[Federal Register Volume 64, Number 240 (Wednesday, December 15, 1999)]
[Rules and Regulations]
[Pages 69888-69898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32320]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

15 CFR Part 902

50 CFR Part 660

[Docket No. 990430115-9314-02; I.D. 030299B]
RIN 0648-AL48


Fisheries Off West Coast States and in the Western Pacific; 
Northern Anchovy/Coastal Pelagic Species Fishery; Amendment 8

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: NMFS issues regulations to implement Amendment 8 to the 
Northern Anchovy Fishery Management Plan. This rule removes jack 
mackerel north of 39 deg. N. lat. from the Pacific Coast Groundfish 
Fishery Management Plan and adds four species to the management unit of 
the Coastal Pelagic Species (CPS) (formerly the Northern Anchovy 
Fishery Management Plan (FMP)); defines a new fishery management area 
and divides it into a limited entry zone and two new subareas; 
establishes a procedure for setting annual specifications including 
harvest guidelines and quotas; provides for closure of the directed 
fishery when the directed portion of a harvest guideline or quota is 
taken; identifies fishing seasons for Pacific sardine and Pacific 
mackerel; establishes catch restrictions in the limited entry zone and, 
when the directed fishery for a CPS is closed, limits harvest of that 
species to an incidental limit set by the Southwest Regional 
Administrator, NMFS, (Regional Administrator); implements a limited 
entry program; authorizes the Regional Administrator to issue exempted 
fishing permits for the harvest of CPS that otherwise would be 
prohibited; and establishes a framework process by which management 
decisions could be made without amending the FMP. No regulations are 
required at this time to implement the overfishing definitions and 
designation of essential fish habitat (EFH).
    The intent of this action is to implement the provisions of 
Amendment 8 to the Northern Anchovy Fishery Management Plan, which will 
prevent overfishing, maximize yield from available resources, and 
control increasing harvesting capacity off the Pacific coast.

DATES: Effective January 14, 2000, except for Sec. 660.502 and 
Sec. 660.512 which are effective December 15, 1999, and 
Secs. 660.505(a),(b),(g), and 660.511 which are effective January 1, 
2000.

ADDRESSES: Copies of Amendment 8, which includes the final supplemental 
environmental impact statement (FSEIS)/regulatory impact review may be 
obtained from Larry Six, Executive Director, Pacific Fishery Management 
Council, 2130 SW Fifth Avenue, Suite 224, Portland, Oregon, 97201. 
Comments regarding the reporting burden estimate or any other aspect of 
the collection-of-information requirements contained in this rule 
should be sent to Rodney R. McInnis, Acting Administrator, Southwest 
Region, NMFS, 501 West Ocean Boulevard, Suite 4200, Long Beach, CA 
90802, and to the Office of Information and Regulatory Affairs, Office 
of Management and Budget (OMB), Washington, DC 20503 (ATTN: NOAA Desk 
Officer).

FOR FURTHER INFORMATION CONTACT: James Morgan, Sustainable Fisheries 
Division, NMFS, at 562-980-4030.

SUPPLEMENTARY INFORMATION: The Pacific Fishery Management Council 
(Council) submitted Amendment 8 for Secretarial review by a letter 
dated December 11, 1998. On March 12, 1999,

[[Page 69889]]

a notice of availability of the FSEIS for Amendment 8 was published in 
the Federal Register (64 FR 12279). The proposed rule was published on 
May 25, 1999 (64 FR 28143). The comment period on the FSEIS ended on 
May 11, 1999. The comment period on the proposed rule ended on July 9, 
1999.
    On June 10, 1999, the Secretary of Commerce partially approved 
Amendment 8. Optimum yield (OY) for squid was disapproved because the 
amendment did not provide an estimate of maximum sustainable yield 
(MSY), the theoretical concept on which OY and overfishing are based 
under the Magnuson-Stevens Act. The bycatch provisions were disapproved 
because Amendment 8 did not contain a standardized reporting 
methodology to assess the amount and type of bycatch in the fishery and 
because there is no explanation of whether additional management 
measures to minimize bycatch and the mortality of unavoidable bycatch 
are practicable at this time. The Council has directed its CPS 
Management Team (Management Team) and its CPS Advisory Subpanel 
(Advisory Subpanel) to begin working to resolve these two issues. All 
other elements of Amendment 8 were approved.
    The requirements of the Magnuson-Stevens Act, as amended by the 
Sustainable Fisheries Act, such as defining OY, overfishing, levels at 
which managed stocks are considered overfished, EFH, and social and 
economic data on fishing communities were discussed in the preamble to 
the proposed rule and are not repeated here.

Species in the FMP

    Amendment 8 and this final rule place Pacific mackerel (Scomber 
japonicus), Pacific sardine (Sardinops sagax), jack mackerel (Trachurus 
symmetricus), and market squid (Loligo opalescens) in a management unit 
with northern anchovy (Engraulis mordax). All CPS are harvested by a 
fleet of vessels using mainly roundhaul nets (e.g., purse seines). 
Managed species are divided into two categories: ``Actively managed'' 
and ``monitored''. Actively managed species are subject to annual 
harvest limits based on current biomass estimates. There are no 
mandatory harvest limits for monitored species; however, other 
management measures, such as area closures, could apply to monitored 
species. Amendment 8 sets the allowable biological catch (ABC) levels 
for monitored species well below estimates of MSY to obviate the need 
for detailed resource assessments until the domestic fishery 
necessitates active management of these species. Initially, Pacific 
sardine and Pacific mackerel are designated as actively managed 
species, while jack mackerel, northern anchovy, and market squid are 
monitored species.
    In Amendment 11 to the Pacific Groundfish Fishery Management Plan, 
jack mackerel was removed from that fishery management plan, effective 
upon implementation of Amendment 8 to the Northern Anchovy Fishery 
Management Plan.

Fishery Management Areas and Subareas

    The fishery management area is the exclusive economic zone (EEZ) 
off the coasts of Washington, Oregon, and California between 3 and 200 
nautical miles offshore, bounded in the north by the Provisional 
International Boundary between the United States and Canada, and 
bounded in the south by the International Boundary between the United 
States and Mexico. The fishery management area is divided into subareas 
for the regulation of fishing for CPS, with the following boundaries: 
The CPS Limited Entry Zone covers that portion of the EEZ between 
39 deg.00'00'' N. lat. (off California) and the U.S. Mexico-
International Boundary; Subarea A covers that portion of the EEZ 
between the U.S.-Canada Provisional International Boundary and Pt. 
Piedras Blancas, California (35 deg.40'00'' N. lat.); Subarea B covers 
that portion of the EEZ between Pt. Piedras Blancas, California, and 
the U.S.-Mexico International Boundary.

