[Federal Register Volume 69, Number 34 (Friday, February 20, 2004)]
[Proposed Rules]
[Pages 7898-7903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3754]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 040205043-4043-01; I.D. 122303G]
RIN 0648-AP95


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Reef Fish Fishery of the Gulf of Mexico; Red Grouper Rebuilding Plan

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 Secretarial 
Amendment 1 to the Fishery Management Plan for the Reef Fish Resources 
of the Gulf of Mexico (Secretarial Amendment 1), which was prepared by 
the Secretary of Commerce and the Gulf of Mexico Fishery Management 
Council (Council) pursuant to the rebuilding requirements of the 
Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act). This proposed rule would establish a quota for red 
grouper, provide for closure of the entire shallow-water grouper 
fishery when either the shallow-water grouper quota or the red grouper 
quota is reached, establish a bag limit of two red grouper per person 
per day, reduce the shallow-water grouper quota, reduce the deep-water 
grouper quota, and establish a quota for tilefishes. In addition, for 
red grouper in the Gulf of Mexico, Secretarial Amendment 1 would 
establish a 10-year stock rebuilding plan, biological reference points, 
and stock status determination criteria consistent with the 
requirements of the Magnuson-Stevens Act. The intended effect of this 
proposed rule is to end overfishing and rebuild the red grouper 
resource.

DATES: Comments must be received no later than 5 p.m., eastern time, on 
April 20, 2004.

ADDRESSES: Written comments on the proposed rule must be sent to Phil 
Steele, Southeast Regional Office, NMFS, 9721 Executive Center Drive 
N., St. Petersburg, FL 33702. Comments may also be sent via fax to 727-
570-5583. Comments on this rule may be submitted by e-mail. The mailbox 
address for providing e-mail comments is [email protected]. 
Include in the subject line of the e-mail comment the following 
document identifier: 0648-AP95.
    Copies of documents supporting this proposed rule, which include an 
environmental assessment, a fishery impact statement, a social impact 
statement, a regulatory impact review (RIR), and an initial regulatory 
flexibility act analysis (IRFA) are available from the NMFS address 
above.

FOR FURTHER INFORMATION CONTACT: Phil Steele, telephone: 727-570-5305, 
fax: 727-570-5583, e-mail: [email protected].

SUPPLEMENTARY INFORMATION: The fishery for reef fish is managed under 
the Fishery Management Plan for the Reef Fish Resources of the Gulf of 
Mexico (FMP) that was prepared by the Council. The FMP was approved by 
NMFS and implemented under the authority of the Magnuson-Stevens Act by 
regulations at 50 CFR part 622.

Background

    In October 2000, NMFS declared the Gulf of Mexico stock of red 
grouper to be overfished and undergoing overfishing. This determination 
was based on the results of a 1999 red grouper stock assessment and 
subsequent analysis by the NMFS Southeast Fisheries Science Center and 
the Council's Reef Fish Stock Assessment Panel. Subsequently, a 2002 
stock assessment found that the stock, although still undergoing 
overfishing, is in an improved condition and is no longer overfished. 
However, the stock has not yet reached the biomass level that is 
capable of producing MSY on a continuing basis (BMSY). 
Therefore, measures to end overfishing and a rebuilding plan to restore 
the stock to the BMSY level in 10 years or less are still 
necessary.
    Secretarial Amendment 1 and this proposed rule contain measures for 
red grouper that are designed to end overfishing, establish biological 
reference points and stock status determination criteria, and initiate 
implementation of the rebuilding plan in a manner that allocates the 
necessary restrictions fairly and equitably between the recreational 
and commercial sectors of the fishery, consistent with the requirements 
of the Magnuson-Stevens Act. Because the reef fish fishery is a multi-
species fishery in which fishers can easily redirect fishing effort to 
other reef fish species, additional measures, applicable to other 
closely associated shallow-water and deep-water groupers and 
tilefishes, are provided to minimize any potential negative impacts on 
those stocks as a result of a possible shift of fishing effort from red 
grouper to those species.

