[Federal Register Volume 66, Number 185 (Monday, September 24, 2001)]
[Rules and Regulations]
[Pages 48813-48822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23467]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 010228052-1211-02; I.D. 010301D]
RIN 0648-AL95


Fisheries of the Exclusive Economic Zone Off Alaska; License 
Limitation Program

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

ACTION: Final rule.

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SUMMARY: NMFS issues a final rule that implements 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 rule is necessary to implement changes to the License 
Limitation Program (LLP) made by these amendments and are intended to 
further the objectives of the Magnuson-Stevens Fishery Conservation and 
Management Act (Magnuson-Stevens Act) and the three FMPs.

DATES: Effective October 24, 2001, except for Sec.  679.4(k)(3)(i) and 
(k)(3)(iv)(A), and Sec.  679.7(i)(9) which will be effective January 1, 
2002.

ADDRESSES: Copies of the environmental assessment/regulatory impact 
review/initial regulatory flexibility analysis (EA/RIR/IRFA) and the 
final regulatory flexibility analysis (FRFA) are available from the 
Sustainable Fisheries Division, Alaska Region, NMFS, P.O. Box 21668, 
Juneau, AK 99802-1668, Attn: Lori Gravel, or hand pick-up at Federal 
Building, 709 West 9th Street, Room 453, Juneau, AK 99801.

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

SUPPLEMENTARY INFORMATION:

Background

    The North Pacific Fishery Management Council (Council)

[[Page 48814]]

recommended, and NMFS approved, the LLP to address concerns of excess 
capital and capacity in the groundfish and crab fisheries in and 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 in and 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. More information on the background and development 
of the LLP can be found in the preamble to the final rule implementing 
the LLP at 63 FR 52642 (October 1, 1998).
    In October 1998, the Council recommended several changes to the LLP 
through Amendments 60, 58, and 10. A notice of availability for these 
amendments was published January 17, 2001 (66 FR 3976), which initiated 
a 60-day public comment period on the approval of these amendments by 
NMFS. All public comments received during that period were in favor of 
approval. NMFS approved Amendments 60, 58, and 10 on April 18, 2001. 
The following section outlines the changes made to the LLP by 
Amendments 60, 58, and 10. More information regarding these changes, 
including the Council's rationale for recommending them, can be found 
in the preamble to the proposed rule for this action at 66 FR 17397 
(March 30, 2001).

Changes to the LLP Qualifying Criteria

    1. A recent participation requirement has been added to the 
eligibility for a crab species license.
    The qualification criteria to receive a permanent crab species 
license has been changed to require participation during the period 
beginning January 1, 1996, through February 7, 1998. Under the original 
provisions of the LLP, a person only needed to demonstrate that 
documented harvests were made from a qualifying vessel during two 
periods for a crab species license. These two periods are the general 
qualification period (GQP), which began January 1, 1988, through June 
27, 1992, and the endorsement qualification period (EQP), which varied 
according to the particular area/species endorsements included on the 
license.
    A third period, the recent participation period (RPP), has been 
added to the documented harvest requirements for crab. Under the RPP, a 
person must demonstrate that at least one documented harvest of any 
amount of crab species was made from a qualifying vessel during the 
period beginning January 1, 1996, through February 7, 1998. The 
additional eligibility requirement of the RPP is designed to reduce the 
number of crab species licenses that might otherwise be issued to 
persons who have been inactive in the crab fishery since 1995. If 
permanent licenses were issued to inactive fishermen, they could 
transfer those licenses 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.
    Several exemptions from the RRP requirement are provided based on 
public testimony before the Council and in consideration of the impacts 
the RPP could have on small fishing operations. This final rule in 
response to public comments adds a hardship exemption (unavoidable 
circumstances), similar to that provided for the EQP. The following 
exemptions are included in this final rule.
    Exemption 1: A person who only qualifies for a Norton Sound red 
king crab and Norton Sound blue king crab endorsement does 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) length overall (LOA) does 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, but from which a documented harvest of crab species was made 
during the period beginning after the vessel was lost or destroyed 
through January 1, 2000, does 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 Pacific standard time on October 10, 1998, does 
not have to meet the requirement of having a complete fishing history 
on the same qualifying vessel for qualification.
    Exemption 5: A person who can demonstrate that he or she had a 
specific intent to participate in the crab fisheries during the RPP but 
was prevented from participating by circumstances that were 
unavoidable, unique, and unforeseen and unforeseeable, does not need to 
meet the documented harvest requirements of the RPP.
    2. A transfer of groundfish LLP licenses that was earned from a 
vessel that did not have a Federal Fisheries Permit (FFP) is 
restricted.
    This final rule restricts the transfer of a groundfish LLP license 
that was earned based on documented harvests from a vessel that did not 
have an FFP during the period beginning January 1, 1988, through 
October 8, 1998. Under this transfer restriction, the groundfish LLP 
license and the vessel from which the license was earned must be 
transferred together. In other words, this type of groundfish LLP 
license cannot be transferred separately and used on a vessel other 
than the original qualifying vessel.
    This transfer restriction has two exceptions. First, if the fishing 
history of a vessel that did not have an FFP was transferred before 
February 7, 1998, the qualifying vessel did not have to accompany the 
license. However, subsequent transfers will require the license to be 
``coupled'' with the existing vessel (i.e., the license cannot be 
transferred separately from the vessel named on the license). Second, a 
vessel that is subject to this provision but that is lost or destroyed 
can be replaced under the general vessel replacement provisions of the 
LLP.
    Concerns of excess capacity in the affected fisheries influenced 
the Council to recommend this transfer restriction. This transfer 
restriction is based on the fact that an FFP was required for any 
vessel that participated in a Federal groundfish fishery off Alaska. If 
a vessel participated in a Federal groundfish fishery off Alaska 
without an FFP, it 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 (State 
waters) 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 behavior of these operations should not be 
affected.
    3. A gear designation is added to groundfish licenses.
    Adding a gear designation to groundfish licenses is intended to 
prevent movement between the trawl sector and the non-trawl sector. 
This action will effectively limit participation within a gear sector's

