[Federal Register Volume 68, Number 220 (Friday, November 14, 2003)]
[Proposed Rules]
[Pages 64579-64584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28548]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Parts 600 and 648

[Docket No. 031104274-3274-01; I.D. 101603A]
RIN 0648-AQ83


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

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

ACTION: Proposed rule, 2004 initial specifications; request for 
comments.

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SUMMARY: NMFS proposes initial specifications for the 2004 fishing year 
for Atlantic mackerel, squid, and butterfish (MSB). Regulations 
governing these fisheries require NMFS to publish proposed 
specifications for the upcoming fishing year and to provide an 
opportunity for public comment. The

[[Page 64580]]

intent of this action is to fulfill this requirement and to promote the 
development and conservation of the MSB resources. This action also 
proposes an increase in the Illex squid catch limit for squid/
butterfish incidental catch permit holders from 5,000 lb (2.27 mt) to 
10,000 lb (4.54 mt). In addition, this action would correct the 
regulations implementing the MSB Fishery Management Plan (FMP) by 
reinserting regulatory text that was incorrectly removed in the final 
rule that implemented measures contained in the Atlantic Herring FMP, 
which was published on December 11, 2000.

DATES: Public comments must be received no later than 5 p.m., Eastern 
Standard Time, on December 15, 2003.

ADDRESSES: Copies of supporting documents used by the Mid-Atlantic 
Fishery Management Council, including the Environmental Assessment (EA) 
and Regulatory Impact Review (RIR)/Initial Regulatory Flexibility 
Analysis (IRFA), are available from: Daniel Furlong, Executive 
Director, Mid-Atlantic Fishery Management Council, Room 2115, Federal 
Building, 300 South New Street, Dover, DE 19904-6790. The EA/RIR/IRFA 
is accessible via the Internet at http:/www.nero.noaa.gov.
    Comments on the proposed specifications should be sent to: Patricia 
A. Kurkul, Regional Administrator, Northeast Regional Office, NMFS, One 
Blackburn Drive, Gloucester, MA 01930-2298. Please mark the envelope, 
``Comments-2004 MSB Specifications.'' Comments also may be sent via 
facsimile (fax) to 978-281-9135. Comments will not be accepted if 
submitted via e-mail or Internet.

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

SUPPLEMENTARY INFORMATION: Regulations implementing the Fishery 
Management Plan for the Atlantic Mackerel, Squid, and Butterfish 
Fisheries (FMP), prepared by the Mid-Atlantic Fishery Management 
Council (Council), appear at 50 CFR part 648, subpart B. Regulations 
governing foreign fishing appear at 50 CFR part 600, subpart F. These 
regulations, at Sec. Sec.  600.516(c) and 648.21, require that NMFS, 
based on the maximum optimum yield (Max OY) of each fishery as 
established by the regulations, annually publish a proposed rule 
specifying the initial amounts of the initial optimum yield (IOY), as 
well as the amounts for allowable biological catch (ABC), domestic 
annual harvest (DAH), domestic annual processing (DAP), total allowable 
level of foreign fishing (TALFF), and JVP for the affected species 
managed under the FMP. In addition, these regulations allow Loligo 
squid specifications to be specified for up to 3 years, subject to 
annual review. The regulations found in Sec.  648.20 also specify that 
IOY for squid is equal to the combination of research quota and DAH, 
with no TALFF specified for squid. For butterfish, the regulations 
specify that a butterfish bycatch TALFF will be specified only if TALFF 
is specified for Atlantic mackerel. Procedures for determining the 
initial annual amounts are found in Sec.  648.21.
    In addition, the regulations at Sec.  648.21(g) allow the 
specification of research set-asides (RSA) to be used for research 
purposes. For 2004, the Council recommended RSAs of up to 2 percent of 
IOY for Atlantic mackerel and butterfish; and of up to 3 percent of IOY 
for squids. The RSAs would fund research and data collection for those 
species. A Request for Research Proposals was published to solicit 
proposals for 2004 based on research priorities previously identified 
by the Council (68 FR 3864, January 27, 2003). The deadline for 
submission was March 28, 2003. On July 19, 2003, NOAA Fisheries 
convened a Review Panel to review the comments submitted by technical 
reviewers on proposed research projects that would be funded using 
RSAs. Based on discussions among participants on the Review Panel, one 
Loligo squid project proposal was recommended for approval and will be 
forwarded to the NOAA Grants Office for award. Consistent with the 
Council's recommendations, the quotas in this proposed rule have been 
adjusted to reflect the project recommended for approval. If the awards 
are not made by the NOAA Grants Office for any reason, NMFS will 
publish a notice in the Federal Register to restore the unused RSA 
amount to the annual quota.
    Table 1 contains the proposed initial specifications for the 2004 
Atlantic mackerel, Loligo and Illex squids, and butterfish fisheries.

