[Federal Register Volume 67, Number 171 (Wednesday, September 4, 2002)]
[Proposed Rules]
[Pages 56516-56525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22544]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 020816198-2198-01; I.D. 071202A]
RIN 0648-AP41


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Fishery Management Plan for the Shrimp Fishery off the Southern 
Atlantic States; Amendment 5

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

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS issues this proposed rule to implement Amendment 5 to the 
Fishery Management Plan for the Shrimp Fishery off the Southern 
Atlantic States (FMP). This proposed rule would establish a limited 
access program for the rock shrimp fishery in the exclusive economic 
zone (EEZ) off Georgia and off the east coast of Florida (limited 
access area), establish a minimum mesh size for a rock shrimp trawl net 
in the limited access area, require the use of an approved vessel 
monitoring system (VMS) by vessels allowed to fish for rock shrimp in 
the limited access program, and require an operator of a vessel in the 
rock shrimp fishery in the EEZ off the southern Atlantic states (North 
Carolina through the east coast of Florida) to have an operator permit. 
The intended effects are to minimize additional increases in harvesting 
capacity in the rock shrimp fishery; reduce the bycatch of small, 
unmarketable rock shrimp; enhance compliance with fishery management 
regulations; improve protection of essential fish habitat, including an 
area that contains the last 20 acres (8 hectares) of intact Oculina 
coral remaining in the world; and ensure the long-term economic 
viability of the rock shrimp industry.

DATES: Comments on this proposed rule must be received no later than 5 
p.m., eastern time, on October 21, 2002.

ADDRESSES: Copies of Amendment 5 may be obtained from the South 
Atlantic Fishery Management Council, One Southpark Circle, Suite 306, 
Charleston, SC 29407-4699; phone: 843-571-4366; fax: 843-769-4520; e-
mail: [email protected]. Amendment 5 includes a Final Supplemental 
Environmental Impact Statement, an Initial Regulatory Flexibility 
Analysis, a Regulatory Impact Review, and a Social Impact Assessment/
Fishery Impact Statement.
    Written comments on this proposed rule must be mailed to Dr. Peter 
Eldridge, Southeast Region, NMFS, 9721 Executive Center Drive N., St. 
Petersburg, FL 33702. Comments also may be sent via fax to 727-570-
5583. Comments will not be accepted if submitted via e-mail or 
Internet.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to Robert Sadler, Southeast Regional 
Office, NMFS, 9721 Executive Center Drive N., St. Petersburg, FL 33702, 
and to the Office of Information and Regulatory Affairs, Office of 
Management and Budget (OMB), Washington, DC 20503 (Attention: NOAA Desk 
Officer).

FOR FURTHER INFORMATION CONTACT: Dr. Peter J. Eldridge; phone: 727-570-
5305; fax: 727-570-5583; e-mail: [email protected].

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

Limited Access

Background

    In its March 2001 preliminary qualitative analysis of federally 
managed fisheries, NMFS classified the rock shrimp fishery off the 
southern Atlantic states as one of the fisheries where there are 
indications of over-capacity. With over-capacity as well as open access 
to the fishery, any gains in the health of the stocks would likely 
attract new entrants to the fishery and an increase in harvesting 
capacity by those already in the fishery. This increased effort due to 
unrestricted new entry to the fishery could threaten the long-term 
economic viability of the rock shrimp industry and would increase 
bycatch in the fishery. Accordingly, Amendment 5 proposes a limited 
access program for the fishery off Georgia and the east coast of 
Florida to minimize such adverse impacts. The center of abundance and 
the concentrated commercial fishery for rock shrimp is off northeast 
Florida and extends to the waters off Georgia. To further address 
bycatch in this fishery, NMFS has initiated a voluntary onboard 
observer program consistent with the recommendation in Amendment 5.
    The current requirement for a Federal vessel permit for the rock 
shrimp fishery in the EEZ off the southern Atlantic states, i.e., from 
the Virginia/North Carolina border through the east coast of Florida, 
remains in effect. However, in addition, to participate in the fishery 
off Georgia and the east coast of Florida, vessel owners would be 
required to obtain a limited access endorsement for South Atlantic rock 
shrimp. Limited access endorsements would be required effective 180 
days after the final rule containing this measure is published.

Initial Eligibility for Limited Access Endorsements

    Initially, the Regional Administrator, Southeast Region, NMFS (RA) 
would issue limited access endorsements to owners of vessels that had 
valid Federal permits for South Atlantic rock shrimp on or before 
December 31, 2000, and that had landings of rock shrimp from the South 
Atlantic EEZ of at least 15,000 lb (6,804 kg) during any one of the 
calendar years 1996 through 2000. Vessels that had Federal permits for 
South Atlantic rock shrimp would be determined solely from NMFS' permit 
records. Federal permits were required in the fishery beginning 
November 1, 1996. Claimed landings would be verified from landings data 
in state or Federal database systems that were submitted on or before 
January 31, 2001. Only landings when a vessel had a valid Federal 
permit for rock shrimp, that were harvested from the South Atlantic 
EEZ, and that were landed and sold in compliance with state and Federal 
regulations would be used to establish eligibility.

Credit for Historical Landings

    For the purpose of initial eligibility for a limited access 
endorsement for South Atlantic rock shrimp, the owner of a vessel that 
had a permit for South Atlantic rock shrimp during the qualifying 
period would retain the rock shrimp landings record of that vessel 
during the time of his/her ownership, unless, prior to the publication 
of the final rule implementing this amendment, a sale of the vessel 
included a written agreement stating that credit for those qualifying 
landings was transferred to the new owner. Qualifying landings would be 
landings of at least 15,000 lb (6,804 kg) in any

[[Page 56517]]

one of the calendar years 1996 through 2000. Such transfer of credit 
would be for the vessel's entire record of landings of rock shrimp from 
the South Atlantic during the time of the seller's ownership; no 
partial transfers would be allowed.

Implementation of the Limited Access Program

    To implement the limited access program, the RA would notify each 
owner of a vessel that had a permit for South Atlantic rock shrimp on 
or before December 31, 2000, and each owner of a currently permitted 
vessel in the fishery, of its initial determination of eligibility for 
a limited access endorsement for South Atlantic rock shrimp and provide 
an application for the endorsement. Applications for endorsements would 
have to be postmarked or hand-delivered to the RA not later than 120 
days after the final rule that contains this measure is published. If 
an owner's application for a limited access endorsement is based on 
qualifying landings that were transferred to him/her through a written 
agreement, as discussed in the previous paragraph, the application 
would have to be accompanied by a copy of that agreement and a 
statement of the cost associated with obtaining the catch history.
    If the RA determines that the eligibility requirements for a 
limited access endorsement were not met, the RA would notify the 
applicant, in writing, not later than 30 days prior to the date that a 
limited access endorsement is required in the fishery. An applicant 
would have an opportunity to request reconsideration of the RA's 
determination regarding initial endorsement eligibility. An Application 
Oversight Board would be established to assist in reviewing disputes 
over eligibility to ensure that the criteria for a limited access 
permit are applied to an owner's application in a proper manner.

