[Federal Register Volume 66, Number 62 (Friday, March 30, 2001)]
[Proposed Rules]
[Pages 17397-17403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-7941]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 010228052-1052-01; I.D. 010301D]
RIN 0648-AL95


Fisheries of the Exclusive Economic Zone Off Alaska; Amendments 
to Alaska Groundfish and Crab Fishery Management Plans to Revise the 
License Limitation Program

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

ACTION: Proposed rule.

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SUMMARY: NMFS issues a proposed rule to implement Amendment 60 to the 
Fishery Management Plan (FMP) for the Groundfish Fishery of the Bering 
Sea and Aleutian Islands Area, Amendment 58 to the FMP for Groundfish 
of the Gulf of Alaska, and Amendment 10 to the FMP for the Commercial 
King and Tanner Crab Fisheries in the Bering Sea and the Aleutian 
Islands. This proposed rule would implement changes to the License 
Limitation Program (LLP) that would be made by these Amendments and is 
intended to further the objectives of the Magnuson-Stevens Fishery 
Conservation and Management Act (Magnuson-Stevens Act) and the affected 
FMPs.

DATES: Comments must be received by April 30, 2001.

ADDRESSES: Comments may be mailed to Sue Salveson, Assistant Regional 
Administrator, Sustainable Fisheries Division, Alaska Region, NMFS, 
P.O. Box 21668, Juneau, AK 99802-1668, Attn: Lori Gravel. Hand delivery 
or courier delivery of comments may be sent to the Federal Building, 
709 West 9th Street, Room 453, Juneau, AK 99801. Comments submitted via 
e-mail or the Internet will not be accepted. Copies of the draft 
environmental assessment/regulatory impact review/initial regulatory 
flexibility analysis (EA/RIR/IRFA) are available from the North Pacific 
Fishery Management Council, 605 West 4th Avenue, Suite 306, Anchorage, 
AK 99501-2252; telephone 907-271-2809.

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

SUPPLEMENTARY INFORMATION:

Background

    The North Pacific Fishery Management Council (Council) recommended, 
and NMFS approved, the LLP to address concerns of excess capital and 
capacity in the groundfish and crab fisheries off Alaska. The LLP is 
one stage of a multi-staged process to reduce capacity and capital in 
the affected fisheries. The LLP replaced the Vessel Moratorium Program 
(VMP), a program implemented by NMFS to impose a temporary moratorium 
on the entry of new capacity in the groundfish and crab fisheries off 
Alaska and to help define the class of entities that would be eligible 
for licenses under the LLP. The VMP expired on December 31, 1999, and 
fishing under the LLP began on January 1, 2000 (63 FR 52642, October 1, 
1998). The final rule establishing the application and transfer 
processes for the LLP was published August 6, 1999 (64 FR 42826). In 
October 1998, the Council recommended several changes to the LLP. These 
changes, which are embodied in Amendment 60 to the FMP for the 
Groundfish Fishery of the Bering Sea and Aleutian Islands Area 
(Amendment 60), Amendment 58 to the FMP for Groundfish of the Gulf of 
Alaska (Amendment 58), and Amendment 10 to the FMP for the Commercial 
King and Tanner Crab Fisheries in the Bering Sea and Aleutian Islands 
(Amendment 10), are outlined below.

Proposed Changes to the LLP Qualifying Criteria

    A. Amendment 10 would add a recent participation requirement to the 
eligibility requirements for a crab species license.
    The Council recommended that a recent participation requirement be 
added to the eligibility requirements for a crab species license. Under 
the current LLP, a person applying for a crab species license must 
demonstrate that documented harvests were made from a qualifying vessel 
during two periods, the general qualification period (GQP) and the 
endorsement qualification period (EQP). The current documented harvest 
requirements for the two periods are as follows.
    GQP: One documented harvest of any amount of crab species during 
the period beginning January 1, 1988, through June 27, 1992, or, if a 
legal landing of moratorium groundfish species was made from a vessel 
during the period beginning January 1, 1988, through February 9, 1992, 
and a legal landing of moratorium crab species was made from that 
vessel during the period beginning February 10, 1992, through December 
11, 1994, one documented harvest of any amount of crab species during 
the period beginning January 1, 1988, through December 31, 1994.
    EQP: Documented harvests during the EQP must be of the same crab 
species and in the same area as the endorsement.
    1. Bering Sea and Aleutian Islands Area C. opilio and C. bairdi 
(Tanner crab): Three documented harvests of any amount during the 
period beginning January 1, 1992, through December 31, 1994.
    2. Aleutian Islands brown king crab: Three documented harvests of 
any amount during the period beginning January 1, 1992, through 
December 31, 1994.
    3. Aleutian Islands red king crab: One documented harvest of any 
amount during the period beginning January 1, 1992, through December 
31, 1994.
    4. Bristol Bay red king crab: One documented harvest of any amount 
during the period beginning January 1, 1991, through December 31, 1994.
    5. Pribilof red king crab and Pribilof blue king crab: One 
documented harvest of any amount during the period beginning January 1, 
1993, through December 31, 1994.
    6. St. Matthew blue king crab: One documented harvest of any amount 
during the period beginning January 1, 1992, through December 31, 1994.
    7. Norton Sound red king crab and Norton Sound blue king crab: One 
documented harvest of any amount during the period beginning January 1, 
1993, through December 31, 1994.
    In accordance with Amendment 10, this proposed rule would add a 
third period, the recent participation period (RPP), to the documented 
harvest requirements for crab. Under the RPP, a person applying for a 
crab species license would have to demonstrate that one documented 
harvest of any amount of crab species was made from a qualifying vessel 
during the period extending from January 1, 1996, through February 7, 
1998. The additional eligibility requirements of the RPP are proposed 
as a means of reducing the number of crab species licenses that might 
otherwise be issued to persons who have been inactive in the crab