  Table 1. Proposed Initial Annual Specifications, in Metric Tons (mt),
    for Atlantic Mackerel, Squid, and Butterfish for the Fishing Year
                   January 1 through December 31, 2004
------------------------------------------------------------------------
                                                    Atlantic
        Specifications           Loligo    Illex    Mackerel  Butterfish
------------------------------------------------------------------------
Max OY.......................     26,000   24,000     \1\N/A    16,000
ABC..........................     17,000   24,000    347,000     7,200
IOY..........................  \4\16,872   24,000  \3\170,00     5,900
                                      .4                   0
DAH..........................   16,872.4   24,000  \3\170,00     5,900
                                                           0
DAP..........................   16,872.4   24,000    150,000     5,900
JVP..........................          0        0      5,000         0
TALFF........................          0        0          0         0
------------------------------------------------------------------------
\1\ Not applicable.
\2\ IOY may be increased during the year, but the total ABC will not
  exceed 347,000 mt
\3\ Includes 15,000 mt of Atlantic mackerel recreational allocation.
\4\ Excludes 127.6 mt for RSA.

2004 Proposed Specifications

Atlantic Mackerel

    Overfishing for Atlantic mackerel is defined by the FMP to occur 
when the catch associated with a threshold fishing mortality rate (F) 
of FMSY (the F that produces MSY (maximum sustainable 
yield)) is exceeded. When spawning stock biomass (SSB) is greater than 
890,000 mt, the maximum F threshold is FMSY (0.45), and the 
target F is 0.25. To avoid low levels of recruitment, the FMP contains 
a control rule whereby the threshold F decreases linearly from 0.45 at 
890,000 mt SSB to zero at 225,000 mt SSB (1/4 of the biomass level that 
would produce MSY on a continuing basis (BMSY)), and the 
target F decreases linearly from 0.25 at 890,000 mt SSB to zero at 
450,000 mt SSB (1/2 B\MSY\). Annual quotas are specified that 
correspond to the target F resulting from this control rule.

[[Page 64581]]