Transferability of a Limited Access Endorsement

    An owner issued a limited access endorsement could request that the 
endorsement be transferred to another vessel or to another owner by 
submitting an application for transfer to the RA. An owner must report 
any costs associated with such transfer on the application for 
transfer. A transfer of an endorsement to a new owner would include the 
transfer of the vessel's entire catch history of South Atlantic rock 
shrimp to that owner; partial transfers would not be allowed.
    As is the case with all permits, licenses, and endorsements issued 
by the RA, a fee would be charged for each application or request for 
transfer. The amount of the fee would be stated on the application form 
and would be calculated in accordance with NOAA guidelines for 
recovering the Federal costs of administering the program for 
transferring the endorsement.

Restrictions on Renewal of Limited Access Endorsements

    The RA would not reissue a limited access endorsement for South 
Atlantic rock shrimp if the endorsement is revoked or if a required 
application for renewal of the endorsement is not received within 1 
year after the endorsement's expiration date. The Council believes that 
this time frame is adequate for a vessel owner to decide whether to 
continue in the fishery, thus providing the Council information 
necessary to estimate participation levels for the upcoming year, 
effectively manage the fishery, and achieve the stated objectives of 
the FMP. A specific deadline for renewal would also relieve the RA of 
the administrative burden of keeping track of all possible future 
participants in the fishery.
    A limited access endorsement for South Atlantic rock shrimp that is 
inactive for a period of 4 consecutive calendar years would not be 
renewed. For the purpose of this measure, ``inactive'' would mean that 
the vessel with the endorsement had not landed at least 15,000 lb 
(6,804 kg) of rock shrimp from the South Atlantic EEZ in a calendar 
year.
    An endorsement that was not renewed because of inactivity would be 
made available to a vessel owner randomly selected from a list of 
owners who had documented landings of rock shrimp from the South 
Atlantic EEZ prior to 1996, but who did not qualify for an initial 
limited access endorsement. Such owners have at least some history of 
participation in and dependence on this fishery and, therefore, would 
be given higher priority for entering the limited access fishery 
compared to those lacking such history. To be placed on the list, an 
owner would have to submit a written request to the RA postmarked or 
hand-delivered not later than 1 year after the final rule containing 
this measure is published. Documentation of claimed landings would be 
required and would be verified by comparison with state trip ticket or 
dealer records.

Minimum Mesh Size

    Historically, the cod end mesh size commonly used in the rock 
shrimp fishery was 1 7/8 to 2 inches (4.8 to 5.1 cm), stretched mesh. 
Some fishermen are now using smaller mesh or are putting a bag liner 
inside the cod end. This results in the bycatch of juvenile rock 
shrimp, some of which are unmarketable and are discarded dead. This 
proposed rule would establish, in the limited access area, a minimum 
mesh size for the cod end of a rock shrimp trawl of 1 7/8 inches (4.8 
cm) and prohibit the use of smaller-mesh bag liners. This would reduce 
bycatch by allowing escapement of juvenile rock shrimp so that they 
could be caught later at a larger, more profitable size and would 
increase the overall yield from the fishery.

VMS

    This rule would require the use of an operating, NMFS-approved VMS 
by each vessel that has been issued a limited access endorsement for 
South Atlantic rock shrimp when such vessel is on a trip off the 
southern Atlantic states (North Carolina through the east coast of 
Florida). An operating VMS includes an operating mobile transmitting 
unit on the vessel and a functioning communication link between the 
unit and NMFS as provided by a NMFS-approved communication service 
provider.
    NMFS would publish in the Federal Register a list of approved VMS 
mobile transmitting units and associated communications service 
providers that meet the minimum standards for the rock shrimp fishery. 
Originally, Amendment 5 specified required operational VMS 
characteristics, e.g., position accuracy, reporting and transmission 
specifications, etc. However, since the initial development of 
Amendment 5, VMS technology has rapidly evolved. At the Council's June 
2002 meeting, the Council received a VMS briefing from NMFS law 
enforcement staff indicating that VMS units are now available that are 
more effective than those contemplated originally in Amendment 5. Based 
on that new information, the Council approved a motion to allow NMFS as 
much flexibility as possible in establishing the operational 
characteristics of the VMS unit to be implemented in the rock shrimp 
fishery. The Council has revised the applicable VMS text in Amendment 5 
and in this proposed rule, consistent with that motion.
    A vessel that has been issued a limited access endorsement for the 
South Atlantic rock shrimp fishery would be required to have an 
operating VMS commencing 270 days after the final rule implementing 
this amendment

[[Page 56518]]

is published (i.e., 90 days after the limited access endorsement is 
required) or 90 days after publication of the list of approved 
transmitting units and associated communications service providers, 
whichever is later.
    Upon installation of an approved transmitting unit and activation 
of the communication services, a vessel owner or operator would be 
required to submit a statement certifying compliance with an 
installation and activation checklist to NMFS, Office of Enforcement, 
Southeast Region. Such checklist would be available from the NMFS, 
Office of Enforcement, Southeast Region, 9721 Executive Center Drive 
N., St. Petersburg, FL 33702.
    An owner of a vessel would pay for the acquisition, installation, 
and operation of the VMS for his or her vessel, provided that such 
costs do not exceed $1200 for acquisition and initial installation of 
the VMS or $500 for annual communication costs. However, cost to the 
vessel owner for annual communication may be as high as $800 if NMFS 
determines that additional communication is necessary.
    If the cost for acquisition and initial installation of a NMFS-
approved VMS were to exceed $1,200, it is the Council's intent that 
NMFS would be responsible for the cost exceeding that amount. An owner 
may choose to install a more expensive VMS; that is, one with 
additional features that supplement an approved device. Such 
additional, optional features might include software to display vessel 
positions, a message terminal display, a configuration to automatically 
send position reports to a private address, the ability to send and 
receive private e-mail messages, etc. However, it is the Council's 
intent that any costs exceeding the limits specified above, that result 
from such additional, optional features, would not be paid by NMFS.
    The VMS would advise NMFS when and where a vessel was fishing or 
had been fishing. Thus, it would provide effort data and would 
significantly aid in enforcement of areas closed to trawling, 
particularly the Oculina Bank habitat area of particular concern 
(HAPC). There is a critical need to increase the level of surveillance 
in this area as it contains the last 20 acres (8 hectares) of intact 
Oculina coral remaining in the world. All position reports would be 
treated in accordance with NMFS' existing guidelines for confidential 
data.