[[Page 17398]]

fishery since 1995. Licenses given to such inactive fishermen could be 
transferred to persons who would become active in the fishery. This 
result would be contrary to the purpose of the LLP because it would 
likely increase fishing effort above the current levels in the crab 
fisheries.
    The Council recommended that exemptions from the requirements of 
the RPP be provided based on public testimony and in consideration of 
the impacts the RPP would have on small fishing operations. The 
following exemptions are proposed:
    Exemption 1: A person who only qualifies for a Norton Sound red 
king crab and Norton Sound blue king crab endorsement would not have to 
meet the documented harvest requirements of the RPP.
    Exemption 2: A person whose qualifying vessel is less than 60 ft 
(18.3 m) LOA would not have to meet the documented harvest requirements 
of the RPP.
    Exemption 3: A person whose qualifying vessel was unable to meet 
the documented harvest requirements of the RPP because it was lost or 
destroyed during the RPP period, but which made a documented harvest of 
crab species during the period beginning after the vessel was lost or 
destroyed through January 1, 2000, would not have to meet the 
documented harvest requirements of the RPP.
    Exemption 4: A person who can demonstrate that his or her vessel 
made a documented harvest of crab species during the period beginning 
January 1, 1998, through February 7, 1998, and who obtains the fishing 
history of a vessel that meets the GQP and the EQP, or enters into a 
contract to obtain the fishing history of a vessel that meets the GQP 
and the EQP, by 8:36 am PST on October 10, 1998, would not have to meet 
the requirement of having a complete fishing history for qualification.
    B. Amendments 60 and 58 would impose a transfer restriction on a 
groundfish LLP license earned from a vessel that did not have a Federal 
Fisheries Permit (FFP).
    This proposed rule would implement Amendments 60 and 58 by imposing 
a transfer restriction on a groundfish LLP license that was earned from 
a vessel that did not have an FFP prior to October 9, 1998. Under this 
transfer restriction, the groundfish LLP license and the vessel from 
which the license was earned would have to be transferred together. In 
other words, this type of groundfish LLP license could not be 
transferred separately from the vessel, but could only be used by, and 
would have to be onboard, the original qualifying vessel.
    Two exceptions to this transfer restriction are proposed. First, if 
the transfer of the fishing history of a vessel that did not have an 
FFP occurred before February 7, 1998, transfer of the qualifying vessel 
would not have to accompany transfer of the license; the license could 
be transferred separately from the vessel, but future transfers of the 
license would have to be accompanied by transfer of the ``new'' vessel. 
Second, a vessel that is subject to this provision but that is lost or 
destroyed could be replaced under the general vessel replacement 
provisions of the LLP.
    Concerns of excess capacity in the affected fisheries again 
influenced the Council to make these recommendations. In considering 
the impacts these recommendations would have on license recipients, the 
Council justified the recommendations based on the fact that an FFP was 
required for any vessel that participated in a Federal groundfish 
fishery off Alaska. A vessel that participated in a Federal groundfish 
fishery off Alaska without an FFP did so illegally. If a vessel did not 
participate in a Federal groundfish fishery off Alaska, its qualifying 
documented harvests must have occurred in waters of the State of Alaska 
or other waters shoreward of the exclusive economic zone (EEZ) off 
Alaska. Groundfish fisheries in State waters or other waters shoreward 
of the EEZ off Alaska will not be managed under the LLP; therefore, the 
fishing operations of these vessels would not be affected. Hence, the 
Council did not consider it a hardship to the license recipient to 
directly link the transfer of a license to the vessel.
    C. Amendments 60 and 58 would add gear designations to the 
groundfish license.
    The Council recommended that a gear designation be added to a 
groundfish license. The gear designation is intended to prevent 
movement between the trawl sector and the non-trawl sector, and thus 
more effectively limit participation within a gear sector's fishery to 
those more historically dependent on the fishery. Under this provision, 
a license would be issued a ``trawl,'' ``non-trawl,'' or ``trawl/non-
trawl '' gear designation based on gear participation before June 17, 
1995. If, for example, a person used trawl gear and longline gear 
before June 17, 1995, the license issued to that person would have a 
trawl/non-trawl gear designation. This designation would mean that the 
license holder could use trawl and non-trawl gear. However, if a person 
only used trawl gear prior to June 17, 1995, the license issued to that 
person would have a trawl gear designation. This designation would mean 
that the license holder could only use trawl gear.
    Two exceptions to the general rule on gear designations are 
proposed to account for recent activity. Under the first exception, a 
person could exercise a one-time option to switch gear designations if 
that person used a different gear type between June 18, 1995, and 
February 7, 1998. For example, a person used only trawl gear before 
June 17, 1995, but in 1997 used pot gear to catch Pacific cod. The use 
of this non-trawl gear type in 1997 would allow the person to exercise 
a one-time option to change the gear designation from trawl gear to 
non-trawl gear. A person could not qualify for a trawl/non-trawl gear 
designation by use of this exception.
    Under the second exception, a person could request a gear 
designation change based on a significant financial investment. To 
qualify under the second exception a person would have to (1) 
demonstrate that a significant financial investment was made in 
converting a vessel and/or purchasing fishing gear on or before 
February 7, 1998, and (2) demonstrate that a documented harvest was 
made from the qualifying vessel with the new gear type on or before 
December 31, 1998. A significant financial investment is defined on the 
basis of industry testimony before the Council as having spent at least 
$100,000 toward vessel conversion and/or gear to change from a non-
trawl to a trawl gear designation, or having acquired groundline, hooks 
or pots, and hauling equipment for prosecuting a fixed gear fishery to 
change from a trawl to a non-trawl gear designation.
    D. Amendments 60 and 58 would limit the Community Development Quota 
(CDQ) vessel exemption.
    An exemption to LLP licensing requirements for specific CDQ vessels 
is included in the LLP regulations at 50 CFR 679.4(k)(2)(iv). This 
exemption, similar to the one provided in the VMP, was intended to 
facilitate the ability of CDQ organizations to enter and prosecute 
groundfish fisheries with newly constructed vessels that did not 
qualify under the LLP. However, concerns over excess capacity in the 
groundfish fisheries, and acknowledgment that CDQ organizations are 
integrating into the existing fishing industry at a reasonable pace, 
induced the Council to recommend limiting the exemption. Further 
support for limiting this provision came from public testimony that CDQ 
organizations did not use this exemption under the VMP. The Council

