[Federal Register Volume 69, Number 59 (Friday, March 26, 2004)]
[Proposed Rules]
[Pages 15778-15780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6856]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 040302080-4080-01; I.D. 021104C]
RIN 0648-AR44


Fisheries of the Northeastern United States; Atlantic Mackerel, 
Squid and Butterfish Fisheries; Framework Adjustment 4

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

ACTION: Proposed rule; request for comments.

-----------------------------------------------------------------------

SUMMARY: NMFS proposes to implement measures contained in Framework 
Adjustment 4 (Framework 4) to the Atlantic Mackerel, Squid, and 
Butterfish Fishery Management Plan (FMP). This action would extend the 
limited entry program for the Illex squid fishery for an additional 5 
years. This action is intended to further the objectives of the FMP and 
the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act).

DATES: Public comments must be received no later than 5 p.m., eastern 
standard time, on April 26, 2004.

ADDRESSES: Comments on Framework 4 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-SMB Framework Adjustment 4.'' Comments on Framework 4 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: ``Comments-SMB Framework Adjustment 
4.'' Comments also may be sent via facsimile (fax) to 978-281-9135.
    Copies of Framework 4, including the Draft Final Environmental 
Impact Statement (FEIS) and Regulatory Impact Review (RIR)/ Regulatory 
Flexibility Analysis (RFA), 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 FEIS/
RIR/RFA is accessible via the Internet at http://www.nero.noaa.gov.

FOR FURTHER INFORMATION CONTACT: Eric Jay Dolin, Fishery Policy 
Analyst, 978-

[[Page 15779]]

281-9259, fax 978-281-9135, e-mail [email protected].

SUPPLEMENTARY INFORMATION: In 1997, Amendment 5 to the FMP established 
a limited entry program for the Illex squid fishery in response to a 
concern that fishing capacity could otherwise expand to overexploit the 
stock. At the time the program was established, there was a concern 
that the capacity of the limited entry vessels might prove, over time, 
to be insufficient to fully exploit the annual quota. In response to 
this concern, a 5-year sunset provision was placed on the Illex squid 
limited entry program. Frameworks 2 and 3 to the FMP each extended the 
Illex squid moratorium for 1 year, and it is scheduled to expire on 
July 1, 2004. Since the implementation of the limited entry program, 
the Illex squid fishery's performance has demonstrated that the current 
fleet possesses the capacity to harvest the long-term potential yield 
from this fishery. The Mid-Atlantic Fishery Management Council 
(Council) is considering a permanent resolution to the issue of limited 
entry in an amendment to the FMP (Amendment 9). The Council was 
planning to present the public hearing document/DEIS for Amendment 9 at 
its June 2003 meeting, but NMFS review of the draft document indicated 
that extensive revisions were needed. As a result, the Council 
developed this action that would extend the moratorium until July 1, 
2009, to prevent overcapitalization while Amendment 9 is being revised 
and considered by the Council. This extension would comply with the 
criteria in section 303(b)(6) of the Magnuson-Stevens Act. The 
extension would allow the Council additional time to consider long-term 
management for the Illex squid fishery, including the limited entry 
program. Vessels that took small quantities of Illex squid in the past 
may continue to do so under the incidental catch provision of the FMP.