Operator Permits

    To enhance enforcement of fishery regulations, the Council proposes 
to require operator permits in the South Atlantic rock shrimp fishery. 
``Operator'' is defined as the master or other individual aboard and in 
charge of a vessel. Each vessel that has a Federal permit for the 
fishery would be required to have on board at least one person who has 
an operator permit when the vessel is at sea or offloading. In addition 
to penalties that currently exist for violations of the regulations, an 
operator permit could be sanctioned. For example, an operator whose 
permit is suspended, revoked, or modified pursuant to subpart D of 15 
CFR part 904 would not be allowed aboard any vessel subject to Federal 
fishing regulations in any capacity, if so sanctioned by NOAA, while 
the vessel is at sea or offloading. To enhance enforceability of this 
measure, a vessel's owner and operator would be responsible for 
ensuring that a person with such a suspended, revoked, or modified 
operator permit is not aboard his/her vessel. A list of operators whose 
permits are revoked, suspended, or modified would be readily available 
from the RA.
    Operator permits would be required in the fishery commencing 120 
days after the final rule that contains this measure is published. The 
RA would mail application forms to owners of vessels with permits for 
the South Atlantic rock shrimp fishery, and applications also would be 
available from the RA upon request. Information required on an 
application would include name, address, and other identifying 
information, such as date of birth, height, weight, and hair and eye 
color, of the applicant, and other information necessary for the 
issuance or administration of the permit. In addition, each applicant 
would be required to provide two recent (no more than 1 year old) 
color, passport-sized photographs. A fee would be charged for each 
application. The amount of the fee would be stated on the application 
form and would be calculated in accordance with NOAA guidelines for 
recovering the Federal costs of administering the program for issuing 
operator permits. In general, an operator permit would be valid for a 
3-year period (i.e., from the operator's birth month in year X through 
the operator's birth month in year X+3). However, there are two 
instances in which issuance and/or renewal would probably not 
correspond with the operator's birth month -the one-time issuance of an 
initial permit or a permit not renewed immediately upon its expiration 
(birth month in year X+3). In such cases, the operator's permit would 
expire at the end of the operator's birth month that is between 2 and 3 
years after initial issuance or renewal.
    An operator of a vessel in the South Atlantic rock shrimp fishery 
would be required to present his/her operator permit for inspection 
upon the request of an authorized officer. Because an operator permit 
is a Federal picture identification card issued without verification of 
the information on the application, the operator would be required to 
also present one other form of personal identification that includes a 
picture. This additional verification of identification would help to 
deter use of a fraudulent operator permit.

Availability of Amendment 5

    Additional background and rationale for the measures discussed 
above are contained in Amendment 5. The availability of Amendment 5 was 
announced in the Federal Register on July 25, 2002, (65 FR 48603). 
Written comments on Amendment 5 must be received by September 23, 2002. 
All comments received on Amendment 5 or on this proposed rule during 
their respective comment periods will be addressed in the preamble to 
the final rule.

Classification

    At this time, NMFS has not determined that Amendment 5 that this 
proposed rule would implement is consistent with the national standards 
of the Magnuson-Stevens Act and other applicable laws. NMFS, in making 
that determination, will take into account the data, views, and 
comments received during the comment period on Amendment 5 and in 
response to this proposed rule.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    The Council prepared an initial regulatory flexibility analysis 
that describes the impact this proposed rule, if adopted, would have on 
small entities. The analysis is summarized as follows.
    The number of vessels with permits for the South Atlantic rock 
shrimp fishery varies from year to year but has not exceeded 431. Since 
permits were required in the fishery in 1996, at least 540 different 
vessels have been permitted in the fishery. Similarly, the number of 
vessels that have landed rock shrimp varies from year to year. In 1996, 
the number of active vessels reached an historical peak of 153. From 
1996 through 2000, at least 279 different vessels have had landings of 
South Atlantic rock shrimp. All of the vessels are commercial vessels; 
there is no recreational component of the fishery.

[[Page 56519]]

 All of the commercial vessels that have been permitted in the fishery 
would be affected by this proposed rule. Based on the Small Business 
Administration's current definition of a small entity in the fish 
harvesting sector (annual gross revenues not exceeding $3.5 million), 
the vast majority of these vessels are small entities. One company did 
own as many as 12 permitted vessels during the 1996-2000 time period. 
Since none of these vessels were active in the fishery during these 
years, this company had zero landings and gross revenues from the 
fishery during these years. However, data on the company's operations 
in other fisheries has led to a determination that this company is a 
large entity. To maintain confidentiality, additional, detailed 
information regarding this company's operations cannot be provided.
    At least 111 small entities (vessels) that have been active in the 
fishery are not expected to qualify for the limited access permit and 
could experience some short-term loss in revenue resulting from 
limiting access in the South Atlantic rock shrimp fishery off Georgia 
and Florida. The average loss in gross revenue per vessel would be 
expected to be no larger than $1,365 annually in the short term. 
Vessels that entered the fishery in 2001 could experience higher losses 
in average revenue, though data are not presently available to make 
such a determination. However, it is expected that some of these 
vessels would mitigate this loss by participating in other fisheries. 
Because information is not available on these vessels' economic 
dependence on the rock shrimp fishery, it is not possible to calculate 
the impact of limited access on their profitability. Since the single, 
large entity earned zero gross revenues from the fishery, no measurable 
economic impact would be imposed on this entity as a result of this 
action. Further, this entity would not be subject to other actions only 
applicable to limited access permit holders, and thus would not be 
affected by those actions.
    For the 168 vessels expected to qualify for limited access permits, 
each would be required to pay a $50 fee per permit application. In 
addition, a time burden would be imposed as a result of having to apply 
for the limited access permit. The time burden for completing the 
application is estimated at 20 minutes. According to 2000 data from the 
Bureau of Labor Statistics, the average hourly wage for first-line 
supervisors/managers in the fishing, forestry, and farming industries 
is $16.72. Thus, the monetary value of this time burden is $5.58 per 
vessel. As a result, the total cost of this action per qualifying 
vessel is $55.58, or $9337 for all qualifying vessels. However, since 
these permits will be renewed, via application, biannually rather than 
annually, the total cost per year would be approximately $27.79. In 
cases where vessel owners have qualified as the result of a transfer in 
catch history, documentation would be needed to support a determination 
of eligibility. The time burden associated with compiling such 
documentation is estimated at 1 hour, for an additional one-time cost 
of $16.72 in the first year. Therefore, for these vessels, the monetary 
value of the time burden associated with this action is estimated at 
$19.51 per vessel. Thus, total annual costs would be $44.51 in the 
first year, and $27.79 in years thereafter.
    For vessel owners that do not initially qualify for a limited 
access permit, two additional opportunities exist to obtain such a 
permit. Specifically, the vessel owner may submit a request to the RA 
for reconsideration of an initial determination of non-eligibility. The 
time burden associated with filing such a request is estimated to be 2 
hours. In addition, these vessel owners may submit a request to be 
placed on a list of those desiring the re-issuance of a permit that was 
not renewed in a timely manner by an initial qualifier. The time burden 
associated with filing this request is estimated to be 5 minutes. Thus, 
the monetary value of these time burdens is $35 per vessel. Though it 
is not possible to perfectly predict how many non-qualifiers will 
submit such requests, those owners whose vessels were active in the 
fishery but did not qualify are most likely to submit one or both 
requests. Given that 111 active vessels are not expected to qualify, 
and since these vessels would have also submitted an application and 
therefore paid the requisite and non-refundable $50 fee, the total 
burden per vessel would be $85 for all such vessels, or $9435 in the 
aggregate.
    This proposed action would result in lesser impacts than rejected 
option 2, which would limit eligibility to those who had met the 
criteria prior to December 31, 1999 rather than December 31, 2000. 
Rejected option 2 would exclude an additional 26 vessels, most of which 
were very active in the fishery in 2000, and the average annual short-
term revenue loss per active vessel would increase from $1,365 to 
$4,153. The Council's Rock Shrimp Advisory Panel also supports the 
proposed action. Given the possibility of continued entry of new 
vessels into the fishery and an exacerbation of the current 
overcapacity problem, the no action option (rejected option 1) is not 
acceptable. Rejected option 3 would only enable those who entered the 
fishery after April 4, 1994 to obtain nontransferable permits. Relative 
to the proposed action, this option is more restrictive on recent 
participants and was not supported by industry representatives. Also, 
it is likely that rejected option 3 would not reduce the initial level 
of overcapacity in the fishery. Based on the objectives of the FMP and 
the issues being addressed, the proposed action is superior to the 
rejected alternatives.
    The minimum mesh size requirement applicable to the limited access 
area could increase costs for those vessel owners whose gear does not 
meet the proposed minimum mesh size and who obtain limited access 
endorsements. The gear replacement cost would be expected to be between 
$75 and $80 per net ($150 to $320 per vessel). During the 1996-2000 
time period, active vessels expected to qualify for a limited access 
permit earned between $31,902 and $127,319 in gross revenues per year 
from the rock shrimp fishery. These vessels also typically earn 
revenues from other fisheries, such as the penaeid shrimp fisheries of 
the South Atlantic and Gulf of Mexico. Since the minimum mesh size is 
the predominant mesh size presently being used in the fishery, a 
majority of vessel owners likely will not incur these costs. However, 
for those owners not presently using the minimum mesh size or larger, 
the gear modification expense could represent between 0.1 percent and 1 
percent of their annual gross revenues from this fishery in the first 
year.
    This proposed action would result in gear replacement costs for 
those vessels that utilize trawl nets with a smaller mesh size. 
Compared to the no action option, this measure would impose a higher 
cost on the industry. However, the Council's Rock Shrimp Advisory Panel 
was of the opinion that the replacement cost for the cod end would be 
recovered in the future as overall yields increase from allowing 
recruitment of small shrimp that escape to larger size classes. Also, 
the time saved from not having to cull many small, unmarketable shrimp 
in each haul could translate into more tows per trip. In comparison to 
rejected options 3 and 4, the Advisory Panel offered an opinion that 
the recommended mesh size would be more effective at allowing the 
escapement of small, unmarketable shrimp than the 1 and 3/4-inch mesh 
size. However, the 2-inch mesh size would allow escapement of a much 
higher proportion of marketable shrimp compared to this proposed mesh 
size. Under the assumption that the net replacement cost would be 
recouped