[[Page 48815]]

fishery to those who are historically dependent on that fishery. Under 
this provision, a license will 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 will have 
a trawl/non-trawl gear designation. This designation will mean that the 
license holder could use trawl gear and non-trawl gear. However, if a 
person used only trawl gear before June 17, 1995, the license issued to 
that person will have a trawl gear designation. This designation will 
mean that the license holder can only use trawl gear.
    The general rule on gear designations has two exceptions. First, a 
person can 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, than was used previously. 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 cannot qualify 
for a trawl/non-trawl gear designation by use of this exception.
    Second, a person can request a gear designation change based on a 
significant financial investment. To qualify under the second exception 
a person will 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. What is meant by a 
significant financial investment was defined by the Council based on 
industry testimony during the development of this action. Industry 
testimony indicated that spending at least $100,000 toward vessel 
conversion and/or gear to change from a non-trawl to a trawl fishery, 
or having acquired groundline, hooks or pots, and hauling equipment to 
change from a trawl to a non-trawl fishery, should be considered 
sufficient to justify a gear designation change.
    4. The Community Development Quota (CDQ) vessel exemption is 
limited to a specific time period.
    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 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 recognition that CDQ 
organizations are integrating into the existing fishing industry at a 
reasonable pace, induced the Council to recommend a limit to this 
exemption. The Council recommended that the exemption be limited to 
vessels that met the CDQ vessel exemption criteria between November 18, 
1992, and October 9, 1998, the latter of which is the date the Council 
recommended the limitation. Allowing CDQ vessels to qualify for this 
exemption through that date would protect the investment-backed 
expectations of any CDQ organization that decided to use this exemption 
before the Council's decision to limit the provision.
    5. The use of a groundfish or crab LLP license is limited to the 
vessel named on the license.
    Under this final rule, effective January 1, 2002, a groundfish or 
crab LLP license may only be used on the vessel named on the license. 
This restriction was recommended by the Council to address concerns 
about the movement of license holders among vessels contributing to 
excess capacity in the fisheries. Currently, an LLP license is not 
directly linked to a particular vessel and a license holder is able to 
use any vessel to fish for license limitation groundfish or crab 
species if that vessel complies with vessel length restrictions.
    For licenses issued after the effective date of this final rule, 
NMFS will specify the name of the vessel on the license. A license 
holder will be authorized to use only the vessel designated on the 
license. A change to the vessel designated on the license will require 
agency action and will count toward the limit of one transfer per 
license in each calendar year.
    6. Limited processing ability is authorized for a person who holds 
a license with a catcher vessel designation.
    Currently, LLP licenses are separated into two distinct processing 
designations: A catcher vessel designation, which means that the 
license holder cannot process fish; and a catcher/processor 
designation, which means that the license holder can catch and process 
fish on the same vessel. 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 take advantage of ``niche markets.'' Niche 
markets are small, specialized markets, such as a local grocery store 
or restaurant. Fishermen can sell directly to these markets and provide 
a specialty product to consumers in an expedited manner. For these 
reasons, the Council recommended a limited processing exception. This 
exception will allow an LLP license holder with a catcher vessel 
designation to process one metric ton of round fish per day if it is 
harvested on a vessel that is less than 60 ft (18.3 m) LOA, and if the 
license holder complies with other requirements (e.g., proper 
designation on the FFP and recordkeeping and reporting requirements for 
processing).

Other Changes Included in This Rule and Small Entities Compliance Guide

    Several portions of the LLP regulations are revised to eliminate 
the word ``State'' when referring to waters shoreward of the EEZ off 
Alaska. The word ``State'' was eliminated because including it 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 prohibition is 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 requirement in this action that a 
specific vessel must be named on the license.
    The format for the eligibility criteria for the LLP is changed from 
regulatory text to several tables. The table format is intended make 
the eligibility requirements more accessible and understandable and 
serves as a Small Entities Compliance Guide to the LLP. It does not 
change any of the substantive requirements for eligibility. 
Instructions for using the tables to determine eligibility are as 
follows: (a) For each table, begin at the cell at column 1, row 1. This 
cell contains the beginning of a statement that, when completed, 
indicates whether you are eligible; (b) scan the various cells (row 2 
through last row) in column 1 to find the second portion of the 
statement that began in the cell at column 1, row 1 and that applies to 
your particular case; and (c) once the appropriate row has been 
located, alternate between that row and row 1 sequentially through the 
columns to complete the statement.
    For example, to determine whether you are eligible for a Bering Sea 
area