Classification

    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    The Council prepared an FEIS for this action; a notice of 
availability of the Draft Environmental Impact Statement was published 
on September 26, 2003 (68 FR 55604). 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 the preamble 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 any of the alternatives 
considered for this action.
    An IRFA was prepared that describes the impact this proposed rule, 
if adopted, would have on small entities. There are 72 vessels that 
have been issued moratorium permits, all of which would be impacted by 
this action. Since per vessel costs are not available for vessels 
participating in the Illex moratorium fishery, individual vessel 
profitability could not be estimated. Therefore, changes in gross 
revenue of the aggregate fleet is used as a proxy for changes in 
individual vessel profitability. Furthermore, assumptions are made that 
revenue losses and gains are shared equally among these vessels. There 
are no large entities (vessels) participating in this fishery, as 
defined in section 601 of the Regulatory Flexibility Act. Therefore, 
there are no disproportionate economic impacts. The preferred 
alternative is not expected to affect revenues or profits of the 
vessels that currently participate in the fishery. A copy of the 
complete analysis can be obtained from the Council (see ADDRESSES) or 
via the Internet at http://www.nero.noaa.gov. A summary of the analysis 
follows.
    In addition to the preferred Alternative 1, the Council considered 
three non-preferred alternatives. Alternative 2 would extend the 
moratorium on entry to the Illex fishery for an additional 2 years 
(through July 1, 2005); Alternative 3 would allow the moratorium on 
entry to the Illex fishery to expire on July 1, 2004 (no action); and 
Alternative 4 would extend the moratorium on entry to the Illex fishery 
indefinitely. Alternative 4 was rejected from further consideration and 
analysis because the Council considered the measure to be beyond the 
scope of a framework action. The framework adjustment process set forth 
at 50 CFR 648.24 is a mechanism to add management measures to or adjust 
management measures in the FMP. As a consequence, the Illex squid 
moratorium limitation in the FMP is subject to an adjustment through 
this framework adjustment process. As reflected in the administrative 
record underlying the adoption and implementation of this process, this 
process was developed to make revisions to the measures in the FMP that 
did not represent major changes to the cornerstone provisions of the 
FMP. One of the cornerstone provisions in the FMP is the moratorium on 
entry into the Illex squid fishery, which, by virtue of Amendment 5 to 
the FMP, is of limited duration. Alternative 4 of Framework Action 4 
would eliminate the sunset provision of the moratorium and extend the 
moratorium indefinitely. This would ostensibly close the door on new 
entry into the fishery. Such a change goes beyond an adjustment to the 
Illex squid moratorium provision of the FMP that can be effected 
through the framework adjustment. This is the basis for the conclusion 
that Alternative 4 should be rejected. The framework process involves a 
somewhat truncated administrative process that incorporates the 
opportunity for public participation at two Council meetings, which are 
currently held some 6 weeks apart. Consideration of extension of the 
Illex moratorium indefinitely demands a more deliberative and 
widespread public process. Under the Magnuson-Stevens Act, the process 
of amending the FMP is the appropriate mechanism to extend the 
moratorium indefinitely. This alternative is currently being considered 
in Amendment 9 to the FMP.
    The preferred alternative and Alternative 2 would both extend the 
moratorium on entry of new vessels into the Illex fishery; therefore, 
no impact is expected on vessels in the fishery through 2009, compared 
to individual vessel revenues in 2002. The Council assumed that the 
market and prices would remain stable. Therefore, any changes in 
individual vessel revenues would be the result of factors outside the 
scope of the moratorium (e.g., change in fishing practices for 
individual vessels, or changes in abundance and distribution of Illex 
squid).
    Under Alternative 3, the no-action alternative, the Illex fishery 
would revert to open access. In 2002, there were 72 vessels permitted 
to participate in the directed Illex fishery, however, only 50 percent 
of those vessels (36 vessels) landed any Illex squid in 2002. The Illex 
squid vessels currently permitted to participate in the fishery have 
the capability to harvest the total harvest level. In fact, in 1998, 
permitted vessels were able to land the total harvest level and the 
fishery was closed early that year. That year, more than 99 percent of 
the total Illex squid landings were made by 37 vessels or about 50 
percent of the vessels holding Illex moratorium permits. The remaining 
1 percent of the Illex squid landings were made by 71 vessels holding 
incidental catch permits. The elimination of the moratorium of entry to 
the Illex fishery will not affect the manner in which the total harvest 
level for this species is established. The Illex fishery is managed 
through annual specifications and management measures, which are 
designed to assure that the target harvest level is not exceeded. Thus, 
overall Illex

[[Page 15780]]

landings will not be affected. However, if a significant number of 
additional vessels enter the fishery as a consequence of Alternative 3, 
it is possible that the open access condition may affect the current 
revenue structures of participants and/or create derby-style fishing 
practices which could potentially lead to an early closure. This 
situation may create market gluts and price instability in the fishery.

List of Subjects in 50 CFR Part 648

    Fisheries, Fishing, Reporting and recordkeeping requirements.

    Dated: March 22, 2004.
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 heading of paragraph (a)(5)(i) is revised to 
read as follows:


Sec.  648.4  Vessel permits.

    (a) * * *
    (5) * * *
    (i) Loligo squid/butterfish and Illex squid moratorium permits 
(Illex squid moratorium is applicable from July 1, 1997, until July 1, 
2009). * * *
* * * * *
[FR Doc. 04-6856 Filed 3-25-04; 8:45 am]
BILLING CODE 3510-22-S