    Since SSB is currently above 890,000 mt, the target F for 2004 is 
0.25. The yield associated with that target F at the estimated stock 
size is 369,000 mt. The ABC recommendation of 347,000 mt represents an 
adjustment to the yield estimate of 369,000 mt, derived by subtracting 
the estimated Canadian catch of 22,000 mt from the yield estimate. The 
proposed IOY for the 2004 Atlantic mackerel fishery is 170,000 mt, 
which is equal to the proposed DAH. The specification of DAH is 
computed by totaling the estimated recreational catch, the proposed 
DAP, and the proposed JVP. The 170,000-mt proposed DAH is comprised of 
15,000 mt recreational, 150,000 mt DAP, and 5,000 mt JVP.
    The JVP of 5,000 mt that the Council recommends, and NMFS proposes, 
is a reduction from the amount specified for 2003 (10,000 mt, with the 
Administrator, Northeast Region, NMFS (Regional Administrator) 
authorized to increase it to 20,000 mt). The DAP and JVP components of 
DAH were historically estimated using the Council's annual processor 
survey, which was intended to obtain estimates of processing capacity 
in the domestic and joint venture (JV) fisheries. However, from 1994 
through 2002, response to this voluntary survey was incomplete and did 
not contain projections from some large processors. For 2003 and 2004, 
in place of the survey, the Council relied on testimony concerning 
their current and projected shoreside processing capacity for Atlantic 
mackerel in 2003 and 2004 presented by domestic processors during its 
annual specification meetings. While domestic processing capacity is 
increasing, the Council believes, based on the best data available, 
that the capacity of the domestic fleet to harvest mackerel still 
exceeds the domestic processors' capacity to process mackerel. 
Therefore, the Council has recommended, and NMFS proposes, a 
specification of 5,000 mt of JVP for the 2004 fishery. In previous 
years, to expedite an inseason adjustment to JVP, the Council specified 
in advance that NMFS could implement a specified inseason increase in 
JVP. This year there is no recommendation to expedite an inseason 
adjustment. However, if additional applications for JVP are received, 
Sec.  648.21(e) authorizes inseason adjustments by the Regional 
Administrator, in consultation with the Council, during the fishing 
year by publishing a notification in the Federal Register and providing 
a 30-day comment period.
    The Council also recommended, and NMFS proposes to maintain, a 
TALFF of zero. The Council believes that the development of the 
domestic mackerel fishery results in the greatest resource benefits to 
the nation. With DAP set at 150,000 mt, the Council was concerned that 
the perceived competition TALFF represents to U.S. processors could 
impede the future expansion of domestic mackerel processing facilities.
    As authorized by Sec. Sec.  600.501 and 600.520(b)(2)(ii), the 
Council recommended, and NMFS proposes, that several special conditions 
be imposed on the 2004 Atlantic mackerel fishery, as follows: (1) JVs 
would be allowed south of 37[deg]30' N. lat., but river herring bycatch 
may not exceed 0.25 percent of the over-the-side transfers of Atlantic 
mackerel; (2) the Regional Administrator should ensure that impacts on 
marine mammals are reduced in the prosecution of the Atlantic mackerel 
fishery; (3) the mackerel optimum yield (OY) may be increased during 
the year, but the total should not exceed 347,000 mt; and (4) 
applications from a particular nation for an Atlantic mackerel JV 
allocation for 2004 may be based on an evaluation by the Regional 
Administrator of that nation's performances relative to purchase 
obligations for previous years.

Atlantic Squids

Loligo
    The FMP defines overfishing for Loligo squid as occurring when the 
catch associated with a threshold of the fishing mortality that 
produces the maximum sustainable level of yield per recruit 
(FMAX) is exceeded (FMAX is a proxy for 
FMSY). When an estimate of FMSY becomes 
available, it will replace the current overfishing proxy, 
FMAX. Max OY is specified as the catch associated with FMAX. 
The biomass target is specified as BMSY.
    The most recent stock assessment for Loligo squid (the 34th 
Northeast Regional Stock Assessment Workshop, 2002 (SAW-34)) concluded 
overfishing is not occurring and recommended that the Council maintain 
the catch of 20,000 mt (to include both landings and discards). Based 
on that advice and the assumption that the stock will be at or near 
Bmsy in 2004, the Council recommended no changes from the 
2003 quota level. The 2004 quota is specified as the yield associated 
with 75 percent of Fmsy at Bmsy, or 17,000 mt, 
based on projections from SAW-34. The regulations continue to specify 
Max OY as the yield associated with Fmax, or 26,000 mt. 
Thus, the 2004 proposed Max OY for Loligo squid is 26,000 mt and the 
recommended ABC for the 2004 fishery is 17,000 mt.
    The FMP does not authorize the specification of JVP and TALFF for 
the Loligo squid fishery, because of the domestic industry's capacity 
to harvest and process the OY for this fishery; therefore, JVP and 
TALFF are zero.