[[Page 17399]]

recommended that the exemption be limited to vessels that met the CDQ 
vessel exemption criteria between November 18, 1992, and October 9, 
1998, the date the Council recommended the limitation. Allowing CDQ 
vessels to qualify for this exemption through October 9, 1998, would 
ensure that the investment-backed expectations of any CDQ organization, 
which may have decided to use this exemption prior to the Council's 
decision to limit the provision, are protected.
    E. Amendments 60 and 58 would allow limited processing by a person 
who holds a license with a catcher vessel designation.
    The LLP currently separates licenses into two distinct processing 
designations: a catcher vessel designation, under which no fish can be 
processed, and a catcher/processor designation, under which fish can be 
processed. The Council, through public testimony, was presented with 
two reasons why some relief should be granted under these strict 
category distinctions.
    First, public testimony indicated that an opportunity should be 
provided for entry into processing. Second, public testimony indicated 
that if limited processing opportunities were allowed, some catcher 
vessels would be able to exploit ``niche markets,'' which are small, 
specialized markets, such as a local grocery store or a restaurant to 
whom a fisherman sells frozen products directly. For these reasons, the 
Council recommended a limited processing exception. For the purpose of 
this exception, this proposed rule would define limited processing as 1 
metric ton (mt) of round fish per day harvested on a vessel that is 
less than 60 ft (18.3 m) LOA under a groundfish license with a catcher 
vessel designation.
    F. Amendments 60, 58, and 10 would add the vessel name to 
groundfish and crab species licenses.
    This proposed rule would require that the name of the vessel be 
specified on an LLP license for groundfish and crab. This change was 
recommended as a regulatory amendment by the Council to address 
concerns about the movement of license holders among vessels 
contributing to excess capacity in the fisheries. Under current LLP 
regulations, a license issued under the LLP is not directly linked to a 
particular vessel. A license holder is able to use any vessel to fish 
for license limitation groundfish or crab species if that vessel 
complies with length restrictions. This ability may contribute to 
excess capacity by allowing a license holder to use a second vessel to 
fish while the first vessel was in port, or by allowing a license 
holder to alternate between vessels in different fisheries in different 
geographical locations. In both cases, a license holder could engage in 
uninterrupted fishing because breaks in fishing activity for unloading, 
vessel repairs, or running time could be eliminated through the use of 
another vessel.
    To further refine the goal of the LLP to reduce excess capacity, 
the Council recommended that a specific vessel be designated on a 
groundfish or crab species license. A license holder would be 
authorized to use only the vessel designated on the license. A change 
to the vessel designated on the license would require agency action and 
would be counted toward the limit of one license transfer per calendar 
year.

