[Federal Register Volume 69, Number 209 (Friday, October 29, 2004)]
[Proposed Rules]
[Pages 63200-63316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-24103]



[[Page 63199]]

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Part II





Department of Commerce





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National Oceanic and Atmospheric Administration



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50 CFR Parts 679 and 680



Fisheries of the Exclusive Economic Zone Off Alaska; Allocating Bering 
Sea and Aleutian Islands King and Tanner Crab Fishery Resources; 
Proposed Rule

  Federal Register / Vol. 69, No. 209 / Friday, October 29, 2004 / 
Proposed Rules  

[[Page 63200]]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Parts 679 and 680

[Docket No. 040831251-4251-01; I.D. 100804A]
RIN 0648-AS47


Fisheries of the Exclusive Economic Zone Off Alaska; Allocating 
Bering Sea and Aleutian Islands King and Tanner Crab Fishery Resources

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 regulations implementing Amendments 18 and 19 to 
the Fishery Management Plan for Bering Sea/Aleutian Islands (BSAI) King 
and Tanner Crabs (FMP). Amendments 18 and 19 amend the FMP to include 
the Voluntary Three[hyphen]Pie Cooperative Program (hereinafter 
referred to as the Crab Rationalization Program (Program)). Congress 
amended the Magnuson[hyphen]Stevens Fishery Conservation and Management 
Act (Magnuson[hyphen]Stevens Act) to require the Secretary of Commerce 
to approve the Program. The proposed action is necessary to increase 
resource conservation, improve economic efficiency, and improve safety. 
This action is intended to promote the goals and objectives of the 
Magnuson[hyphen]Stevens Act, the FMP, and other applicable law.

DATES: Comments must be received no later than December 13, 2004.

ADDRESSES: Send comments to Sue Salveson, Assistant Regional 
Administrator, Sustainable Fisheries Division, Alaska Region, NMFS, 
Attn: Lori Durall. Comments may be submitted by:
     Mail: P.O. Box 21668, Juneau, AK 99802.
     Hand Delivery to the Federal Building: 709 West 9th 
Street, Room 420A, Juneau, AK.
     Facsimile: 907[hyphen]586[hyphen]7557.
     E[hyphen]mail: [email protected]. Include in the 
subject line of the e[hyphen]mail the following document identifier: 
Crab Rationalization RIN 0648-AS47. E[hyphen]mail comments, with or 
without attachments, are limited to 5 megabytes.
     Webform at the Federal eRulemaking Portal: 
www.regulations.gov. Follow the instructions at that site for 
submitting comments.
    Send comments on collection[hyphen]of[hyphen]information 
requirements to the same NMFS address and also to the Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20503 (Attn: NOAA Desk Officer). Also, send comments to 
David Rostker, OMB, by e[hyphen]mail at [email protected] or by 
facsimile to 202[hyphen]395[hyphen]7285.
    Copies of Amendments 18 and 19 and the Environmental Impact 
Statement (EIS) for this action may be obtained from the NMFS Alaska 
Region at the address above or from the Alaska Region website at http://www.fakr.noaa.gov/sustainablefisheries/crab/eis/default.htm. The EIS 
contains as appendices the Regulatory Impact Review (RIR), Initial 
Regulatory Flexibility Analysis (IRFA), and Social Impact Assessment 
(SIA) prepared for this action.

FOR FURTHER INFORMATION CONTACT: Susan Salveson, 
907[hyphen]586[hyphen]7228 or [email protected].

SUPPLEMENTARY INFORMATION: In January 2004, Congress amended section 
313 of the Magnuson[hyphen]Stevens Act through the Consolidated 
Appropriations Act of 2004 (Pub. L. 108[hyphen]199, section 801), by 
adding paragraph (j). As amended, section 313(j)(1) requires the 
Secretary to approve by January 1, 2005, and implement thereafter, the 
Program as it was adopted by the North Pacific Fishery Management 
Council (Council). Amendments 18 and 19 amend the FMP to include the 
Program.
    This proposed rule implements Amendments 18 and 19 to the FMP. The 
Notice of Availability for these amendments was published in the 
Federal Register on September 1, 2004 (69 FR 53397). NMFS solicited 
public comments on the proposed amendments through November 1, 2004. 
NMFS published the amendments in September so that the decision date 
for approval of the amendments will be before the statutory deadline of 
January 1, 2005.
    The Program would allocate BSAI crab resources among harvesters, 
processors, and coastal communities. The Council developed the Program 
over a 6[hyphen]year period to accommodate the specific dynamics and 
needs of the BSAI crab fisheries. The Program builds on the Council's 
experiences with the halibut and sablefish Individual Fishing Quota 
(IFQ) program and the American Fisheries Act (AFA) cooperative program 
for Bering Sea pollock. The Program is a limited access system that 
balances the interests of several groups who depend on these fisheries. 
The Program would address conservation and management issues associated 
with the current derby fishery and would reduce bycatch and associated 
discard mortality. The Program also would increase the safety of crab 
fishermen by ending the race for fish. Share allocations to harvesters 
and processors, together with incentives to participate in fishery 
cooperatives, would increase efficiencies, provide economic stability, 
and facilitate compensated reduction of excess capacities in the 
harvesting and processing sectors. Community interests would be 
protected by Community Development Quota (CDQ) allocations and regional 
landing and processing requirements, as well as by several community 
protection measures.
    This preamble first provides a Crab Rationalization Program 
overview that presents a general description of all of the Program 
components. Subsequent sections focus on the specifics of the following 
Program components: quota share allocation, processor quota share 
allocation, IFQ and individual processing quota (IPQ) issuance, quota 
transfers, use caps, crab harvesting cooperatives, protections for Gulf 
of Alaska groundfish fisheries, binding arbitration, monitoring, 
economic data collection, and cost recovery fee collection.

Crab Rationalization Program Overview

    The Program would apply to the following BSAI crab fisheries: 
Bristol Bay red king crab (Paralithodes camtschaticus), Western 
Aleutian Islands (Adak) golden king crab (Lithodes aequispinus) 
[hyphen] West of 174[deg] W., Eastern Aleutian Islands (Dutch Harbor) 
golden king crab [hyphen] East of 174[deg] W., Western Aleutian Islands 
(Adak) red king crab - West of 179[deg] W., Pribilof Islands blue king 
crab (P. platypus) and red king crab, St. Matthew Island blue king 
crab, Bering Sea snow crab (Chionoecetes opilio), and Bering Sea Tanner 
crab (C. bairdi). Golden king crab is also known as brown king crab. In 
this document, the phrases ``crab fishery'' and ``crab fisheries'' 
refer to these fisheries, unless otherwise specified.
    Several crab fisheries under the FMP would be excluded from the 
Program, including the Norton Sound red king crab fishery, which is 
operated under a ``superexclusive'' permit program intended to protect 
the interests of local, small[hyphen]vessel participants. Also excluded 
from this Program are the Aleutian Islands Tanner crab fishery, 
Aleutian Islands red king crab fishery east of 179[deg] W. long., and 
the Bering Sea golden king crab, scarlet king crab (L. couesi), 
triangle Tanner crab (C. angulatus), and

[[Page 63201]]

grooved Tanner crab (C. tanneri) fisheries.

Harvest Sector

    Qualified harvesters would be allocated quota share (QS) in each 
crab fishery. To receive a QS allocation, a harvester must hold a 
permanent, fully transferable license limitation program (LLP) license 
endorsed for that crab fishery. Quota share represents an exclusive but 
revokable privilege that provides the QS holder with an annual 
allocation to harvest a specific percentage of the total allowable 
catch (TAC) from a fishery. IFQs are the annual allocations of pounds 
of crab for harvest that represent a QS holder's percentage of the TAC. 
Using LLP licenses for defining eligibility in the Program would 
maintain current fishery participation. A harvester's allocation of QS 
for a fishery would be based on the landings made by his or her vessel 
in that fishery. Specifically, each allocation would be the harvester's 
average annual portion of the total qualified catch during a specific 
qualifying period. Qualifying periods were selected to balance 
historical and recent participation. Different periods were selected 
for different fisheries to accommodate closures and other circumstances 
in the fisheries in recent years.
    Quota share would be designated as either catcher vessel (CV) 
shares or catcher/processor (CP) shares, depending on the nature of the 
LLP license and whether the vessel processed the qualifying harvests on 
board. Catcher vessel IFQ would be issued in two classes, Class A IFQ 
and Class B IFQ. Crabs harvested with Class A IFQ would require 
delivery to a processor holding unused processing quota. Class A IFQ 
landings also would be subject to a regional delivery requirement. 
Under this regional requirement, landings would be delivered either in 
a North or in a South region (in most fisheries). Crabs harvested with 
Class B IFQ could be delivered to any processor and would not be 
regionally designated. Landings in excess of IFQ would be forfeited in 
all cases. Class B IFQs are intended to provide ex[hyphen]vessel price 
negotiating leverage to harvesters. For each region of each fishery, 
the allocation of Class B IFQ would be 10 percent of the total 
allocation of IFQ to the CV sector.
    Transfer of QS and IFQ, either by sale or lease, would be allowed, 
subject to limits including caps on the amount of shares a person may 
hold or use. To be eligible to receive transferred QS or IFQ, a person 
would have to meet specific eligibility criteria. Initial recipients of 
QS, CDQ groups, and eligible crab community entities would be exempt 
from the transfer eligibility criteria.
    Separate caps would be imposed to limit the amount of QS and IFQ a 
person could hold and to limit the use of IFQ on board a vessel. These 
caps are intended to prevent negative impacts from what can be 
described as excessive consolidation of shares. Excessive share 
holdings are prohibited by the Magnuson[hyphen]Stevens Act. Different 
caps were chosen for the different fisheries because fleet 
characteristics and dependence differ across fisheries. Separate caps 
on QS holdings would be established for CDQ groups, which represent 
rural western Alaska communities. Processor holdings of QS would also 
be limited by caps on vertical integration. Quota share holders could 
retain and use initial allocations of QS above the caps.

Crew Sector

    To protect their interests in the fisheries, qualifying crew would 
be allocated 3 percent of the initial QS pool. These shares are 
intended to provide long term benefits to captains and crew. The 
Council originally intended this provision to apply only to vessel 
captains. However, NMFS has determined that documentation necessary to 
allocate Crew QS, called C shares by the Council, would require that 
these shares be initially issued to individuals who hold a State of 
Alaska Interim Use Permit. Most likely, this individual would be the 
captain; however, the State does not require that the holder of the 
Interim Use Permit be the vessel captain. The allocation to crew would 
be based on the same qualifying years and computational method used for 
QS allocations to LLP license holders. Crew (C) QS would be issued as 
CVC QS and CPC QS, depending on the activity in the qualifying years. 
To ensure that Crew QS and IFQ benefit at[hyphen]sea participants in 
the fisheries, Crew IFQ could be used only when the IFQ holder is on 
board the vessel, except when a Crew QS holder joins a cooperative.
    To be eligible to receive an allocation, an individual would be 
required to have historic and recent participation. Historic 
participation would be demonstrated by at least one landing in each of 
three of the qualifying years. Recent participation would be 
demonstrated by at least one landing in two of the three most recent 
seasons, with some specific exceptions.
    CV Crew IFQ would be required to be delivered to shore[hyphen]based 
or floating processors for processing. CV Crew IFQ would not be subject 
to specific delivery requirements until July 1, 2008. After July 1, 
2008, CV Crew IFQ would be subject to the Class A IFQ/Class B IFQ 
distinction with commensurate regional delivery requirements unless the 
Council determines, after review, not to apply those designations. 
Before July 1, 2007, the Council would review CV Crew IFQ landing 
patterns to determine whether the distribution of landings among 
processors and communities of CV Crew IFQ differs from the distribution 
of IFQ landings.
    CP crew would be allocated CPC QS and IFQ that include a harvesting 
and on[hyphen]board processing privilege. Harvests with CPC IFQ also 
could be delivered to shore[hyphen]based or floating processors.
    Crew QS and IFQ could be transferred to eligible individuals. 
Leasing of Crew IFQ would be permitted before July 1, 2008. After July 
1, 2008, leasing would be permitted only in the case of a documented 
hardship (such as a medical hardship or loss of vessel) for the term of 
the hardship, subject to a maximum of 2 years over a 10[hyphen]year 
period. Individual Crew QS holdings would be capped.

Processing Sector

    A processing privilege, analogous to the harvesting privilege 
allocated to harvesters, would be allocated to processors. Qualified 
processors would be allocated processor quota share (PQS) in each crab 
fishery. PQS represents an exclusive but revocable privilege to receive 
deliveries of a specific portion of the annual TAC from a fishery. An 
annual allocation of pounds of crab based on the PQS is IPQ. IPQs would 
be issued for 90 percent of the IFQ allocated harvesters, equaling the 
amount of IFQ allocated as Class A IFQ. Processor privileges would not 
apply to the remaining TAC allocated as Class B IFQ, or for Crew IFQ 
until July 1, 2008. IPQs would be regionally designated for processing 
(corresponding to the regional designation of the Class A IFQ).
    PQS allocations would be based on processing history during a 
specified qualifying period for each fishery. A processor's initial 
allocation of PQS in a fishery would equal its share of all qualified 
pounds of crab processed in the qualifying period. Processor shares 
would be transferable, including the leasing of IPQs and the sale of 
PQS, subject to caps and to community protection measures. IPQs could 
be used without transfer at any facility or plant operated by a 
processor. New processors could enter the fishery by purchasing PQS or 
IPQ or by purchasing crab harvested with Class B IFQ or crab harvested 
by CDQ groups or the Adak community entity.

[[Page 63202]]

    A PQS holder would be limited to holding 30 percent of the PQS 
issued for a fishery, except that initial allocations of shares above 
this limit could be retained and used. In addition, in the snow crab 
fishery, no processor would be permitted to use or hold in excess of 60 
percent of the IPQs issued for the Northern region.

Catcher/Processor Sector

    CPs have a unique position in the Program because they participate 
in both the harvesting and processing sectors. To be eligible for CP 
QS, a person would be required to hold a permanent, fully transferable 
LLP license designated for CP use. In addition, a person must have 
processed crab on board the CP, whose history gave rise to the LLP 
license, in either 1998 or 1999. Persons meeting these qualification 
requirements would be allocated CP QS in accordance with the allocation 
rules for QS for all qualified catch that was processed on board. These 
shares would represent a harvest privilege and an on[hyphen]board 
processing privilege. Catcher/Processor QS would not have regional 
designations.

Regionalization

    The regional delivery requirements for QS are intended to preserve 
the historic geographic distribution of landings in the fisheries. 
Communities in the Pribilof Islands are the prime beneficiaries of this 
regionalization provision. Two regional designations would be created 
in most fisheries. The North region would be all areas in the Bering 
Sea north of 56[deg]20' N. latitude. The South region would be all 
other areas. Catcher vessel QS, Class A IFQ, PQS, and IPQ would be 
regionally designated. Crab harvested with regionally designated IFQ 
would be required to be delivered to a processor in the designated 
region. Likewise, a processor with regionally designated IPQ would be 
required to accept delivery of and process crab in the designated 
region. Legal landings in a region in the qualifying years would result 
in QS and PQS designated for that region.
    The Program has two exceptions to the North/South regional 
designations. In the Western Aleutian Islands golden king crab fishery, 
50 percent of the Class A IFQ and IPQ would be designated as west 
shares to be delivered west of 174[deg] W. longitude. The remaining 50 
percent of the Class A IFQ and IPQ would have no regional designation 
and would not be subject to a regional delivery requirement. The west 
designation would be applied to all Class A IFQ and IPQ regardless of 
the historic location of landings in the fishery. A second exception is 
the Bering Sea Tanner crab fishery, which would have no regional 
designation. This fishery is anticipated to be conducted primarily as a 
concurrent fishery with the regionalized Bristol Bay red king crab and 
Bering Sea snow crab fisheries, making the regional designation of 
Tanner crab landings unnecessary.

Cooperatives

    Harvesters may form voluntary cooperatives in order to collectively 
manage their IFQ holdings. A minimum membership of four unique QS 
holders would be required for cooperative formation. Quota share 
holders who also (1) hold PQS or IPQ, (2) are affiliated with a person 
who holds PQS or IPQ, (3) process Class B IFQ, or (4) are affiliated 
with a person that processes Class B IFQ, would be prohibited from 
joining a crab harvesting cooperative. A cooperative would be required 
to apply for a cooperative IFQ permit. The cooperative IFQ permit would 
display the aggregate amount of IFQ in each crab fishery that would be 
yielded by the collective QS holdings of the members. IFQ could be 
transferred between cooperatives, subject to NMFS' approval. 
Cooperative members would be allowed to leave a cooperative or change 
cooperatives on an annual basis prior to the July 1 deadline for the 
annual cooperative IFQ permit application. Vessels that are used 
exclusively to harvest cooperative IFQ would not be subject to use 
caps. Cooperatives are free to associate with one or more processors to 
the extent allowed by antitrust law.

Community Protection Measures

    The Program includes several provisions intended to protect 
communities from adverse impacts that could result from the Program. 
Communities eligible for the community protection measures would be 
those with 3 percent or more of the qualified landings in any crab 
fishery included in the Program. Based on these criteria, NMFS has 
preliminarily determined that the following crab communities meet this 
criteria: Adak, Akutan, Dutch Harbor, Kodiak, King Cove, False Pass, 
St. George, St. Paul, and Port Moller. All of these communities are 
identified as eligible crab communities (ECCs) for purposes of 
community protection measures.
    ``Cooling off'' provision. Until July 1, 2007, PQS and IPQ based on 
processing history from the ECCs could not be transferred from those 
communities. The use of IPQ outside the community during this period 
would be limited to 20 percent of the IPQ and for specific hardships. 
PQS and IPQ from three crab fisheries would be exempt from the cooling 
off provision: Tanner crab, Western Aleutian Islands red king crab, and 
Western Aleutian Islands golden king crab.
    Individual processing quota caps. IPQ caps would be established to 
limit the annual issuance of IPQs in seasons when the Bristol Bay red 
king crab or snow crab TAC exceeds a threshold amount. Under these 
circumstances, Class A IFQ issued in excess of these thresholds would 
not be subject to the IPQ landing requirements but would be subject to 
the regional delivery requirements.
    Sea time waiver. Sea time eligibility requirements for the purchase 
of QS would be waived for CDQ groups and community entities in ECCs, 
allowing those communities to build and maintain local interests in 
harvesting. CDQ groups and ECCs would be eligible to purchase PQS but 
would not be permitted to purchase Crew QS.
    Right of first refusal (ROFR). ECCs, except for Adak, would have a 
ROFR on the transfer of PQS and IPQ originating from processing history 
in the community if the transfer would result in relocation of the 
shares outside the community. Adak would not be eligible for the ROFR 
provision because Adak would receive a direct allocation of Western 
Aleutian Islands golden king crab. In addition, the City of Kodiak and 
the Kodiak Island Borough in the Gulf of Alaska (GOA) would have a ROFR 
on the transfer of PQS and IPQ from communities in the GOA north of 
56[deg]20' N. latitude.

Community Development Quota Program and Community Allocations

    Community Development Quota Program. The CDQ Program would be 
expanded to include the Eastern Aleutian Islands golden king crab 
fishery and the Western Aleutian Islands red king crab fishery. In 
addition, the CDQ allocations in all crab fisheries covered by the 
Program would be increased from 7.5 to 10 percent of the TAC. The 
increase would not apply to the CDQ allocation of Norton Sound red king 
crab because this fishery is excluded from the Program. The crab CDQ 
fisheries would be managed as separate commercial fisheries by the 
State under authority deferred to it under the FMP. The State would 
establish observer coverage requirements, State permitting 
requirements, and transfer provisions among the CDQ groups. It also 
would monitor catch to determine when quotas had been reached, enforce 
any penalties

[[Page 63203]]

associated with quota overages, and monitor compliance with the 
requirement that CDQ groups must deliver at least 25 percent of their 
allocation to shore[hyphen]based processors.
    Crab harvested under the CDQ allocations (except Norton Sound red 
king crab) would be subject to some of the Federal requirements that 
apply to all crab fisheries under the Program including permitting, 
recordkeeping and reporting, a vessel monitoring system, and the cost 
recovery fees. The specifics of these requirements are discussed in 
more detail in later sections.
    The CDQ groups could participate in the crab fisheries as holders 
of both QS and PQS. Some CDQ groups would be initial recipients of QS 
because they hold LLP licenses and the appropriate catch history. In 
addition, the CDQ groups would be exempt from the transfer eligibility 
requirement related to sea time so they would be eligible to obtain QS 
by transfer, subject to QS use caps for CDQ groups. The CDQ groups also 
would be able to obtain PQS by transfer because there are no transfer 
restrictions on PQS. While harvesting crab with IFQ, the CDQ groups 
would be subject to the same regulations as apply to other IFQ holders. 
The purchase and holding of QS and PQS by the CDQ groups would be 
subject to the administrative regulations for the CDQ Program at 50 CFR 
part 679. These regulations include information, reporting, prior 
approval, and use requirements for all CDQ investments, which include 
QS and PQS.
    Adak allocation. An allocation of 10 percent of the TAC of Western 
Aleutian Islands golden king crab would be made to the community of 
Adak. The allocation to Adak would be made to a nonprofit entity 
representing the community, with a board of directors elected by the 
community. As an alternative and in the interim, the allocation and 
funds derived from it could be held in trust by the Aleut Enterprise 
Corporation for a period not to exceed 2 years, if the Adak community 
non[hyphen]profit entity is not formed prior to implementation of the 
Program. Oversight of the use of the allocation for ``fisheries related 
purposes'' would be deferred to the State under the FMP. NMFS would 
have no direct role in oversight of the use of this allocation. The 
State would provide an implementation review to the Council to ensure 
that the benefits derived from the allocation accrue to the community 
and achieve the goals of the fisheries development plan. The Adak 
allocation would be managed as a separate commercial fishery by the 
State in a manner similar to management of the crab CDQ fisheries. As 
with the CDQ allocations, crab harvested under the Adak allocation 
would be subject to several requirements that apply to all crab 
fisheries under the Program including permitting, recordkeeping and 
reporting, a vessel monitoring system, and the cost recovery fees.
    Community purchase. Any non[hyphen]CDQ community in which 3 percent 
or more of any crab fishery was processed could form a 
non[hyphen]profit entity to receive QS, IFQ, PQ and IPQ transfers on 
behalf of the community. The non[hyphen]profit entity would be called 
an eligible crab community organization (ECCO).

Protections for Participants in Other Fisheries

    The Program would greatly increase the flexibility for crab 
fishermen to chose when and where to fish for their IFQ, and this 
increased flexibility would provide crab fishermen with increased 
opportunity to participate in other fisheries. Restrictions on the 
participants in other fisheries, also called sideboards, would restrict 
a vessel's harvests to its historical landings in all GOA groundfish 
fisheries (except the sablefish fishery). Vessels with less than 
100,000 pounds (45,359 kg) of total snow crab landings and more than 
500 metric tons (mt) (1,102,311 lb) of total Pacific cod landings in 
the GOA during the qualifying years would be exempt from the 
restrictions. In addition, vessels with less than 50 mt (110,231 lb) of 
total groundfish landings in the GOA during the qualifying period would 
be prohibited from harvesting Pacific cod from the GOA. Restrictions 
would be applied to vessels but would also restrict landings made using 
a groundfish LLP license derived from the history of a vessel so 
restricted, even if that LLP license is used on another vessel. 
Groundfish sideboards in the GOA would be managed by NMFS through 
fleet[hyphen]wide sideboard directed fishing closures in Federal waters 
and for the parallel fishery in state waters.

Arbitration System

    BSAI crab fisheries have a history of contentious price 
negotiations. Harvesters have often acted collectively to negotiate an 
ex[hyphen]vessel price with processors, which at times delayed fishing. 
The Arbitration System was developed to compensate for complications 
arising from the creation of QS/IFQ and PQS/IPQ. The complications 
include price negotiations that could continue indefinitely and result 
in costly delays and the ``last person standing'' problem where the 
last Class A IFQ holder to contract deliveries would have a single IPQ 
holder to contract with, effectively limiting any ability to use other 
processor markets for negotiating leverage. To ensure fair price 
negotiations, the Arbitration System includes a provision for open 
negotiations among IPQ and IFQ holders as well as various negotiation 
approaches, including: (a) a share matching approach where IPQ holders 
make known to unaffiliated IFQ holders that have uncommitted IFQ 
available the amount of uncommitted IPQ they have available so the IFQ 
holder can match up its uncommitted IFQ by indicating an intent to 
deliver its catch to that IPQ holder; (b) a lengthy season approach 
that allows parties to postpone binding arbitration until sometime 
during the season; and (c) a binding arbitration procedure to resolve 
price disputes between an IPQ holder and eligible IFQ holders.
    The arbitration process would begin preseason with a market report 
for each fishery prepared by an independent market analyst selected by 
the PQS and QS holders and the establishment of a non[hyphen]binding 
fleet wide benchmark price by an arbitrator who has consulted with 
fleet representatives and processors. Information provided by the 
sectors would be historical in nature and at least 3 months old. This 
non[hyphen]binding price would guide the above described negotiations. 
Information sharing among IPQ and IFQ holders, collective negotiations, 
and release of arbitration results would be limited to minimize the 
antitrust risks of participants in the Program.
    The binding arbitration procedure in a last best (or final) offer 
format. The IPQ holder, each IFQ holder, and each crab harvesting 
cooperative could submit an offer. For each IFQ holder or cooperative, 
the arbitrator would select between the IFQ holder's (or cooperative's) 
offer and the IPQ holder's offer. After an arbitration decision is 
rendered, an eligible IFQ holder with uncommited IFQ could 
opt[hyphen]in to the completed contract by accepting all terms of the 
arbitration decision as long as the IPQ holder held sufficient 
uncommitted IPQ.

Monitoring and Enforcement

    NMFS and the State of Alaska would coordinate monitoring and 
enforcement of the crab fisheries. Harvesting and processing activity 
would need to be monitored for compliance with the implementing 
regulations. Methods for catch accounting and catch monitoring plans 
would generate data to provide accurate and reliable round weight 
accounting of the total catch and landings to manage quota share

[[Page 63204]]

accounts, prevent overages of IFQ and IPQ, and determine 
regionalization requirements and fee liability. Monitoring measures 
would include landed catch weight and species composition, bycatch, and 
deadloss to estimate total fishery removals.

Economic Data Collection

    The Program includes a comprehensive economic data collection 
program to aid the Council and NMFS in assessing the success of the 
Program and developing amendments necessary to mitigate any unintended 
consequences. An Economic Data Report (EDR), containing cost, revenue, 
ownership, and employment data, would be collected on a periodic basis 
from the harvesting and processing sectors. The data would be used to 
study the economic impacts of the Program on harvesters, processors, 
and communities. Participation in the data collection program would be 
mandatory for all participants in the crab fisheries.

Cost Recovery and Fee Collection

    NMFS would establish a cost recovery fee system, required by 
section 304(d)(2) of the Magnuson[hyphen]Stevens Act, to recover actual 
costs directly related to the management and enforcement of the 
Program. The crab cost recovery fee would be paid in equal shares by 
the harvesting and processing sectors and would be based on the 
ex[hyphen]vessel value of all crab harvested under the Program, 
including CDQ crab and Adak crab. NMFS also would enter into a 
cooperative agreement with the State of Alaska to use IFQ cost recovery 
funds in State management and observer programs for BSAI crab 
fisheries. The crab cost recovery fee is prohibited from exceeding 3 
percent of the annual ex[hyphen]vessel value. Within this limit, the 
collection of up to 133 percent of the actual costs of management and 
enforcement under the Program would be authorized, which would provide 
for fuller reimbursement of management costs after allocation of 25 
percent of the cost recovery fees to the crew loan program.

Crew Loan Program

    To aid captains and crew in purchasing QS, a low interest loan 
program (similar to the loan program under the halibut and sablefish 
IFQ program) would be created. This program would be funded by 25 
percent of the cost recovery fees as required by the 
Magnuson[hyphen]Stevens Act. Loan money would be accessible only to 
active participants and could be used to purchase either QS or Crew QS. 
Quota share purchased with loan money would be subject to all use and 
leasing restrictions applicable to Crew QS for the term of the loan. 
This proposed rule does not contain proposed regulations to implement 
the crew loan program. Those proposed regulations will be developed by 
NMFS Financial Services.

Annual Reports and Program Review

    NMFS, in conjunction with the State of Alaska, would produce annual 
reports on the Program. Before July 1, 2007, the Council would review 
the PQS, binding arbitration, and C share components of the Program. 
After July 1, 2008, the Council would conduct a preliminary review of 
the Program. A full review of the entire Program would be undertaken in 
2010. Additional reviews would be conducted every 5 years. These 
reviews are intended to objectively measure the success of the Program 
in achieving the goals and objectives specified in the Council's 
problem statement and the Magnuson[hyphen]Stevens Act. These reviews 
would examine the impacts of the Program on vessel owners, captains, 
crew, processors, and communities, and include an assessment of options 
to mitigate negative impacts.
    The following sections provide more detail on the key components of 
the Program.

Quota Share Allocation

    This section identifies those who would be eligible to receive QS 
in the initial allocation and describes the four QS sectors. The 
following sections discuss the application process and the proposed 
mechanism for deriving QS and IFQ in each sector. Qualified harvesters 
would be allocated QS in each crab fishery. To receive an initial QS 
allocation, a person must either: (1) hold a permanent, fully 
transferable LLP license endorsed for that crab fishery; or (2) have 
made a landing under the authority of a State of Alaska Interim Use 
Permit issued to crew members by the State of Alaska. Quota share would 
represent an exclusive but revokable privilege that provides the QS 
holder with an annual allocation to harvest a specific percentage of 
the TAC from a fishery. The annual allocations to QS holders of TAC, in 
pounds, are referred to as IFQ.

QS Sectors

    The sector of QS issued would be based on eligibility and fishing 
activity during the qualified period. These distinctions yield four 
sectors of QS, as follows:
    (1) Catcher Vessel Owner (CVO) QS would be issued to an LLP license 
holder who harvested and delivered unprocessed crab to a processor.
    (2) Catcher/Processor Owner (CPO) QS would be issued to a CP LLP 
license holder for crab harvested and processed crab on board the same 
vessel or under that LLP license.
    (3) Catcher Vessel Crew (CVC) QS would be issued to a crew member 
who held a State of Alaska Interim Use Permit and signed a fish ticket 
for the delivery of crab during the qualifying period.
    (4) Catcher/Processor Crew (CPC) QS would be issued to a crew 
member who held a State of Alaska Interim Use Permit and signed a fish 
ticket for crab processed at[hyphen]sea on the vessel that harvested 
that crab.

Official Crab Rationalization Record

    Prior to issuing any QS, NMFS would compile an official record that 
contains the best available information on the harvesting and 
processing activities in the crab fisheries. This record would be the 
basis for determining QS allocations. In order to facilitate the timely 
issuance of QS, NMFS would require any claims that are contrary to the 
official record to be substantiated before changing the official 
record.
    NMFS would establish certain operational standards about the use of 
landings in the official record to facilitate timely issuance of QS. 
First, NMFS would not issue CPO or CVO QS to any person other than to 
the applicant who holds the LLP license at the time of application. The 
Council clearly established that the basis for recognizing and 
allocating QS is the possession of an LLP license endorsed for the crab 
fishery, the associated legal landings that were made on the vessel 
that resulted in the issuance of the LLP license and endorsement, and 
any landings that were made under the authority of that LLP license.
    Second, NMFS would assume any of the legal landings recorded on 
State of Alaska fish tickets to be correct. An applicant who has 
information to suggest the fish ticket records are inaccurate would 
have the burden of proving that to be the case.
    Third, NMFS would assume the LLP license issued based on the 
landings made on a vessel continued to be used on that same vessel, 
unless the applicant shows, with written documentation, that the LLP 
license was transferred and used on another vessel. NMFS would make 
this assumption because, during the years 2000 and 2001, NMFS did not 
track the vessel on which the LLP license was used. Thus, NMFS would 
require an applicant to inform NMFS if the LLP license was

[[Page 63205]]

used on a vessel other than the vessel for which the LLP license was 
originally issued. Written documentation establishes a clear record of 
any transfer of LLP license use prior to tracking by NMFS.
    Fourth, if more than one person is claiming legal landings or legal 
processing activities during the same time at the same processing 
facility or on board the same vessel, then each person eligible to 
receive QS or PQS based on those legal landings or legal processing 
activities would receive any QS or PQS issued divided in equal 
proportion among all eligible recipients for that time period. This pro 
rata division of QS would occur unless the applicants can provide 
written documentation establishing an alternative means for 
distributing the QS or PQS resulting from the activities during that 
time period.

Catcher Vessel Owner [hyphen] CVO QS Sector

    Eligibility to receive QS at initial allocation would be limited to 
U.S. citizens who hold a permanent, fully transferable LLP license at 
the time of application. This means any corporation applying to receive 
CVO QS must also be incorporated as a U.S. corporation.
    The landings that would be considered as the basis for a QS 
allocation for a crab fishery would be those made on the vessel used to 
qualify for the LLP license and species endorsement for that fishery or 
were made by the vessel on which that LLP license was used. NMFS would 
initially allocate QS only to the person holding that LLP license at 
the time of application. Any subsequent transfer of QS after initial 
issuance by the qualified LLP license holder would be subject to the QS 
transfer provisions described later in this preamble. NMFS would 
establish that the landings made under the authority of an LLP license 
are non[hyphen]severable from that license. In other words, ``catch 
history'' that has been separated from an LLP license would not be 
considered for initial allocation of QS.
    The proposed definition of persons eligible to receive an initial 
allocation of CVO QS and the qualifying periods used to determine the 
allocation of QS are described in the following table:

  Table 1--Eligibility to Receive Catcher Vessel Owner (CVO) and Catcher Processor Owner (CPO) Quota Share (QS) and Associated Qualifying Year Periods
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             Qualifying Year Periods for Determining QS
               Eligible Person to Receive QS                                Crab Fisheries                                   Allocation
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Eastern Aleutian Island golden king crab       5 years of the 5-year base period beginning
General: A citizen of the United States at the time of       (EAG)                                          on September 1, 1996, and ending on
 application for QS, and is...                                                                              September 24, 2000.
 
CVO QS: The holder of a permanent, fully transferable LLP
 license endorsed for that crab fishery at the time of
 application to receive QS and who is a citizen of the
 United States at the time of application for QS; or
 
                                                           ---------------------------------------------------------------------------------------------
CPO QS: (1) The holder of a permanent, fully transferable   Western Aleutian Island golden king crab       5 years of the 5-year base period beginning
 LLP license endorsed for that crab fishery and endorsed     (WAG)                                          on September 1, 1996, and ending on March
 for CP activities at the time of application to receive                                                    30, 2001.
 QS; and (2) Harvested and processed at-sea any crab
 species in any BSAI crab fishery during the years 1998 or
 1999.
                                                           ---------------------------------------------------------------------------------------------
                                                            Bering Sea Tanner crab (BST)                   4 years of the 6-year period beginning on
                                                                                                            November 15, 1992, through November 27,
                                                                                                            1996.
                                                           ---------------------------------------------------------------------------------------------
                                                            Bering Sea snow crab (BSS)                     4 years of the 5-year period beginning on
                                                                                                            January 15, 1996, and ending on April 8,
                                                                                                            2000.
                                                           ---------------------------------------------------------------------------------------------
                                                            Bristol Bay red king crab (BBR)                4 years of the 5-year base period beginning
                                                                                                            on November 1, 1996, and ending on October
                                                                                                            20, 2000.
                                                           ---------------------------------------------------------------------------------------------
                                                            Pribilof Islands red and blue king crab (PIK)  4 years of the 5-year period beginning on
                                                                                                            September 15, 1994, and ending on September
                                                                                                            28, 1998.
                                                           ---------------------------------------------------------------------------------------------
                                                            St. Matthew blue king crab (SMB)               4 years of the 5-year period beginning on
                                                                                                            September 15, 1994, and ending on September
                                                                                                            26, 1998.
                                                           ---------------------------------------------------------------------------------------------
                                                            Western Aleutian Islands red king crab (WAI)   3 years of the 4-year period beginning on
                                                                                                            November 1, 1992, and ending on February 13,
                                                                                                            1996.
                                                           ---------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 63206]]

Catcher Processor Owner [hyphen] CPO QS Sector

    The eligibility to receive a CPO QS is essentially the same as for 
CVO QS. In order to receive CPO QS, a person would have to be a U.S. 
citizen who holds a permanent, fully transferable LLP license at the 
time of application. The LLP license would have to be endorsed for the 
fisheries for which the QS would be issued and would have to be 
endorsed to allow the person to harvest and process crab as a CP. Only 
landings harvested and processed on board the vessel during the 
qualifying years would be used toward CPO QS. The qualifying periods 
and number of qualifying years used in CPO QS initial issuance 
calculations would be the same as those in Table 1. In addition, any 
person who applies to receive CPO QS would have to have made crab 
landings that were processed at[hyphen]sea in either 1998 or 1999. 
These provisions are intended to ensure that LLP licenses with a 
history of harvesting and processing at[hyphen]sea have continued to do 
so recently, in order to reduce the amount of QS that would be issued 
for use on vessels that are no longer active in the fishery.

Catcher Vessel Crew [hyphen] CVC QS Sector

    CVC QS would be issued based on different eligibility criteria. 
Table 2 summarizes the persons who would be eligible to receive an 
initial allocation of CVC QS, the qualifying years used, and the number 
of years that could be selected for initial allocation of QS. 
Individuals would be qualified to receive QS if they are designated on 
a State of Alaska Interim Use Permit and had historic and recent 
participation. NMFS would determine participation based on signed State 
of Alaska fish tickets because the State of Alaska requires individuals 
who sign a fish ticket to hold a State of Alaska Interim Use Permit.
    Historic participation would be demonstrated by at least one 
landing in each of three of the qualifying years. Recent participation 
would be demonstrated by at least one landing in two of the three most 
recent seasons before June 10, 2002, except for the fisheries that were 
closed in this period. For these fisheries, Western Aleutian Islands 
red king crab, the Pribilof Islands red and blue king crab, the St. 
Matthew Island blue king crab, and Tanner crab, recent participation 
would be demonstrated by at least one landing in two of the three most 
recent seasons preceding June 10, 2002, in the snow crab, Bristol Bay 
red king crab, or one of the Aleutian Islands golden king crab 
fisheries. The recent participation requirement would be waived for 
captains who died in fishing[hyphen]related incidents if the captain's 
estate applies for QS. See the following table for details:

                         Table 2--Eligibility to Receive Catcher Vessel Crew (CVC) Quota Share (QS) and Qualifying Year Periods
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     Number of Qualifying Year Periods
          Eligible Person to Receive QS                     Crab Fisheries               for Determining QS Initial          Qualifying Seasons for
                                                                                                 Allocation             Determining Recent Participation
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                  Eastern Aleutian golden king crab  3 years of the 5-year base period  (1) September 1, 1999, through
An individual who:                                 (EAG)                              beginning on September 1, 1996,    October 25, 1999.
                                                                                      and ending on September 24,       (2) August 15, 2000, through
(1) is a citizen of the United States, or his or                                      2000.                              September 24, 2000.
 her successor-in-interest if that individual is                                                                        (3) August 15, 2001, through
 deceased;                                                                                                               September 10, 2001.
 
(2) has historical participation in the fishery
 demonstrated by being the individual named on a
 State of Alaska Interim Use Permit who made at
 least one legal landing per year for any 3
 qualifying years under that permit based on
 data from fish tickets maintained by the State
 of Alaska; and
 
(3) has recent participation in the fishery
 demonstrated by being the individual named on a
 State of Alaska Interim Use Permit who made at
 least one legal landing under that permit in
 any 2 of 3 seasons based on data from fish
 tickets maintained by the State of Alaska.
                                                 -------------------------------------------------------------------------------------------------------
                                                  Western Aleutian golden king crab  3 years of the 5-year base period  (1) September 1, 1999, through
                                                   (WAG)                              beginning on September 1, 1996,    August 14, 2000.
                                                                                      and ending on March 30, 2001.     (2) August 15, 2000, through
                                                                                                                         March 28, 2001.
                                                                                                                        (3) August 15, 2001, through
                                                                                                                         March 30, 2002.
                                                 -------------------------------------------------------------------------------------------------------
                                                  Bering Sea Tanner crab (BST)       3 years of the 6-year period       any 2 of the last 3 seasons
                                                                                      beginning on November 15, 1992,    prior to June 10, 2002 in the
                                                                                      through November 27, 1996.         Eastern Aleutian Island golden
                                                                                                                         king crab, Western Aleutian
                                                                                                                         Island golden king crab, Bering
                                                                                                                         Sea snow crab, or Bristol Bay
                                                                                                                         red king crab fisheries.
                                                 -------------------------------------------------------------------------------------------------------

[[Page 63207]]

 
                                                  Bering Sea snow crab (BSS)         3 years of the 5-year period       ................................
                                                                                      beginning on January 15, 1996,    (1) April 1, 2000, through April
                                                                                      and ending on April 8, 2000.       8, 2000.
                                                                                                                        (2) January 15, 2001, through
                                                                                                                         February 14, 2001.
                                                                                                                        (3) January 15, 2002, through
                                                                                                                         February 8, 2002.
                                                 -------------------------------------------------------------------------------------------------------
                                                  Bristol Bay red king crab (BBR)    3 years of the 5-year base period  ................................
                                                                                      beginning on November 1, 1996,    (1) October 16, 2000, through
                                                                                      and ending on October 20, 2000.    October 20, 2000.
                                                                                                                        (2) October 15, 2001, through
                                                                                                                         October 18, 2001.
                                                                                                                        (3) October 15, 2002, through
                                                                                                                         October 18, 2002.
                                                 -------------------------------------------------------------------------------------------------------
                                                  Pribilof Islands red and blue      3 years of the 5-year period       any 2 of the last 3 seasons
                                                   king crab (PIK)                    beginning on September 15, 1994,   prior to June 10, 2002, in the
                                                                                      and ending on September 28,        Eastern Aleutian Island golden
                                                                                      1998.                              king crab, Western Aleutian
                                                                                                                         Island golden king crab, Bering
                                                                                                                         Sea snow crab, or Bristol Bay
                                                                                                                         red king crab fisheries, except
                                                                                                                         that persons applying for an
                                                                                                                         allocation to receive QS based
                                                                                                                         on legal landings made aboard a
                                                                                                                         vessel less than 60' LOA at the
                                                                                                                         time of harvest are exempt from
                                                                                                                         this requirement.
                                                 -------------------------------------------------------------------------------------------------------
                                                  St. Matthew blue king crab (SMB)   3 years of the 5-year period       any 2 of the last 3 seasons
                                                                                      beginning on September 15, 1994,   prior to June 10, 2002, in the
                                                                                      and ending on September 26,        Eastern Aleutian Island golden
                                                                                      1998.                              king crab, Western Aleutian
                                                                                                                         Island golden king crab, Bering
                                                                                                                         Sea snow crab, or Bristol Bay
                                                                                                                         red king crab fisheries.
                                                 -------------------------------------------------------------------------------------------------------
                                                  Western Aleutian Islands red king  3 years of the 4-year period       any 2 of the last 3 seasons
                                                   crab (WAI)                         beginning on November 1, 1992,     prior to June 10, 2002, in the
                                                                                      and ending on February 13, 1996.   Eastern Aleutian Island golden
                                                                                                                         king crab, Western Aleutian
                                                                                                                         Island golden king crab, Bering
                                                                                                                         Sea snow crab, or Bristol Bay
                                                                                                                         red king crab fisheries.
                                                 -------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------

    In addition, the Program exempts crew members who participated in 
small vessels (under 60 feet in length) from seasonal requirements in 
the Pribilof Islands red and blue king crab fisheries. Such small 
vessels have traditionally participated in the fishery, but have been 
limited in recent years due to hazardous weather conditions.

[[Page 63208]]

This exemption for small vessels would allow crew serving in the 
fishery to be considered for initial allocation.

Catcher Processor Crew [hyphen] CPC QS Sector

    Catcher/Processor crew would be allocated CPC QS that include a 
harvesting and on[hyphen]board processing privilege. Harvests with CPC 
QS also may be delivered to shore[hyphen]based or floating processors. 
The definition of an eligible person, the qualifying years, and the 
seasonal recent participation requirements for the CPC QS sector would 
be the same as those for the CVC QS sector described in Table 2 above. 
The allocation to the CPC QS sector would be based on an individual 
landing under the authority of a State of Alaska Interim Use Permit and 
processing the catch on board the vessel that made the landing.

Regional Designations of QS

    In addition to the four QS sectors issued in each of the eight crab 
fisheries, QS would have regional delivery requirements. Regional 
delivery requirements are based on the specific geographic location in 
which the crab were landed during the qualifying years. Any QS that is 
subject to regional landing requirements must be delivered to a 
Registered Crab Receiver (RCR) operating in that region. Regional 
designations would apply to: (1) QS initially issued to the CVO QS 
sector, (2) CPO QS subsequently transferred for use as CVO QS under the 
transfer provisions, or (3) after July 1, 2008, QS initially issued for 
the CVC QS sector. Regional designations would not apply to CPO QS or 
to CPC QS. Any QS not subject to regional designation would be issued 
as an ``Undesignated'' region. The regional designations for each of 
the fisheries are summarized in the following table:

               Table 3--Regional Designations of Quota Share (QS) and Processor Quota Share (PQS)
----------------------------------------------------------------------------------------------------------------
                                        North Region,      South Region,      West Region,
                                           North of           South of          West of
            Crab Fishery                56[deg]20' N.      56[deg]20' N.      174[deg] W.        Undesignated
                                             lat.               lat.             long.
----------------------------------------------------------------------------------------------------------------
EAG [dash] Eastern Aleutian golden    X                  X                  ...............  ...................
 king crab
----------------------------------------------------------------------------------------------------------------
WAG [dash] Western Aleutian golden    .................  .................  X                X
 king crab
----------------------------------------------------------------------------------------------------------------
BST [dash] Bering Sea Tanner crab     .................  .................  ...............  X
----------------------------------------------------------------------------------------------------------------
BSS [dash] Bering Sea snow crab       X                  X                  ...............  ...................
----------------------------------------------------------------------------------------------------------------
BBR [dash] Bristol Bay red king crab  X                  X                  ...............  ...................
----------------------------------------------------------------------------------------------------------------
PIK [dash] Pribilof Islands red and   X                  X                  ...............  ...................
 blue king crab
----------------------------------------------------------------------------------------------------------------
SMB [dash] St. Matthew blue king      X                  X                  ...............  ...................
 crab
----------------------------------------------------------------------------------------------------------------
WAI [dash] Western Aleutian Islands   .................  X                  ...............  ...................
 red king crab
----------------------------------------------------------------------------------------------------------------

    The North Region would include all landings made in that crab 
fishery North of a line at 56[deg]20' N. latitude in the Bering Sea 
subarea of the EEZ. The South Region would include all landings made in 
the EEZ south of that line. The West Region would apply only to the 
Western Aleutian Islands golden king crab fishery. Under this regional 
designation, 50 percent of the CVO QS issued in the fishery would be 
designated as West Region and would be limited for delivery West of a 
line at 174[deg] W. longitude. Undesignated QS may be delivered in any 
region.

Calculation of QS Issuance

    The amount of QS that would initially be issued to any one person 
would be based on the amount of legal landings made by that person as a 
percentage of the total legal landings made by all persons eligible to 
receive QS. NMFS would build the official crab rationalization record, 
which would contain the total legal landings for each fishery based on 
the best available information using the State of Alaska fish ticket 
database. The official record would be established for the CVO and CPO 
QS sectors based on the total legal landings during the qualifying 
years that resulted in the issuance of LLP licenses or that were made 
under the authority of an LLP license. The official record for the CVC 
and CPC QS sectors would be based on the total legal landings made 
under the authority of State of Alaska Interim Use Permits during the 
qualifying years. The official record is presumed to be correct unless 
an applicant provides information indicating a correction is necessary.
    The computation process for CVO and CPO QS and the computation 
process for CVC and CPC are the same. The process for determining 
initial allocation of CVO and CPO QS is detailed first. The following 
steps would be used to calculate QS for an applicant.
    Establish harvest denominator. The official crab rationalization 
record would result in a harvest denominator for all LLP licenses that 
would be used in calculating QS. The harvest denominator represents the 
total legal landings made in each year for each crab fishery.
    The use of a harvest denominator allows NMFS to calculate the 
relative percentage of the legal landings made by a person applying to 
receive QS without having to adjust the relative percentage of all 
other applicants if additional applications are approved after appeal. 
The harvest denominator would remain fixed for all applicants. One 
harvest denominator would be established for the CVO and CPO QS 
sectors, and one for the CVC and CPC QS sectors because the number of 
qualifying years used differ.
    Computation of initial issuance of CVO and CPO QS. In order to 
facilitate understanding of the computation, a hypothetical example is 
used to illustrate the process. This example does not use data or 
persons from existing crab fisheries and is intended for illustrative 
purposes only. In our example, there are only two participants in the 
fishery, LLP A and LLP B, each with different landing patterns. The 
total legal landings, the region in which those landings were made, the 
amount of the landings harvested on board the vessel and processed 
at[hyphen]sea, and the computation process using two LLPs (A and B) are 
described in the following table:

[[Page 63209]]



   Table 4--Hypothetical Crab Fishery - Best 3 of 4 Years Used - Calculation of Catcher Vessel Owner (CVO) and
                     Catcher Processor Crew (CPO) Quota Share (QS) Initial Issuance for LLPs
----------------------------------------------------------------------------------------------------------------
                                                                                                      Total of
                                        Year 1          Year 2          Year 3          Year 4       Years Used
----------------------------------------------------------------------------------------------------------------
1. Harvest Denominator in Fishery   1,000 lb        500 lb          3,000 lb        1,333 lb       5,833 lb
 (Legal Landings)
----------------------------------------------------------------------------------------------------------------
2. Total Legal Landings of LLP A    500 lb          200 lb          1,000 lb        1,000 lb       2,700 lb
----------------------------------------------------------------------------------------------------------------
3. Percentage of Harvest            50 [percnt]     40 [percnt]     33.3 [percnt]   75 [percnt]    55.0 [percnt]
 Denominator for LLP A (year used)   (Used)          (Used)                          (Used)
----------------------------------------------------------------------------------------------------------------
(3A) Total Landings Landed Onshore  500             100             500             200            800 lb
 for LLP A
----------------------------------------------------------------------------------------------------------------
(3B) Total Landings Processed At-   0               100             500             800            900 lb
 sea for LLP A
----------------------------------------------------------------------------------------------------------------
(3C) Percentage of Landings Landed on Shore for LLP A = (800 / (800 + 900)) = 47.06 [percnt]
----------------------------------------------------------------------------------------------------------------
(3D) Percentage of Landings Processed At-sea for LLP A = (900 / (800 + 900)) = 52.94 [percnt]
----------------------------------------------------------------------------------------------------------------
(3E) Total Onshore Landings in the  500             100             0               200            800 lb
 North Region for LLP A
----------------------------------------------------------------------------------------------------------------
(3F) Total Onshore Landings in the  0               0               500             0              0 lb
 South Region for LLP A
----------------------------------------------------------------------------------------------------------------
(3G) Percentage of Landings in the North Region for LLP A = (800 / (800 + 0)) = 100 [percnt]
----------------------------------------------------------------------------------------------------------------
(3H) Percentage of Landings in the South Region for LLP A = (0/ (800 + 0)) = 0 [percnt]
----------------------------------------------------------------------------------------------------------------
4. Total Legal Landings of LLP B    500 lb          300 lb          2,000 lb        333 lb         3,800 lb
----------------------------------------------------------------------------------------------------------------
5. Percentage of Harvest            50 [percnt]     60 [percnt]     66.6 [percnt]   25 [percnt]    58.9 [percnt]
 Denominator for LLP B               (Used)          (Used)          (Used)
----------------------------------------------------------------------------------------------------------------
(5A) Total Landings Landed Onshore  500             300             1,500           200            2,300 lb
 for LLP B
----------------------------------------------------------------------------------------------------------------
(5B) Total Landings Processed At-   0               0               500             800            500 lb
 sea for LLP B
----------------------------------------------------------------------------------------------------------------
(5C) Percentage of Landings Landed on Shore for LLP B = (2,300 / (2,300 + 500)) = 82.14 [percnt]
----------------------------------------------------------------------------------------------------------------
(5D) Percentage of Landings Processed At-sea for LLP B = (500 / (2,300 + 500)) = 17.86 [percnt]
----------------------------------------------------------------------------------------------------------------
(5E) Total Onshore Landings in the  500             300             500             0              1,300 lb
 North Region for LLP B
----------------------------------------------------------------------------------------------------------------
(5F) Total Onshore Landings in the  0               0               1,000           200            1,000 lb
 South Region for LLP B
----------------------------------------------------------------------------------------------------------------
(5G) Percentage of Landings in the North Region for LLP B = (1,300 / (1,300 + 1,000)) = 56.52 [percnt]
----------------------------------------------------------------------------------------------------------------
(5H) Percentage of Landings in the South Region for LLP B = (1,000 / (1,300 + 1,000)) = 43.48 [percnt]
----------------------------------------------------------------------------------------------------------------
6. Sum of Total Percentages of Harvest Denominators for All LLPs = LLP A 55 (Line 3) + LLP B 58.9 (Line 5) =
 113.9 [percnt]
----------------------------------------------------------------------------------------------------------------
7. Percentage of the Sum of the Percentage of the Harvest Denominator for LLP A = (0.550/1.139) = 0.4829 or
 48.29 [percnt]
----------------------------------------------------------------------------------------------------------------
8. Percentage of the Sum of the Percentage of the Harvest Denominator for LLP B = (0.589/1.139) = 0.5171 or
 51.71 [percnt]
----------------------------------------------------------------------------------------------------------------
9. Initial QS Pool = 9,000 Units
----------------------------------------------------------------------------------------------------------------
10. Unadjusted Initial QS Allocation for LLP A = 48.29 [percnt] x 9,000 = 4,346 QS Units
----------------------------------------------------------------------------------------------------------------
11. Unadjusted Initial QS Allocation for LLP B = 51.71 [percnt] x 9,000 = 4,654 Units
----------------------------------------------------------------------------------------------------------------
12. Initial QS Allocation for LLP A = 4,346 QS Units x (0.97) = 4,216 QS Units
----------------------------------------------------------------------------------------------------------------
13. Initial QS Allocation for LLP B = 4,654 QS Units x (0.97) = 4,514 QS Units
----------------------------------------------------------------------------------------------------------------
14. Percentage of LLP A QS Allocation as CVO QS = 4,216 x 0.4706 (Line 3C) = 1,984 CVO QS Units
----------------------------------------------------------------------------------------------------------------
15. Percentage of LLP A QS Allocation as CPO QS = 4,216 x 0.5294 (Line 3D) = 2,232 CPO QS Units
----------------------------------------------------------------------------------------------------------------
16. Percentage of LLP B QS Allocation as CVO QS = 4,514 x 0.8214(Line 5C) = 3,708 CVO QS Units
----------------------------------------------------------------------------------------------------------------
17. Percentage of LLP B QS Allocation as CPO QS = 4,514 x 0.1786 (Line 5D) = 806 CPO QS Units
----------------------------------------------------------------------------------------------------------------


[[Page 63210]]

    Determine the total legal landings for each applicant. First, NMFS 
would sum the total legal landings for each LLP license, in each of the 
crab fisheries for which the LLP is endorsed, for each of the 
qualifying years. If there were no legal landings in a qualifying year, 
then the amount would be zero for that year. If a person is applying to 
receive QS using multiple licenses, the total legal landings would be 
summed for each license separately. In our hypothetical example this 
corresponds to Line 2 in Table 4 for LLP A and Line 4 for LLP B.
    Determine the percentage of the harvest denominator in each year. 
NMFS would divide the total legal landings for that person by the 
harvest denominator for each year. This yields the percentage of the 
harvest denominator. For LLP A, this corresponds to Line 3 in Table 4. 
For LLP B, this corresponds to Line 5.
    Determine the qualifying years to be used. Most of the crab 
fisheries have a ``best of'' provision in which only a select number of 
the qualifying years are actually used in the QS computation. NMFS 
would determine which years are used for each initial QS allocation by 
determining the years that represent the highest percentage of the 
harvest denominator. In our hypothetical example, 3 of the 4 years 
representing the greatest percentage of the harvest denominator in each 
year would be used. This method ensures that a person applying to 
receive QS would receive a QS allocation based on the highest 
percentage of the total landings in each year. For LLP A, this 
corresponds to the italicized years noted as ``(Used)'' in Line 3 of 
Table 4. For LLP B, this corresponds to Line 5. If a person has 
insufficient years of landings, one or more ``0 lb'' years would be 
``(Used).''
    Sum the percentages of the harvest denominator for each LLP 
license. The next step is to sum the percentages for the years used for 
each LLP license held by the applicant. Then, that amount is divided by 
the total number of years used for that crab fishery. In our 
hypothetical example, for LLP A, this would be the sum of the 
italicized percentages in Line 3 of Table 4 divided by three, or (50 
percent + 40 percent + 75 percent)/3 = 55.0 percent. The same 
computation is provided for LLP B in Line 5 of Table 4, and is equal to 
58.9 percent.
    Sum the average percent of the harvest denominator. In our example, 
the percentage of the harvest denominator is 55.0 percent (for LLP A) 
and 58.9 percent (for LLP B). The sum of the percentages of all LLP 
licenses is 113.9 percent. This computation is shown in Line 6 of Table 
4. The reason that the amount is greater than 100 percent is that NMFS 
uses the best years of each LLP license to determine the percentage of 
the harvest denominator that the landings represent.
    Divide each LLP license's percentage by the sum of the percentages 
of the harvest denominator. In order to properly scale the landings so 
each LLP license is receiving a percentage of the harvest denominator, 
each LLP license's percentage of the harvest denominator must be 
divided by the sum of all percentages for all LLP licenses. This total 
is the percentage of the sum of the harvest denominators for each LLP 
license. This computation is shown in Line 7 for LLP A and in Line 8 
for LLP B in Table 4.
    Multiply the percentage of the sum of the percentages of the 
harvest denominator by the initial QS pool. The amounts calculated in 
Lines 7 and 8 are multiplied by the Initial QS Pool; in our example 
9,000 QS Units. In the crab fisheries, NMFS would establish an initial 
QS pool as a fixed amount. This fixed initial QS pool would be used to 
initially distribute QS to recipients. If appeals are adjudicated, then 
additional QS may be added to the QS pool, but the process for 
determining how much QS a person would receive would be established 
using the same procedure detailed in our example.
    Establish the initial QS and PQS pools. The initial QS pool that 
would be established in each of the eight crab fisheries is an amount 
large enough so that, on initial issuance, a single unit of QS would 
yield an annual amount of IFQ less than the average weight of one crab. 
To achieve this, the initial QS pool for the eight crab QS fisheries 
would be set at an amount of units equal to three times the highest 
historical fishery harvest rounded to the nearest 10,000,000 units. The 
Initial PQS pools are set at the same level as the initial QS pools for 
ease of computation and to ensure that a single unit of PQS would yield 
an annual amount of IPQ less than the average weight of one crab. The 
Initial QS pools for all the crab fisheries using this method are shown 
in the following table:

         Table 5--Initial QS and PQS Pool for Each Crab Fishery
------------------------------------------------------------------------
                                   Initial QS Pool     Initial PQS Pool
------------------------------------------------------------------------
EAG [dash] Eastern Aleutian      10,000,000           10,000,000
 Islands golden king crab
------------------------------------------------------------------------
WAG [dash] Western Aleutian      40,000,000           40,000,000
 Islands golden king crab
------------------------------------------------------------------------
BST [dash] Bering Sea Tanner     200,000,000          200,000,000
 crab
------------------------------------------------------------------------
BSS [dash] Bering Sea Snow Crab  1,000,000,000        1,000,000,000
------------------------------------------------------------------------
BBR [dash] Bristol Bay red king  400,000,000          400,000,000
 crab
------------------------------------------------------------------------
PIK [dash] Pribilof Islands red  30,000,000           30,000,000
 and blue king crab
------------------------------------------------------------------------
SMB [dash] St. Matthew blue      30,000,000           30,000,000
 king crab
------------------------------------------------------------------------
WAI [dash] Western Aleutian      60,000,000           60,000,000
 Islands red king crab
------------------------------------------------------------------------

    The initial QS pools would be used for all four QS sectors. The 
amount of QS initially issued as CVO and CPO QS sectors would be 97 
percent of the total amount of QS, and the amount of QS initially 
issued to the CVC and CPC QS sectors in any one fishery would be 3 
percent of the initial QS pools. NMFS would implement this provision by 
multiplying the amount of QS initially issued by either 97 percent for 
the CVO and CPO QS sectors, or 3 percent for the CVC and CPC QS 
sectors. The calculation showing the unadjusted allocation for LLP A is 
shown in Line 10 of Table 4, and the adjusted amount for the CVO and 
CPO QS sectors is shown in Line 12. The same

[[Page 63211]]

calculations for LLP B are shown in Lines 11 and 13.
    Determine the amount of QS issued as CVO or CPO QS. The amount of 
QS issued as CVO QS to each LLP license holder would be equal to the 
percentage of landings delivered unprocessed, to a shorebased or 
stationary floating processor. In our hypothetical example, the onshore 
landings made by LLP A in each year are shown in Line 3A of Table 4. 
The landings processed at[hyphen]sea in each year are shown in Line 3B. 
The italicized numbers are the years used in the initial QS 
calculations because they represent the years with the highest 
percentage of the total harvest denominator the best years for that LLP 
license. The total shown in the last column of Line 3A and Line 3B is 
the total of onshore landings for the best years only. In this case, 
Year 3 is not used for LLP A. In order to calculate the percentage of 
QS that would be issued as CVO QS for LLP A, NMFS would determine the 
percentage of the landings that were landed on shore for each LLP 
license applying to receive QS. In our example, for LLP A, the 
percentage of landings delivered onshore is calculated in Line 3C. The 
percentage calculated in Line 3C is then multiplied by the amount of QS 
initially issued to LLP A, which is shown in Line 12. This calculation 
is provided in Line 14 for LLP A. The amount of QS issued as CVO QS for 
LLP B is determined by using the same methodology. Lines 5A, 5B, 5C, 
and Line 16 show the same calculation for LLP B. Only landings that 
were processed at[hyphen]sea and that gave rise to an LLP license 
endorsed for CP activity would be allocated CPO QS.

