacity of the fleet have increased significantly in recent years. 
Presently, there is excessive harvesting capacity in the fishery. The 
Council concluded that any gains from conservation measures would lead 
to new entries into the fishery, which would negate the positive 
impacts of conservation measures. In addition, the entry of new vessels 
would lead to gear and area conflicts as more vessels competed for 
available resources on the same fishing grounds.
    The Council and NMFS believe that limiting participation to those 
vessels that held a permit between February 11, 1996, and February 11, 
1997, will stabilize the number of vessels in the fishery. Further, the 
two-for-one transfer provision will reduce the number of vessels to the 
level that the resource can sustain. In summary, this measure will 
promote orderly utilization of the resource, promote stability in the 
fishery and facilitate long-term planning, minimize gear and area 
conflicts among fishermen, and decrease incentives for 
overcapitalization. Thus, NMFS supports the limited access program.
    Comment: One individual believes everyone has a right to fish 
snapper-grouper commercially.
    Response: The snapper-grouper resources belong to all citizens of 
the United States, including future generations. The Magnuson-Stevens 
Act directs that overfishing be prevented while achieving, on a 
continuing basis, the OY from each fishery. Further, the Magnuson-
Stevens Act directs that overfished stocks be rebuilt. Given these 
statutory mandates and the fragile nature of the snapper-grouper 
resource, not everyone will be allowed to fish commercially. In fact, 
fishing pressure must be reduced substantially to rebuild currently 
overfished species in the snapper-grouper management unit within 
statutory time frames.
    Comment: Two individuals, who will qualify for a trip-related 
commercial permit, oppose the provision that a replacement vessel shall 
be equal to or less than the size (length and gross tonnage) of the 
replaced vessel.
    Response: Although the Council is allowing low-volume fishermen to 
continue to fish, it does not want these fishermen to add to the 
overfishing problem. If low volume fishermen were allowed to increase 
the size or capacity of their vessel, they would increase the fishing 
power of the vessel which could lead to greater catches, thereby 
exacerbating the overfishing problem in the fishery. The comments do 
not provide substantive information that would provide a basis for 
disapproval of this provision. NMFS, therefore, disagrees with the 
comments and has approved this provision.

Delayed Effectiveness for Commercial Trip Limits

    The revisions to the commercial trip limits in Sec. 622.44 
introductory text and paragraph (c) are made effective December 14, 
1998 to avoid differential regulatory effects on permittees based 
solely on their birth month (date of permit expiration) and to minimize 
administrative problems related to permit issuance. December 14, 1998 
is the date that limited access permits are required and that prior 
snapper-grouper commercial permits are no longer valid. If the 
commercial trip limits were effective prior to that date, permittees 
whose permits expire before that date and who would be eligible only 
for a trip-limited permit would be forced to obtain the trip-limited 
permit and to be constrained by the associated commercial trip limit. 
However, such permittees whose permits would not expire by that date 
could continue to fish until that date with their existing commercial 
permits and without a commercial trip limit. This differential 
regulatory impact based solely on birth month (permit expiration date) 
is undesirable. Also, it is likely that this group of permittees would 
defer application for a limited access (trip-limited) permit as long as 
possible, thus impeding orderly issuance of such permits.

Changes From the Proposed Rule

    In Sec. 622.4(a)(2)(vi), the proposed language regarding the terms 
``transferable commercial permit'' and ``trip-limited commercial 
permit'' was determined to be unnecessary and was removed because the 
existing term, ``commercial vessel permit'' is adequate. The 
requirement to have either a transferable commercial permit or a trip-
limited commercial permit is addressed specifically in Sec. 622.18(a).