Clarification of a Complete Fishing History for License Eligibility

    The LLP is designed to place an upper limit on the amount of 
capitalization that can occur in the groundfish and crab fisheries. In 
doing so, the LLP also identifies the field of participants and 
provides stability during the development of a more comprehensive 
solution for conservation and management of the affected fisheries. One 
of the design features that assists in providing stability is the 
provision that allows the fishing history of a vessel to be transferred 
prior to license issuance. This provision protects the investment-
backed expectations of a person who purchased a fishing history to meet 
the eligibility requirements for a license under the LLP. Although the 
LLP provides for these transfers, eligibility for a license under the 
LLP cannot currently occur by ``piecing together'' the fishing 
histories from two or more vessels, except under a specific provision 
of the LLP explained here.
    The following explains what is meant by a complete fishing history 
for license eligibility and how NMFS intends to implement the Council's 
intent. The fishing history of a vessel that can be used as the basis 
for eligibility for a license under the LLP remains with the vessel 
until either (1) June 17, 1995, when it vests with the vessel owner, or 
(2) it is separated by the express terms of a written contract that 
clearly and unambiguously indicates that the fishing history is 
transferred or retained. The Council chose June 17, 1995, as the 
determining date because it coincides with the date the Council 
recommended the LLP.
    Until June 17, 1995, the fishing history remains with the vessel 
unless separated by a contract. This contract could transfer the 
fishing history to a person other than the vessel owner. However, the 
fishing history would not qualify the receiver of it for a license 
unless that fishing history meets all the requirements for eligibility. 
Alternatively, this contract could retain the fishing history in the 
person who is selling his or her vessel before June 17, 1995. Again, 
this fishing history would not qualify the retainer of it for a license 
unless the fishing history meets all the requirements for eligibility. 
In either case, the contract has separated the fishing history from the 
vessel.
    On June 17, 1995, the fishing history of the vessel, unless already 
separated by contract, vests in the vessel owner. After June 17, 1995, 
the vessel owner can transfer that fishing history by contract. A 
vessel sold after June 17, 1995, does not have a fishing history to use 
as the basis for license eligibility because its fishing history has 
vested in the owner and would have to be obtained through the express 
terms of a written contract.
    A partial fishing history (i.e., a fishing history that does not 
meet all of the eligibility criteria) generally cannot be joined with 
another partial fishing history to form a complete one. However, there 
is one exception, which applies to eligibility for a crab license. The 
Council provided that a person who can demonstrate that a documented 
harvest of crab species was made from his or her vessel during the 
period beginning January 1, 1998, through February 7, 1998, can join 
that fishing history with another fishing history from a vessel that 
meets the GQP and the EQP, as long as the fishing history that meets 
the GQP and the EQP was acquired, or a contract to acquire that fishing 
history was entered into, by 8:36 am PST on October 10, 1998. Other 
than this specific exception, the fishing history of one vessel cannot 
be joined with the fishing history of another vessel to achieve 
eligibility.
    In addition, a person cannot retain the partial fishing history of 
one vessel, move to another vessel, and continue the fishing history. 
The Council specifically provided for vessels that were lost or 
destroyed before a fishing history was completed. One provision was 
described above as Exception 3. The other provision, called the 
``unavoidable circumstances provision,'' also provides a means for 
achieving eligibility although the fishing history of a vessel is not 
complete. The details of the unavoidable circumstances provision were 
published in the LLP final rule (63 FR 52642, October 1, 1998).
    In summary, a person must have a complete fishing history, which 
must

[[Page 17400]]

have been created on a single vessel, with two exceptions. The first 
exception is for crab licenses. A person can combine a documented 
harvest of crab species that occurred during the period beginning 
January 1, 1998, through February 7, 1998, with the fishing history of 
another vessel that meets the requirements of the GQP and the EQP (see 
Exception 4 above). The second exception applies to lost or destroyed 
vessels. Two different provisions implement this exception, the 
unavoidable circumstances provision for missing documented harvests 
during the EQP, and Exception 3 for missing documented harvests of crab 
species during the RPP.

Application Process

    Should the Secretary of Commerce approve Amendments 60, 58, and 10, 
once a final rule has been published NMFS' Restricted Access Management 
Program (RAM) would implement the application process as follows. Each 
LLP license holder would be notified of the status of his or her 
license. License holders for whom RAM has no evidence of qualifications 
under the crab recent participation qualifications would be informed 
that they have 60 days to establish such qualifications or lose their 
license. RAM would request those license holders who qualify to 
designate the vessel upon which the license is to be used. License 
holders whose qualifying harvests were made outside of the EEZ (e.g., 
in Alaska State fisheries) would have their licenses re-endorsed with 
the name of a qualifying vessel inseparable from the license. As 
necessary, RAM would add gear designations to the licenses.
    License holders would have 60 days to respond to RAM's 
determinations and would have the right to appeal a determination to 
the NMFS/Alaska Region Office of Administrative Appeals.