Distribution of the Annual Loligo Squid Quota

    Since 2001, the annual DAH for Loligo squid has been allocated into 
quarterly periods. The Council and NMFS recommend no change from the 
2003 quarterly distribution system. Due to the recommendation of one 
research project that would utilize Loligo squid RSA, this proposed 
rule would adjust the quarterly allocations from those that were 
proposed, based on formulas specified in the FMP. The 2004 quarterly 
allocations would be as follows:

               Table 2. Loligo Squid Quarterly Allocations
------------------------------------------------------------------------
                                                               Research
             Quarter              Percent   Metric tons\1\    set-aside
------------------------------------------------------------------------
I (Jan-Mar).....................    33.23           5,606.7          N/A
II(Apr-Jun).....................    17.61           2,971.2          N/A
III(Jul-Sep)....................     17.3           2,918.9          N/A
IV(Oct-Dec).....................    31.86           5,375.6          N/A
Total...........................      100          16,872.4        127.6
------------------------------------------------------------------------
\1\Quarterly allocations after 127.5 mt RSA deduction.

    Also unchanged from 2003, the Council recommended that the 2004 
directed fishery be closed in Quarters I-III when 80 percent of the 
period allocation is harvested, with vessels restricted to a 2,500-lb 
(1,134-kg) Loligo

[[Page 64582]]