[[Page 38300]]

    Minor editorial revisions are made in Secs. 622.4(g) and 622.7(b) 
to conform to revisions implemented by the final rule for Amendment 15 
to the Fishery Management Plan for the Reef Fish Resources of the Gulf 
of Mexico (62 FR 67714, December 30, 1997), which occurred after 
publication of the proposed rule for snapper-grouper Amendment 8.
    In Sec. 622.18 of the proposed rule, minor editorial changes were 
made in paragraph (b) to improve clarity. Further, the language in 
paragraph (d)(2)(iv) was inadvertently duplicated in paragraph 
(d)(3)(ii). In this final rule, Sec. 622.18(d)(3)(ii) is removed, and 
Sec. 622.18(d)(3)(iii) is redesignated as Sec. 622.18(d)(3)(ii) to 
eliminate the redundancy and reorder the section.
    In Sec. 622.41 of the proposed rule, the headings of paragraphs 
(d)(3), (d)(4), and (d)(5) were revised to reflect more accurately the 
effect of the paragraphs, and minor editorial revisions to those 
paragraphs were made to state the provisions more concisely.
    NMFS is also making a technical amendment to 
Sec. 622.40(b)(3)(ii)(B), which was not included in the proposed rule. 
This technical amendment revises a phrase that did not appropriately 
express the intent of the Fishery Management Plan for the Golden Crab 
Fishery of the South Atlantic Region. Specifically, the phrase ``hinges 
and fasteners'' is revised to read ``hinges or fasteners.'' The effect 
is that either hinges or fasteners must be constructed of degradable 
materials; the prior existing regulatory language incorrectly required 
both hinges and fasteners to be degradable.
    Under NOAA Administrative Order 205-11, 7.01, dated December 17, 
1990, the Under Secretary for Oceans and Atmosphere, Department of 
Commerce, has delegated authority to sign material for publication in 
the Federal Register to the Assistant Administrator for Fisheries, NOAA 
(AA).

Classification

    The Regional Administrator, Southeast Region, NMFS, with the 
concurrence of the AA, determined that the approved measures of 
Amendment 8 are necessary for the conservation and management of the 
snapper-grouper fishery off the southern Atlantic states and that, with 
the exception of the measures that were not approved, Amendment 8 is 
consistent with the Magnuson-Stevens Act and other applicable law.
    This final rule has been determined to be not significant for 
purposes of E.O. 12866.
    NMFS prepared a FRFA based on an initial regulatory flexibility 
analysis (IRFA). No public comments were received on the IRFA and no 
other information was received that would alter the IRFA conclusions. 
Also, the disapproval of certain amendment measures did not result in 
changes to the final rule compared to the proposed rule. For these 
reasons, the FRFA adopts the analyses and findings of the IRFA without 
change. The FRFA concludes that a significant economic impact on a 
substantial number of small entities will result from implementation of 
Amendment 8. A summary of the FRFA follows.
    The rule is based largely on the need to resolve overcapitalization 
problems in the fishery; the Council is revising the existing permit 
system to cap the number of participants in the fishery and to follow 
that with future actions to control the level of overall effort and 
catch. Other actions in the rule allow fishermen to catch bait with 
nets and also exempt recreational fishermen from the requirement to 
land snapper-grouper species with the head and fins intact if the fish 
were caught legally in Bahamian waters and the fisherman does not fish 
in the EEZ. The rule will affect about 2,500 commercial snapper-grouper 
fishermen who operate vessels and equipment worth from $53,000 to 
$237,000 per operation. A number of these operations land only a minor 
amount of the snapper-grouper species, and this is indicated by the 
observation that average annual snapper-grouper landings per vessel are 
valued at about $6,200. The rule contains three new, minor data 
collection requirements that can be met by the fishermen without the 
need for additional reporting or recordkeeping skills. The Council 
considered a number of alternatives to the proposed options and, in all 
cases, rejected the status quo because the objectives of the rule would 
not be met. The options considered ranged from options that would 
create only slight changes relative to the status quo to options that 
would meet the objectives, but only at the cost of a considerable 
negative economic impact on existing fishermen. The Council chose the 
preferred options on the basis that progress toward the objectives 
would be made without imposing excessive negative impacts on existing 
small business entities.
    Copies of the FRFA are available (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 approved by OMB under OMB control 
number 0648-0340. 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. Send comments 
regarding these burden estimates or any other aspects of the 
collections of information, including suggestions for reducing the 
burden, to NMFS and OMB (see ADDRESSES).
    Timely and orderly implementation of the new limited access program 
for South Atlantic snapper-grouper requires that Sec. 622.18 and 
related provisions in Secs. 622.4(g) and 622.7(b) be made effective as 
soon as possible, i.e., July 16, 1998. Section 622.18 deals exclusively 
with the administrative and operational aspects of the limited access 
program. The provisions of Sec. 622.18 outline numerous deadlines for 
actions by persons seeking to obtain a limited access permit, criteria 
for permit eligibility, and administrative actions by NMFS that must 
precede actions by a permit applicant. These permit-related provisions 
are interrelated. To ensure adequate time for NMFS to perform 
prerequisite actions, such as determination of eligibility and 
notification of owners, to provide a reasonable amount of time for 
applicants to respond as required by the provisions of Amendment 8 and 
this rule, and to assure orderly implementation of the limited access 
program, Sec. 622.18 must be made effective as soon as possible. 
Similarly, the provisions related to permit transferability in 
Sec. 622.4(g), the prohibition on falsifying information on a permit 
application in Sec. 622.7(b), and the OMB control numbers for the three 
new, one-time collection-of-information requirements contained in 15 
CFR 902.1(b) are directly related to the initial implementation of the 
limited access

