[Federal Register Volume 68, Number 145 (Tuesday, July 29, 2003)]
[Proposed Rules]
[Pages 44518-44520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-19259]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 660

[Docket No. 030721177-3177-01; I.D. 060903C]
RIN O648-AQ96


Fisheries off West Coast States and in the Western Pacific; 
Coastal Pelagic Species Fisheries; Annual Specifications for Pacific 
Mackerel

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 proposes a regulation to implement the annual harvest 
guideline for Pacific mackerel in the exclusive economic zone (EEZ) off 
the Pacific coast. The Coastal Pelagic Species (CPS) Fishery Management 
Plan (FMP) and its implementing regulations require NMFS to set an 
annual harvest guideline for Pacific mackerel based on the formula in 
the FMP. This action proposes allowable harvest levels for Pacific 
mackerel off the Pacific coast.

DATES: Comments must be received by August 13, 2003.

ADDRESSES: Send comments on the proposed rule to Rodney R. McInnis, 
Acting Administrator, Southwest Region, NMFS, 501 West Ocean Boulevard, 
Suite 4200, Long Beach, CA 90802. The report Stock Assessment of 
Pacific Mackerel with Recommendations for the 2003-2004 Management 
Season may be obtained at this same address. An environmental 
assessment/regulatory impact review/initial regulatory flexibility 
analysis (IRFA) may be obtained at this same address.

FOR FURTHER INFORMATION CONTACT: James J. Morgan, Southwest Region, 
NMFS, (562) 980-4036.

SUPPLEMENTARY INFORMATION: The CPS FMP, which was implemented by 
publication of the final rule in the Federal Register on December 15, 
1999 (64 FR 69888), divides management unit species into the categories 
of actively managed and monitored. Harvest guidelines of actively 
managed species (Pacific sardine and Pacific mackerel) are based on 
formulas applied to current biomass estimates. Biomass estimates are 
not calculated for species that are only monitored (jack mackerel, 
northern anchovy, and market squid).
    At a public meeting each year, the biomass for each actively 
managed species is reviewed by the Pacific Fishery Management Council's 
(Council) CPS Management Team (Team). The biomass, harvest guideline, 
and status of the fisheries are then reviewed at a public meeting of 
the Council's CPS Advisory Subpanel (Subpanel). This information is 
also reviewed by the Council's Scientific and Statistical Committee 
(SSC). The Council reviews reports from the Team, Subpanel, and SSC, 
then, after providing time for public comment, makes its recommendation 
to NMFS. The annual harvest guideline and season structure is published 
by NMFS in the Federal Register as soon as practicable before the 
beginning of the appropriate fishing season. The Pacific mackerel 
season begins on July 1 of each year and ends on June 30 the following 
year.
    The Team and Subpanel meetings took place at the NMFS Southwest 
Regional Office in Long Beach, CA, on May 21, 2003 (68 FR 23703, May 5, 
2003). The SSC meeting took place in conjunction with the June 16-20, 
2003, Council meeting in Foster City, CA.
    A modified virtual population analysis stock assessment model is 
used to estimate the biomass of Pacific mackerel. The model employs 
both fishery dependent and fishery independent indices to estimate 
abundance. The biomass was calculated through the end of 2002, then 
estimated for the fishing season that began July 1, 2003, based on: (1) 
the number of Pacific mackerel estimated to comprise each year class at 
the beginning of 2003, (2) modeled estimates of fishing mortality 
during 2002, (3) assumptions for natural and fishing mortality through 
the first half of 2003, and (4) estimates of age-specific growth. Based 
on this approach the biomass for July 1, 2003, would be 68,924 metric 
tons (mt). Applying the formula in the FMP would result in a harvest 
guideline of 10,652 mt, which is lower than last year but similar to 
low harvest guidelines of recent years.
    The formula in the FMP uses the following factors to determine the 
harvest guideline:
    1. The biomass of Pacific mackerel. For 2003, this estimate is 
68,924 mt.
    2. The cutoff. This is the biomass level below which no commercial