Biological Reference Points and Stock Status Determination Criteria

    Consistent with the requirements of the Magnuson-Stevens Act, 
Secretarial Amendment 1 would establish the following biological 
reference points and stock status determination criteria for Gulf of 
Mexico red grouper maximum sustainable yield (MSY); optimum yield (OY); 
maximum fishing mortality threshold (MFMT) (the fishing mortality rate 
which, if exceeded, constitutes overfishing); and minimum stock size 
threshold (MSST) (the stock size below which the stock would be 
considered overfished).
    MSY = 7.560 million lb (3.429 million kg).
    OY = The yield obtained from a fishing mortality rate equal to 75 
percent of FMSY. OY is currently estimated to be 7.385 
million lb (3.350 million kg) gutted weight, based on an FMSY 
of 0.306.
    MFMT = FMSY (currently estimated at 0.306), or the 
fishing mortality consistent with recovery to MSY in no more than 10 
years.

[[Page 7899]]

    MSST = 80 percent of BMSY; currently estimated to be 672 
metric tons of mature female gonad weight, based upon a BMSY 
of 840 metric tons of mature female gonad weight.

Stock Rebuilding Plan

    Secretarial Amendment 1 would establish a 10-year red grouper 
rebuilding plan, structured in 3-year intervals, that would end 
overfishing and rebuild the stock to MSY. Measures to implement the 
plan are designed to allocate the required reductions equitably between 
the commercial and recreational sectors. The 3-year intervals are 
intended to provide short-term stability for the management and 
operation of the fishery, correlate more closely with the timing of 
future stock assessments, and provide a more reasonable time period for 
assessing the impacts of prior management actions. The appropriate 
parameters for subsequent 3-year intervals, consistent with the overall 
objectives of the rebuilding plan, would be determined based upon the 
most recent stock assessments.

Initial (2004-2006) Implementation of the Rebuilding Plan

    Based on the results of the latest (2002) red grouper stock 
assessment, a reduction of approximately 9.4 percent in overall red 
grouper harvest is necessary to end overfishing and initiate stock 
rebuilding during the first 3-year interval of the 10-year rebuilding 
plan. The following measures are designed to achieve that reduction 
fairly and equitably within both the commercial and recreational 
sectors.

Measures Applicable to the Commercial Red Grouper Fishery

    This proposed rule would establish a commercial red grouper quota 
of 5.31 million lb (2.41 million kg) gutted weight. This would achieve 
a 9.4-percent reduction from the average commercial harvest during the 
baseline period, 1999-2001.
    In addition, the provisions for closure of the shallow-water 
grouper fishery would be modified. Red grouper are included in the 
existing shallow-water grouper quota but under this proposed rule would 
also be subject to a separate red grouper quota. If the red grouper 
quota was reached and that fishery closed, it is likely that incidental 
catch and mortality of red grouper would continue until the shallow-
water grouper quota was reached and that fishery was closed. To avoid 
that potential adverse impact, this proposed rule would require closure 
of the entire shallow-water grouper fishery when either the red grouper 
or shallow-water grouper quotas are reached.

Measures Applicable to the Recreational Red Grouper Fishery

    This proposed rule would establish a 2-fish recreational red 
grouper bag limit within the existing 5-fish aggregate grouper bag 
limit (which applies to all grouper combined, excluding goliath grouper 
and Nassau grouper). Therefore, a recreational angler would be 
restricted to the bag limit of five grouper, no more than two of which 
could be red grouper. The 2-fish red grouper bag limit would achieve 
approximately a 9-percent reduction relative to average recreational 
harvest during the baseline period, 1999-2001. Although this is 
slightly less than the target 9.4-percent reduction, it is the closest 
approximation that could be achieved via the preferred bag limit 
approach. This minor variation is not expected to have a significant 
biological impact given that the recreational sector accounts for only 
about 19 percent of red grouper harvest.