Limited Entry System

    A limited entry system is established in the commercial fishery for 
CPS finfish (squid is not included) south of 39 deg. N. lat. (Pt. 
Arena, California). Open access will continue north of 39 deg. N. lat. 
Historically, 99 percent of the sardine resource has been harvested 
south of Pt. Arena. When abundance is high, fishermen without limited 
entry permits who are active in more northern areas can benefit from 
the high abundance by fishing in the open access fishery. When 
abundance declines, the resource tends to disappear from the north and 
moves south.
    To qualify for a limited entry permit, a vessel must have landed at 
least 100 metric tons (mt) of CPS finfish from January 1, 1993, through 
November 5, 1997. The number of vessels qualified for a limited entry 
permit is estimated to be 70. These vessels have been responsible for 
approximately 99 percent of the harvest of CPS finfish during the 
window period.
    The limited entry program takes effect on January 1, 2000; that is, 
fishermen harvesting CPS finfish south of 39 deg. N. lat. must have a 
limited entry permit on board their vessels at that time. Applicants 
for permits should obtain the required forms as soon as possible so 
that delays in obtaining the required permit can be avoided. The forms 
can be obtained by writing the Regional Administrator (See ADDRESSES), 
by calling the Sustainable Fisheries Division (See FOR FURTHER 
INFORMATION CONTACT), or by downloading the application from the 
Southwest Region Web Site at http://swr.ucsd.edu. Permits will be 
issued to the owner of the qualifying vessel and can only be 
transferred once during the year 2000. This one-time transfer affords 
the owner of a qualifying vessel the opportunity to upgrade his/her 
vessel or to replace an aging vessel, and it also allows those who wish 
to enter the fishery a 1-year opportunity to buy a permit. After the 
year 2000, a permit cannot be transferred to another person. A permit 
can only be registered for use with another vessel if the permitted 
vessel has been lost, stolen, or scrapped, or has been removed from all 
federally managed fisheries.
    Vessels fishing CPS finfish in the limited entry fishery may land 
no more than 125 mt of CPS from any fishing trip. This limit was 
designed to curtail increases in harvest capacity.
    Many vessels have landed small amounts of CPS for dead bait or for 
small specialty markets in the past and would not qualify for a limited 
entry permit. Under the framework provisions of Amendment 8, the 
Council can recommend that vessels without a permit be allowed to make 
CPS finfish landings up to a specified amount between 1 and 5 mt under 
the so-called ``exempted trip limit.'' The final rule initially sets 
the exempted trip limit at 5 mt. Any change in the exempted trip limit 
will be implemented through rulemaking. Additionally, all vessels 
harvesting CPS finfish for live bait are exempt from the limited entry 
permit provisions.

Framework Process

    This rule establishes a framework process to set and adjust fishery 
specifications and management measures in accordance with procedures 
and standards described in section 2 of Amendment 8. The framework 
process consists of two procedural categories: the point-of-concern 
framework procedure and the socio-economic framework procedure, 
according to which the Council may recommend and NMFS may approve the 
establishment and adjustment of management measures. The point-of-
concern framework procedure would be

[[Page 69890]]

used in response to resource conservation and ecological issues, while 
the socio-economic framework procedure would be used to address socio-
economic issues in the fishery. Under both of these procedures, the 
Council and NMFS may carry out four types of actions: (1) Automatic 
actions for non-discretionary actions, which will become effective upon 
publication of a Federal Register notice without prior public notice 
and opportunity for comment and without a prior Council meeting; (2) 
notice actions, which will be used for all management actions, except 
automatic actions, intended to have temporary affect that are either 
non-discretionary or have probable impacts that were previously 
analyzed and which will require at least one Council meeting and 
publication of one Federal Register notice; (3) abbreviated 
rulemakings, which will be used for all discretionary management 
actions intended to have permanent effect, the impacts of which have 
not been previously analyzed, and which will require at least one 
Council meeting and publication of one rule in the Federal Register; 
and (4) full rulemaking actions, which will require at least two 
Council meetings and publication of proposed and final rules in the 
Federal Register with an opportunity for public comment.
    Under the framework system, many different types of actions could 
be taken to respond quickly to changes in the fishery. For example, 
actively managed and monitored species could be moved between 
categories as circumstances require. Other actions include trip 
frequency limits, area or subarea closures, seasons, size limits, gear 
limitations, and other appropriate measures. Amendment 8 and this final 
rule authorize the Council to designate certain management measures as 
``routine management measures.'' This designation will enable the 
Council to modify the measure through the single meeting notice 
procedure described above.

Harvest Guidelines

    The Regional Administrator will calculate the annual harvest 
guidelines for actively managed CPS based on the estimated biomass, 
formulas, and the standards set in the FMP. Harvest guidelines for CPS 
will be calculated using the current biomass estimate multiplied by a 
fixed harvest rate. The portion of the resource in U.S. waters may 
change from year to year; the harvest guidelines will be calculated 
using the best estimate available. The amount of the harvest guideline 
needed for incidental trip limits when the fishery is nearing closure 
may vary depending on when the harvest guideline is projected to be 
achieved, but the sum of the incidental amount and the amount harvested 
directly must equal the total harvest guideline.
    Following the determination of the estimated biomass, the 
Management Team and Advisory Subpanel will review the biomass estimate 
and resulting harvest guideline during a public meeting. Public 
comments and comments of the Advisory Subpanel will be reported to the 
Council. After hearing public comments, the Council will either adopt 
the harvest guideline for the upcoming fishing season or recommend a 
different harvest guideline, accompanied by a justification for the 
recommendation. Although there is little flexibility in setting harvest 
guidelines, errors in calculations and in the way the specific factors 
were used in determining the biomass are elements that could be 
examined.
    The annual process for calculating harvest guidelines will include 
public review of the estimated biomass and harvest guidelines before 
the fishing season begins; however, the Regional Administrator may 
announce the harvest guideline in the Federal Register before the 
process is completed to help fishermen plan their activities and begin 
harvesting when the fishing season begins.

Fishing Seasons

    This rule sets the Pacific sardine season at January 1 to December 
31, or until closed, and the Pacific mackerel season at July 1 to June 
30, or until closed. At this time, the California Department of Fish 
and Game is managing these two species. The Council's Management Team 
and Advisory Subpanel will meet to review the status of these two 
resources so that NMFS harvest guidelines can be implemented beginning 
on January 1, 2000.
    This rule supercedes the existing harvest limits for northern 
anchovy, published in the Federal Register on September 2, 1999 (64 FR 
48113). Those interim final quotas were issued under regulations that 
were in effect before this final rule was promulgated.

Comments and Responses

    Eleven letters on Amendment 8 and the proposed rule were received 
from the fishing industry. Most did not believe that there was 
justification for implementing limited entry in the CPS fishery. 
Comments are grouped together here, followed by NMFS' responses.
     Comment 1: Members of the Advisory Subpanel made decisions about 
limiting the number of vessels to serve their own interests. As a 
result, the fleet is too small to harvest the resource available.
     Response: The Planning Team recommended a fleet smaller than that 
preferred by the Advisory Subpanel, pointing out that a smaller fleet 
was capable of harvesting the MSY of all CPS finfish. The Council 
recommended a larger fleet after hearing testimony from the Planning 
Team, Advisory Subpanel, and from processors, who believed that the 
Planning Team's recommendation for a smaller fleet would not provide a 
sufficient number of vessels in a situation when a processor needed a 
supply of one species at a time when most vessels might prefer 
harvesting a higher valued species. The limited entry fleet established 
by Amendment 8 is expected to meet the needs of the fishing industry 
and be capable of harvesting all CPS finfish that are likely to be 
available.
     Comment 2: Limiting the number of vessels is unnecessary. The 
fleet failed to harvest the sardine quota in 1998 and will not harvest 
the quota in 1999 because the demand for sardine is limited. If limited 
entry is needed in the future, the framework process could be used to 
implement it.
    Response: Enough capacity is believed to exist to harvest the MSY 
of all finfish managed by the FMP. If experience shows that there are 
not enough vessels, the entry of additional vessels could be allowed 
using the framework process. However, experience in other fisheries 
shows that allowing a fleet to grow uncontrollably leads to a larger 
fleet than necessary, and removing excess capacity is often difficult 
and costly.
     Comment 3: Trip limits are inefficient because restricting vessels 
to a certain tonnage each day increases costs.
     Response: The trip limit in the limited entry fishery is a 
limitation on the number of metric tons per trip (initially set at 125 
mt/trip), not per day. No vessel initially permitted in the fishery is 
expected to be capable of landing 125 metric tons. Therefore, the 
initial trip limit is not expected to impose inefficiencies on the 
fishery. As many trips as necessary can be completed to satisfy 
processors' needs. Trip limits as used in the coastal pelagics fishery 
are different from those in other fisheries. The trip limit was imposed 
to avoid rapid expansion of the fleet, not to spread the harvest over 
the year or to limit the capabilities of the existing fleet.