[[Page 56520]]

from higher returns, and the Advisory Panel's recommendation that 1 and 
7/8 inches is the optimal mesh size for this fishery, this proposed 
action is superior to the alternatives considered.
    The requirement for an operating VMS would impose a one-time cost 
to owners who obtain limited access endorsements that would not exceed 
$1,200. This capital cost is expected to be amortized over the average 
life-span of the equipment, presently estimated at 7 years. Thus, the 
annual cost per vessel is approximately $171. In addition, there would 
be some level of recurring operating/repair/maintenance costs and no 
more than $800 in annual communication costs. Therefore, the 
requirement for an operating VMS would decrease a vessel's annual 
profitability by approximately $971. Given the previously noted annual 
gross revenue estimates, the expected annual explicit cost of the VMS 
requirement alone could represent between 0.8 percent and 3 percent of 
these vessels' annual gross revenues from the rock shrimp fishery.
    In addition, time burdens would be imposed as a result of the VMS 
requirement. Specifically, the time to install the VMS is estimated to 
be 4 hours; the time to complete and submit a statement certifying 
compliance with the installation and activation checklist is estimated 
to be 15 minutes; annual maintenance is estimated to be 2 hours each 
year; and the time to transmit position reports is estimated to be 14 
minutes per day at sea. Current information suggests that the average, 
annual number of days at sea is approximately 200 for qualifying 
vessels active in this fishery. As such, this particular time burden is 
estimated at 2800 minutes or 46.67 hours per vessel. Therefore, the 
total time burden associated with VMS is approximately 53 hours per 
vessel in the first year, the monetary value of which is approximately 
$883 per vessel. In the years thereafter, only the time burdens 
associated with annual maintenance and the time to transmit position 
reports would be incurred. Thus, the time burden per vessel in later 
years would be 48.67 hours, the monetary value of which is 
approximately $813 annually per vessel. By combining the explicit and 
implicit costs, the total annual cost of this action is $1854 per 
vessel in the first year, and $1784 per vessel in later years, or 
$311,472 and $299,712 annually for all qualifying vessels.
    This proposed action would likely result in higher costs than 
rejected option 3, under which only vessels with a past fishery 
violation would be required to use VMS, as opposed to all vessels. The 
use of an approved vessel monitoring system is necessary to protect 
essential fish habitat and essential fish habitat areas of particular 
concern. Illegal use of rock shrimp trawls within the Oculina Bank can 
result in damage to bottom habitat, as emphasized in a recent report 
presented to the Council on this topic. This latest report indicates 
that only 20 acres of Oculina coral remain intact, not only in this 
area, but in the world. Requiring rock shrimp vessels to carry an 
approved VMS unit will improve compliance and allow the rock shrimp 
fishermen to demonstrate that they are not fishing in any closed areas. 
Currently, the probability of detecting fishing in the Oculina Bank 
HAPC is low, given the distance from shore and the frequency of Coast 
Guard patrols in this area. This technology will significantly improve 
the detection of fishery violations in this closed area. Thus, this 
option is superior to the no action option and rejected option 3. 
Rejected option 3 would only provide coverage for some vessels in the 
industry and would not be as effective as the preferred alternative in 
improving compliance. In comparison to rejected option 2, the VMS 
system requirements should be specified in order to ensure that the 
utilized system will ensure sufficient surveillance of vessel 
activities. In this respect, the proposed action is preferable to 
rejected option 2. Also, the proposed action establishes a cap on the 
cost per vessel for purchase of the VMS unit and annual communications. 
Based on these facts, the proposed action is superior to the 
alternatives considered.
    The requirement for operator permits in the South Atlantic rock 
shrimp fishery would increase costs to owners who operate their own 
vessels and to individual non-owning operators. The cost of a permit is 
expected to be not more than $50 and would generally be incurred once 
every 3 years, for an approximate cost per year of $16.67. Thus, the 
total explicit cost imposed on all qualifiers combined in the first 
year would be approximately $8400. The time burden of applying for this 
permit is estimated to be 60 minutes. In monetary terms, this time 
burden equates to $8.36 per vessel operator, or $2.79 per year. As a 
result of this action, the annual total cost per qualifying vessel is 
$19.46, or $3270 for all qualifying vessels.
    This burden would also be imposed on vessel operators in the open 
access component of the fishery (i.e., the Carolinas), which could 
consist of as many as 24 additional vessels. If the single, large 
entity eventually chose to participate in the open access component of 
the fishery, it would also have to incur these expenses. Since the cost 
is constant on a per-vessel basis, disproportional impacts would not 
occur. In any case, for participants in the open access component of 
the fishery, these costs are unlikely to substantially reduce 
profitability.
    This proposed action would result in higher costs than the no 
action option (rejected option 1) since it would require an operator's 
permit, estimated to cost $50 per operator, that would be valid for 
three years. The Council's Rock Shrimp Advisory Panel recommended 
operator permits to assist in reducing the cost of penalties to the 
industry from federal fishery management violations. It is expected 
that an operator's permit requirement will improve compliance with 
fisheries management regulations. Even though rejected option 2, which 
only requires an operator's permit for captains who do not own the 
vessel they operate, would result in a lower cost to the industry, it 
would not eliminate the possibility that a vessel owner who had a 
vessel permit sanction for a federal fishery violation could obtain an 
operator's permit and work onboard another rock shrimp vessel. Thus, 
the proposed action is preferable to the rejected alternatives.
    Overall, the total costs of these actions on active, non-qualifying 
vessels could be as high as $1450 per vessel, or $160,950 in the 
aggregate, in the short-term. For the vessel owners who qualify for a 
limited access permit, the total annual costs of these actions could be 
as high as $2238 per vessel in the first year, and $1831 thereafter. 
Given that active vessels expected to qualify for a limited access 
permit earned between $31,902 and $127,319 in gross revenues per year 
from the rock shrimp fishery, such costs could represent between 1.8 
percent and 7.0 percent of these revenues in the first year, and 
between 1.4 percent and 5.7 percent in years thereafter. Depending on 
the profit margins associated with activity in this fishery, these 
losses could be considered substantial, at least for some of the 
affected small entities. However, it is expected that future gains in 
the fishery would offset the short-term costs to these small entities. 
The Council's industry representatives (Rock Shrimp Advisory Panel) 
recommended that the Council consider a limited access program to avoid 
a situation where the current overcapacity problem, the primary source 
of which is the large number of latent permits, is exacerbated and thus 
increases the risk that firms dependent on rock shrimp could be forced 
out of the fishery or out of