Other Changes Included in This Proposed Rule

    The definition of ``Person'' would be changed so that it applies 
generally to all fishery management programs, including the LLP. This 
change does not affect the meaning of the definition.
    Several paragraphs of the LLP regulations would be revised to 
eliminate the word ``State'' when referring to waters shoreward of the 
EEZ off Alaska. The word ``State'' was eliminated because including 
that word excluded from the LLP several areas shoreward of the EEZ off 
Alaska that are not State waters. These areas include the waters 
adjacent to the Metlakatla Indian Reservation and Federal areas 
reserved off Kodiak Island and Nunivak Island.
    A new prohibition would be added specifying that a person cannot 
use a vessel, or allow a vessel to be used, to fish for license 
limitation groundfish or crab species, other than the vessel named on 
the license. This prohibition gives effect to the Council's 
recommendation to require that a specific vessel must be named on the 
license.
    The eligibility requirements for a Western Gulf area endorsement 
for vessel length category ``A'' in Sec. 679.4(k)(4)(ii)(C)(1) would be 
corrected to require one documented harvest in each of any 2 calendar 
years during the period beginning January 1, 1992, through June 17, 
1995. This correction makes the requirement for a Western Gulf area 
endorsement for vessel length category ``A'' consistent with the 
Council motion passed in June 1995.

Comments Requested

    The Council has submitted Amendments 60, 58, and 10 for Secretarial 
review, and a notice of availability of the amendments was published 
January 17, 2001 (66 FR 3976), with comments on the amendments invited 
through March 19, 2001. Comments received before the end of the comment 
period for this proposed rule, will not be considered in the approval/
disapproval decision of the amendments, but will be considered in 
context of this proposed rule. The preamble of the final rule will 
contain a summary of the comments received both on the amendments and 
on the proposed rule. Copies of Amendments 60, 58, and 10 are available 
upon request (see ADDRESSES).

Classification

    This proposed rule has been determined to be not significant for 
purposes of E.O. 12866.
    At this time, NMFS has not determined that Amendments 60, 58, and 
10 that this proposed rule would implement are consistent with the 
national standards of the Magnuson-Stevens Act and other applicable 
laws. NMFS, in making that determination, will take into account the 
data, views, and comments received during the comment period.
    The Council prepared an EA for Amendments 60, 58, and 10 that 
discusses the impact on the environment as a result of this rule. The 
analysis indicates that the individual impacts of the proposed changes, 
and the cumulative impacts of the all the changes, would have a 
negligible affect on the quality of the human environment. Most 
proposed changes in this proposed rule either limit participants, or 
their participation, as compared to the status quo. Allowing limited 
processing by catcher vessels is not expected to impact the fisheries 
stock, the physical environment, or non-target species. A copy of the 
EA is available from NMFS (see ADDRESSES).
    An IRFA was prepared that describes the impact this proposed rule, 
if adopted, would have on small entities. The analysis concludes that 
most persons affected by the proposed actions are small entities given 
their expected annual gross revenues are less that $3 million or are 
assumed to be small entities because of insufficient annual receipts 
data. However, the ownership characteristics of vessels operating in 
the fishery have not been analyzed to determine if they are 
independently owned and operated or affiliated with a larger parent 
company due to insufficient data.
    The proposed limitation on the transfer of licenses earned on an 
estimated 447 vessels that never held a Federal Fisheries Permit is 
intended to limit the potential for increasing fishing effort in the 
EEZ off Alaska, while allowing small vessels to continue to operate in 
both State and Federal waters. A person who did not obtain a Federal 
Fisheries Permit must have fished in the EEZ only incidentally and this 
action would not affect the ability of such a person to fish in State 
waters.
    The proposed requirement to add gear endorsements to Alaska 
groundfish licenses is intended to restrict movement between trawl and 
non-trawl sectors. Council is concerned about excess capital and 
capacity in the fisheries. The estimated 2,435 affected license 
recipients are assumed to be small entities. A person's gear 
endorsement would be based on a history of past participation. A 
provision is proposed to allow a person to designate a gear type 
different from the one for which that person qualified, if certain 
criteria are met.
    The exception for CDQ vessels was provided originally to assist the 
six CDQ organizations to enter the groundfish fisheries. This exception 
is not being used and is unnecessary because of business partnerships 
and specific allocations. A provision is proposed that would exempt any 
vessel from the license requirements of the LLP if a vessel took 
advantage of the exception prior to October 9, 1998.
    The proposed addition of a recent participation requirement for 
eligibility for an estimated 93 crab license recipients, who are 
assumed to be small entities, addresses the Council's

[[Page 17401]]

concerns that reactivation of latent or unused capacity through 
transfers would further contribute to excess capacity in the crab 
fishery. This proposed action is consistent with the intent of the AFA 
to remove latent capacity in this fishery.
    The proposal to allow an estimated 1,902 catcher vessels under 60 
ft (18.3 m) LOA to process fish on a limited basis (i.e., 1 mt of round 
fish per day) would provide increased flexibility for small entities to 
take advantage of specialized markets and to use certain species of 
fish that spoil more rapidly than others.
    The Council considered and adopted several measures to reduce the 
impacts on small entities. Rather than disqualifying license recipients 
who did not have a Federal Fisheries Permit, licenses with limited 
transferability would be issued to such recipients. A provision would 
be added to allow a recipient to designate a gear type different from 
the one for which that license recipient qualified, if meeting certain 
criteria. Rescinding the CDQ vessel exemption would have no impact on 
CDQ groups that have not used the CDQ exemption and a provision was 
added to protect any existing CDQ group from being disadvantaged. In 
considering the impact on small entities of a recent participation 
requirement, the Council recommended a period (January 1, 1996-February 
7, 1998) that reduced the estimated number of affected small entities 
from 365 to 272.