[[Page 69891]]

     Comment 4: Amendment 8 does not assess the capacity that U.S. 
processors can, or the extent that U.S. processors will, process the OY 
of coastal pelagic species.
     Response: The recent increase in abundance of Pacific sardine has 
been dramatic. In response to the increase, new processing capacity has 
been added in southern and central California, and there is an active 
search by processors for additional markets. Processing capacity is 
expected to rise and fall with available market demand. Nevertheless, a 
better idea of how much fish will be processed by domestic processors 
will be gained from experience as processors adapt to market 
conditions. At this time, there appears to be enough potential 
processing capacity to satisfy available markets.
     Comment 5: The limited entry system allocates fishing privileges 
unnecessarily and in a manner that is unfair to existing fishermen. A 
combination of squid and finfish landings as qualifying criteria would 
be more equitable.
     Response: Vessels that primarily land squid qualify for a limited 
entry permit if at least 100 mt of CPS finfish was landed during the 
window period (average of 20 mt/year). Using squid as a qualifying 
species was an option in Amendment 8, but was not adopted because the 
fleet would have included many vessels that landed no CPS finfish. The 
result would have been a much larger fleet with vessels that have never 
landed CPS finfish receiving a permit that applies only to finfish 
while some vessels that actually targeted CPS finfish would have been 
eliminated from the fishery.
     Comment 6: Amendment 8 does not, as required by Section 
303(a)(4)(A) of the Magnuson-Stevens Act, assess and specify the 
capacity and the extent to which fishing vessels of the United States, 
on an annual basis will harvest the OY of CPS finfish. Amendment 8 
focuses on the number of vessels rather than the capacity of vessels.
    The importance of carrying capacity is apparent if one looks at the 
practices of the Inter-American Tropical Tuna Commission (IATTC), which 
tracks closely the capacity of individual vessels in the various tuna 
fleets as well as the harvesting rates of individual vessels.
     Response: The harvesting capacity of the fleet was assessed in 
Amendment 8 by examining a combination of what vessels can physically 
hold and how many trips they can make during the year. Assuming a 
modest harvest rate by existing vessels, the MSY of finfish likely to 
be available could be harvested in a 6-month season. The underlying 
purpose of determining domestic capacity is to make fishery resources 
available to U.S. fishermen before making them available to foreign 
fishermen. The capacity of each individual vessel does not need to be 
determined to meet the requirements of the Magnuson-Stevens Act.
    The IATTC keeps rigorous records of hold capacity of individual 
vessels. In the tuna fishery, however, a substantial amount of 
harvested fish is at sea at any particular moment. To determine when 
quotas will be reached, the IATTC needs to know how much fish 
individual vessels hold and how much fish a vessel can harvest each 
day. To manage quotas on coastal pelagic species, all that needs to be 
known is how much is landed. The IATTC could not manage tuna based only 
on landings.
     Comment 7: Amendment 8 violated procedural safeguards of the 
Magnuson-Stevens Act with regard to public review and analysis of the 
provisions that severely curtail the transferability of permits after 
the year 2000.
     Response: Non-transferable permits were an option in Amendment 8 
through several drafts of the sections on limited entry and was 
available for public review and comment. The option was included in the 
draft amendment dated August 1998, and the option was available for 
public review and comment at the public hearings chaired by the 
Council. The provisions have been implemented by notice-and-comment 
rulemaking under the Administrative Procedure Act.
     Comment 8: Amendment 8 shows that the annual number of roundhaul 
vessels that have landed CPS during 1981-1997 has changed substantially 
from year to year. Since the vessels are not listed by official number 
and name, the variation may be due to duplication.
     Response: To determine potential fleet size, the Planning Team 
used data from the Pacific Fishery Information Network. When vessels 
landed catch at more than one port, the port of landing was taken to be 
where most of the landings were made. Effort was taken to minimize the 
possibility of duplication.
     Comment 9: Amendment 8 takes an overly optimistic view of the 
harvesting capacity of the coastal pelagics fleet. Historical records 
do not show such high harvests. There are no data to support the high 
harvests needed per vessel to land more than 400,000 mt in a 6-month 
period.
     Response: As stated in comment 6, the estimate of a 6-month season 
to harvest the MSY of all species likely to be available may be 
inexact. Nevertheless, the goal of Amendment 8 is not to achieve the 
number of vessels that will be needed to harvest the full quotas for 
coastal pelagic species during years of particularly high stock 
abundance. The goal of limited entry is to ensure that there is no more 
capital invested in the fishery than necessary. As stated in the 
amendment, wide variability in the coastal pelagic resources is 
inevitable. Presently, northern anchovy is at relatively low biomass 
levels and has a limited market. The sardine resource is increasing, 
but demand has not increased as rapidly as the resource. The Pacific 
mackerel quota is larger in 1999 than in recent years, but it is 
uncertain whether the full market potential will be realized. Amendment 
8 concludes that about 70 vessels will be sufficient to meet the varied 
objectives of the FMP.
    In addition to the harvesting that occurs in the limited entry 
fishery, when one or more resources exhibit large abundance, any vessel 
may harvest north of 39 deg. N. lat. without a limited entry permit. If 
OY is not being taken because of overly restrictive management, the 
Council and NMFS will adjust the system as appropriate.
     Comment 10: The Council did not take into account the present 
participation and importance of the CPS finfish fishery as it affects 
the commercial fishing community in San Diego County.
     Response: Amendment 8 establishes liberal qualifying criteria that 
will make it unlikely that vessels dependent on CPS finfish will be 
excluded from the fishery. The Magnuson-Stevens Act requires that each 
plan or amendment include a fishery impact statement that assesses the 
effects, if any, of the conservation and management measures on 
participants in the fisheries and on fishing communities. Although the 
analysis may not have addressed all of the particular impacts of 
Amendment 8 on a specific fishing community such as the commercial 
fishing community in San Diego County, the limited entry scheme, 
besides preventing overcapitalization, is designed to protect historic 
participation in the fishery while providing maximum benefits to all 
users. Provisions for small and incidental harvesters to maintain their 
catches prevent individuals from being penalized or from being excluded 
from the fishery. Although CPS finfish are commonly low-valued species, 
when the abundance of CPS finfish is large and market conditions make 
harvesting feasible, any harvester that has landed minimal or no CPS 
finfish may gain benefits from the fishery by participating in the open 
access fishery north of 39 deg. N. lat.