Measures to Address Potential Effort Shift in the Reef Fish Fishery

    There are management measures currently in place to control fishing 
mortality on most of the major reef fish species, e.g., shallow-water 
and deep-water grouper quotas. Because fishing effort within the reef 
fish fishery is readily transferable to most reef fish species and 
because this proposed rule would reduce the allowable harvest of red 
grouper, additional measures are necessary to ensure that potential 
effort shift does not adversely affect other reef fish species.
    This proposed rule would reduce the shallow-water grouper quota 
from 9.35 million lb (4.24 million kg) gutted weight, which is 
equivalent to 9.8 million lb (4.45 million kg) whole weight, to 8.80 
million lb (3.99 million kg) gutted weight. This would reduce the 
shallow-water grouper quota consistent with the reduction in the 
allowable red grouper harvest, i.e., a reduction of about 0.55 million 
lb (0.25 million kg). Although red grouper would have a separate quota 
under this proposed rule, red grouper is also a component of the 
shallow-water grouper quota. Reducing the shallow-water grouper quota 
to reflect the reduction in the allowable harvest of red grouper should 
minimize the potential for any shift of fishing mortality to other 
shallow-water grouper species. The shallow-water grouper quota includes 
all groupers other than deep-water groupers, goliath grouper, and 
Nassau grouper.
    Similarly, to guard against effort shift into the deep-water 
grouper fishery, this proposed rule would reduce the deep-water grouper 
quota from 1.35 million lb (0.61 million kg), equivalent to 1.60 
million lb (0.73 million kg) whole weight, to 1.02 million lb (0.46 
million kg) gutted weight. This reduction is intended primarily to 
address concern that effort shift from the proposed reductions in 
allowable red grouper and shallow-water grouper harvest could adversely 
impact yellowedge grouper, the primary component of the deep-water 
fishery. The reduction is intended to ensure that harvest of yellowedge 
grouper does not exceed the level recommended by the Reef Fish Stock 
Assessment Panel, 840,000 lb (381,018 kg), the average harvest level 
during 1986-2001. Deep-water groupers include speckled hind; 
yellowedge, misty, Warsaw, and snowy groupers; and scamp after the 
shallow-water grouper quota is reached.
    Finally, this proposed rule would also establish a quota of 0.44 
million lb (0.20 million kg), gutted weight, for all tilefishes in the 
reef fish management unit, combined (tilefish, goldface tilefish, 
blackline tilefish, anchor tilefish, and blueline tilefish). This quota 
is equal to the average annual harvest during 1996-2000 and would 
prevent increases in fishing mortality until additional information is 
available to improve the evaluation of the status of those stocks.
    These actions represent a precautionary approach designed to reduce 
the probability that a shift in effort from red grouper to other reef 
fish species would result in an unintended and inappropriate increase 
in fishing mortality on other reef fish species, some of which are at 
or near maximum desirable fishing mortality levels.

Classification

    At this time, NMFS has not determined whether Secretarial Amendment 
1, which 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 
Secretarial Amendment 1.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    NMFS prepared an IRFA that describes the economic impact 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

[[Page 7900]]