squid trip limit per single calender day until the end of the 
respective quarter. The directed fishery would close when 95 percent of 
the total annual DAH has been harvested, with vessels restricted to a 
2,500-lb (1,134-kg) Loligo squid trip limit per single calender day for 
the remainder of the year. Quota overages from Quarter I would be 
deducted from the allocation in Quarter III, and any overages from 
Quarter II would be deducted from Quarter IV. By default, quarterly 
underages from Quarters II and III carry over into Quarter IV, because 
Quarter IV does not close until 95 percent of the total annual quota 
has been harvested. Additionally, if the Quarter I landings for Loligo 
squid are less than 80 percent of the Quarter I allocation, the 
underage below 80 percent is applied to Quarter III.
Illex
    The overfishing definition for Illex squid states that overfishing 
for Illex squid occurs when the catch associated with a threshold 
fishing mortality rate of FMSY is exceeded. Max OY is 
specified as the catch associated with a fishing mortality rate of 
FMSY, while DAH is specified as the level of harvest that 
corresponds to a target fishing mortality rate of 75 percent 
Fmsy. The biomass target is specified as BMSY. 
The minimum biomass threshold is specified as \1/2\ BMSY.
    The Council recommended annual measures for the Illex fishery at 
its June 2003 meeting. At that time, the most recent stock assessment 
information dated from 1999 (the 29th Stock Assessment Workshop; SAW 
29). SAW 29 concluded that the stock was not in an overfished condition 
and that overfishing was not occurring. Due to the lack of adequate 
data, the estimate of yield at Fmsy was not updated in the assessment 
so there were no yield estimates corresponding to the target fishing 
mortality rate. However, an upper bound on annual fishing morality was 
computed for the US EEZ portion of the stock based on a model which 
incorporated weekly landings, relative fishing effort, and mean squid 
weights during 1994-1998. These estimates of the fishing mortality rate 
were well below the biological reference points. Therefore, the Council 
recommended that DAH should continue to be specified at 24,000 mt.
    In September 2003, subsequent to the Council action, the results of 
an updated assessment of the Illex squid stock (the 37th Northeast 
Regional Stock Assessment Workshop; SAW-37) were released. SAW-37 
concluded that overfishing was not likely to have occurred during the 
period 1992-2002. SAW-37 found that it was not possible to evaluate the 
current biomass status for Illex squid relative to Bmsy 
because the size of the stock could not be reliably estimated. SAW 37 
noted that since 1999, NEFSC autumn survey abundance indices have been 
below the 1982-2002 average, but that it could not determine whether 
this trend is due to low abundance, low availability or both. The 
assessment noted that surface and bottom water temperatures in the mid-
Atlantic Bight have been warmer than average during recent years, and 
that Illex abundance and biomass indices from the autumn surveys were 
significantly negatively correlated with bottom water temperature 
anomalies from the autumn surveys. SAW 37 concluded that this likely 
indicates an environmental effect on productivity. While landings have 
been below the 1982-2002 average since 1998, SAW 37 found that this 
could be due to the reduced effort observed during the time period, low 
biomass or both factors.
    SAW 37 cautioned that, under current stock conditions, a DAH of 
24,000 mt, which assumes a stock at Bmsy, may not be 
sufficient to prevent overfishing. It also cautioned that the existing 
overfishing definition, which is based on Fmsy, is not only 
difficult to estimate given the available information, but may also 
perform poorly given the stock's production dynamics. In addition, SAW 
37 recommended that, given uncertainties in the stock distribution and 
population biology, the fishery should be managed in relation to the 
proportion of the stock on the continental shelf and available to U.S. 
fisheries. However, SAW 37 did not recommend specific action, and the 
assessment also noted that more knowledge of Illex is necessary to 
respond to these concerns. While cooperative research efforts are 
underway, there is currently no information to use to construct an 
alternative recommendation.
    Despite the cautions within SAW 37, the assessment also concluded 
that it was unlikely that overfishing occurred during 1999-2002 for 
several reasons. Many of these reasons remain applicable to the 
proposal to maintain DAH at 24,000 mt for 2004. The reasons are: (1) 
The current small fleet size and effort levels make it unlikely that 
the fishery could exert the very high fishing mortality rate required 
to exceed the level recommended in the assessment (F50%), 
(2) the short fishing season makes high annual average fishing 
mortality rates unlikely, (3) the restricted geographical distribution 
of the fishery makes high annual average fishing mortality rates for 
the entire stock unlikely, (4) relative exploitation indices have 
declined considerably since 1999 and have been below the 1982-2002 
median since then, and (5) preliminary model results indicate that 
fishing mortality rates as high as F50% are unlikely to have occurred 
even during 1999, when relative fishing mortality was the highest in 
recent years.
    Therefore, NMFS proposes that the annual specifications for Illex 
squid should remain unchanged for 2004, agreeing with the Council that 
there is no basis for concluding that the specification are likely to 
result in overfishing. The specification of Max OY, ABC and DAH would 
remain unchanged from 2003 at 24,000 mt. As the Council noted, the 
management program for Illex requires the directed fishery to be closed 
when 95 percent of the quota is harvested (22,800 mt). While incidental 
landings are allowed following this closure, the amount of Illex caught 
incidentally by vessels targeting other species is limited due to the 
specialized nature of the Illex fishery. Illex is harvested offshore 
near the edge of the continental shelf during the summer. The species 
spoils quickly, so freezing or refrigerated seawater equipment must be 
utilized to prevent spoilage. Similar to Loligo squid, when a trip 
limit is in effect, vessels are prohibited from possessing or landing 
more than the specified amount in a single calendar day. Few vessels 
are expected to invest in the necessary equipment to pursue Illex under 
the the incidental catch allowance.
    The FMP does not authorize the specification of JVP and TALFF for 
the Illex squid fishery because of the domestic fishing industry's 
capacity to harvest and to process the OY from this fishery.