Determination of Regional Designation

    Regional designation applies to most of the crab fisheries (see 
Table 3 for regional designations). Regional designation does not apply 
to QS initially issued to the CPO QS sector, but can apply to the CVO 
QS sector. In our example, we assume there are two regions in the 
hypothetical fishery: a North region and a South region. The percentage 
of landings made in each region in each year under LLP A is shown in 
Lines 3E and 3F. The percentages for LLP B are shown in Lines 5E and 
5F. In order to calculate the amount of the CVO QS allocated to each 
region, several additional steps must be taken depending on specific 
conditions applicable to each LLP license holder.
    LLP license holders with landings in only one region. If an LLP 
license holder made landings in only one region, then all of the QS 
issued would be for that region. That is the case for LLP A in our 
hypothetical fishery example. As shown in Lines 3E and 3F, the amount 
of landings that occurred in each region are shown in italics. Note the 
landings processed at[hyphen]sea are not assigned to a region. As shown 
in the calculations Line 3G and 3H, 100 percent of the onshore landings 
subject to regional designation for the years used were in the North 
region.
    LLP license holders with landings in more than one region. If an 
LLP license holder received QS based on landings made in more than one 
region, then a one-time additional adjustment in the designation of the 
QS would be required to account for the issuance of PQS so the amount 
of QS issued in a region is equal to the amount of PQS in that region. 
In our hypothetical example, LLP B has qualified landings that would 
result in QS for both the North and the South Region. Before that QS 
could be issued, the relative distribution of PQS would need to be 
determined. The initial issuance of QS for LLP B in the hypothetical 
example will be explained after the processing sector initial 
allocation has been discussed.

Other Provisions of Initial QS Issuance

    Additional provisions would pertain to the issuance of QS: two 
provisions for determining QS issuance to vessels that sank, and a 
provision to allow a person to receive QS for landings made by a vessel 
not used to qualify for a permanent, fully transferable LLP license 
endorsed for that fishery.
    Sunken vessels. Two provisions would apply to vessels that have 
sunk. First, a person would receive 50 percent of their average legal 
landings for the qualifying years unaffected by the sinking after the 
time of sinking until that vessel was replaced under the provisions 
established for vessel replacement under the LLP, at 50 CFR 
679.4(k)(5)(v). This provision would apply if a person who owned a 
vessel that sank, replaced that vessel under the LLP qualification 
rules or after satisfying the LLP qualification requirements. This 
provision also requires the owner of the vessel to replace the vessel 
and begin fishing within a specified time period. As an example, if, 
due to a sinking, a person's vessel was not operational in two of the 
four qualifying years, that person would receive QS equal to 50 percent 
of the average of the 2 years during which that vessel was operational 
to be applied toward the 2 years the vessel was not operational. This 
provision allows some compensation to LLP holders for some qualifying 
years in which the LLP holder was prevented from participating due to 
sinking.
    The second sunken vessel provision would apply under circumstances 
in which a person applying to receive an initial issuance of QS: (1) 
was denied a request to replace the vessel under the provisions of 
Public Law 106[hyphen]554 (Consolidated Appropriations Act of 2001); 
(2) replaced the vessel with a newly constructed vessel that began 
construction by June 10, 2002; and (3) participated in any Bering Sea 
crab fishery by October 31, 2002, with the replacement vessel. A newly 
constructed vessel would be defined as one the keel of which was laid 
by June 10, 2002. This provision is intended to accommodate a specific 
circumstance in which a person delayed construction of a vessel based 
on Public Law 106[hyphen]554. Public Law 106[hyphen]554 was in effect 
for less than a year during late 2000 and part of 2001. Although the 
law was in effect for less than a year, it may have hindered the 
ability of a vessel owner to replace a vessel to participate in crab 
fisheries and to make qualifying landings. This provision would allow a 
person to receive QS equal to 50 percent of the average of the years 
unaffected by the sinking.
    For both of these provisions, the calculation methods for 
determining the actual amount of QS issued would follow the same 
methods shown earlier. The adjustment for sunken vessels would be made 
when determining the amount of landings that would be attributed to the 
LLP license used on board a vessel.
    Interim LLP license history exemption. A key component of this 
program is that QS is awarded based on the legal landing made on a 
vessel that qualified for a permanent, fully transferable LLP license. 
The Council recommended a limited provision that would allow a person 
to apply to receive QS based on legal landings that were not used to 
qualify for a permanent, fully transferable LLP license. Under this 
provision, a person who applies to receive QS with an LLP license 
endorsed for a fishery could choose to receive the QS based either on 
the landings made by the vessel that was used to qualify for that LLP 
license or on the landings made on another vessel. The intent of this 
provision is to allow a vessel owner who had participated in a fishery 
to use historical landings as long as a permanent, fully transferable 
LLP license was transferred for use on that vessel after the qualifying 
period.
    An applicant for CVO or CPO QS who deployed a vessel in a crab 
fishery under the authority of an interim LLP license and later 
transferred a permanent, fully transferable LLP

[[Page 63212]]

license before January 1, 2002, for use in that crab fishery, to insure 
that the vessel would remain authorized to participate in the fishery 
following the invalidation of the interim LLP license, may choose to 
use either: (1) the legal landings made on the vessel that gave rise to 
the interim LLP license for that crab fishery prior to the transfer of 
the permanent, fully transferable LLP license for use on that vessel; 
or (2) the legal landings made on the vessel that gave rise to the 
permanent, fully transferable LLP license and the legal landings made 
under the authority of that LLP license in that crab fishery prior to 
January 1, 2002. This exemption is meant to address a specific 
circumstance in which a person may have participated in a fishery 
legally, but required a permanent, fully transferable LLP license to 
continue participating in the fishery. It is not intended to address 
transfers of LLP licenses among persons that are undertaken for other 
reasons. NMFS intends that this provision provide a limited exemption 
and not a general opportunity to allow persons who voluntarily 
transferred LLP licenses to choose a specific catch history that is 
severable from the LLP license under which a person is applying to 
receive QS. NMFS specifically requests public comment on this approach 
relative to Council objectives (see ADDRESSES).

Computation of Initial Issuance of CVC and CPC QS

    The method for calculating CVC and CPC QS is essentially the same 
as the CPO and CVO QS, with some key differences. The first difference 
is that, for these sectors, the harvest denominator would represent the 
legal landings made by individuals under the authority of a State of 
Alaska Interim Use Permit who met the recent participation eligibility 
requirements. Second, the regional designations would be noted on the 
QS, but would not be applied to the CVC QS until after July 1, 2008. 
The regional designations are not shown in this example but would be 
calculated in the same manner as that used for the CVO and CPO QS.
    For illustration purposes, we will demonstrate the initial issuance 
using the same hypothetical fishery. The issuance process is shown in 
the following table (Table 6). As with the other example, we will 
assume there are two crewmembers who are qualified to receive an 
initial issuance of QS. The specific calculations are not detailed in 
this example because they are the same as those described under the CVO 
and CPO QS example. Note the total landings in Line 1 of Table 6 differ 
from those in Table 4 (CVO and CPO QS) because the recency requirements 
would exclude certain landings and, under the CVC and CPC QS 
calculations, landings made legally on a vessel would be considered 
even if those landings did not result in the issuance of an LLP license 
for those landings. Additionally, the amount of QS issued to the CVC 
and the CPC QS sectors is shown in Lines 12 and 13. The QS issued to 
these sectors is equal to 3 percent of the QS pool.

   Table 6--Hypothetical Crab Fishery - Best 3 of 4 Years Used - Calculation of Catcher Vessel Crew (CVC) and
  Catcher Processor Crew (CPC) Quota Share (QS) Initial Issuance for State of Alaska Interim Use Permit Holders
----------------------------------------------------------------------------------------------------------------
                                                                                                     Total for
                                        Year 1          Year 2          Year 3          Year 4       Years Used
----------------------------------------------------------------------------------------------------------------
(1) Harvest Denominator in Fishery  1,000 lb        200 lb          1,000 lb        1,000 lb       3,200 lb
 (Legal Landings)
----------------------------------------------------------------------------------------------------------------
(2) Total Legal Landings of Crew A  500 lb          20 lb           300 lb          500 lb         1,320 lb
----------------------------------------------------------------------------------------------------------------
(3) Percentage of Harvest           50 [percnt]     10 [percnt]     30 [percnt]     50 [percnt]    43.3 [percnt]
 Denominator for Crew A              (Used)                          (Used)          (Used)         (Used)
----------------------------------------------------------------------------------------------------------------
(3A) Total Landings Landed Onshore  500             10              200             300            1,000
 for Crew A
----------------------------------------------------------------------------------------------------------------
(3B) Total Landings Processed At-   0               10              100             200            300
 sea for Crew A
----------------------------------------------------------------------------------------------------------------
(3C) Percentage of Landings Landed on Shore for Crew A = (1,000 / (1,000 + 300)) = 76.92 [percnt]
----------------------------------------------------------------------------------------------------------------
(3D) Percentage of Landings Processed At-sea for Crew A = (300 / (1,000 + 300)) = 23.08 [percnt]
----------------------------------------------------------------------------------------------------------------
(4) Total Legal Landings of Crew B  500 lb          180 lb          700 lb          500 lb         1,880 lb
----------------------------------------------------------------------------------------------------------------
(5) Percentage of Harvest           50 [percnt]     90 [percnt]     70 [percnt]     50 [percnt]    70 [percnt]
 Denominator for Crew B                              (Used)          (Used)          (Used)         (Used)
----------------------------------------------------------------------------------------------------------------
(5A) Total Landings Landed Onshore  500             100             200             500            800
 for Crew B
----------------------------------------------------------------------------------------------------------------
(5B) Total Landings Processed At-   0               80              500             0              580
 sea for Crew B
----------------------------------------------------------------------------------------------------------------
(5C) Percentage of Landings Landed Onshore for Crew B = (800 / (800 + 580)) = 57.97 [percnt]
----------------------------------------------------------------------------------------------------------------
(5D) Percentage of Landings Processed At-sea for Crew B = (580 / (800 + 580)) = 42.03 [percnt]
----------------------------------------------------------------------------------------------------------------
(6) Sum of Percentage of Harvest Denominators for All Crew = Crew A 0.433 (Line 3) + Crew B 0.700 (Line 5) =
 1.133 or 113.3 [percnt]
----------------------------------------------------------------------------------------------------------------
(7) Percentage of the Sum of the Percentage of the Harvest Denominator for Crew A = (0.433/1.133) = 0.3822 or
 38.22 [percnt]
----------------------------------------------------------------------------------------------------------------
(8) Percentage of the Sum of the Percentage of the Harvest Denominator for Crew B = (0.700/1.133) = 0.6178 or
 61.78 [percnt]
----------------------------------------------------------------------------------------------------------------

[[Page 63213]]

 
(9) Initial QS Pool = 9,000 Units
----------------------------------------------------------------------------------------------------------------
(10) Unadjusted Initial QS Allocation for Crew A = 38.22 [percnt] x 9,000 = 3,440 QS Units
----------------------------------------------------------------------------------------------------------------
(11) Unadjusted Initial QS Allocation for Crew B = 61.78 [percnt] x 9,000 = 5,560 Units
----------------------------------------------------------------------------------------------------------------
(12) Initial QS Allocation for Crew A = 3,440 QS Units x (0.03) = 103 QS Units
----------------------------------------------------------------------------------------------------------------
(13) Initial QS Allocation for Crew B = 5,560 QS Units x (0.03) = 167 QS Units
----------------------------------------------------------------------------------------------------------------
(14) Percentage of Crew A QS Allocation as CVC QS = 103 x 0.7692 (Line 3C) = 79 CVC QS Units
----------------------------------------------------------------------------------------------------------------
(15) Percentage of Crew A QS Allocation as CPC QS = 103 x 0.2308 (Line 3D) = 24 CPC QS Units
----------------------------------------------------------------------------------------------------------------
(16) Percentage of Crew B QS Allocation as CVC QS = 167 x 0.5797 (Line 5C) = 97 CVC QS Units
----------------------------------------------------------------------------------------------------------------
(17) Percentage of Crew B QS Allocation as CPC QS = 167 x 0.4203 (Line 5D) = 70 CPC QS Units
----------------------------------------------------------------------------------------------------------------

    Under our example, if the QS issued to the CVO, CPO, CVC, and CPC 
QS sectors is summed, then the total QS issued for all of the QS 
recipients is equal to 9,000 units the initial QS pool (sum the total 
from Lines 14 through 17 in both Table 4 and Table 6). The initial QS 
pool would be issued to all successful applicants. Additional QS would 
be issued to applicants who have a successful appeal of an initially 
denied application. However, it is the initial QS pool that would be 
used to determine the caps that apply to QS use. Those caps are 
discussed below.

Processor Quota Share Allocation

    A processing privilege, analogous to the harvest privilege 
allocated to harvesters, would be allocated to processors. Qualified 
processors would be allocated PQS in each crab fishery. PQS represents 
an exclusive but revocable privilege to receive deliveries of a 
specific portion of the annual TAC from a fishery.
    PQS allocations would be based on processing history during a 
specified qualifying period for each fishery. A processor's allocation 
in a fishery would equal its share of all qualified pounds of crab 
processed in the qualifying period (i.e., pounds processed by the 
processor divided by a denominator that represents pounds processed by 
all qualified processors). Unlike the QS allocation process, PQS is not 
allocated using a ``best of'' years provision.
    A person would be eligible to receive PQS if they are a: (1) U.S. 
citizen, corporation, or partnership at the time of application; and 
(2) legally processed any crab QS species during either 1998 or 1999. 
In addition, the Council provided an exemption to this eligibility 
requirement to accommodate long term participants in the fishery who 
did not participate in 1998 or 1999. An applicant may receive QS if 
that person had processed Bering Sea snow crab during each season from 
1988 through 1997 and invested at least $1,000,000 in processing 
equipment and facilities during the period from January 1, 1995, 
through June 10, 2002. NMFS has interpreted this requirement to apply 
from the period of January 1, 1995, through June 10, 2002, the time of 
final Council action on this provision. This would limit the ability of 
additional persons to claim eligibility under this provision. The date 
of final Council action would provide a suitable period of time during 
which to measure fiscal expenditures.
    Under this proposed rule, a person who has acquired or retained 
legal processing history through transfer by the express terms of a 
written contract that clearly and unambiguously provides that the legal 
processing history and rights, may apply for and receive PQS based on 
that legal processing history. This provision would allow for the 
transfer or retention of legal processing history prior to the 
implementation of this program. This provision would apply only if the 
person applying for PQS either: (1) legally processed any crab during 
1998 or 1999 as demonstrated on the official crab rationalization 
record; or (2) provides documentation of a contractual agreement for 
the transfer or retention of the legal crab processing history for any 
amount of any crab during 1998 or 1999, as demonstrated in the official 
crab rationalization record.
    This provision differs from the requirements established for QS 
holders who must either have an LLP license or be named on a State of 
Alaska Interim Use Permit in order to apply and receive QS. There is 
not a licensing requirement that allows for the tracking of processing 
history to specific persons. State of Alaska revenue codes, port codes, 
and other identifying elements do not necessarily establish the 
identity of a processor. Additionally, the Council recognized that 
custom processing, in which one firm paid another to process crab at a 
specific facility, or allowed the lease of its facility, did occur and 
permitted those crab buyers to claim legal processing history and the 
rights to apply for PQS in cases where documentation indicated that the 
legal processing that occurred at a facility was conducted by someone 
other than the buyer of the crab at the time.
    Additionally, the Council's motion establishing a qualified person 
could be interpreted to strictly limit the ability to apply for and 
receive PQS only if the person who processed crab in 1998 or 1999, or 
Bering Sea snow crab under the provisions provided above, applies, even 
if the processing facility, history, and other rights have been 
transferred to another person. This interpretation appears to narrowly 
limit the Council's overall recommendation that PQS and IPQ are access 
rights that may be acquired by a wide range of persons.
    This interpretation of Council intent also appears to be consistent 
with the ability to trade legal landings in the CVO and CPO QS sectors 
prior to the initial issuance of QS. Legal landings, and the right to 
apply for and receive CVO or CPO QS may be acquired by

[[Page 63214]]

persons who purchase the LLP license and the rights that transfer with 
that LLP license prior to submitting an application for QS. This 
provision would require that if legal processing history has been 
transferred and retained that the basic qualification for eligibility 
established by the Council, processing of any BSAI crab species in 1998 
or 1999, must still be met.
    In addition, these regulations would establish that if a person 
applies to receive PQS, that person or that person's 
successor[hyphen]in[hyphen]interest must exist at the time of 
application for PQS. A former partner of a dissolved partnership or a 
former shareholder of a dissolved corporation who would otherwise 
qualify as a person may apply for PQS in proportion to his or her 
ownership interest in the dissolved partnership or corporation. 
Documentation of ownership interest in a dissolved partnership or 
corporation, association, or other entity would be limited to corporate 
documents (e.g., articles of incorporation) or notarized statements 
signed by each former partner, shareholder or director, and specifying 
their proportions of interest. These requirements are similar to those 
used in the halibut and sablefish IFQ Program to establish who may 
apply to receive QS under the Program. The provisions in this proposed 
rule require that the person who received the crab and processed that 
crab, or their successor[hyphen]in[hyphen]intererst, is a person who is 
eligible to receive PQS.
    The amount of PQS allocated to a person would be based on a record 
of receiving and processing crab based on State of Alaska fish ticket 
data during the qualifying years. Data from the State of Alaska fish 
tickets concerning legal processing of crab would be presumed to be 
correct unless other documentation is provided by the applicant. 
However, allocations can be made to a buyer not recorded on a fish 
ticket if the applicant can demonstrate that the entity that should 
receive an allocation is someone other than the entity named on the 
fish ticket. Proof of this eligibility can include data from the State 
of Alaska Commercial Operators Annual Report, fish tax records, or 
other documentation of direct payments to fishermen. This provision is 
intended to address the custom processing arrangements. The following 
table establishes the eligibility and qualifying years for receiving 
PQS.

                                                      Table 7--PQS Eligibility and Qualifying Years
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            Qualifying Year Periods for Determining PQS
              Eligible Person to Receive PQS                                Crab Fisheries                                   Allocation
--------------------------------------------------------------------------------------------------------------------------------------------------------
The person who legally processed the crab during the        Eastern Aleutian Island golden king crab       4 years of the 4-year base period beginning
 qualifying years and;                                       (EAG)                                          on:
                                                                                                           (1) September 1, 1996, through December 25,
(1) is a US Citizen, corporation, or partnership; and                                                       1996;
                                                                                                           (2) September 1, 1997, though November 24,
(2) processed crab in 1998 or 1999; or                                                                      1997;
                                                                                                           (3) September 1, 1998, through November 7,
(3) processed Bering Sea snow crab during 1988 through                                                      1998;
 1997 and invested at least $1,000,000 in processing                                                       (4) September 1, 1999, through October 25,
 equipment and facilities during the period from January                                                    1999.
 1, 1995, through June 10, 2002.
                                                           ---------------------------------------------------------------------------------------------
                                                            Western Aleutian Island golden king crab       4 years of the 4-year base period beginning
                                                             (WAG)                                          on:
                                                                                                           (1) September 1, 1996, through August 31,
                                                                                                            1997;
                                                                                                           (2) September 1, 1997, though August 31,
                                                                                                            1998;
                                                                                                           (3) September 1, 1998, through August 31,
                                                                                                            1999;
                                                                                                           (4) September 1, 1999, through August 14,
                                                                                                            2000.
                                                           ---------------------------------------------------------------------------------------------
                                                            Bering Sea Tanner crab (BST)                   Equivalent to 50 percent of the total legally
                                                                                                            processed crab in the Bering Sea C. opilio
                                                                                                            fishery during the qualifying years
                                                                                                            established for the QS fishery; and 50
                                                                                                            percent of the totally legally processed
                                                                                                            crab in the Bristol Bay red king crab
                                                                                                            fishery during the qualifying years
                                                                                                            established for that crab QS fishery.
                                                           ---------------------------------------------------------------------------------------------
                                                            Bering Sea snow crab (BSS)                     3 years of the 3-year period beginning on:
                                                                                                           (1) January 15, 1997, through March 21, 1997;
                                                                                                           (2) January 15, 1998, through March 21, 1998;
                                                                                                            and
                                                                                                           (3) January 15, 1999, through March 22, 1999.
                                                           ---------------------------------------------------------------------------------------------

[[Page 63215]]

 
                                                            Bristol Bay red king crab (BBR)                3 years of the 3-year QS base period
                                                                                                            beginning on:
                                                                                                           (1) November 1, 1997, through November 5,
                                                                                                            1997;
                                                                                                           (2) November 1, 1998, through November 6,
                                                                                                            1998; and
                                                                                                           (3) October 15, 1999, through October 20,
                                                                                                            1999.
                                                           ---------------------------------------------------------------------------------------------
                                                            Pribilof Islands red and blue king crab (PIK)  3 years of the 3-year period beginning on:
                                                                                                           (1) September 15, 1996, through September 26,
                                                                                                            1996;
                                                                                                           (2) September 15, 1997, through September 29,
                                                                                                            1997; and
                                                                                                           (3) September 15, 1998, through September 28,
                                                                                                            1998.
                                                           ---------------------------------------------------------------------------------------------
                                                            St. Matthew blue king crab (SMB)               3 years of the 3-year period beginning on:
                                                                                                           (1) September 15, 1996, through September 23,
                                                                                                            1996;
                                                                                                           (2) September 15, 1997, through September 22,
                                                                                                            1997; and
                                                                                                           (3) September 15, 1998, through September 26,
                                                                                                            1998.
                                                           ---------------------------------------------------------------------------------------------
                                                            Western Aleutian Islands red king crab (WAI)   Equivalent to the total legally processed
                                                                                                            crab in the Western Aleutian Islands golden
                                                                                                            king crab fishery during the qualifying
                                                                                                            years established for that crab QS fishery.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    In the Bering Sea Tanner crab fishery, the issuance of PQS would be 
based on the processing history in the Bering Sea snow crab fishery. 
The Bering Sea Tanner crab fishery has not been open in recent years 
and, in the past, both Bering Sea snow crab and Bering Sea Tanner crab 
were harvested together. In the Western Aleutian Islands red king crab, 
the issuance of PQS would be based on the processing history in the 
Western Aleutian golden king crab fishery. This provision recognizes 
the fact there has been limited processing in these fisheries in recent 
years and much of the participation is sporadic and conducted by 
processing entities who have also been involved in the Western Aleutian 
Islands red king crab fishery.

Computation of Initial Issuance of PQS

    The amount of PQS that would initially be issued to any one person 
would be based on the amount of legal processing by the person as a 
percentage of a denominator that represents the total legal processing 
by all persons eligible to receive PQS. The following steps would be 
used to calculate PQS for an applicant.
    NMFS would build the official crab rationalization record, which 
would contain the total legal processing for all of the crab fisheries 
based on the best available information by using the State of Alaska 
fish ticket database. The official record is presumed to be correct 
unless an applicant provides information that indicates a correction is 
necessary. The total legal processing amount is the total processing 
denominator (TPD).
    In order to clearly explain the computation, the hypothetical 
example used previously for the QS issuance is repeated here. This 
example does not use data or persons from existing crab fisheries and 
is intended for illustrative purposes only. In our example, there are 
only two processors in the fishery: Processor A and Processor B, each 
with different landings patterns. The total legal processing, the 
region in which that processing occurred, and the amount of the 
processing are shown in Table 8. The computation process using two 
processors (A and B) is described in the table. Note this hypothetical 
fishery also assumes all applicable years are used to determine an 
initial issuance of PQS. As with all crab fisheries, the years used for 
selecting processing history differ from those used to determine legal 
landings for allocating QS. Because all years are used, the total 
processing denominator is not divided by the sum of the percentage of 
the processing denominator of all persons receiving PQS.
    The percentage of the TPD for each person is multiplied by the 
initial PQS pool, although the initial PQS pool does not need to be set 
at the same number as the initial QS pool. NMFS would set both pools at 
the same number for each crab fishery to facilitate ease of computation 
for use limitations. In our hypothetical example, this means there 
would be an initial QS pool of 9,000 units and an initial PQS pool of 
9,000 units. Although the amount of IFQ a unit of QS yields and the 
amount of IPQ a unit of PQS may yield would differ, the initial pools 
of quota would be the same. See the following table for details:

[[Page 63216]]



           Table 8--Hypothetical Crab Fishery - Four Years Used - Calculation of PQS Initial Issuance
----------------------------------------------------------------------------------------------------------------
                                        Year 1          Year 2          Year 3          Year 4         Total
----------------------------------------------------------------------------------------------------------------
(1) Total Processing Denominator    1,800 lb        400 lb          1,000 lb        1,000 lb       4,200 lb
 in Fishery (Legal Processing)
----------------------------------------------------------------------------------------------------------------
(2) Total Legal Processing of       600 lb          200 lb          300 lb          500 lb         1,600 lb
 Processor A
----------------------------------------------------------------------------------------------------------------
(3) Percentage of Total Harvest     33.3 [percnt]   50 [percnt]     30 [percnt]     50 [percnt]    40.8 [percnt]
 Denominator for Processor A         (Used)          (Used)          (Used)          (Used)         (Used)
----------------------------------------------------------------------------------------------------------------
(3A) Total Landings in the North    100             0               100             200            400
 Region for Processor A
----------------------------------------------------------------------------------------------------------------
(3B) Total Landings in the South    500             200             200             300            1,200
 Region for Processor A
----------------------------------------------------------------------------------------------------------------
(3C) Percentage of Processing in the North Region for Processor A = (400 / (400 + 1,200)) = 25.00 [percnt]
----------------------------------------------------------------------------------------------------------------
(3D) Percentage of Processing in the South Region for Processor A = (1,200 / (400 + 1,200)) = 75.00 [percnt]
----------------------------------------------------------------------------------------------------------------
(4) Total Legal Processing of       1,200 lb        200 lb          700 lb          500 lb         2,600 lb
 Processor B
----------------------------------------------------------------------------------------------------------------
(5) Percentage of Total Processing  66.7 [percnt]   50 [percnt]     70 [percnt]     50 [percnt]    59.2 [percnt]
 Denominator for Processor B         (Used)          (Used)          (Used)          (Used)
----------------------------------------------------------------------------------------------------------------
(5A) Total Processing in the North  900             100             500             0              1,500
 Region for Processor A
----------------------------------------------------------------------------------------------------------------
(5B) Total Landings in the South    300             100             200             500            1,100
 Region for Processor B
----------------------------------------------------------------------------------------------------------------
(5C) Percentage of Processing in the North Region for Processor B = (1,500 / (1,500 + 1,100)) = 57.69 [percnt]
----------------------------------------------------------------------------------------------------------------
(5D) Percentage of Processing in the South Region for Processor B = (1,100 / (1,500 + 1,100)) = 42.31 [percnt]
----------------------------------------------------------------------------------------------------------------
(6) Sum of Percentage of Total Processing Denominators for All Processors = Processor A 0.408 ( Line 3) +
 Processor B 0.592 (Line 5) = 1.00 or 100 [percnt]--NO SCALING FACTOR REQUIRED
----------------------------------------------------------------------------------------------------------------
(7) Initial PQS Pool = 9,000 Units
----------------------------------------------------------------------------------------------------------------
(8) Initial PQS Allocation for Processor A = 9,000 PQS Units x 0.408 (Line 3) = 3,672 PQS Units
----------------------------------------------------------------------------------------------------------------
(9) Initial PQS Allocation for Processor B = 9,000 PQS Units x 0.592 (Line 5) = 5,328 PQS Units
----------------------------------------------------------------------------------------------------------------
(10) Percentage of Processor A PQS allocation as North Region PQS = 3,672 x 0.2500 (Line 3C) = 918 PQS Units
----------------------------------------------------------------------------------------------------------------
(11) Percentage of Processor A PQS allocation as South Region PQS = 3,672 x 0.7500 (Line 3D) = 2,754 PQS Units
----------------------------------------------------------------------------------------------------------------
(12) Percentage of Processor B PQS allocation as North Region PQS = 5,328 x 0.5769 (Line 5C) = 3,074 PQS Units
----------------------------------------------------------------------------------------------------------------
(13) Percentage of Processor A PQS allocation as South Region PQS = 5,328 x 0.4231 (Line 5D) = 2,254 PQS Units
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------

Regional Designations of PQS

    PQS is issued with the same regional designations as those of QS as 
described in Table 3.
    Regional Adjustment for North and South Designations. North and 
South PQS regional designation is based on the location of the legal 
processing that is used as the basis for PQS allocation, as shown in 
Table 8. Once PQS is issued with regional designation, the issuance of 
QS would be adjusted so that the regional designations for QS would 
match the regional designations for PQS in each crab fishery. The 
adjustment would be made to the QS issued because the processing 
facilities are typically fixed shorebased plants. The adjustments to 
establish the same regional designation ratios is necessary to ensure 
matches in the amounts of IPQ and IFQ that are harvested and delivered 
in any one region.
    This adjustment process would be made prior to the issuance of the 
QS and PQS. The ratio between the regions should be the same even if 
the number of QS units differs. Using our hypothetical fishery example, 
we illustrate this process by showing how each LLP license holder's QS 
allocation would be adjusted at initial allocation. Drawing on 
information from Table 4 and Table 6, the calculation is shown in the 
following table:

   Table 9--Adjustment for North and South Regional Designation for QS
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
(1) Percentage of Landings in the North Region for LLP A = 100 [percnt]
 (Line 3G of Table 4) of 1,984 QS Units (Line 14 of Table 4) = 1,984 QS
 Units
------------------------------------------------------------------------
(2) Percentage of Landings in the South Region for LLP A = 0 [percnt]
 (Line 3H of Table 4) of 1,984 QS Units (Line 14 of Table 4) = 0 QS
 Units
------------------------------------------------------------------------

[[Page 63217]]

 
(3) Percentage of Landings in the North Region for LLP B = 56.52
 [percnt] (Line 5G of Table 4) of 3,708 QS Units (Line 16 of Table 4) =
 2,096 QS Units
------------------------------------------------------------------------
(4) Percentage of Landings in the South Region for LLP B = 43.48
 [percnt] (Line 5H of Table 4) of 3,708 QS Units (Line 16 of Table 4) =
 1,612 QS Units
------------------------------------------------------------------------
(5) Total QS (Sum of Lines 1[dash]4) = 5,692 Units
------------------------------------------------------------------------
(6) Total QS in North Region (Sum Lines 1 and 3) = 4,080 Units
------------------------------------------------------------------------
(7) Total QS in South Region (Sum Lines 2 and 4) = 1,612 Units
------------------------------------------------------------------------
(8) Percentage of North QS to South QS = 4,080/5,692 = 71.68 [percnt]
 North 1,612/5,692 = 28.32 [percnt] South
------------------------------------------------------------------------
(9) QS issued as North Region only = 1,984 Units (Line 1)
------------------------------------------------------------------------
(10) QS as both North and South Region = (Line 5 - Line 1) = 3,708 Units
------------------------------------------------------------------------
(11) Percentage of Processing in the North Region for Processor A =
 25.00 [percnt] (Line 3C of Table 8) of 3,672 Units (Line 8 of Table 8)
 = 918 Units
------------------------------------------------------------------------
(12) Percentage of Processing in the South Region for Processor A =
 75.00 [percnt] (Line 3D of Table 8) of 3,672 Units (Line 8 of Table 8)
 = 2,754 Units
------------------------------------------------------------------------
(13) Percentage of Processing in the North Region for Processor B =
 57.69 [percnt] (Line 5C of Table 8) of 5,328 Units (Line 9 of Table 8)
 = 3,074 Units
------------------------------------------------------------------------
(14) Percentage of Processing in the South Region for Processor B =
 42.31 [percnt] (Line 5D of Table 8) of 5,328 Units (Line 9 of Table 8)
 = 2,254 Units
------------------------------------------------------------------------
(15) Total PQS in North Region = 3,992 Units (Sum of Line 11 and 13)
------------------------------------------------------------------------
(16) Total PQS in South Region = 5,008 Units (Sum of Line 12 and 14)
------------------------------------------------------------------------
(17) Ratio of North PQS : South PQS = 44.36[percnt] North, 55.64
 [percnt] South
------------------------------------------------------------------------
Calculations: (a) QS North Region = Total QS 5,692 (Line 5) x
 44.38[percnt] (Line 17) = 2,525 Units
------------------------------------------------------------------------
(b) QS South Region = Total QS 5,692 (Line 5) x 55.64 [percnt] (Line 17)
 = 3,167 Units
------------------------------------------------------------------------
(c) QS North Region for all persons holding North Region and South
 Region QS = QS North Region - North Region only QS 2,525 Units - 1,984
 (Line 9) Units = 541 Units
------------------------------------------------------------------------
(d) QS South Region for all persons holding North Region and South
 Region QS = QS South Region - South Region only QS 3,167 Units - 0
 Units = 3,167 Units
------------------------------------------------------------------------
(e) North Region QS issued to LLP A = 1,984 QS Units
------------------------------------------------------------------------
(f) North Region QS issued to LLP B = Total QS held by LLP B (3,708) x
 541 Units/3,708 Units = 541 North Region QS Units
------------------------------------------------------------------------
(g) South Region QS issued to LLP B = Total QS held by LLP B (3,708) -
 541 North Region QS Units = 3,167 South Region QS Units
------------------------------------------------------------------------

    In this example, only one of the LLP license holders holds QS that 
would require adjustment. Although CVC QS is not subject to regional 
delivery requirements until after July 1, 2008, NMFS would compute the 
amount of QS designated for each region prior to the issuance of the 
CVC QS. This would allow a holder of CVC QS to know the regional 
designation of the QS prior to the application of that designation. The 
ratio of North and South regional designation would be the same for 
both the CVO and CVC QS.
    The adjustment for regional designation would need to occur once 
appeals are decided and those readjustments in regional designation 
would be made prior to fishing to minimize disruptions in the fishery. 
A person who would receive QS with more than one regional designation 
for that crab fishery would have his or her QS holdings regionally 
adjusted on a pro rata basis according to the following process:
    (1) Determine the ratio of the initial PQS pool in the North and 
South regions.
    (2) Multiply Initial QS pool by the ratio of North and South PQS. 
This would yield the target North QS pool and the target South QS pool.
    (3) Sum the QS for all persons who are eligible to receive North 
QS. This is the unadjusted North QS pool.
    (4) Repeat the procedure for the South Region. This is the 
unadjusted South QS pool.
    (5) Subtract the amount of QS for persons receiving North QS only 
from the unadjusted North QS pool to calculate the amount of North QS 
available to all persons holding both North and South region QS.
    (6) Subtract the amount of QS for persons receiving South QS only 
from the unadjusted South QS pool to calculate the amount of South QS 
available to all persons holding both North and South region QS.
    (7) Subtract the Unadjusted North QS pool from the Target North QS 
pool to calculate the number of QS units that would be applied to the 
North QS pool to adjust the regional designations. This amount is the 
Adjustment Amount.
    (8) Divide the Adjustment Amount by the unadjusted North QS pool 
for North and South QS holders. This yields the regional adjustment 
factor (RAF) for each person.
    (9) For each person who holds both North and South Region QS, the 
QS adjustment (QS Adj. p) to that person's Unadjusted North QS is 
expressed in the following equation as:
    QS adj. p = Unadjusted North QS p x RAF
    (10) If the QS adjustment for a person is negative, the QS 
adjustment for that person is subtracted from that person's unadjusted 
North QS amount and added to that person's unadjusted South QS. If the 
QS adjustment for a person is positive, the QS adjustment for that 
person is added to that person's unadjusted North QS amount and 
subtracted from that person's unadjusted South QS. These adjustments 
would yield the regional amount of QS for that person.
    Regional Adjustment in the Western Aleutian Islands Golden King 
Crab Fishery. The PQS issued would need to be adjusted so that 50 
percent of the PQS is designated as West region, and 50 percent is 
undesignated. However, the process for regionally allocating PQS

[[Page 63218]]

in the Western Aleutian Islands golden king crab fishery differs 
slightly from the North and South PQS regional designation, which is 
based on the location of the legal processing. Fifty percent of the PQS 
that would be issued in the Western Aleutian Islands golden king crab 
fishery would be issued with a West designation. The West designation 
applies to PQS for processing west of a line at 174[deg] W. long. The 
remaining 50 percent of the PQS issued for this fishery is undesignated 
region PQS.
    If a person owns a crab processing facility that is located in the 
West region at the time of application, that person would receive West 
PQS only. If a person applies to receive PQS and does not own a crab 
processing facility located in the West region at the time of 
application, then that person would receive West region (West) and 
Undesignated region (Und.) PQS. Expressed algebraically, for any person 
(p) allocated both West region PQS and undesignated region PQS the 
formula is as follows:
    (1) PQSWest = PQS x 0.50
    (2) PQSUnd. = PQS x 0.50
    (3) PQSWest for PQSWest!&!Und. holders = 
PQSWest - PQSWest!only
    (4) PQSWest for Personp = PQSp 
x (PQSWest for PQSWest!&!Und.) holders/
(PQSWest for PQSWest!&!Und. holders + 
PQSUnd)
    (5) PQSUnd. for Personp = PQSp 
-PQSWest for Personp
    For purposes of the allocation of PQS in the Western Aleutian 
Islands golden king crab fishery, ownership of a processing facility is 
defined as a sole proprietor, or a relationship between 2 or more 
entities in which a person directly or indirectly owns a 
10[hyphen]percent or greater interest in the facility. A processing 
facility is defined as a shorebased, or stationary floating processor. 
Catcher/Processors would not be considered as ownership of a processing 
facility operating in the West region.
    The QS issued to the Western Aleutian Islands golden king crab 
fishery is adjusted so 50 percent of the QS issued is West QS, which 
can be delivered only to an RCR located west of the 174[deg] W. 
longitude. The adjustment in the initial issuance of QS would be made 
for persons who made landings of Western Aleutian Islands golden king 
crab west and east of 174[deg] W. longitude.
    If a person received QS based solely on landings made east of 
174[deg] W. longitude, all of that QS would be issued to that person as 
regionally undesignated QS. If a person received QS based on landings 
made only west of 174[deg] W. longitude, all of that QS would be issued 
as West QS. However, if a person received QS based on landings made 
both east and west of the 174[deg] W. longitude line, then, that QS 
would be issued such that a portion of the QS would be issued as 
``Undesignated'' and a portion as ``West'' so that all of the QS issued 
in the Western Aleutian Islands golden king crab fishery are issued 
with a 50 percent West and a 50 percent Undesignated ratio. Person's 
receiving QS with both regional designations would have the QS 
pro[hyphen]rated so the total of all QS is issued initially as 50 
percent West and 50 percent Undesignated QS. The following process 
would be followed:
    (1) Sum the QS for all persons who are eligible to receive West QS. 
This is the unadjusted West QS pool;
    (2) Sum the QS for all persons who are eligible to receive 
Undesignated QS. This is the unadjusted Undesignated QS pool;
    (3) Subtract the amount of QS for persons receiving West QS only 
from the unadjusted West QS pool to calculate the amount of West QS 
available to all persons holding both West and Undesignated region QS;
    (4) Subtract the amount of QS for persons receiving Undesignated QS 
only from the unadjusted Undesignated QS pool to calculate the amount 
of Undesignated QS available to all persons holding both West and 
Undesignated region QS;
    (5) Subtract the Unadjusted West QS pool from the Target West QS 
pool to calculate the number of QS units that would be applied to the 
West QS pool to adjust the regional designations. This amount is the 
Adjustment Amount;
    (6) Divide the Adjustment Amount by the unadjusted QS pool for West 
and Undesignated QS holders. This yields the regional adjustment factor 
(RAF) for each person;
    (7) For each person who holds both unadjusted West and Undesignated 
Region QS, the QS adjustment to that person's Unadjusted West QS is 
determined by multiplying the Unadjusted West QS by the RAF; and
    (8) If the QS adjustment for person is negative, the QS adjustment 
for that person is added to that person's unadjusted West QS amount and 
subtracted from that person's unadjusted Undesignated QS. If the QS 
adjustment for a person is positive, the QS adjustment for that person 
is subtracted from that person's unadjusted West QS amount and added to 
that person's unadjusted Undesignated QS. These adjustments would yield 
the regional adjustment amounts for that person.

Initial Issuance of Crab QS and PQS

    In order to receive an initial allocation of QS or PQS, an eligible 
person would need to submit an Application for Crab QS or PQS. The 
application would be sent to the last known address of a person 
identified as an eligible applicant by the official crab 
rationalization record and would be available on the NMFS Alaska Region 
web page at www.fakr.noaa.gov. All applications would have to be 
submitted by the close of the application period. The application 
period would be specified in the Federal Register at the time of the 
publication of the Final Rule. Applications could be mailed, faxed, or 
hand delivered to the NMFS, Alaska Region (see ADDRESSES). The contents 
of the application vary, depending on the type of QS and/or PQS for 
which a person is applying. If an applicant is applying as the 
successor[hyphen]in[hyphen]interest to an eligible applicant, an 
application must also contain valid documentation demonstrating the 
applicant's status as a successor[hyphen]in[hyphen]interest to that 
eligible applicant.
    An Application for Crab QS or PQS would be signed by the applicant 
or the individual representing the applicant and would contain the 
necessary information to identify the person applying, the basis for 
applying for QS or PQS, any necessary information on the vessel or 
processor, documentation of crew participation, contract provisions for 
community ROFR, and any other information deemed necessary by the 
Regional Administrator.
    Additional requirements in the Application for Crab QS or PQS exist 
for persons applying to receive PQS from legal landings made in an ECC, 
or in a community in the GOA north of a line at 56[deg]20' N. latitude 
-- a North GOA Community. Prior to the initial issuance of PQS based on 
legal processing located in an ECC, that person must provide 
documentation he or she has completed a contract with the entity 
representing the ECC that sets out the terms for ROFR for any PQS to be 
transferred in a future sale. In the case of a North GOA Community, a 
ROFR contract must be signed with the City of Kodiak and the Kodiak 
Island Borough.
    The Regional Administrator would evaluate Applications for QS and 
PQS submitted during the specified application period and compare all 
claims in the application with the information in the official crab 
rationalization record. Claims in the application consistent with 
information in the official record would be accepted by the Regional 
Administrator.

[[Page 63219]]

Inconsistent claims in the application, unless verified by 
documentation, would not be accepted.
    If NMFS determines the additional information or documentation 
submitted by the applicant is correct and supports the applicant's 
burden of proving the inconsistent claims, the information would be 
used to determine whether the applicant is eligible for a QS or PQS 
allocation. However, if the Regional Administrator determines the 
additional information or documentation does not support the 
applicant's burden, the applicant would be notified through an initial 
administrative determination (IAD), stating the applicant did not meet 
the burden of proof.
    NMFS would specify a 30[hyphen]day evidentiary period during which 
an applicant may provide additional information or documentation to 
support the claims made in his or her application. An applicant would 
be limited to one 30[hyphen]day evidentiary period per application. 
Additional information or documentation, or a revised application, 
received after the 30[hyphen]day evidentiary period, but before an IAD 
is issued, would be considered.
    NMFS would prepare and send an IAD to the applicant following the 
expiration of the 30[hyphen]day evidentiary period if sufficient 
documentation is not provided. The IAD would indicate the deficiencies 
in the application. The IAD would also indicate which claims cannot be 
approved based on the available information or documentation. An 
applicant who receives an IAD may appeal. An applicant who avails 
himself or herself of the opportunity to appeal an IAD would not 
receive the QS or PQS being contested.
    NMFS would not initiate an IAD in the case of an Application for 
Crab QS or PQS that is complete except for a signed ROFR contract. This 
provision would accommodate applicants who have complied with the 
application requirements with the exception of a mutually signed 
contract which relies on agreement of both parties. Once an application 
is submitted with a ROFR contract, NMFS would allocate PQS to that 
person.

IFQ Issuance

    The annual allocations of the TAC, in pounds, to QS holders are 
referred to as IFQ. IFQ would be issued for each of the four QS 
sectors. IFQ is a permit that allows the harvesting of an amount of the 
TAC for a fishery. As with QS, IFQ would be issued on a 
fishery[hyphen]by[hyphen]fishery and regional basis.
    IFQ would be issued once the TAC for that crab fishery in that crab 
fishing year has been specified by the State of Alaska. The TAC 
available as IFQ would be the fishery TAC minus the 10 percent CDQ 
allocation. For the Western Aleutian Islands golden king crab fishery, 
the 10 Adak allocation would be deducted from the TAC prior to 
allocating the IFQ. All IFQ would be issued for a crab fishing year.
    QS issued after NMFS has issued annual IFQ would not result in IFQ 
for that crab fishery for that fishing year. If additional actions such 
as appeals, or other administrative decisions occur after IFQ has been 
issued for that fishery, the person would not receive IFQ until the 
following year. This single annual issuance is required for 
administrative purposes so that mid[hyphen]year adjustments to other 
IFQ holders would not occur that would alter their allocation or the 
ratio of QS to IFQ for that year.
    The account of the person holding IPQ would be debited as soon as 
the landings are reported. A person would be prohibited from harvesting 
an amount of crab in excess of the IFQ held. Penalties would be imposed 
for any overage in excess of a person's IFQ. The IFQ is subject to use 
provisions described later in this preamble. Descriptions of the types 
of IFQ resulting from each type of QS follow.

CVO IFQ

    CVO QS yields two separate classes of IFQ: Class A IFQ and Class B 
IFQ. Class A IFQ limits the delivery of any crab harvested with that 
IFQ to an RCR holding unused IPQ with a specific regional designation. 
Class B IFQ could be delivered to any RCR, except to an RCR that has 
already used CPO or CPC IFQ in that crab fishery during that season. 
Class B IFQ would not be regionally designated.
    The Class A/Class B IFQ distinction would be made only in the 
annual IFQ allocations. QS would be issued in a single class. Since the 
Class B IFQ are intended to provide negotiating leverage to harvesters 
who are unaffiliated with holders of PQS or IPQ, only QS holders who do 
not also hold PQS or who are unaffiliated with holders of PQS, would 
receive Class B IFQ. Holders of PQS or IPQ and their affiliates who 
hold QS would be allocated Class A IFQ for all of their QS holdings. 
For each region of each fishery, the allocation of Class B IFQ would be 
10 percent of the total allocation of IFQ. For example, if no North QS 
holders are affiliated with PQS or IPQ holders, each IFQ allocation 
would be 90 percent North Class A IFQ and 10 percent Class B IFQ. If 
half of the North QS is held by persons affiliated with a PQS or IPQ 
holder, the holders of North QS who are not affiliated with a PQS or 
IPQ holder would receive 80 percent Class A IFQ and 20 percent Class B 
IFQ. The result would be that 10 percent of the total North IFQ in the 
fishery would be Class B IFQ. The absence of an affiliation with a 
holder of PQS or IPQ would be established by a harvester filing an 
annual affidavit stating the use of any IFQ held by that harvester is 
not subject to any control of any holder of PQS or IPQ.
    Persons who hold CVO IFQ and also hold PQS or IPQ would receive 
only Class A IFQ. Persons who hold CVO IFQ and are affiliated with a 
person who holds PQS or IPQ would receive only Class A IFQ. Affiliation 
would be determined based on two factors: ownership and control. IFQ 
would be considered to be held by a processor if a PQS or IPQ holder 
directly or indirectly owns at least 10 percent of an entity who holds 
or receives IFQ. This 10 percent ownership standard has been used in 
other rationalization programs in the past as a means of measuring 
ownership and comports with the mechanism employed to measure common 
ownership for purposes of QS use caps. The definition of affiliation 
used in this proposed rule is similar to that developed for the AFA 
regulations, and is consistent with Council intent.
    Examples of the affiliation rule follow: First, if a PQS or IPQ 
holder also held QS and received IFQ, that IFQ would be considered to 
be affiliated and issued as Class A IFQ; second, if a PQS or IPQ holder 
owned 50 percent of Corporation A and Corporation A owned 50 percent of 
Corporation B, which received IFQ, that IFQ would be considered to be 
affiliated with a processor because that PQS or IPQ holder indirectly 
owns 25 percent of Corporation B, which is receiving the IFQ; third, if 
a PQS or IPQ holder owned 20 percent of Corporation C and Corporation C 
owned 20 percent of Corporation D, which received IFQ, that IFQ would 
not be considered affiliated because the PQS or IPQ older indirectly 
owns only 4 percent of Corporation D; therefore, both Class A and Class 
B IFQ would be issued to Corporation D.
    Control of IFQ by a PQS or IPQ holder would be measured by linkages 
between the PQS or IPQ holder and the IFQ holder and would serve as a 
means of effectively extending the ability of the PQS or IPQ holder to 
control the deliveries of crab to a specific processor. NMFS would 
interpret control in situations in which the person holding PQS or IPQ: 
Control exists if an individual, corporation, or other business entity 
that holds PQS controls a 10 percent or greater interest in the

[[Page 63220]]

IFQ holder. An entity controls a 10 percent or greater interest in a 
second entity if the first entity: (1) Controls a 10 percent ownership 
share of the second entity, or (2) Controls 10 percent or more of the 
voting stock of the second entity. In addition to this direct form of 
control, affiliation would also include other means whereby an entity 
otherwise controls another entity.
    An entity otherwise controls another when the first entity has the 
power to exercise a controlling influence over the management or 
policies of the other entity, unless such power is solely the result of 
an official position with such entity. This definition is drawn from 
the Investment Company Act of 1940. This definition is intended to 
incorporate all forms of control. Examples of the types of control that 
may be encompassed by this definition, include the authority to direct 
the delivery of crab harvested under an IFQ permit held by the second 
entity to a specific RCR, or when one entity absorbs the majority of 
costs and normal business risks associated with the operation of a 
second entity, including the costs associated with obtaining and using 
any amount of the QS, PQS, IFQ, or IPQ held by the second entity.
    NMFS would require QS holders to submit an affidavit on an annual 
basis, along with the Annual Application for Crab IFQ/IPQ Permit, to 
attest to whether an affiliation exists between a PQS or IPQ holder and 
the IFQ recipient.
    The Regional Administrator would determine the amount of Class A 
and Class B IFQ that is issued to a QS holder. This is calculated by 
allocating 90 percent of the TAC (TAC a) as Class A IFQ. A portion of 
TAC a is allocated to persons eligible to hold only Class A IFQ (TAC a 
only), the remaining TAC (TAC r) is allocated for harvest by a person 
(p) eligible to receive both Class A IFQ and Class B IFQ. Expressed 
algebraically, for an individual person (p) eligible to hold both Class 
A and Class B IFQ the annual allocation formula is as follows:
    1. TACa = TAC x 0.90
    2. TACr = TACa - TACa!only
    3. IFQap = TACr / (TAC - TACa
!only) x IFQp
    4. IFQbp = IFQp - IFQap

CPO IFQ

    CPO QS yields only one class of IFQ, CPO IFQ. This IFQ allows the 
harvest and processing of an amount of crab. The person holding CPO IFQ 
can choose to harvest an amount of crab and process it on board that 
same vessel. Alternatively, the CPO IFQ holder can harvest crab and 
deliver the crab to a separate RCR. CPO IFQ is not subject to regional 
restrictions while used as CPO IFQ.

CVC IFQ

    CVC QS yields CVC IFQ. CVC IFQ would not be subject to regional 
designation until July 1, 2008. After July 1, 2008, CVC IFQ would be 
issued as Class A and Class B IFQ, subject to the same regional 
designation and affiliation requirements as those described under CVO 
IFQ.

CPC IFQ

    CPC QS yields CPC IFQ. As with CPO IFQ, there are no regional 
delivery requirements, and crab harvested using a CPC IFQ can be 
harvested and processed on board a vessel, or it can be delivered to 
another RCR. Unlike CVC IFQ, CPC IFQ would not convert to Class A and 
Class B shares annually starting July 1, 2008.

IPQ Issuance

    An annual allocation of PQS is referred to as IPQ and expressed in 
pounds of crab. IPQ would be equivalent to the amount of the TAC that 
is issued as Class A IFQ for that crab fishery. Processor privileges do 
not apply to the amount of the TAC allocated as Class B IFQ, or prior 
to July 1, 2008, allocated for use by the CPO and CPC sectors. IPQs 
would be regionally designated for processing with the same regional 
designations that apply to IFQ. The account of the person holding IPQ 
would be debited as soon as the landings are reported.

Annual Application for Crab IFQ/IPQ Permit

    Prior to the issuance of IFQ or IPQ for a crab fishery, each person 
that wishes to receive IFQ or IPQ must submit an Annual Application for 
Crab IFQ/IPQ Permit. This application is necessary for NMFS to 
administer several aspects of this program, specifically: (1) to 
determine the designation of Class A and Class B IFQ in each crab 
fishing year for each person based on the affidavit; (2) to determine 
whether the applicant would be using the IFQ as part of a crab 
harvesting cooperative; and (3) to ensure that an EDR has been 
submitted, if required. This application must be submitted prior to the 
start of the crab fishing year.
    A complete Annual Application for Crab IFQ/IPQ Permit would include 
the applicant's identification and contact information, whether the 
applicant has joined a crab cooperative, and a completed affidavit of 
affiliation declaring any and all affiliations with any PQS or IPQ 
holder. An affidavit of affiliation would include the applicant's 
relationships with IPQ or PQS holders that may involve direct or 
indirect ownership or control of the delivery of IFQ and any 
supplemental documentation deemed necessary by NMFS to determine 
whether an affiliation exists. This includes the names of all persons, 
to the individual level, holding an ownership interest in the entity 
and the percentage ownership each person holds. The application must 
also include the submission of an EDR, and pay any outstanding fees, if 
required.
    As with the other permit applications, NMFS would review the 
application for completeness, payment of any fees required under this 
program, and other provisions required for permit holders.

QS/IFQ and PQS/IFQ Transfer Provisions

    After the initial allocation of QS and PQS, these shares and their 
corresponding IFQ and IPQ, may be transferred. All transfers must be 
approved by NMFS. A transfer is any change in the person holding the QS 
or using the IFQ, permanently or for a fixed period of time. IFQ used 
by a person holding a Crab IFQ Hired Master Permit issued by NMFS, and 
the use of IFQ assigned to a crab harvesting cooperative and used 
within that cooperative, are not considered to be transfers of IFQ.

Eligibility to Transfer Quota

    Before receiving quota by transfer quota, a person must establish 
eligibility to receive QS, PQS, IFQ, or IPQ by transfer by submitting a 
completed Application for Eligibility to Receive QS/IFQ or PQS/IPQ by 
Transfer, available on the NMFS Alaska Region website at http://www.fakr.noaa.gov, or from the NMFS Alaska Region (see ADDRESSES). If a 
person is an initial issuee of QS, an eligibility application is not 
required. To be eligible to receive QS, PQS, IFQ, or IPQ by transfer, a 
person must first meet the requirements in the following table:

[[Page 63221]]



     Table 10--Eligibility Requirements to Receive Quota by Transfer
------------------------------------------------------------------------
                                                           Eligibility
             Quota Type               Eligible Person     Requirements
------------------------------------------------------------------------
PQS                                  Any person         None
------------------------------------------------------------------------
IPQ                                  Any person         None
------------------------------------------------------------------------
CVO or CPO QS                        A person           None
                                      initially issued
                                      QS
------------------------------------------------------------------------
                                     An individual      who is a U.S.
                                                         citizen with at
                                                         least 150 days
                                                         of sea time as
                                                         part of a
                                                         harvesting crew
                                                         in any U.S.
                                                         commercial
                                                         fishery
------------------------------------------------------------------------
                                     A corporation,     with at least on
                                      partnership, or    individual
                                      other entity       member who is a
                                                         U.S. citizen
                                                         and who:
                                                        (1) owns at
                                                         least 20
                                                         percent of the
                                                         corporation,
                                                         partnership, or
                                                         other entity;
                                                         and
                                                        (2) has at least
                                                         150 days of sea
                                                         time as part of
                                                         a harvesting
                                                         crew in any
                                                         U.S. commercial
                                                         fishery
------------------------------------------------------------------------
                                     An ECCO            None
------------------------------------------------------------------------
                                     A CDQ Group        None
------------------------------------------------------------------------
CVO or CPO IFQ                       All persons        Same as the
                                      eligible for CVO   requirements
                                      or CPO QS          for CVO and CPO
                                                         QS
------------------------------------------------------------------------
                                     A crab harvesting  None
                                      cooperative
------------------------------------------------------------------------
CVC or CPC QS                        An individual      None
                                      initially issued
                                      QS
------------------------------------------------------------------------
                                     An individual      who is a U.S.
                                                         citizen with:
                                                        (1) at least 150
                                                         days of sea
                                                         time as part of
                                                         a harvesting
                                                         crew in any
                                                         U.S. commercial
                                                         fishery; and
                                                        (2) recent
                                                         participation
                                                         in the 365 days
                                                         prior to the
                                                         transfer.
------------------------------------------------------------------------
CVC or CPC IFQ                       All persons        Same as the
                                      eligible for CVC   requirements
                                      or CPC QS          for CVC and CPC
                                                         QS
------------------------------------------------------------------------
                                     A crab harvesting  None
                                      cooperative
------------------------------------------------------------------------

    Prior to receiving QS by transfer on behalf of a specific ECC, a 
non[hyphen]profit entity that intends to represent that ECC as an ECCO 
must have approval from the Regional Administrator. To receive 
approval, the non[hyphen]profit entity seeking to become an ECCO must 
submit a complete Application to Become an ECCO to NMFS, available on 
the NMFS Alaska Region website at http://www.fakr.noaa.gov, or from the 
NMFS Alaska Region (see ADDRESSES). If an application is disapproved, 
then the determination may be appealed.
    An ECCO is a non[hyphen]profit organization that is authorized to 
hold QS and lease the resulting IFQ to residents of the ECC on whose 
behalf it holds the QS. Each ECC would have to designate an ECCO to 
transfer and hold QS on its behalf. The ECCO would be identified by 
either the CDQ group, or the municipality in which the ECC is located, 
except in cases where the ECC is also located in a borough. In such 
case, the municipality and borough must agree to designate the same 
non[hyphen]profit organization to serve as the ECCO. Each ECC may 
designate only one ECCO to hold crab QS on behalf of that community at 
any one time.
    A complete Application to Become an ECCO consists of: (1) The 
articles of incorporation under the laws of the State of Alaska for 
that non[hyphen]profit entity; (2) A statement indicating the ECC 
represented by that non[hyphen]profit entity for purposes of holding 
QS; (3) Management organization information; and (4) A statement 
describing the procedures that would be used to determine the 
distribution of IFQ to residents of the community represented by that 
ECCO.