contained at the beginning of this section in the preamble and in the 
SUMMARY section of the preamble. A summary of the analysis follows.
    The Magnuson-Stevens Act provides the statutory basis for the 
proposed rule. The proposed rule would establish red grouper biological 
reference points and stock status criteria; adopt a 10-year red grouper 
rebuilding plan based on a 3-year interval rebuilding strategy that 
would include a 9.4 percent reduction in total red grouper harvests for 
the first 3-year interval; adjust the shallow-water grouper quota by an 
amount equal to the reduction in the red grouper quota; set the 
recreational bag limit at two red grouper out of the five aggregate 
grouper bag limit per person; close the commercial shallow-water 
grouper fishery when the commercial red grouper quota or the shallow-
water grouper quota is reached, whichever comes first; and establish 
deep-water grouper and tilefish quotas.
    The primary objective of the proposed rule is to optimize the net 
benefits to the Nation of the shallow-water grouper stocks by 
rebuilding the red grouper component to a stock level capable of 
supporting optimum yield.
    The proposed rule contains no changes in record-keeping or 
compliance requirements. No duplicative, overlapping, or conflicting 
Federal rules have been identified.
    This proposed rule would impact both the commercial and 
recreational participants that traditionally harvest shallow-water 
grouper species and dealers who receive these species from commercial 
harvesters.
    There are currently approximately 1,204 active commercial reef fish 
permits and an unknown number of other permits in the process of being 
renewed. Examination of 2000 logbook data showed that of vessels with 
commercial reef fish permits, 782 vessels in Florida and 207 in other 
Gulf states landed reef fish with vertical line gear in 2000. An 
additional 155 vessels in Florida and 33 in other Gulf states were 
identified as having landed reef fish using longline gear in 2000. 
Furthermore, 55 vessels, all in Florida, reported landing reef fish 
using fish traps. For all vessels landing reef fish, a total of 546 
vessels participate in the shallow-water grouper fishery on a 
consistent basis. Of these vessels, 138 used longline gear, 353 used 
vertical line gear, and 55 used fish traps. Within the commercial red 
grouper fishery, longline gear accounted for 59 percent of landings, 
handline gear accounted for 24 percent, and fish traps accounted for 16 
percent. The corresponding percentages for the commercial gag are: 25 
percent for longline gear, 73 percent for handline gear, and 2 percent 
for fish traps. Other gear types account for a minuscule portion of the 
commercial landings of these species. These are the two most 
significant species in the shallow-water grouper fishery. The measures 
proposed in this rule would directly or indirectly affect all these 
vessels.
    Although the proposed rule would directly or indirectly affect all 
commercial vessels that participate in the fishery, the impacts would 
affect vessels that operate in the eastern Gulf (Florida) more 
significantly because the bulk of the grouper fishery is in this area. 
Among the Florida vessels, the longline vessels would bear most of the 
cost of the proposed measures, particularly with respect to red 
grouper. High-volume vertical line and fish trap vessels would also 
bear a disproportionate share of the burden. Estimates of gross annual 
receipts per vessel for vessels in the reef fish fishery are as 
follows: $67,979 for high-volume vessels using vertical line gear in 
the eastern Gulf; $24,588 for low-volume vessels using vertical line 
gear in the eastern Gulf; $116,989 for high-volume vessels using bottom 
longline gear gulfwide; $87,635 for low-volume vessels using bottom 
longline gear gulfwide; $93,426 for high-volume vessels using fish 