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: March 26, 2001.
William T. Hogarth,
Acting Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

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

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

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

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

    2. In Sec.  679.2, the definition for ``Person'' is revised to read 
as follows:


Sec.  679.2  Definitions.

* * * * *
    Person means any individual who is a citizen of the United States, 
or any corporation, partnership, association, or other entity (or its 
successor-in-interest), regardless of whether organized or existing 
under the laws of any state, who is a U.S. citizen, except for purposes 
of High Seas Salmon Fishery permits issued under Sec.  679.4(h), in 
which case the term ``person'' excludes any nonhuman entity.

    3. In Sec.  679.4, paragraphs (k)(2)(iv), (k)(3)(i), (k)(4)(i)(A), 
(k)(4)(i)(B), (k)(4)(ii), (k)(4)(iv)(A) introductory text, 
(k)(4)(iv)(B), (k)(4)(v)(A), (k)(4)(v)(B), and (k)(5)(ii) introductory 
text are revised and paragraphs (k)(3)(ii)(D), (k)(3)(iv), (k)(5)(iii), 
and (k)(5)(iv) are added to read as follows:


Sec.  679.4  Permits.

* * * * *
    (k) * * *
    (2) * * *
    (iv) A catcher vessel or catcher/processor vessel that does not 
exceed 125 ft (38.1 m) LOA, and during the period after November 18, 
1992, through October 9, 1998, was specifically constructed for and 
used exclusively in accordance with a CDP approved by NMFS, and is 
designed and equipped to meet specific needs that are described in the 
CDP may conduct directed fishing for license limitation groundfish in 
the GOA and in the BSAI area without a groundfish license and for crab 
species in the Bering Sea and Aleutian Islands Area without a crab 
species license.
    (3) Vessel and gear designations and vessel length categories--(i) 
General. A license can be used only on a vessel that complies with the 
vessel designation and gear designation specified on the license and 
that has an LOA less than or equal to the MLOA specified on the 
license.
    (ii) * * *
    (D) Limited processing by catcher vessels. Up to 1 mt of round fish 
per day may be processed on a vessel less than or equal to 60 ft (18.3 
m) LOA that is authorized to be used to fish for license limitation 
groundfish or crab species with a license with a catcher vessel 
designation.
    (iii) * * *
    (iv) Gear designations for groundfish licenses--(A) General. A 
vessel may only use gear consistent with the gear designation on the 
license authorizing the use of that vessel to fish for license 
limitation groundfish or crab species.
    (B) Trawl/non-trawl. A license will be assigned a trawl/non-trawl 
gear designation if trawl and non-trawl gear were used on the 
qualifying vessel during the period beginning January 1, 1988, through 
June 17, 1995.
    (C) Trawl. A license will be assigned a trawl gear designation if 
only trawl gear was used on the qualifying vessel during the period 
beginning January 1, 1988, through June 17, 1995.
    (D) Non-trawl. A license will be assigned a non-trawl gear 
designation if only non-trawl gear was used on the qualifying vessel 
during the period beginning January 1, 1988, through June 17, 1995.
    (E) Changing a gear designation.
    (1) An applicant may request a change of gear designation based on 
gear used from the vessel during the period beginning June 18, 1995, 
through February 7, 1998. This requested change can be made in the 
application for an LLP license. Such a change would be permanent and 
may only be used for a change from trawl to non-trawl or from non-trawl 
to trawl.
    (2) An applicant may request a change of gear designation based on 
a significant financial investment in converting a vessel or purchasing 
fishing gear on or before February 7, 1998, and making a documented 
harvest with that gear on or before December 31, 1998. This requested 
change can be made in the application for an LLP license. Such a change 
would be permanent and may only be used for a change from trawl to non-
trawl or from non-trawl to trawl.
    (F) Definitions of non-trawl gear and significant financial 
investment.
    (1) For purposes of paragraph (k)(3)(iv) of this section, non-trawl 
gear means any legal gear, other than trawl, used to harvest 
groundfish.
    (2) For purposes of paragraph (k)(3)(iv)(E)(2) of this section, 
``significant financial investment'' means having spent at least 
$100,000 toward vessel conversion and/or gear to change to trawl gear 
from non-trawl gear, or having acquired groundline, hooks, pots, jig 
machines, or hauling equipment to change to non-trawl gear from trawl 
gear.
    (4) * * *
    (i) * * *
    (A) At least one documented harvest of any amount of license 
limitation groundfish must have been made from a vessel to qualify for 
one or more of the area endorsements in paragraphs (k)(4)(ii)(A) and 
(k)(4)(ii)(B) of this section. This documented harvest must have been 
of license limitation groundfish caught and retained in the BSAI or in 
waters shoreward of the BSAI and must have occurred during the 
following periods:
* * * * *
    (B) At least one documented harvest of any amount of license 
limitation groundfish must have been made from a vessel to qualify for 
one or more of the area endorsements in paragraphs