Transfer Applications

    Once an eligibility application is submitted, and eligibility to 
receive QS, PQS, IPQ, or IFQ is established, a transfer application 
must be submitted to NMFS for the actual transfer of a specific type of 
quota. There are three forms of transfer applications and the 
application form used would vary depending on the person applying for 
the transfer. The three forms are: (1) Application for Transfer of Crab 
QS/IFQ or PQS/IPQ. This application is required to transfer any amount 
of QS, PQS, IFQ, or IPQ from an entity that is not an ECCO or a crab 
harvesting cooperative; (2) Application for Transfer of Crab QS/IFQ to 
or from an ECCO. This application is required to transfer any amount of 
QS or IFQ to or from an entity that is an ECCO; or (3) Application for 
Inter[hyphen]cooperative Transfer. This application is required to 
transfer any amount of IFQ from a crab harvesting cooperative to 
another crab harvesting cooperative. All of these transfer forms would 
be available on the NMFS Alaska Region website at http://www.fakr.noaa.gov, or from the NMFS Alaska Region (see ADDRESSES).
    For the transfer of PQS or IPQ, an application must contain a 
signature of a representative of an ECC entity with ROFR. For the 
transfer of CVC QS or IFQ or CPC QS or IFQ, individuals must submit 
proof of at least one landing of crab in any crab fishery in the 365 
days prior to submission to NMFS of the application. Proof of this 
landing is either: signature of the applicant on an ADF&G Fish Ticket; 
or an affidavit from the vessel owner attesting to that individual's 
participation as a member

[[Page 63222]]

of a fish harvesting crew on board that vessel at the time of the 
landing.
    NMFS would establish the deadline of August 1 by which QS and PQS 
holder must apply for their annual IFQ or IPQ permits for that crab 
fishing year. This deadline provides NMFS the time necessary to 
calculate whether, and how much, of the IFQ issued to a person should 
be designated as Class A or Class B IFQ based on the affidavit of 
affiliation provided in the application. NMFS would need to know all 
affiliation information for all persons to calculate the Class A/B IFQ 
ratios for each person accurately. Without this deadline, NMFS would 
not have sufficient information on affiliations and could not calculate 
the Class A/B ratio for a person.
    This deadline date of August 1 allows NMFS time to issue the IFQ 
and IPQ for the Aleutian Islands golden king crab fishery (which 
typically begins in mid-August) and sufficient time to calculate and 
issue the IFQ and IPQ for all the other fisheries when the TACs are 
announced by the State of Alaska (in the Fall). Between August 1 and 
the issuance of IFQ or IPQ for a crab fishery, NMFS would not approve 
any transfers of QS, PQS, IFQ, or IPQ. This limit on transfer approval 
ensures that NMFS calculates the Class A/B IFQ ratio based on the 
affiliation information of all persons in the fishery at the same time. 
Once the IFQ and IPQ is issued, NMFS would resume the approval of valid 
transfer applications. For most crab fisheries, this would effectively 
result in a one month period when NMFS would not approve transfers. 
Persons may still submit applications during this time, but approval 
would not occur until NMFS has issued the IFQ and IPQ for the crab 
fishery.
    Approval criteria for an Application for Transfer of Crab QS/IFQ or 
PQS/IPQ. An Application for Transfer of Crab QS/IFQ or PQS/IPQ would 
not be approved until the Regional Administrator has determined that: 
(1) The person applying to receive the quota is eligible to receive it; 
(2) The application is notarized; (3) All fees for this program are 
paid as well as any fines, civil penalties, or other payments due and 
owing, or outstanding permit sanctions, resulting from Federal fishery 
violations involving either party exist; (4) The person applying to 
receive quota currently exists; (5) The transfer would not cause the 
person applying to receive the quota to exceed the use limit; (6) The 
person applying to make or receive the QS, PQS, IFQ or IPQ transfer has 
submitted an EDR, if required; (7) In the case of the transfer of PQS 
or IPQ, that the provisions for ROFR have been met; and (8) Other 
pertinent information requested on the application for transfer has 
been supplied to the satisfaction of the Regional Administrator.
    Application for Transfer of Crab QS/IFQ to or from an ECCO. An 
Application for Transfer of Crab QS/IFQ to or from an ECCO must be 
approved by the Regional Administrator. This application is required 
for the ECCO to hold the QS and for the individual that would use the 
IFQ to harvest crab. Any transfer of QS from an ECC by the ECCO 
requires authorization of the appropriate governing body of the ECC to 
ensure proper oversight.
    In the application, all individuals applying to receive IFQ by 
transfer from an ECCO must submit proof of at least one delivery of 
crab in any crab fishery in the 365 days prior to submission to NMFS of 
the application. Proof of this landing is either: the signature of the 
applicant on an ADF&G Fish Ticket; or an affidavit from the vessel 
owner attesting to that individual's participation as a member of a 
fish harvesting crew on board that vessel during that landing. In 
conjunction with the transferee, the ECCO would be a party to the 
Application for the Transfer of QS/IFQ to or from an ECCO. The ECCO 
would provide to NMFS an explanation for the transfer of QS/IFQ to be 
included in NMFS' review of the community benefits of ECCO's. Included 
among the reasons for transfer are: facilitation of ECCO management and 
administration; to finance future QS purchases by the ECCO; to permit 
community residents to fish; or, to facilitate dissolution of the ECCO. 
A person receiving IFQ from an ECCO must affirm that they have been a 
permanent resident in the ECC for a period of 12 months prior to the 
submission of the application.
    ECCO Annual Report for an ECC. In addition to the Application to 
Transfer Crab QS/IFQ to or from an ECCO, the ECCO must submit an annual 
report for the ECC to NMFS. An ECCO would be required to submit a 
complete annual report by June 30 of the crab fishing year that it is 
required. If an ECCO did not submit an annual report for the previous 
year, NMFS would not approve an Application to Transfer Crab QS/IFQ to 
or from that ECCO. This annual report is similar to the requirement in 
the current halibut and sablefish community purchase program. The 
annual report would ensure that the ECCO maintains the intent of the 
ECC QS purchase provisions that the QS and IFQ benefit residents of 
eligible communities.
    The annual report would detail the use of the QS and IFQ in that 
community, including information on the IFQ lease holders, crew 
employed, criteria used by the ECCO to distribute IFQ leases among 
eligible community residents, any changes in the management structure 
of the ECCO, and copies of decision making documents from ECCO board 
meetings. In addition, NMFS would request a description of efforts the 
ECCO has made to ensure that IFQ lessees employ crew members who are 
eligible community residents of the ECC aboard vessels on which IFQ 
derived from QS held by an ECCO is being fished.

Inter[hyphen]cooperative Transfers

    A crab harvesting cooperative would be permitted to transfer its 
IFQ only to another crab harvesting cooperative. Crab harvesting 
cooperatives wishing to engage in an inter[hyphen]cooperative transfer 
must complete an Application for Inter[hyphen]cooperative Transfer.
    Application for Inter[hyphen]cooperative Transfer. A complete 
application consists of the following: (1) the name and contact 
information of the crab harvesting cooperative transferor and 
transferee; (2) the identification of the crab IFQ being transferred, 
including the permit number, year that permit was issued, and number of 
pounds being transferred; (3) price paid for the IFQ; (4) whether an 
EDR was submitted, if required; (5) whether all fees have been paid; 
and (6) original notarized signatures of both the transferee and 
transferor. The approval criteria for an Application for 
Inter[hyphen]Cooperative Transfer are the same as those for an 
Application for Transfer of Crab QS/IFQ or PQS/IPQ.

Specific Provisions on the Transfer of CVO and CPO QS and IFQ

    CVO and CPO QS and the resulting IFQ would be transferrable under 
the Program, subject to the caps on the amount of shares a person may 
hold or use. Leasing would be defined for purposes of this program as 
the use of IFQs on a vessel in which the QS holder has less than 10 
percent ownership interest or on which the QS holder is not present. 
The general provisions for the leasing of CVO and CPO IFQ (i.e., the 
temporary transfer of IFQs without the accompanying QS) would expire on 
July 1, 2010, which is five years after Program implementation. Leasing 
among crab harvesting cooperatives would not expire. The Council's 
intent in allowing leasing to continue through crab harvesting 
cooperatives is to create an incentive for cooperative membership.

[[Page 63223]]

Specific Provision on the Transfer of CVC and CPC QS and IFQ

    CVC or CPC QS would be fully transferable to persons determined by 
NMFS to be eligible to receive this type of QS by transfer. In order to 
be eligible to receive CVC/CPC QS and/or IFQ by transfer, a person must 
be an individual U.S. citizen with at least 150 days of sea time as 
part of a harvesting crew in any U.S. commercial fishery. Additionally, 
the person must be an ``active participant'' in the BSAI crab fisheries 
as demonstrated by a landing in a crab fishery in the last 365 days. 
Documentation of ``active participation'' includes an ADF&G fish 
ticket, an affidavit from the vessel owner, or other verifiable 
documentation.
    The accompanying CVC or CPC IFQ may also be leased until July 1, 
2008. After July 1, 2008, leasing would be permitted only in the case 
of a documented hardship for the term of the hardship, subject to a 
maximum of 2 years over a 10 year period. A hardship would be 
considered if there is: (1) a severe medical condition of the QS holder 
documented by a medical doctor who verifies the QS holder cannot 
participate in the fishery because of the medical condition, (2) a 
medical condition involving a person that requires the QS holder's 
full[hyphen]time care of that person, or (3) a total or constructive 
physical loss of a vessel. The QS holder would be required to provide 
documentation to NMFS the vessel was lost and could not be replaced in 
time to participate in the fishery.

Specific Provisions on the Transfer of PQS and IPQ

    PQS and the resulting IPQ are fully transferable subject only to 
use and ownership caps. This allows for the entry of new processors 
into the fishery. The Council did not identify any specific eligibility 
criteria for persons wishing to obtain PQS or IPQ by transfer. However, 
the Council did establish a ROFR provision that restricts transfers of 
PQS and IPQ out of a community.

Right of First Refusal (ROFR)

    The Program contains provisions for a ROFR to be granted to ECCs, 
with the exception of Adak, for the purchase of PQS/IPQ that is 
proposed by the PQS holder to be transferred out of the ECC. ROFR would 
apply to all crab PSQ/IPQ derived from legal processing that occurred 
in that ECC except for PSQ/IPQ issued for Tanner crab, Western Aleutian 
Islands golden king crab, and Adak red king crab. The Tanner crab 
fishery is exempt because this species has been and likely would 
continue to be a concurrent fishery with Bristol Bay red king crab and 
snow crab. The Western Aleutian Islands golden king crab fishery is 
exempt because the fishery is regionalized in a manner that largely 
makes ROFR provisions unnecessary. Last, the Adak red king crab fishery 
was closed for several years limiting community dependence on that 
fishery.
    To qualify as an ECC, a community must have processor history that 
accounts for at least 3 percent of the initial allocation of PQS in any 
crab fishery. The 3 percent threshold is intended to limit the ROFR to 
communities with historical dependence on the crab fisheries. Based on 
the Alaska State fish ticket database, the following nine communities 
meet this threshold of historical dependence as an ECC: Adak, Akutan, 
False Pass, St. George, St. Paul, Dutch Harbor, Kodiak, King Cove, and 
Port Moller. Adak is not eligible for ROFR because the Program excludes 
any community that receives a direct allocation of crab, which Adak 
does (see provisions for Adak allocation within this proposed rule). 
The rationale for this provision is that the direct allocation of crab 
is sufficient to support Adak's dependence on the crab fisheries, and 
any further protection of the community's interest in the fisheries is 
unnecessary.
    ECCs would be required to designate an entity to represent it for 
purposes of ROFR. For those ECCs that are also CDQ communities (Akutan, 
False Pass, St. George, and St. Paul), the entity would be the CDQ 
group of which the community is a member. For non CDQ communities that 
are ECCs (Dutch Harbor, Kodiak, King Cove, and Port Moller), the entity 
would be a person or organization designated by the governing bodies of 
the ECCs. The entity for an ECC would be designated the right to 
intervene on behalf of its communities if a PQS holder proposes to 
transfer PQS or IPQ outside the community.
    The ROFR provisions attempt to strike a balance between community 
and industry interests. Generally, the ROFR provides an ECC with the 
right to purchase PQ or IPQ from a processor for the same price and 
subject to the same conditions as offered by the seller in an open 
market. Under this system, the holder of PQS/IPQ would notify the ECC 
or its representative of the terms of the pending sale. The ECC would 
then have the opportunity to exercise the ROFR by notifying the seller 
of acceptance of those terms within a specified time period. If the 
terms are not accepted, the open market sale may proceed.
    An exception to the ROFR would allow a company to consolidate 
operations among several commonly owned plants to achieve 
intra[hyphen]company efficiencies. In addition, companies could lease 
IPQ for use outside a community. However, use of more than 20 percent 
of a person's IPQ holdings outside an ECC during a crab fishing year 
would trigger the ECC's right of first refusal. The time period of a 
crab fishing year to allow for this 20 percent exception differs from 
the Council's motion that was based on a time period of ``3 of the 
preceding 5 years.'' Under the Council's motion, 5 years potentially 
would need to pass before an ECC entity could determine whether or not 
to exercise ROFR. This approach would be inconsistent with the 
community protection objective of ROFR. Thus, NMFS proposes to base 
this 20 percent exception on an annual time period and specifically 
requests public comment on this approach relative to Council objectives 
and practicality (see ADDRESSES).
    The designation of a representing entity for non[hyphen]CDQ ECCs 
must be completed well in advance of the end of the application period 
for initial issuance of PQS to allow applicants for PQS and ECC 
entities to develop and sign contracts between the ECC entity and the 
applicant for PQS. The Council suggested ECCs designate the entity to 
represent it for purposes of ROFR at least 90 days before the end of 
the application period for initial issuance of PQS. This time frame 
would provide processors time to enter a contract that would establish 
ROFR. Given the proposed application period is 60 days and in order to 
meet a schedule that would allow for issuance of QS for the 2005 Fall 
crab fisheries, NMFS proposes that ECCs designate the entity to 
represent them within 30 days of the publication of the final rule 
which implements the Program. This time frame still would allow a 
60[hyphen]day period for processors to enter into contracts prior to 
submission of their application for PQS. An application for PQS would 
not be considered complete until it is accompanied by a valid contract 
signed by the applicant for initial issuance of PQS and the ECC entity.
    To exercise a ROFR, an ECC would be required to meet all of the 
terms and conditions of the underlying transaction. As indicated above, 
the ROFR would be established by a contract to be entered into between 
the PQS holder receiving the allocation of PQS and the ECC entity. The 
applicant for PQS would be required to enter the

[[Page 63224]]

contract in order to receive the initial allocation of PQS by NMFS.
    The contracts establishing the ROFR for ECCs must include specified 
conditions set forth at Sec.  680.40(m). An explanation for each of 
these conditions is presented in section 3.6.2.2 of Appendix 1 to the 
EIS (see ADDRESSES). These conditions were developed by an ad hoc 
committee assigned by the Council to develop community protection 
measures and were ultimately adopted by the Council. They generally are 
intended to protect a balance between community and processor interests 
while providing some flexibility under contractual arrangements that 
would be enforced through civil contract law. NMFS does not intend to 
provide draft contractual language for purposes of ROFR; however, the 
agency would support the enforcement of some of the contract 
conditions, such as requiring signed contracts to be submitted as part 
of the application process for initial issuance of PQS. Similarly, NMFS 
would require the ECC entity as signatory on the contract to 
acknowledge in writing the community does not wish to exercise ROFR 
prior to agency approval of any transfer of PQS or IPQ. NMFS also could 
annually notify each ECC entity of the location where IPQs from the 
community were used and of any transfer of shares linked to the 
community. This notification could assist the community in tracking 
transfers and use of shares, thereby assisting the community efforts to 
enforce the ROFR. NMFS specifically requests comments on whether such 
notification would be helpful (see ADDRESSES).
    The Program would establish an additional ROFR provision for ECCs 
located in the northern GOA. The only ECC in this area is the combined 
City and Borough of Kodiak. Under this provision, the ECC entity 
representing Kodiak would have a ROFR to purchase PQS that is proposed 
to be transferred from non ECC communities located in the northern GOA. 
The terms and conditions supporting Kodiak's ROFR would be the same as 
those for the general ROFR provisions referenced above. Applicants for 
PQS in non ECC communities in the northern GOA would be required to 
enter into a contract with the ECC entity representing Kodiak and to 
submit a copy of a signed contract with their application for initial 
issuance of PQS. Subsequently, a holder of PQS in a non ECC community 
in the northern GOA who wishes to transfer PQS out of that community 
must provide NMFS with a written acknowledgment from the ECC entity 
representing Kodiak confirming that Kodiak does not wish to exercise 
ROFR prior to agency approval of transfer of PQS to a community other 
than Kodiak.
    The northern GOA ROFR provision is intended to provide Kodiak with 
a ROFR that would enable it to consolidate processing shares of non ECC 
communities in the northern GOA.

QS, PQS, IFQ, and IPQ Use Caps

    This proposed rule establishes use caps on the amount of QS, PQS, 
IFQ, and IPQ which may be held by a person and the amount of IFQ used 
on a vessel. Use caps would limit the degree of consolidation of QS and 
PQS holders and the numbers of vessels in the crab fisheries.

QS and IFQ Use Caps

    Use caps would be imposed on a person's holdings of QS. No person 
could use IFQ in excess of the amount of IFQ that is yielded from these 
QS caps unless that IFQ is derived from QS that was received by that 
person in the initial allocation of QS for that crab fishery. Different 
caps are chosen for the different fisheries because fleet 
characteristics and dependence differ across fisheries. Separate caps 
on QS holdings are established for CDQ groups. Also, separate caps 
would be established for persons who hold QS and PQS.
    Use caps on the amount of QS and IFQ a person may hold are based on 
the initial QS pools to provide greater stability for participants and 
to determine where their allocation is relative to the overall 
allocations. Because the QS pool would change over time, establishing a 
set pool early[hyphen]on would provide greater stability and would not 
require QS holders to divest themselves of QS should the quota pool 
change. The QS use caps in the halibut and sablefish IFQ program are 
set at a fixed amount of QS units, and a similar management approach is 
used to set use caps in this Program.
    A person who receives an initial allocation of QS that exceeds the 
use caps listed here is limited to hold no more than that amount. NMFS 
would not issue a person QS in excess of use caps based on QS derived 
from landings attributed to an LLP license obtained via transfer after 
June 10, 2002. This provision would prevent excessive consolidation 
prior to the issuance of QS through the trading of LLP licenses and 
their associated history.
    Non[hyphen]individuals holding QS would be required to provide, on 
an annual basis, ownership information as required by the Annual 
Application for Crab IFQ/IPQ Permit. Use caps would be applied both 
individually and collectively. Under this rule, all of a person's 
direct holdings of QS and IFQ would be credited toward the cap. In 
addition, a person's indirect holdings would be also credited toward 
the cap in proportion to the person's ownership interest. For example, 
if a person owns a 20 percent interest in a company that holds 100 QS 
units, that person is credited with holding 20 QS units for purposes of 
determining compliance with the cap.
    These caps would be applied in two steps. First, NMFS would use a 
threshold rule for determining whether the shares are held by a person. 
Second, NMFS would use the individual and collective rule for 
determining the extent of share ownership. Under the threshold rule, 
any entity with 10[hyphen]percent or more common ownership is 
considered to be an owner for purposes of determining this cap. Any 
direct holding of QS by those entities would be fully credited to the 
QS holder for purposes of establishing use caps. See the following 
table for details:

  Table 11--Use Caps on QS and IFQ Holdings for all Persons not Holding
                         PQS, and Non-CDQ Groups
------------------------------------------------------------------------
                                 CVO and CPO Use Cap    CVC and CPC Use
            Fishery                  in QS Units        Cap in QS Units
------------------------------------------------------------------------
1.0 percent of the initial QS    3,880,000            120,000
 pool for Bristol Bay red king
 crab
------------------------------------------------------------------------
1.0 percent of the initial QS    9,700,000            300,000
 pool for Bering Sea snow crab
------------------------------------------------------------------------
1.0 percent of the initial QS    1,940,000            60,000
 pool for Bering sea Tanner
 crab
------------------------------------------------------------------------
2.0 percent of the initial QS    582,000              18,000
 pool for Pribilof Islands red
 and blue king crab
------------------------------------------------------------------------

[[Page 63225]]

 
2.0 percent of the initial QS    582,000              18,000
 pool for St. Matthew blue king
 crab
------------------------------------------------------------------------
10.0 percent of the initial QS   970,000              30,000
 pool for Eastern Aleutian
 Islands golden king crab
------------------------------------------------------------------------
10.0 percent of the initial QS   3,880,000            120,000
 pool for Western Aleutian
 Islands golden king crab
------------------------------------------------------------------------
10.0 percent of the initial QS   5,820,000            180,000
 pool for Western Aleutian
 Islands golden king crab
------------------------------------------------------------------------

    The use cap limits for CDQ Groups are shown in the following table 
(Table 12). The QS and IFQ use caps in Table 12 apply to a CDQ group 
regardless of whether the CDQ holds PQS and QS. No CDQ group could use 
IFQ in excess of the amount of IFQ that is yielded from these QS caps 
unless that IFQ is derived from QS that was received by that CDQ group 
in the initial allocation of QS for that crab fishery.

        Table 12--Use Caps on QS and IFQ Holdings for CDQ Groups
------------------------------------------------------------------------
                                           CDQ CVO and CPO Use Cap in QS
                 Fishery                               Units
------------------------------------------------------------------------
5.0 percent of the initial QS pool for     19,400,000
 Bristol Bay red king crab
------------------------------------------------------------------------
5.0 percent of the initial QS pool for     48,500,000
 Bering Sea snow crab
------------------------------------------------------------------------
5.0 percent of the initial QS pool for     9,700,000
 Bering sea Tanner crab
------------------------------------------------------------------------
10.0 percent of the initial QS pool for    2,910,000
 Pribilof Islands red and blue king crab
------------------------------------------------------------------------
10.0 percent of the initial QS pool for    2,910,000
 St. Matthew blue king crab
------------------------------------------------------------------------
20.0 percent of the initial QS pool for    1,940,000
 Eastern Aleutian Islands golden king
 crab
------------------------------------------------------------------------
20.0 percent of the initial QS pool for    7,760,000
 Western Aleutian Islands golden king
 crab
------------------------------------------------------------------------
20.0 percent of the initial QS pool for    11,640,000
 Western Aleutian Islands golden king
 crab
------------------------------------------------------------------------

    No person who holds QS and PQS could use IFQ in excess of the 
amount of IFQ that is yielded from these QS caps unless that IFQ is 
derived from QS that was received by that person in the initial 
allocation of QS for that crab fishery. The use cap limits for PQS 
holders who also hold QS are shown in the following table:

  Table 13--Use Caps on QS and IFQ Holdings for Persons who Hold QS and
                                   PQS
------------------------------------------------------------------------
                                 CVO and CPO Use Cap    CVC and CPC Use
            Fishery                  in QS Units        Cap in QS Units
------------------------------------------------------------------------
5.0 percent of the initial QS    19,400,000           600,000
 pool for Bristol Bay red king
 crab
------------------------------------------------------------------------
5.0 percent of the initial QS    48,500,000           1,500,000
 pool for Bering Sea snow crab
------------------------------------------------------------------------
5.0 percent of the initial QS    9,700,000            300,000
 pool for Bering sea Tanner
 crab
------------------------------------------------------------------------
5.0 percent of the initial QS    1,455,000            45,000
 pool for Pribilof Islands red
 and blue king crab
------------------------------------------------------------------------
5.0 percent of the initial QS    1,455,000            45,000
 pool for St. Matthew blue king
 crab
------------------------------------------------------------------------
5.0 percent of the initial QS    485,000              15,000
 pool for Eastern Aleutian
 Islands golden king crab
------------------------------------------------------------------------
5.0 percent of the initial QS    1,940,000            60,000
 pool for Western Aleutian
 Islands golden king crab
------------------------------------------------------------------------
5.0 percent of the initial QS    2,910,000            90,000
 pool for Western Aleutian
 Islands golden king crab
------------------------------------------------------------------------


[[Page 63226]]

    CVC and CPC QS and IFQ use is capped based on the QS and IFQ pool 
that is issued to those QS sectors, not as a percentage of the whole QS 
pool, or TAC issued for that fishery for that year. The effect is that 
the use caps are set at the percentage of the QS pool for that sector. 
This is intended to preserve the goals of CVC and CPC QS and IFQ 
allocations as a means to provide participation for crew members and 
limit consolidation in crew employment.

PQS Use Caps

    A person may not use more than 30 percent of the initial PQS pool 
in any crab fishery unless that person received an initial allocation 
of PQS in excess of this limit. A person would not be issued PQS in 
excess of the use caps based on processing history transferred after 
June 10, 2002, the same date for limiting the QS use caps. This would 
limit the consolidation that could occur prior to the implementation of 
this Program, thereby frustrating the goals of a use cap limitation.
    As with vertical integration caps, PQS use caps would be applied 
using a threshold rule for determining whether the shares are held by a 
processor and then the individual and collective rule for determining 
the extent of share ownership. Under the threshold rule, any entity 
with 10 percent or more common ownership with a processor is considered 
to be a part of that processor. Any direct holdings of those entities 
would be fully credited to the processor's holdings. Indirect holdings 
of those entities would be credited toward the processor's cap in 
proportion to the entity's ownership.

IPQ Use Caps

    IPQs would be capped at the same levels as those for the PQS, and 
the same would be established using the same threshold rule for 
determining the amount of PQS held by a person. In addition to this 
general use cap, two other provisions would apply to IPQs. In addition 
to the overall 30 percent PQS use cap, in the Bering Sea snow crab 
fishery no person would be permitted to hold in excess of 60 percent of 
the IPQ issued with a North region designation for that fishery.
    A further restriction would exist, which limits the annual 
allocation of IPQs in seasons when the TAC exceeds a threshold amount 
in two fisheries. In the Bristol Bay red king crab fishery, IPQs would 
not be issued for the amount of the TAC in excess of 20 million pounds 
(9,072 mt). In the Bering Sea snow crab fishery, IPQs would not be 
issued for the amount of the TAC in excess of 175 million pounds 
(79,379 mt). Any Class A IFQ issued in excess of the threshold would 
not be required to be delivered to an RCR with unused IPQ, but it would 
be subject to the regional landing requirements. This Class A IFQ would 
be distributed among users based on their QS holdings.

Vessel Use Caps

    The amount of CVO or CPO IFQ that could be used on any one vessel 
during a crab fishing year would be limited. This vessel use limit 
would apply for all vessels, except for vessels that participate solely 
in a crab harvesting cooperative. A vessel could not harvest crab in 
excess of the following percentages of the TAC for that crab fishery 
for that crab fishing year: (1) 2 percent of the TAC for the Bering Sea 
snow crab, Bristol Bay red king crab, and Bering Sea tanner crab 
fisheries; (2) 4 percent of the TAC for the Pribilof Islands red and 
blue king crab, and St. Matthew blue king crab fisheries; and (3) 20 
percent for Eastern Aleutian Islands golden king crab, Western Aleutian 
Islands golden king crab, and Western Aleutian Islands red king crab 
west of 179[deg] W. long.
    CVC or CPC QS used on a vessel would not be included in determining 
whether a vessel use cap is met. Crab that are allocated to the CDQ 
program or the Adak community entity would not be included in 
determining whether a vessel use cap is met.
    A person who receive an approval of IFQ allocation in excess of 
these vessel use caps may catch and retain all of that IFQ with a 
single vessel. However, two or more persons may not catch and retain 
their IFQs with one vessel in excess of these limitations.
    The vessel use cap would not apply to a vessel if all of the IFQ 
used on that vessel in a crab fishing year is IFQ held by a crab 
harvesting cooperative. This exemption does not apply if that vessel is 
used to harvest any amount of IFQ not held by a crab harvesting 
cooperative during the same crab fishing year.

Catcher/Processor Vessel Activity

    A person may purchase additional PQS for use on a CP vessel, but 
any crab processed with purchased PQS must be processed within three 
miles of shore in the region designated for that PQS. This effectively 
limits the use of PQS and the resulting IPQ to vessels that are 
operating as stationary floating crab processors.
    A vessel operating as a CP may not accept deliveries of Class B IFQ 
for processing. For purposes of this provision, any vessel that 
receives and processes crab harvested with Class B IFQ for processing 
during a season would be prohibited from acting as a CP during the 
remainder of the season, and any vessel that operates as a CP during a 
season would be prohibited from receiving and processing crab harvested 
with Class B IFQ during that season. This provision only applies for 
that crab fishery for that season. A vessel could operate as a CP in 
one crab fishery and receive crab harvested with Class B IFQ in another 
crab fishery.

QS Holder On Board Provisions

    A person holding CVC or CPC QS is required to be aboard the vessel 
upon which their IFQ is being harvested; unless the IFQ resulting from 
that QS has been: (1) leased to a qualified person; or (2) is used by a 
crab harvesting cooperative.
    A person holding CVO or CPO QS does not have to be aboard the 
vessel being used to harvest their IFQ if they hold at least a 10 
percent ownership interest in the vessel upon which the IFQ is to be 
harvested and are represented by a crab IFQ hired master employed by 
that QS holder.

Crab Harvesting Cooperatives

    Consistent with the Fishermen's Collective Marketing Act (FCMA, 15 
U.S.C. 521) and other applicable laws, including antitrust, QS holders 
may form voluntary crab harvesting cooperatives to combine and 
cooperatively manage their aggregate QS holdings. Each cooperative that 
is approved by NMFS would receive the amount of cooperative IFQ that 
would be yielded by the aggregate QS holdings of all of the members of 
the cooperative. The Program contains two primary incentives to 
encourage individual QS holders to join and participate in crab 
harvesting cooperatives. First, vessels fishing exclusively in 
cooperatives would be exempt from the vessel use caps that restrict 
vessels that harvest individually[hyphen]held IFQ. Second, beginning in 
the sixth year of the program, only leasing within cooperatives or 
between cooperatives would be allowed. The proposed regulations at 
Sec.  680.21 set out the provisions governing the formation and 
operation of crab harvesting cooperatives.

Membership Requirements

    Under the Program, a minimum membership of four unique QS holders 
would be required for cooperative formation. The language of Amendment 
18 explicitly states that the four or more unique members of a crab 
harvesting cooperative are to be harvester QS holders engaged in one or 
more crab

[[Page 63227]]

fisheries. Therefore, the proposed regulations concerning membership 
requirements for a crab harvesting cooperative require that members of 
a cooperative be QS holders. However, there is no explicit language in 
Amendment 18 as to whether QS holders who also hold PQS or IPQ, or are 
affiliated with persons who hold PQS or IPQ, may be members of a crab 
harvesting cooperative. NMFS considered this issue in developing the 
proposed rule and, for the reasons set forth below, proposes that QS 
holders who also hold PQS or IPQ or are affiliated with persons who 
hold PQS or IPQ be prohibited from joining a crab harvesting 
cooperative.
    Section 313(j)(6) of the Magnuson[hyphen]Stevens Act (16 U.S.C. 
1862(j)(6)) states that ``Nothing in [the Magnuson[hyphen]Stevens Act] 
shall constitute a waiver, either express or implied, of the antitrust 
laws of the United States.'' However, the FCMA was enacted to provide 
exemptions from antitrust liability for certain activities by 
associations of qualified members. The FCMA reads as follows:
    Sec. 521. Fishing industry; associations authorized; ``aquatic 
products'' defined; marketing agencies; requirements
    Persons engaged in the fishery industry, as fishermen, catching, 
collecting, or cultivating aquatic products, or as planters of 
aquatic products on public or private beds, may act together in 
associations, corporate or otherwise, with or without capital stock, 
in collectively catching, producing, preparing for market, 
processing, handling, and marketing in interstate and foreign 
commerce, such products of said persons so engaged.
    The term ``aquatic products'' includes all commercial products 
of aquatic life in both fresh and salt water, as carried on in the 
several States, the District of Columbia, the several Territories of 
the United States, the insular possessions, or other places under 
the jurisdiction of the United States.
    Such associations may have marketing agencies in common, and 
such associations and their members may make the necessary contracts 
and agreements to effect such purposes: Provided, however, That such 
associations are operated for the mutual benefit of the members 
thereof, and conform to one or both of the following requirements:
    First. That no member of the association is allowed more than 
one vote because of the amount of stock or membership capital he may 
own
    therein; or
    Second. That the association does not pay dividends on stock or 
membership capital in excess of 8 per centum per annum.
    and in any case to the following:
    Third. That the association shall not deal in the products of 
nonmembers to an amount greater in value than such as are handled by 
it for members.
    The FCMA, enacted in 1934, permits persons engaged in the fishing 
industry, as fishermen that catch, collect, or cultivate aquatic 
products or as planters of aquatic products, to act together in 
associations (cooperatives) for the purposes listed. The FCMA extended 
to the fishing industry the exemption from the operation of antitrust 
laws that is granted to agricultural cooperatives in the Clayton Act 
(15 U.S.C. 17) and the Capper[hyphen]Volstead Act (7 U.S.C. 291, et 
seq.). The intent of the FCMA is to provide fishermen, acting through 
fishery cooperatives, an opportunity to compete on the same basis as 
may an individual corporation. Because there is no waiver of antitrust 
laws in the Magnuson[hyphen]Stevens Act and because the only exemption 
from antitrust law for fishing cooperatives is provided by the FCMA, 
crab harvesting cooperatives are required to be organized and operate 
in a manner that is consistent with requirements of the FCMA and the 
proposed rule contains a provision reflecting this requirement.
    According to the case law that has developed under the 
Capper[hyphen]Volstead Act and the FCMA (particularly National Broiler 
Marketing Assn. v. United States, 436 U.S. 816 (1978) and United States 
v. Hinote, 823 F. Supp. 1350 (S.D. Miss. 1993)), all members of an 
FCMA[hyphen]protected cooperative must be ``producers'' and any 
non[hyphen]producer participation in the control and policy making of a 
cooperative would disqualify the cooperative for exemption from 
antitrust law provided by the FCMA. While NMFS recognizes that there is 
some legal uncertainty as to whether members of a cooperative who 
participate in both production and processing would be considered 
``non[hyphen]producers,'' NMFS has determined that there is a 
significant likelihood that a crab harvesting cooperative that is 
permitted to include members that hold PQS or IPQ or process Class B 
IFQ, or who are affiliated with persons who hold PQS or IPQ or process 
Class B IFQ would be found to include non[hyphen]producer members and 
therefore would fail to have the protections from antitrust law 
afforded by the FCMA. Therefore, persons holding CVO, CVC, CPO, or CPC 
QS would be considered QS holders for purposes of crab harvesting 
cooperative formation. However, QS holders who also (1) hold PQS or 
IPQ, (2) are affiliated with a person who holds PQS or IPQ, (3) process 
Class B IFQ, or (4) are affiliated with a person that processes Class B 
IFQ would be prohibited from joining a crab harvesting cooperative.
    NMFS acknowledges that the proposed exclusion of QS holders that 
also hold PQS or IPQ or process Class B IFQ, or that are affiliated 
with persons that hold PQS or IPQ or process Class B IFQ from 
cooperative membership would deny these QS holders from taking 
advantage of the vessel use cap exemption that participation in a 
cooperative would afford. However, even if the proposed regulations 
permitted the membership of such persons in a cooperative, it is likely 
that such participation could be excluded through other means. 
Additionally, NMFS notes that although the proposed rule would not 
exclude CP QS holders from membership in crab harvesting cooperatives, 
the proposed rule would exclude CP QS holders that also hold PQS or IPQ 
or process Class B IFQ, or who are affiliated with persons that hold 
PQS or IPQ or process Class B IFQ from cooperative membership.
    The proposed regulations also would prohibit members of a 
cooperative, including CP QS holders, from acquiring PQS or IPQ during 
the valid duration of the cooperative IFQ permit. These measures are 
intended to minimize the risk of a finding that a crab harvesting 
cooperative's members were not ``producers'' as required by the FCMA. 
However, it is not clear that these limitations on membership and 
acquisition remove the risk entirely. NMFS stresses that although a 
crab harvesting cooperative may meet the regulatory requirements set 
for in Sec.  680.21, the cooperative may not satisfy all of the 
requirements for an FCMA cooperative. Persons wishing to form a crab 
harvesting cooperative are strongly encouraged to consult with experts 
in the field of antitrust.
    In addition to the requirement that crab harvesting cooperatives be 
organized according to the requirements of the FCMA, a cooperative also 
would be required to be formed as a legal business entity registered 
under the laws of one of the 50 states or the District of Columbia in 
order to be eligible for a cooperative IFQ permit issued by NMFS.
    Cooperative membership would be ``all or nothing'' in that each QS 
holder would be able to join only one crab harvesting cooperative at 
the beginning of each fishing year, and all QS held by each member 
would be converted to cooperative IFQ. A QS holder would be prohibited 
from joining more than one cooperative, and would be unable to allocate 
only a portion of his QS holdings to a cooperative and retain the 
remainder for conversion to individual IFQ for his own exclusive use.
    NMFS believes that because the proposed rule would allow 
unrestricted leasing between crab harvesting cooperatives, each 
cooperative would be

[[Page 63228]]

free to focus on harvesting IFQ for the fisheries of its choice. Thus, 
through leasing, cooperative members could realize the same benefits in 
being a member of one cooperative as they could in joining multiple 
cooperatives. Additionally, NMFS believes the ability to join multiple 
cooperatives would cause a potentially unmanageable number of 
cooperatives to be formed. NMFS is concerned that if membership is 
allowed in more than one cooperative, then it would be easy for QS 
holders to allocate a nominal amount of IFQ to a given cooperative and 
form what would be, in effect, single member cooperatives. This would 
undermine the Council's intent that each cooperative have at least four 
independent members. Also, NMFS is concerned that bycatch may increase 
if single[hyphen]species cooperatives are formed because the 
cooperative would have to discard all legal crab of species for which 
the cooperative does not have IFQ. Finally, cooperative management by 
its members is complex and technical, and NMFS is concerned that 
cooperative management would be diluted by members who have joined 
multiple cooperatives, and therefore, each cooperative would be less 
effective at managing the harvesting of the cooperative's IFQ. NMFS 
specifically requests public comment on whether QS holders should be 
able to join more than one cooperative relative to these assumptions 
and Council intent (see ADDRESSES).
    Membership in crab harvesting cooperatives would be voluntary. No 
QS holder would be required to join a cooperative to receive or harvest 
IFQ, and no cooperative would be required to accept as a member a QS 
holder that the cooperative does not wish to admit. Each member of a 
cooperative would be required to maintain their membership in the 
cooperative for the one[hyphen]year duration of the cooperative IFQ 
permit, or as long as they hold any amount of QS upon which the 
cooperative's IFQ permit is based. However a cooperative member would 
have an opportunity to leave their cooperative or change cooperatives 
each year during the annual application process.
    Members of a cooperative fishing under a cooperative IFQ permit 
would be governed by the same regulations that govern individuals 
fishing under an individual IFQ permit. The only persons eligible to 
fish for crab under a cooperative IFQ permit would be the members of 
the cooperative, or a crab IFQ hired master who is fishing on board a 
vessel that is affiliated with (i.e. owned or controlled) by a member 
of the cooperative. In addition, the members of a cooperative may be 
held liable for any violations of the regulations applicable to fishing 
for crab made by any person fishing under the cooperative.

Application for an Annual Crab Harvesting Cooperative IPQ Permit

    Cooperatives would be required to apply for a cooperative IFQ 
permit on an annual basis prior to July 1 of each year. If a 
cooperative's application is approved by NMFS, the cooperative would 
receive the sum of the annual IFQ allocations of its members in the 
form of a cooperative IFQ permit that is issued to the cooperative 
rather than the individual QS holders. Cooperative IFQ permits would 
maintain all of the region, species, and sector designations of the 
underlying QS held by the members of the cooperative with the following 
exception.
    CVC IFQ would lose their ``C'' designation (and associated holder 
on board and leasing restrictions) when converted to cooperative IFQ so 
that the CVC QS holders would be able to participate in cooperatives on 
an equal basis with other QS holders. This means CVC IFQ could be 
harvested by the cooperative without the CVC IFQ holder on board the 
vessel. NMFS has determined that this approach is necessary to allow 
the CVC QS holders to join and participate in cooperatives. The primary 
purpose of crab harvesting cooperatives is to allow crab fishermen to 
consolidate and collectively manage their QS holdings. If each 
cooperative is required to treat CVC IFQ separately from other types of 
IFQ, and if each CVC QS holder is required to be on board the vessel 
any time the cooperative's CVC IFQ are being fished, then CVC QS 
holders gain nothing from participating in a cooperative and would have 
incentives to avoid joining cooperatives. This is because CVC QS 
holders could otherwise retain their shares as individually[hyphen]held 
IFQ and fish their shares on board any vessel fishing for crab in the 
BSAI. Without the ability to participate fully in the cooperative, CVC 
QS holders would have no incentive to join any cooperative. In fact, 
they would have reasons to avoid joining cooperatives because they 
would gain no benefits from cooperative participation while at the same 
time subjecting themselves to the increased complexity and potential 
liability of participating in a cooperative.

Incentives to Join Crab Harvesting Cooperatives

    The Program provides two incentives for QS holders to join 
cooperatives. First, fishing vessels that are used to harvest 
cooperative IFQ exclusively and that do not harvest any amount of 
non[hyphen]cooperative[hyphen]held IFQ would be exempt from the vessel 
use caps that apply to vessels used to harvest 
non[hyphen]cooperative[hyphen]held IFQ. Second, beginning July 1, 2011, 
only cooperatives would be allowed to lease IFQ and leasing of IFQ by 
non[hyphen]cooperative IFQ holders would be prohibited.

Transfers of QS and IFQ by Members of a Cooperative

    The regulations governing the transfer of QS and IFQ would apply 
somewhat differently to members of a cooperative who wish to transfer 
QS and IFQ during the fishing season than they would to QS holders who 
are not members of a cooperative. This is because at the time a QS 
holder joins a cooperative, all of his or her QS would be converted to 
cooperative IFQ that is held in common by the cooperative. A member of 
a cooperative may buy or sell QS at any time during the fishing season 
or between seasons simply by following the general requirements for the 
transfer of QS at Sec.  680.41. A member of a cooperative also may 
obtain IFQ at any time by following the general requirements for the 
transfer of IFQ at Sec.  680.41 and may individually hold that IFQ or 
may transfer the IFQ to the member's cooperative. However, once a 
cooperative has been issued an IFQ permit, the members of that 
cooperative cannot transfer away IFQ because they hold no IFQ of their 
own. Only the cooperative may transfer away cooperative IFQ, and only 
by following the requirements for the transfer of cooperative IFQ at 
Sec.  680.41. Additionally, members of a cooperative would be 
prohibited from acquiring any amount of PQS or IPQ during the valid 
duration of the cooperative IFQ permit. The rational for this provision 
is provided under the discussion of cooperative membership 
requirements.
    A cooperative that has been issued cooperative IFQ is not allowed 
to hold QS directly, even though as a legal business entity, a 
cooperative would otherwise be eligible to acquire and hold QS. This 
prohibition on cooperatives holding QS is necessary to maintain the 
regulatory distinctions between non[hyphen]cooperative[hyphen]held IFQ 
and cooperative IFQ, and to simplify the administration of the Program.

Inseason Membership Changes

    Because cooperative IFQ permits are annual permits, and 
cooperatives are required to apply annually for each year's cooperative 
IFQ permit, any changes in cooperative membership that

[[Page 63229]]

occur between fishing seasons would simply be reflected in the 
following year's cooperative IFQ permit application. However, inseason 
transfers of QS by members of a cooperative may result in the situation 
where a current member of the cooperative no longer holds QS and/or a 
new person holds QS that has been allocated to the cooperative in the 
form of IFQ. If this occurs, then the cooperative has the option of 
amending its membership to add or remove members through the submission 
of an amended cooperative IFQ permit application. If the cooperative 
chooses to amend its membership during the fishing season, then the 
cooperative would be required to submit to NMFS an amended application 
for cooperative IFQ reflecting the membership change. If the change to 
cooperative membership is approved, NMFS would issue an amended IFQ 
permit application to the cooperative reflecting the change in 
membership. The same process may be used by a cooperative to 
accommodate the rights of a successor in interest in the event that a 
member dies (in the case of an individual), or dissolves (in the case 
of a business entity).
    Each cooperative would be free to develop its own procedures for 
dealing with inseason membership changes. Cooperatives may choose to 
grant automatic membership to persons who obtain QS through purchase or 
as successors[hyphen]in[hyphen]interest to a member that died. 
Conversely, they may establish their own procedures for deciding 
whether to admit new members on an inseason basis. However a 
cooperative decides to address the issue of inseason membership changes 
a cooperative would not be required by NMFS to grant membership to a QS 
holder with whom it does not wish to associate, regardless of how that 
person acquired the QS in question. It is important to note that the 
inseason membership process could not be used by a cooperative for 
inseason expulsions of a member who holds QS that is allocated to the 
cooperative in the form of IFQ. If a cooperative wishes to expel a 
member that holds QS upon which the cooperative's IFQ is based, it must 
wait until the end of the fishing year. In addition, this inseason 
process could not be used to add a member that has not obtained QS that 
is allocated to the cooperative in the form of IFQ. These two types of 
membership changes can only be accomplished between fishing years 
through the annual permit application process.

Protections for GOA Groundfish Fisheries

    Protections, called sideboards limits, restrict the ability of 
vessels with Bering Sea snow crab fishing history to participate in GOA 
groundfish fisheries. The purpose of the proposed sideboard limits is 
to prevent vessels that traditionally participated in the Bering Sea 
snow crab fishery from using the flexibility of the Program to increase 
their level of participation in the GOA groundfish fisheries, and 
primarily the GOA Pacific cod fishery. Historically, the Bering Sea 
snow crab fishery and GOA groundfish fisheries operated concurrently 
from January through March, meaning that a crab vessel owner had to 
decide whether to fish for Bering Sea snow crab or GOA groundfish but 
could not participate fully in both fisheries. With crab 
rationalization, vessel owners have the flexibility to fish for snow 
crab whenever they want, or to lease their crab IFQ and not fish at 
all. This increased flexibility for crab fishermen could lead to 
increases in fishing effort in GOA groundfish fisheries, especially the 
Pacific cod fishery, which is the primary groundfish target species for 
pot vessels, negatively affecting the other participants in those 
fisheries. This concern about spillover effects is limited primarily to 
the GOA where the Pacific cod TAC is not allocated among gear types. In 
the BSAI, most of the Pacific cod TAC is allocated to vessels using 
longline and trawl gear and LLP license restrictions prevent the entry 
of new pot vessels into the BSAI Pacific cod fishery, meaning that snow 
crab fishermen who wish to increase their groundfish fishing activity 
would need to look primarily to the GOA Pacific cod fishery.
    The GOA groundfish sideboard restrictions would apply to any 
non[hyphen]AFA crab vessel with a fishing history that generated any 
amount of Bering Sea snow crab QS, and to any LLP licenses earned in 
whole or in part by the crab fishing history of such vessels. Because 
AFA catcher vessels are already subject to sideboard restrictions in 
the GOA under the implementing regulations for the AFA, no additional 
restrictions for AFA catcher vessels with snow crab history are 
proposed here. Those snow crab vessels subject to GOA groundfish 
sideboard restrictions would be limited, in the aggregate, from 
harvesting an amount of each GOA groundfish species that exceeds the 
percentage of each species that such vessels retained, in the 
aggregate, from 1996 to 2000 relative to the total retained catch of 
each species by all groundfish vessels during the same period. The 
sideboard restrictions are also apportioned by season and/or area for 
each GOA groundfish TAC that is apportioned by season or area.
    There are some additional sideboard restrictions and exemptions for 
GOA Pacific cod that do not apply to other GOA groundfish species. 
Specifically, any vessel subject to GOA groundfish sideboards that 
landed less than 50 mt (110,231 lb) of GOA groundfish between 1996 and 
2000 would be prohibited from engaging in directed fishing for Pacific 
cod at all times. Additionally, any vessel that landed less than 
100,000 pounds (45.4 mt) of Bering Sea snow crab and more than 500 mt 
(1,102,311 lb) of GOA Pacific cod between 1996 and 2000 would be exempt 
from the GOA Pacific cod sideboard restrictions. NMFS would notify all 
persons who own a vessel or hold a LLP license as to whether they are 
subject to the sideboard restrictions by issuing amended Federal 
fisheries permits and LLP licenses to each affected vessel owner or LLP 
license holder. The amended Federal fisheries permits and LLP licenses 
would display the type of sideboard restriction on the face of the 
permit or license.

Arbitration System

    The Council developed the Arbitration System to compensate for 
complications arising from the creation of both QS/IFQ and PQS/IPQ. 
These complications include price negotiations that could continue 
indefinitely and result in costly delays, and the ``last person 
standing'' problem where the last parties to contract will have a 
single market for their product or service. The Arbitration System is 
designed to alleviate many of the concerns arising from the parity of 
supply and demand under the Program. If an IPQ holder or IFQ holder 
were unable to reach an agreement on price during open negotiations, 
the negotiation approaches prescribed in the proposed regulations could 
be used by certain participants to settle their disputes. This also 
encourages more efficient negotiations by preventing indefinite 
stalemates.
    The Council, along with considerable input from the potential 
participants, developed the Arbitration System to accommodate the 
varied interests of the parties involved as well as reflect the 
historical negotiations between harvesters and processors. The 
Arbitration System identifies the general structure of the system and 
the general principles that guide oversight and management. It also 
identifies the roles and fundamental standards for the

[[Page 63230]]

Market Analyst in developing and producing a preseason Market Report 
for each fishery, the Formula Arbitrator in developing a single annual 
fleet[hyphen]wide pricing formula (non[hyphen]binding price formula), 
the Contract Arbitrators in making decisions, and the last best offer 
binding arbitration method as the arbitration procedure for 
participants.
    Section 313(j)(6) of the Magnuson[hyphen]Stevens Act, as amended by 
section 801 of Pub. L. 108[hyphen]199, stipulates that the legislation 
does not provide any exemption to the antitrust laws. To the extent the 
Arbitration System, as approved by the Council, would have permitted 
actions that put the participants at risk of subjecting themselves to 
antitrust liability, the Council approved minor changes, primarily to 
address information exchanges that could have occurred under the 
Arbitration System as originally approved. At its June 2004, meeting, 
the Council adopted changes to the Arbitration System for approval by 
January 1, 2005. The Council's changes are in Amendment 19 to the FMP 
and would be implemented by these proposed regulations.

Council[hyphen]Approved Changes to the Arbitration System

    First, the Council eliminated a provision that would have allowed 
PQS or IPQ holders to participate in common discussions concerning 
historical prices in the fisheries. The intent of the provision was to 
facilitate the development of information about historic division of 
revenues, which is one of the primary bases upon which the Formula 
Arbitrator establishes the non[hyphen]binding price formula and upon 
which the Contract Arbitrators will base a decision. The only 
limitation upon PQS or IPQ holders was that the discussion would be 
about historical prices. The provision, however, could have allowed PQS 
or IPQ holders to engage in collective, direct discussions regarding 
pricing information. The potential anticompetitive risks associated 
with encouraging competitors to discuss pricing information, even 
historical information, was too great. There was a high probability 
that competitors could move beyond discussions on strictly 
``historical'' information. Moreover, the availability of pricing 
information facilitates collusion, especially when the processors will 
be identified with the prices they charge. Further, information about 
historical prices could be generated through other means, such as 
information provided to the Market Analyst.
    Second, the Council adopted changes to limit access of parties to 
an arbitration proceeding to information provided directly by them to 
the Contract Arbitrator in the proceeding in which they participate. 
The Program originally provided all participants in an arbitration 
access to all information provided to their Contract Arbitrator, which 
could include information provided to other Contract Arbitrators in 
binding arbitration proceedings to assist them in reaching decisions. 
This provision could have allowed participants to access pricing and 
other competitively sensitive information submitted to a Contract 
Arbitrator by every Arbitration IFQ holder and IPQ holder during all 
prior arbitration proceedings. Accordingly, it presented a serious 
antitrust risk. Under the antitrust immunity provided by the FCMA, a 
crab harvesting cooperative or members of a cooperative could share 
sensitive competitive information with other members of the same 
cooperative, but the arbitrator would not be the person to disseminate 
such information. All participants in an arbitration proceeding would 
be required to sign a confidentiality agreement stating they would not 
disclose any information received from the Contract Arbitrator.
    Third, the Arbitration System permitted harvesters to act 
collectively during binding arbitration to the extent permitted by the 
FCMA. The FCMA authorizes the establishment of cooperatives comprised 
of fishermen. Pursuant to the FCMA, cooperative members may freely 
exchange information, agree among themselves on the price they will 
accept for their products, bargain jointly and agree on the basis for 
negotiations without risking antitrust liability. If the cooperative or 
members of the cooperative share sensitive competitive information or 
attempt to collaborate with non[hyphen]member harvesters on any issues 
relating to price or costs, they would risk antitrust liability. The 
Council adopted a change to clarify that IFQ holders that are members 
of a FCMA crab harvesting cooperative can participate collectively as a 
member of that FCMA cooperative in binding arbitration and that 
non[hyphen]member harvesters cannot participate collectively with 
cooperative members during the arbitration procedures.
    The proposed rule would clearly prohibit crab harvesting 
cooperative members from sharing sensitive competitive information or 
any issues relating to costs or price or collaborate with nonmembers at 
any stage of the arbitration proceedings without risking antitrust 
liability. Moreover, the proposed rule would prohibit collaboration 
among members of different FCMA cooperatives for purposes other than 
nominating and selecting the arbitrators and market analysts to avoid 
behavior that is outside the scope of the antitrust immunity provided 
by the FCMA.
    Fourth, the Council eliminated a provision that required the Market 
Analyst to survey the crab product throughout the year and periodically 
publish prices in the crab product market. The periodic announcement of 
prices presented a serious antitrust risk since it could provide a way 
of matching up prices with individual market participants. To the 
extent the information about product prices is necessary for the 
Formula and Contract Arbitrators to perform their functions, they will 
have it from other sources. The more frequent the periodic price 
updates, the smaller would be the number of IFQ and IPQ holders as well 
as distributors or customers generating the composite price that was 
reported. Aggregation would have been less effective and if market 
participants could know or learn which particular IPQ and IFQ holders 
had completed negotiations or arbitrations during a particular survey 
period, then it could be difficult to ensure price anonymity.
    The announcement of recent prices and the lack of anonymity could 
have made it easier for IPQ holders to arrive at agreements to set 
prices and for IPQ holders to enforce the agreements. Under the 
proposed rule, the Market Analyst would prepare only one annual Market 
Report for each fishery and would be prohibited from issuing interim or 
supplemental reports for each fishery.
    Fifth, the Council changed the Arbitration System to limit the 
announcement of the results of each arbitration decision as it occurs 
to an IPQ holder and IFQ holders in that particular arbitration as well 
as to IFQ holders that are not affiliated and have not committed to an 
IPQ holder and who may want to opt[hyphen]in to a previously completed 
contract. The Program would have allowed the public announcement of the 
outcome of each binding arbitration proceeding to inform IFQ holders 
with uncommitted IFQ so they could decide whether to opt into the 
completed contract. The provision raised antitrust concerns. If the 
results of an arbitration decision were announced before all binding 
arbitration proceedings were completed, they could influence what was 
asked by the parties in a subsequent arbitration, resulting in price 
stabilization. The change allows disclosure of all arbitration 
decisions to

[[Page 63231]]

the Contract Arbitrators and to non[hyphen]affiliated IFQ holders who 
have not committed to an IPQ holder. The parties to an arbitration 
would be required to agree to make the terms and conditions of the 
arbitration decision available to non[hyphen]affiliated uncommitted IFQ 
holders.

Arbitration System Requirements

    The Council intended the Arbitration System to function as an 
``industry[hyphen]run'' system with minimal involvement by NMFS. The 
Program establishes a structure for the negotiation of price, delivery 
and other contract terms between an IPQ holder and IFQ holders. It 
specifies the basic elements of the Arbitration System: the standards 
for arbitration; the roles of the Market Analyst, Formula Arbitrator 
and Contract Arbitrators; the data available to the Market Analyst and 
Arbitrators; restrictions on participation by PQS and IPQ holders 
(processors) and IFQ holders that are affiliated with PQS and IPQ 
holders (processor[hyphen]affiliates); last best offer binding 
arbitration procedures; and payment for the system. The Program also 
specifies that processor[hyphen]affiliated shares can participate to 
the extent allowed under the antitrust laws and that processors can 
participate individually and not collectively, except in the choice of 
the Market Analyst and the Arbitrators. The Arbitration System also is 
mandatory for all IPQ and IFQ holders participating in the Program.
    First, at any time prior to the season opening date, IPQ and IFQ 
holders can initiate discussions through open negotiations. Open 
negotiation is available to both affiliated and non[hyphen]affiliated 
IFQ holders and all IPQ holders. If they are unable to conclude a 
contract through open negotiations, eligible persons, as defined by the 
proposed rule, may use several other negotiation approaches to reach 
agreement, including share[hyphen]matching, mediation and binding 
arbitration procedures.
    The negotiation approaches and Binding Arbitration procedure are 
limited to IPQ holders and Arbitration IFQ holders. Under the proposed 
rule, Arbitration IFQ means: (a) Class A CVO IFQ held by a person who 
is not a holder of PQS or IPQ and who is not affiliated with any holder 
of PQS or IPQ; (b) prior to July 1, 2008, CVC IFQ held by a person who 
is not a holder of PQS or IPQ and who is not affiliated with any holder 
of PQS or IPQ that the holder has elected to submit to the Arbitration 
System; (c) after July 1, 2008, Class A CVC IFQ held by a person who is 
not a holder of PQS or IPQ and is not affiliated with any holder of PQS 
or IPQ; and (d) IFQ held by a crab harvesting cooperative as long as no 
member of such cooperative holds PQS or IPQ or is affiliated with a 
person who holds PQS or IPQ.
    Under the proposed rule, the structure of the Arbitration System 
would be managed and carried out primarily by the participants in the 
crab fisheries through contractual arrangements, with NMFS oversight. 
The proposed rule would require that participants in the crab fisheries 
join and maintain membership in an Arbitration Organization. The 
persons who are eligible to join an Arbitration Organization are: (a) 
holders of CVO and CVC QS; (b) holders of PQS; (c) holders of 
Arbitration IFQ, (d) holders of Class A IFQ affiliated with a PQS or 
IPQ holder; and (e) holders of IPQ.
    While the Program does not require the establishment of arbitration 
organizations and membership in such organizations, NMFS believes the 
structure is necessary to facilitate the industry's ability to 
coordinate among its members and carry out the Council's intent to 
establish the Arbitration System primarily as an 
``industry[hyphen]run'' system. This approach also facilitates the 
ability of NMFS to monitor the activities of members more efficiently 
and effectively than monitoring numerous contracts among unique quota 
holders. NMFS believes industry participants will have sufficient 
interest in establishing the arbitration organizations, agreeing to the 
contracts, and selecting the Market Analysts, Formula Arbitrators and 
Contract Arbitrators necessary for the Arbitration System to function. 
NMFS particularly invites public comment on the feasibility of basing 
the structure of the Arbitration System upon intra[hyphen]industry 
contracts.
    To minimize antitrust risks, this proposed rule would not allow 
harvesters and processors to be members of the same Arbitration 
Organization. The proposed rule would require that PQS and IPQ holders 
and QS and IFQ holders must be members of different arbitration 
organizations. Holders of PQS or IPQ could only be a member of a PQS/
IPQ Arbitration Organization, and they may join separate such 
organizations. Holders of QS or IFQ who neither hold nor are affiliated 
with a person who holds PQS or IPQ could only be a member of an 
Arbitration QS/IFQ Arbitration Organization, and they may join separate 
such organizations. Holders of QS or IFQ who are affiliated with a 
person who holds PQS or IPQ could only be a member of an Affiliated QS/
IFQ Arbitration Organization, and they may join separate such 
organizations. There could be Arbitration Organizations comprised 
solely of members who hold QS or IFQ or PQS or IPQ.
    Under the proposed rule, the Arbitration QS/IFQ Arbitration 
Organizations and PQS/IPQ Arbitration Organizations would be 
responsible for nominating and mutually selecting persons for the 
positions of Market Analyst, Formula Arbitrators, and Contract 
Arbitrators and establishing contracts with such persons. The contracts 
would stipulate the functions and obligations of those positions 
consistent with the roles and standards for the Market Analyst, Formula 
Arbitrator, and Contract Arbitrators, as specified by the Program and 
reflected in the proposed rule. They also would provide certain 
information to NMFS. All arbitration organizations, among other 
matters, would be responsible for ensuring the collection and payment 
of all fees required to fund the Arbitration System; providing 
information to their members, such as copies of the contracts with the 
Market Analyst, Formula Arbitrator and Contract Arbitrators; and 
enforcing the terms of various contracts to which they are a party. The 
Arbitration Organizations would be prohibited from engaging in any 
contract negotiations on behalf of their members except to the degree 
necessary to hire the Market Analyst, Formula Arbitrator, and Contract 
Arbitrators. This is not intended to prohibit the members of an 
Arbitration IFQ Arbitration Organization from negotiating as a crab 
harvesting cooperative under the FCMA.

Arbitration Standard

    Reflecting the economic reality faced by both harvesters and 
processors, the Council determined that preserving the historical 
division of revenues in the fisheries in order to protect the 
investment and reliance of the harvesters and processors should guide 
the Arbitration System. The Program requires the Market Analyst, 
Formula Arbitrator and Contract Arbitrators, in developing the 
non[hyphen]binding price formula and deciding an individual 
arbitration, to consider: (1) current pricing; (2) consumer and 
wholesale product prices; (3) innovations and developments of the 
different sectors; (4) efficiency and productivity of the different 
sectors; (5) quality standards for each market; (6) maintaining 
financially healthy and stable harvesting and processing sectors; (7) 
safety; (8) the timing and location of deliveries; and (9) reasonable 
underages to avoid

[[Page 63232]]

penalties for overharvesting IFQ and reasonable deadloss.
    Under the proposed rule, the Arbitration System would commence 
preseason when the Arbitration QS Arbitration Organizations and the PQS 
Arbitration Organizations nominate persons for the positions of Market 
Analyst, Formula Arbitrator, and Contract Arbitrators. The PQS and QS 
holders, who are members of their respective Arbitration Organizations, 
then choose, by mutual agreement, the persons for these positions.
    NMFS has interpreted ``mutual agreement'' to mean the agreement of 
not less than 50 percent of the PQS holders and not less than 50 
percent of the QS holders in a fishery. This standard does not require 
complete consensus, but requires a majority of harvesters and 
processors to agree on specific individuals. This approach increases 
the likelihood of the selection of Market Analysts, Formula 
Arbitrators, and Contract Arbitrators who are acceptable to the 
majority of participants. Because the selection of the Market Analyst, 
Formula Arbitrator, and Contract Arbitrators is critical to the 
effective implementation of the Arbitration System, the standard for 
the selection process should not be so stringent so as to prevent the 
possibility of actually selecting a mutually acceptable Market Analyst, 
Formula Arbitrator, and Contract Arbitrators.
    To ensure the market analyses and pricing formula are available to 
inform all negotiation among the IFQ and IPQ holders, the Arbitration 
QS/IFQ Arbitration Organizations and PQS/IPQ Arbitration Organizations 
would mutually agree through their contract to notify NMFS of the 
selection of the Market Analysts, Formula Arbitrator and Contract 
Arbitrators by June 1 for that crab fishing year, except during 2005, 
they would be required to notify NMFS by July 1, 2005. The proposed 
rule reflects the Program in that the same person could be selected as 
Market Analyst and Formula Arbitrator; but the Contract Arbitrators 
could not be the same person as the Market Analyst and Formula 
Arbitrator, and could not be employed or associated with those persons.