traps (Florida only); and $86,039 for low-volume vessels using fish 
traps (Florida only). Estimates of net annual income per vessel 
(defined as gross receipts less routine trip costs) for vessels in the 
reef fish fishery are as follows: $23,822 for high-volume vessels using 
vertical line gear in the eastern Gulf; $4,479 for low-volume vessels 
using vertical line gear in the eastern Gulf; $25,452 for high-volume 
vessels using bottom longline gear gulfwide; $14,978 for low-volume 
vessels using bottom longline gear gulfwide; $19,409 for high-volume 
vessels using fish traps (Florida only); and $21,025 for low-volume 
vessels using fish traps (Florida only).
    The proposed rule would also affect fish dealers that receive 
groupers by way of purchase, barter, or trade. About 431 dealers 
located in the five Gulf states receive groupers. Of this total, 
approximately 87 dealers located in Florida would be most directly 
affected by the proposed rule. Of these 87 dealers, approximately 54 
dealers generally receive less than 10,000 lb (4,536 kg) of grouper per 
year while 11 dealers generally receive more than 80,000 lb (36,287 kg) 
of grouper per year. Among the longline vessels operating in the 
fishery, more vessels reported sales to dealers in Madiera Beach (54 
vessels) and St. Petersburg (34 vessels) than any other locations. 
Information on the average number of employees per reef fish dealer is 
not known. Although dealers and processors are not synonymous entities, 
total employment for reef fish processors in the Southeast has been 
estimated at approximately 700 individuals, both part and full time. It 
is assumed that all processors must be dealers, yet a dealer need not 
be a processor. Further, processing is a much more labor intensive 
exercise than dealing, therefore requiring greater employment. 
Therefore, it is assumed that total dealer employment is less than 700 
individuals.
    The proposed measures for the recreational sector would also affect 
all for-hire vessels that operate in the reef fish fishery. As of July 
2003, a total of 1,377 reef fish permits had been issued to the 
recreational for-hire sector, which includes both charter boats and 
headboats. Similar to the situation with the commercial sector, most of 
the effects would be borne by those for-hire vessels that operate in 
Florida. This number, however, cannot be determined with certainty 
since the registration address does not necessarily indicate the area 
of operation. Further, identifying the number of vessels dependent upon 
shallow-water grouper species is not possible given available data. 
Based on fees, number of passengers, and number of trips, average 
annual receipts are estimated at $68,000 for charter vessels and 
$324,000 for headboats. Major activity centers for charter boats in 
Florida are Naples, Fort Myers/Fort Myers Beach, Destin, Panama City/
Panama City Beach, Pensacola, and the Florida Keys. The major activity 
centers for headboats are Clearwater, Fort Myers/Fort Myers Beach, 
Destin, Panama City/Panama City Beach, and the Florida Keys. Keys 
vessels, however, depend more on king mackerel, billfish, and dolphin 
than grouper species. Additional impacts from the alternatives proposed 
in this amendment would be borne by the extended communities at the 
activity centers and the businesses therein. However, these entities 
cannot be quantified due to lack of sufficient data.
    The Small Business Administration (SBA) considers a commercial 
fishing business to be a small business entity if the business is 
independently owned and operated, is not dominant in its field of 
operation, and has receipts of up to $3.5 million annually. The 
benchmark for a small business in the for-hire fishery is a firm with 
receipts of up to $6 million per year. The SBA benchmark for a fish 
dealer or