[[Page 56521]]

business. The Rock Shrimp Advisory Panel requested operator's permits 
to protect their interests since many owners do not operate their own 
vessels, and this measure would allow them to hire captains who are 
likely to be more compliant with fishery regulations. Vessel owners are 
also liable for any fishery violations even if they are not on board 
the vessel during the period when the infraction occurs; however, this 
is true regardless of operator permits. There have been a number of 
instances of illegal fishing in an important closed fishing area, the 
Oculina Bank HAPC, by vessels in the rock shrimp fishery. Given the 
dwindling law enforcement resources for patrolling these areas, which 
are several miles offshore, the Council recommended that vessels in 
this fishery be required to use an approved VMS since they regularly 
operate in close proximity to the Oculina Bank HAPC. There is a 
critical need to implement this measure for increased protection of the 
Oculina coral habitat. A recently completed research survey concluded 
that this area contains the last 20 acres (8 hectares) of intact 
Oculina coral remaining in the world. To the extent enforcement is 
increased and trawling in the Oculina Bank HAPC is eliminated, there 
will be corresponding benefits in terms of protecting Oculina coral, 
habitat, and juvenile rock shrimp.
    No duplicative, overlapping, or conflicting Federal rules have been 
identified.
    A copy of the analysis is available from the Council (see 
ADDRESSES).
    This rule contains new collection-of-information requirements 
subject to the Paperwork Reduction Act (PRA)--namely, application for a 
limited access endorsement for the South Atlantic rock shrimp fishery, 
documentation of eligibility through a written agreement, transfer of a 
limited access endorsement, installation and operation of a VMS by a 
vessel that has been issued a limited access endorsement, and 
application for an operator permit for the South Atlantic rock shrimp 
fishery in the EEZ off the southern Atlantic states (North Carolina 
through the east coast of Florida). NMFS has submitted these 
collection-of-information requirements to OMB for approval. The average 
public reporting burdens are estimated as follows: For the limited 
access endorsement, 20 minutes for each application for the endorsement 
or for the transfer of an endorsement, 1 hour for documentation of 
eligibility submitted with the application, 2 hours for each request 
for reconsideration of the RA's determination regarding initial 
endorsement eligibility, and 5 minutes for each request to be placed on 
the list of owners desiring consideration for reissue of an endorsement 
that had not been renewed; for the VMS, 4 hours per installation, 15 
minutes for completion and submission of the statement certifying 
compliance with the installation and activation checklist, 14 minutes 
per day at sea for transmittal of position reports, and 2 hours for 
annual maintenance; and for the operator permit, 60 minutes for each 
application.
    The estimates of public reporting burdens for these collections of 
information include the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information. Public comment 
is sought regarding: whether this proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information shall have practical utility; the 
accuracy of the burden estimate; ways to enhance the quality, utility, 
and clarity of the information to be collected; and ways to minimize 
the burden of the collection of information, including through the use 
of automated collection techniques or other forms of information 
technology. Send comments regarding these burden estimates or any other 
aspects of the collections of information to NMFS and OMB (see 
ADDRESSES).
    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall a person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the PRA unless that collection of information displays a currently 
valid OMB control number.

List of Subjects in 50 CFR Part 622

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

    Dated: August 28, 2002.
Rebecca Lent
Deputy Assistant Administrator for Regulatory ProgramsNational Marine 
Fisheries Service

    For the reasons set out in the preamble, 50 CFR part 622 is 
proposed to be amended as follows:

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

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

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

    2. In Sec. 622.4, paragraph (a)(2)(viii), (c), (f) through (j), and 
(l) are revised and paragraphs (a)(5) and (b)(4) are added to read as 
follows:


Sec. 622.4  Permits and fees.

    (a) * * *
    (2) * * *
    (viii) South Atlantic rock shrimp. (A) For a person aboard a vessel 
to fish for rock shrimp in the South Atlantic EEZ or possess rock 
shrimp in or from the South Atlantic EEZ, a commercial vessel permit 
for rock shrimp must be issued to the vessel and must be on board. (See 
paragraph (a)(5) of this section for the requirements for operator 
permits for the South Atlantic rock shrimp fishery.)
    (B) In addition, effective 180 days after the final rule containing 
this measure is published, for a person aboard a vessel to fish for 
rock shrimp in the South Atlantic EEZ off Georgia or off Florida or 
possess rock shrimp in or from the South Atlantic EEZ off Georgia or 
off Florida, a limited access endorsement for South Atlantic rock 
shrimp must be issued to the vessel and must be on board. See 
Sec. 622.19 for limitations on the issuance, transfer, renewal, and 
reissuance of a limited access endorsement for South Atlantic rock 
shrimp.
* * * * *
    (5) Operator permits. (i) For a person to be an operator of a 
vessel fishing for rock shrimp in the South Atlantic EEZ or possessing 
rock shrimp in or from the South Atlantic EEZ, or to be an operator of 
a vessel that has a valid permit for South Atlantic rock shrimp issued 
under this section, such person must have and carry on board a valid 
operator permit and one other form of personal identification that 
includes a picture (driver's license, passport, etc.).
    (ii) An owner of a vessel that fishes for rock shrimp in the South 
Atlantic EEZ or possesses rock shrimp in or from the South Atlantic 
EEZ, and an owner of a vessel that has a valid permit for rock shrimp 
issued under this section, must ensure that at least one person with a 
valid operator permit for the South Atlantic rock shrimp fishery is 
aboard while the vessel is at sea or offloading.
    (b) * * *
    (4) Operator permits. An applicant for an operator permit must 
provide the following:
    (i) Name, address, telephone number, and other identifying 
information specified on the application.
    (ii) Two recent (no more than 1-yr old), color, passport-size 
photographs.
    (iii) Any other information that may be necessary for the issuance 
or