Market Report

    The Program requires the promulgation of a preseason Market Report 
for each crab fishery to help inform all negotiations among all IPQ and 
IFQ holders. The Market Report would be produced annually by a Market 
Analyst selected jointly by the arbitration organizations. It would 
provide an analysis of the market based on a survey of the market for 
crab products from that fishery as well as information provided by the 
IPQ and IFQ holders.
    NMFS recognized the potential antitrust risk involved in exchanges 
of cost and price information, and so the proposed rule requires that 
the information provided by the participants must be historical in 
nature and that the Market Report cannot identify which participants 
provided specific information. These requirements are consistent with 
the U.S. Department of Justice and Federal Trade Commission Statements 
of Antitrust Enforcement Policy in Health Care (1966) (Guidelines). The 
Guidelines create an antitrust ``safety zone'' around the exchange of 
cost and price information when (1) the collection of the data is 
managed by a third party, including a government agency; (2) the 
information shared is based on information more than three months old; 
and (3) there are at least five providers reporting data such that 
recipients would be unable to identify the prices charged by any 
particular firm. In adhering to the Guidelines, the proposed 
regulations require that the IFQ holders and IPQ holders would give 
information directly to the Market Analyst and not to any other IPQ 
holder or IFQ holder, except that IFQ holders who are members of any 
single crab harvesting cooperative may share such information with 
other members of the same crab harvesting cooperative who are 
authorized to participate in the Arbitration System, that the 
information provided would be more than three months old, and the 
information and data would be aggregated in the report so that prices 
would not be identifiable with the person offering the price.
    The Market Report could include information that is provided 
through surveys, directly from IFQ and IPQ holders, and from other 
sources that voluntarily provide data. The Market Analyst would not 
have subpoena power to obtain information. The Market Analyst could 
meet with crab harvesting cooperative members collectively, but would 
have to meet individually with: (a) IPQ holders; (b) distinct crab 
harvesting cooperatives; and (c) IFQ holders who are not members of the 
same crab harvesting cooperative. The proposed rule prohibits the 
Market Analyst from disclosing any information to any person except as 
allowed by the requirements of the contract. The contract with the 
Market Analyst would specify that the Market Analyst will provide the 
Market Report not later than 50 days prior to the first crab fishing 
season for that crab QS fishery in that crab fishing year to each 
Arbitration Organization in that fishery and NMFS.

Non[hyphen]binding Price Formula

    To further guide the negotiations among all IFQ and IPQ holders, 
the proposed rule would mirror the Program by requiring the development 
and announcement of a non[hyphen]binding pricing formula. Under the 
proposed rule, the Arbitration QS Arbitration Organizations and the PQS 
Arbitration Organizations contract with a Formula Arbitrator to develop 
a non[hyphen]binding price formula. The contract would specify that the 
Formula Arbitrator must conduct a single annual fleet[hyphen]wide 
analysis of arbitrations to establish a non[hyphen]binding pricing 
formula under which a fraction of the weighted average first wholesale 
prices for crab products from each fishery may be used to set an 
ex[hyphen]vessel price. The contract also would require that the 
non[hyphen]binding price formula: (a) must be based upon the historical 
distribution of first wholesale revenues between fishermen and 
processors in the aggregate based on arm's length first wholesale 
prices and ex[hyphen]vessel prices, taking into consideration the size 
of the harvest in each year; and (b) must establish a price that 
preserves the historical division of revenues in the fishery while 
considering the nine factors described in the Arbitration Standard.
    The non[hyphen]binding pricing formula would be guided by the 
general factors for the fishery as well as arbitration decisions from 
the previous season. IPQ and IFQ holders could furnish relevant 
information and data upon the request of the Formula Arbitrator subject 
to the antitrust requirements that the information be historical and 
the persons submitting information should not be identified as having 
submitted specific information in the report. The contract would 
require the Formula Arbitrator to provide the non[hyphen]binding 
pricing formula not later than 50 days prior to the first crab fishing 
season for that crab QS fishery in that crab fishing year to each 
Arbitration Organization in that fishery and NMFS.

Open Negotiations

    The Program provides that prior to the crab fishing season, any IFQ 
holder can negotiate with any IPQ holder on price and delivery terms 
for the upcoming season. It allows the IFQ and IPQ holders to freely 
contact each other to initiate open negotiations. If they reach an 
agreement on all price and delivery terms during the preseason, a 
binding contract would result. Due to the limitations of the antitrust 
laws, IPQ

[[Page 63233]]

holders would be required to negotiate individually with IFQ holders, 
whereas IFQ holders who are members of the same crab harvesting 
cooperative can negotiate collectively with a single IPQ holder. An 
affiliated IFQ holder could negotiate during the open negotiations 
period, but individually, and not as part of a crab harvesting 
cooperative. The proposed rule provides the period of open negotiations 
would end at the date of the first crab fishing season for that crab QS 
fishery in that crab fishing year. In effect, this removes the ability 
of affiliated IFQ holders to negotiate contracts once the crab fishing 
season has begun because they cannot use the negotiation methods in the 
Arbitration System due to antitrust constraints.

Lengthy Season Approach

    Rather than mediate immediately during the preseason, the Program 
provides and the proposed rule would allow IPQ holders and Arbitration 
IFQ holders to choose to adopt a ``Lengthy Season'' approach and 
postpone negotiation of specific contract terms and binding arbitration 
until during the regular season. If the parties reach a final agreement 
on contract terms, binding arbitration is not necessary. If the parties 
are unable to reach an agreement on whether to adopt a Lengthy Season, 
they could request mediation or determine whether to adopt the 
approach. If mediation is unsuccessful, the parties enter binding 
arbitration to determine whether to adopt a Lengthy Season approach.

Share Matching Approach

    To facilitate the ability of Arbitration IFQ holders to find IPQ 
holders with available quota, the proposed rule implements the 
Program's provision for a share[hyphen]matching approach. Under the 
proposed rule, 25 days prior to the date of the first crab fishing 
season for that crab QS fishery in that crab fishing year, IPQ holders 
would be required to make known to holders of uncommitted Arbitration 
IFQ the amount of IPQ that is uncommitted and remains available. An 
uncommitted Arbitration IFQ holder could match up its uncommitted IFQ 
by indicating its intention to deliver its catch to a specific IPQ 
holder with sufficient available uncommitted IPQ.
    The Arbitration IFQ holder must offer the IPQ holder a substantial 
amount of the Arbitration IFQ holder's uncommitted IFQ. While the 
Program does not define ``substantial,'' the proposed rule defines 
``substantial'' as not less than 50 percent of the Arbitration IFQ 
holder's total uncommitted IFQ in order to prevent IPQ holders from 
potentially coordinating countless arbitration sessions. After 
matching, an Arbitration IFQ holder and IPQ holder could either 
arbitrate or, at the discretion of both parties, try to mediate to 
determine the contract terms. The Program and the proposed rule require 
the IPQ holder to accept all proposed matches up to the amount of its 
uncommitted IPQ.

Last Best Offer Binding Arbitration

    The centerpiece of the Arbitration System is the last best offer 
binding arbitration procedure. It would be available to resolve price 
and delivery disputes arising from open negotiations among Arbitration 
IFQ holders and IPQ holders, lengthy season approach, share matching or 
performance disputes. Specifically, Arbitration IFQ holders and IPQ 
holders would be eligible to participate in binding arbitration. As 
with the other negotiation approaches, the role of the Contract 
Arbitrator would be specifically detailed in the contracts among the 
Arbitration Organizations and the Contract Arbitrator.
    In a last best offer arbitration, the parties each would submit a 
last best offer defining all the terms specified for inclusion in a 
last best offer by the Contract Arbitrator. An Arbitration IFQ holder 
that is a crab harvesting cooperative could submit a last best offer 
that defines terms for the delivery of crab harvested by members of 
that crab harvesting cooperative with IFQ held by the cooperative. The 
Contract Arbitrator would choose one of the last best offers for price 
made by the IPQ holder and IFQ holder(s). The arbitration 
organizations' contract with the Contract Arbitrator would require that 
the Contract Arbitrator base the decision on specific information, 
including consideration of the factors in the Arbitration Standard, the 
historical distribution of first wholesale revenues between fishermen 
and processors, and the Market Report. The Contract Arbitrator also 
could use information from previous arbitrations, the 
non[hyphen]binding price formula and other information provided to the 
Contract Arbitrator by the parties to the arbitration. The Council 
chose to adopt a last best offer arbitration with the intent that it 
would deter parties from exaggerating their offers in hopes of 
achieving a more favorable result.
    The proposed rule provides that at any point more than 15 days 
prior to the date of the first crab fishing season for a crab QS 
fishery, an Arbitration IFQ holder or IPQ holder may initiate a binding 
arbitration procedure. Prior to the submission of the last best offer, 
the Contract Arbitrator would work with the parties to generate the 
information the Contract Arbitrator would require for reaching a 
decision. To minimize antitrust risk, the proposed rule reflects the 
Council's change and provides that only the parties to the arbitration 
and the Contract Arbitrators would have access to information provided 
directly by the parties to the Contract Arbitrator for that particular 
arbitration. To further preclude antitrust risk, the Program and the 
proposed rule require the parties to sign a confidentiality agreement 
stipulating they shall not disclose any confidential information 
generated during the arbitration proceeding.
    To ensure the parties understand their obligations as early as 
possible, the Program requires the Contract Arbitrator to notify the 
parties to an arbitration of the arbitration decision no later than 10 
days before the season opening date. In order to implement that 
provision, the proposed rule requires that if last best offers are 
submitted at least 15 days before the first crab fishing season for 
that crab fishing year for that crab QS fishery, the Contract 
Arbitrator must issue arbitration decisions no later than 10 days 
before the first crab fishing season for that crab fishing year for 
that crab QS fishery. In effect, the Contract Arbitrator would have 5 
days to render a decision in order to notify the parties 10 days before 
the season opening date. The proposed rule provides that in other 
situations, the Contract Arbitrator will notify the parties of the 
arbitration decision within 5 days of the parties submitting their last 
best offers.
    The proposed rule provides that the arbitration decision would 
result in a binding contract between the parties that could be enforced 
by the parties to that contract, not NMFS. The parties would have to 
agree to make the contract terms available, when requested, to 
Arbitration IFQ holders with uncommitted IFQ to enable an IFQ holder to 
determine whether to opt into the completed contract. The Contact 
Arbitrator would need to provide this information within 5 days of 
receiving the request for that information.
    At its June 2004 meeting, the Council considered the antitrust 
risks of sharing the arbitration results among IPQ holders or 
affiliated IFQ holders or Arbitration IFQ holders that already have 
committed to an IPQ holder. The Council agreed that such information 
sharing would raise antitrust concerns regarding illicit price 
stabilization or collusion. To the extent IFQ holders are members of a 
crab harvesting cooperative under the FCMA, they are allowed to share 
the information with other members of the same cooperative and set 
prices with antitrust immunity.

[[Page 63234]]

    However, sharing the results of arbitrations with IPQ holders or 
affiliated IFQ holders or Arbitration IFQ holders that already 
committed to an IPQ holder and so have no need to opt[hyphen]in could 
create serious antitrust risks. If IPQ holders shared the results of 
completed arbitrations with other PQS or IPQ holders, they would risk 
antitrust violations. Without antitrust immunity, sharing current 
pricing information could facilitate illicit price stabilization or 
collusion. Also, if IPQ holders shared the results of arbitrations 
before all arbitrations were completed, an IPQ holder could alter its 
final offer to the Contract Arbitrator to make it closer to the price 
in previous arbitrations in a manner similar to what would occur if the 
IPQ holders coordinated on prices.
    Therefore, the proposed rule allows the disclosure of arbitration 
results only to Arbitration IFQ holders that have not committed to an 
IPQ holder so they have access to the real[hyphen]time results of 
completed arbitrations for purposes of determining whether to 
opt[hyphen]in to a completed contract. The information would be 
provided to the Arbitration Organization of which the parties the 
arbitration are members in order for the Arbitration Organization to 
make such information available to the uncommitted Arbitration IFQ 
holders.
    The proposed rule also would require the Contractor Arbitrator to 
provide NMFS, among other information, any last best offers made during 
the binding arbitration process, including all contract details, the 
names of participants in the arbitration, the arbitration decision and 
the completed contract. This information is necessary for DOJ to carry 
out its mandate under section 313(j)(6) of the Magnuson[hyphen]Stevens 
Act to determine whether any acts of anti[hyphen]competition, antitrust 
or price collusion have occurred among PQS or IPQ holders under the 
Program.

Post Binding Arbitration Opt[hyphen]In

    The post binding arbitration opt[hyphen]in provisions reflect the 
Council's belief in the efficiency and fairness of the arbitration 
procedure. The proposed rule reflects the Program's opt[hyphen]in 
provisions. The proposed rule allows a holder of uncommitted 
Arbitration IFQ to opt[hyphen]in to any contract that results from a 
completed arbitration with any IPQ holder with available uncommitted 
IPQ. To facilitate the process, the Program requires that IPQ holders 
provide information regarding the amount of uncommitted IPQ they have 
available. The proposed rule would require the arbitration 
organizations to agree in their contract to establish a system to 
ensure access to such information by Arbitration IFQ holders that have 
uncommitted IFQ. All the same terms from the original contract would 
apply. Once exercised, the opt[hyphen]in is a binding contract.
    To initiate the process, the Arbitration IFQ holder would notify 
the IPQ holder and the Contract Arbitrator to the original contract of 
its intent to opt[hyphen]in, specifying the amount of IFQ involved, and 
indicating acceptance of the terms of the original contract. However, 
if a dispute arose regarding whether the opt[hyphen]in offer was 
consistent with the terms of the completed contract, the dispute could 
be decided by the Contract Arbitrator who arbitrated the original 
contract.

Performance and Quality Disputes

    Building on the arbitration infrastructure, the Program provides 
that performance and quality disputes that could not be resolved 
through commercial channels could be arbitrated following procedures 
similar to those laid out for binding arbitration. The disputes could 
be raised at any point in time prior to the commencement of the first 
crab fishing season for the following crab fishing year in that crab 
fishery. Meanwhile, when disputes over the quality of the harvested 
crab arise within the context of an existing contract, if the parties 
employed a formula[hyphen]based price, the proposed rule provides they 
each will receive their share of the value of the amount of crab 
delivered based on the provisions of the contract. When the Arbitration 
IFQ holder prefers to use actual ex[hyphen]vessel price and not a 
formula[hyphen]based price and a dispute arises regarding crab quality 
and price, the dispute should be referred to a mutually agreeable 
independent quality specialist firm with both parties sharing the 
costs.

Payment of Costs for Arbitration

    The Program provides that the costs of the market analysis and the 
arbitrators must be shared by the two sectors. The proposed rule 
interprets that provision to require the costs of the Arbitration 
System to be shared equally by all IPQ holders and Arbitration IFQ 
holders and Class A IFQ holders. The costs of the system would include 
all costs of the Market Analyst, Formula Arbitrator and Contract 
Arbitrator, dissemination of information concerning uncommitted IPQ to 
holders of uncommitted Arbitration IFQ, and the costs of such person 
associated with lengthy season approach, share matching approach, 
binding arbitration, and quality and performance disputes.
    The proposed rule requires the arbitration organizations to develop 
a system to determine such costs, assess them equally among the 
participants, and collect the fees. The proposed rule provides that 
such costs must be shared based on the amount of IPQ or IFQ held by 
each person and that the costs must be divided so that the IPQ holders 
pay 50 percent of the costs and the Arbitration IFQ and Class A IFQ 
holders pay 50 percent of the costs. Consistent with the Program, PQS 
holders would be required to advance all costs and collect the 
contribution of Class A IFQ holders at landing subject to terms 
mutually agreed upon by the arbitration organizations.

Monitoring and Catch Weighing Requirements for Catcher/Processors, 
Registered Crab Receivers, and Catcher Vessels

    NMFS has identified three primary objectives for monitoring catch 
in rationalized fisheries. First, monitoring must ensure independent 
verification of catch weight, species composition, and location data 
for every delivery by a catcher vessel or every pot by a CP. Second, 
all catch must be weighed accurately. Third, the system must provide a 
verifiable record of the weight of each delivery.
    To effectively manage the crab fisheries, NMFS must have data that 
will provide reliable independent estimates of the total catch by quota 
sector for all crab harvested. Because participants are operating under 
their own IFQ, they have a strong interest in ensuring that catch data 
do not overestimate the amount of crab harvested. Based on experience 
gained under other quota[hyphen]based programs, NMFS anticipates 
estimates of catch will be questioned frequently by industry. Further, 
individual harvesters and processors would benefit directly if catch is 
under reported because each processor or vessel is operating under an 
individual allocation. For these reasons, NMFS is proposing a 
catch[hyphen]weighing system for the crab fisheries under this Program 
that is more rigorous than that required in non[hyphen]rationalized 
fisheries.
    In order to implement the Program, NMFS proposes new monitoring and 
catch weighing requirements for RCRs taking deliveries of crab, catcher 
vessels harvesting crab, and CPs catching and/or harvesting crab. These 
proposed new requirements are summarized in the following table:

[[Page 63235]]



      Table 14--Summary of Monitoring Requirements for Crab Fishery
                              Participants
------------------------------------------------------------------------
                                                             Catcher
                       RCR Taking      Catcher Vessel       Processor
   Requirement       Deliveries of     Harvesting Crab    Harvesting or
                          Crab                           Processing Crab
------------------------------------------------------------------------
Weigh all          Yes. On a scale    No.               Yes. On a scale
 retained quota     approved by the                      approved by
 by quota           State in which                       NMFS.
 category prior     the RCR is
 to processing.     located.
------------------------------------------------------------------------
Scale testing      Yes. On demand.    N/A               Yes. Scale must
 requirements.                                           be tested daily
                                                         when use is
                                                         required.
------------------------------------------------------------------------
Printed record of  Yes.               N/A               Yes. Printed
 scale weights.                                          record of scale
                                                         weights for
                                                         unprocessed
                                                         crab as well as
                                                         for processed
                                                         product.
------------------------------------------------------------------------
Operate under an   Yes.               No.               No.
 approved catch
 monitoring plan
 (CMP).
------------------------------------------------------------------------
Offload            No.                Yes. All          Yes. All product
 requirements.                         offloads must     must be
                                       be to an RCR.     offloaded on
                                       Vessel may not    shore.
                                       leave RCR until
                                       reporting of
                                       offload is
                                       completed.
------------------------------------------------------------------------
Product weighing   No.                N/A               Yes. All product
 requirements.                                           must be weighed
                                                         on a scale
                                                         approved by the
                                                         State in which
                                                         product offload
                                                         takes place.
------------------------------------------------------------------------
Vessel Monitoring  N/A                Yes.              Yes.
 System (VMS)
 requirements.
------------------------------------------------------------------------
Provide Observer   No.                No.               Yes.
 work station.
------------------------------------------------------------------------

Catcher/Processors Catch[hyphen]Weighing and Monitoring Requirements

    NMFS proposes to require all crab IFQ harvested and processed by 
CPs be weighed at[hyphen]sea prior to processing. These catch weighing 
requirements include the following:
    (1) Scales must meet the performance and technical requirements 
specified in appendix A to part 679. At this time, NMFS has approved 
scales produced by Marel hf and Skanvaegt International A/S for 
weighing total catch. Marel hf, Skanvaegt International A/S and Pols hf 
manufacture scales that have been approved for use by observers.
    (2) Each scale must be inspected and approved annually by a 
NMFS[hyphen]approved scale inspector.
    (3) Each observer sampling scale must be accurate within 0.5 
percent when its use is required.
    (4) The observer sampling scale must be accompanied by accurate 
test weights sufficient to test the scale at 10, 25 and 50 kg or, if 
the scale is denominated in pounds, at 25, 50 and 100 lb.
    (5) Each scale used to weigh crab must be tested daily. Automatic 
hopper scales must be tested at their minimum and maximum capacity 
using certified test weights. Flow scales must be tested with no less 
than 400 kg of fish or other test material.
    (6) When tested, a flow scale and the observer sampling scale must 
agree within 3 percent. An automatic hopper scale must be accurate 
within 2 percent when compared with the known weight of the certified 
test weights.
    (7) Scales must produce a printed record of all crab retained by 
the vessel. This record must be printed no less than once every 24 
hours when use of the scale is required.
    In other programs where NMFS requires all catch be weighed 
at[hyphen]sea, NMFS also requires that an observer be on duty whenever 
catch may be weighed. Because fishing operations occur on a 24 hour 
basis, this generally requires that the vessel carry two observers. 
This is necessary because no catch[hyphen]weighing system is tamper 
proof and NMFS ensures that all catch is being weighed by requiring an 
observer to be on duty at all times. This allows NMFS to audit the 
vessel's reported weight of groundfish against the observer's data. 
However, the crab fisheries differ from the groundfish fisheries in two 
important ways. First, the final Council motion establishing the 
Program delegated observer coverage responsibility to the State of 
Alaska, and, at this time, the State requires CPs to provide only a 
single observer. Second, crab are far more valuable per pound than 
groundfish. Thus, while it is probably not practical for vessel crew to 
attempt to bypass the scale with groundfish, it may be more tempting to 
do so with a comparatively high value product such as crab. Because of 
these differences, NMFS believes crab weights must be audited at the 
point of offload. This would require a crab CP to offload all product 
shoreside at a designated port and weigh that product on a scale 
approved by the State in which the offload takes place. These offload 
product[hyphen]weighing requirements include the following:
    (1) Offload all product to a shoreside location in the United 
States accessible by road service or regularly scheduled air service.
    (2) Weigh all product on a scale approved by the State in which the 
RCR is located, which must be equipped with a printer.
    (3) Report the total weight of the offload to NMFS.
    Observer sampling stations provide a location where observers can 
work safely and effectively. While the Program delegates observer 
coverage requirements to the State of Alaska, NMFS believes a quota 
type program necessarily imposes new duties on observers because of the 
increased season length and subsequent need to be on station more 
often. In spite of the requirements detailed above for full accounting 
of product, observers would still play an important role in ensuring 
catch weights are accurately reported. In order to facilitate these 
duties, NMFS is proposing to require vessels to provide minimal work 
areas and facilities for the

[[Page 63236]]

use of the observer. NMFS proposes to require that CPs provide the 
following for observers:
    (1) An observer work area for sampling unsorted crab. The work area 
must be no less than 6 square meters and no less than 1 meter on each 
side. The work area must be located within 3 meters of where the vessel 
crew sort crab.
    (2) An observer work area for sampling retained crab. The work area 
must be no less than 1 meter on each side. The work area must be 
located downstream from the scale used to weigh total catch and 
upstream from the area where crab are processed.
    (3) The observer work area for sampling retained crab must be 
provided with a NMFS[hyphen]approved motion compensated platform scale 
located within 5 meters of the work area. Clear and unobstructed 
passage must be provided between the scale and the observer work area. 
The scale must be accompanied with certified test weights sufficient to 
test the scale at 10, 25 and 50 kg (or 25, 50 and 100 lb if scale is 
denominated in lb). The scale may also be used by vessel crew, but must 
be available to the observer at all times.
    (4) Both observer work areas must be protected from extreme weather 
and unusual safety hazards.
    (5) Vessel crew may use both observer work areas, but the entire 
area must be available to the observer whenever the observer is 
working.
    (6) The vessel owner must prepare a diagram, drawn to scale, 
showing the location of both observer work areas. The diagram must be 
retained on board the vessel whenever the vessel is harvesting or 
processing crab quota.

Registered Crab Receivers Catch[hyphen]Weighing and Monitoring 
Requirements

    This proposed rule would establish a new catch monitoring system 
for RCRs. The catch management goals established by NMFS for the crab 
fisheries are the same for the inshore and offshore sectors. However, 
NMFS does not believe the regulations developed for CPs are adequate 
for inshore processors and other RCRs for two reasons. First, inshore 
processors vary more in size, facilities and layout than do CPs. 
Second, the State is responsible for approving scales used for trade 
within the State in which the landing is made and has developed an 
effective program for their inspection and approval.

Catch Monitoring Plans

    The catch monitoring system developed by NMFS for CPs is based on a 
standardized system of round weight accounting and offload monitoring. 
Because of the wide variation among RCRs, NMFS believes a 
performance[hyphen]based catch monitoring system is more appropriate 
for this sector. Under this system, each RCR would be required to 
submit a Catch Monitoring Plan (CMP) to NMFS for approval. The CMP 
would detail how the RCR would meet the following standards for each 
location where crab would be received:
    (1) All crab, including crab parts, and dead or otherwise 
unmarketable crab, must be sorted and weighed by quota category. The 
CMP must detail how and where crab are sorted and weighed.
    (2) Scales used for weighing crab must be identified by serial 
number.
    (3) Scales identified in the CMP must be accurate within specified 
limits. For each scale identified in a CMP, a testing plan must be 
developed showing how the RCR will test the scale, where the required 
test weights are located, and what personnel are responsible for scale 
testing.
    (4) A printed record of the weight of each delivery must be 
produced. A sample copy of the printed record must be included in the 
CMP.
    (5) The CMP must designate an observation area. The observation 
area is a location where an individual may monitor the offloading and 
weighing of crab during a delivery. From the observation area, an 
individual must have an unobstructed view or be able otherwise to 
monitor the entire offload of crab between the first location where 
crab are removed from the boat and a location where all sorting has 
taken place and all quota has been weighed. The observation area must 
be accessible to authorized personnel, be sheltered from the weather, 
and not be exposed to undue safety hazards.
    (6) The CMP must designate a plant liaison. The plant liaison is 
responsible for orienting new observers or NMFS[hyphen]authorized 
personnel to the plant, assisting in the resolution of NMFS or observer 
concerns, and informing NMFS if changes are made to the CMP.
    (7) The CMP must be accompanied by a scale drawing of the plant 
showing where crab are removed from a delivering vessel, the 
observation area, all scales used to weigh crab, and each location 
where crab is sorted.
    (8) All offloading and weighing locations detailed in the CMP must 
be located on the same vessel or in the same geographic location. If a 
CMP describes facilities for the offloading of vessels at more than one 
location it must be possible to see all locations simultaneously.
    Each CMP location would be inspected by NMFS or NMFS authorized 
personnel to ensure the layout conforms to the elements of the plan. A 
CMP that meets all of the standards would be approved by NMFS for 1 
year, unless during the year changes are made in plant operations or 
layout that do not conform to the CMP. After 1 year, NMFS would review 
the CMP with plant management to ensure the CMP has been implemented 
and the standards continue to be met.
    Proposed catch weighing standards for CPs are based on the use of 
scales approved by NMFS. Because Federal and State scale approval 
standards differ, most NMFS[hyphen]approved scales are not legal for 
trade in most States and most State[hyphen]approved scales do not meet 
NMFS criteria for inseason testing and auditing. NMFS believes the 
State in which the landing is made should be the primary authority 
responsible for approving and testing scales located onshore or on 
vessels anchored inside the territorial sea and that weighing crab 
delivered inshore on scales approved by NMFS is unnecessary. Under 
existing State regulations, crab buyers and processors are required to 
weigh all catch that is bought or sold on State[hyphen]approved scales. 
In most states, including Alaska, these scales must be inspected 
annually by State[hyphen]authorized inspectors.However, State 
regulations generally do not provide for inseason testing of scales nor 
do they require that scales produce a printed record of each delivery. 
NMFS believes these are essential features of an acceptable catch 
weighing system. Therefore, NMFS has developed a catch[hyphen]weighing 
system that implements these additional features within the existing 
framework of State scale inspection and approval.
    Thus, this proposed rule reflects cooperative State and Federal 
development of catch weighing requirements for RCRs and includes the 
following provisions:
    (1) As described above, each RCR would be required to submit a 
scale testing plan as part of its CMP that describes the procedure the 
plant will use to test each scale identified in the CMP. The testing 
plan would list the test weights and equipment required to test the 
scale, where the test weights and equipment are stored, and the names 
of the plant personnel responsible for testing the scale. Test amounts 
for various scale types are shown in Table 15.
    (2) Test weights would have to be certified at least biannually by 
a metrology laboratory approved by the

[[Page 63237]]

National Institute of Standards and Technology (NIST).
    (3) NMFS or NMFS[hyphen]authorized personnel could request that any 
scale be tested in accordance with the testing plan, provided the scale 
had not been tested and found accurate within the past 24 hours.
    (4) Each scale would have to be accurate within the limits 
specified in Table 15 when tested by the plant staff.
    (5) Each scale used to weigh catch must be equipped with a printer 
to provide a printout or printouts showing the total weight of each 
delivery, which would have to be generated after each delivery had been 
weighed. The printouts must be retained by the plant and made available 
to NMFS[hyphen]authorized personnel, including observers. See Tables 15 
and 16 for details:

  Table 15--Test Weight and Test Load Amounts That Would be Required to
     Perform Inseason Testing on Various Scale Types and Capacities
------------------------------------------------------------------------
    Scale Type        Capacity\1\      Test Weights\2\    Test Loads\3\
------------------------------------------------------------------------
Automatic Hopper   0 to 150 kg        Minimum           Minimum\1\
                                       Weighment\1\ or
                                       10 kg,
                                       whichever is
                                       greater
------------------------------------------------------------------------
                   .................  Maximum\1\        Maximum\1\
------------------------------------------------------------------------
Automatic Hopper   >150 kg            Minimum           Minimum\1\
                                       weighment\1\ or
                                       10 kg,
                                       whichever is
                                       greater
------------------------------------------------------------------------
                   .................  25 percent of     Maximum\1\
                                       Maximum\1\ or
                                       150 kg,
                                       whichever is
                                       greater
------------------------------------------------------------------------
Platform or        0 to 150 kg        10 kg             Not Acceptable
 flatbed
------------------------------------------------------------------------
                   .................  Midpoint          ................
------------------------------------------------------------------------
                   .................  Maximum\1\        ................
------------------------------------------------------------------------
Platform or        >150 kg            10 kg             Not Acceptable
 flatbed
------------------------------------------------------------------------
                   .................  12.5 percent of   50 percent of
                                       Maximum\1\ or     Maximum\1\ or
                                       75 kg,            75 kg,
                                       whichever is      whichever is
                                       greater           greater
------------------------------------------------------------------------
                   .................  25 percent of     75 percent of
                                       Maximum\1\ or     Maximum\1\ or
                                       150 kg,           150 kg,
                                       whichever is      whichever is
                                       greater           greater
------------------------------------------------------------------------
\1\These amounts will be shown on the scale marking plate.
\2\Test Weights are weights that have been approved by a NIST-approved
  laboratory.
\3\Test load is any combination of approved test weights and other
  material specified in the scale testing plan. Test material other than
  test weights must be weighed on an accurate observer platform scale at
  the time of each use.


    Table 16--Proposed Maximum Permissible Errors for Inseason Scale
                               Testing\1\
------------------------------------------------------------------------
                                                 Maximum Error in Scale
       Test Load in Scale Divisions\2\                 Divisions
------------------------------------------------------------------------
0[dash]500                                     1
------------------------------------------------------------------------
501[dash]2,000                                 2
------------------------------------------------------------------------
2,001[dash]4,000                               3
------------------------------------------------------------------------
>4,000                                         4
------------------------------------------------------------------------
\1\Maximum permissible errors and testing procedure for inseason testing
  are not the same as for State scale approval. A scale that is accurate
  for the purposes of inseason testing may or may not be accurate enough
  to be approved by the State.
\2\Division size is shown on the scale's marking plate.

Catcher Vessels Catch Monitoring Requirements

    Under this proposed rule, NMFS is not requiring catcher vessels to 
weigh their own catch. Rather, the proposed catch-accounting system 
would be based on data received from the RCR. Because this is the 
location where all non[hyphen]CP catch accounting would take place, 
NMFS would require that all crab retained by a catcher vessel be landed 
to an RCR. The proposed regulations do not make any exceptions for 
activities such as dockside sales or tendering. Thus, if a holder of 
CVO or CVC IFQ wished to sell their own catch to the general public, 
the quota holder would be required to be an RCR and to conduct the 
offload of crab from the vessel in accordance with the requirements 
described above for an RCR.

Interagency Electronic Reporting System (IERS)

    The RCR would obtain at his or her own expense, hardware, software, 
and Internet connectivity to support Internet submissions of the crab 
rationalization (CR) crab landing report on the IERS.
    IERS application for user ID. Each RCR permit holder would submit a 
data-entry application to the Regional Administrator to provide 
information needed to process account access into the IERS. The IERS 
will provide a web page where the applicant would enter information. 
The IERS would confirm that all required information is submitted, that 
the information entered is in correct format, and also that the 
requested user ID is not already in use. The IERS would generate a PDF 
document from the information entered by the applicant. The user would 
sign and submit the form. An Agency IERS staff would review the form, 
confirm that the user should be authorized for the system, and would 
activate the user on the IERS. The IERS would then send the user(s) an 
email telling them they can now use their new user ID.
    CR Crab Landing Report. The CR crab landing report (internet 
version and fax version) would be submitted through the IERS, which is 
the result of collaboration among NMFS Alaska Region, International 
Pacific Halibut Commission, and State of Alaska, Department of Fish and 
Game (ADF&G). The CR crab landing report is the first step of a 
complete, unified IERS that would be extended in future years to the 
groundfish fisheries, IFQ, and CDQ halibut fisheries. This internet 
report would replace the paper ADF&G fish ticket for debiting CR crab 
landings. All

[[Page 63238]]

retained CR crab catch would be weighed, reported and debited from the 
appropriate IFQ or IPQ account under which the catch was harvested or 
received, as appropriate. The IERS is a more convenient, accurate, and 
timely method of reporting.
    Additionally, the proposed IERS would provide continuous access to 
IFQ and IPQ accounts. These provisions would make recordkeeping and 
reporting requirements less burdensome on participants by allowing 
participants to more efficiently monitor his or her accounts and 
fishing activities.

Catcher/Processor Offload Report

    An RCR receiving CR crab that were harvested and processed by a CP 
must complete a CP offload report at the time of offload and attach a 
scale printout showing gross product offload weight. Crab weights must 
be audited at the point of offload. This report would allow audit 
comparisons of catch accounting information between the vessel's 
reported weight of crab with the observer's data.
    ECCO Annual Report for an ECC (see Approval criteria for an 
Application for Transfer of QS/IFQ to or from an ECCO).

Vessel Monitoring System (VMS) Requirements

    Under the proposed rule, a vessel that harvests crab in the crab 
fisheries, including a vessel harvesting CDQ or Adak allocations, would 
be required to have aboard an operating NMFS[hyphen]approved VMS 
transmitter at any time when the vessel has crab gear on board. These 
transmitters automatically determine the vessel's location several 
times per hour using Global Positioning System (GPS) satellites and 
send the position information to NMFS via a mobile communication 
service provider. The VMS transmitters are designed to be 
tamper[hyphen]resistant and automatic. The vessel owner should be 
unaware of exactly when the unit is transmitting and would be unable to 
alter the signal or the time of transmission.
    NMFS believes a VMS system is an essential component of a 
rationalized crab fishery. A VMS system would allow NMFS to verify 
where fishing is taking place and ensure that vessels harvesting crab 
were permitted to do so and that harvested IFQ is properly debited. A 
VMS system also allows NMFS to track vessels as they arrive in port to 
offload crab or crab product. This helps to ensure all landings are 
properly made to an RCR and the landing is properly debited from the 
IFQ holder's account.
    NMFS has approved VMS system components manufactured by several 
vendors. Additional details concerning these VMS components may be 
found in the NMFS' notice of approval of these VMS components published 
in the Federal Register on April 15, 2004 (69 FR 1986).

Economic Data Collection

    The Program includes a comprehensive economic data collection 
program to aid the Council and NMFS in assessing the success of the 
Program and developing amendments necessary to mitigate any unintended 
consequences. The data would be used to study the economic effects of 
the Program on harvesters, processors, and communities. Participation 
in the data collection program would be mandatory for all participants 
in the fisheries.
    The Magnuson[hyphen]Stevens Act authorizes a mandatory economic 
data collection system that would provide analysts with information 
necessary to study the impacts of the Program and to ensure the Program 
would equitably distribute benefits between the harvesting and 
processing sectors and provide a stable economic environment. The 
Magnuson[hyphen]Stevens Act also authorizes NMFS to supply economic 
data to the Federal Trade Commission (FTC) and the Department of 
Justice (DOJ) for analysis by those agencies. The authority to collect 
a wide variety of economic data from both harvesters and processors is 
exclusive to the crab fisheries.

Selection and Scope of Work for the Data Collection Agent

    To address concerns for strict control over sensitive economic 
data, collection of economic data would not be performed by NMFS but by 
a third[hyphen]party agent, or Data Collection Agent. NMFS has 
determined the Pacific States Marine Fisheries Commission (Pacific 
States) would be the Data Collection Agent, although NMFS is authorized 
to select any appropriate entity. NMFS would establish the regulatory 
structure for mandatory submission of economic data by harvesters and 
processors. Pacific States would establish systems for the collection 
and compilation of the data.
    Pacific States, in a cooperative agreement or another form of a 
procurement agreement with NMFS, would be authorized to collect data, 
ensure confidentiality of the data by following all statutory and 
regulatory data confidentiality guidelines, and release the data to 
NMFS and other authorized users. Among other duties, Pacific States, 
acting as an agent for NMFS, would identify submitters, forward EDRs to 
submitters and collect the data. Once received, Pacific States would 
act as a storehouse for the data and provide it only to authorized 
users and only in authorized form.
    In instances where NMFS economists, Council staff, or other 
authorized users accessing the data for crab management analysis or 
report purposes request data, Pacific States would furnish them but 
eliminate or remove the identifiers for the submitter. This would make 
the data ``blind'' to these users. However, if the data are requested 
by NMFS Enforcement, NOAA GC, RAM, DOJ, or FTC, and the purpose is 
connected to law enforcement or qualification for QS, PQS, IFQ, IPQ, 
and other Federal permits, Pacific States would provide the data and 
the identity of the submitter.
    Pursuant to a procurement agreement with NMFS, Pacific States would 
be authorized to establish a method and protocol for ensuring accuracy 
of the data submissions. Measures to verify the accuracy of the data 
would include consultation with NMFS economists and analysts to 
ascertain anomalies, outliers, and other deviations from averaged 
variables. The principle means to verify data would be consultation 
between Pacific States staff and the submitter when questions arise 
regarding data. To assure timely resolution of verification 
consultations, submitters would be required to respond to Pacific 
States inquiries within 15 days. Pacific States would request oral or 
written confirmation of data submissions and request copies of or 
review documents or statements that would substantiate data 
submissions. Data in EDRs would be amended by Pacific States in 
response to submitter requests and the results of the follow[hyphen]up 
verification processes.
    EDR audits would occur either through random selection or when 
circumstances require more thorough review of the submissions. Pacific 
States, in instances where a random audit occurs or an audit is 
otherwise justified, would retain a professional auditor/accounting 
specialist who would review and request financial documents 
substantiating economic data that is questioned. In an instance where 
data cannot be verified or concerns resolved by Pacific States, NMFS 
would request referral of the matter to the auditor for further 
disposition.
    Pacific States would provide support for arbitrators for binding 
arbitration. If an arbitrator is involved in price determinations for 
parties to binding arbitration, Pacific States would, at the request of 
a binding arbitrator, supply

[[Page 63239]]

detailed revenue, landing, and production data to the binding 
arbitrator. The information supplied to the arbitrator by Pacific 
States would be aggregated so as to avoid releasing confidential 
information.

Type of Data to Be Submitted

    Cost, revenue, production, and ownership data would be submitted in 
an EDR. Relevant state and local fishing[hyphen]related taxes would be 
reported. The data would assist in the analysis of the variable costs 
of processors and harvesters. Data on fixed costs would not be 
collected unless such data informs the analysis of industry variable 
costs. NMFS would require submission of data recommended for collection 
by the Council's data collection committee. This committee reviewed 
NMFS' economist's data surveys and proposed additional data to be 
collected. The surveys that resulted from the committee deliberations 
are the foundation for the EDRs.
    To analyze local and regional seafood employment, owners and lease 
holders of vessels submitting annual EDRs would submit State of Alaska 
crew license numbers and Commercial Fisheries Entry Commission permit 
serial numbers of their harvesting and processing employees. 
Additionally, identification of number of employees or crew, and their 
home state or country would be provided in the EDRs.
    There would be two variations of the EDRs, an historic EDR and an 
annual EDR. The first would require submission of 
historical[hyphen]based economic data. Historical data would capture 
economic data from 1998 through 2004. It would capture 
pre[hyphen]Program implementation data for comparison to the economics 
of harvesting and processing before and after Program implementation. 
The annual EDR would capture economic data on an annual basis at the 
conclusion of each calendar years' crab fisheries.
    For a crab harvester or CP, the annual EDR data collection system 
is based on collection of data relating to costs and revenues for a 
vessel. For crab processing entities, the data collection system is 
based on collection of costs and revenues for a processing company or 
plant. Processor submitters would distinguish data stemming from custom 
processing and business with affiliated processors from otherwise 
standard operations data.
    The EDR forms would be accessible to submitters on the NMFS Alaska 
Region website at www.fakr.noaa.gov. Persons may download the form to 
complete manually or may complete it electronically on the website. 
Paper copies of the forms would also be mailed directly to identified 
persons. Persons would submit the completed EDRs to Pacific States.

Who Must Provide an EDR

    Participants in the crab fishing industry harvesting or processing 
fish under Magnuson[hyphen]Stevens Act authority after enactment of 
Pub. Law 108[hyphen]199 on January 23, 2004, would submit data in the 
EDR. The members of the crab industry include a potentially broad range 
of individuals, corporations, partnerships, and other business 
formations. Both owners and lessees of fishing vessels and processing 
operations would be responsible for submission of the EDR.
    Because of the contractual nature of leasing vessels or processing 
operations, whether someone has leased a vessel or processing operation 
remains a private business matter and not apparent to NMFS. To 
ascertain leasing arrangements and determine who is a lessee that 
should submit an EDR, NMFS would be requiring the lessors to identify 
his or her lessees in the EDR and QS or transfer applications.
    Some members of the harvesting and processing industry who NMFS has 
the authority to require submission of an EDR would not be required to 
submit an annual EDR. Persons who hold QS, such as those who hold CPC 
QS, that do not own or lease a vessel, would not be required to submit 
an annual EDR. Additionally, harvesters and processors of crab not 
included in the Program, such as Norton Sound red king crab, would not 
be obligated to submit annual or historic EDRs for that crab.
    For catcher vessels owners submitting historic data, there would be 
a sample based selection of owners of these vessels for submission of 
any 3 years selected between1998 through 2004. Catcher vessel owners 
would not be required to submit historical data for all years 1998 
through 2004 because of the extraordinary reporting burden this would 
entail. A notice published in the Federal Register would identify each 
vessel selected for submission of catcher vessel historical data. The 
owner or lessee of the vessel would be required to submit the EDR.
    Catcher/processor EDRs would consist of one form for annual data 
and one form for historical data and would not require submission of 
both ``harvester'' and ``processor'' EDRs, unless, the person owned or 
leased a vessel that also operated as a catcher vessel during the 
specified year. The submitter of the historical EDR for a CP would be 
the owner or lessee of a vessel that made at least one landing of crab 
in the years 1998, 2001, or 2004, as there is an insufficient number of 
CPs to apply a sample based selection submission requirement.
    For shore[hyphen]side and stationary floating processors, the 
submitter of the EDR would be the owner or lessee of a processing 
company consisting of one or more fish processing plants. For 
processors, the submission of the EDR is required if they qualified for 
or received QS, PQS, IFQ, or IPQ. Data would be reported for individual 
plants owned by the submitter. For historical data submissions, owners 
or lessees of processing companies processing crab in 1998, 2001, or 
2004, and who would be participating in the Program, would be required 
to submit these data in the EDR.
    NMFS has determined that there are persons that do have historic 
data from the years 1998 to 2004 that would not be required to submit 
an EDR. The effect of eliminating this historical data on the 18 month 
and 3 year review of Program is not possible to determine at this time, 
but would be better understood at the conclusion of the verification 
process for historical EDR data.
    The owner or lessee of the fishing vessel or processing company 
required to submit the EDR may appoint a contact individual, who on his 
or her behalf, would respond to inquiries and verification processes 
from Pacific States regarding data and the EDR.
    Because EDR submission is mandatory, NMFS must ensure there are 
compliance incentives. In addition to incentives to avoid enforcement 
actions, another incentive would be to withhold issuance or transfer of 
IPQ, PQS, IFQ, or QS should a submitter fail to submit an EDR. For 
example, if a prior year's EDR is not submitted by a crab IFQ applicant 
who was obligated to submit the EDR, the permit application would be 
considered incomplete by NMFS, the permit application denied and an IAD 
issued setting forth the facts, a discussion and determination. Upon 
issuance of the IAD, NMFS may withhold issuance of any new IFQ or IPQ 
and disapprove any transfer of IFQ, IPQ, and/or QS, PQS to or from a 
permit holder until final agency action. An aggrieved permit or 
transfer applicant could appeal an IAD through the Office of 
Administrative Appeals (OAA) in NMFS as described at Sec.  680.43. An 
IAD that is not appealed within 60 days of issuance of the OAA, would 
become a final agency action. To facilitate NMFS' determination of 
whether an application is complete by virtue of completion of a prior 
years' EDR, Pacific States would inform NMFS of the status of EDR 
submissions. If the application was

[[Page 63240]]

otherwise complete, NMFS would provide the permit for IFQ or IPQ once 
the submitter files the EDR with Pacific States.

Submission Deadlines for EDRs

    Submission deadlines for both historical and annual EDRs would 
correspond with availability of the data to the submitters, providing 
sufficient time for preparation, and providing NMFS with sufficient 
time to prepare reports based on the data for Program review. NMFS 
would require an annual EDR be submitted each year on or before May 1, 
encompassing the previous calendar year. An EDR for historical data 
would be submitted no later than 60 days after the effective date of 
the final rule. The EDR for catcher vessel historic data would be 
required to be submitted within 60 days of publication of a Federal 
Register notice identifying vessels that must submit historic data to 
Pacific States.

DOJ/FTC Review of the Program

    Section 313(j)(6) of the Magnuson[hyphen]Stevens Act states there 
is no waiver of the anti[hyphen]trust laws of the United States for 
persons receiving PQS. Anti[hyphen]trust laws include the Sherman Act, 
(15 U.S.C. sec. 1, et seq.), the Clayton Act, (15 U.S.C. sec 12, et 
seq.), and the Federal Trade Commission Act (15 U.S.C. sec. 41, et 
seq.). The Federal anti[hyphen]trust laws are enforced by criminal and 
civil enforcement actions brought by the Antitrust Division of the DOJ, 
and civil enforcement actions brought by the FTC.
    Although the Program proposes caps and limitations on the 
accumulation and holding of PQS, there remains potential for 
consolidations resulting in anti[hyphen]competitive conduct or price 
collusion. To the extent possible through information collectible in 
the Program and to reduce the potential for violations of the 
anti[hyphen]trust laws and related concerns, the Program would provide 
for review of processor activity by DOJ, or FTC. This information would 
assist analysis of consolidations and market impacts of processor 
activities.
    Pursuant to section 313(j)(6) of the Magnuson[hyphen]Stevens Act, 
NMFS has consulted with DOJ and FTC to develop and implement a system 
for accessing data and information DOJ and FTC have identified as 
helpful to them. In general, access to collected information in the 
Program would shorten investigation time by DOJ or FTC and possibly 
lead to earlier detection of anti[hyphen]competitive conduct. Access to 
the information would be for the perpetuity of the Program. Should DOJ 
and FTC require additional information in the future, NMFS would take 
appropriate actions to provide for its collection to the extent 
authorized under the Magnuson[hyphen]Stevens Act.
    To assist determination of whether anti[hyphen]competitive conduct, 
price collusion, or violations of the anti[hyphen]trust law exist, the 
Program, principally through memorandums of understanding and 
administrative precesses, would authorize and allow access to data and 
information to DOJ or FTC. When either DOJ or FTC request information 
held by NMFS or any NMFS agent, access to it would not be conditioned 
or restricted, and access would be contemporaneous with the request, or 
provided routinely through a data report. For example, Pacific States, 
who would be a NMFS agent for collection of economic data from members 
of the crab harvesting and processing industry, would provide DOJ and 
FTC access to these data. DOJ and FTC would also have access to the 
identity of the submitters of the data both for the economic data and 
any other information held by NMFS or its agents.
    The information that would be available to DOJ and FTC includes the 
following: all data submitted in EDRs by any submitter, including 
catcher vessel owners and lessees, and all varieties of processors, 
including owners and lessees of processing entities. All QS holder 
information would be accessible by DOJ or FTC. This includes 
information required by and provided in permit applications, transfer 
of QS , and related forms submitted to RAM. If an application requires 
submission of a copy of a contract for sale of QS or a permit for 
annual issuance of IFQ or IPQ, a copy of such contract could be 
accessed by DOJ or FTC.

Cost Recovery and Fee Collection

    Section 304(d)(2)(A) of the Magnuson[hyphen]Stevens Act requires 
the Secretary to ``collect a fee to recover the actual costs directly 
related to the management and enforcement of any...individual fishing 
quota program [or] community development quota program.'' As a quota 
program, the Program must follow the statutory provisions set forth by 
section 304(d) and section 313(j) of the Magnuson[hyphen]Stevens Act.
    Paragraphs 304(d)(2)(B) and (C) of the Magnuson[hyphen]Stevens Act 
specify an upper limit on fees, when the fees must be collected, and 
where the fees must be deposited. Section 303(d)(4) of the 
Magnuson[hyphen]Stevens Act allows NMFS to reserve up to 25 percent of 
the fees collected for use in a loan program to aid in financing the 
purchase of quota by entry[hyphen]level and small[hyphen]vessel 
fishermen.
    The Magnuson[hyphen]Stevens Act specifies the following with 
respect to the imposition of cost[hyphen]recovery fees:
    (1) Fees are collected to recover actual costs directly related to 
actual enforcement and management of an individual fishing quota 
program or community development quota program that allocates a 
percentage of the total allowable catch of a fishery to such program;
    (2) Fees must not exceed 3 percent of ex[hyphen]vessel value;
    (3) Fees collected under this program are in addition to any other 
fees charged under the Magnuson[hyphen]Stevens Act;
    (4) With the exception of money reserved for the loan program, fees 
must be deposited in the Limited Access System Administrative Fund 
(LASAF) in the U.S. Treasury; and
    (5) Fees must be collected at either the time of a legal landing of 
harvested fish, filing of a landing report, or the sale of such fish 
during a fishing season or in the last quarter of the calendar year in 
which the fish are harvested.
    Section 313(j) of the Magnuson[hyphen]Stevens Act provides that the 
Secretary will approve a cost recovery program for the Program, 
conducted in accordance with the existing halibut and sablefish cost 
recovery program. Similar to the halibut and sablefish cost recovery 
program, the Crab Rationalization cost recovery program would allow for 
the collection of actual management and enforcement costs up to 3 
percent of ex[hyphen]vessel gross revenues and a loan program based on 
25 percent of the fees collected.
    Section 313(j) provides several additional provisions specific to 
the cost recovery program to accommodate the processing component of 
the Program and to address problems experienced under the halibut and 
sablefish cost recovery program. Unique to Crab Rationalization, the 
Council authorized the collection of 133 percent of actual costs of 
management, which would provide for fuller reimbursement of the 
management and enforcement costs of the program after allocation of 25 
percent of the cost recovery to the loan program. Additionally, the 
Council provided that cost recovery fees would be paid in equal shares 
by the harvesting and processing sectors and that CPs, being a 
combination of both sectors, would pay the full fee percentage.

Cost Recovery Program Description

    NMFS developed the cost recovery program in conformance with 
statutory requirements and to provide for partial

[[Page 63241]]

compensation to the agency for the added costs of management and 
enforcement of the Program. Key provisions of the cost recovery program 
include (1) a new definition and application of ``fee liability,'' (2) 
the establishment of an RCR permit system to streamline management and 
reporting, (3) the establishment of a ``crab fishing year'' for 
biological and administrative purposes, and (4) a new administrative 
process that requires the collection and submission of fees by RCRs 
rather than requiring separate billings for each individual crab 
rationalized allocation (crab allocation) holder. The crab allocations 
include IFQ, Crew IFQ, IPQ, CDQ, and the Adak community allocation. 
This system would impose less of an administrative burden on the 
industry as a whole, provide more efficiency in the agency 
administrative process, and reduce the overall cost of managing the 
Program.
    Generally, any crab allocation holder would incur a cost recovery 
fee liability for every pound of crab landed in the crab fisheries. The 
RCR permit holder would be responsible for collecting any fee liability 
for the crab allocation holder landing crab and self[hyphen]collecting 
any fee liability for all crab landed at that facility. Under a CDQ or 
the Adak community allocation, the harvester delivering the crab on 
behalf of the community entity to the RCR would be responsible for 
paying the harvester share of the fee liability at the time of landing 
to the RCR. The RCR permit holder would be responsible for submitting 
this payment to NMFS on or before the due date of July 31 following the 
crab fishing year in which payment for the crab was made. The dollar 
amount of the fee due would be determined by multiplying the fee 
percentage (not to exceed 3 percent) by the ex[hyphen]vessel value of 
crab debited from the allocation.

Registered Crab Receiver

    NMFS determined the need for a focal point for landing crab to 
ensure proper monitoring and enforcement of the rationalized fishery. 
Subsequently, NMFS determined that, under the Program, it must identify 
and receive reporting from all entities that receive and/or process 
crab. As a result, NMFS concluded that all persons who receive and/or 
process crab must apply for and possess an RCR permit before receiving 
any crab. This designation would ensure that all processors who receive 
crab, whether or not they possess IPQ, would be responsible for any fee 
liabilities associated with any crab received by those processors.

Fee Percentage

    Three percent of the ex[hyphen]vessel value of crab harvested under 
a quota program is the maximum fee amount allowed by section 
304(d)(2)(B) of the Magnuson[hyphen]Stevens Act. This proposed rule 
would set a 3 percent fee at the start of each crab fishing year, but 
would allow the Regional Administrator to reduce the fee percentage if 
actual management and enforcement costs could be recovered by using a 
smaller percentage. NMFS recognizes that in order for fishermen to 
budget their costs, they need to know the fee percentage that would 
apply to any crab deducted from a crab allocation in a crab fishing 
year at the time of sale. Based on preliminary calculations, NMFS 
expects that 3 percent of ex[hyphen]vessel value would not cover the 
management and enforcement costs of the Program. NMFS proposes to begin 
the cost recovery program by using the maximum of 3 percent and, if 
possible, adjusting the fee downward in the following season. The fee 
percentage calculation adjusts for overpayment of the management and 
enforcement costs through a variable that considers the balance in the 
LASAF account.

Calculating Ex[hyphen]vessel Value

    The ex[hyphen]vessel value of a crab landing would equal the sum of 
all payments of monetary worth made to fishermen for the sale of crab 
(e.g., ex[hyphen]vessel value = cash payment + bait discount from 
processor + bonus). This would include any retro[hyphen]payments (e.g., 
bonuses, delayed partial payments, post[hyphen]season payments) made to 
any crab allocation holder for previously received crab. 
Retro[hyphen]payments would be part of the ex[hyphen]vessel value and, 
as such, carry a fee liability. The fee liability for 
retro[hyphen]payments would be based on the crab fee percentage in 
effect at the time the crab was received by the RCR. If crab allocation 
holders receive retro[hyphen]payments after the initial payment, but 
during the same crab fishing year, the cost recovery fee for those 
retro[hyphen]payments would be due by the following July 31. If 
retro[hyphen]payments were received by crab allocation holders during 
the year following the crab fishing year when those crab were landed, 
cost recovery fees associated with those post[hyphen]season 
retro[hyphen]payments would be due the following July 31. In other 
words, no matter when the crab was received by the RCR, the cost 
recovery fee would be due by July 31 of the crab fishing year following 
the crab fishing year in which payment was received.

Ex[hyphen]vessel Value

    Throughout this section, ``value'' refers to the worth, in U.S. 
dollars, of any amount of crab as determined by the sale, or potential 
economic return for the sale, of those crab. ``Value'' shall also 
include any money, services, or goods[hyphen]in[hyphen]kind exchanged 
for crab. ``Price'' is the worth in U.S. dollars, for 1 lb (0.45 kg) of 
crab debited from any allocation. Therefore, in this context, value and 
price mean the same thing only when describing the worth of 1 lb (0.45 
kg) of crab when sold. For purposes of determining cost recovery fees, 
NMFS would distinguish between two types of ex[hyphen]vessel values: 
``shoreside ex[hyphen]vessel value'' and ``CP ex[hyphen]vessel value.'' 
Shoreside ex[hyphen]vessel value would be the amount of money an RCR 
permit holder paid for any crab he or she received. As explained below, 
this proposed rule would establish CP ex[hyphen]vessel values to 
accommodate the special conditions for CPs who conduct processing on 
board the vessel.

Shoreside Processor Ex[hyphen]vessel Value

    For the shoreside processing sector, NMFS would define 
ex[hyphen]vessel value as the value paid by the RCR to the allocation 
holder at the time of receipt. Shoreside RCR permit holders would 
calculate and retain both the harvesting and processing sector's fee 
liability portions for any crab debited from an allocation based on the 
value paid for that crab. This method of determining ex[hyphen]vessel 
value for the shoreside processing sector requires no prior calculation 
of ex[hyphen]vessel value by NMFS because the shoreside processors 
would determine the ex[hyphen]vessel value at the time they receive the 
crab from the allocation holder. Shoreside processors would pay the 
actual ex[hyphen]vessel value, which they would also use to calculate 
fee liability.

CP Ex[hyphen]vessel Value

    For the CP sector, NMFS would calculate the ex[hyphen]vessel value 
based on a weighted average of previous years' shoreside 
ex[hyphen]vessel values. This method correlates with an existing method 
used to calculate standard prices under the halibut and sablefish IFQ 
program. NMFS determined that using the weighted average method for CPs 
represents the method best suited for achieving both equity and 
accurate accounting for the CP sector. Based on the information 
received through the electronic reporting system, NMFS would annually 
calculate and publish in the Federal Register a list of CP standard 
prices broken down by crab species, month, and port or port group.

[[Page 63242]]

    The CP standard prices would remain in effect until changed by the 
Regional Administrator through publication in the Federal Register the 
following year. The Regional Administrator would revise the CP standard 
prices annually based on information regarding current volume and value 
provided by RCRs operating as shoreside processors. The CP standard 
prices would be calculated by NMFS to reflect as accurately as 
practical the seasonal and regional variations in the shoreside 
ex[hyphen]vessel prices of crab.
    The information that would be reviewed by the Regional 
Administrator to determine CP standard prices would include the 
following: (1) Landed pounds by crab species, port or 
port[hyphen]group, and date; (2) Total ex[hyphen]vessel value by 
species, port or port[hyphen]group, and date; and (3) Price adjustments 
based on retro[hyphen]payments.

Fee Liability

    Under this proposed rule, NMFS would identify the crab cost 
recovery fee liability as the total fee owed by a crab allocation 
holder based on the applicable period's fee percentage and the 
ex[hyphen]vessel value for the crab species, as calculated according to 
Sec.  680.44(a)(2)(ii), including any retro[hyphen]payments, penalties, 
or interest. Fee liability would be calculated by multiplying the fee 
percentage by the ex[hyphen]vessel value of the crab. For example, a 
crab allocation holder who lands 10 pounds (4.54 kg) of crab at an 
ex[hyphen]vessel price of $1 a pound under a fee percentage of 3 
percent is subject to and must pay a fee of $0.03 for that crab.
    A fee liability would attach to any crab debited from an allocation 
during a crab fishing year. By using the ``debited'' designation rather 
than the term ``landed,'' NMFS created a more specific method of 
ensuring that RCRs properly apply fee liability to crab. The use of the 
term ``landed'' contradicts Council intent to avoid imposing fees on 
forfeited or confiscated crab. Although deadloss must be debited from 
allocations by statute and thus be subject to crab cost recovery fee 
liability, the ex[hyphen]vessel value of deadloss would most likely be 
$0 and would result in no fees.
    Fee Liability Calculation. The fee amount would be the product (in 
U.S. dollars) of multiplying the appropriate ex[hyphen]vessel value by 
the fee percentage (up to 3 percent). The RCR permit holder would 
document the calculations of fees based on applicable ex[hyphen]vessel 
values through the electronic reporting system provided by NMFS. The 
following example shows how an RCR permit holder would calculate fee 
liabilities.
    Example of Ex[hyphen]vessel Value Determination. A crab allocation 
fisherman makes a landing of Bristol Bay red king crab at Dutch Harbor 
in February that results in a debit of 1,000 lb (0.35 mt) from his or 
her allocation (1,000 raw crab pounds). He or she sells all the crab to 
a shoreside processor for $1.00 per pound. If the fee percentage is 3 
percent, then a shoreside RCR who receives the crab would deduct $.015 
for each pound of crab received from what he or she pays the allocation 
holder who landed the crab. The RCR would be responsible for an 
additional $.015 for each pound of crab received after payment to the 
allocation holder for a total of $.03 on every $1.00 of crab, or 3 
percent. On the other hand, a CP would be responsible for the full 3 
percent from the same landing of crab. The RCR would determine the 
ex[hyphen]vessel value as follows:

(Raw Crab Pounds Sold x Price per crab lb) x Fee Percentage = 
allocation or RCR Permit Holder Fee

CP: (1,000 IFQ lb x $1.00/IFQ lb) x 0.03 = $30.00

Shoreside Processor: (1,000 IFQ lb x $1.00/IFQ lb) x 0.015 = $15.00

Allocation Harvester: (1,000 IFQ lb x $1.00/IFQ lb) x 0.015 = $15.00

Fishing Year

    NMFS determined the need for a ``crab fishing year'' to accommodate 
biological and administrative requirements of the crab fishery. The 
proposed crab fishing year would run from July 1 to June 30 to support 
molting and mating requirements for crab, required biological surveys, 
the State's calculation of the TAC, and Federal administrative 
application and permitting requirements. The proposed rule would 
require all RCRs to submit all fee liabilities and any associated 
documentation by July 31 of the following crab fishing year.