[[Page 17402]]

(k)(4)(ii)(C) through (k)(4)(ii)(E) of this section. This documented 
harvest must have been of license limitation groundfish caught and 
retained in the GOA or in waters shoreward of the GOA and must have 
occurred during the following periods:
* * * * *
    (ii) Endorsement qualification periods (EQP). A groundfish license 
will be assigned one or more area endorsements based on criteria in 
paragraphs (k)(4)(ii)(A) through (k)(4)(ii)(E) of this section.
    (A) Aleutian Islands area endorsement. For a license to be assigned 
an Aleutian Islands area endorsement, at least one documented harvest 
of any amount of license limitation groundfish must have been made from 
a vessel in any vessel length category (vessel length categories ``A'' 
through ``C'') during the period beginning January 1, 1992, through 
June 17, 1995, in the Aleutian Islands Subarea or in waters shoreward 
of that subarea.
    (B) Bering Sea area endorsement. For a license to be assigned a 
Bering Sea area endorsement, at least one documented harvest of any 
amount of license limitation groundfish must have been made from a 
vessel in any vessel length category (vessel length categories ``A'' 
through ``C'') during the period beginning January 1, 1992, through 
June 17, 1995, in the Bering Sea Subarea or in waters shoreward of that 
subarea.
    (C) Western Gulf area endorsement--(1) Vessel length category 
``A''. For a license to be assigned a Western Gulf area endorsement 
based on participation from a vessel in vessel length category ``A'', 
at least one documented harvest of any amount of license limitation 
groundfish must have been made from that vessel in each of any two 
calendar years during the period beginning January 1, 1992, through 
June 17, 1995, in the Western Area of the Gulf of Alaska on in waters 
shoreward of that area.
    (2) Vessel length category ``B'' and catcher vessel designation. 
For a license to be assigned a Western Gulf area endorsement based on 
participation from a vessel in vessel length ``B'' and that would 
qualify for a catcher vessel designation under this section, at least 
one documented harvest of any amount of license limitation groundfish 
must have been made from that vessel during the period beginning 
January 1, 1992, through June 17, 1995, in the Western Area of the Gulf 
of Alaska or in waters shoreward of that area.
    (3) Vessel length category ``B'' and catcher/processor vessel 
designation. For a license to be assigned a Western Gulf area 
endorsement based on participation from a vessel in vessel length 
category ``B'' and that would qualify for a catcher/processor vessel 
designation under this section, at least one documented harvest of any 
amount of license limitation groundfish must have been made from that 
vessel in each of any two calendar years during the period beginning 
January 1, 1992, through June 17, 1995, in the Western Area of the Gulf 
of Alaska or in waters shoreward of that area, or at least four 
documented harvests of any amount of license limitation groundfish 
during the period beginning January 1, 1995, through June 17, 1995, in 
the Western Area of the Gulf of Alaska or in waters shoreward of that 
area.
    (4) Vessel length category ``C''. For a license to be assigned a 
Western Gulf area endorsement based on participation from a vessel in 
vessel length category ``C'', at least one documented harvest of any 
amount of license limitation groundfish must have been made from that 
vessel during the period beginning January 1, 1992, through June 17, 
1995, in the Western Area of the Gulf of Alaska or in waters shoreward 
of that area.
    (D) Central Gulf area endorsement--(1) Vessel length category 
``A''. For a license to be assigned a Central Gulf area endorsement 
based on the participation from a vessel in vessel length category 
``A'', at least one documented harvest of any amount of license 
limitation groundfish must have been made from that vessel in each of 
any two calendar years during the period beginning January 1, 1992, 
through June 17, 1995, in the Central Area of the Gulf of Alaska or in 
waters shoreward of that area, or in the West Yakutat District or in 
waters shoreward of that district.
    (2) Vessel length category ``B''. For a license to be assigned a 
Central Gulf area endorsement based on the participation from a vessel 
in vessel length category ``B'', at least one documented harvest of any 
amount of license limitation groundfish must have been made from that 
vessel in each of any two calendar years during the period beginning 
January 1, 1992, through June 17, 1995, or at least four documented 
harvests of any amount of license limitation groundfish during the 
period beginning January 1, 1995, through June 17, 1995. These 
documented harvests must have occurred in the Central Area of the Gulf 
of Alaska or in waters shoreward of that area, or in the West Yakutat 
District or in waters shoreward of that district.
    (3) Vessel length category ``C''. For a license to be assigned a 
Central Gulf area endorsement based on the participation from a vessel 
in vessel length category ``C'', at least one documented harvest of any 
amount of license limitation groundfish must have been made from that 
vessel during the period beginning January 1, 1992, through June 17, 
1995, in the Central Area of the Gulf of Alaska or in waters shoreward 
of that area, or in the West Yakutat District or in waters shoreward of 
that district.
    (E) Southeast Outside area endorsement--(1) Vessel length category 
``A''. For a license to be assigned a Southeast Outside area 
endorsement based on the participation from a vessel in vessel length 
category ``A'', at least one documented harvest of any amount of 
license limitation groundfish must have been made from that vessel in 
each of any two calendar years during the period beginning January 1, 
1992, through June 17, 1995, in the Southeast Outside District of the 
Gulf of Alaska or in waters shoreward of that district.
    (2) Vessel length category ``B''. For a license to be assigned a 
Southeast Outside area endorsement based on participation from a vessel 
in vessel length category ``B'', at least one documented harvest of any 
amount of license limitation groundfish must have been made from that 
vessel in each of any two calendar years during the period beginning 
January 1, 1992, through June 17, 1995, or at least four documented 
harvests of any amount of license limitation groundfish during the 
period beginning January 1, 1995, through June 17, 1995, in the 
Southeast Outside District of the Gulf of Alaska or in waters shoreward 
of that district.
    (3) Vessel length category ``C''. For a license to be assigned a 
Southeast Outside area endorsement based on the participation from a 
vessel in vessel length category ``C'', at least one documented harvest 
of any amount of license limitation groundfish must have been made from 
that vessel during the period beginning January 1, 1992, through June 
17, 1995, in the Southeast Outside District of the Gulf of Alaska or in 
waters shoreward of that district.
* * * * *
    (iv) * * *
    (A) From whose vessel no documented harvests were made in the GOA 
or waters shoreward of the GOA during the period beginning January 1, 
1988, through June 27, 1992, and
    (B) From whose vessel no documented harvests were made in the BSAI 
or waters shoreward of the BSAI during the period beginning January 1, 
1992, through June 17, 1995.