[[Page 69892]]

     Comment 11: The provision to allow only 1 year to upgrade a vessel 
is too restrictive. The restriction on transfers combined with the trip 
limit is extremely inefficient.
     Response: Amendment 8 does not restrict improvements to existing 
vessels; it strictly limits registering a limited entry permit with an 
entirely different vessel. This rule does not restrict a fisherman's 
choice to increase horsepower, install a refrigeration system, enlarge 
hold capacity, or make any other changes to improve an existing vessel. 
By implementing a trip limit and regulating transfers to control 
expansion of the fleet, NMFS avoided a complicated system of 
regulations governing horsepower, vessel length, and hold capacity. Any 
potential inefficiencies created by the limited entry program are 
expected to be outweighed by controlling increases in harvesting 
capacity.

NMFS Action

    The administrative procedures needed to implement a limited entry 
permit system are being made effective upon the date of publication in 
the Federal Register of the final rule. The effectiveness of the 
substantive measures of Amendment 8 is being delayed until January 1, 
2000.
    NOAA codifies its OMB control numbers for information collection at 
15 CFR part 902. Part 902 collects and displays the control numbers 
assigned to information collection requirements of NOAA by OMB pursuant 
to the Paperwork Reduction Act (PRA). This final rule codifies OMB 
control number 0648-0204 for Sec. 660.512.
    Under NOAA Administrative Order 205-11, dated December 17, 1990, 
the Under Secretary for Oceans and Atmosphere has delegated to the 
Assistant Administrator for Fisheries, NOAA, the authority to sign 
material for publication in the Federal Register.

Changes to the Proposed Rule

    NMFS has made a number of changes to the proposed rule. In section 
660.502, the phrase ``as used in this subpart'' has been removed from 
the definitions for ``owner'' and ``person.'' Also, a definition of 
``prohibited'' ``species'' has been added for clarity. Section 
660.505(f) has been revised to indicate that when fishing for CPS, it 
is unlawful for any individual to fail to return a prohibited species 
to the sea immediately with a minimum of harm. This section has also 
been revised to make it consistent with the language in section 
660.511(e) regarding the immediate release of prohibited species. 
Section 660.506 has been revised to indicate that the only gear 
authorized for use in the reduction fishery for northern anchovy off 
California is round haul nets that have a minimum wet-stretch mesh size 
of 10/16 of an inch (1.59 cm) excluding the bag portion of a purse 
seine. Also, the last sentence that discusses other gear used in the 
CPS fisheries has been deleted. Section 660.512(b) has been revised to 
indicate that a limited entry permit for a vessel will be issued only 
if that vessel landed 100 mt of CPS finfish from January 1, 1993, 
through November 5, 1999. Section 660.512(c) has been revised to 
indicate that a vessel owner applying for issuance, renewal, transfer, 
or registration of a limited entry permit must prove that the 
qualification requirements are met by submitting the specified 
documentation. Section 660.512(g) regarding the process for appealing 
the initial issuance of a permit has been revised to indicate that the 
Sustainable Fisheries Division issues the permit and not the Regional 
Administrator.

Classification

    The Regional Administrator, Southwest Region, NMFS, determined that 
Amendment 8 is necessary for the conservation and management of the 
coastal pelagics fishery and that it is consistent with the Magnuson-
Stevens Act and other applicable laws.
    The Council prepared an FSEIS for Amendment 8. A notice of 
availability for Amendment 8 was published on March 26, 1999 (64 FR 
14720). Amendment 8 contains a framework management process that makes 
it possible for the Council to change and modify management procedures 
in a timely and efficient manner without amending the FMP. The 
framework management process will allow the Council to act quickly to 
address resource conservation and ecological issues. A limited entry 
program will control the expansion of fishing effort. The benefits of 
limited entry are primarily socioeconomic because limited entry 
prevents excess invested capital and reduces the likelihood of 
detrimental environmental effects, as open access fisheries tend to 
reduce efficiency and increase pressure on fishermen to overharvest 
fishery resources. Pacific sardine and Pacific mackerel are designated 
as actively managed, and are subject to species-specific controls. 
Allowable harvest is based on MSY and the importance of each species as 
forage for other fish, marine mammals, and birds. This approach is 
expected to minimize environmental impacts. Northern anchovy, jack 
mackerel, and market squid are designated as monitored species. No 
current biomass estimates are determined for these monitored species, 
although a constant ABC for each species is based on the long-term 
yield of each species. This approach is expected to minimize 
environmental impacts. Although Northern anchovy and jack mackerel may 
be considered underutilized species, increasing the harvest of these 
species will only occur following additional review. Almost nothing is 
known about market squid. However, an aggressive research program is 
underway to define the status of the resource, develop a management 
program, and minimize any possible environmental impacts resulting from 
their harvest.
    The Assistant Administrator for Fisheries, NOAA, for good cause, 
finds under 5 U.S.C. 553(d)(3), that a 30-day delay in effectiveness 
for those provisions of the final rule that authorize processing of 
applications for limited entry permits would be contrary to the public 
interest. Making these provisions effective as of the date of 
publication of this rule will ensure that applicants for limited entry 
permits have sufficient time to submit their applications and have them 
reviewed before the requirement to have permits onboard fishing vessels 
is enforced beginning on January 1, 2000.
    This final rule has been determined to be not significant for the 
purposes of E.O. 12866.
    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration when this rule was proposed, that it 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.
    This final rule contains collection-of-information requirements 
subject to the Paperwork Reduction Act (PRA). The information 
collection for the limited entry permit application has been approved 
by OMB, under OMB control number 0648-0204 for Federal fishing permits. 
The public reporting burden for this requirement is estimated to be 30 
minutes for a limited entry permit application, 30 minutes for 
requesting the transfer of a permit, and 2 hours to prepare a request 
for the appeal of a decision to deny a permit. The additional permit 
qualification documentation and burden of proof is estimated to take 1 
hour per response. These estimates include the time for reviewing 
instructions, searching

[[Page 69893]]

existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information. The requirement 
to affix the official number of the vessel has been approved by OMB 
under OMB control number 0648-0361. The public reporting burden for 
this requirement is estimated to be 45 minutes to affix the official 
number of a vessel to its bow and weather deck. Send comments regarding 
these burden estimates or any other aspect of the data collection, 
including suggestions for reducing the burden, to NMFS (see ADDRESSES) 
and to OMB, Washington, DC 20503 (ATTN: NOAA Desk Officer).
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA unless that collection of information displays 
a currently valid OMB control number.
    Informal consultations under the Endangered Species Act were both 
concluded with NMFS and the U.S. Fish and Wildlife Service on June 10, 
1999. As a result of these informal consultations, the Regional 
Administrator determined that fishing activities conducted under this 
rule are not likely to adversely affect endangered or threatened 
species or critical habitat.
    A second informal consultation was initiated with the Protected 
Resources Division, Southwest Region, regarding the effects of 
Amendment 8 on eight salmon and steelhead evolutionary significant 
units declared as threatened in March 1999. Included in the 
consultation were Coastal California Chinook and Central Valley Spring 
Chinook, which are pending listing as threatened. On September 2, 1999, 
a determination was received declaring that Amendment 8 would not 
likely adversely affect these listed species and those pending listing.

List of Subjects

15 CFR Part 902

    Reporting and recordkeeping requirements.