Payment Submission

    Instead of a billing system similar to the halibut and sablefish 
IFQ program, this proposed rule would require all RCRs to retain, 
document, and submit all fee liabilities for themselves and any crab 
allocation holders from which they receive crab. NMFS determined that 
this method provides the highest degree of administrative efficiency 
with the lowest burden on the affected public. Under this method, NMFS 
would establish the fee percentage for the pending year based on a 
calculation similar to that used under the halibut and sablefish model. 
NMFS would publish the fee percentage calculation in the Federal 
Register prior to fishing for the pending crab fishing year. All RCRs 
would apply that fee percentage to any crab they receive or process 
during the period in which the fee percentage applies.
    RCR permit holders must collect all fee liabilities for any crab 
received and debited from a crab allocation throughout the fishing year 
and submit those fees by July 31 of the following crab fishing year. 
Early payments would be allowed but would not relieve an RCR permit 
holder from any associated reporting requirements.

Payment Compliance

    An RCR permit holder who has incurred a fee liability would be 
required to pay the fee to NMFS by July 31 of the year following the 
crab fishing year in which the applicable crab was debited from a crab 
allocation and payment was made. The issuance of new permits would be 
contingent on an RCR's submission of his or her full fee liability as 
indicated by his or her own reporting. NMFS would provide due process 
under an administrative appeals system similar to that of the halibut 
and sablefish IFQ program for any RCRs who choose to challenge any 
dispute regarding fee liability based on the RCRs own submitted data. 
However, no permit would be issued until his or her full fee liability 
is received or there is final agency action resolved in favor of the 
RCR. Furthermore, any RCR that fraudulently submits required 
information regarding cost recovery fee collection would face an 
enforcement action under the prohibitions for this section.
    If an RCR permit holder has made a timely payment to NMFS of any 
amount less than the fee liability indicated by the RCR permit holder's 
own reporting, the RCR permit holder has the burden of demonstrating 
the fee amount submitted is correct. If, upon preliminary review of the 
accuracy and completeness of a fee payment, NMFS determines the RCR 
permit holder has not paid a sufficient amount, NMFS would, at any time 
thereafter, send an IAD to the RCR permit holder. The IAD would present 
the facts, explain those facts within the context of the relevant 
agency policies and regulations, and make a determination as to the 
appropriate disposition of the matter. In the IAD, NMFS would explain 
that the RCR permit holder's estimated fee liability failed to 
correspond with the RCR permit holder's own reporting and would provide 
the correct fee liability due as calculated from the RCR permit 
holder's own reporting. Upon issuance

[[Page 63243]]

of an IAD, NMFS may withhold issuance of any new IFQ, IPQ, or RCR 
permit and disapprove any transfer of IFQ, IPQ, PQS, and/or QS to or 
from the RCR permit holder until final agency action is taken. An 
aggrieved RCR permit holder could appeal an IAD through the OAA as 
described at Sec.  679.43. An IAD that is not appealed to the OAA 
within 60 days of issuance in NMFS would become a final agency action.
    Upon final agency action, the RCR would remain subject to several 
conditions. If the final agency action determines the RCR permit holder 
owes additional fees and if the RCR permit holder has not paid such 
fees, no new RCR, IFQ, or IPQ permit(s) would be issued to the RCR 
permit holder for the current or subsequent crab fishing years until 
the required payment is received by NMFS. Additionally, the RCR permit 
holder would continue to be restricted from transferring or receiving 
by transfer any PQS, QS, IFQ or IPQ. An RCR permit holder could pay, 
under protest, the disputed fee difference in order to avoid permit 
restrictions. If NMFS does not receive the required payment within 30 
days of the issuance of the final agency action, NMFS would refer the 
matter to the appropriate authorities within the U.S. Treasury for 
purposes of collection.

Limited Access System Administrative Fund (LASAF)

    Most of the fees collected would be deposited in the LASAF 
established in the U.S. Treasury. Up to 25 percent could be deposited 
separately in the U.S. Treasury and made available to cover the costs 
of the loan program, as required by sections 304(d)(2)(C) and 313(j) of 
the Magnuson[hyphen]Stevens Act. Separate accounts would be created 
within the LASAF to ensure that NMFS would use funds from the Program's 
cost recovery only to pay for the costs directly related to the 
management and enforcement of the Program, and not other limited access 
programs.

Community Development Quota Fee Provisions

    Section 304(d)(2)(A) of the Magnuson[hyphen]Stevens Act requires 
the Secretary to collect a fee to recover the actual costs directly 
related to the management and enforcement of any community development 
quota program. Community development quota programs under the Program 
include those CDQ allocations established under section 305(i). 
Additionally, Magnuson[hyphen]Stevens Act section 313(j) requires the 
Secretary to collect a fee to recover the actual costs directly related 
to the management and enforcement of the Adak community allocation. 
NMFS and ADF&G believe there would be increased management and 
enforcement costs associated with the CDQ and Adak community 
allocations under the Program. Therefore, all fee liability provisions 
would apply equally to any allocation of crab regardless of its 
designation under the Program.
    Section 305(i)(3), requires the Secretary to deduct the costs 
incurred by participants in a community development quota program for 
observer and reporting requirements that are in addition to observer 
and reporting requirements of other participants in the fishery from 
any fees collected under section 304(d)(2). ADF&G confirmed its 
intention to manage the Adak community allocation similar to a CDQ 
allocation under its management authority. ADF&G also stated it does 
not intend to impose any observer and reporting requirements for the 
community allocations beyond those required for any other allocation 
under the Program. Therefore, no deductible costs would exist for any 
community development quota program under this Program. This allows for 
a uniform and administratively simple fee calculation and payment 
system for the entire cost recovery program.

Annual Report

    NMFS would publish an annual report on the performance of the cost 
recovery program. The annual report, which could be included with other 
reports on the performance of the Program, would provide information 
regarding the amount of the fees received by NMFS, the disposition of 
the fees, the status of the Program's account in the LASAF, and the 
Program costs for the previous year.

Section 679.5 Recordkeeping and Reporting (R&R)

    In Sec.  679.5, paragraph (a)(7)(i) would be revised by adding a 
new paragraph (a)(7)(i)(B) to describe the added fishing activities of 
shoreside processors and stationary floating processors (SFPs) of 
``purchase or arrange to purchase'' and by redesignating (a)(7)(i)(B) 
through (E) as (a)(7)(i)(C) through (i)(F), respectively. Newly 
redesignated paragraph (a)(7)(i)(C) would be revised by removing 
reference to shoreside processors and SFPs.
    The longline and pot gear daily fishing logbook (DFL) and longline 
and pot gear daily cumulative production logbook (DCPL) would be 
revised for use by the operator on crab catcher vessels of all lengths 
and on all crab CPs. In Sec.  679.5, paragraph (C)(1) would be revised 
to include crab numbers, crab weight in pounds, and Federal crab vessel 
permit number.
    In Sec.  679.5, regulations for the product transfer report (PTR), 
as well as the PTR form, would be revised so the PTR could also be used 
to document shipments of crab managed under 50 CFR part 680. Paragraph 
(g)(1) would be revised by splitting the paragraph into three 
subparagraphs. Paragraph (g)(1)(i) would describe PTR requirements when 
documenting shipments of groundfish. The operator of a mothership or CP 
or the manager of a shoreside processor or SFP is responsible for the 
PTR. Paragraph (g)(1)(ii) would describe PTR requirements when 
documenting shipments of IFQ halibut, IFQ sablefish, and CDQ halibut. 
The Registered Buyer is responsible for the PTR. Paragraph (g)(1)(iii) 
would describe new PTR requirements when documenting shipments of crab. 
The RCR would be responsible for the PTR.
    The requirements for the receiver of fish to submit a PTR would be 
removed from Sec.  679.5(g). The NOAA Fisheries Office for Law 
Enforcement (OLE) has determined that it is no longer necessary for a 
receiver to submit a PTR. Therefore, only shipments of fish would be 
documented on a PTR.
    In Sec.  679.5, a new heading, ``Exceptions'' would be added as new 
paragraph (g)(2). Paragraphs (g)(1)(i) through (iii) and (g)(1)(v) and 
(vi) would be redesignated as (g)(2)(i) through (v), respectively. 
Paragraph (g)(1)(iv) would be removed because the requirement for 
receivers to submit a PTR is removed. Newly redesignated paragraph 
(g)(2)(i) ``Bait sales (non[hyphen]IFQ groundfish only)'' would be 
revised to clarify the requirement. Newly redesignated paragraph 
(g)(2)(ii) ``Retail sales'' would be revised to create paragraphs 
(g)(ii)(A) and (ii)(B). Paragraph (g)(ii)(A) would address existing 
requirements for retail sales of IFQ halibut, IFQ sablefish, CDQ 
halibut, and non[hyphen]IFQ groundfish. Paragraph (g)(ii)(B) would add 
new requirements for retail sales of crab. Newly redesignated paragraph 
(g)(iv)(A) ``Dockside sales'' would be revised by removing ``IFQ fish'' 
and adding in its place ``IFQ halibut and IFQ sablefish.'' Newly 
redesignated paragraph (g)(v) ``Transfer directly from the landing site 
to a processing facility ...'' would be revised to include shipment of 
crab. Paragraph (g)(v)(A) would address the current IFQ landing report 
receipt requirements for CDQ halibut, IFQ halibut, and IFQ sablefish. 
Paragraph (g)(v)(B) would describe new requirements for crab landing 
report receipt. Paragraphs (g)(v)(A) and

[[Page 63244]]

(g)(v)(B) would further be revised by removing ``(Internet or 
transaction terminal receipt)'' and by adding in its place ``(Internet 
receipt).'' Paragraphs (g)(v)(C) and (g)(v)(D) would be revised to 
include the crab landing report receipt.
    Newly redesignated paragraph (g)(3) would be revised to include 
requirements for an RCR. Paragraph (g)(3)(iii) would be revised to 
remove ``ensure ... a revised PTR is submitted'' and would be replaced 
by ``submit a revised PTR.''
    The heading of newly redesignated paragraph (g)(4) would be revised 
by removing ``general information'' and by adding in its place 
``required information.'' Paragraph (g)(4) would be revised to include 
requirements for an RCR. Paragraph (g)(4)(i) would be revised. The OLE 
has determined that a confirmation number documenting receipt of a PTR 
by NMFS would be beneficial to record tracking. The fishermen would 
submit the PTR to OLE, who would return by e[hyphen]mail the 
confirmation number for each PTR submitted.
    The vessel activity report (VAR) would be revised for use by the 
operator on crab vessels required to obtain a Federal Crab Fishing 
Vessel permit. Section 679.5(k) would be revised to require a catcher 
vessel of any length that is required to obtain a Federal Crab Fishing 
Vessel permit that has fish, fish products, shellfish, or shellfish 
products to submit a VAR prior to crossing the seaward boundary of the 
EEZ off Alaska or the U.S.[hyphen]Canadian international boundary 
between Alaska and British Columbia.
    Use of the ATM terminals for submitting IFQ landing reports for IFQ 
halibut, IFQ sablefish, and CDQ halibut would be removed, because ATM 
terminals and associated printers have become obsolete, in fact have 
not been manufactured since 2001. It is no longer possible to obtain 
new units or parts for existing terminals or ribbons for the printers.
    Internet and ATMs are completely different technologies, that 
require entirely separate software to run them. NMFS Alaska Region can 
no longer afford staff resources to maintain two electronic reporting 
systems for IFQ halibut, CDQ halibut, and IFQ sablefish.
    Internet is easier and more convenient for constituents to use and 
less prone to result in incorrect account. Users would have a larger 
screen with which to review all data at the same time and make 
corrections before submitting as compared with the small LED display 
for ATMs. Another advantage of the Internet is the fact that users 
won't have to upgrade every time software changes. Internet use costs 
are relatively low. There would be no NMFS telephone charges or 
equipment maintenance. Because IFQ fees are charged for NMFS program 
costs, user fees may well be lower when ATMs are no longer used.
    All of NMFS Alaska Region reporting within the next 1-2 years is 
planned to be via an Internet- based interagency electronic ``fish 
ticket'' or ``shared reporting system'' with the State of Alaska and 
International Pacific Halibut Commission. The ATMs are obsolete when 
compared with this envisioned new system.
    NMFS Alaska Region introduced use of an Internet alternative for 
IFQ landing reports in June 2002. In 2004, 97 percent of reports were 
submitted electronically, and of all reports, 84 percent were made 
using the Internet system. In 2004 to date, all but 12 of the locations 
from which landings were filed have used the Internet at least once, 
indicating that almost everyone has the capability to use the Internet. 
However, since 1995, NMFS Alaska Region has offered a limited-use 
manual backup system for those persons who are unable to report 
electronically.
    In Sec.  679.5, text referring to the ATM terminal would be removed 
from paragraphs (l)(2)(iii)(M), (l)(2)(iv), (l)(2)(iv)(A), 
(l)(2)(iv)(C), and (l)(2)(iv)(D). In addition, the Federal Fisheries 
Permit application would be revised to remove references to the ATM 
terminal.
    In Sec.  679.5(l), two of the existing IFQ forms would be revised 
for use by the operator on crab vessels of any length required to 
obtain a Federal Crab Fishing Vessel permit: Paragraph (l)(3) would be 
revised to require a transshipment authorization from an OLE clearance 
officer prior to crab or crab products being transferred between 
vessels.
    In Sec.  679.5, paragraph (l)(4) would be revised to require the 
RCR to submit a Departure Report prior to departing the waters of the 
EEZ adjacent to the jurisdictional waters of the State of Alaska, the 
territorial sea of the State of Alaska, or the internal waters of the 
State of Alaska when crab are on board.
    In Sec.  679.28, paragraph (f)(4)(i) would be changed by adding the 
requirements to enter the Federal crab vessel permit number to the VMS 
check[hyphen]in report and by removing outdated text ``and 
approximately when and where the vessel began fishing.'' Removal of 
this outdated text would align the regulations at Sec.  679.28 with 
NMFS' current VMS policy.
    A new Table 13 to part 679--Transfer Form Summary--would be added. 
This table previously occurred in the regulatory text at Sec.  
679.5(a)(15) as an intext table. Table 13 would be revised to include 
paperwork requirements for crab transfers. In Section 679, paragraph 
(a)(15) would be revised to reference Table 13.
    Table 14a to part 679--Port of Landing Codes, Alaska--and Table 14b 
to part 679--Port of Landing Codes, Non[hyphen]Alaska--would be 
indicated for use by crab participants completing paperwork 
requirements. Table 14b would be revised by moving the port of Olympia 
from the state of Oregon and placing it under the state of Washington. 
Table 14c At[hyphen]sea Operation Type Codes would be added for use by 
crab participants.
    Table 15 to part 679--Gear Codes, Descriptions, and Use--would be 
indicated for use by crab participants completing paperwork 
requirements. Table 15 would be revised by adding a column for crab and 
indicating pot gear.
    Part 680 would have nine tables to support the regulatory text. 
Table 1 to Part 680--Crab Rationalized (CR) Fisheries--presents the 
crab species that are included in the Crab Rationalization Program and 
areas where each crab species occurs. The coordinates for each area are 
given in latitude and longitude. A 3[hyphen]digit alphabetic code is 
given for each combination of crab species and area.
    Table 2 to Part 680--Crab Species Codes--presents 3[hyphen]digit 
numeric species codes for the crab species that occur in the EEZ off 
the coast of Alaska. Both common names and Latin names are provided.
    Table 3a to Part 680--Crab Delivery Condition Codes--presents codes 
to represent the condition of the shellfish at the point it is weighed 
and recorded on an ADF&G fish ticket.
    Table 3b to Part 680--Crab Disposition or Product Codes--presents 
codes to represent the product that was made from the crab or whether 
the crab was used for personal use.
    Table 4 to Part 680--Crab Process Codes--presents codes to 
represent the process used to create the crab product.
    Table 5 to Part 680--Crab Size--presents codes to represent the 
size of crab product.
    Table 6 to Part 680--Crab Grade--presents codes to represent 
quality of crab product.
    Table 7 to Part 680--Eligibility for Initial Issuance of Crab QS by 
Crab QS Fishery--presents the qualifying years for CVO and CPO QS, the 
qualifying years for CVC and CPC QS, recent participation seasons for 
CVC and CPC QS, and subsets of qualifying years that

[[Page 63245]]

can be used to calculate QS for each QS fishery.
    Table 8 to Part 680--Initial QS and PQS Pool for each Crab QS 
Fishery--presents the initial QS pool for the eight crab QS fisheries.
    Table 9 to Part 680--Eligibility for Initial Issuance of Crab PQS 
by Crab QS Fishery--presents for each crab QS fishery, the qualifying 
periods used to determine the allocation of PQS.

Classification

    The Magnuson[hyphen]Stevens Act mandates that NMFS approve 
Amendment 18 to the FMP by January 1, 2005. At this time, NMFS has not 
determined that Amendment 19 and the provisions in this rule that would 
implement Amendments 18 and 19 are consistent with the national 
standards of the Magnuson[hyphen]Stevens Act and other applicable laws. 
NMFS, in making the determination that this proposed rule is 
consistent, will take into account the data, views, and comments 
received during the comment period (see DATES).
    A Regulatory Impact Review (RIR) was prepared to assess all costs 
and benefits of available regulatory alternatives. The RIR considers 
all quantitative and qualitative measures. The Program was chosen based 
on those measures that maximize net benefits to affected participants 
in the BSAI crab fisheries. Additionally, a draft initial regulatory 
flexibility analysis (IRFA) was prepared that describes the impact this 
proposed rule would have on small entities. Copies of the RIR/draft 
IRFA prepared for this proposed rule are available from NMFS (see 
ADDRESSES).
    The complete IRFA includes the draft IRFA and this preamble 
document. The IRFA describes in detail the reasons why this action is 
being proposed, describes the objectives and legal basis for the 
proposed rule, and discusses both small and non[hyphen]small regulated 
entities to adequately characterize the fishery participants. Section 
313(j) of the Magnuson[hyphen]Stevens Act provides the legal basis for 
the proposed rule, namely to achieve the objective of reducing 
excessive fishing capacity and ending the race for fish under the 
current management strategy for commercial fishing vessels operating in 
the BSAI crab fisheries. By ending the race for fish, NMFS expects the 
proposed action to increase resource conservation, improve economic 
efficiency, and address social concerns.
    The IRFA contains a description and estimate of the number of small 
entities to which the proposed rule would apply. Approximately 236 
entities own crab harvest vessels that are directly regulated under the 
alternatives considered. Of those entities, 223 are small entities 
because they either generated 3.5 million or less in gross revenue, 
based on participation in 1998, 1999, or 2000, or they are independent 
entities not affiliated with a processor that would increase the 
entities average revenue above the small business size standards. 
Thirteen of the entities (owning 38 vessels) are considered 
non[hyphen]small entities. NMFS requests public comment on which small 
business size standard is appropriate for catcher processors: the 
catcher vessel size standard or the processor size standard (see 
ADDRESSES).
    A total of 134 entities made at least one crab landing from 1991 to 
2000, but do not appear to qualify for an initial allocation of QS. 
Five of these entities are not small entities and 129 qualify as 
``small'' by SBA standards. The non[hyphen]small entities owned a total 
of nine catcher vessels. The small entities owned a total of 155 
catcher vessels and one CP. By and large, vessels that do not qualify 
for the Program either left the fishery or currently fish under interim 
LLP licenses. Moreover, the vessels the IRFA considers 
``non[hyphen]qualified'' could not or would not be allowed to continue 
fishing under the current LLP. The impacts to the small entities that 
would be prohibited from fishing by the LLP were analyzed in the RIR/
IRFA and FRFA prepared for the LLP. Therefore, the non[hyphen]qualified 
vessels are not considered impacted by the proposed rule and are not 
discussed in this IRFA.
    Eight small entities and nine non[hyphen]small entities appear to 
qualify for processor allocations based on participation during 1998 
and 1999. These totals exclude CPs, which are included in the vessel 
discussion. The nine inshore processors are considered non[hyphen]small 
entities because they appear to exceed the ``500 or more employees'' 
threshold when all their affiliates, worldwide, are included. The nine 
large processing entities owned 28 separate crab processing facilities, 
and the eight small processing entities owned 10 plants. 
Forty[hyphen]three small processing entities (owning 50 plants) appear 
not to qualify for initial PQS allocations.
    Thirteen communities could be directly impacted by the 
regionalization provisions under consideration. The overall impact on 
communities cannot be determined until NMFS makes all of the 
allocations of processing shares. At a minimum, St. Paul, St. George, 
Adak, Akutan, Dutch Harbor, King Cove, False Pass, Ninilchik, Homer, 
Port Moller, Cordova, and Kodiak possess recorded landings in the crab 
fisheries under any of the alternatives. The communities where these 
processors are located would all be considered small government 
jurisdictions. Each of the communities have populations well under the 
50,000 limit for consideration as a small entity.
    Other supporting businesses may also be indirectly affected by this 
action if it leads to fewer vessels participating in the fishery. These 
impacts are treated in the RIR prepared for this action (see 
ADDRESSES).
    The Council considered an extensive and elaborate series of 
alternatives, options, and suboptions as it designed and evaluated the 
potential for rationalization of the BSAI crab fisheries, including the 
``no action'' alternative. The RIR presents the complete set of 
alternatives, in various combinations with the complex suite of 
options. The EIS presents four alternative programs for management of 
the BSAI crab fisheries, namely, Status Quo/No Action (Alternative 1); 
the Crab Rationalization Program (Alternative 2); an Individual 
Fisherman's Quota (IFQ) Program (Alternative 3); and a Cooperative 
Program (Alternative 4). These alternatives constitute the suite of 
``significant alternatives'', under the proposed action, for RFA 
purposes. Each is addressed briefly below. Please refer to the EIS and 
its appendices for more detail (see ADDRESSES). The following is a 
summary of the contents of those more extensive analyses, specifically 
focusing on the aspects which pertain to small entities.
    Under the status quo, the BSAI crab fisheries have followed the 
well known pattern associated with managed open access. Enticed by the 
prospect of capturing 100 percent of the benefits, while externalizing 
all but a very small ``common'' share of the cost of an individual 
fishing decision (i.e., no enforceable ownership rights to ration 
access) these BSAI crab fisheries have been characterized by 
``race[hyphen]for[hyphen]fish'', capital stuffing behavior, excessive 
risk taking, and a dissipation of potential rents. In the face of 
substantial stock declines, participants in these fisheries are 
confronted by significant surplus capacity (in both the harvesting and 
processing sectors), financial distress (for some, failure), and 
widespread economic instability, all contributing to resource 
conservation and management difficulties.
    In response to worsening biological, economic, social, and 
structural conditions in many of the BSAI crab fisheries, the Council 
found that the status quo management structure was causing significant 
adverse impacts to the participants in these fisheries, as well as the 
communities that depend on these fisheries. As indicated in the

[[Page 63246]]

IRFA, many small entities, as defined under RFA, are negatively 
impacted under current managed open access rules. The management tools 
in the existing FMP (e.g., time/area restriction, LLP, pot limits) do 
not provide managers with the ability to effectively solve these 
problems, thereby making Magnuson[hyphen]Stevens Act goals difficult to 
achieve and forcing reevaluation of the existing FMP.
    In an effort to alleviate the problems caused by excess capacity 
and the race for fish, the Council determined that the institution of 
some form of rationalization program is needed to improve crab 
fisheries management in accordance with the Magnuson[hyphen]Stevens 
Act.
    The IFQ alternative would, as the name implies, allocate individual 
shares of the crab TAC to harvesters, imparting a 
``quasi[hyphen]private property interest'' (i.e. a transferrable access 
privilege) in a share of the TAC, thus removing the undesirable 
``common property'' attributes of the status quo on qualifying 
harvesters. The rationalization of the BSAI crab fisheries would likely 
benefit the approximately 223 businesses that own harvest vessels and 
are considered small entities. In recent years these entities have 
competed in the race to fish against larger businesses. The IFQ 
alternative would allow these operators to slow their rate of fishing 
and give more attention to efficiency. Some of these operations and the 
vessels they use could be negatively impacted if the allocations they 
qualify for are small and cannot be fished economically. The 
participants, however, would be permitted to lease or sell their 
allocations, and could obtain some return from their allocations. 
Differences in efficiency implications of rationalization by business 
size cannot be predicted. Some participants believe that smaller 
vessels could be more efficient than larger vessels in a rationalized 
fishery because a vessel only needs to be large enough to harvest the 
IFQ. Conversely, under open access, a vessel has to be large enough to 
out compete the other fishermen and, hence, the overcapacity problems 
under the race for fish. If that is true, it is possible that some of 
the smaller participants in the fishery could increase their activity 
(by purchasing or leasing QS/IFQ) in a rationalized fishery.
    However, the IFQ alternative would fail to protect the economic and 
social interests of other participants, also dependent on these crab 
fisheries, namely, processor and community entities. As the analysis in 
the RIR demonstrates, while harvesters clearly benefit, the IFQ 
alternative likely would increase the negative economic impacts 
relative to status quo on processor and community small entities. 
Specifically, as discussed in the RIR and SIA, harvesters may deliver 
crab to new processors in locations with more access to the outside 
world, forcing the closing of processing facilities in remote areas, 
such as Saint Paul, Saint George, and Unalaska/Dutch Harbor.
    The Cooperative alternative yields many of the positive economic, 
social, and structural results cited above for the IFQ alternative. In 
addition, however, the Cooperative alternative holds out the promise of 
providing efficiency gains to both small entity harvesters and the 
processors. Data on cost and operating structure within each sector are 
unavailable, so a quantitative evaluation of the size and distribution 
of these gains, accruing to each sector under this management regime, 
cannot be provided. Nonetheless, it appears that the Cooperative 
alternative offers all of the same ``improvements'' over the status quo 
as does the IFQ alternative (e.g, institution of 
``rights[hyphen]based[hyphen]management'' structure, reduction in 
uncertainty) while including another of the populations of participants 
the Council expressed explicit concern about protecting, in its problem 
statement and objectives for this action (i.e., crab processors). 
While, on the basis of available information, the Cooperative 
alternative appears to minimize negative economic impacts on small 
entities to a greater extent than does an IFQ alternative, and both 
appear to minimize negative economic impacts compared to the Status 
Quo, it is apparent, on the basis of the EIS and RIR analyses, that the 
Cooperative alternative does not extend the benefits of rationalization 
to the third population of small entities, fishery dependent 
communities.
    After an exhaustive public process, spanning several years, the 
Council concluded that the Program best accomplishes the stated 
objectives articulated in the problem statement and applicable 
statutes, and minimizes to the extent practicable adverse economic 
impacts on the universe of directly regulated small entities. This 
proposed rule would implement the Program.
    The Program makes three separate allocations; one to the harvest 
sector, one to the processing sector, and one to defined regions. All 
three allocations are based on historic participation to protect 
investment in and reliance on the fisheries. Harvesters would receive 
harvest allocations, processors would receive processing allocations, 
and regions would receive allocations of landings and processing 
activity. These three separate allocations are also intended to 
mitigate the negative effects of the transition from a regulated open 
access race[hyphen]for[hyphen]fish to rationalized fisheries, burdens 
which tend to fall most heavily on small entities.
    The competing interests of harvesters and processors, many of which 
are small entities, are balanced by allocating different portions of 
the total harvest to the two sectors. Harvesters would be allocated 
harvest shares for 100 percent of the TAC, minus the community 
allocations. Processors would be allocated processing shares for 90 
percent of the TAC. To ensure corresponding allocations to the two 
sectors, 90 percent of the harvest allocation is allocated as Class A 
IFQ that require delivery to a processor that holds IPQ. The remaining 
10 percent would be Class B IFQ shares that can be delivered to any 
processor. Under the Program, harvesters (many of whom, as noted, are 
small entities) would be permitted to form cooperatives to achieve 
efficiencies and reduce transaction costs through the coordination of 
harvest activities and deliveries to processors.
    Small harvester entities that receive allocations large enough to 
support their participation could benefit from not needing to 
participate in the race for fish, as with the IFQ alternative. The 
portion of the fishery allocated as Class B IFQ, also known as open 
delivery IFQ, would also impact the effects of the Program on small 
harvesters, since Class B IFQ are likely to provide harvesters with 
additional power in their delivery negotiations with processors.
    Small processors appear to have been exiting the crab fishery in 
recent years as the harvest levels have declined and seasons have been 
compressed. The proposed rule would allocate PQS to processors that 
participated in the fishery in either 1998 or 1999. ``Small'' 
processors that plan to enter or reenter the crab fisheries (but did 
not participate during the qualifying years) would be allowed to 
process crab harvested with Class B IFQ and CDQ crab. Class B IFQ and 
CDQ crab would provide a mechanism for small processors to enter the 
fishery without large capital outlays to purchase PQS or IPQ. Class B 
IFQ, however, would reduce the allocation of PQS to the small and large 
processors that qualify for the Program. Class B IFQ therefore may 
negatively impact small processors, if they are unable to compete with 
large processors in the market place for the Class B IFQ.

[[Page 63247]]

    To resolve impasses in price negotiations, a potentially crippling 
occurrence for the smaller operators, the Program would include a 
mandatory binding arbitration program for the settlement of price 
disputes between harvesters and processors. Historically, prices have 
been settled by protracted, often contentious negotiations, from time 
to time resulting in harvesters delaying fishing (i.e., strikes), which 
can be detrimental to all concerned. An effective system of binding 
arbitration could protect the interests of both sectors in 
negotiations, while avoiding costly delays in fishing due to strikes.
    A number of small governmental jurisdictions would be directly 
regulated by, and therefore could be impacted by, this proposed rule. 
All communities benefitting from these special provisions of the 
proposed rule are ``small'', under SBA criteria. Community interests 
have been explicitly considered in the Program, and special provisions 
have been included to minimize (to the extent practicable) adverse 
impacts on these small entities. Under these provisions the degree of 
protection would likely vary community[hyphen]to[hyphen]community.
    The allocation to regions is accomplished by regionally designating 
all Class A IFQ (delivery restricted) and all corresponding IPQ. In 
most fisheries, regionalized IFQ and IPQ are either North or South, 
with North IFQ designated for delivery in areas on the Bering Sea north 
of 56[deg]20' north latitude and South IFQ designated for any other 
areas, including Kodiak and other areas on the Gulf of Alaska. IFQ and 
IPQ designations are based on the historic location of the landings and 
processing that gave rise to the shares. The proposed rule would also 
increase the allocation of crab to CDQ groups from 7.5 percent to 10 
percent, providing additional aid to the 65 CDQ communities (all small 
entities).
    Community processing requirements in the first two years of the 
Program and ROFR would benefit communities with history supporting 
initial allocations and are intended to protect community interests. 
The ROFR provisions are likely to benefit communities that are more 
capable of exercising the right. Under the more general regional 
protection, processing activity could move between communities in a 
region. This is likely to benefit those communities able to attract 
additional processing activity from other communities in the region and 
harm communities that processing activity leaves. IPQ caps would 
benefit communities able to attract processing in years of high total 
harvest. Additionally, CDQ groups would be able to purchase QS and PQS 
to increase their participation in the BSAI crab fisheries above the 
CDQ allocation.
    The proposed rule also contains several additional measures to 
protect various interests. Eligible crew would receive 3 percent of the 
initial allocation of QS. Sideboards would limit the activity of crab 
vessels in other fisheries (such as the GOA groundfish fisheries) to 
protect participants in those fisheries from a possible influx of 
activity that could arise from vessels that exit the crab fisheries, or 
are able to time activities to increase participation in other 
fisheries. While these benefactors of this provision are not directly 
regulated, and therefore not counted among the entities addressed in 
this IRFA, they are predominantly small entities.
    Fish taxes would likely be redistributed with any redistribution of 
processing activity. In addition, the provision of support services and 
associated sales taxes would likely be redistributed to some extent by 
redistribution of landings in a rationalized fishery. Increased 
efficiency in the fisheries arising from the Program could reduce the 
demand for support services, impacting sales tax revenues, if the fleet 
is able to reduce their overall costs. These impacts may occur in large 
and small communities. Since the redistribution of activity and the 
increased efficiency cannot be predicted these effects cannot be fully 
characterized. Additional analysis of community impacts is contained in 
the Social Impact Analysis, EIS Appendix 3 (see ADDRESSES).
    Implementation of the proposed rule would change the overall 
reporting structure and recordkeeping requirements of the participants 
in the BSAI crab fisheries. Under the statutorily mandated proposed 
rule, all participants would be required to provide additional 
reporting. Each harvester would be required to track harvests to avoid 
exceeding his or her allocation. As in other North Pacific rationalized 
fisheries, processors would provide catch recording data to managers to 
monitor harvest of allocations. Processors would be required to record 
deliveries and processing activities to aid in the Program 
administration.
    NMFS would be required to develop new databases to monitor 
harvesting and processing allocations. These changes could require the 
development of new reporting systems. The costs of NMFS' monitoring of 
the fisheries would be passed to participants through the cost recovery 
program.
    To participate in the Program, persons would be required to 
complete application forms, transfer forms, EDR forms, reporting 
requirements, and other collections[hyphen]of[hyphen]information. These 
the forms are either required by the Magnuson[hyphen]Stevens Act or 
required for the administration of the Program. These forms impose 
costs on small entities in gathering the required information and 
completing the forms.
    We have estimated the costs of complying with the reporting 
requirements based on the burden hours per response, number of 
responses per year, and a standard estimate of $25 per burden hour 
(except the estimate for the EDR forms is $100 per burden hour). 
Persons would be required to complete most of the forms at the start of 
the Program, like applications for initial issuance of QS/PQS and the 
historic EDR. Persons would be required to complete some forms every 
year, like applications for IFQ/IPQ and annual EDRs. Participation in 
the binding arbitration program would be also be annual. Additionally, 
reporting would be completed more frequently.
    The proposed rule also includes a comprehensive data collection 
program, which would require participants to submit detailed economic 
data concerning their participation in these fisheries. The data 
collection program is intended to provide managers with better 
information concerning the fisheries to aid in management and to limit 
negative unintended consequences arising from management decisions. 
Under the required data collection program, NMFS minimized the cost and 
time burden associated with the data collection components by breaking 
down the program into specific forms directed at specific segments of 
the fishery. Although most participants collect data similar to that 
which would be collected by the data collection program for making 
business decisions, the data collection program could impose additional 
recordkeeping requirements on participants in the fisheries. The 
detailed level of data required would likely require some additional 
data compilation and reporting beyond the status quo. Professional 
assistance, such as accounting services, are likely to be necessary for 
most participants to comply with these requirements. NMFS estimates 
that it would cost small entities that hold CVO QS and PQS 
approximately $1,503 to complete the historic EDR and an additional 
$1,503 to complete the annual EDR every year. It would cost small 
entities that hold CPO QS $2,503 to complete each EDR

[[Page 63248]]

because they would report both harvesting and processing information.
    It would cost participants in the Program $56 to complete 
applications to receive an initial allocation of QS and PQS, $55 for 
the annual application for IFQ and PQS, $61 to complete the 
one[hyphen]time application to be eligible to receive transfers, and 
$61 to complete a transfer application. Additionally, it would cost 
processors who intend to process crab $16 to complete an RCR permit 
application. It would cost an ECCO $64 to complete the Application to 
Become an ECCO and $54 to complete the Application to Transfer Crab QS/
IFQ to or from the ECCO. Additionally, it would cost an ECCO $206 to 
complete the required annual report.
    Congress directed the implementation of much of the proposed 
Program through statute. To the extent that the statute allowed 
flexibility, NMFS considered multiple alternatives to effectively 
implement specific provisions within the proposed Program through 
regulation. In each instance, NMFS attempted to impose the least burden 
on the public, including the small entities subject to the Program.
    The CR crab landing report (internet version and optional fax 
version) would be used to debit crab landings. All retained crab catch 
must be weighed, reported, and debited from the appropriate IFQ account 
under which the catch was harvested and IPQ account under which the 
catch was processed. Under recordkeeping and reporting, NMFS considered 
the options of a paper based reporting system or an electronic 
reporting system. NMFS chose to implement an electronic reporting 
system as a more convenient, accurate, and timely method of reporting. 
Additionally, the proposed electronic reporting system would provide 
continuous access to IFQ and IPQ accounts. These provisions would make 
recordkeeping and reporting requirements less burdensome on 
participants by allowing participants to more efficiently monitor their 
accounts and fishing activities. NMFS recognizes that participants in 
the current fishery might be more comfortable with the paper based fish 
ticket system, but believes that the added benefits of the electronic 
reporting system outweigh any benefits of the paper based system. 
However, NMFS would also provide an optional lower tech backup using 
existing telecommunication and paper based methods, which would reduce 
the burden on small entities in more remote areas possessing less 
electronic infrastructure.
    As an IFQ system, the Magnuson[hyphen]Stevens Act requires NMFS to 
collect cost recovery fees associated with the monitoring and 
enforcement of the proposed Program. The fees would be charged to 
harvesters and processors based on the amount of IFQ and IPQ used by 
each IFQ and IPQ holder. The initial amount of the fee would be 3 
percent of the ex[hyphen]vessel value of each fishery. We can not 
calculate the actual amount of the fee for each fishery in each year 
because we can not predict the future TACs or future ex[hyphen]vessel 
values. NMFS considered options that included: (1) collection and 
payment individually by harvesters and processors under a billing 
system, and (2) collection of fees from the harvester by the processor 
and self[hyphen]collection of processor fees under an annual fee 
submission process. NMFS determined that the collection of all fees 
from the harvesting and processing sector by the receiving processor 
for submission to NMFS on an annual basis would impose the least 
administrative burden on the affected public. The collection of fees by 
the receiving processor corresponds with the existing requirement for 
many processors to collect excise taxes from delivering harvesters in 
other fisheries. Additionally, rather than use the calendar year for 
administrative purposes, NMFS negotiated an administrative year for the 
program that accommodates fee collection by imposing the most 
significant administrative burden on the affected participants during 
the time of year when the crab fisheries are closed.
    Under this proposed rule, CPs would be required to purchase and 
install motion[hyphen]compensated scales to weigh all crab 
at[hyphen]sea. Such scales would cost on a one[hyphen]time basis, 
approximately $25,000 per vessel. Additional costs on a one[hyphen]time 
basis associated with the installation of the scales are estimated to 
be between $10,000 and $40,000, depending on the extent to which the 
vessel must be reconfigured to install the scale. Scale monitoring 
requirements would cost approximately $6,235 per year. Based on 
discussions with equipment vendors, NMFS estimates that 8 CPs, one of 
which is a small entity, would choose to fish CPO or CPC IFQ.
    NMFS considered, but rejected, the use of product weight and 
recovery rates (PRRs) in favor of the use of at[hyphen]sea scales for 
catch accounting on CPs. NMFS rejected the use of PRRs for several 
reasons. First, the technology for weighing catch at-sea is well 
developed, and NMFS believes that the catch weights generated from 
these scales produce the best available data for catch accounting 
purposes. Second, recovery rates are not well known for many stocks, 
and, because recovery could vary with season, the rates may change when 
fishing occurs over a larger portion of the year. Third, glaze 
percentages on CPs product vary widely. If NMFS chose to use PRRs, NMFS 
must either apply vessel specific rates that incorporate glaze 
percentages or develop a standard glaze percentage that would either 
unfairly penalize the boats with high amounts of glaze or underestimate 
the amount of harvest on boats with low glaze percentages. Finally, CPs 
conduct different cooking, precooking, prefreeze brining and freezing 
processes. These procedural differences create significant uncertainty 
in calculating and verifying recovery. NMFS acknowledges that PRRs 
would be less costly to the affected public, particularly the small 
entities, but determined that the added management benefits of scales 
outweigh their costs. To the extent that additional PRR data become 
available to NMFS for analysis, future rules may allow PRR based catch 
accounting. CPs not wishing to incur the costs associated with scale 
installation prior to that time have the option of either joining a 
cooperative or leasing their quota.
    NMFS considered, but rejected, requirements for increased observer 
coverage for the CP fleet. Under existing State regulations, CPs are 
required to pay for and carry one observer when engaged in crab fishing 
operations. In similar NMFS managed quota fisheries, NMFS requires that 
all fishing activity be observed. In most cases, this means that a 
vessel must carry two observers. NMFS rejected this approach in the 
crab fisheries for two reasons. First, the Council motion specifically 
delegated observer coverage responsibility to the State of Alaska. 
Second, NMFS felt that the monitoring approach developed for the 
fishery (total catch weighing plus a requirement for a total offload 
weight) provided for more effective monitoring at a lower cost. NMFS 
estimates that a requirement for increased observer coverage would have 
cost CPs approximately $400/day plus the additional costs associated 
with reconfiguring vessels to ensure that adequate space was available 
for the additional observer.
    For monitoring of processing activity, it would cost 
shore[hyphen]based processors approximately $416 to complete the catch 
monitoring plan and an additional $2,800 annually to complete all 
landing reports.
    NMFS determined that a VMS program is essential to the proper 
enforcement of the Program. Therefore, all vessels participating in the 
Program

[[Page 63249]]

would be required to participate in a VMS program. Depending on which 
brand of VMS a vessel chooses to purchase, NMFS estimates that this 
requirement would impose a cost of $2,000 per vessel for equipment 
purchase, $780 for installation and maintenance, and $5 per day for 
data transmission costs. Based on the number of qualified vessels, NMFS 
estimates that a maximum of 276 vessels, of which 238 are considered 
small entities, could incur this cost if they choose to participate in 
the Program.

Collection[hyphen]of[hyphen]information

    This rule contains new collection[hyphen]of[hyphen]information 
requirements subject to review and approval by OMB under the Paperwork 
Reduction Act (PRA). These requirements have been submitted to OMB for 
approval. Public reporting burden per response for these requirements 
are listed by topic.

Crab Permits, Transfers, and Fees

    These requirements and their associated burden estimates per 
response are: 2 hours for Annual Application for Crab IFQ/IPQ Permit; 2 
hours for Application for Crab QS/IFQ or PQS/IPQ; 2 hours for 
Application for annual crab harvesting cooperative IFQ permit; 30 
minutes for Application for Crab IFQ Hired Master permit; 30 minutes 
for Application for RCR Permit; 20 minutes for Application for Federal 
crab vessel permit; 2 hours for Application for eligibility to receive 
Crab QS/IFQ or PQS/IPQ by transfer; 2 hours for Application to Become 
an Eligible Crab Community Organization (ECCO); 2 hours for Application 
for transfer of Crab QS/IFQ or PQS/IPQ; 2 hours for Application for 
transfer of crab QS/IFQ to or from an ECCO; 2 hours for Application for 
Inter[hyphen]cooperative Transfer; 30 minutes for RCR fee submission 
form; and 4 hours for a letter of appeal, if denied a permit.

Crab Reports

    These requirements and their associated burden estimates per 
response are: 35 minutes to electronically submit crab landing report 
and print receipts, 35 minutes to submit crab landing report paper 
backup (ADF&G fish ticket), 15 minutes for application for user ID, 20 
minutes for CP offload report, 40 hours for ECCO annual report for an 
ECC.

Crab Economic Data Reports

    These requirements and their associated burden estimates per 
response are: 25 hours for Catcher processor historical EDR, 25 hours 
for Catcher processor annual EDR, 15 hours for Catcher vessel 
historical EDR, 15 hours for Catcher vessel annual EDR, 15 hours for 
Catcher vessel annual EDR, 15 hours for Stationary crab floating 
processor historical EDR, 15 hours for Stationary crab floating 
processor annual EDR, 15 hours for Shoreside crab processor historical 
EDR, 15 hours for Shoreside crab processor annual EDR, and 3 hours for 
historical and annual audits.

Crab Arbitration Reports

    These requirements and their associated burden estimates per 
response are: 4 hours for Annual Arbitration Organization Report, 1 
hour for Arbitration Organization miscellaneous reporting, 40 hours for 
Market Report, 40 hours for Non-binding Price Formula Report, and 45 
minutes to establish price for arbitration negotiations.
    This rule also contains revised requirements that have been 
submitted to OMB for approval. These requirements are listed by OMB 
control number.

OMB No. 0648--0213

    This requirement and its associated burden estimate per response 
is: 14 minutes for Vessel Activity Report, 20 minutes for Product 
transfer report, and 28 minutes for Catcher vessel longline and pot 
gear daily fishing logbook.

OMB No. 0648--0272

    These revised requirements and their associated burden estimates 
per response are: 6 minutes for Application for Replacement of 
Certificates, Permits, or Cards; 6 minutes for Transshipment 
authorization; and 6 minutes for Departure report.

OMB No. 0648--0330

    These revised requirements and their associated burden estimates 
per response are: 6 minutes for At[hyphen]sea inspection request, 45 
minutes for Record of daily scale tests, 45 minutes for printed output 
of at[hyphen]sea scale weight, 45 minutes for printed output of State 
of Alaska scale weight, 80 hours for scale type evaluation, 6 minutes 
for at[hyphen]sea scale approval report/sticker, 2 hours for Observer 
sampling station inspection request, 2 minutes for prior notice to 
Observers of scale tests, and 40 hours for Crab catch monitoring plan.

OMB No. 0648--0445

    These revised requirements and their associated burden estimates 
per response are: 12 minutes for VMS check[hyphen]in form, 6 hours for 
VMS installation, 4 hours for VMS annual maintenance, and 6 seconds for 
each VMS transmission.
    Response times include the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information.
    Public comment is sought regarding: whether this proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; the accuracy of the burden estimate; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways to minimize the burden of the collection of 
information, including through the use of automated collection 
techniques or other forms of information technology.
    Send comments on these or any other aspects of the collection of 
information to NMFS, Alaska Region at the ADDRESSES above, and 
e[hyphen]mail to [email protected], or fax to (202) 395[hyphen]7285.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB Control Number.
    This proposed rule has been determined to be significant for 
purposes of Executive Order 12866.
    A Draft Environmental Impact Statement (EIS) (dated March 2004) was 
prepared for this rule and made available to the public for comment (69 
FR 13036, March 19, 2004). The Final EIS was prepared and made 
available to the public on September 3, 2004 (69 FR 53915). Copies of 
the Final EIS for this action are available from NMFS (see ADDRESSES).

    Dated: October 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 679 is 
proposed to be amended and new 50 CFR part 680 is proposed to be added 
as follows:

PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA

    1. The authority citation for part 679 continues to read as 
follows:

    Authority: 16 U.S.C. 773 et seq., 1801 et seq., and 3631 et 
seq.; Title II of Division C, Pub. L. 105[hyphen]277; Sec. 3027, 
Pub. L. 106[hyphen]31, 113 Stat. 57; 16 U.S.C. 1540(f).

[[Page 63250]]

    2. In Sec.  679.1, revise paragraphs (g) and (j) to read as 
follows:


Sec.  679.1  Purpose and scope.

* * * * *
    (g) Fishery Management Plan for Bering Sea/Aleutian Islands King 
and Tanner Crabs. Regulations in this part govern commercial fishing 
for king and Tanner crab in the Bering Sea and Aleutian Islands Area by 
vessels of the United States, and supersede State of Alaska regulations 
applicable to the commercial king and Tanner crab fisheries in the 
Bering Sea and Aleutian Islands Area EEZ that are determined to be 
inconsistent with the FMP (see subparts A, B, and E of this part). 
Additional regulations governing commercial fishing for, and processing 
of, king and Tanner crab managed pursuant to section 313(j) of the 
Magnuson[hyphen]Stevens Act and the Crab Rationalization Program are 
codified at 50 CFR part 680.
* * * * *
    (j) License Limitation Program (LLP). (1) Regulations in this part 
implement the LLP for the commercial groundfish fisheries in the EEZ 
off Alaska and the LLP for the commercial crab fisheries in the Bering 
Sea and Aleutian Islands Area.
    (2) Regulations in this part govern the commercial fishing for 
groundfish under the LLP by vessels of the United States using 
authorized gear within the GOA and the BSAI and the commercial fishing 
for crab species under the LLP by vessels of the United States using 
authorized gear within the Bering Sea and Aleutian Islands Area.
* * * * *
    3. In Sec.  679.2, revise the definitions of ``Alaska local time,'' 
and ``Shoreside processor,'' revise paragraphs (2) and (3) of the 
``Directed fishing'' definition, and add a definition of ``Registered 
crab receiver'' in alphabetical order to read as follows:


Sec.  679.2  Definitions.

* * * * *
    Alaska local time (A.l.t.) means the time in the Alaska time zone.
* * * * *
    Directed fishing means:
* * * * *
    (2) With respect to license limitation groundfish species, directed 
fishing as defined in paragraph (1) of this definition.
    (3) With respect to crab species under this part, the catching and 
retaining of any crab species.
* * * * *
    Registered crab receiver (RCR) means a person issued by the 
Regional Administrator an RCR permit described under 50 CFR part 680.
* * * * *
    Shoreside processor means any person or vessel that receives, 
purchases, or arranges to purchase, unprocessed groundfish, except 
catcher/processors, motherships, buying stations, restaurants, or 
persons receiving groundfish for personal consumption or bait.
* * * * *
    4. In Sec.  679.3, revise paragraph (d) to read as follows:


Sec.  679.3  Relation to other laws.

* * * * *
    (d) King and Tanner crabs. Additional regulations governing 
conservation and management of king crab and Tanner crab in the Bering 
Sea and Aleutian Islands Area are contained in 50 CFR part 680 and in 
Alaska Statutes at A.S. 16 and Alaska Administrative Code at 5 AAC 
Chapters 34, 35, and 39.
* * * * *
    5. In Sec.  679.4, revise paragraph (k)(1)(ii), remove and reserve 
paragraphs (l)(3)(ii)(D), (l)(4)(i), and (l)(5)(ii), and remove 
paragraphs (l)(4)(ii)(D), (l)(4)(ii)(E), (l)(5)(iv)(E), and 
(l)(5)(iv)(F) to read as follows:


Sec.  679.4  Permits.

* * * * *
    (k) * * *
    (1) * * *
    (ii) Each vessel must have a crab species license issued by NMFS on 
board at all times it is engaged in fishing activities, defined in 
Sec.  679.2, for the crab fisheries identified in this paragraph. A 
crab species license may be used only to participate in the fisheries 
designated on the license and on a vessel that complies with the vessel 
designation and MLOA specified on the license. NMFS requires a crab 
species license for participation in the following crab fisheries:
    (A) Aleutian Islands red king crab in waters of the EEZ with an 
eastern boundary the longitude of Scotch Cap Light (164[deg]44' W. 
long.) to 53[deg]30' N. lat., then west to 165[deg] W. long., a western 
boundary of 174[deg] W. long., and a northern boundary of a line from 
the latitude of Cape Sarichef (54[deg]36' N. lat.) westward to 171[deg] 
W. long., then north to 55[deg]30' N. lat., and then west to 174[deg] 
W. long.;
    (B) Aleutian Islands Area C. opilio and C. bairdi in waters of the 
EEZ with an eastern boundary the longitude of Scotch Cap Light 
(164[deg]44' W.long.) to 53[deg]30' N. lat., then west to 165[deg] W. 
long, a western boundary of the U.S.[hyphen]Russian Convention Line of 
1867, and a northern boundary of a line from the latitude of Cape 
Sarichef (54[deg]36' N. lat.) westward to 171[deg] W. long., then north 
to 55[deg]30' N. lat., then west to 174[deg] W. long.;
    (C) Norton Sound red king and Norton Sound blue king in waters of 
the EEZ with a western boundary of 168[deg] W. long., a southern 
boundary of 62[deg] N. lat., and a northern boundary of 65[deg]36' N. 
lat.;
    (D) Bering Sea brown king crab (Lithodes aequispinus) in waters of 
the EEZ east of the U.S.[hyphen]Russian Convention line of 1867 with a 
southern boundary of 54[deg]36' N. lat. to 171[deg] W. long., and then 
south to 54[deg]30' N. lat.
    (E) Scarlet or deep sea king crab (Lithodes couesi) in the waters 
of the Bering Sea and Aleutian Islands Area;
    (F) Grooved Tanner crab (Chionoecetes tanneri) in the waters of the 
Bering Sea and Aleutian Islands Area; and
    (G) Triangle Tanner crab (Chionoecetes angulatus) in the waters of 
the Bering Sea and Aleutian Islands Area.
* * * * *
    6. In Sec.  679.5, revise paragraphs (a)(7)(i) table only, (a)(15), 
(c)(1), (g), (k), (l) introductory text, (l)(2)(iii)(M), (l)(2)(iv) 
introductory text, (l)(2)(iv)(C), (l)(2)(iv)(D), (l)(3)(i), and (l)(4), 
and remove and reserve (l)(2)(iv)(A) to read as follows:


Sec.  679.5  Recordkeeping and reporting (R&R).