[[Page 48816]]

endorsement for your groundfish license, begin at the cell at column 1, 
row 1 in the table located at 50 CFR 679.4(k)(4)(ii). This cell 
contains the statement ``A groundfish license will be assigned . . . 
.'' Next, locate the cell in column 1 that corresponds with the 
endorsement for which you would like to determine eligibility. This can 
be found at column 1, row 3. Next, alternate between row 3 and row 1 
sequentially through the columns to determine your eligibility. The 
completed statement would appear as follows: A groundfish license will 
be assigned . . . (from column 1, row 1) a Bering Sea area endorsement 
(from column 1, row 3) if . . . (from column 2, row 1) at least one 
documented harvest of any amount of license limitation groundfish was 
made (from column 2, row 3) during the period . . . (from column 3, row 
1) beginning January 1, 1992, through June 17, 1995 (from column 3, row 
3) in . . . (from column 4, row 1) the Bering Sea Subarea or in waters 
shoreward of that area (from column 4, row 3) from a vessel in vessel 
length category . . . (from column 5, row 1) ``A'', ``B'', or ``C'' 
(from column 5, row 3) and that meets the requirement for a . . . (from 
column 6, row 1) catcher/processor designation or a catcher vessel 
designation (from column 6, row 3). Although the completed sentence is 
long, it provides sufficient information to determine eligibility. The 
same process can be used for other eligibility determinations.

Changes in the Final Rule

    Several changes were made to this final rule: First, the proposed 
period for the lost vessel exemption will not be limited to January 1, 
1996, through February 7, 1998. Instead, no period is specified. To 
qualify for this exemption, a person must (1) satisfy the documented 
harvest requirements of the GQP and the EQP; (2) demonstrate that the 
vessel used to meet the documented harvest requirements of the GQP and 
the EQP was lost or destroyed; and (3) document a harvest of any amount 
of crab species after the vessel was lost or destroyed but on or before 
January 1, 2000.
    Second, the lost vessel exemption is revised so that a person other 
than the owner of the vessel can benefit from the exemption. This 
revision would allow any person who owns the fishing history of the 
lost or destroyed vessel to use that fishing history toward 
eligibility.
    Third, a hardship exemption (unavoidable circumstances) has been 
added for the RPP. Adding an unavoidable circumstances provision to the 
RPP is consistent with the original provisions of the LLP (i.e., the 
EQP has an unavoidable circumstances provision). Also, adding an 
unavoidable circumstances provision will allow persons to qualify for a 
license who are dependent on the crab fishery but who failed to meet 
the documented harvest requirements of the RPP because of circumstances 
beyond their control.
    Finally, the proposed revision of the definition of ``Person'' is 
withdrawn. That revision would not have made a substantive change to 
the definition of ``Person.''

Response to Public Comments

    Eight sets of comments were received on Amendments 60, 58, and 10, 
and the proposed rule implementing those amendments. Six sets of 
comments urged the approval of Amendment 10 and do not justify a 
specific response. The other two sets of comments addressed specific 
provisions of the proposed rule and are summarized below.
    Comment 1: The lost or destroyed vessel exemption was unnecessarily 
narrowed. First, the time period was made concurrent with the RPP 
period (from January 1, 1996, through February 7, 1998). This would 
preclude a person from using this exemption if a vessel was lost or 
destroyed after it was used to meet the documented harvest requirements 
of the EQP but before January 1, 1996. Second, only the vessel owner 
could benefit from this provision, rather any person who obtained the 
fishing history of the lost or destroyed vessel. This is inconsistent 
with the Council's policy to recognize the written transfer or 
retention of a fishing history. Also, NMFS should clarify that the 
transfer or retention of a vessel's fishing history will be analyzed 
for substance rather than formal terminology when it is reviewed for 
eligibility.
    Response: NMFS agrees. The final rule is revised to extend the time 
period for the lost or destroyed vessel exemption and to allow someone 
other than the vessel owner to use the exemption if the fishing history 
of that vessel was properly transferred.
    The preamble to the proposed rule implementing Amendments 60, 58, 
and 10 (66 FR 17397, March 30, 2001) addressed how NMFS would treat the 
transfer or retention of a fishing history and should be reviewed for 
details on fishing history transfer evaluations. NMFS intends to review 
the substance of transfers and retentions to respect the investment-
backed expectations of persons and to preserve the overall policies of 
the LLP.
    Comment 2: The RPP should have an unavoidable circumstances 
provision similar to the one provided for the EQP. Not providing an 
unavoidable circumstances provision for the RPP may unfairly preclude a 
person from eligibility and is inconsistent with the overall LLP.
    Response: NMFS agrees. The final rule is revised to include an 
unavoidable circumstances provision for the RPP that is similar to the 
one provided for the EQP.