Increase in the Illex Squid Catch Limit for Squid/Butterfish Incidental 
Catch Permit Holders

    The Council has also recommended, and NMFS proposes, to increase 
the Illex squid catch limit for squid/butterfish incidental catch 
permit holders from 5,000 lb (2.27 mt) to 10,000 lb (4.54 mt). This 
also represents the trip limit in effect when the directed fishery is 
closed. Illex squid is a high volume, low value species, which is taken 
offshore near the edge of the continental shelf during the summer. The 
species also spoils rapidly, so either freezing or refrigerated 
seawater equipment is necessary to hold the catch and deliver it 
shoreside in a marketable condition. Given the substantial capital 
investment required to prosecute this fishery, the Council

[[Page 64583]]

does not expect that squid/butterfish incidental catch permit holders 
will target Illex squid as result of the increase in the bycatch 
allowance. Rather, this measure will provide some positive economic 
benefit by allowing these incidental catch permit holders to retain 
more of the Illex squid taken as bycatch in other directed fisheries.
Butterfish
    The FMP set OY for butterfish at 16,000 mt. Based on the most 
current stock assessment, the Council recommends, and NMFS proposes, an 
ABC of 7,200 mt for the 2004 fishery. This represents no change in the 
specifications since 1996. Commercial landings of butterfish have been 
low, at 1,964 mt, 2,116 mt, 1,432 mt, 4,373 mt and 841 mt for the 1998 
through 2002 fisheries, respectively. Lack of market demand and the 
difficulty in locating schools of market-sized fish have constrained 
this fishery.
    For the 2004 fishing year, the Council recommended, and NMFS 
proposes, an IOY for butterfish of 5,900 mt. The IOY is composed of a 
DAH of 5,900 mt and a bycatch TALFF that is equal to zero. The 
regulations found in Sec.  648.20 authorize the specification of JVP or 
TALFF specifications for butterfish only for a bycatch TALFF 
specification if TALFF is specified for Atlantic mackerel. Because the 
Council did not recommend TALFF for Atlantic mackerel, TALFF for 
butterfish is set at zero.

Correcting Amendment

    On December 11, 2000, NMFS published a final rule at 65 FR 77450 to 
implement management measures contained in the Atlantic Herring FMP. 
However, the final rule removed Sec.  648.6 (a)(2), because the 
measures were thought to also pertain to Atlantic herring vessels and, 
therefore, were thought to be redundant with the Atlantic herring 
processing permit provisions specified at Sec.  648.4(a)(10)(ii). The 
text previously codified at Sec.  648.6 (a)(2) allowed any Atlantic 
mackerel vessel that exceeded the size or horsepower restrictions 
specified at Sec.  648.4 (a)(5)(iii), to be issued an at-sea processor 
permit to receive over the side, possess and process Atlantic mackerel 
harvested in or from the Exclusive Economic Zone. However, this measure 
does not pertain to Atlantic herring vessels and is not redundant with 
the provision that was established under Sec.  648.4(a)(10)(ii). 
Therefore, this rule would reinsert Sec.  648.6 (a)(2), which was 
incorrectly removed on December 11, 2000.