[[Page 44519]]

fishery is allowed. The FMP established the cutoff level at 18,200 mt. 
The cutoff is subtracted from the biomass, leaving 50,724 mt.
    3. The portion of the Pacific mackerel biomass that is in U.S. 
waters. This estimate is 70 percent, based on the historical average of 
larval distribution obtained from scientific cruises and the 
distribution of the resource obtained from logbooks of fish-spotters. 
Therefore, the harvestable biomass in U.S. waters is 70 percent of 
50,724 mt, that is, 35,507 mt.
    4. The harvest fraction. This is the percentage of th e biomass 
above 18,200 mt that may be harvested. The FMP established the harvest 
fraction at 30 percent. The harvest fraction is multiplied by the 
harvestable biomass in U.S. waters (35,507 mt), which results in 10,652 
mt.
    Information on the fishery and the stock assessment are found in 
the report Stock Assessment of Pacific Mackerel with Recommendations 
for the 2003-2004 Management Season, which may be obtained at the 
address above (see ADDRESSES).
    Following recommendations of the fishing industry and Subpanel for 
the 2002/2003 fishing season, a directed fishery for Pacific mackerel 
of 9,500 mt was set beginning July 1, 2002, followed by an incidental 
allowance of 40 percent of Pacific mackerel in landings of any CPS, if 
the 9,500 mt was harvested. A 1-mt landing of Pacific mackerel per trip 
would have been allowed if no other CPS (northern anchovy, Pacific 
sardine, jack mackerel, market squid) were landed during a trip. NMFS 
implemented a directed and incidental fishery last season in response 
to concerns about how a low harvest guideline for mackerel might 
interfere with the sardine fishery. Pacific mackerel is often caught 
with sardine; therefore, mackerel might have to be discarded, which 
would increase bycatch. As of May 30, 2003, approximately 3,800 mt of 
Pacific mackerel had been landed in the directed fishery; therefore, an 
incidental fishery was not necessary.
    At its meeting on May 21, 2003, the Subpanel recommended for the 
2003/2004 fishing season that a directed fishery of 7,500 mt and an 
incidental fishery of 3,152 mt be implemented. An incidental allowance 
of 40 percent of Pacific mackerel in landings of any CPS would become 
effective when 7,500 mt of Pacific mackerel is estimated to be 
harvested. The Subpanel also recommended to allow 1 mt of mackerel to 
be landed per trip while fishing for salmon or groundfish in the 
incidental fishery without landing any other CPS. The Subpanel 
recommended that an inseason review of the mackerel season be completed 
for the March 2004 Council meeting, with the possibility of reopening 
the directed fishery as an automatic action if sufficient amount of the 
harvest guideline reserved for the incidental fishery remains 
unharvested.
    Public comments are requested on how the fishery might be conducted 
for the 2003/2004 fishing season to achieve but not exceed the harvest 
guideline while minimizing impacts on the harvest of other CPS.
    In view of the above, the following would be implemented for the 
July 1, 2003, through June 30, 2004, fishing season:
    Based on the estimated biomass of 68,924 mt and the formula in the 
FMP, a harvest guideline of 10,652 mt would be in effect for the 
fishery beginning on July 1, 2003. This harvest guideline would be for 
the fishing season beginning at 12:01 a.m. on July 1, 2003, and 
continue through June 30, 2004, unless the harvest guideline is 
attained and the fishery is closed before June 30, 2004. A directed 
fishery of 7,500 mt and an incidental fishery of 3,152 mt would be 
implemented, with an incidental allowance of 40 percent of Pacific 
mackerel in landings of any CPS becoming effective when 7,500 mt of 
Pacific mackerel is estimated to be harvested. A landing of 1 mt of 
Pacific mackerel per trip would be permitted during the incidental 
fishery without landing any other CPS.