License Re-issuance

    NMFS will notify each LLP license holder of the status of his or 
her license based on the changes made by Amendments 60, 58, and 10. A 
license holder will have 60 days to respond to NMFS regarding the 
status of his or her license and to designate the vessel which is to be 
named on the license, if allowed that option. After the 60 days has 
expired and a determination has been issued by NMFS, license holders 
will have the right to appeal to the Office of Administrative Appeals, 
Alaska Region, NMFS.

Classification

    The Council prepared an environmental assessment for FMP 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 
changes, and the cumulative impacts of all the changes, could have a 
negligible affect on the quality of the human environment. Most of the 
changes in this 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 environmental 
assessment is available from NMFS (see ADDRESSES).
    An FRFA was prepared that describes the impact this final rule 
would have on small entities. The analysis concludes that most persons 
affected by the actions are small entities, given that their expected 
annual gross revenues are less that $3 million, or are assumed to be 
small entities because of insufficient annual receipts data. 
Nevertheless, NMFS finds that the small entities involved in this 
analysis are small businesses (fishing operations). Impacts to small 
organizations and small governmental jurisdictions are negligible. An 
estimated 447 groundfish license recipients could be affected by 
limiting the transfer of licenses earned on vessels that never held a 
Federal fisheries permit. Each of these 447 are

[[Page 48817]]

considered small entities because of insufficient annual receipts data.
    All of the estimated 2,435 groundfish license recipients could be 
affected by adding gear endorsements to the license. Of these 2,435 
license recipients, 2,272 are catcher vessels and 163 are catcher/
processors. All 2,272 catcher vessels are assumed to be small entities 
because of insufficient annual receipts data. Of the 163 catcher/
processors, some may be small entities for purposes of the RFA; 
however, due to an absence of ownership, partnership, and affiliation 
information it is not possible to report the number of each category 
with certainty. The estimated 2,435 groundfish license recipients are 
owners of catcher vessels and catcher-processor vessels that 
participated in the groundfish fisheries between January 1, 1988, and 
June17, 1995.
    All six CDQ organizations, which are considered small entities, 
have the potential to be affected by the rescission of the CDQ vessel 
exemption, although none is expected to be impacted. NMFS expects this 
result because no CDQ organizations, to date, have sought to use this 
exemption, new management and affiliation relationships have developed 
with CDQ organizations that make the exemption unnecessary, and the 
Council provided a ``grandfather'' provision that protects any existing 
CDQ organization from being disadvantaged by this action.
    An estimated 93 crab license recipients could be affected by the 
addition of a recent participation requirement for eligibility for a 
crab LLP license. Of these 93 crab license recipients, all are assumed 
to be small entities because of insufficient annual receipts data. The 
addition of a recent participation period (January 1, 1996, through 
February 7, 1998), which requires at least one documented harvest of 
crab during that time period, will reduce the number of crab license 
recipients from approximately 365 to 272.
    An estimated 1,902 license recipients could be affected by allowing 
limited processing by catcher vessels under 60 feet. Of these 1,902 
license recipients, all are assumed to be small entities because of 
insufficient annual receipts data.
    The Council considered and adopted several measures to reduce the 
impact of the final rule. As originally proposed, limiting the transfer 
of licenses earned on vessels that never held a Federal Fisheries 
Permit would have disqualified license recipients who did not have a 
Federal Fisheries Permit for their vessels. After reviewing the impact 
disqualification would have on license recipients, primarily small 
entities, the Council recommended that licenses with limited 
transferability be issued to such recipients. The Council recommended 
that a provision be added to allow a license recipient to designate a 
gear type different from the one for which that license recipient 
qualified if certain criteria were met. In addition, the Council 
reviewed several alternatives for adding a recent participation period 
for crab license eligibility, including alternatives that would have 
required more participation than one documented harvest during the 
period from January 1, 1996, through February 7, 1998. The Council 
concluded that the measures outlined in the final rule provided the 
most benefits in meeting the goals of the LLP program while imposing 
the least harm to affected license recipients.
    NMFS received eight sets of comments regarding this action. Six 
sets of comments urged approval of this action. Two sets of comments 
addressed specific aspects of the action and are summarized below.
    One comment indicated that the time period established for lost or 
destroyed vessels was too short and would preclude persons who depended 
on the fishery from using the exemption. NMFS agreed with this comment 
and extended the time period to include all time between original 
eligibility time period under the LLP and January 1, 2000.
    One comment indicated that the recent participation period for crab 
licenses did not have an unavoidable circumstances provision and that 
one should be added. The comment suggested a provision similar to the 
one provided for the endorsement qualification period under the 
original provisions of the LLP. NMFS agreed with this comment and added 
an unavoidable circumstances provision. This addition will make the 
recent participation period more consistent with the other provisions 
of the LLP and will provide a greater opportunity for persons who may 
be dependent on the fishery to qualify for a license.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: September 13, 2001.
William T. Hogarth,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

    For reasons set out in the preamble, 50 CFR part 679 is 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.; 3631 et seq; 
Title II of Division C, Pub. L. 105-277; Sec. 3027, Pub. L. 106-31; 
113 Stat. 57; 16 U.S.C. 1540(f); and Sec. 209, Pub. L. 106-554.