Classification

    This action is authorized by 50 CFR part 648 and has been 
determined to be not significant for purposes of E.O. 12866.
    The Council prepared an IRFA, as required by section 603 of the 
Regulatory Flexibility Act, in section 3.0 of the RIR that describes 
the economic impacts this proposed rule, if adopted, would have on 
small entities. A description of the action, why it is being 
considered, and the legal basis for this action are contained in the 
SUPPLEMENTARY INFORMATION section of this proposed rule. This proposed 
rule does not duplicate, overlap, or conflict with other Federal rules. 
There are no new reporting or recordkeeping requirements contained in 
the Preferred Alternatives or any of the alternatives considered for 
this action. A copy of the IRFA can be obtained from the Council or 
NMFS (see ADDRESSES) or via the Internet at http:/www.nero.noaa.gov. A 
summary of the analysis follows:
    The number of potential fishing vessels in the 2003 fisheries are 
381 for Loligo squid/butterfish, 72 for Illex squid, 2,407 for Atlantic 
mackerel, and 2,119 vessels with incidental catch permits for squid/
butterfish. All of the vessels are considered small entities. Many 
vessels participate in more than one of these fisheries; therefore, the 
numbers are not additive. The proposed DAH specifications of 170,000 mt 
for Atlantic mackerel, 24,000 mt for Illex squid, and 5,900 mt for 
butterfish represent no constraint on vessels in these fisheries. The 
level of landings in the proposed specifications for 2004 have not been 
achieved by vessels in these fisheries in recent years. Absent such a 
constraint, no impacts on revenues are expected as a result of the 
proposed action.
    From 1998-2002, Loligo squid landings averaged 16,631 mt. If the 
2004 proposed DAH specification of 17,000 mt for Loligo squid is 
achieved, there would be an increase in catch and revenue in the Loligo 
squid fishery relative to the average landings from 1998-2002. NMFS 
also proposes to increase the Illex squid catch limit for squid/
butterfish incidental catch permit holders from 5,000 lb (2.27 mt) per 
trip to 10,000 lb (4.54 mt) per trip. This measure would provide some 
positive economic benefit by allowing these incidental catch permit 
holders to retain more of the Illex squid taken as bycatch in other 
directed fisheries. Illex squid is a high volume, low value species, 
which is taken offshore near the edge of the continental shelf during 
the summer. The species spoils rapidly, so either freezing or 
refrigerated seawater equipment is necessary to hold the catch and 
deliver it shoreside in a marketable condition. Therefore, given the 
substantial capital investment required to prosecute this fishery, the 
Council does not expect that squid/butterfish incidental catch permit 
holders will target Illex squid as a result of the increase in the 
bycatch allowance. Since this measure is not expected to increase 
fishing effort in the Illex squid fishery, no overall change in revenue 
is expected.
    One alternative considered for the Atlantic mackerel fishery was to 
specify the 2004 specifications at the same level as 2003. This option 
would set JVP at 10,000 mt. The Council rejected this option because of 
concerns it could negatively impact the potential for expansion of the 
shore-side processing sector of this industry in 2003. Preliminary 2003 
commercial landings through June 2003, (30,347 mt) have exceeded the 
total landing for 2002 (26,192 mt) and are almost three times the 
average commercial landings for 1997-2001 (11,583 mt). The Council felt 
that specifying JVP at 10,000 mt was unnecessary and could result in 
negative economic and/or social impacts to the U.S. mackerel industry. 
Some or all of the vessel owners, crews, dealers, processors or fishing 
communities associated with the Atlantic mackerel fishery could be 
adversely affected by maintaining the 2003 annual specifications for 
Atlantic mackerel in 2004. Maintaining a JVP allocation of 5,000 mt 
allows JVP operations to continue at recent levels, as JVP landings in 
recent years have been less than 5,000 mt. A second alternative 
considered for Atlantic mackerel was to set ABC at the long-term 
potential catch (LTPC), or 134,000 mt. This alternative was found 
inconsistent with the status of the stock. The current adult stock was 
recently estimated to exceed 2.1 million mt. The specification of ABC 
at LTPC would effectively result in an exploitation rate of only about 
6 percent, well below the optimal level of exploitation. The Council 
considered the level of foregone yield under this alternative 
unacceptable because population modeling of the Atlantic mackerel stock 
dynamics indicate that the safe level of removals from the current 
mackerel stock size is considerably higher than the level proposed 
under this alternative.
    For Loligo squid, one alternative that was considered was to set 
the ABC, DAH, DAP, and IOY at 13,000 mt, or a 20.1-percent reduction 
from the 2002 level. If the 13,000-mt alternative was