Classification

    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    Public comments are also requested on the IRFA that NMFS has 
prepared that describes the economic impact this proposed rule, if 
adopted, would have on small entities. Specifically, NMFS is requesting 
that the public provide comments on the range of alternatives 
considered by NMFS and offer any additional alternatives that NMFS 
should consider for the Pacific mackerel fishery. The IRFA is available 
from NMFS (see ADDRESSES). A summary of the IRFA follows:
    A description of the action, why it is being considered, and the 
legal basis for this action are contained in the SUMMARY and in the 
SUPPLEMENTARY INFORMATION of this proposed rule and is not repeated 
here. A harvest guideline is required by the FMP to protect the 
resource from overfishing while allowing harvest by fishermen. For the 
purposes of analysis, the no action alternative has potential negative 
environmental and economic impacts. Failure to set a harvest guideline 
based on a biomass estimate could lead to overfishing. This would 
provide some short term economic benefits to the fishing industry 
through increased revenue, but a decline in the resource would lead to 
lower revenue in subsequent years. The alternative to not have a 
directed and incidental fishery is reasonable, but could have negative 
economic consequences, because Pacific mackerel often occur in schools 
of Pacific sardine; therefore, a prohibition on landing Pacific 
mackerel would disrupt the sardine fishery. The season structure of the 
2002-2003 fishing season was reviewed, which included a directed 
fishery of 9,500 mt, an incidental fishery of 3,035 mt, and an 
incidental harvest of 40 percent following closure of the directed 
fishery. The lower harvest guideline and the primary goal of minimizing 
economic impacts on the sardine fishery during the 2003-2004 fishing 
season led to setting the incidental fishery at a similar level,3,152 
mt, with a 40 percent incidental rate, reducing the size of the 
directed fishery. Many alternatives to the specific amounts of the 
harvest guideline allocated to the directed and incidental fisheries 
are possible, but the amounts essential for an efficient fishery are 
not predictable; therefore, changes during the fishing season may be 
necessary. A review of previous seasons indicated that about 3,000 mt 
should be reserved for an incidental fishery. Changes can be made 
during the fishing season, but a high incidental rate and a significant 
incidental fishery would likely minimize interruption of the sardine 
fishery and regulatory changes during the year. If a significant amount 
of the harvest guideline remains toward the end of the season, the 
directed fishery can be reopened. This proposed rule does not 
duplicate, overlap, or conflict with other Federal rules. There are no 
reporting, record-keeping, or other compliance requirements of the 
proposed rule.
    Approximately 83 vessels harvest Pacific mackerel off the U.S. West 
Coast. This includes 65 vessels with limited entry permits, which are 
authorized to fish south of 39[deg]N. lat. (a point north of Monterey, 
California). Approximately 18 vessels harvest CPS species in southern 
California for bait; however, little Pacific mackerel is used for bait. 
The primary harvesters of Pacific mackerel are the vessels with limited 
entry permits from Monterey, California south. Some of the vessels in 
Monterey, California may move south to harvest CPS, but may not 
relocate to harvest Pacific mackerel in all years. All of

[[Page 44520]]