[[Page 56522]]

administration of the permit, as specified on the application form.
    (c) Change in application information. The owner or operator of a 
vessel with a permit, a person with a coral permit, a person with an 
operator permit, or a dealer with a permit must notify the RA within 30 
days after any change in the application information specified in 
paragraph (b) of this section. The permit is void if any change in the 
information is not reported within 30 days.
* * * * *
    (f) Duration. A permit remains valid for the period specified on it 
unless it is revoked, suspended, or modified pursuant to subpart D of 
15 CFR part 904 or, in the case of a vessel or dealer permit, the 
vessel or dealership is sold.
    (g) Transfer--(1) Vessel permits, licenses, and endorsements and 
dealer permits. A vessel permit, license, or endorsement or a dealer 
permit issued under this section is not transferable or assignable, 
except as provided in paragraph (m) of this section for a commercial 
vessel permit for Gulf reef fish, in paragraph (n) of this section for 
a fish trap endorsement, in paragraph (o) of this section for a Gulf 
king mackerel gillnet endorsement, in paragraph (p) of this section for 
a red snapper license, in paragraph (q) of this section for a king 
mackerel permit, in Sec. 622.17(c) for a commercial vessel permit for 
golden crab, in Sec. 622.18(e) for a commercial vessel permit for South 
Atlantic snapper-grouper, or in Sec. 622.19(e) for a commercial vessel 
permit for South Atlantic rock shrimp. A person who acquires a vessel 
or dealership who desires to conduct activities for which a permit, 
license, or endorsement is required must apply for a permit, license, 
or endorsement in accordance with the provisions of this section. If 
the acquired vessel or dealership is currently permitted, the 
application must be accompanied by the original permit and a copy of a 
signed bill of sale or equivalent acquisition papers.
    (2) Operator permits. An operator permit is not transferable.
    (h) Renewal--(1) Vessel permits, licenses, and endorsements and 
dealer permits. Although a vessel permit, license, or endorsement or a 
dealer permit required by this section is issued on an annual basis, an 
application for its renewal is required only every 2 years. In the 
interim years, renewal is automatic (without application) for a vessel 
owner or a dealer who has met the specific requirements for the 
requested permit, license, or endorsement; who has submitted all 
reports required under the Magnuson-Stevens Act; and who is not subject 
to a sanction or denial under paragraph (j) of this section. An owner 
or dealer whose permit, license, or endorsement is expiring will be 
mailed a notification by the RA approximately 2 months prior to its 
expiration. That notification will advise the status of the renewal. 
That is, the notification will advise that the renewal will be issued 
without further action by the owner or dealer (automatic renewal); that 
the permit, license, or endorsement is ineligible for automatic 
renewal; or that a new application is required.
    (i) If eligible for automatic renewal. If the RA's notification 
indicates that the owner's or dealer's permit, license, or endorsement 
is eligible for automatic renewal, the RA will mail the automatically 
renewed permit, license, or endorsement approximately 1 month prior to 
expiration of the old permit, license, or endorsement.
    (ii) If ineligible for automatic renewal. If the RA's notification 
indicates that the owner's or dealer's permit, license, or endorsement 
is ineligible for automatic renewal, the notification will specify the 
reasons and will provide an opportunity for correction of any 
deficiencies. If the owner or dealer does not correct such deficiencies 
within 60 days after the date of the RA's notification, the renewal 
will be considered abandoned. A permit, license, or endorsement that is 
not renewed within the applicable deadline will not be reissued.
    (iii) If new application is required. If the RA's notification 
indicates that a new application is required, the notification will 
include a preprinted renewal application. If the RA receives an 
incomplete application, the RA will notify the applicant of the 
deficiency. If the applicant fails to correct the deficiency within 30 
days of the date of the RA's letter of notification, the application 
will be considered abandoned. A permit, license, or endorsement that is 
not renewed within the applicable deadline will not be reissued.
    (iv) If notification is not received. A vessel owner or dealer must 
contact the RA if he/she does not receive a notification from the RA 
regarding status of renewal of a permit, license, or endorsement by 45 
days prior to expiration of the current permit.
    (2) Operator permits. An operator permit required by this section 
is issued for a period not longer than 3 years. A permit not renewed 
immediately upon its expiration would expire at the end of the 
operator's birth month that is between 2 and 3 years after issuance. 
For renewal, a new application must be submitted in accordance with 
paragraph (b)(4) of this section.
    (i) Display. A vessel permit, license, or endorsement issued under 
this section must be carried on board the vessel. A dealer permit 
issued under this section, or a copy thereof, must be available on the 
dealer's premises. In addition, a copy of the dealer's permit must 
accompany each vehicle that is used to pick up from a fishing vessel 
reef fish harvested from the Gulf EEZ. The operator of a vessel must 
present the vessel permit, license, or endorsement for inspection upon 
the request of an authorized officer. A dealer or a vehicle operator 
must present the permit or a copy for inspection upon the request of an 
authorized officer. An operator of a vessel in the South Atlantic rock 
shrimp fishery must present his/her operator permit and one other form 
of personal identification that includes a picture (driver's license, 
passport, etc.) for inspection upon the request of an authorized 
officer.
    (j) Sanctions and denials. (1) A permit, license, or endorsement 
issued pursuant to this section may be revoked, suspended, or modified, 
and a permit, license, or endorsement application may be denied, in 
accordance with the procedures governing enforcement-related permit 
sanctions and denials found at subpart D of 15 CFR part 904.
    (2) A person whose operator permit is suspended, revoked, or 
modified may not be aboard any fishing vessel subject to Federal 
fishing regulations in any capacity, if so sanctioned by NOAA, while 
the vessel is at sea or offloading. The vessel's owner and operator are 
responsible for compliance with this measure. A list of operators whose 
permits are revoked or suspended may be obtained from the RA.
* * * * *
    (l) Replacement. A replacement permit, license, or endorsement may 
be issued. An application for a replacement permit, license, or 
endorsement is not considered a new application. An application for a 
replacement operator permit must include two new photographs, as 
specified in paragraph (b)(4)(ii) of this section.
* * * * *

    3. In Sec. 622.7, paragraphs (b) and (c) are revised and paragraph 
(bb) through (ee) are added to read as follows:


Sec. 622.7  Prohibitions.

* * * * *
    (b) Falsify information on an application for a permit, license, or 
endorsement or submitted in support of such application, as specified 
in

[[Page 56523]]

Sec. 622.4(b), (g), (p), or (q), or in Sec. 622.18 or 622.19.
    (c) Fail to display a permit, license, or endorsement, or other 
required identification, as specified in Sec. 622.4(i).
* * * * *
    (bb) Make a false statement, oral or written, to an authorized 
officer regarding the installation, use, operation, or maintenance of a 
vessel monitoring system (VMS) unit or communication service provider.
    (cc) Operate or own a vessel that is required to have a permitted 
operator aboard when the vessel is at sea or offloading without such 
operator aboard, as specified in Sec. 622.4(a)(5)(i) and (ii).
    (dd) When a vessel that is subject to Federal fishing regulations 
is at sea or offloading, own or operate such vessel with a person 
aboard whose operator permit is revoked, suspended, or modified.
    (ee) Fail to comply with any provision related to a vessel 
monitoring system as specified in Sec. 622.9, including but not limited 
to, requirements for use, installation, activation, access to data, 
procedures related to interruption of VMS operation, and prohibitions 
on interference with the VMS.