    2. In Sec.  679.4, paragraphs (k)(2)(iv), (k)(3)(i), (k)(4)(i) 
through (k)(4)(v), (k)(5), (k)(5)(i)introductory text, (k)(5)(ii), and 
(k)(6)(iv)(D) are revised and paragraphs (k)(3)(ii)(D), (k)(3)(iv), 
(k)(5)(iii) through (k)(5)(vi), and (k)(7)(ix) 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, is exempted from the requirement to have a LLP groundfish license 
to conduct directed fishing for license limitation groundfish in the 
GOA and in the BSAI area and a crab species license to fish for crab 
species in the Bering Sea and Aleutian Islands Area.
    (3) Vessel and gear designations and vessel length categories-(i) 
General. A license may be used only on a vessel named on the license, a 
vessel that complies with the vessel designation and gear designation 
specified on the license, and a vessel 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 
weight equivalent of license limitation groundfish or crab species may 
be processed per day on a vessel less than or equal to 60 ft (18.3 m) 
LOA that is authorized to fish with an LLP license with a catcher 
vessel designation.
* * * * *
    (iv) Gear designations for groundfish licenses-(A) General. A 
vessel may only

[[Page 48818]]

use gear consistent with the gear designation on the LLP 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 to harvest LLP 
species from 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 to harvest LLP species from 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 to harvest LLP species from 
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. 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. 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 
license limitation 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) General qualification periods (GQP). This table provides the 
GQP documented harvest requirements for LLP groundfish licenses:

----------------------------------------------------------------------------------------------------------------
                                          IF THE REQUIREMENTS FOUND IN THE TABLE AT
                                          Sec.  679.4(k)(4)(ii) ARE MET FOR THE AREA
     A GROUNDFISH LICENSE WILL BE          ENDORSEMENT AND AT LEAST ONE DOCUMENTED        DURING THE PERIOD...
              ASSIGNED...                HARVEST OF LICENSE LIMITATION GROUNDFISH WAS
                                                  CAUGHT AND RETAINED IN...
----------------------------------------------------------------------------------------------------------------
(A) One or more area endorsements in         the BSAI or waters shoreward of the BSAI  (1) Beginning January 1,
 the table at Sec.  679.4(k)(4)(ii)(A)                                                  1988, through June 27,
 or (B)                                                                                 1992; or
                                                                                       (2) Beginning January 1,
                                                                                        1988, through December
                                                                                        31, 1994, provided that
                                                                                        the harvest was of
                                                                                        license limitation
                                                                                        groundfish using pot or
                                                                                        jig gear from a vessel
                                                                                        that was less than 60 ft
                                                                                        (18.3 m) LOA; or
                                                                                       (3) Beginning January 1,
                                                                                        1988, through June 17,
                                                                                        1995, provided that,
                                                                                        during the period
                                                                                        beginning January 1,
                                                                                        1988, through February
                                                                                        9, 1992, a documented
                                                                                        harvest of crab species
                                                                                        was made from the
                                                                                        vessel, and, during the
                                                                                        period beginning
                                                                                        February 10, 1992,
                                                                                        through December 11,
                                                                                        1994, a documented
                                                                                        harvest of groundfish
                                                                                        species, except
                                                                                        sablefish landed using
                                                                                        fixed gear, was made
                                                                                        from the vessel in the
                                                                                        GOA or the BSAI using
                                                                                        trawl or longline gear.
(B) One or more area endorsements in        the GOA or in waters shoreward of the GOA  (1) Beginning January 1,
 the table at Sec.  679.4(k)(4)(ii)(C)                                                  1988, through June 27,
 through (O)                                                                            1992; or
                                                                                       (2) Beginning January 1,
                                                                                        1988, through December
                                                                                        31, 1994, provided that
                                                                                        the harvest was of
                                                                                        license limitation
                                                                                        groundfish using pot or
                                                                                        jig gear from a vessel
                                                                                        that was less than 60 ft
                                                                                        (18.3 m) LOA; or
                                                                                       (3) Beginning January 1,
                                                                                        1988, through June 17,
                                                                                        1995, provided that,
                                                                                        during the period
                                                                                        beginning January 1,
                                                                                        1988, through February
                                                                                        9, 1992, a documented
                                                                                        harvest of crab species
                                                                                        was made from the
                                                                                        vessel, and, during the
                                                                                        period beginning
                                                                                        February 10, 1992,
                                                                                        through December 11,
                                                                                        1994, a documented
                                                                                        harvest landing of
                                                                                        groundfish species,
                                                                                        except sablefish landed
                                                                                        using fixed gear, was
                                                                                        made from the vessel in
                                                                                        the GOA or the BSAI
                                                                                        using trawl or longline
                                                                                        gear.
----------------------------------------------------------------------------------------------------------------

    (ii) Endorsement qualification periods (EQP). This table provides 
the documented harvest requirements for LLP groundfish license area 
endorsements:

[[Page 48819]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               FROM A VESSEL IN
    A GROUNDFISH LICENSE WILL BE               IF...           DURING THE PERIOD...            IN...             VESSEL LENGTH      AND THAT MEETS THE
             ASSIGNED...                                                                                          CATEGORY...      REQUIREMENTS FOR A...
--------------------------------------------------------------------------------------------------------------------------------------------------------
(A) An Aleutian Island area           at least one            beginning January 1,    the Aleutian Islands     ``A'', ``B'', or   catcher/ processor
 endorsement                           documented harvest of   1992, through June      Subarea or in waters                  ``C'' designation or a
                                       any amount of license   17, 1995.               shoreward of that                           catcher vessel
                                       limitation groundfish                           area.                                       designation.
                                       was made.
(B) A Bering Sea area endorsement     at least one            beginning January 1,    the Bering Sea Subarea   ``A'', ``B'', or   catcher/ processor
                                       documented harvest of   1992, through June      or in waters                          ``C'' designation or a
                                       any amount of license   17, 1995.               shoreward of that                           catcher vessel
                                       limitation groundfish                           area.                                       designation.
                                       was made.
(C) A Western Gulf area endorsement   at least one            beginning January 1,    the Western Area of                 ``A''   catcher/ processor
                                       documented harvest of   1992, through June      the Gulf of Alaska or                       designation or a
                                       any amount of license   17, 1995.               in waters shoreward                         catcher vessel
                                       limitation groundfish                           of that area.                               designation; or
                                       was made in each of
                                       any two calendar
                                       years.
(D) A Western Gulf area endorsement   at least one            beginning January 1,    the Western Area of                 ``B''   catcher vessel
                                       documented harvest of   1992, through June      the Gulf of Alaska or                       designation; or
                                       any amount of license   17, 1995.               in waters shoreward
                                       limitation groundfish                           of that area.
                                       was made.
(E) A Western Gulf area endorsement   at least one            beginning January 1,    the Western Area of                 ``B''   catcher/processor
                                       documented harvest of   1992, through June      the Gulf of Alaska or                       vessel designation;
                                       any amount of license   17, 1995.               in waters shoreward                         or
                                       limitation groundfish                           of that area.
                                       was made in each of
                                       any two calendar
                                       years.
(F) A Western Gulf area endorsement   at least four           beginning January 1,    the Western Area of                 ``B''   catcher/processor
                                       documented harvest of   1995, through June      the Gulf of Alaska or                       vessel designation;
                                       any amount of license   17, 1995.               in waters shoreward                         or
                                       limitation groundfish                           of that area.
                                       were made.
(G) A Western Gulf area endorsement   at least one            beginning January 1,    the Western Area of                    ``C''catcher/processor
                                       documented harvest of   1992, through June      the Gulf of Alaska or                       designation or a
                                       any amount of license   17, 1995.               in waters shoreward                         catcher vessel
                                       limitation groundfish                           of that area.                               designation.
                                       was made.
(H) A Central Gulf area endorsement   at least one            beginning January 1,    the Central area of                 ``A''   catcher/processor
                                       documented harvest of   1992, through June      the Gulf of Alaska or                       designation or a
                                       any amount of license   17, 1995.               in waters shoreward                         catcher vessel
                                       limitation groundfish                           of that area, or in                         designation; or
                                       was made in each of                             the West Yakutat
                                       any two calendar                                District or in waters
                                       years.                                          shoreward of that
                                                                                       district.
(I) A Central Gulf area endorsement   at least one            beginning January 1,    the Central area of                 ``B''   catcher/processor
                                       documented harvest of   1992, through June      the Gulf of Alaska or                       designation or a
                                       any amount of license   17, 1995.               in waters shoreward                         catcher vessel
                                       limitation groundfish                           of that area, or in                         designation; or
                                       was made in each of                             the West Yakutat
                                       any two calendar                                District or in waters
                                       years.                                          shoreward of that
                                                                                       district.

[[Page 48820]]