50 CFR Part 660

    Administrative practice and procedure, American Samoa, Fisheries, 
Fishing, Guam, Hawaiian Natives, Indians, Northern Mariana Islands, 
Reporting and recordkeeping requirements.

    Dated: December 7, 1999.
Penelope D. Dalton,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
    For the reasons set out in the preamble, 15 CFR part 902, and 50 
CFR part 660, are amended as follows:

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. In Sec. 902.1, the table in paragraph (b) is amended by removing 
Sec. 660.505 and its corresponding OMB number-0306 and by adding under 
50 CFR the following entries in numerical order:


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

* * * * *
    (b) * * *

------------------------------------------------------------------------
                                             Current OMB control number
 CFR part or section wherethe information   (all numbers begin with 0648-
     collection requirement is located                    )
------------------------------------------------------------------------
 
                  *        *        *        *        *
50 CFR:
 
                  *        *        *        *        *
660.504                                     -0361
660.512                                     -0204
 
                  *        *        *        *        *
------------------------------------------------------------------------

50 CFR CHAPTER VI

PART 660--FISHERIES OFF WEST COAST STATES AND IN THE WESTERN 
PACIFIC

    1. The authority citation for part 660 continues to read as 
follows:

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


Sec. 660.302  [Amended]

    2. In Sec. 660.302, under the definition of ``Groundfish'' and 
under the term ``Roundfish,'' remove the text ``jack mackerel (north of 
39 deg. N. lat.), Trachurus symmetricus.''
    3. In Sec. 660.337, paragraph (a)(1) is revised to read as follows:


Sec. 660.337  Limited entry permits--''designated species B'' 
endorsement.

    (a) * * *
    (1) General. Designated species means Pacific whiting and 
shortbelly rockfish. Bycatch allowances in fisheries for these species 
will be established using the procedures specified for incidental 
allowances in joint venture and foreign fisheries in the PCGFMP.
* * * * *
    4. Revise Subpart I to read as follows:

Subpart I-Coastal Pelagics Fisheries

Sec.
660.501  Purpose and scope.
660.502  Definitions.
660.503  Management subareas.
660.504  Vessel identification.
660.505  Prohibitions.
660.506  Gear restrictions.
660.507  Closed areas to reduction fishing.
660.508  Annual specifications.
660.509  Closure of directed fishery.
660.510  Fishing seasons.
660.511  Catch restrictions.
660.512  Limited entry fishery.
660.513  Permit conditions.
660.514  Transferability.
660.515  Renewal of limited entry permits.
660.516  Exempted fishing.
660.517  Framework for revising regulations.
Figure  1 to Subpart I-Existing California Area Closures

Subpart I--Coastal Pelagics Fisheries


Sec. 660.501  Purpose and scope.

    This subpart implements the Fishery Management Plan for Coastal 
Pelagic Species (FMP). These regulations govern commercial fishing for 
CPS in the EEZ off the coasts of Washington, Oregon, and California.


Sec. 660.502  Definitions.

    In addition to the definitions in the Magnuson-Stevens Act and in 
Sec. 600.10 of this chapter, the terms used in this subpart have the 
following meanings:
    Actively managed species (AMS) means those CPS for which the 
Secretary has determined that harvest guidelines or quotas are needed 
by Federal management according to the provisions of the FMP.
     Advisory Subpanel (AP) means the Coastal Pelagic Species Advisory 
Subpanel that comprises members of the fishing industry and public 
appointed by the Council to review proposed actions for managing the 
coastal pelagic fisheries.
    Biomass means the estimated amount, by weight, of a coastal pelagic 
species population. The term biomass means total biomass (age 1 and 
above) unless stated otherwise.
     Coastal pelagic species (CPS) means northern anchovy (Engraulis 
mordax), Pacific mackerel (Scomber japonicus), Pacific sardine 
(Sardinops sagax), jack mackerel (Trachurus symmetricus), and market 
squid (Loligo opelescens).
     Coastal Pelagic Species Management Team (CPSMT) means the 
individuals appointed by the Council to review, analyze, and develop 
management measures for the CPS fishery.

[[Page 69894]]

    Council means the Pacific Fishery Management Council, including its 
CPSMT, AP, Scientific and Statistical Committee (SSC), and any other 
committee established by the Council.
    Finfish means northern anchovy, Pacific mackerel, Pacific sardine, 
and jack mackerel.
     Fishery Management Area means the EEZ off the coasts of 
Washington, Oregon, and California between 3 and 200 nautical miles 
offshore, bounded in the north by the Provisional International 
Boundary between the United States and Canada, and bounded in the south 
by the International Boundary between the United States and Mexico.
     Fishing trip means a period of time between landings when fishing 
is conducted.
     Harvest guideline means a specified numerical harvest objective 
that is not a quota. Attainment of a harvest guideline does not require 
complete closure of a fishery.
    Harvesting vessel means a vessel involved in the attempt or actual 
catching, taking or harvesting of fish, or any activity that can 
reasonably be expected to result in the catching, taking or harvesting 
of fish.
    Land or Landing means to begin transfer of fish from a fishing 
vessel. Once transfer begins, all fish onboard the vessel are counted 
as part of the landing.
     Limited entry fishery means the commercial fishery consisting of 
vessels fishing for CPS in the CPS Management Zone under limited entry 
permits issued under Sec. 660.512.
     Live bait fishery means fishing for CPS for use as live bait in 
other fisheries.
    Monitored species (MS) means those CPS the Secretary has determined 
not to need management by harvest guidelines or quotas according to the 
provisions of the FMP.
    Nonreduction fishery means fishing for CPS for use as dead bait or 
for processing for direct human consumption.
    Owner, means a person who is identified as the current owner in the 
Certificate of Documentation (CG-1270) issued by the U.S. Coast Guard 
for a documented vessel, or in a registration certificate issued by a 
state or the U.S. Coast Guard for an undocumented vessel.
    Person, means any individual, corporation, partnership, association 
or other entity (whether or not organized or existing under the laws of 
any state), and any Federal, state, or local government, or any entity 
of any such government that is eligible to own a documented vessel 
under the terms of 46 U.S.C. 12102(a).
    Processing or to process means preparing or packaging coastal 
pelagic species to render the fish suitable for human consumption, pet 
food, industrial uses or long-term storage, including, but not limited 
to, cooking, canning, smoking, salting, drying, filleting, freezing, or 
rendering into meal or oil, but does not mean heading and gutting 
unless there is additional preparation.
    Prohibited Species means all species of trout and salmon 
(Salmonidae) and Pacific halibut (Hippoglossus stenolepis).
     Quota means a specified numerical harvest objective for a single 
species of CPS, the attainment (or expected attainment) of which causes 
the complete closure of the fishery for that species.
    Reduction fishery means fishing for CPS for the purposes of 
conversion into fish flour, fish meal, fish scrap, fertilizer, fish 
oil, other fishery products, or byproducts for purposes other than 
direct human consumption.
     Regional Administrator means the Regional Administrator, Southwest 
Region, NMFS, 501 W. Ocean Boulevard, Suite 4200, Long Beach, CA 90802-
4213, or a designee.
    Reserve means a portion of the harvest guideline or quota set aside 
at the beginning of the year for specific purposes, such as for 
individual harvesting groups to ensure equitable distribution of the 
resource or to allow for uncertainties in preseason estimates of DAP 
and JVP.
    Sustainable Fisheries Division (SFD) means the Assistant Regional 
Administrator for Sustainable Fisheries, Southwest Region, NMFS, or a 
designee.
    Totally lost means that the vessel being replaced no longer exists 
in specie, or is absolutely and irretrievably sunk or otherwise beyond 
the possible control of the owner, or the costs of repair (including 
recovery) would exceed the repaired value of the vessel.
     Trip limit means the total allowable amount of a CPS species by 
weight or by percentage of weight of fish on board the vessel that may 
be taken and retained, possessed, or landed from a single fishing trip 
by a vessel that harvests CPS.