[[Page 38301]]

program and must also be made effective as soon as possible. Under 5 
U.S.C. 553(d)(3), the AA, for good cause, finds that it would be 
unnecessary and contrary to the public interest to delay for 30 days 
the effective date of the amendments to Secs. 622.4(g), 622.7(b), 
622.18, and 15 CFR 902.1(b).

List of Subjects

15 CFR Part 902

    Reporting and recordkeeping requirements.

50 CFR Part 622

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

    Dated: July 10, 1998.
David L. Evans,
Deputy Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

    For the reasons set out in the preamble, 15 CFR part 902 and 50 CFR 
part 622 are amended as follows:

15 CFR CHAPTER IX

PART 902--NOAA INFORMATION COLLECTION REQUIREMENTS UNDER THE 
PAPERWORK REDUCTION ACT: OMB CONTROL NUMBERS

    1. The authority citation for part 902 continues to read as 
follows:

    Authority: 44 U.S.C. 3501 et seq.

    2. Effective July 16, 1998, in Sec. 902.1, paragraph (b) table, 
under 50 CFR, the following entry is added in numerical order to read 
as follows:


Sec. 902.1  OMB control numbers assigned pursuant to the Paperwork 
Reduction Act.

* * * * *
    (b) * * *

------------------------------------------------------------------------
                                                            Current OMB 
                                                          control number
  CFR part or section where the information collection     (all numbers 
                 requirement is located                     begin with  
                                                              0648-)    
------------------------------------------------------------------------
                                                                        
                  *        *        *        *        *                 
50 CFR                                                                  
                                                                        
                  *        *        *        *        *                 
  622.18................................................           -0340
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------

50 CFR Chapter VI

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

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

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

    4. Effective December 14, 1998, in Sec. 622.4, the last sentence of 
paragraph (a)(2)(vi) is revised to read as follows:


Sec. 622.4  Permits and fees.

    (a) * * *
    (2) * * *
    (vi) * * * See Sec. 622.18 for limitations on the use, transfer, 
and renewal of a commercial vessel permit for South Atlantic snapper-
grouper.
* * * * *
    5. Effective July 16, 1998, in Sec. 622.4, the first sentence of 
paragraph (g) is revised to read as follows:


Sec. 622.4  Permits and fees.

* * * * *
    (g) Transfer. A vessel permit, license, 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 license, in paragraph (q) of this section for a king mackerel 
permit, in Sec. 622.17(i) for a commercial vessel permit for golden 
crab, or in Sec. 622.18(e) for a commercial vessel permit for South 
Atlantic snapper-grouper. * * *
* * * * *
    6. Effective July 16, 1998, 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, license, or 
endorsement or submitted in support of such application, as specified 
in Sec. 622.4(b), (g), (p), or (q), or in Sec. 622.17, or in 
Sec. 622.18.
* * * * *
    7. Effective July 16, 1998, Sec. 622.18 is added to subpart B to 
read as follows:


Sec. 622.18  South Atlantic snapper-grouper limited access.