 
(J) A Central Gulf area endorsement   at least four           beginning January 1,    the Central area of                 ``B''   catcher/processor
                                       documented harvest of   1995, through June      the Gulf of Alaska or                       designation or a
                                       any amount of license   17, 1995.               in waters shoreward                         catcher vessel
                                       limitation groundfish                           of that area, or in                         designation; or
                                       were made.                                      the West Yakutat
                                                                                       District or in waters
                                                                                       shoreward of that
                                                                                       district.
(K) A Central Gulf area endorsement   at least one            beginning January 1,    the Central area of                    ``C''catcher/processor
                                       documented harvest of   1992, through June      the Gulf of Alaska or                       designation or a
                                       any amount of license   17, 1995.               in waters shoreward                         catcher vessel
                                       limitation groundfish                           of that area, or in                         designation.
                                       was made.                                       the West Yakutat
                                                                                       District or in waters
                                                                                       shoreward of that
                                                                                       district.
(L) A Southeast Outside area          at least one            beginning January 1,    in the Southeast                    ``A''   catcher/processor
 endorsement                           documented harvest of   1992, through June      Outside District or                         designation or a
                                       any amount of license   17, 1995.               in waters shoreward                         catcher vessel
                                       limitation groundfish                           of that district.                           designation; or
                                       was made in each of
                                       any two calendar
                                       years.
(M) A Southeast Outside area          at least one            beginning January 1,    in the Southeast                    ``B''   catcher/processor
 endorsement                           documented harvest of   1992, through June      Outside District or                         designation or a
                                       any amount of license   17, 1995.               in waters shoreward                         catcher vessel
                                       limitation groundfish                           of that district.                           designation; or
                                       was made in each of
                                       any two calendar
                                       years.
(N) A Southeast Outside area          at least four           beginning January 1,    in the Southeast                    ``B''   catcher/processor
 endorsement                           documented harvest of   1995, through June      Outside District or                         designation or a
                                       any amount of license   17, 1995.               in waters shoreward                         catcher vessel
                                       limitation groundfish                           of that district.                           designation; or
                                       were made.
(O) A Southeast Outside area          at least one            beginning January 1,    in the Southeast                       ``C''catcher/processor
 endorsement                           documented harvest of   1992, through June      Outside District or                         designation or a
                                       any amount of license   17, 1995.               in waters shoreward                         catcher vessel
                                       limitation groundfish                           of that district.                           designation.
                                       was made.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (iii) An eligible applicant that is issued a groundfish license 
based on a vessel's qualifications in the table at paragraphs 
(k)(4)(i)(A)(2) or (k)(4)(i)(B)(2) of this section must choose only one 
area endorsement for that groundfish license even if documented 
harvests qualifies the eligible applicant for more than one area 
endorsement.
    (iv) Notwithstanding the provisions in paragraph (k)(4)(i) of this 
section, NMFS will issue a groundfish license with the appropriate area 
endorsements to an eligible applicant whose vessel meets the 
requirements in the table at paragraph (k)(4)(i)(A) of this section, 
and the requirements in the table at any of the paragraphs 
(k)(4)(ii)(C) through (O) of this section, except:
    (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.
    (v) Notwithstanding the provisions in paragraph (k)(4)(i) of this 
section, a groundfish license with the appropriate area endorsements 
will be issued to an eligible applicant whose vessel meets the 
requirements in the tables at paragraphs (k)(4)(i) and (k)(4)(ii) and 
(A) or (B) of this section, except:
    (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) Qualification for a crab species license. A crab species 
license will be issued to an eligible applicant who owned a vessel that 
meets the criteria in paragraphs (k)(5)(i), (k)(5)(ii), and (k)(5)(iii) 
of this section, except that

[[Page 48821]]

vessels are exempt from the requirements in paragraph (k)(5)(i) of this 
section for area/species endorsements at paragraphs (A) and (G) in the 
table at paragraph (k)(5)(ii) of this section.
    (i) General qualification period (GQP). To qualify for one or more 
of the area/species endorsements in the table at paragraph (k)(5)(ii) 
of this section, the requirements of paragraph (k)(5)(iii) of this 
section must be met and: * * *
* * * * *
    (ii) Area/species endorsements. This table provides the documented 
harvest requirements for LLP crab license area/species endorsements:

----------------------------------------------------------------------------------------------------------------
  A CRAB SPECIES LICENSE WILL BE
           ASSIGNED...                            IF...                DURING THE PERIOD...         IN...
----------------------------------------------------------------------------------------------------------------
(A) A Pribilof red king and        at least one documented harvest of  beginning January 1,  the area described
 Pribilof blue king area/species      red king crab or blue king crab   1993, through         in the definition
 endorsement                                     was made by a vessel   December 31, 1994.    for a Pribilof red
                                                                                              king and Pribilof
                                                                                              blue king area/
                                                                                              species
                                                                                              endorsement at
                                                                                              Sec.  679.2.
(B) A Bering Sea and Aleutian      at least three documented harvests  beginning January 1,  the area described
 Islands Area C. opilio and C.        of C. opilio and C. bairdi were   1992, through         in the definition
 bairdi area/species endorsement                     made by a vessel   December 31, 1994.    for a Bering Sea
                                                                                              and Aleutian
                                                                                              Islands Area C.
                                                                                              opilio and C.
                                                                                              bairdi area/
                                                                                              species
                                                                                              endorsement at
                                                                                              Sec.  679.2.
(C) A St. Matthew blue king area/  at least one documented harvest of  beginning January 1,  the area described
 species endorsement                  red king crab or blue king crab   1992, through         in the definition
                                                 was made by a vessel   December 31, 1994.    for a St. Matthew
                                                                                              blue king area/
                                                                                              species
                                                                                              endorsement at
                                                                                              Sec.  679.2.
(D) An Aleutian Islands brown      at least three documented harvests  beginning January 1,  the area described
 king area/species endorsement      of brown king crab were made by a   1992, through         in the definition
                                                               vessel   December 31, 1994.    for an Aleutian
                                                                                              Islands brown king
                                                                                              area/species
                                                                                              endorsement at
                                                                                              Sec.  679.2.
(E) An Aleutian Islands red king   at least one documented harvest of  beginning January 1,  the area described
 area/species endorsement             red king crab or blue king crab   1992, through         in the definition
                                                 was made by a vessel   December 31, 1994.    for an Aleutian
                                                                                              Islands red king
                                                                                              area/species
                                                                                              endorsement at
                                                                                              Sec.  679.2.
(F) A Bristol Bay red king area/   at least one documented harvest of  beginning January 1,  the area described
 species endorsement                  red king crab or blue king crab   1991, through         in the definition
                                                 was made by a vessel   December 31, 1994.    for a Bristol Bay
                                                                                              red king area/
                                                                                              species
                                                                                              endorsement at
                                                                                              Sec.  679.2.
(G) A Norton Sound red king and    at least one documented harvest of  beginning January 1,  the area described
 blue king area/species               red king crab or blue king crab   1993, through         in the definition
 endorsement                                     was made by a vessel   December 31, 1994.    for a Norton Sound
                                                                                              red king and blue
                                                                                              king area/species
                                                                                              endorsement at
                                                                                              Sec.  679.2.
----------------------------------------------------------------------------------------------------------------