    (a) * * *
    (7) * * *
    (i) * * *

------------------------------------------------------------------------
  If participant      And fishing     An active period     An inactive
      is...          activity is...         is...         period is...
------------------------------------------------------------------------
(A) CV\1\          Harvest or         When gear         When no gear
                    discard of         remains on the    remains on the
                    groundfish         grounds in a      grounds in a
                                       reporting area    reporting area
                                       (except 300,
                                       400, 550, or
                                       690),
                                       regardless of
                                       the vessel
                                       location
------------------------------------------------------------------------

[[Page 63251]]

 
(B) SS, SFP        Receipt, purchase  When checked in   When not checked
                    or arrange to      or processing     in or
                    purchase, or                         processing
                    processing of
                    groundfish
------------------------------------------------------------------------
(C) MS             Receipt, discard,  When checked in   When not checked
                    or processing of   or processing     in or not
                    groundfish                           processing
------------------------------------------------------------------------
(D) CP             Harvest, discard,  When checked in   When not checked
                    or processing of   or processing     in or not
                    groundfish                           processing
------------------------------------------------------------------------
(E) BS             Receipt, discard,  When conducting   When not
                    or delivery of     fishing           conducting
                    groundfish         activity for an   fishing
                                       associated        activity for an
                                       processor         associated
                                                         processor
------------------------------------------------------------------------
\1\CV = Catcher vessel; SS = Shoreside processor; SFP = stationary
  floating processor; MS = mothership; Catcher/processor = CP; BS =
  Buying station

* * * * *
    (15) Transfer comparison. The operator, manager, Registered Buyer, 
or Registered Crab Receiver must refer to Table 13 to this part for 
paperwork submittal, issuance, and possession requirements for each 
type of transfer activity of non[hyphen]IFQ groundfish, IFQ halibut, 
IFQ sablefish, CDQ halibut, and CR crab.
* * * * *
    (c) Catcher vessel DFL and catcher/processor DCPL--(1) Longline and 
pot gear catcher vessel DFL and catcher/processor DCPL. (i) In addition 
to information required at paragraphs (a) and (b) of this section:
    (A) Groundfish fisheries. (1) The operator of a catcher vessel 
using longline or pot gear to harvest groundfish and that retains any 
groundfish from the GOA, or BSAI, must maintain a longline and pot gear 
DFL.
    (2) The operator of a catcher/processor using longline or pot gear 
to harvest groundfish and that retains any groundfish from the GOA, or 
BSAI, must maintain a longline and pot gear DCPL.
    (B) IFQ halibut, CDQ halibut, and IFQ sablefish fisheries. (1) The 
operator of a catcher vessel using longline or pot gear to harvest IFQ 
sablefish, IFQ halibut, or CDQ halibut from the GOA, or BSAI, must 
maintain a longline and pot gear DFL.
    (2) The operator of a catcher/processor using longline or pot gear 
to harvest IFQ sablefish, IFQ halibut, or CDQ halibut from the GOA, or 
BSAI, must maintain a longline and pot gear DCPL.
    (C) CR crab fisheries. (1) The operator of a catcher vessel using 
longline or pot gear to harvest CR crab from the BSAI, must maintain a 
longline and pot gear DFL.
    (2) The operator of a catcher/processor using longline or pot gear 
to harvest CR crab from the BSAI, must maintain a longline and pot gear 
DCPL.
    (ii) Required information. The operator of a catcher vessel or 
catcher/processor identified in paragraph (c)(1)(i) of this section 
must record in the DFL or DCPL, the following information:
    (A) Federal reporting area. Federal reporting area code (see 
Figures 1 and 3 to this part) where gear retrieval (see Sec.  679.2) 
was completed, regardless of where the majority of the set took place. 
Use a separate logsheet for each reporting area.
    (B) Number of crew. If a catcher vessel, the number of crew, 
excluding observer(s), on the last day of a trip. If a catcher/
processor, the number of crew, excluding observer(s), on the last day 
of the weekly reporting period.
    (C) Gear type. Use a separate logsheet for each gear type.
    (1) Circle gear type used to harvest the fish. If gear is other 
than those listed, circle ``Other'' and describe. If using 
hook[hyphen]and[hyphen]line gear, enter the alphabetical letter that 
coincides with gear description.
    (2) If gear information is the same on subsequent pages, mark the 
box instead of re[hyphen]entering the gear type information.
    (3) Pot gear. If you checked pot gear, enter the number of pots set 
and the number of pots lost (if applicable).
    (4) Hook[hyphen]and[hyphen]line gear. If 
hook[hyphen]and[hyphen]line gear:
    (i) Indicate whether gear is fixed hook (conventional or tub), 
autoline, or snap (optional, but may be required by IPHC regulations).
    (ii) Skates. Indicate length of skate to the nearest foot 
(optional, but may be required by IPHC regulations), number of skates 
set, and number of skates lost (optional, but may be required by IPHC 
regulations).
    (iii) Hooks. Indicate size of hooks, hook spacing in feet, number 
of hooks per skate (optional, but may be required by IPHC regulations).
    (iv) Seabird avoidance gear code. Record seabird avoidance gear 
code(s) (see Sec.  679.24(e) and Table 19 to this part).
    (D) Permit numbers. Enter the permit number(s) for the applicable 
fishery in which you participated.
    (1) IFQ permit number of the operator and of each IFQ permit holder 
aboard the vessel.
    (2) CDQ group number (if applicable).
    (3) Halibut CDQ permit number (if applicable).
    (4) Federal crab vessel permit number (if applicable).
    (E) Observer information. Record the number of observers aboard, 
the name of the observer(s), and the observer cruise number(s).
    (F) Management program. Use a separate logsheet for each management 
program. Indicate whether harvest occurred under one of the following 
management programs. If harvest is not under one of these management 
programs, leave blank:
    (1) Exempted Fishery. Record exempted fishery permit number (see 
Sec.  679.6).
    (2) Research Fishery. Record research program permit number (see 
Sec.  600.745(a) of this chapter).
    (G) Catch by set. (See Sec.  679.2 for definition of set). The 
operator must record the following information for each set, if 
applicable:
    (1) If no catch occurred for a day, write ``no catch;''
    (2) Set number, sequentially by year;
    (3) Gear deployment date (month[hyphen]day), time (in military 
format, A.l.t.), and begin position coordinates (in lat and long to the 
nearest minute);
    (4) Gear retrieval date (month[hyphen]day), time (in military 
format, A.l.t.), and end position coordinates (in lat and long to the 
nearest minute);
    (5) Begin and end buoy or bag numbers (optional, but may be 
required by IPHC regulations);
    (6) Begin and end gear depths, recorded to the nearest fathom 
(optional, but may be required by IPHC regulations);

[[Page 63252]]

    (7) Target species code. Enter the species code of the species you 
intend to catch;
    (8) Estimated haul weight. Enter the total estimated haul weight of 
all retained species. Indicate whether to the nearest pound or to the 
nearest 0.001 mt (2.20 lb);
    (9) IR/IU Species (see Sec.  679.27). If a catcher/processor, enter 
species code of IR/IU species and estimated total round weight for each 
IR/IU species; indicate whether to the nearest pound or the nearest 
0.001 mt (2.20 lb);
    (10) Estimated total round weight of IFQ halibut and CDQ halibut to 
the nearest pound;
    (11) Number and estimated total round weight of IFQ sablefish to 
the nearest pound;
    (12) Circle to indicate whether IFQ sablefish product is Western 
cut (WC), Eastern cut (EC), or round weight (RD); and
    (13) Number and scale weight of raw CR crab to the nearest pound.
    (H) Data entry time limits. (1) The operator must record in the DFL 
or DCPL within 2 hours after completion of gear retrieval: Set number; 
time and date gear set; time and date gear hauled; begin and end 
position; CDQ group number, halibut CDQ permit number, IFQ permit 
number, and/or Federal crab vessel permit number (if applicable), 
number of pots set, and estimated total haul for each set.
    (2) If a catcher vessel, the operator must record all other 
required information in the DFL within 2 hours after the vessel's catch 
is off[hyphen]loaded, notwithstanding other time limits.
    (3) If a catcher/processor, the operator must record all other 
required information in the DCPL by noon of the day following 
completion of production.
    (4) If a catcher/processor, the operator must record product 
information in the DCPL by noon each day to record the previous day's 
production information.
* * * * *
    (g) Product transfer report (PTR)--(1) General requirements. Except 
as provided in paragraph (g)(1)(i) through (vi) of this section:
    (i) Groundfish. The operator of a mothership or catcher/processor 
or the manager of a shoreside processor or SFP must complete and submit 
a separate PTR for each shipment of groundfish and donated prohibited 
species caught in groundfish fisheries. A PTR is not required to 
accompany a shipment.
    (ii) IFQ halibut, IFQ sablefish, and CDQ halibut. A Registered 
Buyer must submit a separate PTR for each shipment of halibut or 
sablefish for which the Registered Buyer submitted an IFQ landing 
report or was required to submit an IFQ landing report. A PTR is not 
required to accompany a shipment.
    (iii) CR crab. A Registered Crab Receiver (RCR) must submit a 
separate PTR for each shipment of crab for which the RCR submitted a CR 
crab landing report or was required to submit a CR crab landing report. 
A PTR is not required to accompany a shipment.
    (2) Exceptions--(i) Bait sales (non-IFQ groundfish only). During 
one calendar day, the operator or manager may aggregate and record on 
one PTR the individual sales or shipments of non-IFQ groundfish to 
vessels for bait purposes during the day recording the amount of such 
bait product shipped from a vessel or facility that day.
    (ii) Retail sales--(A) IFQ halibut, IFQ sablefish, CDQ halibut, and 
non[hyphen]IFQ groundfish. During one calendar day, the operator, 
manager, or Registered Buyer may aggregate and record on one PTR the 
amount of transferred retail product of IFQ halibut, IFQ sablefish, CDQ 
halibut, and non[hyphen]IFQ groundfish if each sale weighs less than 10 
lb or 4.5 kg.
    (B) CR crab. During one calendar day, the RCR may aggregate and 
record on one PTR the amount of transferred retail product of CR crab 
if each sale weighs less than 100 lb or 45 kg.
    (iii) Wholesale sales (non[hyphen]IFQ groundfish only). The 
operator or manager may aggregate and record on one PTR, wholesale 
sales of non[hyphen]IFQ groundfish by species when recording the amount 
of such wholesale species leaving a vessel or facility in one calendar 
day, if invoices detailing destinations for all of the product are 
available for inspection by an authorized officer.
    (iv) Dockside sales. (A) A person holding a valid IFQ permit, IFQ 
card, and Registered Buyer permit may conduct a dockside sale of IFQ 
halibut or IFQ sablefish with a person who has not been issued a 
Registered Buyer permit after all IFQ halibut and IFQ sablefish have 
been landed and reported in accordance with paragraph (l) of this 
section.
    (B) A person holding a valid halibut CDQ permit, halibut CDQ card, 
and Registered Buyer permit may conduct a dockside sale of CDQ halibut 
with a person who has not been issued a Registered Buyer permit after 
all CDQ halibut have been landed and reported in accordance with 
paragraph (l) of this section.
    (C) A Registered Buyer conducting dockside sales must issue a 
receipt to each individual receiving IFQ halibut, CDQ halibut, or IFQ 
sablefish in lieu of a PTR. This receipt must include:
    (1) Date of sale;
    (2) Registered Buyer permit number;
    (3) Weight by product of the IFQ halibut, CDQ halibut or IFQ 
sablefish transferred.
    (D) A Registered Buyer must maintain a copy of each dockside sales 
receipt as described in Sec.  679.5(l).
    (v) Transfer directly from the landing site to a processing 
facility (CDQ halibut, IFQ halibut, IFQ sablefish, or CR crab only). A 
PTR is not required for transportation of unprocessed IFQ halibut, IFQ 
sablefish, CDQ halibut, or CR crab directly from the landing site to a 
facility for processing, provided the following conditions are met:
    (A) A copy of the IFQ landing report receipt (Internet receipt) 
documenting the IFQ landing accompanies the offloaded IFQ halibut, IFQ 
sablefish, or CDQ halibut while in transit.
    (B) A copy of the CR crab landing report receipt (Internet receipt) 
documenting the IFQ landing accompanies the offloaded CR crab while in 
transit.
    (C) A copy of the IFQ landing report or CR crab landing report 
receipt is available for inspection by an authorized officer.
    (D) The Registered Buyer submitting the IFQ landing report or RCR 
submitting the CR crab landing report completes a PTR for each shipment 
from the processing facility pursuant to paragraph (g)(1) of this 
section.
    (3) Time limits and submittal. The operator of a mothership or 
catcher/processor, the manager of a shoreside processor or SFP, the 
Registered Buyer, or RCR must:
    (i) Record all product transfer information on a PTR within 2 hours 
of the completion of the shipment.
    (ii) Submit a PTR by facsimile or electronic file to OLE, Juneau, 
AK (907-586-7313), by 1200 hours, A.l.t., on the Tuesday following the 
end of the applicable weekly reporting period in which the shipment 
occurred.
    (iii) If any information on the original PTR changes prior to the 
first destination of the shipment, submit a revised PTR by facsimile or 
electronic file to OLE, Juneau, AK (907-586-7313), by 1200 hours, 
A.l.t., on the Tuesday following the end of the applicable weekly 
reporting period in which the change occurred and indicate the 
confirmation number of the original PTR.
    (4) Required information. The operator of a mothership or catcher/
processor, the manager of a shoreside processor or SFP, the Registered 
Buyer,

[[Page 63253]]

or RCR must include the following information on a PTR:
    (i) Original or revised PTR. Whether a submittal is an original or 
revised PTR. If revised, record the confirmation number of the original 
PTR.
    (ii) Shipper information. Name, telephone number, and facsimile 
number of the representative. According to the following table:

------------------------------------------------------------------------
       If you are shipping...             Enter under ``Shipper''...
------------------------------------------------------------------------
(A) Non-IFQ groundfish               Your processor's name, Federal
                                      fisheries or Federal processor
                                      permit number.
------------------------------------------------------------------------
(B) IFQ halibut, CDQ halibut or IFQ  Your Registered Buyer name and
 sablefish                            permit number.
------------------------------------------------------------------------
(C) CR crab                          Your RCR name and permit number.
------------------------------------------------------------------------
(D) Non-IFQ groundfish, IFQ          (1) Your processor's name and
 halibut, CDQ halibut or IFQ          Federal fisheries permit number or
 sablefish, and CR crab on the same   Federal processor permit number,
 PTR                                 (2) Your Registered Buyer's name
                                      and permit number, and
                                     (3) Your RCR name and permit
                                      number.
------------------------------------------------------------------------

    (iii) Receiver information. Using descriptions from the following 
table, enter receiver information, date and time of product transfer, 
location of product transfer (e.g., port, position coordinates, or 
city), mode of transportation, and intended route:

----------------------------------------------------------------------------------------------------------------
                                                                     Then enter...
                                     ---------------------------------------------------------------------------
    If you are the shipper and...                                           Location of           Mode of
                                          Receiver       Date & time of       product        transportation and
                                                        product transfer      transfer         intended route
----------------------------------------------------------------------------------------------------------------
(A) Receiver is on land and transfer  Receiver name     Date and time     Port or city of  Name of the shipping
 involves one van, truck, or           and Federal       when shipment     product          company; destination
 vehicle.                              fisheries or      leaves the        transfer         city and state or
                                       Federal           plant.                             foreign country.
                                       processor
                                       permit number
                                       (if any).
----------------------------------------------------------------------------------------------------------------
(B) Receiver is on land and transfer  Receiver name     Date and time     Port or city of  Name of the shipping
 involves multiple vans, trucks, or    and Federal       when loading of   product          company; destination
 vehicles.                             fisheries or      vans or trucks    transfer         city and state or
                                       Federal           is completed                       foreign country.
                                       processor         each day.
                                       permit number
                                       (if any).
----------------------------------------------------------------------------------------------------------------
(C) Receiver is on land and transfer  Receiver name     Date and time     Port or city of  Name of the airline
 involves one airline flight.          and Federal       when shipment     product          company; destination
                                       fisheries or      leaves the        transfer         airport city and
                                       Federal           plant.                             state.
                                       processor
                                       permit number
                                       (if any).
----------------------------------------------------------------------------------------------------------------
(D) Receiver is on land and transfer  Receiver name     Date and time of  Port or city of  Name of the airline
 involves multiple airline flights.    and Federal       shipment when     product          company(s);
                                       fisheries or      the last          transfer         destination
                                       Federal           airline flight                     airport(s) city and
                                       processor         of the day                         state.
                                       permit number     leaves.
                                       (if any).
----------------------------------------------------------------------------------------------------------------
(E) Receiver is a vessel and          Vessel name and   Start and finish  Transfer         The first destination
 transfer takes occurs at sea.         call sign         dates and times   position         of the vessel.
                                                         of transfer.      coordinates in
                                                                           latitude and
                                                                           longitude, in
                                                                           degrees and
                                                                           minutes.
----------------------------------------------------------------------------------------------------------------
(F) Receiver is a vessel and          Vessel name and   Start and finish  Port or          The first destination
 transfer takes place in port.         call sign         dates and times   position of      of the vessel.
                                                         of transfer.      product
                                                                           transfer.
----------------------------------------------------------------------------------------------------------------
(G) Receiver is an agent (buyer,      Agent name and    Transfer start    Port, city, or   Name (if available)
 distributor, or shipping agent) and   location (city,   and finish        position of      of the vessel
 transfer is in a containerized        state).           dates and         product          transporting the
 van(s).                                                 times.            transfer.        van; destination
                                                                                            port.
----------------------------------------------------------------------------------------------------------------
(H) You are aggregating individual    ``RETAIL SALES''  Date of           Port or city of  n/a
 retail sales for human consumption.                     transfer.         product
 (see paragraph 679.5(g)(2)).                                              transfer
----------------------------------------------------------------------------------------------------------------
(I) You are aggregating individual    ``BAIT SALES''    Date of           Port or city of  n/a
 bait sales during a day onto one                        transfer.         product
 PTR (non[dash]IFQ groundfish only).                                       transfer
----------------------------------------------------------------------------------------------------------------

[[Page 63254]]

 
(J) Non[dash]IFQ Groundfish only.     ``WHOLESALE       Time of the       Port or city of  n/a
 You are aggregating wholesale         SALES''           first sale of     product
 non[dash]IFQ groundfish product                         the day; time     transfer
 sales by species during a single                        of the last
 day onto one PTR and maintaining                        sale of the
 invoices detailing destinations for                     day.
 all of the product for inspection
 by an authorized officer.
----------------------------------------------------------------------------------------------------------------

    (iv) Products shipped. The operator, manager, Registered Buyer, or 
RCR must record the following information for each product shipped:
    (A) Species code and product code. (1) For non[hyphen]IFQ 
groundfish, IFQ halibut, IFQ sablefish, and CDQ halibut, the species 
code and product code (Tables 1 and 2 to this part).
    (2) For CR crab, the species code and product code (Tables 1 and 2 
to 50 CFR part 680).
    (B) Species weight. Use only if recording 2 or more species with 2 
or more product types contained within the same production unit. Enter 
the actual scale weight of each product of each species to the nearest 
kilogram or pound (indicate which). If not applicable, enter ``n/a'' in 
the species weight column. If using more than one line to record 
species in one carton, use a brace ``{time} '' to tie the carton 
information together.
    (C) Number of units. Total number of production units (blocks, 
trays, pans, individual fish, boxes, or cartons; if iced, enter number 
of totes or containers).
    (D) Unit weight. Unit weight (average weight of single production 
unit as listed in ``No. of Units'' less packing materials) for each 
species and product code in kilograms or pounds (indicate which).
    (E) Total weight. Total weight for each species and product code of 
shipment less packing materials in kilograms or pounds (indicate 
which).
    (F) Total or partial offload. (1) If a mothership or catcher/
processor, the operator must indicate whether fish or fish products are 
left onboard the vessel (partial offload) after the shipment is 
complete.
    (2) If a partial offload, for the products remaining on board after 
the transfer, the operator must enter: species code, product code, and 
total product weight to the nearest kilogram or pound (indicate which) 
for each product.
* * * * *
    (k) U.S. Vessel Activity Report (VAR)--(1) Fish or fish product 
other than crab onboard. Except as noted in paragraph (k)(4) of this 
section, the operator of a catcher vessel greater than 60 ft (18.3 m) 
LOA, a catcher/processor, or a mothership required to hold a Federal 
fisheries permit issued under this part and carrying fish or fish 
product onboard must complete and submit a VAR by facsimile or 
electronic file to OLE, Juneau, AK (907-586-7313) before the vessel 
crosses the seaward boundary of the EEZ off Alaska or crosses the U.S.-
Canadian international boundary between Alaska and British Columbia.
    (2) Combination of non-IFQ groundfish with IFQ halibut, CDQ 
halibut, IFQ sablefish or CR crab. If a vessel is carrying non-IFQ 
groundfish and IFQ halibut, CDQ halibut, IFQ sablefish or CR crab, the 
operator must submit a VAR in addition to an IFQ Departure Report 
required by paragraph (l)(4) of this section.
    (3) Revised VAR. If fish or fish products are landed at a port 
other than the one specified on the VAR, the operator must submit a 
revised VAR showing the actual port of landing before any fish are 
offloaded.
    (4) Exemption: IFQ Departure Report. A VAR is not required if a 
vessel is carrying only IFQ halibut, CDQ halibut, IFQ sablefish, or CR 
crab onboard and the operator has submitted an IFQ Departure Report 
required by paragraph (l)(4) of this section.
    (5) Information required. (i) Whether original or revised VAR.
    (ii) Name and Federal fisheries permit number of vessel.
    (iii) Type of vessel (whether catcher vessel, catcher/processor, or 
mothership).
    (iv) Name, daytime telephone number (including area code), and 
facsimile number and COMSAT number (if available) of representative.
    (v) Return report. ``Return,'' for purposes of this paragraph, 
means returning to Alaska. If the vessel is crossing the seaward 
boundary of the EEZ off Alaska or crossing the U.S.-Canadian 
international boundary between Alaska and British Columbia into U.S. 
waters, indicate a ``return'' report and enter:
    (A) Intended Alaska port of landing (see Table 14 to this part);
    (B) Estimated date and time (hour and minute, Greenwich mean time) 
the vessel will cross the boundary; and
    (C) The estimated position coordinates in latitude and longitude 
where the vessel will cross.
    (vi) Depart report. ``Depart'' means leaving Alaska. If the vessel 
is crossing the seaward boundary of the EEZ off Alaska and moving out 
of the EEZ or crossing the U.S.-Canadian international boundary between 
Alaska and British Columbia and moving into Canadian waters, indicate a 
``depart'' report and enter:
    (A) The intended U.S. port of landing or country other than the 
United States;
    (B) Estimated date and time (hour and minute, Greenwich mean time) 
the vessel will cross the boundary; and
    (C) The estimated position coordinates in latitude and longitude 
where the vessel will cross.
    (vii) The Russian Zone. Indicate whether the vessel is returning 
from fishing in the Russian Zone or is departing to fish in the Russian 
Zone.
    (viii) Fish or fish products. For all fish or fish products 
(including non[hyphen]groundfish) on board the vessel, enter:
    (A) Harvest zone code;
    (B) species codes;
    (C) product codes; and
    (D) total fish product weight in lbs or to the nearest 0.001 mt 
(2.20 lb).
    (l) IFQ halibut, CDQ halibut, IFQ sablefish, or CR crab R&R. In 
addition to the R&R requirements in this section, in 50 CFR 680.5 with 
respect to CR crab, and as prescribed in the annual management measures 
published in the Federal Register pursuant to Sec.  300.62 of this 
title, the following reports and authorizations are required, when

[[Page 63255]]

applicable: IFQ Prior Notice of Landing, Product Transfer Report (see 
Sec.  679.5(g)), IFQ landing report, IFQ Transshipment Authorization, 
and IFQ Departure Report.
* * * * *
    (2) * * *
    (iii) * * *
    (M) After the Registered Buyer enters the landing data in the 
Internet submission form(s) and receipts are printed, the Registered 
Buyer, or his/her representative, and the IFQ cardholder or CDQ 
cardholder must sign the receipts to acknowledge the accuracy of the 
IFQ landing report.
* * * * *
    (iv) Submittals. Except as indicated in paragraph (l)(2)(iv)(C) of 
this section, IFQ landing reports must be submitted electronically to 
OLE, Juneau, AK by using the Internet as indicated below:
* * * * *
    (C) Manual landing report. Waivers from the Internet reporting 
requirement can only be granted in writing on a 
case[hyphen]by[hyphen]case basis by a local clearing officer. If a 
waiver is granted, manual landing instructions must be obtained from 
OLE, Juneau, AK, at 800[hyphen]304[hyphen]4846 (Select Option 1). 
Registered Buyers must complete and submit manual landing reports by 
facsimile to OLE, Juneau, AK, at 907[hyphen]586[hyphen]7313. When a 
waiver is issued, the following additional information is required: 
whether the manual landing report is an original or revised; and name, 
telephone number, and facsimile number of individual submitting the 
manual landing report.
    (D) Properly debited landing. A properly concluded printed Internet 
submission receipt or a manual landing report receipt which is sent by 
facsimile from OLE to the Registered Buyer, and which is then signed by 
both the Registered Buyer and cardholder constitutes confirmation that 
OLE received the landing report and that the cardholder's account is 
properly debited. A copy of each receipt must be maintained by the 
Registered Buyer as described in Sec.  679.5(l).
    (3) * * *
    (i) No person may transship processed IFQ halibut, CDQ halibut, IFQ 
sablefish, or CR crab between vessels without authorization by a local 
clearing officer. Authorization from a local clearing officer must be 
obtained for each instance of transshipment at least 24 hours before 
the transshipment is intended to commence.
* * * * *
    (4) IFQ departure report--(i) General requirements--(A) Time limit 
and submittal. A vessel operator who intends to make a landing of IFQ 
halibut, CDQ halibut, IFQ sablefish, or CR crab at any location other 
than in an IFQ regulatory area or in the State of Alaska must submit an 
IFQ Departure Report, by telephone, to OLE, Juneau, AK, at 800-304-4846 
or 907-586-7163 between the hours of 0600 hours, A.l.t., and 2400 
hours, A.l.t.
    (B) Completion of fishing. A vessel operator must submit an IFQ 
Departure Report after completion of all fishing and prior to departing 
the waters of the EEZ adjacent to the jurisdictional waters of the 
State of Alaska, the territorial sea of the State of Alaska, or the 
internal waters of the State of Alaska when IFQ halibut, CDQ halibut, 
IFQ sablefish, or CR crab are on board.
    (C) Permit--(1) Registered Crab Receiver permit. A vessel operator 
submitting an IFQ Departure Report for CR crab must have a Registered 
Crab Receiver permit.
    (2) Registered Buyer permit. A vessel operator submitting an IFQ 
Departure Report for IFQ halibut, CDQ halibut, or IFQ sablefish must 
have a Registered Buyer permit.
    (D) First landing of any species. A vessel operator submitting an 
IFQ Departure Report must submit IFQ landing reports for all IFQ 
halibut, CDQ halibut, IFQ sablefish, and CR crab on board at the same 
time and place as the first landing of any IFQ halibut, CDQ halibut, 
IFQ sablefish, or CR crab.
    (E) Permits on board. (1) A vessel operator submitting an IFQ 
Departure Report to document IFQ halibut, IFQ sablefish, or CR crab 
must have one or more IFQ cardholders on board with a combined IFQ 
balance equal to or greater than all IFQ halibut, IFQ sablefish, and CR 
crab on board the vessel.
    (2) A vessel operator submitting an IFQ Departure Report to 
document CDQ halibut must ensure that one or more CDQ cardholders are 
on board with enough remaining CDQ halibut balance to harvest amounts 
of CDQ halibut equal to or greater than all CDQ halibut on board.
    (ii) Required information. When submitting an IFQ Departure Report, 
the vessel operator must provide the following information:
    (A) Intended date, time (A.l.t.), and location of landing;
    (B) Vessel name and ADF&G vessel registration number;
    (C) Vessel operator's name and Registered Buyer permit or 
Registered Crab Receiver permit number;
    (D) Halibut IFQ, halibut CDQ, sablefish IFQ, and CR crab permit 
numbers of IFQ and CDQ cardholders on board;
    (E) Area of harvest. (1) If IFQ or CDQ halibut, then halibut 
regulatory areas (see Figure 15 to this part).
    (2) If IFQ sablefish, then sablefish regulatory areas (see Figure 
14 to this part).
    (3) If CR crab, then the crab rationalization fishery code (see 
Table 1 to part 680).
    (F) Estimated total weight as appropriate of IFQ halibut , CDQ 
halibut, IFQ sablefish, or CR crab on board (lb/kg/mt).
    (iii) Revision to Departure Report. A vessel operator who intends 
to make an IFQ landing at a location different from the location named 
on the IFQ Departure report must submit a revised report naming the new 
location at least 12 hours in advance of the offload. Revisions must be 
submitted by telephone, to OLE, Juneau, AK, at 800-304 4846 or 907 586 
7163 between the hours of 0600 hours, A.l.t., and 2400 hours, A.l.t.
* * * * *
    7. In Sec.  679.7, revise paragraph (a)(15) and (k)(1)(iii), remove 
and reserve paragraphs (k)(2)(ii), (k)(3)(iii), (k)(4)(ii), and remove 
paragraph (k)(8) to read as follows:


Sec.  679.7  Prohibitions.

* * * * *
    (a) * * *
    (15) Federal processor permit. Receive, purchase or arrange for 
purchase, discard, or process groundfish harvested in the GOA or BSAI 
by a shoreside processor or SFP that does not have on site a valid 
Federal processor permit issued pursuant to Sec.  679.4(f).
* * * * *
    (k) * * *
    (1) * * *
    (iii) Processing BSAI crab. Use a listed AFA catcher/processor to 
process any crab species harvested in the BSAI.
* * * * *
    8. In Sec.  679.28, add a new paragraph (b)(1)(v) and revise 
paragraph (f)(4)(i) to read as follows:


Sec.  679.28  Equipment and operational requirements.

* * * * *
    (b) * * *
    (1) * * *
    (v) Exceptions. A scale manufacturer or their representative may 
request that NMFS approve a custom built automatic hopper scale under 
the following conditions:
    (A) The scale electronics are the same as those used in other 
scales on the Regional Administrator's list of scales eligible for 
approval;

[[Page 63256]]

    (B) Load cells have received Certificates of Conformance from NTEP 
or OIML;
    (C) The scale compensates for motion in the same manner as other 
scales made by that manufacturer which have been listed on the Regional 
Administrator's list of scales eligible for approval;
    (D) The scale, when installed, meets all of the requirements set 
forth in paragraph 3 of Appendix A to this part, except those 
requirements set forth in paragraph 3.2.1.1.
* * * * *
    (f) * * *
    (4) * * *
    (i) Contact the NMFS Enforcement Division by Facsimile at 
907[hyphen]586[hyphen]7703 and provide: the VMS transmitter ID, the 
vessel name, the Federal Fisheries Permit number or Federal Crab Vessel 
Permit number.
* * * * *
    9. In Sec.  679.31, revise paragraph (d) to read as follows:


Sec.  679.31  CDQ reserves.

* * * * *
    (d) Crab CDQ reserves. Crab CDQ reserves for crab species governed 
by the Crab Rationalization Program are specified at Sec.  680.40 
(a)(1). For Norton Sound red king crab, 7.5 percent of the guideline 
harvest level specified by the State of Alaska is allocated to the crab 
CDQ reserve.
    10. In Sec.  679.43, revise paragraph (a) to read as follows:


Sec.  679.43  Determinations and appeals.

    (a) General. This section describes the procedure for appealing 
initial administrative determinations made under part 300, part 679, 
and part 680. This section does not apply to initial administrative 
determinations made under Sec.  679.30(d).
* * * * *


Sec.  679.65  [Reserved]

    11. Remove and reserve Sec.  679.65.
    12. In part 679, Tables 14a, 14b, and 15 are revised; and Tables 13 
and 14c are added to read as follows:

[[Page 63257]]



                                                       Table 13 to Part 679--Transfer Form Summary
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         Submit                             Issue            Possess
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           Departure
                              And has ........   And is involved  VAR (Sec.  PTR (Sec.  Trans[dash]ship  Report (Sec.   Dockside Sales   Landing Receipt
 If participant type is ...     Fish product    in this activity                             (Sec.                      Receipt (Sec.         (Sec.
                                   onboard                        679.5(k))  679.5(g))    679.5(l)(3))   679.5(l)(4))  679.5(g)(1)(v))  679.5(g)(1)(vi))
--------------------------------------------------------------------------------------------------------------------------------------------------------
Catcher vessel greater than   Only              Vessel leaving    X          .........  ...............  ............  ...............  ................
 60 ft LOA, mothership or      non[dash]IFQ      or entering
 catcher/processor             groundfish.       Alaska
--------------------------------------------------------------------------------------------------------------------------------------------------------
Catcher vessel greater than   Only IFQ          Vessel leaving    .........  .........  ...............  X             ...............  ................
 60 ft LOA, mothership or      sablefish, IFQ    Alaska
 catcher/processor             halibut, CDQ
                               halibut, or CR
                               crab
--------------------------------------------------------------------------------------------------------------------------------------------------------
Catcher vessel greater than   Combination of    Vessel leaving    X          .........  ...............  X             ...............  ................
 60 ft LOA, mothership or      IFQ sablefish,    Alaska
 catcher/processor             IFQ halibut,
                               CDQ halibut, or
                               CR crab and
                               non[dash]IFQ
                               groundfish
--------------------------------------------------------------------------------------------------------------------------------------------------------
Mothership, catcher/          Non[dash]IFQ      Transfer of       .........  X          ...............  ............  ...............  ................
 processor, shoreside          groundfish        product
 processor, or SFP
--------------------------------------------------------------------------------------------------------------------------------------------------------
Registered Buyer              IFQ sablefish,    Transfer of       .........  X          ...............  ............  ...............  ................
                               IFQ halibut or    product
                               CDQ halibut
--------------------------------------------------------------------------------------------------------------------------------------------------------
Registered Crab Receiver      CR crab           Transfer of       .........  X          ...............  ............  ...............  ................
                                                 product
--------------------------------------------------------------------------------------------------------------------------------------------------------
A person holding a valid IFQ  IFQ sablefish,    Transfer of       .........  .........  ...............  ............  XXX              ................
 permit, IFQ card, and         IFQ halibut or    product
 Registered Buyer permit       CDQ halibut
--------------------------------------------------------------------------------------------------------------------------------------------------------
Registered Buyer              IFQ sablefish,    Transfer from     .........  .........  ...............  ............  ...............  XX
                               IFQ halibut, or   landing site to
                               CDQ halibut       Registered
                                                 Buyer's
                                                 processing
                                                 facility
--------------------------------------------------------------------------------------------------------------------------------------------------------
Registered Crab Receiver      CR crab           Transfer from     .........  .........  ...............  ............  ...............  XX
                                                 landing site to
                                                 RCR's
                                                 processing
                                                 facility
--------------------------------------------------------------------------------------------------------------------------------------------------------
Vessel operator               Processed IFQ     Transshipment     .........  .........  XXXX             ............  ...............  ................
                               sablefish, IFQ    between vessels
                               halibut, CDQ
                               halibut, or CR
                               crab
--------------------------------------------------------------------------------------------------------------------------------------------------------
``X'' indicates under what circumstances each report is submitted.
``XX'' indicates that the document must accompany the transfer of IFQ species from landing site to processor.
``XXX'' indicates receipt must be issued to each receiver in a dockside sale.
``XXXX'' indicates authorization must be obtained 24 hours in advance.


[[Page 63258]]


         Table 14a to Part 679--Port of Landing Codes\1\: Alaska
------------------------------------------------------------------------
                                                          NMFS    ADF&G
                       Port Name                          Code     Code
------------------------------------------------------------------------
Adak                                                        186      ADA
------------------------------------------------------------------------
Akutan, Akutan Bay                                          101      AKU
------------------------------------------------------------------------
Alitak                                                      103      ALI
------------------------------------------------------------------------
Anchorage                                                   105      ANC
------------------------------------------------------------------------
Angoon                                                      106      ANG
------------------------------------------------------------------------
Aniak                                                       n/a      ANI
------------------------------------------------------------------------
Anvik                                                       n/a      ANV
------------------------------------------------------------------------
Atka                                                        107      ATK
------------------------------------------------------------------------
Auke Bay                                                    136      JNU
------------------------------------------------------------------------
Beaver Inlet                                                119      DUT
------------------------------------------------------------------------
Bethel                                                      n/a      BET
------------------------------------------------------------------------
Captains Bay                                                119      DUT
------------------------------------------------------------------------
Chefornak                                                   189      n/a
------------------------------------------------------------------------
Chignik                                                     113      CHG
------------------------------------------------------------------------
Cordova                                                     115      COR
------------------------------------------------------------------------
Craig                                                       116      CRG
------------------------------------------------------------------------
Dillingham                                                  117      DIL
------------------------------------------------------------------------
Douglas                                                     136      JNU
------------------------------------------------------------------------
Dutch Harbor/Unalaska                                       119      DUT
------------------------------------------------------------------------
Egegik                                                      122      EGE
------------------------------------------------------------------------
Ekuk                                                        n/a      EKU
------------------------------------------------------------------------
Elfin Cove                                                  123      ELF
------------------------------------------------------------------------
Emmonak                                                     n/a      EMM
------------------------------------------------------------------------
Excursion Inlet                                             124      XIP
------------------------------------------------------------------------
False Pass                                                  125      FSP
------------------------------------------------------------------------
Fairbanks                                                   n/a      FBK
------------------------------------------------------------------------
Galena                                                      n/a      GAL
------------------------------------------------------------------------
Glacier Bay                                                 n/a      GLB
------------------------------------------------------------------------
Glennallen                                                  n/a      GLN
------------------------------------------------------------------------
Gustavus                                                    127      GUS
------------------------------------------------------------------------
Haines                                                      128      HNS
------------------------------------------------------------------------
Halibut Cove                                                130      n/a
------------------------------------------------------------------------
Homer                                                       132      HOM
------------------------------------------------------------------------
Hoonah                                                      133      HNH
------------------------------------------------------------------------
Hydaburg                                                    n/a      HYD
------------------------------------------------------------------------
Hyder                                                       134      HDR
------------------------------------------------------------------------
Juneau                                                      136      JNU
------------------------------------------------------------------------
Kake                                                        137      KAK
------------------------------------------------------------------------
Kaltag                                                      n/a      KAL
------------------------------------------------------------------------
Kasilof                                                     138      KAS
------------------------------------------------------------------------
Kenai                                                       139      KEN
------------------------------------------------------------------------
Kenai River                                                 139      KEN
------------------------------------------------------------------------
Ketchikan                                                   141      KTN
------------------------------------------------------------------------
King Cove                                                   142      KCO
------------------------------------------------------------------------
King Salmon                                                 143      KNG
------------------------------------------------------------------------
Kipnuk                                                      144      n/a
------------------------------------------------------------------------
Klawock                                                     145      KLA
------------------------------------------------------------------------
Kodiak                                                      146      KOD
------------------------------------------------------------------------
Kotzebue                                                    n/a      KOT
------------------------------------------------------------------------
La Conner                                                   n/a      LAC
------------------------------------------------------------------------
Mekoryuk                                                    147      n/a
------------------------------------------------------------------------
Metlakatla                                                  148      MET
------------------------------------------------------------------------
Moser Bay                                                   n/a      MOS
------------------------------------------------------------------------
Naknek                                                      149      NAK
------------------------------------------------------------------------
Nenana                                                      n/a      NEN
------------------------------------------------------------------------
Nikiski (or Nikishka)                                       150      NIK
------------------------------------------------------------------------
Ninilchik                                                   151      NIN
------------------------------------------------------------------------
Nome                                                        152      NOM
------------------------------------------------------------------------
Nunivak Island                                              n/a      NUN
------------------------------------------------------------------------
Old Harbor                                                  153      OLD
------------------------------------------------------------------------
Other Alaska\1\                                             499      UNK
------------------------------------------------------------------------
Pelican                                                     155      PEL
------------------------------------------------------------------------
Petersburg                                                  156      PBG
------------------------------------------------------------------------
Port Alexander                                              158      PAL
------------------------------------------------------------------------
Port Armstrong                                              n/a      PTA
------------------------------------------------------------------------
Port Bailey                                                 159      PTB
------------------------------------------------------------------------
Port Graham                                                 160      GRM
------------------------------------------------------------------------
Port Lions                                                  n/a      LIO
------------------------------------------------------------------------
Port Moller                                                 n/a      MOL
------------------------------------------------------------------------
Port Protection                                             161      n/a
------------------------------------------------------------------------
Quinhagak                                                   187      n/a
------------------------------------------------------------------------
Sand Point                                                  164      SPT
------------------------------------------------------------------------
Savoonga                                                    165      n/a
------------------------------------------------------------------------
Seldovia                                                    166      SEL
------------------------------------------------------------------------
Seward                                                      167      SEW
------------------------------------------------------------------------
Sitka                                                       168      SIT
------------------------------------------------------------------------
Skagway                                                     169      SKG
------------------------------------------------------------------------
Soldotna                                                    n/a      SOL
------------------------------------------------------------------------
St. George                                                  170      STG
------------------------------------------------------------------------
St. Mary                                                    n/a      STM
------------------------------------------------------------------------
St. Paul                                                    172      STP
------------------------------------------------------------------------
Tee Harbor                                                  136      JNU
------------------------------------------------------------------------
Tenakee Springs                                             174      TEN
------------------------------------------------------------------------
Togiak                                                      176      TOG
------------------------------------------------------------------------
Toksook Bay                                                 177      n/a
------------------------------------------------------------------------
Tununak                                                     178      n/a
------------------------------------------------------------------------
Ugashik                                                     n/a      UGA
------------------------------------------------------------------------
Unalakleet                                                  n/a      UNA
------------------------------------------------------------------------
Valdez                                                      181      VAL
------------------------------------------------------------------------
Wasilla                                                     n/a      WAS
------------------------------------------------------------------------
Whittier                                                    183      WHT
------------------------------------------------------------------------
Wrangell                                                    184      WRN
------------------------------------------------------------------------
Yakutat                                                     185      YAK
------------------------------------------------------------------------
\1\ To report a landing at a location not currently assigned a location
  code number: use the code for ``Other'' for the state or country at
  which the landing occurs and notify NMFS of the actual location so
  that the list may be updated. For example, to report a landing for
  Levelock, Alaska which currently has no code assigned, use code
  ``499'' ``Other AK.''


  Table 14b to Part 679--Port of Landing Codes: Non-Alaska (California,
                       Oregon, Canada, Washington)
------------------------------------------------------------------------
                                                          NMFS    ADF&G
                       Port Name                          Code     Code
------------------------------------------------------------------------
CALIFORNIA
------------------------------------------------------------------------
 Eureka                                                     500      EUR
------------------------------------------------------------------------
 Other California\1\                                        599      n/a
------------------------------------------------------------------------
CANADA
------------------------------------------------------------------------

[[Page 63259]]

 
 Other Canada\1\                                            899      n/a
------------------------------------------------------------------------
 Port Edward                                                802      PRU
------------------------------------------------------------------------
 Prince Rupert                                              802      PRU
------------------------------------------------------------------------
OREGON
------------------------------------------------------------------------
 Astoria                                                    600      AST
------------------------------------------------------------------------
 Newport                                                    603      NPT
------------------------------------------------------------------------
 Other Oregon\1\                                            699      n/a
------------------------------------------------------------------------
 Portland                                                   n/a      POR
------------------------------------------------------------------------
 Warrenton                                                  604      n/a
------------------------------------------------------------------------
WASHINGTON
------------------------------------------------------------------------
 Anacortes                                                  700      ANA
------------------------------------------------------------------------
 Bellingham                                                 702      n/a
------------------------------------------------------------------------
 Blaine                                                     717      BLA
------------------------------------------------------------------------
 Everett                                                    704      n/a
------------------------------------------------------------------------
 La Conner                                                  708      LAC
------------------------------------------------------------------------
 Olympia                                                    n/a      OLY
------------------------------------------------------------------------
 Other Washington\1\                                        799      n/a
------------------------------------------------------------------------
 Seattle                                                    715      SEA
------------------------------------------------------------------------
 Tacoma                                                     n/a      TAC
------------------------------------------------------------------------
\1\ To report a landing at a location not currently assigned a location
  code number: use the code for ``Other'' for the state or country at
  which the landing occurs and notify NMFS of the actual location so
  that the list may be updated. For example, to report a landing for
  Vancouver, which currently has no code assigned, use ``899'' ``Other
  Canada.''


  Table 14c to Part 679--At-sea Operation Type Codes to be Used as Port
            Codes for Vessels Matching this Type of Operation
------------------------------------------------------------------------
                    Code                              Description
------------------------------------------------------------------------
FCP                                           Floating catcher processor
------------------------------------------------------------------------
FLD                                           Floating domestic
                                               mothership
------------------------------------------------------------------------
IFP                                           Inshore floating processor
                                               - processing in State of
                                               Alaska waters only
------------------------------------------------------------------------


          Table 15 to Part 679--Gear Codes, Descriptions, and Use (X Indicates Where this Code is Used)
----------------------------------------------------------------------------------------------------------------
                                Use Alphabetic Code to Complete      Use Numeric Code to Complete the Following:
                                         the Following:          --------------------------------------------------
                              -----------------------------------
                                                  Electronic WPR            Shoreside
         Name of Gear           Alpha     NMFS           &        Numeric  Electronic     IFQ     CR
                                Gear    Logbooks  Check[dash]in/    Gear     Logbook   Internet  Crab  ADF&G  COAR
                                Code    & Paper   Check[dash]out    Code     (SPELR)    & Forms
                                        Forms\1\      Code\1\
------------------------------------------------------------------------------------------------------------ ------
Diving                         OTH     X          X               11       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Dredge                         OTH     X          X               22       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Dredge, hydro/mechanical       OTH     X          X               23       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Fish wheel                     OTH     X          X               08       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Gillnet, drift                 OTH     X          X               03       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Gillnet, herring               OTH     X          X               34       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Gillnet, set                   OTH     X          X               04       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Gillnet, sunken                OTH     X          X               41       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Hand line/jig/troll (IFQ       n/a     .........  ..............  05       X           X         ....  X
 name: hand troll)
--------------------------------------------------------------------------------------------------------------
Handpicked                     OTH     X          X               12       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Hatchery                       n/a     .........  ..............  77       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Hook[dash]and[dash]line        HAL     X          X               61       X           X         ....  X
--------------------------------------------------------------------------------------------------------------
Jig, mechanical (IFQ name:     JIG     X          X               26       X           X         ....  X
 jigs)
--------------------------------------------------------------------------------------------------------------
Net, dip                       OTH     X          X               13       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Net, ring                      OTH     X          X               10       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Other/specify                  OTH     X          X               99       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Pair trawl                     \(1)\   .........  ..............  37       ..........  ........  ....  X
--------------------------------------------------------------------------------------------------------------

[[Page 63260]]

 
Pot                            POT     X          X               91       X           X         X     X
--------------------------------------------------------------------------------------------------------------
Pound                          OTH     X          X               21       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Seine, purse                   OTH     X          X               01       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Seine, beach                   OTH     X          X               02       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Shovel                         OTH     X          X               18       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Trap                           OTH     X          X               90       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Trawl, beam                    \(1)\   .........  ..............  17       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Trawl, double otter            \(1)\   .........  ..............  27       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Trawl, nonpelagic/bottom       NPT     X          X               07       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Trawl, pelagic/midwater        PTR     X          X               47       X           ........  ....  X
--------------------------------------------------------------------------------------------------------------
Troll, dinglebar               TROLL   X          X               25       X           X         ....  X
--------------------------------------------------------------------------------------------------------------
Troll, power gurdy             TROLL   X          X               15       X           X         ....  X
--------------------------------------------------------------------------------------------------------------
Weir                           OTH     X          X               14       X           ........  ....  X
----------------------------------------------------------------------------------------------------------------
\1\For groundfish logbooks, forms, electronic WPR, electronic check-in/out reports: all trawl gear must be
  reported as either nonpelagic trawl (NPT) or pelagic trawl (PTR).

    13. Add part 680 to read as follows:

PART 680--SHELLFISH FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF 
ALASKA

Subpart A--General

Sec.
680.1 Purpose and scope.
680.2 Definitions.
680.3 Relation to other laws.
680.4 Permits.
680.5 Recordkeeping and reporting (R&R).
680.6 Crab economic data report (EDR).
680.7 Prohibitions.
680.8 Facilitation of enforcement.
680.9 Penalties.

Subpart B--Management Measures

680.20 Arbitration System.
680.21 Crab fishery cooperatives.
680.22 Sideboard protections for GOA groundfish fisheries.
680.23 Equipment and operational requirements.
680.30 [Reserved]

Subpart C--Individual Fishing Quota Management Measures

680.40 Quota Share (QS), Processor QS (PQS), Individual Fishing 
Quota (IFQ), and Individual Processor Quota (IPQ) Issuance.
680.41 Transfer of QS and IFQ.
680.42 Limitations on use of QS, PQS, IFQ, and IPQ.
680.43 Determinations and appeals.
680.44 Cost recovery.
Table 1 to Part 680--Crab Rationalized (CR) Fisheries
Table 2 to Part 680--Crab Species Codes
Table 3a to Part 680--Crab Delivery Condition Codes
Table 3b to Part 680--Crab Disposition or Product Codes
Table 4 to Part 680--Crab Process Codes
Table 5 to Part 680--Crab Size
Table 6 to Part 680--Crab Grade
Table 7 to Part 680--Eligibility for Initial Issuance of Crab QS by 
Crab QS Fishery
Table 8 to Part 680--Initial QS and PQS Pool for Each Crab QS 
Fishery
Table 9 to Part 680--Eligibility for Initial Issuance of Crab PQS by 
Crab QS Fishery

    Authority: 16 U.S.C. 1862.

Subpart A--General


Sec.  680.1  Purpose and scope.

    Regulations in this part implement policies developed by the North 
Pacific Fishery Management Council and approved by the Secretary of 
Commerce in accordance with the Magnuson[hyphen]Stevens Fishery 
Conservation and Management Act. In addition to part 600 of this 
chapter, these regulations implement the following:
    (a) Fishery Management Plan (FMP) for Bering Sea and Aleutian 
Islands King and Tanner Crabs. Regulations in this part govern 
commercial fishing for, and processing of, king and Tanner crabs in the 
Bering Sea and Aleutian Islands Area pursuant to section 313(j) of the 
Magnuson[hyphen]Stevens Act, including regulations implementing the 
Crab Rationalization Program for crab fisheries in the Bering Sea and 
Aleutian Islands Area, and including regulations superseding State of 
Alaska regulations applicable to the commercial king and Tanner crab 
fisheries in the Exclusive Economic Zone (EEZ) of the Bering Sea and 
Aleutian Islands Area that are determined to be inconsistent with the 
FMP.
    (b) License Limitation Program. Commercial fishing for crab species 
not included in the Crab Rationalization Program for crab fisheries of 
the Bering Sea and Aleutian Islands Area remains subject to the License 
Limitation Program for the commercial crab fisheries in the Bering Sea 
and Aleutian Islands Area under part 679 of this chapter.


Sec.  680.2  Definitions.

    In addition to the definitions in the Magnuson[hyphen]Stevens Act, 
in 50 CFR part

[[Page 63261]]

600, and Sec.  679.2 of this chapter, the terms used in this part have 
the following meanings:
    Adak community entity means the non-profit entity incorporated 
under the laws of the state of Alaska that represents the community of 
Adak and has a board of directors elected by the residents of Adak.
    Affiliation means a relationship between two or more entities in 
which one directly or indirectly owns or controls a 10[hyphen]percent 
or greater interest in, or otherwise controls another, or a third 
entity directly or indirectly owns or controls a 10[hyphen]percent or 
greater interest in, or otherwise controls both. For the purpose of 
this definition, the following terms are further defined:
    (1) Entity. An entity may be an individual, corporation, 
association, partnership, joint[hyphen]stock company, trust, or any 
other type of legal entity, any receiver, trustee in bankruptcy or 
similar official or liquidating agent, or any organized group of 
persons whether incorporated or not, that holds direct or indirect 
interest in:
    (i) QS, PQS, IFQ, or IPQ; or,
    (ii) For purposes of the EDR, a vessel or processing plant 
operating in CR fisheries.
    (2) Indirect interest. An indirect interest is one that passes 
through one or more intermediate entities. An entity's percentage of 
indirect interest in a second entity is equal to the entity's 
percentage of direct interest in an intermediate entity multiplied by 
the intermediate entity's direct or indirect interest in the second 
entity.
    (3) Controls a 10[hyphen]percent or greater interest. An entity 
controls a 10[hyphen]percent or greater interest in a second entity if 
the first entity:
    (i) Controls a 10[hyphen]percent ownership share of the second 
entity, or
    (ii) Controls 10[hyphen]percent or more of the voting stock of the 
second entity.
    (4) Otherwise controls. An entity otherwise controls another when 
the first entity has the power through any other means whatsoever to 
exercise a controlling influence over the management or policies of the 
other entity, unless such power is solely the result of an official 
position with such entity.
    Arbitration IFQ means:
    (1) Class A CVO IFQ held by a person who is not a holder of PQS or 
IPQ and who is not affiliated with any holder of PQS or IPQ,
    (2) Prior to July 1, 2008, CVC IFQ held by a person who is not a 
holder of PQS or IPQ and who is not affiliated with any holder of PQS 
or IPQ that the holder has elected to submit to the Arbitration System, 
and
    (3) After July 1, 2008, Class A CVC IFQ held by a person who is not 
a holder of PQS or IPQ and is not affiliated with any holder of PQS or 
IPQ.
    (4) IFQ held by a crab harvesting cooperative so long as no member 
of that crab harvesting cooperative:
    (i) Holds PQS or IPQ; or
    (ii) Is affiliated with a person who holds PQS or IPQ.
    Arbitration QS means:
    (1) CVO QS held by a person who is not a holder of PQS or IPQ and 
is not affiliated with any holder of PQS or IPQ,
    (2) Prior to July 1, 2008, CVC QS held by a person who is not a 
holder of PQS or IPQ and is not affiliated with any holder of PQS or 
IPQ and that the holder has elected to submit to the arbitration 
process,
    (3) After July 1, 2008, CVC QS held by a person who is not a holder 
of PQS or IPQ and is not affiliated with any holder of PQS or IPQ .
    Arbitration System means the system established by the contracts 
required by Sec.  680.20 including the process by which the Market 
Report and Non[hyphen]Binding Price Formula are produced and the 
Binding Arbitration process.
    Assessed value means the most recent value for a vessel and gear 
provided in a marine survey.
    Auditor means an examiner employed by, or under contract to, the 
data collection agent to verify data submitted in an economic data 
report.
    Blind data means any data collected from the economic data report 
by the data collection agent that are subsequently amended by removing 
personal identifiers, including, but not limited to social security 
numbers, crew permit numbers, names and addresses, Federal fisheries 
permit numbers, Federal processor permit numbers, Federal tax 
identification numbers, State of Alaska vessel registration and permit 
numbers, and by adding in their place a nonspecific identifier.
    Box size means the capacity of a crab-packing container in 
kilograms or pounds.
    BSAI crab means those crab species governed under the Fishery 
Management Plan (FMP) for Bering Sea/Aleutian Islands King and Tanner 
Crabs.
    BSAI Crab Capacity Reduction Program means the program authorized 
by Public Law 106[hyphen]554, as Amended by Public Law 107[hyphen]20 
and Public Law 107[hyphen]117.
    BSAI crab fisheries means those crab fisheries governed under the 
Fishery Management Plan (FMP) for Bering Sea/Aleutian Islands King and 
Tanner Crabs.
    Captain means, for the purposes of the EDR, a vessel operator.
    Catcher/Processor (CP) means a vessel that is used for catching 
crab and processing that crab.
    Catcher vessel means a vessel that is used for catching crab and 
that does not process crab on board.
    CDQ community means a community eligible to participate in the 
Western Alaska Community Development Program under subpart C of 50 CFR 
part 679.
    CDQ group means a CDQ group as that term is defined at 50 CFR 
679.2.
    Committed IFQ means:
    (1) Any Arbitration IFQ for which the holder of such IFQ has agreed 
or committed to delivery of crab harvested with the IFQ to the holder 
of previously uncommitted IPQ and for which the holder of the IPQ has 
agreed to accept delivery of that crab, regardless of whether such 
agreement specifies the price or other terms for delivery or
    (2) Any Arbitration IFQ for which, on or after the date which is 25 
days prior to the opening of the first crab fishing season in the QS 
crab fishery for such IFQ, the holder of the IFQ has unilaterally 
committed to delivery of crab harvested with the IFQ to the holder of 
previously uncommitted IPQ, regardless of whether the IFQ and IPQ 
holders have reached an agreement that specifies the price or other 
terms for delivery.
    Committed IPQ means any IPQ for which the holder of such IPQ has 
received a commitment of delivery from a holder of Arbitration IFQ such 
that the Arbitration IFQ is committed IFQ, regardless of whether the 
Arbitration IFQ and IPQ holders have reached an agreement that 
specifies the price or other terms for delivery.
    CP standard price means price, expressed in U.S. dollars per raw 
crab pound, for all CR crab landed by a CP as determined for each crab 
fishing year by the Regional Administrator and documented in a CP 
standard price list published by NMFS.
    Crab cooperative IFQ means the annual catch limit of IFQ crab that 
may be harvested by a crab harvesting cooperative that is lawfully 
allocated a harvest privilege for a specific portion of the TAC of a CR 
fishery.
    Crab cost recovery fee liability means that amount of money, in 
U.S. dollars, owed to NMFS by a CR allocation holder or RCR as 
determined by multiplying the appropriate ex[hyphen]vessel value of the 
amount of CR crab debited from a CR allocation by the appropriate crab 
fee percentage.
    Crab fee percentage means that positive number no greater than 3 
percent determined for each crab fishing year by the Regional 
Administrator and

[[Page 63262]]

used to calculate the crab cost recovery fee liability for a CR 
allocation holder under the Crab Rationalization Program.
    Crab fishing year means the period from July 1 of one calendar year 
through June 30 of the following calendar year.
    Crab grade means a grading system to describe the quality of crab.
    (1) Grade 1 means standard or premium quality crab, and
    (2) Grade 2 means below standard quality crab.
    Crab Individual Fishing Quota (Crab IFQ) means the annual catch 
limit of a CR fishery that may be harvested by a person who is lawfully 
allocated a harvest privilege for a specific portion of the TAC of a CR 
fishery with the following designations or with the designation as a 
crab IFQ hired master:
    (1) Catcher Vessel Crew IFQ (CVC) means a permit to annually 
harvest, but not process, a CR crab on board a vessel.
    (2) Catcher Vessel Owner IFQ (CVO) means a permit to annually 
harvest, but not process, a CR crab on board a vessel.
    (i) Class A IFQ means IFQ that is required to be delivered to a 
processor holding unused IPQ.
    (ii) Class B IFQ means IFQ that is not required to be delivered to 
a processor holding unused IPQ.
    (3) Catcher/Processor Owner IFQ (CPO) means a permit to annually 
harvest and process a CR crab with that vessel.
    (4) Catcher/Processor Crew IFQ (CPC) means a permit to annually 
harvest and process a CR crab with that vessel.
    Crab IFQ hired master means a person who holds a crab IFQ hired 
master permit issued under Sec.  680.4.
    Crab IFQ permit holder means the person identified on an IFQ 
permit.
    Crab LLP license history means for any particular crab LLP license: 
the total legal landings made on the vessel or vessels that gave rise 
to that license and any total legal landings made under the authority 
of that license.
    Crab quota share (crab QS) means a permit the face amount of which 
is used as the basis for the annual calculation and allocation of a 
person's crab IFQ with the following designations:
    (1) Catcher vessel crew CVC QS means a permit the face amount of 
which is used as the basis for the annual calculation and allocation of 
crab IFQ to qualified persons.
    (2) Catcher vessel owner (CVO) QS means a permit the face amount of 
which is used as the basis for the annual calculation and allocation of 
crab IFQ to qualified persons.
    (3) Catcher/processor owner (CPO) QS means a permit the face amount 
of which is used as the basis for the annual calculation and allocation 
of crab IFQ to qualified persons.
    (4) Catcher/processor crew (CPC) QS means a permit the face amount 
of which is used as the basis for the annual calculation and allocation 
of crab IFQ to qualified persons.
    Crab QS fishery means those CR fisheries under Table 1 to this part 
that require the use of QS and PQS and their resulting IFQ and IPQ to 
harvest and process IFQ crab.
    Crab QS program means the individual fishing quota (IFQ) or 
individual processing quota (IPQ) programs for CR crab of the BSAI off 
Alaska and governed by regulations under this part.
    Crab QS regional designation means the designation of QS or PQS and 
the associated IFQ and IPQ subject to regional delivery requirements in 
this part.
    Crab Rationalization (CR) crab means those crab species subject to 
management under the Crab Rationalization Program described in Table 1 
to this part.
    Crab Rationalization (CR) Program means the individual fishing 
quota (IFQ), individual processing quota (IPQ), Community Development 
Quota (CDQ), and the Adak community allocation programs, including all 
management, monitoring, and enforcement components, for Bering Sea/
Aleutian Islands King and Tanner Crabs in waters off Alaska governed by 
the regulations of this part.
    Crab rationalized (CR) allocation means any allocation of CR crab 
authorized under the QS/IFQ, PQS/IPQ, CDQ, or the Adak community 
allocation programs.
    Crab rationalized (CR) fisheries means those fisheries defined in 
Table 1 to part 680.
    Crew means:
    (1) Any individual, other than the captain or fisheries observers, 
working on a vessel that is engaged in fishing.
    (2) For the purposes of the EDR, each employee on a vessel, 
excluding the captain, that participated in any CR fishery.
    Custom processing means processing of crab undertaken on behalf of 
another person.
    Data collection agent (DCA) means the entity selected by the 
Regional Administrator to distribute an economic data report (EDR) to a 
person required to complete it, to receive the completed EDR, to review 
and verify the accuracy of the data in the EDR, and to provide those 
data to authorized recipients.
    Days at Sea means, for the purposes of the EDR, the number of days 
spent at sea while fishing for crab, including travel time to and from 
fishing grounds.
    Economic data report (EDR) means the report of cost, labor, 
earnings, and revenue data for catcher vessels, catcher/processors, 
shoreside crab processors, and stationary floating crab processors 
participating in CR fisheries.
    Eligible crab community (ECC) means a community in which at least 3 
percent of the initial allocation of processor quota share of any crab 
fishery is allocated. The specific communities include:
    (1) CDQ Communities.
    (i) Akutan;
    (ii) False Pass;
    (iii) St. George; and
    (iv) St. Paul.
    (2) Non[hyphen]CDQ Communities.
    (i) Dutch Harbor;
    (ii) Kodiak;
    (iii) King Cove;
    (iv) Port Moller; and
    (v) Adak.
    Eligible crab community (ECC) entity means a non[hyphen]profit 
organization specified under Sec.  680.41(j)(2) that is designated by 
an ECC other than Adak to represent it for the purposes of engaging in 
the right of first refusal of transfer of crab PQS or IPQ outside the 
ECC under contract provisions set forth under Sec.  680.40(m). For 
those ECCs that also are CDQ communities, the ECC entity is the CDQ 
group to which the ECC is a member.
    Eligible crab community organization (ECCO) means a 
non[hyphen]profit organization that represents at least one ECC as 
defined in this part and that has been approved by the Regional 
Administrator to obtain by transfer and hold crab QS and to lease IFQ 
resulting from the crab QS on behalf of an ECC.
    Eligible community resident means, for purposes of the Crab QS 
program, any individual who:
    (1) Is a citizen of the United States;
    (2) Has maintained a domicile in the ECC from which the individual 
requests to lease crab IFQ for at least 12 consecutive months 
immediately preceding the time when the assertion of residence is made 
and who is not claiming residency in another community, state, 
territory, or country; and
    (3) Is otherwise eligible to receive crab QS or IFQ by transfer.
    Ex[hyphen]vessel value means:
    (1) For the shoreside processing sector. The total U.S. dollar 
amount of all compensation, monetary and non[hyphen]monetary, including 
any retro[hyphen]payments, received by a CR allocation holder for the 
purchase of any CR crab debited from the CR allocation described in 
terms of raw crab pounds.
    (2) For the catcher/processor sector. The total U.S. dollar amount 
of CR crab

[[Page 63263]]

landings as calculated by multiplying the number of raw crab pounds 
debited from the CR allocation by the appropriate CP standard price 
determined by the Regional Administrator.
    Finished pounds means the total weight of processed product, not 
including container, in pounds.
    IFQ account means the amount of crab IFQ in round pounds that is 
held by a person at any particular time for a crab QS fishery, sector, 
region, and class.
    IFQ crab means crab species listed in Table 1 to this part subject 
to management under the crab QS program.
    Initial processor quota share pool means the total number of 
processor quota share units for each crab QS fishery which is the basis 
of initial processor quota share allocations.
    Initial quota share pool means the total number of 
non[hyphen]processor quota share units for each CR fishery which is the 
basis of initial QS allocations.
    Individual processor quota (IPQ) means the annual amount of crab 
that may be processed by a person who is lawfully allocated a 
processing privilege for a specific portion of the TAC for a CR 
fishery.
    IPQ account means the amount of crab IPQ in round pounds that is 
held by a person at any particular time for a CR fishery and region.
    Landing means the transfer of raw crab harvested by a vessel prior 
to that crab being reported on a CR crab landing report.
    (1) For catcher/processors, the amount of crab retained during a 
reporting period constitutes a landing.
    (2) For catcher vessels, the amount of crab landed from the boat at 
a single location/time constitutes a landing.
    Lease of QS/IFQ or PQS/IPQ means a temporary, annual transfer of 
crab IFQ or IPQ without the underlying QS or PQS.
    Leaseholder means, for purposes of the EDR, a person who:
    (1) Is identified as the leaseholder in a written lease of a 
catcher vessel, catcher/processor, shoreside crab processor, or 
stationary floating crab processor, or
    (2) Pays the expenses of a catcher vessel, catcher/processor, 
shoreside crab processor, or stationary floating crab processor, or
    (3) Claims expenses for the catcher vessel, catcher/processor, 
shoreside crab processor, or stationary floating crab processor as a 
business expense on schedule C of his/her Federal income tax return or 
on a state income tax return.
    Mutual Agreement for purposes of the Arbitration System means the 
consent and agreement of Arbitration Organizations that represent an 
amount of Arbitration QS equal to more than 50 percent of all the 
Arbitration QS in a fishery, and an amount of PQS equal to more than 50 
percent of all the PQS in a fishery based upon the Annual Arbitration 
Organization Reports.
    Newly constructed vessel means, for the purposes of initial QS 
issuance, a vessel on which the keel was laid by June 10, 2002.
    Official crab rationalization record means the information prepared 
by the Regional Administrator about the legal landings and legal 
processing by vessels and persons in the BSAI crab fisheries during the 
qualifying periods specified at Sec.  680.40.
    Processing, or to process means the preparation of, or to prepare, 
crab to render it suitable for human consumption or storage. This 
includes, but is not limited to, cooking, canning, butchering, 
sectioning, freezing or icing.
    Processor quota share (PQS) means a permit the face amount of which 
is used as the basis for the annual calculation and allocation of an 
IPQ.
    Raw crab pounds means the recorded weight of crab in pounds at 
landing or prior to processing.
    Registered crab receiver (RCR) means a person holding an RCR Permit 
issued by the Regional Administrator.
    Right of First Refusal (ROFR) means the contractual provisions set 
forth under Sec.  680.40(m) between the holders of PQS and ECC entities 
for the opportunity of ECCs to exercise the right to purchase PQS 
proposed to be transferred by a holder of PQS in an ECC.
    Seafood Marketing Association Assessment (SMAA) means the seafood 
processing assessment collected by processing firms and buyers from 
fishery harvesters for the State of Alaska.
    Share payment means an amount of monetary compensation (not salary 
or wages) based on gross or net earnings of a BSAI crab fishing vessel.
    Shoreside crab processor means any person or vessel that receives, 
purchases, or arranges to purchase unprocessed crab, except a catcher/
processor or a stationary floating crab processor.
    Stationary floating crab processor (SFCP) means a vessel of the 
United States that remains anchored or otherwise remains stationary 
while receiving or processing in the waters of the State of Alaska.
    Uncommitted IFQ means any Arbitration IFQ that is not Committed 
IFQ.
    Uncommitted IPQ means any IPQ that is not Committed IPQ.
    U.S. Citizen means:
    (1) Any individual who is a citizen of the United States; or
    (2) Any corporation, partnership, association, or other entity that 
is organized under Federal, state, or local laws of the United States 
or that may legally operate in the United States.


Sec.  680.3  Relation to other laws.

    (a) King and Tanner crab. (1) Additional laws and regulations 
governing the conservation and management of king crab and Tanner crab 
in the BSAI area are contained in 50 CFR part 679, Alaska Statutes at 
A.S. 16, and Alaska Administrative Code at 5 AAC Chapters 34, 35, and 
39.
    (2) The Alaska Administrative Code (at 5 AAC 39.130) governs 
reporting and permitting requirements using the ADF&G ``Intent to 
Operate'' registration form and ``Fish Tickets.''
    (b) Sport, personal use, and subsistence. (1) For State of Alaska 
statutes and regulations governing sport and personal use crab fishing 
other than subsistence fishing, see Alaska Statutes, Title 16--Fish and 
Game; 5 AAC Chapters 47 through 77.
    (2) For State of Alaska statutes and regulations governing 
subsistence fishing for crab, see Alaska Statutes, Title 16--Fish and 
Game; 5 AAC 02.001 through 02.625.