    4. In subpart A, Sec. 622.9 is added to read as follows:


Sec. 622.9  Vessel monitoring systems (VMSs).

    (a) Requirement for use. An owner or operator of a vessel that has 
been issued a limited access endorsement for South Atlantic rock shrimp 
must ensure that such vessel has a NMFS-approved, operating VMS on 
board when on a trip in the South Atlantic. An operating VMS includes 
an operating mobile transmitting unit on the vessel and a functioning 
communication link between the unit and NMFS as provided by a NMFS-
approved communication service provider.
    (b) Installing and activating the VMS. Only a VMS that has been 
approved by NMFS for use in the South Atlantic rock shrimp fishery may 
be used. When installing and activating the NMFS-approved VMS, or when 
reinstalling and reactivating such VMS, the vessel owner or operator 
must--
    (1) Follow procedures indicated on an installation and activation 
checklist, which is available from NMFS, Office of Enforcement, 
Southeast Region, St. Petersburg, FL; phone: 727-570-5344; and
    (2) Submit to NMFS, Office of Enforcement, Southeast Region, St. 
Petersburg, FL, a statement certifying compliance with the checklist, 
as prescribed on the checklist.
    (c) Interference with the VMS. No person may interfere with, tamper 
with, alter, damage, disable, or impede the operation of the VMS, or 
attempt any of the same.
    (d) Interruption of operation of the VMS. When a vessel's VMS is 
not operating properly, the owner or operator must immediately contact 
NMFS, Office of Enforcement, Southeast Region, St. Petersburg, FL, and 
follow instructions from that office. If notified by NMFS that a 
vessel's VMS is not operating properly, the owner and operator must 
follow instructions from that office. In either event, such 
instructions may include, but are not limited to, manually 
communicating to a location designated by NMFS the vessel's positions 
or returning to port until the VMS is operable.
    (e) Access to position data. As a condition of authorized fishing 
for or possession of South Atlantic rock shrimp in or from the South 
Atlantic EEZ, a vessel owner or operator subject to the requirements 
for a VMS in this section must allow NMFS, the USCG, and their 
authorized officers and designees access to the vessel's position data 
obtained from the VMS.

    5. In subpart B, Sec. 622.19 is added to read as follows:


Sec. 622.19  South Atlantic rock shrimp limited access.

    (a) Applicability. Effective 180 days after the final rule to 
implement this section is published, for a person aboard a vessel to 
fish for rock shrimp in the South Atlantic EEZ off Georgia or off 
Florida or possess rock shrimp in or from the South Atlantic EEZ off 
Georgia or off Florida, a limited access endorsement for South Atlantic 
rock shrimp must be issued to the vessel and must be on board.
    (b) Initial eligibility. A vessel is eligible for an initial 
limited access endorsement for South Atlantic rock shrimp if the owner-
-
    (1) Owned a vessel with a Federal permit for South Atlantic rock 
shrimp on or before December 31, 2000, and
    (2) Landed at least 15,000 lbs (6,804 kg) of South Atlantic rock 
shrimp in any one of the calendar years 1996 through 2000 from a vessel 
that he/she owned.
    (c) Determinations of eligibility--(1) Permit history. The sole 
basis for determining whether a vessel had a Federal permit for South 
Atlantic rock shrimp, and that vessel's owner during the time it was 
permitted, is the RA's permit records. A person who believes he/she 
meets the permit history criterion based on ownership of a vessel under 
a different name, as may have occurred when ownership changed from 
individual to corporate or vice versa, must document his/her ownership.
    (2) Landings. (i) Landings of rock shrimp from the South Atlantic 
EEZ during the qualifying period are verified from landings data that 
were submitted on or before January 31, 2001 and are in state or 
Federal database systems--no additional landings data will be accepted.
    (ii) Only landings when a vessel had a valid Federal permit for 
rock shrimp, that were harvested from the South Atlantic EEZ, and that 
were landed and sold in compliance with state and Federal regulations 
will be used to establish eligibility.
    (iii) For the purpose of eligibility for an initial limited access 
endorsement for South Atlantic rock shrimp, the owner of a vessel that 
had a permit for South Atlantic rock shrimp during the qualifying 
period retains the rock shrimp landings record of that vessel during 
the time of his/her ownership, unless, prior to the publication of the 
final rule implementing this amendment, a sale of the vessel includes a 
written agreement that credit for qualifying landings is transferred to 
the new owner. Qualifying landings are landings of at least 15,000 lb 
(6,804 kg) of rock shrimp harvested from the South Atlantic EEZ in any 
one of the calendar years 1996 through 2000. Such transfer of credit 
must be for the vessel's entire record of landings of rock shrimp from 
the South Atlantic during the time of the seller's ownership; no 
partial transfers are allowed.
    (d) Implementation procedures--(1) Notification of status. On or 
about 60 days after the final rule to implement this section is 
published, the RA will notify each owner of a vessel that had a permit 
for South Atlantic rock shrimp on or before December 31, 2000, and each 
owner of a vessel currently permitted for South Atlantic rock shrimp, 
of the RA's initial determination of eligibility for a limited access 
endorsement for South Atlantic rock shrimp. The notification will 
include a determination regarding the 15,000-lb (6,804-kg) threshold 
level for the endorsement. If the landings in the combined state and 
Federal databases do not meet the 15,000-lb (6,804-kg) threshold for 
any of the qualifying years, the landings in each of the qualifying 
years, as shown in those databases, will be included. Each notification 
will include an application for such endorsement. Addresses for 
notifications will be based on the RA's permit records. Each owner of a 
vessel that had a permit for South Atlantic rock shrimp on or before 
December 31, 2000, and each owner of a currently