    (iii) Recent participation period (RPP). (A) A person must have 
made at least one documented harvest of any amount of crab species from 
a qualifying vessel during the period from January 1, 1996, through 
February 7, 1998, to qualify for one or more of the area/species 
endorsements specified at Sec. 679.2.
    (B) Exceptions to the RPP. A person does not need to meet the 
documented harvest requirements in paragraph (k)(5)(iii)(A) of this 
section if he or she deployed a vessel that met the documented harvest 
requirements in paragraph (k)(5)(i) of this section, if applicable, 
paragraph (k)(5)(ii) of this section, and:
    (1) Only qualifies area/species endorsement at paragraph (G) in the 
table at paragraph (k)(5)(ii).
    (2) Those documented harvests were made from a vessel that meets 
the requirements for vessel length category ``C''.
    (3) The vessel used to meet the document harvest requirements in 
paragraphs (k) (5) (i) and (k) (5) (ii) of this section was lost or 
destroyed, and he or she made a documented harvest of crab species any 
time during the period beginning after the vessel was lost or destroyed 
but before January 1, 2000.
    (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 Pacific standard time on October 10, 1998, 
is exempted from the requirement of having a complete fishing history 
earned on one vessel.
    (v) A qualified person who owned a vessel on June 17, 1995, that 
met the requirements in paragraphs (k)(5)(i) and (ii) of this section, 
but whose vessel was unable to meet requirements of paragraph 
(k)(5)(iii) of this section because of unavoidable circumstances (i.e., 
the vessel was lost damaged, or otherwise unable to participate in the 
license limitation crab fisheries) may receive a license if the 
qualified person is able to demonstrate that:
    (A) The owner of the vessel at the time of the unavoidable 
circumstance held a specific intent to conduct fishing for license 
limitation crab species with that vessel during a specific time period 
in a specific area;
    (B) The specific intent to conduct directed fishing for license 
limitation crab species was thwarted by a circumstance that was:
    (1) Unavoidable;
    (2) Unique to the owner of that vessel, or unique to that vessel; 
and
    (3) Unforeseen and reasonably unforeseeable to the owner of the 
vessel;
    (C) The circumstance that prevented the owner from conducting 
directed fishing for license limitation crab species actually occurred;
    (D) Under the circumstances, the owner of the vessel took all 
reasonable steps to overcome the circumstances that prevented the owner 
from conducting directed fishing for license limitation crab species; 
and
    (E) Any amount of license limitation crab species was harvested on 
the vessel after the vessel was prevented from participating but before 
January 1, 2000.

[[Page 48822]]

    (vi) A groundfish license or crab species license may be used on a 
vessel that is named on the license, that complies with the vessel 
designation, and that does not exceed the MLOA on the license.
    (6) * * *
    (iv) * * *
    (D) Unavoidable circumstances. If a person is claiming that 
unavoidable circumstances prevented him or her from meeting certain 
eligibility requirements for a license under paragraph (k) of this 
section, he or she must provide the information required in the 
particular paragraph of this section authorizing such a claim, and 
include valid evidence of the date the vessel was lost, damaged, or 
otherwise unable to participate in the fishery, and the date a 
documented harvest was made after the vessel was unable to participate 
in the fishery by the unavoidable circumstance.
* * * * *
    (7) * * *
    (ix) Other transfer restrictions. The transfer of a LLP license 
that was issued based on the documented harvests from a vessel that did 
not have an FFP during the period beginning January 1, 1988, through 
October 8, 1998, must be accompanied by the vessel from which the 
documented harvests were made or its replacement vessel, or if the LLP 
license and vessel were separated by transfer prior to February 7, 
1998, then by the vessel that is currently being deployed by the 
license holder. The Regional Administrator will deny a transfer 
application that requests the transfer of a LLP license that was issued 
based on the documented harvests from a vessel that did not have an FFP 
during the period beginning January 1, 1988, through October 8, 1998, 
if the appropriate vessel is not being transferred as part of the same 
transaction. A license holder of an LLP license that was issued based 
on the documented harvests from a vessel that did not have an FFP 
during the period beginning January 1, 1988, through October 8, 1998, 
may replace the vessel from which the documented harvests were made 
with another vessel that meets the vessel designation and MLOA 
requirements specified on the LLP license if the original qualifying 
vessel is lost or destroyed.
* * * * *

    3. 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. 01-23467 Filed 9-21-01; 8:45 am]
BILLING CODE 3510-22-S