[[Page 17403]]

    (v) * * *
    (A) From whose vessel no documented harvests were made in the BSAI 
or waters shoreward of the BSAI during the period beginning January 1, 
1988, through June 27, 1992, and
    (B) From whose vessel no documented harvests were made in the GOA 
or waters shoreward of the GOA during the period beginning January 1, 
1992, through June 17, 1995.
* * * * *
    (5) * * *
    (ii) Area/species endorsements. A crab species license will be 
assigned one or more area/species endorsements specified at Sec. 679.2 
based on criteria in paragraphs (k)(5)(ii)(A) through (G) and paragraph 
(k)(5)(iii) of this section.
* * * * *
    (iii) Recent participation period (RPP). (A) To qualify for one or 
more of the area/species endorsements specified at Sec. 679.2, at least 
one documented harvest of any amount of crab species must have been 
made from a vessel during the period from January 1, 1996, through 
February 7, 1998.
    (B) Exceptions to the RPP. (1) A person who only qualifies for an 
area/species endorsement specified at paragraph (k)(5)(ii)(G) of this 
section does not need to meet the documented harvest requirements of 
paragraph (k)(5)(iii) of this section.
    (2) A person whose qualification for area/species endorsements 
specified at Sec. 679.2 is based on documented harvests from a vessel 
length category ``C'' vessel does not need to meet the documented 
harvest requirements of paragraph (k)(5)(iii) of this section.
    (3) A person whose vessel meets the documented harvest requirements 
of paragraphs (k)(5)(i) and (k)(5)(ii) of this section, whose vessel 
was lost or destroyed during the period from January 1, 1996, through 
February 7, 1998, and whose replacement vessel made a documented 
harvest during the period after the vessel was lost or destroyed but 
before January 1, 2000, does not need to meet the documented harvest 
requirements of paragraph (k)(5)(iii) of this section.
    (iv) Exception to the complete fishing history earned on one 
vessel. A person who can demonstrate that his or her vessel made a 
documented harvest of crab species during the period from January 1, 
1998, through February 7, 1998, and who obtains the fishing history of 
a vessel that meets the documented harvest requirements of paragraphs 
(k)(5)(i) and (k)(5)(ii) of this section, or who entered into a 
contract to obtain the fishing history of a vessel that meets the 
documented harvest requirements of paragraphs (k)(5)(i) and (k)(5)(ii) 
of this section by 8:36 am PST on October 10, 1998, is exempted from 
the requirement of having a complete fishing history earned on one 
vessel.
* * * * *

    4. In Sec.  679.7, paragraph (i)(6) is revised and paragraph (i)(9) 
is added to read as follows:


Sec.  679.7   Prohibitions.

* * * * *
    (i) * * *
    (6) Use a vessel to fish for LLP groundfish or crab species, or 
allow a vessel to be used to fish for LLP groundfish or crab species, 
that has an LOA that exceeds the MLOA specified on the license that 
authorizes fishing for LLP groundfish or crab species.
    * * * * *
    (9) Use a vessel to fish for LLP groundfish or crab species, or 
allow a vessel to be used to fish for LLP groundfish or crab species, 
other than the vessel named on the license that authorizes fishing for 
LLP groundfish or crab species.
* * * * *
[FR Doc. 01-7941 Filed 3-29-01; 8:45 am]
BILLING CODE 3510-22-S