[Federal Register Volume 68, Number 103 (Thursday, May 29, 2003)]
[Rules and Regulations]
[Pages 31988-31990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13419]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 030314060-3126-02; I.D. 021003E]
RIN 0648-AQ57


Fisheries of the Northeastern United States; Atlantic Mackerel, 
Squid and Butterfish Fisheries; Framework Adjustment 3

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

ACTION: Final rule.

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SUMMARY: NMFS issues this final rule to implement measures contained in 
Framework Adjustment 3 (Framework 3) to the Atlantic Mackerel, Squid, 
and

[[Page 31989]]

Butterfish Fishery Management Plan (FMP). This action extends the 
limited entry program for the Illex squid fishery for an additional 
year and is intended to further the objectives of the FMP and the 
Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act).

DATES: Effective June 30, 2003.

ADDRESSES: Copies of Framework 3, including the Environmental 
Assessment (EA), Regulatory Impact Review (RIR) and Final Regulatory 
Flexibility Analysis (FRFA) are available upon request from Daniel T. 
Furlong, Executive Director, Mid-Atlantic Fishery Management Council, 
300 South New Street, Dover, DE 19904-6790. The EA/RIR/FRFA is 
accessible via the Internet at http://www.nero.noaa.gov/ro/doc/com.htm.

FOR FURTHER INFORMATION CONTACT: Paul H. Jones, Fishery Policy Analyst, 
978-281-9273, fax 978-281-9135, e-mail [email protected].

SUPPLEMENTARY INFORMATION: In 1997, Amendment 5 to the FMP established 
a limited entry program for the Illex squid fishery in response to a 
concern that fishing capacity could otherwise expand to overexploit the 
stock. At the time the program was established, there was a concern 
that the capacity of the limited entry vessels might prove, over time, 
to be insufficient to fully exploit the annual quota. In response to 
this concern, a 5-year sunset provision was placed on the Illex squid 
limited entry program. Framework 2 to the FMP extended the Illex squid 
moratorium for 1 year, and it is currently scheduled to end on July 1, 
2003. Since the implementation of the limited entry program, the Illex 
squid fishery's performance has demonstrated that the current fleet 
possesses the capacity to harvest the long-term potential yield from 
this fishery. The Mid-Atlantic Fishery Management Council (Council) 
must prepare an amendment to the FMP (Amendment 9) to evaluate whether 
or not the limited entry program should be made permanent. In the 
meantime, this action extends the Illex squid moratorium through July 
1, 2004, to prevent overcapitalization while Amendment 9 is being 
prepared and considered by the Council. This extension would comply 
with the criteria in section 303(b)(6) of the Magnuson-Stevens Act. The 
extension would allow the Council additional time to consider long-term 
management for the Illex squid fishery, including the limited entry 
program. Vessels that took small quantities of Illex squid in the past 
may continue to do so under the incidental catch provision of the FMP.

Comments and Responses

    The Council developed Framework 3 under the framework abbreviated 
rulemaking procedure codified at 50 CFR part 648, subpart B. This 
procedure provided the public with the opportunity to comment on the 
proposed actions at Council meetings held in October and December 2002. 
In addition, the proposed rule provided an opportunity for public 
comment. Two commenters submitted one comment on the proposed rule.
    Comment: The commenters supported extending the Illex squid 
moratorium through July 1, 2004, while Amendment 9 is being prepared 
and considered by the Council.
    Response: This final rule implements the proposed measure.
    There were no changes from the proposed rule.