Sec. 660.503  Management subareas.

    The fishery management area is divided into subareas for the 
regulation of fishing for CPS, with the following designations and 
boundaries:
    (a) CPS Limited Entry Zone means the EEZ between:
    (1) Northern boundary--at 39 deg.00'00'' N. lat. off California; 
and
    (2) Southern boundary--the United States-Mexico International 
Boundary, which is a line connecting the following coordinates:
    32 deg.35'22'' N. lat., 117 deg.27'49'' W. long.
    32 deg.37'37'' N. lat., 117 deg.49'31'' W. long.
    31 deg.07'58'' N. lat., 118 deg.36'18'' W. long.
    30 deg.32'31'' N. lat., 121 deg.51'58'' W. long.
    (b) Subarea A means the EEZ between:
    (1) Northern boundary--the United States-Canada Provisional 
International Boundary, which is a line connecting the following 
coordinates:
    48 deg.29'37.19'' N. lat. 124 deg.43'33.19'' W. long.
    48 deg.30'11'' N. lat. 124 deg.47'13'' W. long.
    48 deg.30'22'' N. lat. 124 deg.50'21'' W. long.
    48 deg.30'14'' N. lat. 124 deg.54'52'' W. long.
    48 deg.29'57'' N. lat. 124 deg.59'14'' W. long.
    48 deg.29'44'' N. lat. 125 deg.00'06'' W. long.
    48 deg.28'09'' N. lat. 125 deg.05'47'' W. long.
    48 deg.27'10'' N. lat. 125 deg.08'25'' W. long.
    48 deg.26'47'' N. lat 125 deg.09'12'' W. long.
    48 deg.20'16'' N. lat. 125 deg.22'48'' W. long.
    48 deg.18'22'' N. lat. 125 deg.29'58'' W. long.
    48 deg.11'05'' N. lat. 125 deg.53'48'' W. long.
    47 deg.49'15'' N. lat. 126 deg.40'57'' W. long.
    47 deg.36'47'' N. lat. 127 deg.11'58'' W. long.
    47 deg.22'00'' N. lat. 127 deg.41'23'' W. long.
    46 deg.42'05'' N. lat. 128 deg.51'56'' W. long.
    46 deg.31'47'' N. lat. 129 deg.07'39'' W. long.; and
    (2) Southern boundary--at 35 deg.40'00'' N. lat. (Pt. Piedras 
Blancas).
    (c) Subarea B means the EEZ between:
    (1) Northern boundary--35 deg.40'00'' N. lat. (Pt. Piedras 
Blancas); and
    (2) Southern boundary--the United States-Mexico International 
Boundary described in paragraph (a)(2) of this section.


Sec. 660.504  Vessel identification.

    (a) Official number. Each fishing vessel subject to this subpart 
must display its official number on the port and starboard sides of the 
deckhouse or hull, and on an appropriate weather deck so as to be 
visible from enforcement vessels and aircraft.
    (b) Numerals. The official number must be affixed to each vessel 
subject to this subpart in block Arabic numerals at least 14 inches 
(35.56 cm) in height. Markings must be legible and of a color that 
contrasts with the background.


Sec. 660.505  Prohibitions.

    In addition to the general prohibitions specified in Sec. 600.725 
of this chapter, it is unlawful for any person to do any of the 
following:
    (a) In the CPS Limited Entry Zone, take and retain, possess or land 
more than 5 mt of CPS finfish, other than live bait, on a harvesting 
vessel without a limited entry permit.

[[Page 69895]]

    (b) In the CPS Limited Entry Zone, take and retain, possess or land 
more than 125 mt of CPS finfish on a harvesting vessel.
    (c) Sell CPS without an applicable commercial state fishery 
license.
    (d) Fish in the reduction fishery for CPS in any closed area 
specified in Sec. 660.507.
    (e) Fish in the reduction fishery for northern anchovy using gear 
not authorized under Sec. 660.506.
    (f) When fishing for CPS, fail to return a prohibited species to 
the sea immediately with a minimum of injury.
    (g) Falsify or fail to affix and maintain vessel markings as 
required by Sec. 660.504.
    (h) Fish for CPS in violation of any terms or conditions attached 
to an exempted fishing permit issued under Sec. 600.745 of this 
chapter.
    (i) When a directed fishery has been closed, take and retain, 
possess, or land more than the incidental trip limit announced in the 
Federal Register.
    (j) Refuse to submit fishing gear or fish subject to such person's 
control to inspection by an authorized officer, or to interfere with or 
prevent, by any means, such an inspection.
    (k) Falsify or fail to make and/or file any and all reports of 
fishing, landing, or any other activity involving CPS, containing all 
data, and in the exact manner, required by the applicable State law, as 
specified in Sec. 660.3.
    (l) Fail to carry aboard a vessel that vessel's limited entry 
permit issued under Sec. 660.512 or exempted fishing permit issued 
under Sec. 660.516.
    (m) Make a false statement on an application for issuing, renewing, 
transferring, or replacing a limited entry permit for the CPS fishery.


Sec. 660.506  Gear restrictions.

    The only fishing gear authorized for use in the reduction fishery 
for northern anchovy off California are round haul nets that have a 
minimum wet-stretch mesh size of 10/16 of an inch (1.59 cm) excluding 
the bag portion of a purse seine. The bag portion must be constructed 
as a single unit and must not exceed a rectangular area, adjacent to 20 
percent of the total corkline of the purse seine. Minimum mesh size 
requirements are met if a stainless steel wedge can be passed with only 
thumb pressure through 16 of 20 sets of 2 meshes each of wet mesh. The 
wedges used to measure trawl mesh size are made of 20 gauge stainless 
steel and will be no wider than 10/16 of an inch (1.59 cm) less one 
thickness of the metal at the widest part.


Sec. 660.507  Closed areas to reduction fishing.