[[Page 64584]]

adopted for the 2004 fishing year, 110 of the 426 impacted vessels 
would experience a total gross revenue reduction (all species combined) 
of greater than 5 percent. The remaining 316 vessels would experience a 
less than 5-percent reduction in revenue or an increase in revenue.
    A second alternative would have set ABC, DAH, DAP, and IOY at 
18,300 mt. Under this alternative, the quota would be specified at a 
level that is 1,300 mt higher than is specified by the overfishing 
definition control rule in the FMP. Since the stock is technically not 
protected from overfishing, some negative economic and social impacts 
could be expected from this alternative in the long term, if the stock 
did become overfished. The vessel owners, crews, dealers, processors 
and fishing communities associated with these ports would be expected 
to be affected the most by this alternative when compared to the 
proposed 2004 annual specifications for Loligo.
    For Illex squid, one alternative considered would have set Max OY, 
ABC, IOY, DAH, and DAP at 30,000 mt, and a second alternative would 
have set Max OY at 24,000 mt and ABC, IOY, DAH, and DAP at 19,000 mt. 
The first alternative would allow harvest far in excess of recent 
landings in this fishery. Therefore, there would be no constraints and, 
thus, no revenue reductions, associated with these specifications. 
However, the Council considered the first alternative unacceptable 
because an ABC specification of 30,000 mt may not prevent overfishing 
in years of moderate to low abundance of Illex squid. Conversely, the 
second alternative, an ABC of 19,000 mt would not allow the fishery to 
perform at its optimal exploitation level during a year of relatively 
high abundance, and was therefore rejected as having unnecessary 
negative economic impacts.
    For butterfish, the Council considered two alternatives; the first 
set a Max OY of 16,000 mt and an ABC, IOY, DAH, and DAP of 7,200 mt, 
and the second set a Max OY of 16,000 mt and a ABC, IOY, DAH, and DAP 
at 10,000 mt. These specifications both exceed recent harvests in the 
butterfish fishery and would not constrain or impact the industry; 
however, they could lead to overfishing of the stock and, thus, were 
rejected by the Council.

List of Subjects in 50 CFR Part 648

    Fisheries, Fishing, Reporting and recordkeeping requirements.

    Dated: November 8, 2003.
Rebecca Lent,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
    For the reasons set out in the preamble, 50 CFR part 648 is 
proposed to be 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.
    2. In Sec.  648.4, the first sentence of paragraph (a)(5)(ii) is 
amended to read as follows:


Sec.  648.4  Vessel permits.

    (a) * * *
    (5) * * *
    (ii) Squid/butterfish incidental catch permit. Any vessel of the 
United States may obtain a permit to fish for or retain up to 2,500 lb 
(1.13 mt) of Loligo squid or butterfish, or up to 10,000 lb (4.54 mt) 
of Illex squid, as an incidental catch in another directed fishery. * * 
*
* * * * *
    3. In Sec.  648.6, paragraph (a)(2) is added to read as follows:


Sec.  648.6  Dealer/processor permits.

    (a) * * *
    (2) At-sea processors. Notwithstanding the provisions of Sec.  
648.4 (a)(5), any vessel of the United States must have been issued and 
carry on board a valid at-sea processor permit issued under this 
section to receive over the side, possess and process Atlantic mackerel 
harvested in or from the EEZ by a lawfully permitted vessel of the 
United States.
* * * * *
    4. In Sec.  648.22, paragraph (c) is added to read as follows:


Sec.  648.22  Closure of the fishery.

* * * * *
    (c) Incidental catches. During the closure of the directed fishery 
for mackerel, the possession limit for mackerel is 10 percent by weight 
of the total amount of fish on board. During a period of closure of the 
directed fishery for Loligo, Illex, or butterfish, the possession limit 
for Loligo and butterfish is 2,500 lb (1.13 mt) each, and the 
possession limit for Illex is 10,000 lb (4.54 mt). Vessels may not land 
more than these limits during any single calendar day, which is defined 
as the 24-hour period beginning at 0001 hours and ending at 2400 hours.
[FR Doc. 03-28548 Filed 11-13-03; 8:45 am]
BILLING CODE 3510-22-S