[[Page 7901]]

processing facility is a business with fewer than 500 employees. Given 
the revenue and employment information provided above, all the business 
entities potentially affected by the proposed rule are considered small 
entities.
    The proposed biological reference points and stock status criteria 
would not directly affect fishery behavior and, thus, would not produce 
any direct economic impacts. The proposed quota reductions and 
associated quota closure for the commercial shallow-water grouper 
fishery are expected to take effect by mid-November of the first year 
of implementation. This quota closure is estimated to reduce annual net 
revenues by 11 percent for longline vessels, 4 percent for vertical 
line vessels, and 5 percent for fish trap vessels. If vessels can 
successfully increase their landings and revenues more than their costs 
by increasing their number of trips, net income losses due to the quota 
closure provision can be partially offset. However, this would cause 
the quota to be reached faster every year, inducing a derby that may 
eventually result in decreases in ex-vessel prices and further erode 
vessel profits. The proposed quotas for tilefish and deep-water 
groupers match the historical commercial harvests for the species so 
that these particular measures are not expected to reduce the profits 
of commercial vessels.
    The proposed red grouper bag limit is not expected to substantially 
affect the revenues of for-hire vessels, although trip cancellations by 
recreational anglers may occur as a result of the change. However, only 
5 percent of charter vessels operating off the Florida Gulf coast have 
reported targeting one species, while 36 percent reported targeting 
three or fewer species, and 90 percent reported targeting eight or 
fewer species. About 29 percent of charter vessels have reported not 
targeting specific species. None of the headboats in the Florida Gulf 
target only one species, 60 percent target four or less species, and 41 
percent do not target specific species. Since the proposed bag limit 
change is specific to red groupers and, therefore, other species may 
still be targeted or caught, trip cancellations as a result of the red 
grouper bag limit reduction are expected to be relatively few. Fishing 
trip costs of for-hire vessels are also not likely to increase, since 
these vessels are expected to continue to fish in the same areas they 
traditionally fish. Total effects of the proposed rule on the net 
revenue or profit for the for-hire vessels in Florida, however, cannot 
be determined with certainty.
    The profit profile for dealers is not known. The projected 
reduction in ex-vessel sales ($2.248 million) as a result of the 
proposed rule equals approximately 11.5 percent of total shallow-water 
grouper revenues. It is unlikely, however, that any dealer with 
substantial business operations would be wholly dependent upon harvests 
of shallow-water grouper. Thus, dealer business failure as a result of 
quota reductions is not expected to be substantial.
    Three alternatives, including the no action alternative, were 
considered relative to the proposed specification of red grouper 
maximum sustainable yield. The proposed alternative would establish red 
grouper maximum sustainable yield as a range whereas each of the two 
additional action alternatives specify the reference points alternately 
as the lower and upper bounds of the proposed range. Since 
specification of the maximum sustainable yield is a required component 
of a fishery management plan, the no-action alternative is not a viable 
alternative. Although no economic impacts are expected to accrue to 
either the proposed or alternative specifications, since they merely 
serve as reference points for stock and fishery evaluation and would 
not directly affect fishery behavior, the proposed alternative was 
selected as best accounting for the uncertainty associated with the 
spawner-recruit relationship for this species.
    Three alternatives, including the no action alternative, were 
considered relative to the proposed specification of red grouper 
minimum stock size threshold. Since specification of the minimum stock 
size threshold is a required component of a fishery management plan, 
the no-action alternative is not a viable alternative. One alternative 
would establish a more conservative specification of the minimum stock 
size threshold than the proposed threshold, while another would 
establish a less conservative threshold. Although no economic impacts 
are expected to accrue to either the proposed or alternative 
specifications, since they merely serve as reference points for stock 
and fishery evaluation and would not directly affect fishery behavior, 
the proposed alternative was selected because it follows the 
recommendations of the NMFS Technical Guidance.
    Four alternatives, including the status quo alternative, were 
considered relative to the proposed specification of red grouper 
maximum fishing mortality rate. One alternative would establish a more 
conservative specification of the maximum fishing mortality rate, while 
the other three alternatives would establish a less conservative 
threshold. Although no economic impacts are expected to accrue to 
either the proposed or alternative specifications, since they merely 
serve as reference points for stock and fishery evaluation, the 
proposed alternative was selected because it follows the 
recommendations of the NMFS Technical Guidance.
    Three alternatives, including the no action alternative, were 
considered relative to the proposed specification of red grouper 
optimum yield. Since specification of the optimum yield is a required 
component of a fishery management plan, the no-action alternative is 
not a viable alternative. One alternative would establish a more 
conservative specification of the threshold, while another would 
establish a less conservative threshold. Although no economic impacts 
are expected to accrue to either the proposed or alternative 
specifications, since they merely serve as reference points for stock 
and fishery evaluation, the proposed alternative was selected because 
it follows the recommendations of the NMFS Technical Guidance.
    Five alternatives, including the no action alternative, were 
considered relative to the proposed red grouper rebuilding plan. Since 
specification of a rebuilding plan is a required component of a fishery 
management plan for a resource that has been identified as overfished, 
the no-action alternative is not a viable alternative. Three 
alternatives would establish the same recovery period, 10 years, but 
specify different annual allowable biological catches. One of these 
alternatives would allow a higher initial catch than the proposed 
alternative, thereby inducing lower short-term adverse impacts than the 
proposed alternative. This alternative would not, however, require 
mandatory evaluations of the allowable biological catch every 3 years, 
as the proposed alternative would, and may not allow harvests to 
increase during the recovery period, as the proposed alternative would. 
Thus, this alternative may result in increased costs over the recovery 
period relative to the proposed alternative. The two alternatives that 
would establish lower catches than the proposed alternative would 
result in increased adverse impacts relative to the proposed 
alternative. An additional alternative would establish a shorter 
recovery period than the proposed alternative, requiring lower harvest 
levels, thereby accelerating the recovery schedule but at greater 
short- term adverse economic impacts. The proposed alternative, 
therefore, best accomplishes NMFS' objectives while minimizing adverse 
economic impacts.

[[Page 7902]]