    The following areas are closed to reduction fishing:
    (a) Farallon Islands closure (see Figure 1 to this subpart). The 
portion of Subarea A bounded by--
    (1) A straight line joining Pigeon Point Light (37 deg.10.9' N. 
lat., 122 deg.23.6' W. long.) and the U.S. navigation light on 
Southeast Farallon Island (37 deg.42.0' N. lat., 123 deg.00.1' W. 
long.); and
    (2) A straight line joining the U.S. navigation light on Southeast 
Farallon Island (37 deg.42.0' N. lat., 123 deg.00.1' W. long.) and the 
U.S. navigation light on Point Reyes (37 deg.59.7' N. lat., 
123 deg.01.3' W. long.).
    (b) Subarea B closures. Those portions of Subarea B described as-
    (1) Oxnard closure (see Figure 1 to this subpart). The area that 
extends offshore 4 miles from the mainland shore between lines running 
250 deg. true from the steam plant stack at Manadalay Beach 
(34 deg.12.4' N. lat., 119 deg.15.0' W. long.) and 220 deg. true from 
the steam plant stack at Ormond Beach (34 deg.07.8' N. lat., 
119 deg.10.0' W. long.).
    (2) Santa Monica Bay closure (see Figure 1 to this subpart). Santa 
Monica Bay shoreward of that line from Malibu Point (34 deg.01.8' N. 
lat., 188 deg.40.8' W. long.) to Rocky Point (Palos Verdes Point) 
(33 deg.46.5' N. lat., 118 deg.25.7' W. long.).
    (3) Los Angeles Harbor closure (see Figure 1 to this subpart). The 
area outside Los Angeles Harbor described by a line extending 6 miles 
180 deg. true from Point Fermin (33 deg.42.3' N. lat., 118 deg.17.6' W. 
long.) and then to a point located 3 miles offshore on a line 225 deg. 
true from Huntington Beach Pier (33 deg.39.2' N. lat., 118 deg.00.3' W. 
long.).
    (4) Oceanside to San Diego closure (see Figure 1 to this subpart). 
The area 6 miles from the mainland shore south of a line running 
225 deg. true from the tip of the outer breakwater (33 deg.12.4' N. 
lat., 117 deg.24.1' W. long.) of Oceanside Harbor to the United States-
Mexico International Boundary.


Sec. 660.508  Annual specifications.

    (a) The Regional Administrator will determine the harvest 
guidelines or quotas for all AMS from the estimated biomass and the 
formulas in the FMP.
    (b) Harvest guidelines or quotas, including any apportionment 
between the directed fishery and set-aside for incidental harvest, will 
be published in the Federal Register before the beginning of the 
relevant fishing season.
    (c) The announcement of each harvest guideline or quota will 
contain the following information:
    (1) A summary of the status of AMS and MS;
    (2) The estimated biomass on which the harvest guideline or quota 
was determined;
    (3) The portion, if appropriate, of the harvest guideline or quota 
set aside to allow for incidental harvests after closure of the 
directed fishery;
    (4) The estimated level of the incidental trip limit that will be 
allowed after the directed fishery is closed; and
    (5) The allocation, if appropriate, between Subarea A and Subarea 
B.
    (d) Harvest guidelines and quotas will receive a public review 
according to the following procedure:
    (1) A meeting will be held between the Council's CPSMT and AP, 
where the estimated biomass and the harvest guideline or quota will be 
reviewed and public comments received. This meeting will be announced 
in the Federal Register before the date of the meeting, if possible.
    (2) All materials relating to the biomass and harvest guideline or 
quota will be forwarded to the Council and its Scientific and 
Statistical Committee and will be available to the public from the 
Regional Administrator.
    (3) At a regular meeting of the Council, the Council will review 
the estimated biomass and harvest guideline or quota and offer time for 
public comment. If the Council requests a revision, justification must 
be provided.
    (4) The Regional Administrator will review the Council's 
recommendations, justification, and public comments and base his or her 
final decision on the requirements of the FMP.


Sec. 660.509  Closure of directed fishery.

    When the directed fishery portion of the harvest guideline or quota 
is estimated to be taken, the Regional Administrator will announce in 
the Federal Register the date of closure of the directed fishery for 
CPS and the amount of the incidental trip limit that will be allowed.


Sec. 660.510  Fishing seasons.

    All seasons will begin at 0001 hours and terminate at 2400 hours 
local time. Fishing seasons for the following CPS species are:
    (a) Pacific sardine. January 1 to December 31, or until closed 
under Sec. 660.509.
    (b) Pacific mackerel. July 1 to June 30, or until closed under 
Sec. 660.509.


Sec. 660.511  Catch restrictions.

    (a) All CPS harvested shoreward of the outer boundary of the EEZ 
(0-200 nautical miles off shore) will be counted toward the catch 
limitations specified in this section.
    (b) The trip limit for harvesting vessels fishing in the CPS 
Limited Entry

[[Page 69896]]

Zone for CPS other than live bait without a limited entry permit is 5 
mt tons of all CPS finfish combined. 
    (c) The trip limit for vessels with a limited entry permit on a 
fishing trip in which the vessel fishes or lands fish in the Limited 
Entry Zone is 125 mt of all CPS finfish combined.
    (d) After the directed fishery for a CPS is closed under 
Sec. 660.509, no person may take and retain, possess or land more of 
that species than the incidental trip limit set by the Regional 
Administrator.
    (e) While fishing for CPS, all species of trout and salmon 
(Salmonidae) and Pacific halibut (Hippoglossus stenolepis) are 
prohibited species and must be released immediately with a minimum of 
injury.


Sec. 660.512  Limited entry fishery.