Classification

    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    The Council and NMFS prepared a FRFA for this action. Two comments 
were submitted on the proposed rule, but were not specific to the 
initial regulatory flexibility analysis (IRFA) or economic impacts of 
the rule. No changes were made to the proposed rule as a result of the 
comments received. This action does not contain any reporting, or 
recordkeeping requirements. There are 73 vessels that have been issued 
moratorium permits, all of which would be impacted by this action. 
Since the data are not available to calculate per vessel costs for 
vessels participating in the Illex moratorium fishery, individual 
vessel profitability could not be estimated. Therefore, changes in 
gross revenue of the aggregate fleet is used as a proxy for changes in 
individual vessel profitability. Furthermore, assumptions are made that 
revenue losses and gains are shared equally among all vessels. NMFS' 
guidelines suggest consideration of disproportionate economic impacts 
between large and small entities that may result from the regulatory 
action. Because there are no large entities (vessels) participating in 
this fishery, small vessels will not be placed at a competitive 
disadvantage relative to large vessels, thus rendering the issue of 
disproportionate impacts between these two classes moot. The FRFA 
consists of the IRFA and a summary of the analyses done in support of 
this action. A copy of the analyses is available from the Council (see 
ADDRESSES) or via the Internet at http://www.nero.noaa.gov/ro/doc/com.htm. A summary of the FRFA follows:
    In addition to the preferred Alternative 1, the Council considered 
three non-preferred alternatives. Alternative 2 would extend the 
moratorium on entry to the Illex fishery for an additional 2 years 
(through July 1, 2005); Alternative 3 would extend the moratorium on 
entry to the Illex fishery for an additional 3 years (through July 1, 
2006); and Alternative 4 would allow the moratorium on entry to the 
Illex fishery to expire on July 1, 2003 (no action).
    The preferred alternative and Alternatives 2 and 3 would extend the 
moratorium on entry of new vessels into the Illex fishery; therefore, 
no impact is expected on vessels in the fishery in 2003 (and the first 
half of 2004), compared to individual vessel revenues in 2002. The 
Council assumed that the market and prices would remain stable. 
Therefore, any changes in individual vessel revenues would be the 
result of factors outside the scope of the moratorium (e.g., change in 
fishing practices for individual vessels, or changes in abundance and 
distribution of Illex squid).
    Under Alternative 4, the no-action alternative, the Illex fishery 
would revert to open access. This would result in an increase in 
fishing effort in the Illex fishery. New vessels entering the fishery 
would limit per vessel share of the Illex squid quota and reduce 
revenues for the present participants. Computing the total revenue 
losses for the existing moratorium vessels is impossible due to the 
unpredictability of redirection of effort into the Illex squid fishery. 
Therefore, the Council developed a sensitivity analysis to determine 
the impact of the entry of additional vessels into the fishery on 
revenues earned by individual vessels already engaged in the fishery. 
The sensitivity analysis examined three scenarios that presumed 
revenues derived from landings of Illex squid would be reduced by 75, 
50, and 25 percent. The analysis was based on 1998 data because in 1998 
the Illex quota was completely harvested. Therefore, those data would 
allow the greatest impact to be assessed.
    Under scenario 1, the review of revenue impacts examined the 
landings of vessels that landed at least 1 pound (0.45 kg) of Illex in 
1998 and presumed that revenues derived from landing Illex for these 
vessels would be reduced by 75 percent. The 109 impacted vessels (the 
73 vessels with moratorium permits, plus open access vessels who landed 
Illex in 1998) were projected to be impacted by revenue losses that 
ranged from less than 5 percent for 79 vessels, to a maximum of 40-49 
percent

[[Page 31990]]

for two vessels. There were no impacted vessels home-ported in 
Maryland, New Hampshire, or Virginia; a high of 15 vessels had home 
ports in New Jersey. Other impacted vessels were home-ported in 
Massachusetts, Maine, Rhode Island, New York, and North Carolina. 
Presumably, other vessels entering the fishery would experience gains 
in revenues.
    Under scenario 2, the review of revenue impacts presumed that 
vessel revenues derived from landing Illex would be reduced by 50 
percent. The 109 impacted vessels were projected to be impacted by 
revenue losses that ranged from less than 5 percent for 84 vessels, to 
a maximum of 30-39 percent for one vessel. There were no impacted 
vessels home-ported in Maryland, New Hampshire, or Virginia; a high of 
11 vessels had home ports in New Jersey. Others were in Massachusetts, 
Maine, Rhode Island, and North Carolina. Presumably, other vessels 
entering the fishery would experience gains in revenues.
    Under scenario 3, the review of revenue impacts presumed that 
vessel revenues derived from landing Illex would be reduced by 25 
percent. The 109 impacted vessels were projected to be impacted by 
revenue losses that ranged from less than 5 percent, for 88 vessels, to 
a maximum of 10-19 percent for eight vessels. The number of impacted 
vessels by home state ranged from none in Maryland, New Hampshire, New 
York, and Virginia, to a high of 11 in New Jersey. Other impacted 
vessels were home-ported in Massachusetts, Maine, Rhode Island, and 
North Carolina.

List of Subjects in 50 CFR Part 648

    Fisheries, Fishing, Reporting and recordkeeping requirements.

    Dated: May 23, 2003.
Rebecca Lent,
Deputy Assistant Administrator for Regulatory programs, National Marine 
Fisheries Service.

0
For the reasons set out in the preamble, 50 CFR part 648 is amended as 
follows:

PART 648--FISHERIES OF THE NORTHEASTERN UNITED STATES

    1. The authority citation for part 648 continues to read as 
follows:

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

0
2. In Sec.  648.4, the heading of paragraph (a)(5)(i) is revised to 
read as follows:


Sec.  648.4  Vessel permits.

    (a) * * *
    (5) * * *
    (i) Loligo squid/butterfish and Illex squid moratorium permits 
(Illex squid moratorium is applicable from July 1, 1997, until July 1, 
2004). * * *
* * * * *
[FR Doc. 03-13419 Filed 5-28-03; 8:45 am]
BILLING CODE 3510-22-S