    Three alternatives, including the no action alternative, were 
considered relative to the proposed reduction in the shallow-water 
grouper quota by an amount equal to the reduction in the red grouper 
total allowable catch. Two alternatives would reduce the shallow-water 
grouper quota by amounts greater than the proposed alternative and 
would not, therefore, decrease the adverse impacts of the proposed 
rule. The no action alternative could lead to greater mortality of red 
grouper as a result of catch and release mortality, therefore 
jeopardizing the recovery of the species.
    Five alternatives, including the proposed alternative and the no-
action alternative, were considered relative to commercial quota 
closure. The no-action alternative would close the commercial fishery 
for shallow-water grouper when the aggregate quota is reached. This 
would result in less adverse economic impacts than the proposed 
alternative but would result in excessive red grouper mortality if the 
red grouper quota is reached before the shallow-water grouper quota is 
met. One alternative would close the commercial red grouper fishery 
when this quota is reached, but allow the fishery for other shallow-
water grouper species to continue until the aggregate quota is reached. 
While this alternative would result in less short-term adverse economic 
impacts than the proposed alternative, red grouper would continue to be 
caught as a bycatch species, thereby resulting in total red grouper 
mortality exceeding the quota. In addition to closing the commercial 
red grouper fishery, another alternative would close fishing for all 
shallow-water grouper species in certain areas of the Gulf when the red 
grouper quota is met. Multiple area closure options were considered, up 
to and including closure of the entire Gulf, which would match the 
proposed alternative. For those options that are not Gulf-wide, the 
resultant short-term adverse impacts would be less than those of the 
proposed alternative. These options would potentially allow, however, 
excessive mortality of red grouper since red grouper would continue to 
be caught as bycatch. The final alternative would allow continued red 
grouper harvest if the red grouper allocation has not been met when the 
shallow-water grouper aggregate quota has been achieved. This 
alternative, however, would result in the shallow-water grouper 
aggregate quota being exceeded. Since these other alternatives would 
result in either excessive red grouper or excessive total shallow-water 
grouper mortality, only the proposed alternative is consistent with the 
NMFS' objectives.
    Four alternatives, including the proposed alternative, were 
considered relative to fixed shallow-water grouper closed seasons. The 
proposed alternative is the status quo February 15 through March 15 
closed season on red grouper, gag, and black grouper. One alternative 
would replace this closure with a March 1 through May 31 closure, and 
would apply the closure to either the same three species or all 
shallow-water grouper species. This alternative, regardless of the 
species options, would be more stringent than necessary to reduce red 
grouper harvests and protect gag spawning aggregations and would result 
in greater economic losses than the proposed alternative. A second 
alternative incorporates the same species options as the first rejected 
alternative, but does not identify a specific closure period. Depending 
upon the period chosen, the resultant impacts could be less than or 
greater than those of the proposed alternative. However, the proposed 
alternative was selected since the period encompassed best meets the 
dual purpose of reducing red grouper harvest and protecting gag 
spawning aggregations. A final alternative would eliminate the fixed 
closure. While this alternative would also eliminate the short- term 
adverse impacts of the proposed alternative, the desired reduction in 
red grouper harvests and protection of gag would not be accomplished.
    Five alternatives, including the proposed alternative, were 
considered for commercial grouper trip limits. The proposed alternative 
is the status quo no commercial grouper trip limits. The remaining 
alternatives would either impose trip limits that applied throughout 
the year, or would be triggered upon shallow-water grouper harvests 
reaching 75 percent of the aggregate quota. Each of these alternatives 
would result in greater adverse economic impacts than the proposed 
alternative and are, therefore, not consistent with NMFS' intent.
    Approaches for constraining the recreational grouper harvest to its 
allocation included closures, bag limits, and minimum size limits. In 
addition to the proposed alternative, which would maintain the status 
quo of no fixed closed season for the recreational grouper fishery, 
four alternatives were considered relative to recreational closures. In 
addition to options for applying the closure to selected species in the 
shallow-water grouper complex or the entire complex, each of these 
alternatives specified fixed closed seasons. One alternative 
additionally limited the closure to a specific region of the Gulf as 
opposed to the entire Gulf. Allowing the recreational fishery to remain 
open year-round, as would be accomplished by the proposed alternative 
in combination with appropriate bag and size limits, was determined to 
produce the least adverse economic impacts on the fishery. Thus, the 
proposed alternative was determined to best achieve NMFS' objectives.
    Four alternatives were considered for the recreational grouper bag 
limit. While the proposed alternative would establish a limit of two 
red grouper out of the aggregate five-fish shallow-water grouper bag 
limit, one alternative would establish a similar limit on gag in 
addition to the red grouper limit. This alternative would, thus, be 
more restrictive than the proposed alternative and increase adverse 
impacts. Additionally, this alternative would exceed the protection 
currently believed necessary for gag. Another alternative would not 
change the red grouper limit but would instead reduce the total 
aggregate bag limit. Available options, however, would result in either 
or both reductions in red grouper harvests that are greater than 
necessary or reductions in the harvest of other grouper species that 
are not currently justified. Thus, this alternative would increase the 
negative impacts on the fishery. The final alternative, the status quo, 
would not achieve the required red grouper harvest reductions. The 
proposed alternative, therefore, best achieves the necessary harvest 
reductions at the least adverse impact.
    Four alternatives were considered to each of the proposed 
alternatives to retain the commercial and recreational red grouper 
minimum size limits at their current specification of 20 inches (50.8 
cm) total length. The larger minimum size limits, however, lead to 
harvest reductions that exceed the required reductions, generate 
increased discard mortality, and increase expected losses relative to 
the proposed alternatives. Thus, the proposed alternatives best achieve 
NMFS' objectives at the least adverse impact.
    With regards to the proposed alternative for specifying the fishing 
year, the status quo provides that the fishing year for all reef fish 
begins January 1 each year. Alternatives to the status quo provide for 
a fishing year to start after a fixed commercial season for any reef 
fish or for the grouper fishery only. These alternatives have no 
immediate impacts on fishing participants. Maintaining the status quo, 
however, provides stability and helps eliminate future uncertainty 
associated