    (a) General. (1) This section applies to fishing for or landing CPS 
finfish in the limited entry fishery in the Limited Entry Zone.
    (2) Effective January 1, 2000, the owner of a vessel with more than 
5 mt of CPS finfish on board in the CPS Limited Entry Zone, other than 
live bait, must have a limited entry permit registered for use with 
that vessel.
    (3) Only a person eligible to own a documented vessel under the 
terms of 46 U.S.C. 12102(a) qualifies to be issued or may hold, by 
ownership or otherwise, a limited entry permit.
    (b) Initial qualification. (1) A limited entry permit for a vessel 
will be issued only if that vessel landed 100 mt of CPS finfish from 
January 1, 1993, through November 5, 1997.
    (2) A limited entry permit will be issued only to the current owner 
of the vessel, unless:
    (i) The previous owner of a vessel qualifying for a permit, by the 
express terms of a written contract, reserved the right to the limited 
entry permit, in which case the limited entry permit will be issued to 
the previous owner based on the catch history of the qualifying vessel, 
or
    (ii) A vessel that would have qualified for a limited entry permit 
was totally lost prior to issuance of a limited entry permit. In this 
case, the owner of the vessel at the time it was lost retains the right 
to a permit for a replacement vessel, unless the owner conveyed the 
right to another person by the express terms of a written contract. The 
lost vessel must be replaced within 2 years of the date that the 
qualifying vessel was lost, and the replaced vessel must be of equal or 
less net tonnage.
    (c) Documentation and burden of proof. A vessel owner (or person 
holding limited entry rights under the express terms of a written 
contract as specified in paragraph (a)(2)) of this section applying for 
issuance, renewal, transfer, or registration of a limited entry permit 
must prove that the qualification requirements are met by submitting 
the following documentation:
    (1) A certified copy of the vessel's documentation as a fishing 
vessel of the United States (U.S. Coast Guard or state) is the best 
evidence of vessel ownership;
    (2) A certified copy of a state fish landing receipt is the best 
evidence of a landing of a vessel;
    (3) A copy of a written contract reserving or conveying limited 
entry rights is the best evidence of reserved or acquired rights; and
    (4) Other relevant, credible evidence that the applicant may wish 
to submit or that the SFD may request or require.
    (d) Fees. The Regional Administrator may charge fees to cover 
administrative expenses related to issuing limited entry permits, as 
well as renewing, transferring, and replacing permits. The amount of 
the fee is calculated in accordance with the procedures of the NOAA 
Finance Handbook for determining the administrative costs of each 
special product or service. The fee may not exceed such costs and is 
specified with each application form. The appropriate fee must 
accompany each application.
    (e) Initial decisions. (1) The SFD will make initial decisions 
regarding issuing, renewing, transferring, and registering limited 
entry permits.
    (2) Adverse decisions shall be in writing and shall state the 
reasons for the adverse decision.
    (3) The SFD may decline to act on an application for issuing, 
renewing, transferring, or registering a limited entry permit and will 
notify the applicant, if the permit sanction provisions of the 
Magnuson-Stevens Act at 16 U.S.C. 1858(a) and implementing regulations 
at 15 CFR part 904, subpart D, apply.
    (f) Initial issuance. (1) The SFD will issue limited entry permits.
    (2) In order to receive a final decision on a limited entry permit 
application before January 1, 2000, an applicant must submit the 
application to the SFD on or before February 14, 2000.
    (3) A separate, complete, and accurate application form, 
accompanied by any required supporting documentation and the 
appropriate fee, must be submitted for each vessel for which a limited 
entry permit is sought.
    (4) Upon receipt of an incomplete or improperly executed 
application, the SFD will notify the applicant of the deficiency. If 
the applicant fails to correct the deficiency within 30 days following 
the date of notification, the application will be considered void.
    (5) The SFD may request further documentation before acting on an 
application.
    (6) The SFD will not accept applications for a limited entry permit 
after July 1, 2000.
    (g) Appeals. (1) Any applicant for an initial permit may appeal the 
initial issuance decision to the Regional Administrator. To be 
considered by the Regional Administrator, such appeal must be in 
writing and state the reasons for the appeal, and must be submitted 
within 30 days of the action by the Regional Administrator. The 
appellant may request an informal hearing on the appeal.
    (2) Upon receipt of an appeal authorized by this section, the 
Regional Administrator will notify the permit applicant, or permit 
holder as appropriate, and will request such additional information and 
in such form as will allow action upon the appeal.
    (3) Upon receipt of sufficient information, the Regional 
Administrator will decide the appeal in accordance with the permit 
eligibility criteria set forth in this section and in the FMP, as 
appropriate, based upon information relative to the application on file 
at NMFS and the Council and any additional information submitted to or 
obtained by the Regional Administrator, the summary record kept of any 
hearing and the hearing officer's recommended decision, if any, and 
such other considerations as the Regional Administrator deems 
appropriate. The Regional Administrator will notify all interested 
persons of the decision, and the reasons therefor, in writing, normally 
within 30 days of the receipt of sufficient information, unless 
additional time is needed for a hearing.
    (4) If a hearing is requested or if the Regional Administrator 
determines that one is appropriate, the Regional Administrator may 
grant an informal hearing before a hearing officer designated for that 
purpose after first giving notice of the time, place, and subject 
matter of the hearing to the applicant. The appellant and, at the 
discretion of the hearing officer, other interested persons may appear 
personally or be represented by counsel at the hearing and submit 
information and present arguments as determined appropriate by the 
hearing officer. Within 30 days of the last day of the hearing, the 
hearing officer shall recommend in writing a decision to the Regional 
Administrator.
    (5) The Regional Administrator may adopt the hearing officer's

[[Page 69897]]

recommended decision, in whole or in part, or may reject or modify it. 
In any event, the Regional Administrator will notify interested persons 
of the decision, and the reason(s) therefore, in writing, within 30 
days of receipt of the hearing officer's recommended decision. The 
Regional Administrator's action shall constitute final action for the 
agency for the purposes of the APA.
    (6) Any time limit prescribed in this section may be extended for a 
period not to exceed 30 days by the Regional Administrator for good 
cause, either upon his or her own motion or upon written request from 
the appellant stating the reason(s) therefore.


Sec. 660.513  Permit conditions.

    (a) A limited entry permit expires on failure to renew the limited 
entry permit as specified in Sec. 660.515.
    (b) A limited entry permit may not be used with a vessel unless it 
is registered for use with that vessel. Limited entry permits will be 
registered for use with a particular vessel at the time the permit is 
issued, renewed, or transferred.
    (c) Limited entry permits issued or applied for under this subpart 
are subject to sanctions pursuant to the Magnuson-Stevens Act, 16 
U.S.C. 1858(g), and 15 CFR part 904, subpart D.


Sec. 660.514  Transferability.

    (a) Upon application by the permit holder, the SFD will process 
applications for transferring limited entry permits according to this 
section.
    (b) Before January 1, 2001, a limited entry permit may be 
transferred to a different owner and/or for use with a different 
vessel. The permit may be transferred only once. No transfer is 
effective until the permit has been reissued and is in the possession 
of the new permit holder.
    (c) After December 31, 2000, a permit may not be registered for use 
with a vessel other than the vessel for which it was registered on 
December 31, 2000, except as follows:
    (1) The vessel to which the permit was registered on December 31, 
2000 (the replaced vessel), is totally lost, stolen, or scrapped, such 
that it cannot be used in a federally regulated commercial fishery, and
    (2) The replacement vessel to which the permit will be registered 
is of equal or less net tonnage than the replaced vessel, and
    (3) The replaced vessel is owned by the permit holder.
    (d) After December 31, 2000, a limited entry permit may not be 
transferred to a different owner.


Sec. 660.515  Renewal of limited entry permits.

    (a) Each limited entry permit must be renewed by January 1 of even 
numbered years.
    (b) The SFD will send notices to renew limited entry permits to the 
most recent address of the permit holder.
    (c) The permit owner must provide SFD with notice of any address 
change within 15 days of the change.
    (d) The permit holder must submit applications for renewal of a 
permit on forms available from the SFD.
    (e) The permit owner is responsible for renewing a limited entry 
permit.
    (f) An expired permit cannot be used to fish for CPS in the limited 
entry fishery.


Sec. 660.516  Exempted fishing.

    (a) General. In the interest of developing an efficient and 
productive fishery for CPS, the Regional Administrator may issue 
exempted fishing permits (EFP) for the harvest of CPS that otherwise 
would be prohibited.
    (b) No exempted fishing for CPS may be conducted unless authorized 
by an EFP issued for the participating vessel in accordance with the 
criteria and procedures specified in Sec. 600.745 of this chapter.


Sec. 660.517  Framework for revising regulations.

    (a) General. NMFS will establish and adjust specifications and 
management measures in accordance with procedures and standards in 
Amendment 8 to the FMP.
    (b) Annual actions. Annual specifications are developed and 
implemented according to Sec. 660.508.
    (c) Routine management measures. Consistent with section. 2.1 of 
Amendment 8 to the FMP, management measures designated as routine may 
be adjusted during the year after recommendation from the Council, 
approval by NMFS, and publication in the Federal Register.
    (d) Changes to the regulations. Regulations under this subpart may 
be promulgated, removed, or revised. Any such action will be made 
according to the framework measures in section 2 of Amendment 8 to the 
FMP and will be published in the Federal Register.
    Figure 1 to Part 660, Subpart I--Existing California Area Closures 
(hatched areas extend to 3 miles offshore; cross-hatched areas extend 
beyond 3 miles offshore) and optional Catalina Channel foreign vessel 
closure (outlined by dashed lines)

BILLING CODE 3510-22-F

[[Page 69898]]

[GRAPHIC] [TIFF OMITTED] TR15DE99.000



[FR Doc. 99-32320 Filed 12-14-99; 8:45 am]
BILLING CODE 3510-22-C