[[Page 56524]]

permitted vessel, who does not receive notification by the date that is 
75 days after the final rule to implement this section is published 
must advise the RA of non-receipt within 15 days thereafter.
    (2) Applications. (i) An owner of a vessel who desires a limited 
access endorsement for South Atlantic rock shrimp must submit an 
application for such endorsement postmarked or hand-delivered not later 
than 120 days after the final rule containing this measure is 
published. Failure to apply in a timely manner will preclude issuance 
of an endorsement even if the vessel owner meets the eligibility 
criteria for the endorsement.
    (ii) An applicant who agrees with the RA's initial determination of 
eligibility does not need to provide documentation of eligibility with 
his/her application.
    (iii) An applicant who disagrees with the RA's initial 
determination of eligibility must provide documentation of eligibility 
with his/her application. Such documentation must include the name and 
official number of the vessel permitted for South Atlantic rock shrimp 
and the dates, quantities, trip tickets, and purchasing dealers for 
specific landings claimed for the vessel. In addition, if an owner's 
application for a limited access endorsement is based on qualifying 
landings that were transferred to him/her through a written agreement, 
as discussed in paragraph (c)(2)(iii) of this section, the application 
must be accompanied by a copy of that agreement and a statement of the 
cost associated with obtaining the catch history. Documentation and 
other information submitted on or with an application are subject to 
verification by comparison with state or Federal records and 
information. If such documentation and information cannot be verified 
from state or Federal records and information, the documentation and 
other information will be rejected. Submission of false documentation 
or information may disqualify an owner from obtaining an initial 
limited access endorsement for South Atlantic rock shrimp and is a 
violation of the regulations in this part.
    (iv) If an application that is postmarked or hand delivered in a 
timely manner is incomplete, the RA will notify the applicant of the 
deficiency. If the applicant fails to correct the deficiency within 20 
days of the date of the RA's notification, the application will be 
considered abandoned.
    (3) Issuance. If a complete application is submitted in a timely 
manner and the eligibility requirements specified in paragraph (b) of 
this section are met, the RA will take action as follows:
    (i) If a qualified applicant owns a vessel that has a valid permit 
for South Atlantic rock shrimp, the RA will issue an initial limited 
access endorsement for South Atlantic rock shrimp and mail it to the 
vessel owner prior to the date that such endorsement is required in the 
fishery.
    (ii) If a qualified applicant does not currently own a vessel, the 
RA will inform him/her of qualification, but no endorsement will be 
issued. Such qualified applicant must apply for a permit and 
endorsement for a vessel that he/she owns, or transfer the rights to 
the endorsement to an owner of a vessel, prior to the date that is 2 
years after such endorsement is required in the fishery. After that 
date, the rights to an initial limited access endorsement for South 
Atlantic rock shrimp that were based on the qualification will expire. 
A qualified applicant who desires to transfer the rights to an initial 
endorsement to the owner of a vessel must submit an application 
requesting such transfer to the RA. Such transfer of rights will 
include transfer of credit for the vessel's entire record of landings 
of rock shrimp from the South Atlantic during the time of the qualified 
applicant's ownership.
    (4) Reconsideration. (i) If the eligibility requirements specified 
in paragraph (b) of this section are not met, the RA will notify the 
applicant, in writing, not later than 30 days prior to the date that a 
limited access endorsement is required in the fishery. The notification 
will include the reason for the determination that the eligibility 
requirements were not met. An applicant may request reconsideration of 
the RA's determination regarding initial endorsement eligibility by 
submitting a written request for reconsideration to the RA. Such 
request must be postmarked or hand-delivered not later than 240 days 
after the final rule containing this measure is published and must 
provide additional written documentation supporting eligibility for the 
endorsement.
    (ii) Upon receipt of a request for reconsideration, the RA will 
forward the initial application, the RA's response to that application, 
the request for reconsideration, and pertinent records to an 
Application Oversight Board consisting of state directors (or their 
designees) from each state in the Council's area of jurisdiction. Upon 
request, a vessel owner may make a personal appearance before the 
Application Oversight Board.
    (iii) If reconsideration by the Application Oversight Board is 
requested, such request constitutes the applicant's written 
authorization under section 402(b)(1)(F) of the Magnuson-Stevens Act 
for the RA to make available to the members of the Application 
Oversight Board such confidential catch and other records as are 
pertinent to the matter under reconsideration.
    (iv) The Application Oversight Board may only deliberate whether 
the eligibility criteria specified in paragraph (b) of this section 
were applied correctly in the applicant's case, based solely on the 
available record, including documentation submitted by the applicant. 
The Application Oversight Board may not consider whether an applicant 
should have been eligible for a vessel permit because of hardship or 
other factors. The Application Oversight Board members will provide 
individual recommendations for each application for reconsideration to 
the RA.
    (v) The RA will make a final decision based on the eligibility 
criteria specified in paragraph (b) of this section and the available 
record, including documentation submitted by the applicant, and the 
recommendations and comments from members of the Application Oversight 
Board. The RA may not consider whether an applicant should have been 
eligible for a vessel permit because of hardship or other factors. The 
RA will notify the applicant of the decision and the reason for it, in 
writing, within 15 days of receiving the recommendations from the 
Application Oversight Board members. The RA's decision will constitute 
the final administrative action by NMFS.
    (e) Transfer of an endorsement. A limited access endorsement for 
South Atlantic rock shrimp is valid only for the vessel and owner named 
on the permit/endorsement. To change either the vessel or the owner, an 
application for transfer must be submitted to the RA. An owner of a 
vessel with an endorsement may request that the RA transfer the 
endorsement to another vessel owned by the same entity, to the same 
vessel owned by another entity, or to another vessel with another 
owner. A transfer of an endorsement under this paragraph will include 
the transfer of the vessel's entire catch history of South Atlantic 
rock shrimp to a new owner; no partial transfers are allowed.
    (f) Renewal. The RA will not reissue a limited access endorsement 
for South Atlantic rock shrimp if the endorsement is revoked or if the 
RA does not receive a complete application for renewal of the 
endorsement within 1 year after the endorsement's expiration date.
    (g) Non-renewal of inactive endorsements. In addition to the 
sanctions and denials specified in Sec. 622.4(j)(1), a limited access

[[Page 56525]]

endorsement for South Atlantic rock shrimp that is inactive for a 
period of 4 consecutive calendar years will not be renewed. For the 
purpose of this paragraph, ``inactive'' means that the vessel with the 
endorsement has not landed at least 15,000 lb (6,804 kg) of rock shrimp 
from the South Atlantic EEZ in a calendar year.
    (h) Reissuance of non-renewed permits. A permit that is not renewed 
under paragraph (g) of this section will be made available to a vessel 
owner randomly selected from a list of owners who had documented 
landings of rock shrimp from the South Atlantic EEZ prior to 1996 but 
who did not qualify for an initial limited access endorsement. To be 
placed on the list, an owner must submit a written request to the RA 
postmarked or hand-delivered not later than 1 year after the final rule 
containing this measure is published. The written request must contain 
documentation of each specific landing claimed, i.e., date, quantity of 
rock shrimp, name and official number of the harvesting vessel, 
ownership of the vessel at the time of landing, and name and address of 
the purchasing dealer. Claimed landings that are not verified by 
comparison with state trip ticket or dealer records will not be 
recognized.

    6. In Sec. 622.41, the heading of paragraph (g)) is revised and 
paragraph (j) is added to read as follows:


Sec. 622.41  Species specific limitations.

* * * * *
    (g) Penaeid shrimp in the South Atlantic * * *
* * * * *
    (j) Rock shrimp in the South Atlantic off Georgia and Florida. The 
minimum mesh size for the cod end of a rock shrimp trawl net in the 
South Atlantic EEZ off Georgia and Florida is 1 7/8 inches (4.8 cm), 
stretched mesh. This minimum mesh size is required in at least the last 
40 meshes forward of the cod end drawstring (tie-off rings), and 
smaller-mesh bag liners are not allowed. A vessel that has a trawl net 
on board that does not meet these requirements may not possess a rock 
shrimp in or from the South Atlantic EEZ off Georgia and Florida.
[FR Doc. 02-22544 Filed 9-3-02; 8:45 am]
BILLING CODE 3510-22-S