these vessels would be considered small businesses under the Small 
Business Administration standards; therefore, there would be no 
financial impacts resulting from disproportionality between small and 
large vessels under the proposed action. CPS vessels typically harvest 
a number of other species, including anchovy, Pacific sardine, and 
market squid.
    The average revenue from Pacific mackerel in real dollars in the 
last 10 years, from 1993 through 2002 is almost $1.8 million per year. 
This is the revenue the industry might expect on average per year given 
the amount of mackerel available for harvest and market demand. With a 
harvest guideline of 10,652 mt and an average ex-vessel price per ton 
of $144.55, potential revenue could be $1.5 million. The harvest 
guideline for the 2002-2003 fishing season was 12,535 mt; however, as 
of June 3, 2003, only 3,790 mt had been landed, primarily because of 
the lack of availability of the resource in the area of the fishing 
fleet. Total landings for the 2002-2003 fishing season are not likely 
to exceed 4,000 tons. Therefore, if the harvest guideline is reached 
during the 2003-2004 fishing season, there will be an increase of 
$960,000 in ex vessel revenue above that of the 2002-2003 fishing 
season. The increase would be beneficial for fishermen and processors, 
and will benefit the fishing communities in southern California, where 
virtually all Pacific mackerel is landed. Enforcement and 
administrative costs (primarily port sampling) remain unchanged because 
calls at ports of landing are designed not only to assess the status of 
Pacific mackerel but all species harvested during the year by the CPS 
fleet. Average conditions are likely to prevail during the 2003-2004 
fishing season, that is, ex vessel revenue derived from Pacific 
mackerel will fall between $1.4 million and $1.8 million based on a 
real ex vessel price that has varied between $126.98/mt and $172.59/mt 
from 1993 to 2002.
    Cost data is not available for the 65 vessels with limited entry 
permits; therefore, average gross revenue per vessel is used as a proxy 
for changes in profitability. With an estimated increase of $960,000 in 
gross revenue, the average gross revenue per vessel would be $14,769. 
Setting a harvest guideline is required by the FMP and Federal 
regulations; therefore, a no action alternative is not reasonable. 
However, for the purposes of measuring impacts, if there is sufficient 
biomass to allow a fishery, the fishing season begins on July 1 even if 
a harvest guideline is not determined. Unless action were taken to 
curtail the fishery, unlimited amounts of Pacific mackerel could be 
harvested. With such a low biomass, exceeding the MSY would be likely, 
which would lead to some short term economic benefits to the fishing 
industry, but would lower the biomass estimate the following year along 
with the harvest guideline, which would reduce potential future revenue 
to the fleet. The impact of future revenue loss is greater at the low 
biomass levels that have occurred in recent years, because rebuilding 
the resource from low biomass levels takes longer. Nevertheless, market 
conditions and availability of Pacific mackerel in the area of the 
fishery have a strong effect on landings. Since 1994, overall fleet 
revenue has averaged $29.9 million and revenue obtained from Pacific 
mackerel has averaged 7.8 percent of that total. Under the proposed 
alternative, revenue is likely to average less because squid landings 
contribute substantial revenue to the fleet and squid availability is 
not expected to be depressed by an El Nino during the 2003-2004 Pacific 
mackerel season as it was in 1998. In an unrestricted mackerel fishery, 
average revenue would be more likely to approach 7.8 percent. In view 
of the above, the relatively low harvest guideline for the 2003-2004 
fishing season will provide a slight increase in revenue and will not 
have a substantial effect on overall vessel profitability.
    The proposed alternative also divides the harvest guideline into a 
7,500 mt directed fishery, a 3,152 mt incidental fishery, and a limit 
of 40 percent by weight of Pacific mackerel in any landing of CPS when 
the directed fishery is closed. The numbers chosen were based on recent 
experience in the fishery, primarily availability of Pacific mackerel 
in the area of the fishery and the recent market value of mackerel 
compared to other CPS fisheries. A directed fishery with no incidental 
fishery could lead to significant negative economic impacts by closing 
the sardine fishery, which provided over $10 million in revenue to the 
CPS fleet in 2002. Interfering with the sardine fishery leads to 
increased bycatch of Pacific mackerel and increased enforcement action. 
To minimize the impact on the CPS fleet, the season structure of the 
2002-2003 fishing season was reviewed, which included a directed 
fishery of 9,500 mt, an incidental fishery of 3,035 mt, and an 
incidental harvest of 40 percent following closure of the directed 
fishery. The lower harvest guideline and the primary goal of minimizing 
economic impacts on the sardine fishery during the 2003-2004 fishing 
season led to setting the incidental fishery at a similar level, of 
3,152 mt, with a 40 percent incidental rate, thereby, reducing the size 
of the directed fishery. The FMP allows up to a 45 percent incidental 
harvest following the closing of the directed fishery, but 45 percent 
was considered not likely necessary. A 40 percent incidental rate 
operating in combination with a relatively significant incidental 
fishery was considered sufficient. Although the incidental rate can be 
changed during the fishing season, if the rate is set too low 
initially, fishing operations in the sardine fishery may be interrupted 
by attempting to avoid the capture of Pacific mackerel occurring in 
schools of Pacific sardine. Misjudgement by fishermen of the amount of 
Pacific mackerel occurring in schools of sardine leads to discards and 
increases bycatch. The possibility of dramatic changes during the 
fishing season were recognized, which could require in-season 
adjustments to any of the above factors. The goal of the changes would 
be to minimize disruption of the sardine fishery, which would minimize 
economic impact on the fishing industry; however, administrative costs 
of implementing changes would increase in proportion to the number of 
changes needed. The proposed action will yield potentially lower 
revenue from Pacific mackerel than what otherwise might be possible 
under environmental conditions more favorable to Pacific mackerel (That 
is, a higher biomass); however, the low harvest guideline for the 2003-
2004 fishing season will provide a small increase in revenue above that 
of the 2002-2003 fishing season and will not have a substantial effect 
on overall vessel profitability.

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

    Dated: July 23, 2003.
William T. Hogarth,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
[FR Doc. 03-19259 Filed 7-28-03; 8:45 am]
BILLING CODE 3510-JS-S