    (a) Applicability. Beginning December 14, 1998, the only valid 
commercial vessel 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 owned a vessel with a commercial vessel permit for South 
Atlantic snapper-grouper at any time from February 11, 1996, through 
February 11, 1997, and owned a permitted vessel that had at least one 
landing of snapper-grouper from the South Atlantic 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, 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

[[Page 38302]]

record of landings of snapper-grouper from the South Atlantic.
    (d) Implementation procedures--(1) Notification of status. On or 
about July 27, 1998, 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 July 16, 1998, of NMFS' initial determination of eligibility for 
either a transferable or a 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 or hand-delivered not later 
than October 14, 1998. 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 December 3, 1998.
    (ii) 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 November 13, 1998 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 Act 
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 
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 a vessel whose 
owner 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 December 
14, 1998.
    (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), (e)(1)(iii), or (e)(1)(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.

[[Page 38303]]

    8. In Sec. 622.38, paragraph (a) is revised and paragraph (i) is 
added to read as follows:


Sec. 622.38  Landing fish intact.

* * * * *
    (a) The following must be maintained with head and fins intact: 
Cobia, king mackerel, and Spanish mackerel in or from the Gulf, Mid-
Atlantic, or South Atlantic EEZ, except as specified for king mackerel 
in paragraph (h) of this section; South Atlantic snapper-grouper in or 
from the South Atlantic EEZ, except as specified in paragraphs (e) and 
(i) of this section; yellowtail snapper in or from the Caribbean EEZ; 
and finfish in or from the Gulf EEZ, except as specified in paragraphs 
(c) and (d) of this section. Such fish may be eviscerated, gilled, and 
scaled, but must otherwise be maintained in a whole condition.
* * * * *
    (i) 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 (i), a vessel is in transit through the South Atlantic EEZ 
when it is on a direct and continuous course through the South Atlantic 
EEZ and no one aboard the vessel fishes in the EEZ.
    9. 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.
* * * * *
    10. Effective July 16, 1998, in Sec. 622.40(b)(3)(ii)(B), the last 
sentence is revised to read as follows:


Sec. 622.40  Limitations on traps and pots.

* * * * *
    (b) * * *
    (3) * * *
    (ii) * * *
    (B) * * * The hinges or fasteners of such door or panel must be 
made of either ungalvanized or uncoated iron wire no larger than 19 
gauge (0.04 inch (1.0 mm) in diameter) or untreated cotton string no 
larger than \3/16\ inch (4.8 mm) in diameter.
* * * * *
    11. In Sec. 622.41, paragraph (d)(2)(ii) introductory text and 
paragraph (d)(3) are 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:
* * * * *
    (3) Possession allowance regarding sink nets off North Carolina. A 
vessel that has on board a commercial permit for South Atlantic 
snapper-grouper, excluding wreckfish, that fishes in the EEZ off North 
Carolina with a sink net on board, may retain, without regard to the 
limits specified in paragraph (d)(2)(ii) of this section, otherwise 
legal South Atlantic snapper-grouper taken with bandit gear, buoy gear, 
handline, rod and reel, or sea bass pot. For the purpose of this 
paragraph (d)(3), a sink net is a gillnet with stretched mesh 
measurements of 3 to 4.75 inches (7.6 to 12.1 cm) that is attached to 
the vessel when deployed.
    (4) Possession allowance regarding 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 with no more than one 
bait net on board, may retain, without regard to the limits specified 
in paragraph (d)(2)(ii) of this section, otherwise legal South Atlantic 
snapper-grouper taken with bandit gear, buoy gear, handline, rod and 
reel, or sea bass pot. 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) Possession allowance regarding 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 with a cast net on 
board, may retain, without regard to the limits specified in paragraph 
(d)(2)(ii) of this section, otherwise legal South Atlantic snapper-
grouper taken 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.
* * * * *
    12. Effective December 14, 1998, 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. 98-18909 Filed 7-15-98; 8:45 am]
BILLING CODE 3510-22-P