[[Page 7903]]

with changes in the start of the open season for various species within 
the grouper fishery in particular and reef fish fishery in general.
    The proposed rule specifies a quota for tilefish and reduces the 
deep-water grouper quota from its current level, which has never been 
met, to the average annual harvest from 1996-2000, with the intent to 
minimize the potential adverse impacts of participants in the shallow-
water grouper fishery shifting effort to the deep-water species. In 
addition to options encompassing different quota levels and the status 
quo alternative, significant alternatives to the proposed rule come in 
two forms. One form sets different quota levels for deepwater groupers 
and tilefish independently, while the other form combines deep-water 
groupers and tilefish and provides for different quota levels for the 
aggregate. The proposed independent quotas for each group fall between 
the extremes of the alternative options and, thus, would be expected to 
result in less adverse impacts than the lower options, and more adverse 
impacts than the higher options. However, the proposed quotas are equal 
to the average commercial harvest for these species, so actual adverse 
impacts on fishing participants are expected to be minimal.
    Copies of the IRFA and RIR are available upon request (see 
ADDRESSES).

List of Subjects in 50 CFR Part 622

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

    Dated: February 13, 2004.
John Oliver,
Deputy Assistant Administrator for Operations, National 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.  622.39, paragraph (b)(1)(ii) is revised to read as 
follows:


Sec.  622.39  Bag and possession limits.

* * * * *
    (b) * * *
    (1) * * *
    (ii) Groupers, combined, excluding jewfish and Nassau grouper--5 
per person per day, but not to exceed 2 red grouper per person per day 
or 1 speckled hind or 1 Warsaw grouper per vessel per day.
* * * * *
    3. In Sec.  622.42, paragraphs (a)(1)(ii) and (iii) are revised and 
paragraph (a)(1)(iv) is added to read as follows:


Sec.  622.42  Quotas.

* * * * *
    (a) * * *
    (1) * * *
    (ii) Deep-water groupers (i.e., yellowedge grouper, misty grouper, 
Warsaw grouper, snowy grouper, and speckled hind), and, after the quota 
for shallow-water grouper is reached, scamp, combined--1.02 million lb 
(0.46 million kg), gutted weight, that is, eviscerated but otherwise 
whole.
    (iii) Shallow-water groupers (i.e., all groupers other than deep-
water groupers, jewfish, and Nassau grouper), including scamp before 
the quota for shallow-water groupers is reached, combined -8.80 million 
lb (3.99 million kg), gutted weight, that is, eviscerated but otherwise 
whole. Within the shallow-water grouper quota there is a separate quota 
for red grouper--5.31 million lb (2.41 million kg), gutted weight. When 
either the shallow-water grouper quota or the red grouper quota is 
reached, the entire shallow-water grouper fishery will be closed and 
the closure provisions of Sec.  622.43(a) introductory text and Sec.  
622.43(a)(1)(i) apply to the entire shallow-water grouper fishery.
    (iv) Tilefishes (i.e., tilefish and goldface, blackline, anchor, 
and blueline tilefish) combined--0.44 million lb (0.20 million kg), 
gutted weight, that is, eviscerated but otherwise whole.
* * * * *
[FR Doc. 04-3754 Filed 2-19-04; 8:45 am]
BILLING CODE 3510-22-S