Sec.  680.4  Permits.

    Persons participating in the CR crab fisheries are required to 
possess the permits described in this section. Approval of applications 
under this part may be conditioned on the payment of fees under Sec.  
680.44 or the submission of an EDR as described under Sec.  680.6.
    (a) Crab QS Permit. Crab QS is issued by the Regional Administrator 
to persons who successfully apply for an initial allocation under Sec.  
680.40 or to receive QS by transfer under Sec.  680.41. Once issued, a 
QS permit is valid until modified by transfer under Sec.  680.41; or 
the permit is revoked, suspended, or modified pursuant to Sec.  679.43 
or under 15 CFR part 904.
    (b) Crab PQS Permit. Crab PQS is issued by the Regional 
Administrator to persons who successfully apply for an initial 
allocation under Sec.  680.40 or receive PQS by transfer under Sec.  
680.41. Once issued, a PQS permit is valid until modified by transfer 
under Sec.  680.41 or until the permit is revoked, suspended, or 
modified pursuant to Sec.  679.43 or under 15 CFR part 904.

[[Page 63264]]

    (c) Crab IFQ Permit. (1) A Crab IFQ Permit authorizes the person 
identified on the permit to harvest crab in the fishery identified on 
the permit at any time the fishery is open during the crab fishing year 
for which the permit is issued, subject to conditions of the permit. A 
crab IFQ permit is valid in the following circumstances:
    (i) Until the end of the crab fishing year for which the permit is 
issued;
    (ii) Until the amount harvested is equal to the amount specified on 
the permit;
    (iii) Until the permit is modified by transfers under Sec.  680.41; 
or
    (iv) Until the permit is revoked, suspended, or modified pursuant 
to Sec.  679.43 or under 15 CFR part 904.
    (2) A legible copy of any Crab IFQ Permit must be carried on board 
the vessel used by the permitted person at all times that such crab are 
retained on board.
    (3) A Crab IFQ Permit is issued on an annual basis by the Regional 
Administrator to persons who hold crab QS of the type specified by the 
QS and who have submitted a complete Annual Application for Crab IFQ/
IPQ Permit that is subsequently approved by the Regional Administrator.
    (d) Crab IPQ Permit. (1) A Crab IPQ Permit authorizes the person 
identified on the permit to process the IFQ crab identified on the 
permit, subject to conditions of the permit, until the amount processed 
is equal to the amount specified on the permit or until the permit is 
revoked, suspended, or modified under 15 CFR part 904. An IPQ permit is 
valid in the following circumstances:
    (i) Until the end of the crab fishing year for which the permit is 
issued;
    (ii) Until the amount harvested is equal to the amount specified on 
the permit;
    (iii) Until the permit is modified by transfers under Sec.  680.41; 
or
    (iv) Until the permit is revoked, suspended, or modified pursuant 
to Sec.  679.43 or under 15 CFR part 904.
    (2) A legible copy of a Crab IPQ Permit authorizing processing of 
IFQ crab must be retained on the premises or vessel used by the 
permitted person to process the IFQ crab at all times that such crab 
are retained on the premises or vessel.
    (3) A Crab IPQ Permit is issued on an annual basis by the Regional 
Administrator to persons who hold crab processor QS of the type 
specified by the QS and who have submitted a complete Annual 
Application for Crab IFQ/IPQ Permit that is subsequently approved by 
the Regional Administrator. A complete application must be submitted no 
later than August 1 of the crab fishing year for which a person is 
applying to receive IFQ or IPQ. If a complete application is not 
submitted by this date, that person will not receive IFQ or IPQ for 
that crab fishing year.
    (e) Contents of Annual Application for Crab IFQ/IPQ permit. A 
person applying for an Annual Crab IFQ or IPQ permit must include the 
following information:
    (1) Applicant information. (i) Applicant's name and NMFS Person ID;
    (ii) Applicant's date of birth or, if a non[hyphen]individual, date 
of incorporation;
    (iii) Applicant's social security number (optional) or tax 
identification number;
    (iv) Applicant's permanent business mailing address and any 
temporary mailing address the applicant wishes to use;
    (v) Applicant's telephone number, facsimile number, and 
e[hyphen]mail address;
    (2) Crab IFQ or IPQ Permit identification. (i) Indicate Crab QS 
fishery(ies) for which applicant is applying to receive IFQ or IPQ by 
type;
    (ii) Indicate (YES or NO) whether applicant has joined a crab 
cooperative; if YES, indicate cooperative's name;
    (3) Affidavit of affiliation. A completed affidavit of affiliation 
declaring any and all affiliations, as the term ``affiliation'' is 
defined at Sec.  680.2, with any PQS permit holders. An affidavit of 
affiliation will include affirmations by the applicant pertaining to 
relationships that may involve direct or indirect ownership or control 
of the delivery of IFQ and any supplemental documentation deemed 
necessary by NMFS to determine whether an affiliation exists;
    (i) Whether any entity holding PQS or IPQ owns, directly or 
indirectly, 10 percent or more of the applicant for IFQ or IPQ;
    (ii) Whether any entity that holds PQS or IPQ is affiliated with 
the applicant, as affiliation is defined in Sec.  680.2;
    (iii) If the answer is YES to either paragraph (e)(3)(i) or 
(e)(3)(ii) of this section, provide a list of all PQS or IPQ holders 
with which you are affiliated, including: full name, business mailing 
address, and business telephone number.
    (4) Identification of ownership interests. If the applicant is not 
an individual, the names of all persons, to the individual level, 
holding an ownership interest in the entity and the percentage 
ownership each person and individual holds in the applicant;
    (5) Certification of applicant. The applicant must sign and date 
the application certifying that all information is true, correct, and 
complete to the best of his/her knowledge and belief. Print the name of 
the applicant. If the application is completed by an authorized 
representative, proof of authorization must accompany the application.
    (6) EDR submission. Verification that a current EDR was submitted 
to the DCA for this applicant, if required under Sec.  680.6.
    (f) Crab IFQ Hired Master Permit. (1) A Crab IFQ Hired Master 
Permit authorizes the individual identified on the permit to harvest 
and land IFQ crab for debit against the specified Crab IFQ Permit until 
the Crab IFQ Hired Master Permit expires or is revoked, suspended, or 
modified under 15 CFR part 904 or on request of the Crab IFQ Permit 
holder.
    (2) A legible copy of an IFQ Hired Master Permit must be on board a 
vessel used to harvest IFQ crab at all times such crab are retained on 
board. Except as specified in Sec.  680.42, an individual who is issued 
a Crab IFQ Hired Master Permit must remain aboard the vessel used to 
harvest IFQ crab with that permit during the crab QS fishing trip and 
at the landing site until all crab harvested under that permit are 
offloaded and the landing report for such crab is completed.
    (3) Contents of Application for Crab IFQ Hired Master Permit. A 
complete application for a Crab IFQ Hired Master Permit must include 
the following:
    (i) Purpose of application. Whether the application is to add or to 
delete a hired master and identification of crab permit(s) for which 
this application is submitted;
    (ii) Permit holder information. (A) Name and NMFS Person ID;
    (B) Social security number (optional) or tax ID number;
    (C) Permanent business mailing address, and any temporary mailing 
address the applicant wishes to use, business telephone number, 
facsimile number, and e[hyphen]mail address (if available);
    (iii) Identification of vessel upon which crab IFQ will be 
harvested. (A) Vessel Name, ADF&G vessel registration number, USCG 
documentation number;
    (B) Indicate whether (YES or NO) the applicant owns at least a 10 
percent ownership interest in the vessel the Crab IFQ hired master will 
use to fish permit holder's IFQ. If YES, provide documentation of 
applicant's 10[hyphen]percent ownership interest.
    (iv) Crab IFQ hired master permit holder information. Complete a 
separate section for each crab IFQ hired master.
    (A) Name and NMFS Person ID;
    (B) Social security number (optional);

[[Page 63265]]

    (C) Date of birth of hired master;
    (D) Permanent business mailing address, and any temporary mailing 
address the applicant wishes to use, business telephone number, 
facsimile number, and e[hyphen]mail address (if available).
    (v) Applicant certification. The applicant must sign and date the 
application certifying that all information is true, correct, and 
complete to the best of his/her knowledge and belief. If the 
application is completed by an authorized representative, then a proof 
of authorization must accompany the application.
    (g) RCR permit. (1) An RCR permit is issued on an annual basis. An 
RCR permit is valid during the crab fishing year for which it is issued 
until the RCR permit expires or is revoked, suspended, or modified 
under 15 CFR part 904.
    (2) An RCR permit is required for:
    (i) Any person who receives unprocessed CR crab from the person(s) 
who harvested the crab;
    (ii) The owner or operator of a vessel that processes CR crab at 
sea; and
    (iii) Any person required to submit a Departure Report under 50 CFR 
679.5(l)(4).
    (3) Contents of Application for RCR permit. A complete application 
for an RCR permit must include verification that any and all fees owed 
by the applicant are paid and that a current EDR was submitted to the 
DCA for this applicant, if required under Sec.  680.6. In addition, the 
applicant must include the following information:
    (i) Indicate whether the application is a renewal of an existing 
RCR permit, an amendment to an existing RCR permit, or a request for a 
new RCR permit. If a renewal of or amendment to an existing RCR permit, 
include the applicant's RCR permit number;
    (ii) Applicant identification. (A) Name and NMFS Person ID of the 
applicant;
    (B) Applicant's social security number or tax ID number;
    (C) Name of contact person for the applicant, if applicant is not 
an individual;
    (D) Permanent business mailing address;
    (E) Physical land[hyphen]based location of facility including 
street, city, and state, at which the RCR operates. A separate RCR 
permit is required for each facility;
    (F) Physical location of vessel including port name and position 
coordinates in latitude and longitude to the nearest minute; and
    (G) Business telephone number, facsimile number, and e[hyphen]mail 
address (if available).
    (iii) Type of activity. Type of receiving or processing activity 
whether catcher/processor or shoreside processor;
    (iv) Individual responsible for the submission of the EDR. (A) Name 
of the designated representative submitting the EDR required at Sec.  
680.6 on behalf of the RCR;
    (B) Business mailing address, telephone number, facsimile number, 
and e[hyphen]mail address, if different from the RCR's contact 
information;
    (v) Application certification. The applicant must sign and date the 
application certifying that all information is true, correct, and 
complete to the best of his/her knowledge and belief. If the 
application is completed by an authorized representative, then a proof 
of authorization must accompany the application.
    (vi) Verification that a current EDR was submitted to the DCA for 
this applicant, if required under Sec.  680.6.
    (h) Federal Crab Vessel Permit. The owner of a vessel must have a 
Federal Crab Vessel Permit on board that vessel when used to fish for 
CR crab.
    (1) A Federal Crab Vessel Permit is issued on an annual basis and 
is in effect from the date of issuance through the end of the current 
crab fishing year, unless it is revoked, suspended, or modified under 
Sec.  600.735 or Sec.  600.740.
    (2) A Federal Crab Vessel Permit may not be surrendered at any time 
during the crab fishing year for which it is issued.
    (3) Contents of Application for Federal Crab Vessel Permit. A 
complete application for a Federal Crab Vessel Permit must include 
verification that a current EDR was submitted to the DCA for this 
applicant, if required under Sec.  680.6, and the following 
information:
    (i) Indicate whether (YES or NO) the application amends an existing 
Federal Crab Vessel permit; if YES, indicate permit number of the 
existing permit;
    (ii) Owner information. The name(s), permanent business mailing 
address, social security number (voluntary) or tax ID, business 
telephone number, business facsimile number, business e[hyphen]mail 
address (if available) of all vessel owners, and the name of any person 
or company (other than the owner) that manages the operation of the 
vessel;
    (iii) Vessel information. The vessel's name and home port (city and 
state), ADF&G processor code, whether a vessel of the United States, 
USCG documentation number, and ADF&G vessel registration number, 
vessel's LOA (in feet), registered length (in feet), gross tonnage, net 
tonnage, and shaft horsepower.
    (iv) Type of vessel operation. Indicate the type of operations the 
vessel may conduct during a crab fishing year.
    (v) Designated representative for EDR. The name, permanent business 
mailing address, business telephone number, business facsimile number, 
and business e[hyphen]mail address of the designated representative.
    (vi) Applicant certification. The owner(s) of the vessel must sign 
and date the application certifying that all information is true, 
correct, and complete to the best of his/her knowledge and belief. 
Print the applicant name. If the application is completed by an 
authorized representative, then a proof of authorization must accompany 
the application.
    (4) Transfer. A Federal Crab Vessel Permit issued under this 
paragraph is not transferable or assignable and is valid only for the 
vessel for which it is issued.
    (5) Amended Application. The holder of a Federal Crab Vessel Permit 
must submit an amended application for a Federal Crab Vessel Permit 
within 60 days of the date of change in:
    (i) The ownership of the vessel. A copy of the current USCG 
documentation for the vessel showing the change in ownership must 
accompany the amended application.
    (ii) The individual responsible for submission of the EDR on behalf 
of the vessel's owner(s).
    (i) Annual Crab Harvesting Cooperative IFQ Permit. See Sec.  
680.21.
    (j) Issuance. The Regional Administrator may issue or amend a Crab 
QS, PQS, IFQ, and IPQ Permit or a Crab IFQ Hired Master Permit annually 
or at other times as needed under this part.
    (k) Transfer. Crab QS, PQS, IFQ and IPQ permits and Federal Crab 
Vessel Permits issued under Sec.  680.4 are not transferable, except as 
provided under Sec.  680.41. Crab IFQ Hired Master Permits, RCR 
permits, and crab cooperative permits issued under this section are not 
transferable.
    (l) Inspection. The holder of a Crab IFQ Permit, Crab IPQ Permit, 
or Crab IFQ Hired Master Permit must present a legible copy of the 
permit on request of any authorized officer or RCR receiving a crab IFQ 
landing. The operator of a vessel used to fish for BSAI crab must 
present the original Federal Crab Vessel Permit on request of any 
authorized officer or RCR receiving a crab IFQ landing. A legible copy 
of the RCR permit must be present at the location of a crab IFQ landing 
and must be made available by an individual representing

[[Page 63266]]

the RCR for inspection on request of any authorized officer.


Sec.  680.5  Recordkeeping and reporting (R&R).

    (a) General requirements--(1) Recording and reporting crab. Any CR 
crab harvested that is retained, landed, received or processed, and 
crab that cannot be processed, must be recorded and reported.
    (2) Responsibility. The following participants in the CR crab 
fisheries are responsible for complying with the applicable R&R 
requirements provided in paragraph (a)(2)(v) of this section:
    (i) The owner and operator of any vessel used to harvest or process 
CR crab;
    (ii) A crab IFQ permit holder or crab IFQ hired master;
    (iii) A crab IPQ permit holder or the manager of a crab IPQ permit 
holder;
    (iv) An RCR, including an RCR that receives CR crab for custom 
processing, and an RCR that is the operator of a catcher vessel;
    (v) The persons that are responsible for specific reports, forms, 
and records are specified in the following table:

------------------------------------------------------------------------
  Recordkeeping and Reporting
             Report               Person Responsible       Reference
------------------------------------------------------------------------
(A) Product Transfer Report      Owner and operator   Sec.   679.5(g)
 (PTR)                            of catcher/
                                  processor; Owner
                                  and manager of
                                  shoreside
                                  processor or SFCP;
                                  RCR
------------------------------------------------------------------------
(B) U.S. Vessel Activity Report  Owner and operator   Sec.   679.5(k)
 (VAR)                            of vessel
------------------------------------------------------------------------
(C) Transhipment Authorization   Owner or operator    Sec.   679.5(l)(3)
                                  of catcher/
                                  processor; RCR
------------------------------------------------------------------------
(D) IFQ Departure Report         Owner and operator   Sec.   679.5(l)(4)
                                  of vessel
------------------------------------------------------------------------
(E) CR crab Landing Report       RCR                  Sec.   680.5(b)
------------------------------------------------------------------------
(F) Catcher/processor offload    RCR                  Sec.   680.5(c)
 report
------------------------------------------------------------------------
(G) Eligible Crab Community      ECCO                 Sec.   680.5(d)
 Organization (ECCO)
Annual Report for an Eligible
 Crab Community (ECC)
------------------------------------------------------------------------
(H) RCR Fee Submission Form      RCR                  Sec.   680.5(e)
------------------------------------------------------------------------
(I) Crab Economic Data Report    Owners or            Sec.   680.6
 (EDR)                            leaseholders of a
                                  catcher vessel,
                                  catcher/processor,
                                  shoreside
                                  processor, or SFCP
------------------------------------------------------------------------

    (3) Representative. Designation of a representative to complete R&R 
requirements does not relieve the person(s) responsible for compliance 
or ensuring compliance with this section.
    (4) Submittal of information. A person must submit to NMFS all 
information, records, and reports required in this section in English 
and in a legible, timely, and accurate manner, based on A.l.t.; if 
handwritten or typed, in indelible ink.
    (5) Alteration of records. A person may not alter or change any 
entry or record submitted to NMFS, except that an inaccurate, 
incomplete, or incorrect entry or record may be corrected after 
notifying the Regional Administrator at the address and fax number 
listed on each form.
    (6) Inspection of records. A person responsible for R&R under 
paragraph (a)(2)(i) of this section must make available for inspection 
all reports, forms, scale receipts, and CR crab landing report receipts 
upon the request of an authorized officer for the time periods 
indicated in paragraph (a)(7) of this section.
    (7) Retention of records. A person responsible for R&R under 
paragraph (a)(2)(i) of this section must retain all reports and 
receipts as follows:
    (i) On site. Until the end of the crab fishing year during which 
the records were made and for as long thereafter as crab or crab 
products recorded in the records are retained onboard the vessel or 
onsite at the facility; and
    (ii) For 3 years. For 3 years after the end of the crab fishing 
year during which the records were made.
    (8) Landing verification and inspection. Each CR crab landing and 
all crab retained on board the vessel making a CR crab landing are 
subject to verification and inspection by authorized officers.
    (9) Sampling. Each CR crab landing and all crab retained onboard a 
vessel making a CR crab landing are subject to sampling by authorized 
officers and observers.
    (b) Interagency electronic reporting system (IERS). The RCR must 
obtain at his or her own expense, hardware, software, and Internet 
connectivity to support Internet submissions of the CR crab landing 
report on the IERS.
    (1) IERS application for user ID. Each RCR and permit holder must 
submit a data[hyphen]entry application to the Regional Administrator to 
provide information needed to process account access into the IERS. The 
IERS will provide a web page where the applicant will enter 
information. The IERS will validate that all required information is 
submitted, that the information entered is in correct format, and also 
that the requested user ID is not already in use. The IERS will 
generate a PDF document from the information entered by the applicant. 
The user will sign and submit the form. An agency user will review the 
form, confirm that the user should be authorized for the system, and 
will activate the user on the IERS. The IERS will then send the user an 
email telling them they can now use their new user ID.
    (2) Contents of the IERS. The IERS application for user ID must 
contain the following information:
    (i) Date of application;
    (ii) Name of applicant (user);
    (iii) Processor name and location (city and state);
    (iv) Business telephone number, facsimile number, and e[hyphen]mail 
address;
    (v) Requested user ID;
    (vi) Initial password;
    (vii) Security question;

[[Page 63267]]

    (viii) Security answer;
    (ix) Processor code(s);
    (x) Federal processor permit number(s);
    (xi) RCR permit number(s);
    (xii) Registered buyer permit number(s);
    (xiii) Signature of applicant and date signed. Signature of 
applicant on form means that RCR or permit holder, as appropriate, 
agrees to use access privileges to the IERS for purposes of submitting 
legitimate fishery landing reports and to safeguard the user ID and 
password to prevent their use by unauthorized persons.
    (xiv) Signature of plant manager and date signed. Signature of 
plant manager ensures that the applicant is authorized to submit 
landing reports for the processor identification number(s) listed.
    (c) CR crab landings--(1) Joint and several liability. The CR crab 
permit holder and crab IFQ hired master are required to provide 
accurate information to the RCR to complete the CR crab landing report.
    (2) Reporting. Any CR crab not previously reported must be reported 
by the RCR on any day when CR crab is landed.
    (3) Submission requirement. An RCR is required to submit a CR crab 
landing report to the Regional Administrator for each catcher vessel 
landing.
    (4) Properly debited landing. All retained crab catch must be 
weighed, reported and debited from the appropriate IFQ or IPQ account 
under which the catch was harvested, as appropriate. A properly debited 
Internet receipt from the IERS or a manual landing report receipt 
constitutes confirmation that NMFS received the CR crab landing report 
and that the permit holder's account is properly debited. The receipt 
must be signed and dated by both the RCR and permit holder.
    (5) Remain at landing site. Except for landings of CR crab 
processed at sea, once the landing has commenced, the CR crab permit 
holder or crab IFQ hired master and the harvesting vessel may not leave 
the landing facility until the CR crab account is properly debited (as 
defined in paragraph (c)(4) of this section).
    (6) No movement of CR crab. The landed crab may not be moved from 
the facility where it is landed until the CR crab landing report is 
received by the Regional Administrator, and the IFQ permit holder's or 
IPQ permit holder's account is properly debited (as defined in 
paragraph (c)(4) of this section. A properly printed Internet 
submission receipt, or a receipt from another NMFS[hyphen]approved 
reporting method, must be signed by both the RCR and permit holder. 
This receipt constitutes confirmation that NMFS received the CR crab 
landing report and that the permit holder's account is properly 
debited.
    (7) Time limits. (i) A landing of CR crab may commence at any time.
    (ii) For CR crab harvested under a CPO or CPC permit, an RCR must 
submit a completed CR crab landing report to NMFS within 6 hours of the 
end of each calendar day (A.l.t.) in which the CR crab was harvested.
    (iii) For CR crab harvested on a catcher/processor, the owner or 
operator is required to submit a daily CR crab landing report to NMFS 
within 6 hours of the end of each calendar day (A.l.t.) in which CR 
crab was harvested.
    (8) IERS CR landing report procedure. (i) An RCR must enter his or 
her authorized user ID and password to access the IERS. An RCR obtains 
a user ID by submitting to NMFS an IERS application for user ID (see 
paragraph (b)(1) of this section).
    (ii) The CR crab permit holder must provide his or her name, NMFS 
person ID number, crab permit holder permit number, and his or her own 
password or personal identification number (PIN), if required, to enter 
a CR crab landing report.
    (iii) A person who for any reason is unable to properly submit an 
electronic CR crab landing report or debit a landing as required under 
paragraph (c) of this section must telephone NMFS at 
800[hyphen]304[hyphen]4846;
    (iv) The address of the NMFS Alaska Region Internet site will be 
provided to all RCRs receiving crab;
    (9) Contents of CR landing report. The RCR must accurately enter 
the following information in a CR crab landing report:
    (i) RCR permit number;
    (ii) ADF&G processor code of first purchaser;
    (iii) CFEC permit number;
    (iv) Vessel name;
    (v) Valid year of CFEC license;
    (vi) Valid year of processor permit;
    (vii) CR fishery code from Table 1 to this part;
    (viii) Indicate (YES or NO) if a portion of the harvested CR crab 
was delivered to another processor; if YES, indicate the other 
processor's name and associated crab fish ticket number;
    (ix) Indicate (YES or NO) whether all CR crab are removed from the 
vessel;
    (x) Management program: IFQ, CDQ, or Adak. If CDQ enter CDQ group 
number;
    (xi) ADF&G vessel registration number of the delivering vessel;
    (xii) Date fishing began;
    (xiii) Date of the CR crab landing;
    (xiv) Number of pot lifts in each ADF&G statistical area;
    (xv) Number of crew. Enter crew including operator and excluding 
observer(s);
    (xvi) Number of observers;
    (xvii) ADF&G fish ticket number;
    (xviii) Type of processing operation. If shoreside processor, enter 
port code from Tables 14a or 14b to part 679. If catcher/processor, 
enter operation type from Table 14c to part 679.
    (xix) ADF&G statistical area of harvest reported by the IFQ permit 
holder;
    (xx) Species code of catch from Table 2 to this part;
    (xxi) Delivery[hyphen]condition code of catch from Table 3 to this 
part.
    (xxii) Number of crabs retained (optional);
    (xxiii) Price per pound;
    (xxiv) Total value for each species of CR crab reported;
    (xxv) Scale weight of live crab in pounds;
    (xxvi) Scale weight of deadloss in pounds;
    (xxvii) Scale weight of crab retained for personal use in pounds; 
and
    (xxviii) Gear code to describe gear used to harvest CR crab (see 
Table 15 to 50 CFR part 679).
    (10) Custom processing. In addition to the information required in 
paragraph (b)(6) of this section, if custom processing CR crab, enter 
the name and ADF&G processor code of that other person;
    (11) CDQ and Adak landings. Instead of the information described in 
paragraph (b)(6) of this section, an RCR who receives a landing of CR 
crab harvested under the CDQ or Adak community allocation programs must 
submit for each landing the following information for each CR fishery 
and species:
    (i) RCR permit number;
    (ii) CR fishery code from Table 1 to this part;
    (iii) Crab species code from Table 2 to this part;
    (iv) Type of crab, either CDQ or Adak community allocation;
    (v) If CDQ, enter CDQ group number;
    (vi) Crab species amount. Enter the initial accurate scale 
weight(s) in raw crab pounds landed or processed at sea;
    (vii) Price per pound; and
    (viii) Total value for each species of CR crab reported (optional).
    (12) Required signature. After the RCR enters the landing and/or 
processing data in the Internet submission form(s) or other electronic 
method approved by NMFS, the RCR and the IFQ permit holder must sign 
the printed receipts to acknowledge the accuracy of the CR crab landing 
report.

[[Page 63268]]

    (d) Catcher/processor offload report. The owner or operator of a 
catcher/processor that harvested CR crab must complete a catcher/
processor offload report at the time of offload of CR crab and attach a 
scale printout showing gross product offload weight.
    (1) Contents of catcher/processor offload report. The catcher/
processor offload report must include the following:
    (i) Name, ADF&G processor code, and Federal crab vessel permit 
number of the catcher/processor;
    (ii) Fishing start date and time;
    (iii) Fishing stop date and time;
    (iv) Product code from Table 3 to this part
    (v) Total gross weight of product offload, including glaze and 
packaging;
    (vi) Estimated glaze percentage;
    (vii) Case count and average box weight (lb or kg);
    (viii) Net weight of crab product (lb or kg);
    (ix) Completion date and time of catcher/processor offload;
    (x) Location (port) of catcher/processor offload (see Tables 14a 
and 14b to part 679);
    (xi) ADF&G fish ticket number.
    (2) The RCR must submit electronically or by fax the catcher/
processor offload report and a copy of the scale printout within 2 
hours of completion of offload to the Regional Administrator at 
Facsimile No. (907[hyphen]586[hyphen]7465).
    (e) ECCO Annual Report for an ECC. (1) Annually by June 30, each 
ECCO must submit a complete annual report on its CR crab activity for 
the prior crab fishing year for each ECC represented by the ECCO. The 
ECCO must submit a copy of the annual report to the governing body of 
each community represented by the ECCO and to the Regional 
Administrator, NMFS, Alaska Region; P.O. Box 21668; Juneau, AK 99802.
    (2) Contents of ECCO Annual Report. A complete annual report must 
include the following information for the IFQ derived from the QS held 
by the ECCO:
    (i) Name, ADF&G vessel registration number, USCG documentation 
number, length overall (LOA), and home port of each vessel from which 
the IFQ was harvested;
    (ii) Name and business addresses of individuals employed as crew 
members when fishing the IFQ;
    (iii) Criteria used by the ECCO to distribute IFQ leases among 
eligible community residents;
    (iv) Description of efforts made to ensure that IFQ lessees employ 
crew members who are eligible community residents of the ECC aboard 
vessels on which IFQ derived from QS held by a ECCO is being fished;
    (v) Description of the process used to solicit lease applications 
from eligible community residents of the ECC on whose behalf the ECCO 
is holding QS;
    (vi) Names and business addresses and amount of IFQ requested by 
each individual applying to receive IFQ from the ECCO;
    (vii) Any changes in the bylaws of the ECCO, board of directors, or 
other key management personnel;
    (viii) Copies of minutes, bylaw changes, motions, and other 
relevant decision making documents from ECCO board meetings.
    (f) RCR fee submission form. (See Sec.  680.44.)
    (1) Applicability. An RCR who receives any CR crab per Sec.  680.44 
or the RCR's authorized representative must submit a complete RCR Fee 
Submission Form electronically, by mail, or by facsimile to the 
Regional Administrator. Mail to: Regional Administrator, NMFS, Alaska 
Region; Attn: Operations, Management, & Information Division (OMI); 
P.O. Box 21668; Juneau, AK 99802[hyphen]1668; Facsimile No. 
(907[hyphen]586[hyphen]7354). RCRs may also submit an RCR Fee 
Submission Form electronically to NMFS via forms available from RAM or 
on the RAM area of the Alaska Region Home Page at http://www.fakr.noaa.gov/ram.
    (2) Due date and submittal. The reporting period of the RCR Fee 
Submission Form shall be the crab fishing year. An RCR must submit any 
crab cost recovery fee liability payment(s) and the RCR Fee Submission 
Form to NMFS electronically or to the address provided at paragraph 
(e)(1) of this section not later than July 31 following the crab 
fishing year in which the payment for CR crab landings were made.
    (3) Required information. An RCR must accurately record on the RCR 
Fee Submission Form the following information:
    (i) Identification of the RCR. (A) Printed full name and NMFS 
person ID of RCR;
    (B) Social security number or Federal tax identification number;
    (C) Permanent or temporary business mailing address;
    (D) Business telephone number, business facsimile number, and 
business e[hyphen]mail address (if available).
    (E) Certification of applicant. Printed name and signature of 
applicant and date signed. If authorized representative, attach 
authorization to application.
    (ii) Method of Payment (see Sec.  680.44 (a)(4)). The RCR must 
indicate the form of payment for fees including personal check, bank 
certified check (cashier's check), money order, or credit card. If 
credit card, the RCR must submit the card number, expiration date, 
amount of payment, name as printed on the card, signature of the card 
holder, and date of signature.
    (g) Product transfer report. (See Sec.  679.5(g).)
    (h) U.S. Vessel activity report (VAR). (See Sec.  679.5(k).)
    (i) Transshipment authorization. (See Sec.  679.5(l)(3).)
    (j) IFQ departure report. (See Sec.  679.5(l)(4).)
    (k) Catcher vessel longline and pot daily fishing logbook (DFL) and 
catcher/processor daily cumulative production logbook (DCPL). (See 
Sec.  679.5 (c)).


Sec.  680.6  Crab economic data report (EDR).

    (a) Catcher vessel historical EDR. (1) NMFS will select catcher 
vessels from a list of known catcher vessels that made at least one 
landing from fisheries listed in Table 1 to this part between January 
1, 1998, through December 31, 2004, and will publish a Federal Register 
notice identifying vessels whose existing or former owners and 
leaseholders are required to submit an EDR, as follows:
    (i) Owners or leaseholders of catcher vessels that participated in 
the BSAI crab fisheries between January 1, 1998, through December 31, 
2004 and have qualified for or hold QS, PQS, IFQ, or IPQ under this 
Program.
    (ii) Owners or leaseholders of catcher vessels that participated in 
the BSAI crab fisheries between January 1, 1998, through December 31, 
2004, that did not qualify for and receive QS, PQS, IFQ, or IPQ, but 
are participants at any time since January 23, 2004, in the BSAI crab 
fisheries.
    (2) Time limit. The owner or leaseholder of the identified vessels 
must submit the historical EDR to the DCA 60 days after the Federal 
Register notice notifying owners or leaseholders to the address 
provided on the form.
    (3) Instructions. Instructions for submitting a catcher vessel 
historical EDR and certification page are specified in the following 
table:

[[Page 63269]]



----------------------------------------------------------------------------------------------------------------
         If you were ...                           And ...                    You must complete and submit ...
----------------------------------------------------------------------------------------------------------------
(i) The catcher vessel owner as    (A) You harvested BSAI crab in the      Entire EDR for each year that BSAI
 described in paragraph (a)(1) of   vessel described at paragraph           crab was harvested.
 this section                       (a)(4)(ii)(B) of this section and
                                    were notified by NMFS to submit an
                                    EDR for selected years.
                                  ------------------------------------------------------------------------------
                                   (B) No one harvested BSAI crab in the   EDR certification pages.
                                    vessel described at paragraph
                                    (a)(4)(ii)(B) of this section and
                                    were notified by NMFS to submit an
                                    EDR for selected years.
                                  ------------------------------------------------------------------------------
                                   (C) You leased the vessel to another    (1) EDR certification pages.
                                    party, and harvested no BSAI crab in   .....................................
                                    the vessel described at paragraph      (2) Provide the name, address, and
                                    (a)(4)(ii)(B) of this section and       telephone number of the person to
                                    were notified by NMFS to submit an      whom you leased the vessel during
                                    EDR for selected years.                 the NMFS-selected years.
                                  ------------------------------------------------------------------------------
                                   (D) You leased the vessel for a         (1) Entire EDR for each year that
                                    portion of the year to another party,   BSAI crab was harvested.
                                    but harvested some BSAI crab in the    .....................................
                                    vessel described at paragraph          (2) Provide the name, address, and
                                    (a)(4)(ii)(B) of this section and       telephone number of the person to
                                    were notified by NMFS to submit an      whom you leased the vessel during
                                    EDR for selected years.                 the NMFS-selected years.
----------------------------------------------------------------------------------------------------------------
(ii) The leaseholder as described  You harvested BSAI crab in the vessel   Entire EDR for each year that BSAI
 in paragraph (a)(1) of this        described at paragraph (a)(4)(ii)(B)    crab was harvested.
 section                            of this section vessel and were
                                    notified by NMFS to submit an EDR for
                                    selected years.
----------------------------------------------------------------------------------------------------------------

    (4) EDR certification pages. (i) The owner or leaseholder must 
submit the EDR certification pages either:
    (A) As part of the entire EDR. The owner or leaseholder must submit 
the completed EDR certification pages as part of the entire EDR and 
must attest to the accuracy and completion of the EDR by signing and 
dating the certification pages; or
    (B) As a separate document. The owner or leaseholder must submit 
the completed EDR certification pages only, and must attest that they 
meet the conditions exempting them from submitting the EDR, by signing 
and dating the certification pages (see paragraph (a)(3) of this 
section).
    (ii) The owner or leaseholder must submit the following information 
on the certification pages:
    (A) Calendar year of EDR. Calendar year for which the vessel is 
selected;
    (B) Catcher vessel information: Vessel name, company name, USCG 
documentation number, ADF&G vessel registration number, Federal crab 
vessel permit number, crab LLP license number(s), estimated market 
value of vessel and equipment, and replacement value of vessel and 
equipment.
    (C) Owner information: Owner name, title, and business telephone 
number, facsimile number, and e[hyphen]mail address (if available).
    (D) Designated representative. Any owner or leaseholder may appoint 
a designated representative who is an individual for responding to 
questions on the EDR and must ensure that the designated representative 
complies with the regulations in this part. The designated 
representative is the primary contact person for the DCA on issues 
relating to data required in the EDR.
    (E) Person completing this report. (1) Indicate whether the person 
completing this report is the owner or leaseholder;
    (2) If the owner is the person completing this report, check the 
correct box. The information provided above does not need to be 
repeated here; and
    (3) Name of person, title, and business telephone number, facsimile 
number, and e[hyphen]mail address (if available).
    (5) EDR. The owner or leaseholder must record the following 
information on an EDR:
    (i) Crab activity chart. Complete a crab activity chart by entering 
the following information: CR fishery code (see Table 1 to this part), 
ADF&G Fish ticket number(s), number of days at sea, average crew size, 
and number of pots lost (if applicable).
    (ii) Crab sales gross revenue. CR fishery code, pounds sold, and 
gross revenue.
    (iii) CDQ crab lease costs. CR fishery code, pounds leased, and 
total cost of lease.
    (iv) Crab harvesting labor costs. CR fishery code, number of crew 
earning shares, total crew share payment, and captain's share payment.
    (v) BSAI crab crew residence information. For each employee in the 
calendar year being reported, record location of residence and number 
of employees that reside in each location as follows:
    (A) If Alaska, enter primary city of residence.
    (B) If state other than Alaska, enter primary state of residence.
    (C) If country other than United States, enter primary country of 
residence.
    (vi) BSAI crab-specific vessel costs. For the fishing year being 
reported, record insurance premiums (for hull, property and indemnity, 
and pollution), insurance deductible fees, quantity and cost of pots 
purchased, line, and other crab fishing gear purchases, pounds and cost 
of bait by species, gallons and cost of fuel, cost of lubrication and 
hydraulic fluids, cost of food and provisions for crew, other crew 
costs, freight costs of supplies shipped to you for the vessel, freight 
costs for landed crab, storage, observer costs, fish taxes, and other 
crab-specific costs.
    (vii) Vessel-specific costs. Record the total for each category. If 
the reported total expense should not be attributed solely to BSAI crab 
operations, please place an ``X'' in the PRORATE OVER ALL ACTIVITIES 
column. The analyst will prorate this amount over all vessel 
activities: improvements for vessel, gear and equipment; repair and 
maintenance (R&M) expenses for vessel, gear and equipment; other vessel 
overhead expenses; and other vessel-specific costs (specify).
    (viii) Labor payment details. (A) Indicate whether the following 
expenses were deducted (by circling 1) or not deducted (by circling 2) 
from the total revenue before calculating the crew share: Fuel and 
lubrication, food and

[[Page 63270]]

provisions, bait, fish tax, observer costs, CDQ fish, freight, gear 
loss, and other (specify).
    (B) Indicate percentage of the net share that was applied to boat 
share and crew share (including captain).
    (ix) Prorating information. Enter the totals for the vessel for the 
calendar year in all fisheries for each of the following categories: 
days at sea, revenue, pounds retained, and labor costs.
    (b) Catcher vessel annual EDR--(1) Requirement. On or before May 1 
of each year, beginning with Year 2005, any owner or leaseholder of a 
catcher vessel that landed crab from a CR fishery must submit to the 
DCA, at the address provided on the form, an EDR for annual data for 
the previous year.
    (2) Instructions. Instructions for submitting a catcher vessel 
annual EDR and certification page are specified in the following table:

----------------------------------------------------------------------------------------------------------------
          If you are ...                           And ...                    You must complete and submit ...
----------------------------------------------------------------------------------------------------------------
(i) The catcher vessel owner       (A) You harvested BSAI crab in the      Entire EDR
                                    vessel described at paragraph
                                    (b)(3)(ii)(B) of this section during
                                    this calendar year.
                                  ------------------------------------------------------------------------------
                                   (B) No one harvested BSAI crab in the   EDR certification pages
                                    vessel described at paragraph
                                    (b)(3)(ii)(B) of this section during
                                    this year.
                                  ------------------------------------------------------------------------------
                                   (C) You leased the vessel to another    (1) EDR certification pages
                                    party, and harvested no BSAI crab in   .....................................
                                    the vessel described at paragraph      (2) Provide the name, address, and
                                    (b)(3)(ii)(B) of this section during    telephone number of the person to
                                    this calendar year.                     whom you leased the vessel during
                                                                            this calendar year.
                                  ------------------------------------------------------------------------------
                                   (D) You leased the vessel for a         (1) Entire EDR
                                    portion of the year to another party,  .....................................
                                    but harvested some BSAI crab in the    (2) Provide the name, address, and
                                    vessel described at paragraph           telephone number of the person to
                                    (b)(3)(ii)(B) of this section during    whom you leased the vessel during
                                    this calendar year.                     this calendar year.
----------------------------------------------------------------------------------------------------------------
(ii) The leaseholder               You harvested BSAI crab in the vessel   Entire EDR
                                    described at paragraph (b)(3)(ii)(B)
                                    of this section vessel during this
                                    calendar year.
----------------------------------------------------------------------------------------------------------------

    (3) EDR certification pages. (i) The owner or leaseholder must 
submit the EDR certification pages either:
    (A) As part of the entire EDR. The owner or leaseholder must submit 
the completed EDR certification pages as part of the entire EDR and 
must attest to the accuracy and completion of the EDR by signing and 
dating the certification pages; or
    (B) As a separate document. The owner or leaseholder must submit 
the completed EDR certification pages only, and must attest that they 
meet the conditions exempting them from submitting the EDR, by signing 
and dating the certification pages.
    (ii) The owner or leaseholder must submit the following information 
on the certification pages:
    (A) Calendar year of EDR. Calendar year of reporting year;
    (B) Catcher vessel information. Catcher vessel name, company name, 
USCG documentation number, ADF&G vessel registration number, Federal 
Crab Vessel Permit number, crab LLP license number(s), estimated market 
value of vessel and equipment, and replacement value of vessel and 
equipment;
    (C) Owner information. Owner name, title, and business telephone 
number, facsimile number, and e[hyphen]mail address (if available);
    (D) Designated representative. Any owner or leaseholder may appoint 
a designated representative who is an individual for responding to 
questions on the EDR and must ensure that the designated representative 
complies with the regulations in this part. The designated 
representative is the primary contact person for the DCA on issues 
relating to data required in the EDR.
    (E) Person completing this report. (1) Indicate whether the person 
completing this report is the owner or leaseholder;
    (2) If the owner is the person completing this report, check the 
correct box. The information provided above does not need to be 
repeated here; and
    (3) Name of person, title, and business telephone number, facsimile 
number, and e[hyphen]mail address (if available).
    (4) EDR. The owner or leaseholder must record the following 
information on an EDR.
    (i) Season interval chart. Complete a season interval chart by 
entering the following information: calendar year, season interval 
number, CR fishery code(s) (see Table 1 to this part), ADF&G fish 
ticket number, number of days at sea, average crew size, and number of 
pots lost (if applicable).
    (ii) Crab sales gross revenue. Season interval number, species 
code, pounds sold, and gross revenue;
    (iii) CDQ and IFQ crab leases. Season interval number, species 
code, pounds leased, and total cost of leasing the quota;
    (iv) Crab harvesting labor costs--(A) Standard crew payment 
(shares) for non[hyphen]IFQ crew and/or captains. Season interval 
number, number of crew earning shares, crew share payment, and 
captain's share payment;
    (B) Payments to IFQ[hyphen]holding crew and/or captains. Season 
interval number, number of crew contributing IFQ shares, pounds of IFQ 
contributed by crew, total payment to crew for IFQ and shares (for all 
fish caught, and residual profit on their IFQ), pounds of IFQ 
contributed by captain, and payment to captain for IFQ and shares (for 
all fish caught, and residual profit on their IFQ);
    (v) BSAI crab crew identification--(A) Employees with crew license. 
Alaska Commercial Crew license number or the State of Alaska Commercial 
Fisheries Entry Commission (CFEC) gear operator permit number, and 
location of crew residence (city and state);
    (B) Employees without crew license. Location of residence and the 
number of employees that reside in each location as follows:
    (1) If Alaska, enter primary city of residence;

[[Page 63271]]

    (2) If state other than Alaska, enter primary state of residence; 
or
    (3) If country other than United States, enter primary country of 
residence.
    (vi) BSAI crab[hyphen]specific vessel costs. Insurance premiums 
(hull, property and indemnity, and pollution), insurance deductible 
fees, pots purchased, line and other gear purchases, pounds and cost of 
bait by species, gallons and cost of fuel, lubrication and hydraulic 
fluids, food and provisions for crew, other crew costs, freight costs 
of supplies shipped to you for the vessel, freight costs for landed 
crab, storage, observer costs, fish taxes, other crab[hyphen]specific 
costs (specify), and fishing cooperative costs.
    (vii) Vessel-specific costs. Record the total for each category. If 
the reported total expense should not be attributed solely to BSAI crab 
operations, please place an ``X'' in the PRORATE OVER ALL ACTIVITIES 
column. The analyst will prorate this amount over all vessel 
activities: improvements in vessel, gear, and equipment (city and state 
where purchased); R&M for vessel gear, and equipment (city and state 
where repairs were made); other vessel overhead expenses; and other 
vessel[hyphen]specific costs (specify).
    (viii) Labor payment details. (A) Indicate whether the following 
expenses were deducted from the total revenue before calculating the 
crew share: Fuel and lubrication, food and provisions, bait, fish tax, 
observer costs, CDQ fish, IFQ leases, freight, gear loss, and other 
(specify);
    (B) Indicate percentage of the net share that is applied to boat 
share and crew share (including captain).
    (ix) Prorating information. Enter the totals for the vessel, for 
the calendar year in all fisheries for each of the following 
categories: days at sea, revenue, pounds retained, and labor costs.
    (c) Catcher/processor historical EDR--(1) Requirement. Any owner or 
leaseholder of a catcher/processor that harvested or processed BSAI 
crab in the calendar years 1998, 2001, or 2004 must submit to the DCA, 
at the address provided on the form, an EDR for historical data for 
each of the specified calendar years, if they:
    (i) Qualified for or hold QS, PQS, IFQ, or IPQ under this program;
    (ii) Did not qualify for and receive QS, PQS, IFQ, or IPQ, but are 
participants at any time since January 23, 2004, in the BSAI crab 
fisheries.
    (2) Time limit. Any owner or leaseholder of the catcher/processor 
described in paragraph (c)(4)(ii)(B) of this section must submit the 
historical EDR to the DCA by [DATE 60 DAYS AFTER THE DATE OF 
EFFECTIVENESS OF THE FINAL RULE] at the address provided on the form.
    (3) Instructions. Instructions for submitting a catcher/processor 
historical EDR and certification page are specified in the following 
table:

----------------------------------------------------------------------------------------------------------------
         If you were ...                           And ...                    You must complete and submit ...
----------------------------------------------------------------------------------------------------------------
(i) The catcher/processor owner    (A) You processed BSAI crab in the      Entire EDR for each year that BSAI
 described in paragraph (c)(1) of   vessel described at paragraph           crab was processed.
 this section                       (c)(4)(ii)(B) of this section during
                                    1998, 2001, or 2004.
                                  ------------------------------------------------------------------------------
                                   (B) No one processed BSAI crab in the   EDR certification pages for each year
                                    vessel described at paragraph           that no one processed BSAI crab.
                                    (c)(4)(ii)(B) of this section during
                                    1998, 2001, or 2004.
                                  ------------------------------------------------------------------------------
                                   (C) You leased your catcher/processor   (1) EDR certification pages.
                                    to another party, and processed no     .....................................
                                    BSAI crab in the vessel described at   (2) Provide the name, address, and
                                    paragraph (c)(4)(ii)(B) of this         telephone number of the person to
                                    section during 1998, 2001, or 2004.     whom you leased the catcher/
                                                                            processor during 1998, 2001, or
                                                                            2004.
                                  ------------------------------------------------------------------------------
                                   (D) You leased your catcher/processor   (1) Entire EDR for each year that
                                    for a portion of the year to another    BSAI crab was processed.
                                    party, but processed some BSAI crab    .....................................
                                    in the vessel described at paragraph   (2) Provide the name, address, and
                                    (c)(4)(ii)(B) of this section           telephone number of the person to
                                    during1998, 2001, or 2004.              whom you leased the catcher/
                                                                            processor during 1998, 2001, or
                                                                            2004.
----------------------------------------------------------------------------------------------------------------
(ii) The leaseholder described in  You processed BSAI crab in the vessel   Entire EDR for each year that BSAI
 paragraph (c)(1) of this section   described at paragraph (c)(4)(ii)(B)    crab was processed.
                                    of this section during 1998, 2001, or
                                    2004.
----------------------------------------------------------------------------------------------------------------

    (4) EDR certification pages. (i) The owner or leaseholder must 
submit the EDR certification page either:
    (A) As part of the entire EDR. The owner or leaseholder must submit 
the completed EDR certification pages as part of the entire EDR and 
must attest to the accuracy and completion of the EDR by signing and 
dating the certification pages; or
    (B) As a separate document. If the owner or leaseholder did not 
process BSAI crab in 1998, 2001, or 2004, he or she must submit the 
completed EDR certification pages only, and must attest that he or she 
meets the conditions exempting him or her from submitting the EDR, by 
signing and dating the certification pages, for each year of 1998, 
2001, or 2004 that this applies.
    (ii) The owner or leaseholder must submit the following information 
on the certification pages;
    (A) Calendar year of EDR. Calendar year corresponding to 1998, 
2001, or 2004;
    (B) Catcher/processor information. Catcher/processor name, company 
name, USCG documentation number, ADF&G processor code, Crab Processor 
Permit number, crab LLP license number(s), estimated market value of 
vessel and equipment, and replacement value of vessel and equipment.
    (C) Owner information. Owner name, title, and business telephone 
number, facsimile number, and e[hyphen]mail address (if available).
    (D) Designated representative. Any owner or leaseholder may appoint 
a designated representative who is an individual for responding to 
questions on the EDR and must ensure that the designated representative 
complies with the regulations in this part. The designated 
representative is the primary contact person for the DCA on issues 
relating to data required in the EDR.

[[Page 63272]]

    (E) Person completing this report. (1) Indicate whether the person 
completing this report is the owner or leaseholder;
    (2) If the owner is the person completing this report, check the 
correct box. The information provided above does not need to be 
repeated here; and
    (3) Name of person, title, and business telephone number, facsimile 
number, and e[hyphen]mail address (if available).
    (5) EDR. The owner or leaseholder must record the following 
information on an EDR.
    (i) BSAI crab activity chart. Complete a crab activity chart by 
entering the following information: CR fishery code (see Table 1 to 
this part); dates covered (beginning and ending day, month and year); 
number of days at sea; number of crab processing days, and number of 
pots lost (if applicable).
    (ii) BSAI crab production. CR fishery code, raw crab pounds, 
product code, process code, crab size, crab grade, box size, finished 
pounds, and whether custom processed (yes or no).
    (iii) Crab harvesting labor costs. CR fishery code, number of crew 
earning shares, total crew share payment, and captain's share payment.
    (iv) Crab processing labor costs. CR fishery code, number of crew 
with pay determined by processing work, average number of crab 
processing positions, and total processing labor payment.
    (v) BSAI crab crew residence identification. For each employee in 
the calendar year being reported, record location of residence and 
number of employees that reside in each location as follows:
    (A) If Alaska, enter primary city of residence;
    (B) If state other than Alaska, enter primary state of residence;
    (C) If country other than United States, enter primary country of 
residence;
    (vi) BSAI crab custom processing done for you. CR fishery code, raw 
pounds supplied to custom processors, raw pounds purchased from custom 
processors, product code, process code, crab size, crab grade, box 
size, finished pounds, and processing fee.
    (vii) Raw crab purchases from delivering vessels. CR fishery code, 
crab size, crab grade, raw pounds purchased, and gross payment.
    (viii) CDQ Crab Costs (leases). CR fishery code, pounds leased, and 
total cost.
    (ix) Annual BSAI crab sales. Record the following information on 
crab sales to affiliated entities and to unaffiliated entities: species 
code, product code, process code, crab size, crab grade, box size, 
finished pounds, and gross revenue.
    (x) BSAI crab[hyphen]specific vessel costs. Insurance premiums 
(hull, property and indemnify, and pollution); insurance deductible 
fees; total of fisheries taxes which includes the Alaska fisheries 
business tax, Alaska fisheries resource landing tax, SMAA taxes, and 
other local sales tax on raw fish; pots purchased (quantity and cost); 
line and other crab fishing gear purchases; bait (by each CR fishery 
code, species, pounds and cost); fuel (by CR fishery code, gallons and 
cost); lubrication and hydraulic fluids; food and provisions for crew; 
other crew costs; processing and packaging materials, equipment and 
supplies; re[hyphen]packing costs, broker fees and promotions for BSAI 
crab sales (by CR fishery code); observer costs (by CR fishery code); 
freight costs for supplies to the vessel; freight and handling costs 
for processed crab products from the vessel; product storage; waste 
disposal; and other crab-specific costs (specify).
    (xi) Vessel-specific costs. Record the total for each category. If 
the reported total expense should not be attributed solely to BSAI crab 
operations, please place an ``X'' in the PRORATE OVER ALL ACTIVITIES 
column. The analyst will prorate this amount over all vessel 
activities: improvements in vessel, gear, and equipment; R&M for vessel 
gear, and equipment; number of employees and salaries for foremen, 
managers, and other employees not included in direct labor costs; other 
vessel overhead expenses; and other vessel[hyphen]specific costs 
(specify).
    (xii) BSAI crab custom processing performed for others. CR Fishery 
code, product code, process code, whether OUR CRAB or THEIR CRAB, and 
processing revenue.
    (xiii) Prorating information. Enter the totals for the year for the 
vessel in all fisheries for each of the following categories: 
processing days, days at sea, revenue, pounds processed, pounds 
retained, and labor costs.
    (xiv) Labor payment details. (A) Indicate whether the following 
expenses were deducted (by circling 1) or not deducted (by circling 2) 
from the total revenue before calculating the crew share: Fuel and 
lubrication, food and provisions, bait, fish tax, observer costs, CDQ 
fish, freight, gear loss, and other (specify).
    (B) Indicate percentage of the net share that was applied to boat 
share and harvesting crew share (including captain).
    (C) If processing workers were paid on a share system, indicate 
percentage of the net share (if applicable) that was applied to 
processing workers based on product value or net share.
    (d) Catcher/processor annual EDR--(1) Requirement. On or before May 
1 of each year, beginning with Year 2005, any owner or leaseholder of a 
catcher/processor that landed or processed crab from a CR fishery must 
submit to the DCA, at the address provided on the form, an EDR for 
annual data for the previous year.
    (2) Instructions. Instructions for submitting a catcher/processor 
annual EDR and certification page are specified in the following table:

----------------------------------------------------------------------------------------------------------------
          If you are ...                           And ...                    You must complete and submit ...
----------------------------------------------------------------------------------------------------------------
(i) The catcher/processor owner    (A) You processed BSAI crab in the      Entire EDR
                                    vessel described at paragraph
                                    (d)(3)(ii)(B) of this section during
                                    this calendar year.
                                  ------------------------------------------------------------------------------
                                   (B) No one processed BSAI crab in the   EDR certification pages
                                    vessel described at paragraph
                                    (d)(3)(ii)(B) of this section during
                                    this calendar year.
                                  ------------------------------------------------------------------------------
                                   (C) You leased all of your IPQ to       (1) EDR certification pages
                                    another party, and processed no BSAI   .....................................
                                    crab in the vessel described at        (2) Provide the name, address, and
                                    paragraph (d)(3)(ii)(B) of this         telephone number of the person to
                                    section during this calendar year.      whom you leased the IPQ during this
                                                                            calendar year.
                                  ------------------------------------------------------------------------------

[[Page 63273]]

 
                                   (D) You leased portions of your IPQ to  (1) Entire EDR
                                    another party, but processed some      .....................................
                                    BSAI crab in the vessel described at   (2) Provide the name, address, and
                                    paragraph (d)(3)(ii)(B) of this         telephone number of the person to
                                    section during this calendar year.      whom you leased the IPQ during this
                                                                            calendar year.
----------------------------------------------------------------------------------------------------------------
(ii) The leaseholder described in  You processed BSAI crab in the vessel   Entire EDR
 paragraph (d)(1) of this section   described at paragraph (d)(3)(ii)(B)
                                    of this section during this calendar
                                    year.
----------------------------------------------------------------------------------------------------------------

    (3) EDR certification pages. (i) The owner or leaseholder must 
submit the EDR certification pages either:
    (A) As part of the entire EDR. The owner or leaseholder must submit 
the completed EDR certification pages as part of the entire EDR and 
must attest to the accuracy and completion of the EDR by signing and 
dating the certification pages; or
    (B) As a separate document. The owner or leaseholder must submit 
the completed EDR certification pages only, and must attest that they 
meet the conditions exempting them from submitting the EDR, by signing 
and dating the certification pages.
    (ii) The owner or leaseholder must submit the following information 
on the certification pages:
    (A) Calendar year of EDR. Calendar year for the reporting year;
    (B) Catcher/processor information. Catcher/processor name, company 
name, USCG documentation number, ADF&G processor code, Crab Processor 
Permit number, crab LLP license number(s), estimated market value of 
vessel and equipment, and replacement value of vessel and equipment.
    (C) Owner information. Owner name, title, business telephone 
number, facsimile number, and e[hyphen]mail address (if available).
    (D) Designated representative. Any owner or leaseholder may appoint 
a designated representative who is an individual for responding to 
questions on the EDR and must ensure that the designated representative 
complies with the regulations in this part. The designated 
representative is the primary contact person for the DCA on issues 
relating to data required in the EDR.
    (E) Person completing this report. (1) Indicate whether the person 
completing this report is the owner or leaseholder;
    (2) If the owner is the person completing this report, check the 
correct box. The information provided above does not need to be 
repeated here; and
    (3) Name of person, title, and business telephone number, facsimile 
number, and e[hyphen]mail address (if available).
    (4) EDR. The owner or leaseholder must record the following 
information on an EDR.
    (i) Season interval chart. Complete a season interval chart by 
entering the following information: Calendar year, season interval 
number, CR fishery code (see Table 1 to this part), dates covered, 
number of days at sea, number of crab processing days, and number of 
pots lost (if applicable).
    (ii) BSAI crab production. Season interval number, species code, 
raw pounds, product code, process code, crab size, crab grade, box 
size, finished pounds, and whether custom processed (Yes or No).
    (iii) Harvesting labor costs. Record the following information for 
crew if they harvest crab only, or harvest and process crab.
    (A) Standard crew payment (shares) for non[hyphen]IFQ contributing 
crew and/or captains. Season interval number, number of crew earning 
shares, crew share payment, and captain's share payment.
    (B) Payments to IFQ[hyphen]holding crew and/or captains. Season 
interval number, number of crew contributing IFQ shares, pounds of IFQ 
contributed by crew, total payment to crew for IFQ and shares, pounds 
of IFQ contributed by captain, and payment to captain for IFQ and 
shares.
    (iv) Crab processing labor costs. Season interval number, number of 
crew with pay determined by processing work, average number of crab 
processing positions, and total processing labor payment.
    (v) BSAI crab crew identification--(A) Employees with crew license. 
Alaska Commercial Crew license number or the CFEC gear operator permit 
number, and location of crew residence (city and state).
    (B) Employees without crew license. Location of residence and the 
number of employees that reside in each location as follows:
    (1) If Alaska, enter primary city of residence.
    (2) If state other than Alaska, enter primary state of residence, 
or
    (3) If country other than United States, enter primary country of 
residence.
    (vi) BSAI crab custom processing done for you. Season interval 
number, species code, raw pounds supplied to custom processors, raw 
pounds purchased from custom processors, product code, process code, 
crab size, crab grade, box size, finished pounds, and processing fee.
    (vii) Raw crab purchases from delivering vessels. Season interval 
number, species code, crab size, crab grade, raw pounds purchased, and 
gross payment.
    (viii) CDQ and IFQ crab costs (leases). For CDQ and IFQ leases 
enter season interval number, species code, pounds leased, and total 
cost.
    (ix) Annual BSAI crab sales. For affiliated entities and 
unaffiliated entities enter species code, product code, process code, 
crab size, crab grade, box size, finished pounds, and gross revenue.
    (x) BSAI crab[hyphen]specific vessel costs. Insurance premiums 
(hull, property and indemnity, and pollution); insurance deductible 
fees; total of fisheries taxes which include the Alaska fisheries 
business tax, Alaska fisheries resource landing tax, SMAA taxes, and 
other local sales tax on raw fish; pots purchased by city and state 
(quantity and cost); line and other crab fishing gear purchases by 
city, state, and cost; bait (by each season interval number by city and 
state, species, pounds, and cost); fuel in gallons and cost by season 
interval number, city and state; lubrication and hydraulic fluids by 
city and state; food and provisions for crew; other crew costs; 
processing and packaging materials, equipment and supplies by city and 
state; re[hyphen]packing costs; broker fees and promotions for BSAI 
crab sales (by season interval number); observer costs (by season 
interval number); freight costs for products to the vessel; freight and 
handling costs for processed crab products from the vessel; product 
storage; waste disposal; other crab-specific costs (specify), and 
fishing cooperative costs.
    (xi) Vessel-specific costs. Record the total for each category. If 
the reported total expense should not be attributed solely to BSAI crab 
operations, please place an ``X'' in the PRORATE OVER

[[Page 63274]]

ALL ACTIVITIES column. The analyst will prorate this amount over all 
vessel activities: improvements for vessel, gear, and equipment (by 
city and state); R&M for vessel, gear, and equipment (by city and 
state); number of employees and salaries for foremen, managers and 
other employees not included in direct labor costs; other vessel 
overhead expenses; and other vessel[hyphen]specific costs (specify).
    (xii) BSAI crab custom processing performed for others. Season 
interval number, species code, product code, process code, whether OUR 
CRAB or THEIR CRAB, and processing revenue.
    (xiii) Prorating information. Enter the totals for the year for the 
vessel in all fisheries for each of the following categories: 
processing days, days at sea, revenue, pounds processed, pounds 
retained, and labor costs.
    (xiv) Labor payment details. (A) Indicate whether the following 
expenses were deducted (by circling 1) or not deducted (by circling 2) 
from the total revenue before calculating the crew share: Fuel and 
lubrication, food and provisions, bait, fish tax, observer costs, CDQ 
fish, IFQ leases, freight, gear loss, and other (specify).
    (B) Indicate percentage of the net share that is applied to boat 
share and harvesting crew share (including captain).
    (C) If processing workers are paid on a share system, indicate 
percentage of the net share (if applicable) that is applied to 
processing workers based on product value or net share.
    (e) Stationary floating crab processor (SFCP) historical EDR--(1) 
Requirement. Any owner or leaseholder of an SFCP that processed CR 
fisheries crab in the calendar years 1998, 2001, or 2004 must submit to 
the DCA, at the address provided on the form, an EDR for historical 
data for each of the specified calendar years, if they:
    (i) Qualified for or hold QS, PQS, IFQ, or IPQ under this program;
    (ii) Did not qualify for and receive QS, PQS, IFQ, or IPQ, but are 
participants at any time since January 23, 2004, in the BSAI crab 
fisheries.
    (2) Time limit. Any owner or leaseholder of the SFCP described in 
paragraph (e)(4)(ii)(B) of this section must submit the historical EDR 
to the DCA by [DATE 60 DAYS AFTER THE DATE OF EFFECTIVENESS OF THE 
FINAL RULE] at the address provided on the form.
    (3) Instructions. Instructions for submitting an SFCP historical 
EDR and certification page are specified in the following table:

----------------------------------------------------------------------------------------------------------------
         If you were ...                           And ...                    You must complete and submit ...
----------------------------------------------------------------------------------------------------------------
(i) The SFCP owner described in    (A) You processed BSAI crab in the      Entire EDR for each year that BSAI
 paragraph (e)(1) of this section   SFCP described at paragraph             crab was processed.
                                    (e)(4)(ii)(B) of this section during
                                    1998, 2001, or 2004.
                                  ------------------------------------------------------------------------------
                                   (B) No one processed BSAI crab in the   EDR certification pages for each year
                                    SFCP described at paragraph             that no one processed BSAI crab.
                                    (e)(4)(ii)(B) of this section during
                                    1998, 2001, or 2004.
                                  ------------------------------------------------------------------------------
                                   (C) You leased your SFCP to another     (1) EDR certification pages
                                    party, and processed no BSAI crab in   .....................................
                                    the SFCP described at paragraph        (2) Provide the name, address, and
                                    (e)(4)(ii)(B) of this section during    telephone number of the person to
                                    1998, 2001, or 2004.                    whom you leased the SFCP during
                                                                            1998, 2001, or 2004.
                                  ------------------------------------------------------------------------------
                                   (D) You leased your SFCP a portion of   (1) Entire EDR for each year that
                                    the time to another party, but          BSAI crab was processed.
                                    processed some BSAI crab in the SFCP   .....................................
                                    described at paragraph (e)(4)(ii)(B)   (2) Provide the name, address, and
                                    of this section during 1998, 2001, or   telephone number of the person to
                                    2004.                                   whom you leased the SFCP during
                                                                            1998, 2001, or 2004.
----------------------------------------------------------------------------------------------------------------
(ii) The leaseholder described in  You operated the SFCP described at      Entire EDR for each year that BSAI
 paragraph (e)(1) of this section   paragraph (e)(4)(ii)(B) of this         crab was processed.
                                    section and processed some BSAI crab
                                    during 1998, 2001, or 2004.
----------------------------------------------------------------------------------------------------------------

    (4) EDR certification pages. (i) The owner or leaseholder must 
submit the EDR certification pages either:
    (A) As part of the entire EDR. The owner or leaseholder must submit 
the completed EDR certification pages as part of the entire EDR and 
must attest to the accuracy and completion of the EDR by signing and 
dating the certification pages; or
    (B) As a separate document. If the owner or leaseholder did not 
process BSAI crab in 1998, 2001, or 2004, he or she must submit the 
completed EDR certification pages only, and must attest that he or she 
meets the conditions exempting him or her from submitting the EDR, by 
signing and dating the certification pages, for each year of 1998, 
2001, or 2004 that this applies.
    (ii) The owner or leaseholder must submit the following information 
on the certification pages:
    (A) Calendar year of EDR. Calendar years corresponding to 1998, 
2001, or 2004;
    (B) SFCP information. SFCP name, company name, USCG documentation 
number, ADF&G processor code, Crab Processor Permit number, crab LLP 
license number(s), estimated market value of vessel and equipment, and 
replacement value of vessel and equipment.
    (C) Owner information. Owner name, title, and business telephone 
number, facsimile number, and e[hyphen]mail address (if available).
    (D) Designated representative. Any owner or leaseholder may appoint 
a designated representative, who is an individual for responding to 
questions on the EDR, and must ensure that the designated 
representative complies with the regulations in this part. The 
designated representative is the primary contact person for the DCA on 
issues relating to data required in the EDR.
    (E) Person completing this report. (1) Indicate whether the person 
completing this report is the owner, leaseholder, or designated 
representative;
    (2) If the owner is the person completing this report, check the 
correct

[[Page 63275]]

box. The information provided above does not need to be repeated here; 
and
    (3) Name of person, title, business telephone number, facsimile 
number, and e[hyphen]mail address (if available).
    (5) EDR. The owner or leaseholder must record the following 
information on an EDR.
    (i) BSAI crab production. CR fishery code (see Table 1 to this 
part); number of crab processing days, dates covered (beginning and 
ending day, month, and year); raw pounds purchased, product code, 
process code, crab size, crab grade, box size, finished pounds, and 
whether custom processed (Yes or No).
    (ii) Crab processing labor costs. CR fishery code, average number 
of crab positions, total man[hyphen]hours, and total labor payment.
    (iii) BSAI Crab crew residence identification. Location of 
residence and the number of employees that reside in each location as 
follows:
    (A) If Alaska, enter primary city of residence.
    (B) If state other than Alaska, enter primary state of residence.
    (C) If country other than United States, enter primary country of 
residence.
    (iv) BSAI crab custom processing done for you. CR fishery code, raw 
pounds supplied to custom processors, raw pounds purchased from custom 
processors, product code, process code, crab size, crab grade, box 
size, finished pounds, and processing fee.
    (v) Raw crab purchases from delivering vessels. CR fishery code, 
crab size, crab grade, raw pounds purchased, and gross payment.
    (vi) Annual BSAI crab sales. Record the following information on 
crab sales to affiliated entities and to unaffiliated entities: species 
code, product code, process code, crab size, crab grade, box size, 
finished pounds, and gross revenue.
    (vii) BSAI crab[hyphen]specific vessel data. Total of fisheries 
taxes which include the Alaska fisheries business tax, SMAA taxes, and 
other local sales tax on raw fish; processing and packaging materials, 
equipment, and supplies; food and provisions; other costs for direct 
crab labor; insurance deductible fees; re[hyphen]packing costs; broker 
fees and promotions for BSAI crab sales (by CR fishery code); observer 
costs (by CR fishery code); freight costs for supplies to the vessel; 
freight and handling costs for processed crab products from the vessel; 
product storage; waste disposal; and other crab-specific costs 
(specify).
    (viii) Vessel-specific costs. Record the total for each category. 
If the reported total expense should not be attributed solely to BSAI 
crab operations, please place an ``X'' in the PRORATE OVER ALL 
ACTIVITIES column. The analyst will prorate this amount over all vessel 
activities: fuel, electricity, lubrication and hydraulic fluids; 
improvements for vessel and equipment; R&M for vessel and equipment; 
number of employees and salaries for foremen, managers and other 
employees not included in direct labor costs; other vessel overhead 
expenses; and other vessel[hyphen]specific costs (specify).
    (ix) BSAI crab custom processing performed for others. CR fishery 
code, product code, process code, whether OUR CRAB or THEIR CRAB, and 
processing revenue.
    (x) Prorating information. Enter the totals for the calendar year 
for the vessel in all fisheries for each of the following categories: 
processing days, revenue, pounds processed, and processing labor costs.
    (f) Stationary floating crab processor (SFCP) annual EDR--(1) 
Requirement. On or before May 1 of each year, beginning with Year 2005, 
any owner or leaseholder of an SFCP that processed crab from a CR 
fishery must submit to the DCA, at the address provided on the form, an 
EDR for annual data for the previous year.
    (2) Instructions. Instructions for submitting an SFCP annual EDR 
and certification page are specified in the following table:

----------------------------------------------------------------------------------------------------------------
          If you are ...                           And ...                    You must complete and submit ...
----------------------------------------------------------------------------------------------------------------
(i) The SFCP owner                 (A) You processed BSAI crab in the      Entire EDR
                                    SFCP described at paragraph
                                    (f)(3)(ii)(B) of this section during
                                    this calendar year.
                                  ------------------------------------------------------------------------------
                                   (B) No one processed BSAI crab in the   EDR certification pages
                                    SFCP described at paragraph
                                    (f)(3)(ii)(B) of this section during
                                    this calendar year.
                                  ------------------------------------------------------------------------------
                                   (C) You leased all of your IPQ to       (1) EDR certification pages
                                    another party and processed no BSAI    .....................................
                                    crab in the SFCP described at          (2) Provide the name, address, and
                                    paragraph (f)(3)(ii)(B) of this         telephone number of the person to
                                    section during this calendar year.      whom you leased the IPQ during this
                                                                            calendar year.
                                  ------------------------------------------------------------------------------
                                   (D) You leased a portion of your IPQ    (1) Entire EDR
                                    to another party, but processed some   .....................................
                                    BSAI crab in the SFCP described at     (2) Provide the name, address, and
                                    paragraph (f)(3)(ii)(B) of this         telephone number of the person to
                                    section during this calendar year.      whom you leased the IPQ during this
                                                                            calendar year.
----------------------------------------------------------------------------------------------------------------
(ii) The leaseholder described in  You operated the SFCP described at      Entire EDR
 paragraph (f)(1) of this section   paragraph (f)(3)(ii)(B) of this
                                    section and processed some BSAI crab
                                    during this calendar year.
----------------------------------------------------------------------------------------------------------------

    (3) EDR certification pages. (i) The owner or leaseholder must 
submit the EDR certification pages either:
    (A) As part of the entire EDR. The owner or leaseholder must submit 
the completed EDR certification pages as part of the entire EDR and 
must attest to the accuracy and completion of the EDR by signing and 
dating the certification pages; or
    (B) As a separate document. The owner or leaseholder must submit 
the completed EDR certification pages only, and must attest that they 
meet the conditions exempting them from submitting the EDR, by signing 
and dating the certification pages (see paragraph (e)(2) of this 
section).
    (ii) The owner or leaseholder must submit the following information 
on the certification pages:

[[Page 63276]]

    (A) Calendar year of EDR. Calendar year of the reporting year;
    (B) SFCP information. SFCP name, company name, USCG documentation 
number, ADF&G processor code, Crab Processor Permit number, crab LLP 
license number(s), estimated market value of vessel and equipment, and 
replacement value of vessel and equipment.
    (C) Owner information. Owner name, title, and business telephone 
number, facsimile number, and e[hyphen]mail address (if available).
    (D) Designated representative. Any owner or leaseholder may appoint 
a designated representative who is an individual for responding to 
questions on the EDR and must ensure that the designated representative 
complies with the regulations in this part. The designated 
representative is the primary contact person for the DCA on issues 
relating to data required in the EDR.
    (E) Person completing the report. (1) Indicate whether the person 
completing this report is the owner, leaseholder, or designated 
representative;
    (2) If the owner is the person completing this report, check the 
correct box. The information provided above does not need to be 
repeated here; and
    (3) Name of person, title, and business telephone number, facsimile 
number, and e[hyphen]mail address (if available).
    (4) EDR. The owner or leaseholder must record the following 
information on an EDR.
    (i) Season interval chart. Complete a season interval chart by 
entering the following information: season interval number, number of 
crab processing days, dates covered (beginning and ending day, month, 
and year), species code, raw pounds, product code, process code, crab 
size, crab grade, box size, finished pounds, and whether custom 
processed (Yes or No).
    (ii) Crab processing labor costs. Season interval number, average 
number of crab processing positions, total man[hyphen]hours, and total 
processing labor payment.
    (iii) BSAI Crab crew residence identification. Location of 
residence and the number of employees that reside in each location as 
follows:
    (A) If Alaska, enter primary city of residence.
    (B) If state other than Alaska, enter primary state of residence.
    (C) If country other than United States, enter primary country of 
residence.
    (iv) BSAI crab custom processing done for you. Season interval 
number, species code, raw pounds supplied to custom processors, raw 
pounds purchased from custom processors, product code, process code, 
crab size, crab grade, box size, finished pounds, and processing fee.
    (v) Raw crab purchases from delivering vessels. Season interval 
number, species code, crab size, crab grade, raw pounds purchased, and 
gross payment.
    (vi) Annual BSAI crab sales. For affiliated entities and 
unaffiliated entities enter species code, product code, process code, 
crab size, crab grade, box size, finished pounds, and gross revenue.
    (vii) BSAI crab[hyphen]specific vessel costs. Total of fisheries 
taxes which includes the Alaska fisheries business tax, SMAA taxes, and 
other local sales tax on raw fish; processing and packaging materials, 
equipment and supplies by city and state; food and provisions; other 
costs for direct crab labor; insurance deductible fees; 
re[hyphen]packing costs; broker fees and promotions for BSAI crab sales 
(by season interval number); observer costs (by season interval 
number); freight costs for supplies to the vessel; freight and handling 
costs for processed crab products from the vessel; product storage; 
waste disposal; and other crab-specific costs (specify).
    (viii) Vessel-specific costs. Record the total for each category. 
If the reported total expense should not be attributed solely to BSAI 
crab operations, please place an ``X'' in the PRORATE OVER ALL 
ACTIVITIES column. The analyst will prorate this amount over all vessel 
activities: fuel, electricity, lubrication and hydraulic fluids; 
improvements in vessel, gear and equipment (by city and state); R&M for 
vessel, gear and equipment (by city and state); number of employees and 
salaries for foremen, managers and other employees not included in 
direct labor costs; other vessel overhead expenses; and other 
vessel[hyphen]specific costs (specify).
    (ix) BSAI crab custom processing performed for others. Season 
interval number, species code, product code, process code, whether OUR 
CRAB or THEIR CRAB, and processing revenue.
    (x) Prorating information. Enter the totals for the year for the 
vessel in all fisheries for each of the following categories: 
processing days, revenue, pounds processed, and processing labor costs.
    (g) Shoreside processor historical EDR--(1) Requirement. Any owner 
or leaseholder of a shoreside processor who processed CR fisheries crab 
in the calendar years 1998, 2001, or 2004 must submit to the DCA, at 
the address provided on the form, an EDR for historical data for each 
of the specified calendar years, if they:
    (i) Qualified for or hold QS, PQS, IFQ, or IPQ under this Program;
    (ii) Did not qualify for and receive QS,PQS, IFQ, or IPQ, but are 
participants at any time since January 23, 2004, in the BSAI crab 
fisheries.
    (2) Time limit. Any owner or leaseholder of the shoreside processor 
described in paragraph (g)(4)(ii)(B) of this section must submit the 
historical EDR to the DCA by [DATE 60 DAYS AFTER THE DATE OF 
EFFECTIVENESS OF THE FINAL RULE] at the address provided on the form.
    (3) Instructions. Instructions for submitting a shoreside processor 
historical EDR and certification page are specified in the following 
table:

----------------------------------------------------------------------------------------------------------------
         If you were ...                           And ...                    You must complete and submit ...
----------------------------------------------------------------------------------------------------------------
(i) The shoreside processor owner  (A) You processed BSAI crab in the      Entire EDR for each year that BSAI
 described in paragraph (g)(1) of   plant described at paragraph            crab was processed
 this section                       (g)(4)(ii)(B) of this section during
                                    1998, 2001, or 2004.
                                  ------------------------------------------------------------------------------
                                   (B) No one processed BSAI crab in the   EDR certification pages for each year
                                    plant described at paragraph            that no one processed BSAI crab.
                                    (g)(4)(ii)(B) of this section during
                                    1998, 2001, or 2004.
                                  ------------------------------------------------------------------------------
                                   (C) You leased your shoreside           (1) EDR certification pages
                                    processor to another party, and        .....................................
                                    processed no BSAI crab in the plant    (2) Provide the name, address, and
                                    described at paragraph (g)(4)(ii)(B)    telephone number of the person to
                                    of this section during 1998, 2001, or   whom you leased the shoreside
                                    2004.                                   processor during 1998, 2001, or
                                                                            2004.
                                  ------------------------------------------------------------------------------

[[Page 63277]]

 
                                   (D) You leased your shoreside           (1) Entire EDR for each year that
                                    processor for a portion of the time     BSAI crab was processed.
                                    to another party, but processed some   .....................................
                                    BSAI crab in the plant described at    (2) Provide the name, address, and
                                    paragraph (g)(4)(ii)(B) of this         telephone number of the person to
                                    section during 1998, 2001, or 2004.     whom you leased the shoreside
                                                                            processor during 1998, 2001, or
                                                                            2004.
----------------------------------------------------------------------------------------------------------------
(ii) The leaseholder described in  You operated the plant described at     Entire EDR for each year that BSAI
 paragraph (g)(1) of this section   paragraph (g)(4)(ii)(B) of this         crab was processed
                                    section and processed some BSAI crab
                                    during 1998, 2001, or 2004.
----------------------------------------------------------------------------------------------------------------

    (4) EDR certification pages. (i) The owner or leaseholder must 
submit the EDR certification pages either:
    (A) As part of the entire EDR. The owner or leaseholder must submit 
the completed EDR certification pages as part of the entire EDR and 
must attest to the accuracy and completion of the EDR by signing and 
dating the certification pages; or
    (B) As a separate document. If the owner or leaseholder did not 
process BSAI crab in 1998, 2001, or 2004, he or she must submit the 
completed EDR certification pages only, and must attest that he or she 
meets the conditions exempting him or her from submitting the EDR, by 
signing and dating the certification pages for each year of 1998, 2001, 
or 2004 that this applies;
    (ii) Required information. The owner or leaseholder must submit the 
following information on the certification pages:
    (A) Calendar year of EDR. Calendar years corresponding to 1998, 
2001, or 2004;
    (B) Shoreside processor information. Shoreside processor name, 
company name, crab processor permit number, ADF&G processor code, 
physical location of land[hyphen]based plant (street address, city, 
state, zip code), borough assessed value of plant and equipment, year 
assessed, and estimated value of plant and equipment;
    (C) Owner information. Owner name, title, and business telephone 
number, facsimile number, and e[hyphen]mail address (if available);
    (D) Designated representative. Any owner or leaseholder may appoint 
a designated representative who is an individual for responding to 
questions on the EDR and must ensure that the designated representative 
complies with the regulations in this part. The designated 
representative is the primary contact person for the DCA on issues 
relating to data required in the EDR.
    (E) Person completing the report. (1) Indicate whether the person 
completing this report is the owner, leaseholder, or designated 
representative;
    (2) If the owner is the person completing the report, check the 
correct box. The information provided above does not need to be 
repeated here.
    (3) Name of person, title, and business telephone number, facsimile 
number, and e[hyphen]mail address (if available).
    (5) EDR. The owner or leaseholder must record the following 
information on an EDR.
    (i) BSAI crab production. CR fishery code (see Table 1 to this 
part); number of crab processing days, dates covered (beginning and 
ending day, month, and year); raw pounds purchased, product code, 
process code, crab size, crab grade, box size, finished pounds, and 
whether custom processed (Yes or No).
    (ii) Crab processing labor costs. CR fishery code, average number 
of crab processing positions, total man[hyphen]hours, and total 
processing labor payment.
    (iii) BSAI Crab crew residence identification. Location of 
residence and the number of employees that reside in each location as 
follows:
    (A) If Alaska, enter primary city of residence.
    (B) If state other than Alaska, enter primary state of residence.
    (C) If country other than United States, enter primary country of 
residence.
    (iv) BSAI crab custom processing done for you. CR fishery code, raw 
pounds supplied to custom processors, raw pounds purchased from custom 
processors, product code, process code, crab size, crab grade, box 
size, finished pounds, and processing fee.
    (v) Raw crab purchases from delivering vessels. CR fishery code, 
crab size, crab grade, raw pounds purchased, and gross payment.
    (vi) Annual BSAI crab sales. For affiliated entities and 
unaffiliated entities enter species code, product code, process code, 
crab size, crab grade, box size, finished pounds, and gross revenue.
    (vii) BSAI crab[hyphen]specific plant costs. Total fisheries taxes 
which include the Alaska fisheries business tax, SMAA taxes, and other 
local sales tax on raw fish; processing and packaging materials, 
equipment and supplies; food and provisions; other costs for direct 
crab labor; insurance deductible fees; re[hyphen]packing costs, broker 
fees and promotions for BSAI crab sales by CR fishery code; observer 
costs by CR fishery code; freight costs for supplies to the plant; 
freight and handling costs for processed crab products from the plant; 
product storage; water, sewer, and waste disposal; and other crab 
specific costs (specify).
    (viii) Plant-specific costs. Record the total for each category. If 
the reported total expense should not be attributed solely to BSAI crab 
operations, please place an ``X'' in the PRORATE OVER ALL ACTIVITIES 
column. The analyst will prorate this amount over all vessel 
activities.: fuel, electricity, lubrication, and hydraulic fluids; 
improvements in plant, and equipment; R&M for existing plant and 
equipment; number of employees and salaries for foremen, managers and 
other employees not included in direct labor costs; other plant 
overhead expenses; and other plant[hyphen]specific costs (specify).
    (ix) BSAI crab custom processing done for others. CR fishery code, 
product code, process code, whether OUR CRAB or THEIR CRAB, and 
processing revenue.
    (x) Prorating information. Enter the totals for this plant, for the 
year in all fisheries for each of the following categories: processing 
days, revenue, pounds processed, and processing labor costs.
    (h) Shoreside processor annual EDR--(1) Requirement. On or before 
May 1 of each year, beginning with Year 2005, any owner or leaseholder 
of a shoreside processor that processed crab from a CR fishery must 
submit to the DCA, at the address provided on the form, an EDR for 
annual data for the previous year.
    (2) Instructions. Instructions for submitting a shoreside processor 
annual EDR and certification page are specified in the following table:

[[Page 63278]]



----------------------------------------------------------------------------------------------------------------
          If you are ...                           And ...                    You must complete and submit ...
----------------------------------------------------------------------------------------------------------------
(i) The shoreside processor owner  (A) You processed BSAI crab in the      Entire EDR
                                    plant described at paragraph
                                    (h)(3)(ii)(B) of this section during
                                    this calendar year.
                                  ------------------------------------------------------------------------------
                                   (B) No one processed BSAI crab in the   EDR certification pages
                                    plant described at paragraph
                                    (h)(3)(ii)(B) of this section during
                                    this calendar year.
                                  ------------------------------------------------------------------------------
                                   (C) You leased all of your IPQ to       (1) EDR certification pages
                                    another party, and processed no BSAI   .....................................
                                    crab in the plant described at         (2) Provide the name, address, and
                                    paragraph (h)(3)(ii)(B) of this         telephone number of the person to
                                    section during this calendar year.      whom you leased the IPQ during this
                                                                            calendar year.
                                  ------------------------------------------------------------------------------
                                   (D) You leased portions of your IPQ to  (1) Entire EDR
                                    another party, but processed some      .....................................
                                    BSAI crab in the plant described at    (2) Provide the name, address, and
                                    paragraph (h)(3)(ii)(B) of this         telephone number of the person to
                                    section during this calendar year.      whom you leased the IPQ during this
                                                                            calendar year.
----------------------------------------------------------------------------------------------------------------
(ii) The leaseholder described in  You operated the plant described at     Entire EDR
 paragraph (h)(1) of this section   paragraph (h)(3)(ii)(B) of this
                                    section and processed some BSAI crab
                                    during this calendar year.
----------------------------------------------------------------------------------------------------------------

    (3) EDR certification pages. (i) The owner or leaseholder must 
submit the EDR certification pages either:
    (A) As part of the entire EDR. The owner or leaseholder must submit 
the completed EDR certification pages as part of the entire EDR and 
must attest to the accuracy and completion of the EDR by signing and 
dating the certification pages; or
    (B) As a separate document. The owner or leaseholder must submit 
the completed EDR certification pages only, and must attest that they 
meet the conditions exempting them from submitting the EDR, by signing 
and dating the certification pages.
    (ii) The owner or leaseholder must submit the following information 
on the certification pages:
    (A) Calendar year of EDR. Calendar year for the reporting year;
    (B) Shoreside processor information. Shoreside processor name, 
company name, crab processor permit number, ADF&G processor code, 
physical location of land[hyphen]based plant (street address, city, 
state, zip code), borough assessed value of plant and equipment, 
estimated value of plant and equipment, and year assessed.
    (C) Owner information. Owner name, title, and business telephone 
number, facsimile number, and e[hyphen]mail address (if available);
    (D) Designated representative. Any owner or leaseholder may appoint 
a designated representative who is an individual for responding to 
questions on the EDR and must ensure that the designated representative 
complies with the regulations in this part. The designated 
representative is the primary contact person for the DCA on issues 
relating to data required in the EDR.
    (E) Person completing the report. (1) Indicate whether the person 
completing this report is the owner, leaseholder, or designated 
representative;
    (2) If the owner is the person completing this report, check the 
correct box. The information provided above does not need to be 
repeated here.
    (3) Name of person, title, and business telephone number, facsimile 
number, and e[hyphen]mail address (if available).
    (4) EDR. The owner or leaseholder must record the following 
information on an EDR.
    (i) Season interval chart. Complete a season interval chart by 
entering the following information: season interval number, number of 
crab processing days, dates covered (beginning and ending day, month, 
and year), species code, raw pounds, product code, process code, crab 
size, crab grade, box size, finished pounds, and whether custom 
processed (Yes or No).
    (ii) Crab processing labor costs. Season interval number, average 
number of crab processing positions, total man[hyphen]hours, and total 
processing labor payment.
    (iii) BSAI Crab crew residence identification. Location of 
residence and the number of employees that reside in each location as 
follows:
    (A) If Alaska, enter primary city of residence.
    (B) If state other than Alaska, enter primary state of residence.
    (C) If country other than United States, enter primary country of 
residence.
    (iv) BSAI crab custom processing done for you. Season interval 
number, species code, raw pounds supplied to custom processors, raw 
pounds purchased from custom processors, product code, process code, 
crab size, crab grade, box size, finished pounds, and processing fee.
    (v) Raw crab purchases from delivering vessels. Season interval 
number, species code, crab size, crab grade, raw pounds purchased, and 
gross payment.
    (vi) Annual BSAI crab sales. For affiliated entities and 
unaffiliated entities enter species code, product code, process code, 
crab size, crab grade, box size, finished pounds, and gross revenue.
    (vii) BSAI crab[hyphen]specific plant costs. Total of fisheries 
taxes which include the Alaska fisheries business tax, SMAA taxes, and 
other local sales tax on raw fish; processing and packaging materials, 
equipment and supplies by city and state; food and provisions; other 
costs for direct crab labor; insurance deductible fees; 
re[hyphen]packing costs; broker fees and promotions for BSAI crab sales 
by season interval number; observer costs by season interval number; 
freight costs for supplies to the plant; freight and handling costs for 
processed crab products from the plant; product storage; water, sewer, 
and waste disposal; and other crab specific costs (specify).
    (viii) Plant-specific costs. Record the total for each category. If 
the reported total expense should not be attributed solely to BSAI crab 
operations, please place an ``X'' in the PRORATE OVER ALL ACTIVITIES 
column. The analyst will prorate this amount over all vessel 
activities: fuel, electricity, lubrication,

[[Page 63279]]

and hydraulic fluids; improvements in plant, and equipment by city and 
state; R&M for existing plant and equipment by city and state; number 
of employees and salaries for foremen, managers and other employees not 
included in direct labor costs; other plant overhead expenses; and 
other plant[hyphen]specific costs (specify).
    (ix) BSAI crab custom processing performed for others. Season 
interval number, species code, product code, process code, whether OUR 
CRAB or THEIR CRAB, and processing revenue.
    (x) Prorating information. Enter the totals for the year for this 
plant in all fisheries for each of the following categories: processing 
days, revenue, pounds processed, and processing labor costs.
    (i) Verification of data. (1) The DCA shall conduct verification of 
information with the owner or leaseholder.
    (2) The owner or leaseholder must respond to inquiries by the DCA 
within 15 days of the date of issuance of the inquiry.
    (3) The owner or leaseholder must provide copies of additional data 
to facilitate verification by the DCA. The DCA auditor may review and 
request copies of additional data provided by the owner or leaseholder, 
including but not limited to: previously audited or reviewed financial 
statements, worksheets, tax returns, invoices, receipts, and other 
original documents substantiating the data.
    (j) The DCA is authorized to request voluntary submission of 
economic data specified herein from persons who are not required to 
submit an EDR under this paragraph (j).


Sec.  680.7  Prohibitions.

    In addition to the general prohibitions specified in Sec.  600.725 
of this chapter, it is unlawful for any person to do any of the 
following:
    (a) Receiving and processing CR crab. (1) Process any CR crab that 
has not been weighed by an RCR on a scale approved by the State in 
which the RCR is located and that meets the requirements described in 
Sec.  680.23(f); or onboard a catcher/processor on a scale approved by 
NMFS as described in Sec.  680.23(e).
    (2) Receive CR crab harvested under an IFQ permit in any region 
other than the region for which the IFQ permit is designated.
    (3) Use IPQ on board a vessel outside of the territorial sea or 
internal waters of the State of Alaska.
    (4) Use IPQ in any region other than the region for which the IPQ 
is designated.
    (5) Receive any crab harvested under a Class A IFQ permit in excess 
of the total amount of unused IPQ held by the RCR.
    (6) Receive crab harvested under a Class B IFQ permit on a vessel 
if that vessel was used to harvest and process any crab in that crab QS 
fishery during the same crab fishing year.
    (7) Receive PQS or IPQ by transfer if you hold Class B IFQ.
    (b) Landing CR crab. (1) Remove retained and unprocessed CR crab 
from a vessel at any location other than to an RCR operating under an 
approved catch monitoring plan as described in Sec.  680.23(g).
    (2) Remove any CR crab processed at sea from any vessel before 
completing a landing report, as defined at Sec.  680.5(f), for all such 
CR crab onboard.
    (3) Resume fishing for CR crab or take CR crab on board a vessel 
once a landing has commenced and until all CR crab are landed.
    (4) Fail to remove all processed crab harvested under a CPO or a 
CPC IFQ permit to an onshore location within the United States, 
accessible by road or regularly scheduled air service, and to weigh 
that crab product on a scale approved by the State in which the crab is 
weighed.
    (5) Fail to remain at a landing site when IFQ crab is being landed 
and until such time as the landing report for that landing is complete.
    (6) Make an IFQ crab landing except by an individual who holds 
either an IFQ crab permit or a Crab IFQ Hired Master Permit issued 
under Sec.  680.4 in his or her name.
    (7) Fish for or land BSAI crab without the original Federal Crab 
Vessel Permit issued to a vessel on board that vessel.
    (8) Make an IFQ crab landing without the following on board: a copy 
of the IFQ crab permit to be debited for the landing; and, if 
applicable, a copy of the Crab IFQ Hired Master Permit issued under 
Sec.  680.4 in the name of the person making the landing.
    (9) For a Crab IFQ Hired Master to make an IFQ crab landing on any 
vessel other than the vessel named on the Crab IFQ Hired Master Permit.
    (c) Harvest crab. (1) Harvest any BSAI crab with any vessel not 
named on a valid Federal Crab Vessel Permit.
    (2) Harvest IFQ crab with any vessel that does not use functioning 
VMS equipment as required by Sec.  680.23.
    (3) Harvest on any vessel more IFQ crab than are authorized under 
Sec.  680.42.
    (4) Harvest crab under a CVC or a CPC IFQ permit unless the person 
named on the IFQ permit is on board that vessel.
    (5) Harvest crab under a CPO or CPC permit unless all scales used 
to weigh crab, or used by an observer for sampling crab, have passed an 
inseason scale test according to Sec.  680.23(e)(1).
    (d) Recordkeeping and reporting. (1) Fail to submit information on 
any report, application, or statement required under this part.
    (2) Submit false information on any report, application, or 
statement required under this part.
    (e) Permits. (1) Retain IFQ crab without a valid crab IFQ permit 
for that fishery on board the vessel.
    (2) Retain IFQ crab on a vessel in excess of the total amount of 
unharvested crab IFQ, for a crab QS fishery that is currently held by 
all crab IFQ permit holders or Crab IFQ Hired Masters aboard the 
vessel.
    (3) Receive Class B IFQ by transfer if a person holds PQS or IPQ.
    (4) Receive Class B IFQ by transfer if you are affiliated with a 
person who holds PQS or IPQ.
    (f) Use IPQ as collateral or otherwise leverage IPQ to acquire an 
ownership interest in Class B IFQ.
    (g) Possess, buy, sell, or transport any crab harvested or landed 
in violation of any provision of this part.
    (h) Violate any other provision under this part.
    (i) Conduct any fishing contrary to notification of inseason action 
closure, or adjustment issued under Sec.  680.22.


Sec.  680.8  Facilitation of enforcement.

    See Sec.  600.730 of this chapter.


Sec.  680.9  Penalties.

    (a) Any person committing, or a fishing vessel used in the 
commission of, a violation of the Magnuson[hyphen]Stevens Act, or any 
regulation issued under the Magnuson[hyphen]Stevens Act, is subject to 
the civil and criminal penalty provisions, permit sanctions, and civil 
forfeiture provisions of the Magnuson[hyphen]Stevens Act, to part 600 
of this chapter, to 15 CFR part 904 (Civil Procedures), and to other 
applicable law. Penalties include but are not limited to permanent or 
temporary sanctions to PQS, QS, IPQ, IFQ, or RCR permits.
    (b) In the event a holder of any IPQ is found by a court of 
competent jurisdiction, either in an original action in that court or 
in a proceeding to enforce or review the findings or orders of any 
Government agency having jurisdiction under the antitrust laws, to have 
violated any of the provisions of antitrust laws in the conduct of the 
licensed activity, the Secretary of Commerce may revoke all or a 
portion of such IPQ. The antitrust laws of the United States include, 
but are not limited to, the following Acts:
    (1) The Sherman Act, 15 U.S.C. 1[hyphen]7;

[[Page 63280]]

    (2) The Wilson Tariff Act, 15 U.S.C. 8[hyphen]11;
    (3) The Clayton Act, 15 U.S.C. 12[hyphen]27; and
    (4) The Federal Trade Commission Act, 15 U.S.C. 12 and 45(a).

Subpart B--Management Measures


Sec.  680.20  Arbitration System.

    (a) Applicability--(1) Arbitration System. All CVO and CVC QS, PQS, 
Arbitration IFQ, Class A IFQ holders, and IPQ holders must enter the 
contracts as prescribed in this section that establish the Arbitration 
System. Certain parts of the Arbitration System are voluntary for some 
parties, as specified in this section. All contract provisions will be 
enforced by parties to those contracts.
    (2) Open negotiation. At any time prior to the first crab fishing 
season for that crab fishing year for that crab QS fishery, any holder 
of uncommitted IFQ may negotiate with any holder of uncommitted IPQ, 
the price and delivery terms for that season or for future seasons for 
any uncommitted IFQ and IPQ. QS holders, uncommitted IFQ holders and 
PQS or IPQ holders may freely contact each other and initiate open 
negotiations.
    (b) Eligibility for Arbitration System--(1) Arbitration 
Organization. The following persons are the only persons eligible to 
join an Arbitration Organization:
    (i) Holders of CVO and CVC QS,
    (ii) Holders of PQS,
    (iii) Holders of Arbitration IFQ,
    (iv) Holders of Class A IFQ affiliated with a PQS or IPQ holder, 
and
    (v) Holders of IPQ.
    (2) Persons Eligible to Use Negotiation and Binding Arbitration 
Procedures. The following persons are the only persons eligible to 
enter contracts with a Contract Arbitrator to use the negotiation and 
Binding Arbitration procedures described in paragraph (h) of this 
section to resolve price and delivery disputes or negotiate remaining 
contract terms not previously agreed to by IFQ and IPQ holders under 
other negotiation approaches:
    (i) Holders of Arbitration IFQ; and
    (ii) Holders of IPQ.
    (3) Persons Ineligible to Use Negotiation and Binding Arbitration 
Procedures. Holders of IFQ or QS that are affiliated with holders of 
PQS or IPQ are ineligible to enter contracts with a Contract Arbitrator 
to use the negotiation and Binding Arbitration procedures described in 
paragraph (h) of this section to resolve price and delivery disputes or 
negotiate remaining contract terms not previously agreed to by IFQ and 
IPQ holders under other negotiation approaches.
    (c) Preseason requirements for joining an Arbitration Organization. 
All holders of CVO and CVC QS, PQS, Arbitration IFQ, Class A IFQ, and 
IPQ must join and maintain a membership in an Arbitration Organization 
as specified in paragraph (d) of this section. All holders of QS, PQS, 
CVO or CVC IFQ, or IPQ must join an Arbitration Organization at the 
following times:
    (1) For QS holders and PQS holders except as provided for in 
paragraph (c)(3) of this section, not later than May 1 of each year for 
the crab fishing year that begins on July 1 of that year.
    (2) For IFQ holders and IPQ holders, not later than 15 days after 
the issuance of IFQ and IPQ for that crab QS fishery.
    (3) During 2005, QS and PQS holders must join an Arbitration 
Organization as described in paragraph (d) of this section not later 
than July 1, 2005.
    (d) Formation process for an Arbitration Organization. (1) 
Arbitration Organizations must be formed to select and contract a 
Market Analyst, Formula Arbitrator, Contract Arbitrator(s), and 
establish the Arbitration System, including the payment of costs of 
arbitration, described in this section for each crab QS fishery. All 
persons defined in paragraph (b)(1) of this section must join an 
Arbitration Organization.
    (i) Arbitration QS/IFQ Arbitration Organization. Holders of 
Arbitration QS and Arbitration IFQ must join an Arbitration QS/IFQ 
Arbitration Organization. This Arbitration Organization may not have 
members who are not holders of Arbitration QS or Arbitration IFQ. 
Arbitration QS holders and Arbitration IFQ holders may join separate 
Arbitration QS/IFQ Arbitration Organizations. The mechanism for forming 
an Arbitration Organization is determined by the members of the 
organization.
    (ii) PQS/IPQ Arbitration Organization. Holders of PQS or IPQ must 
join a PQS/IPQ Arbitration Organization. This Arbitration Organization 
may not have members who are not holders of PQS or IPQ. PQS holders and 
IPQ holders may join separate PQS/IPQ Arbitration Organizations. The 
mechanism for forming an Arbitration Organization is determined by the 
members of the organization.
    (iii) Affiliated QS/IFQ Arbitration Organization. Holders of CVO QS 
or Class A IFQ affiliated with a PQS or IPQ holder must join an 
Affiliated QS/IFQ Arbitration Organization. This Arbitration 
Organization may not have members who are not holders of QS or IFQ 
affiliated with a PQS or IPQ holder. CVO QS holders and Class A IFQ 
holders may join separate Affiliated QS/IFQ Arbitration Organizations. 
The mechanism for forming an Arbitration Organization is determined by 
the members of the organization.
    (iv) No person may be a member of more than one Arbitration 
Organization for a crab QS fishery during a crab fishing year.
    (2) Each Arbitration Organization must submit a complete Annual 
Arbitration Organization report to NMFS. A complete report must 
include:
    (i) A copy of the business license of the Arbitration Organization;
    (ii) A statement identifying the members of the organization and 
the amount of Arbitration QS and Arbitration IFQ, 
Non[hyphen]Arbitration QS and Non[hyphen]Arbitration IFQ, or PQS and 
IPQ held by each member and represented by that Arbitration 
Organization;
    (iii) QS, PQS, IFQ, and IPQ ownership information on the members of 
the organization;
    (iv) Management organization information, including:
    (A) The bylaws of the Arbitration Organization;
    (B) A list of key personnel of the management organization 
including, but not limited to, the board of directors, officers, 
representatives, and any managers;
    (v) The name of the Arbitration Organization, permanent business 
mailing addresses, name of contact persons and additional contact 
information of the managing personnel for the Arbitration Organization, 
resumes of management personnel; and
    (vi) A copy of all minutes of any meeting held by the Arbitration 
Organization or any members of the Arbitration Organization.
    (3) An Arbitration Organization, with members who are QS or PQS 
holders, must submit a complete Annual Arbitration Organization Report 
to NMFS by electronic mail to the Regional Administrator, National 
Marine Fisheries Service, or by mail addressed to the Regional 
Administrator, National Marine Fisheries Service, Post Office Box 
21668, Juneau, Alaska 99802 by:
    (i) June 15, 2005 for the crab fishing year beginning on July 1, 
2005.
    (ii) May 1 of each subsequent year for the crab fishing year 
beginning on July 1 of that year.
    (4) An Arbitration Organization, with members who are IFQ or IPQ 
holders, must submit a complete Annual Arbitration Organization Report 
to NMFS by electronic mail to the Regional Administrator, National 
Marine

[[Page 63281]]

Fisheries Service, or by mail addressed to the Regional Administrator, 
National Marine Fisheries Service, Post Office Box 21668, Juneau, 
Alaska 99802 by not later than 15 days after the issuance of IFQ and 
IPQ for that crab QS fishery.
    (e) Role of Arbitration Organization(s) and annual requirements. 
(1) The members of each Arbitration Organization must enter into a 
contract that specifies the terms and conditions of participation in 
the organization.
    (i) The contract with members of an Arbitration QS/IFQ Arbitration 
Organization, or a PQS/IPQ Arbitration Organization shall include the 
terms, conditions, and provisions specified in paragraph (e)(2) of this 
section.
    (ii) The contract with members of an Affiliated QS/IFQ Arbitration 
Organization shall include the terms, conditions, and provisions in 
paragraph (e)(3) of this section.
    (2) Provisions for Arbitration QS/IFQ Arbitration Organizations, 
and PQS/IPQ Arbitration Organizations--(i) Selection of Market Analyst, 
Formula Arbitrator, and Contract Arbitrator(s). A provision authorizing 
the Arbitration Organization to act on behalf of its members in the 
selection of and contracting with the Market Analyst, Formula 
Arbitrator, and Contract Arbitrator(s) under paragraph (e)(4) of this 
section.
    (ii) Agreement to participate in the arbitration process. A 
provision authorizing the Arbitration Organization to require its 
members to use the Lengthy Season Approach, Share Matching Approach, 
and Binding Arbitration defined under paragraph (h) of this section.
    (iii) Confidentiality of information. A provision that a member 
that is a party to a Binding Arbitration proceeding shall sign a 
confidentiality agreement with the party with whom it is arbitrating 
stating they will not disclose at any time to any person any 
information received from the Contract Arbitrator or any other party in 
the course of the arbitration. That confidentiality agreement shall 
specify the potential sanctions for violating the agreement.
    (iv) Provision of information to members. A provision requiring the 
Arbitration Organization to provide to its members:
    (A) A copy of the contracts for the Market Analyst, Formula 
Arbitrator, and Contract Arbitrator for each fishery in which the 
member participates;
    (B) A provision that requires the Arbitration Organization to 
deliver the Market Report and the Non[hyphen]Binding Price Formula for 
each fishery in which the member participates within 5 days of its 
release.
    (v) Information release. (A) A provision requiring that the 
Arbitration Organization deliver to NMFS any data, information, and 
documents generated pursuant to this section.
    (B) In the case of a PQS/IPQ Arbitration Organization(s),
    (1) A provision that requires the Arbitration Organization to 
provide for the delivery of the names of and contact information for 
its members who hold uncommitted IPQ, and to identify the regional 
designations and amounts of such uncommitted IPQ, to any persons that 
hold uncommitted Arbitration IFQ and prohibits the disclosure of any 
information received under this provision to any person except those 
holders of uncommitted Arbitration IFQ. The provision will require that 
information concerning uncommitted IPQ be updated within 24 hours of a 
change of any such information, including any commitment of IPQ, and 
that information be provided to those persons that hold uncommitted 
Arbitration IFQ. This provision may include a mechanism to provide 
information to uncommitted Arbitration IFQ holders through a secure 
website, or through other electronic means;
    (2) A provision that requires the Arbitration Organization to 
arrange for the delivery to all holders of uncommitted Arbitration IFQ 
the terms of a decision of a Contract Arbitrator in a Binding 
Arbitration proceeding involving a member that holds uncommitted IPQ 
within 24 hours of notice of that decision. This provision may include 
a mechanism to provide information to uncommitted Arbitration IFQ 
holders through a secure website, or through other electronic means; 
and
    (3) A provision that requires the holders of uncommitted IPQ to 
provide information concerning such uncommitted IPQ as necessary for 
the Arbitration Organization to comply with this paragraph and 
prohibits the disclosure of any such information by a member to any 
person, except as directed therein.
    (vi) Costs. A provision that authorizes the Arbitration 
Organization to enter into a contract with all other arbitration 
organizations for the payment of the costs of arbitration as specified 
under this section.
    (A) Payment of costs for arbitration. (1) The arbitration 
organizations must establish a contract that requires the payment of 
all costs of the Market Analyst, Formula Arbitrator, and Contract 
Arbitrator(s), dissemination of information concerning uncommitted IPQ 
to holders of uncommitted Arbitration IFQ, and the costs of such 
persons associated with lengthy season approach, share matching 
approach, Binding Arbitration, quality and performance disputes, to be 
shared equally by all IPQ holders and Arbitration IFQ holders and Class 
A IFQ holders.
    (2) These costs shall be shared based on the amount of IPQ or IFQ 
held by each person.
    (3) These costs shall be divided so that the IPQ holders pay 50 
percent of the costs and the Arbitration IFQ and Class A IFQ holders 
pay 50 percent of the costs.
    (4) PQS holders shall advance all costs and shall collect the 
contribution of Class A IFQ holders at landing subject to terms 
mutually agreed by the arbitration organizations.
    (vii) Negotiation methods. A provision that prohibits the 
Arbitration Organization from engaging in any contract negotiations on 
behalf of its members, except for those necessary to hire the Market 
Analyst, Formula Arbitrator, and Contract Arbitrator(s).
    (viii) Transfer of QS, PQS, IFQ, or IPQ. A provision under which 
members of the Arbitration Organization agree that any transfer of QS, 
PQS, IFQ or IPQ shall be conditioned on the purchaser of such 
Arbitration QS, PQS, Arbitration IFQ, or Non[hyphen]Arbitration Class A 
IFQ, or IPQ being a member of an Arbitration Organization that 
satisfies all of the applicable requirements of this section and such 
purchase being subject to all of provisions of the Arbitration System 
that apply to the holder of the transferred QS, PQS, IFQ, or IPQ.
    (ix) Enforcement of the contract. Violations of the contract shall 
be enforced under civil law.
    (3) Provisions applying to Affiliated QS/IFQ Arbitration 
Organizations. The provisions that allow for the provision of 
information to members, payment of costs, limits on the transfer of QS, 
PQS, IFQ, and IPQ, and enforcement of the contract as described under 
paragraphs (e)(iv), (vi),(viii), and (ix) will apply to the contract 
among members of an Affiliated QS/IFQ Arbitration Organization(s).
    (4) Process for selecting of Market Analyst, Formula Arbitrator, 
and Contract Arbitrator(s). (i) For each crab fishing year, QS holders 
who are members of Arbitration QS/IFQ Arbitration Organization(s) and 
PQS holders who are members of PQS/IPQ Arbitration Organization(s), by 
mutual agreement, will select one Market Analyst, one Formula 
Arbitrator, and Contract Arbitrator(s) for each crab QS fishery. The 
number of Contract Arbitrators selected for each fishery will be 
subject to the mutual agreement of those arbitration organizations. The

[[Page 63282]]

selection of the Market Analyst and the Formula Arbitrator must occur 
in time to ensure the Market Report and non[hyphen]binding price 
formula are produced within the time line established in paragraph 
(e)(4)(ii).
    (ii) The arbitration organizations representing Arbitration QS 
holders or PQS holders in a crab fishery shall establish by mutual 
agreement the contractual obligations of the Market Analyst, Formula 
Arbitrator, and Contract Arbitrator(s) for each fishery, which shall 
provide that the Market Report and Non[hyphen]Binding Price Formula are 
produced not later than 50 days prior to the first crab fishing season 
for that crab QS fishery in that crab fishing year except as provided 
in paragraph (e)(6) of this section. The contractual obligations of the 
Market Analyst, the Formula Arbitrator and Contract Arbitrators will be 
enforced by the parties to the contract.
    (iii) The same person may be chosen for the positions of Market 
Analyst and Formula Arbitrator for a fishery.
    (iv) A person selected to be a Contract Arbitrator may not be the 
Market Analyst or Formula Arbitrator, and shall not be in the employ or 
otherwise associated with the Market Analyst or Formula Arbitrator, for 
that fishery.
    (5) Notification to NMFS. Not later than June 1 for that crab 
fishing year, except as provided in paragraph (e)(6) of this section, 
the arbitration organizations representing the holders of Arbitration 
QS and PQS in each fishery shall notify NMFS of the persons selected as 
the Market Analyst, Formula Arbitrator, and Contract Arbitrator(s) for 
the fishery by electronic mail addressed to the Regional Administrator, 
National Marine Fisheries Service, or by mail addressed to the Regional 
Administrator, National Marine Fisheries Service, Post Office Box 
21668, Juneau, Alaska 99802. The arbitration organizations shall 
include a list of arbitration organizations that mutually agreed to the 
selection of the Market Analyst, Formula Arbitrator, and Contract 
Arbitrator(s) and signatures of representatives of those arbitration 
organizations and a copy of the contract with Market Analyst, the 
Formula Arbitrator, and each Contract Arbitrator. The notification must 
include a curriculum vitae and other relevant biographical material for 
each of these individuals.
    (6) First[hyphen]year implementation. During 2005:
    (i) Selection of and establishment of the contractual obligations 
of the Market Analyst, Formula Arbitrator, and Contract Arbitrator(s) 
as required under this section shall occur not later than July 30, 
2005; and
    (ii) The Market Report and Non[hyphen]Binding Price Formula shall 
be produced not later than 25 days prior to the first crab fishing 
season for that crab QS fishery in that crab fishing year as required 
under this section.
    (f) Roles and standards for the Market Analyst and process for 
producing the Market Report. (1) For each crab QS fishery, the 
Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ 
Arbitration Organizations shall establish a contract with the Market 
Analyst to produce a Market Report for the fishery. The terms of this 
contract must specify that the Market Analyst must produce a Market 
Report that shall provide an analysis of the market for products of 
that fishery.
    (2) The contract with the Market Analyst must specify that:
    (i) The Market Analyst shall base the Market Report:
    (A) On a survey of the market for crab products produced by the 
fishery.
    (B) Information provided by the IPQ and IFQ holders regarding 
market conditions and expectations.
    (iii) To the extent IPQ and IFQ holders provide information 
requested by the Market Analyst, they must provide such information 
directly to the Market Analyst and not to any other IPQ holder or IFQ 
holder, except that IFQ holders that are members of any single crab 
harvesting cooperative may share such information with other members of 
the same crab harvesting cooperative who are authorized to participate 
in the arbitration system.
    (iv) The Market Analyst:
    (A) May meet with IFQ holders who are members of any single crab 
harvesting cooperative collectively;
    (B) Shall meet with IPQ holders individually
    (C) Shall meet with distinct crab harvesting cooperatives 
individually;
    (D) Shall meet with IFQ holders who are not members of the same 
crab harvesting cooperatives individually.
    (v) The information provided to the Market Analyst by IPQ and IFQ 
holders must be historical information based on activities occurring 
more than three months prior to the generation of the Market Report.
    (vi) The Market Analyst shall keep confidential the identity of the 
source of any particular information contained in the report. The 
Market Analyst may note generally the sources from which it gathered 
information. The report shall:
    (A) Include only data that is based on information regarding 
activities occurring more than three months prior to the generation of 
the Market Report;
    (B) Include only statistics for which there are at least five 
providers reporting data upon which each statistic is based and for 
which no single provider's data represents more than 25 percent of a 
weighted basis of that statistic; and
    (C) Sufficiently aggregate any information disseminated in the 
report such that it would not identify specific price information by an 
individual provider of information.
    (vii) The Market Report shall consider the following factors:
    (A) Current ex[hyphen]vessel prices, including ex[hyphen]vessel 
prices received for crab harvested under Class A, Class B, and CVC IFQ 
permits;
    (B) Consumer and wholesale product prices for the processing sector 
and the participants in the arbitration (recognizing the impact of 
sales to affiliates on wholesale pricing);
    (C) Innovations and developments of the harvesting and processing 
sectors and the participants in the arbitration (including new product 
forms);
    (D) Efficiency and productivity of the harvesting and processing 
sectors (recognizing the limitations on efficiency and productivity 
arising out of the management program structure);
    (E) Quality (including quality standards of markets served by the 
fishery and recognizing the influence of harvest strategies on the 
quality of landings);
    (F) The interest of maintaining financially healthy and stable 
harvesting and processing sectors;
    (G) Safety and expenditures for ensuring adequate safety;
    (H) Timing and location of deliveries; and
    (I) The cost of harvesting and processing less than the full IFQ or 
IPQ allocation (underages) to avoid penalties for overharvesting IFQ 
and a mechanism for reasonably accounting for deadloss.
    (viii) There shall only be one annual Market Report for each 
fishery.
    (ix) The Market Analyst shall not issue interim or supplemental 
reports for each fishery;
    (3) The Market Analyst shall not disclose any information to any 
person not required under this section.
    (4) The contract with the Market Analyst must specify that the 
Market Analyst will provide the Market Report not later than 50 days 
prior to the first crab fishing season for that crab QS fishery in that 
crab fishing year to:
    (i) Each Arbitration Organization in that fishery;
    (ii) NMFS by electronic mail to the Regional Administrator, 
National Marine Fisheries Service, or addressed to the Regional 
Administrator, National Marine Fisheries Service, Post Office Box 
21668, Juneau, Alaska 99802.

[[Page 63283]]

    (iii) The Formula Arbitrator and any Contract Arbitrator(s) for the 
fishery.
    (g) Roles and standards for the Formula Arbitrator. (1) For each 
crab QS fishery, the Arbitration QS/IFQ Arbitration Organizations and 
the PQS/IPQ Arbitration Organizations shall establish a contract with 
the Formula Arbitrator to develop a Non[hyphen]Binding Price Formula.
    (2) The contract with the Formula Arbitrator must specify that:
    (i) The Formula Arbitrator will conduct a single annual 
fleet[hyphen]wide analysis of arbitrations to establish a 
Non[hyphen]Binding Price Formula under which a fraction of the weighted 
average first wholesale prices for crab products from the fishery may 
be used to set an ex vessel price.
    (ii) The Non[hyphen]Binding Price Formula shall:
    (A) Be based on the historical distribution of first wholesale 
revenues between fishermen and processors in the aggregate based on 
arm's length first wholesale prices and ex vessel prices, taking into 
consideration the size of the harvest in each year; and
    (B) Establish a price that preserves the historical division of 
revenues in the fishery while considering the following:
    (1) Current ex[hyphen]vessel prices, including ex[hyphen]vessel 
prices received for crab harvested under Class A, Class B, and CVC IFQ 
permits;
    (2) Consumer and wholesale product prices for the processing sector 
and the participants in arbitrations (recognizing the impact of sales 
to affiliates on wholesale pricing);
    (3) Innovations and developments of the harvesting and processing 
sectors and the participants in arbitrations (including new product 
forms);
    (4) Efficiency and productivity of the harvesting and processing 
sectors (recognizing the limitations on efficiency and productivity 
arising out of the management program structure);
    (5) Quality (including quality standards of markets served by the 
fishery and recognizing the influence of harvest strategies on the 
quality of landings);
    (6) The interest of maintaining financially healthy and stable 
harvesting and processing sectors;
    (7) Safety and expenditures for ensuring adequate safety;
    (8) Timing and location of deliveries; and
    (9) The cost of harvesting and processing less than the full IFQ or 
IPQ allocation (underages) to avoid penalties for overharvesting IFQ 
and a mechanism for reasonably accounting for deadloss.
    (C) Include identification of various relevant factors such as 
product form, delivery time, and delivery location.
    (D) Consider the ``highest arbitrated price'' for the fishery from 
the previous crab fishing season, where the ``highest arbitrated 
pricemeans the highest arbitrated price for arbitrations of 
IPQ and Arbitration IFQ which represent a minimum of at least 7 percent 
of the IPQ resulting from the PQS in that fishery. For purposes of this 
process, the Formula Arbitrator may aggregate up to three arbitration 
findings to collectively equal a minimum of 7 percent of the IPQ. When 
arbitration findings are aggregated with 2 or more entities, the lesser 
of the arbitrated prices of the arbitrated entities included to attain 
the 7 percent minimum be considered for the highest arbitrated price.
    (iii) The Non[hyphen]Binding Price Formula may rely on any relevant 
information available to the Formula Arbitrator, including, but not 
limited to,
    (A) Information provided by the QS, PQS, IPQ and IFQ holders in the 
fishery; and
    (B) The Market Report for the fishery.
    (iv) The Formula Arbitrator:
    (A) May meet with IFQ holders who are members of any single crab 
harvesting cooperative collectively;
    (B) Shall meet with IPQ holders individually
    (C) Shall meet with distinct crab harvesting cooperatives 
individually;
    (D) Shall meet with IFQ holders who are not members of the same 
crab harvesting cooperatives individually.
    (v) The Formula Arbitrator may request any relevant information 
from QS, PQS, IPQ, and IFQ holders in the fishery, but the Formula 
Arbitrator shall not have subpoena power.
    (vi) May obtain information from persons other than QS, PQS, IPQ, 
and IFQ holders in the fishery, if those persons agree to provide such 
data. Any information that is provided must be based on activities 
occurring more than three months prior to the date of submission to the 
Formula Arbitrator;
    (vii) Shall keep confidential the information that is not publicly 
available and not disclose the identity of the persons providing 
specific information; and
    (viii) The contract with the Formula Arbitrator must specify that 
the Formula Arbitrator will provide the non[hyphen]binding price 
formula not later than 50 days prior to the first crab fishing season 
for that crab QS fishery in that crab fishing year to:
    (A) Each Arbitration Organization in that fishery;
    (B) NMFS by electronic mail to the Regional Administrator, National 
Marine Fisheries Service, or addressed to the Regional Administrator, 
National Marine Fisheries Service, Post Office Box 21668, Juneau, 
Alaska 99802.
    (C) The Market Analyst and all Contract Arbitrators in the fishery.
    (ix) The Formula Arbitrator shall not disclose any information to 
any person not required under this section, except as permitted by 
paragraph (j) of this section.
    (h) Roles and standards for the Contract Arbitrator(s). (1) For 
each crab QS fishery, the Arbitration QS/IFQ Arbitration Organizations 
and PQS/IPQ Arbitration Organizations shall establish a contract with 
all Contract Arbitrators in that fishery that specifies that each 
Contract Arbitrator may be selected to resolve a dispute concerning the 
terms of delivery, price, or other factors in the fishery.
    (2) Selection of Contract Arbitrators. The contract with the 
Contract Arbitrator shall specify the means by which the Contract 
Arbitrator will be selected to resolve specific disputes. This contract 
must specify that for any dispute for which the Contract Arbitrator is 
selected, that the Contract Arbitrator will comply with the last best 
offer arbitration method as set forth in this section.
    (3) Negotiation and Binding Arbitration Procedure. The contract 
with the Contract Arbitrator(s) shall specify the following approaches 
for negotiation and Binding Arbitration among members of the 
Arbitration Organizations:
    (i) Restrictions on collective negotiation. An IFQ and IPQ holder 
may negotiate individually. Groups of IFQ holders may negotiate 
collectively with an IPQ holder only under the following provisions:
    (A) Members of a crab harvesting cooperative may participate 
collectively with other members of the same crab harvesting cooperative 
in Binding Arbitration except as otherwise provided under this section.
    (B) Members of different crab harvesting cooperatives shall not 
participate collectively.
    (C) IPQ holders shall not participate collectively. Only one IPQ 
holder can enter into Binding Arbitration with any IFQ holder or IFQ 
holder(s).
    (D) An Arbitration Organization cannot negotiate on behalf of a 
member. This shall not prohibit the members of an Arbitration IFQ 
Arbitration Organization from negotiation as a crab harvesting 
cooperative under the FCMA.
    (ii) Open negotiations. At any time prior to the date of the first 
crab fishing seas on a crab fishing year for that crab QS fishery, any 
holder of Arbitration QS or uncommitted IFQ may negotiate with any 
holder of PQS or uncommitted IPQ,

[[Page 63284]]

the price and delivery terms for that season for any uncommitted IFQ 
and IPQ.
    (A) Arbitration QS or Arbitration IFQ holders and PQS or IPQ 
holders may freely contact each other and initiate open negotiations;
    (B) If Arbitration QS or Arbitration IFQ holders and PQS or IPQ 
holders do not reach an agreement on price, delivery terms, or other 
terms, a party to the contract may initiate Binding Arbitration in 
accordance with the procedures specified in this section in order to 
resolve disputes in those price, delivery terms, or other terms.
    (iii) Lengthy season approach. (A) Prior to the date of the first 
crab fishing season for that crab QS fishery in that crab fishing year 
an IPQ holder and one or more holders of Arbitration IFQ may choose to 
adopt a Lengthy Season approach.
    (B) A Lengthy Season approach allows an IPQ holder and an 
Arbitration IFQ holder to agree to postpone negotiation of specific 
contract terms until a time during the crab fishing year as agreed upon 
by the Arbitration IFQ holder and IPQ holder participating in the 
negotiation. The Lengthy Season approach allows the Arbitration IFQ 
holders and IPQ holder involved in the negotiation to postpone Binding 
Arbitration, if necessary, until a time during the crab fishing year. 
If the parties ready a final agreement on the contract terms, Binding 
Arbitration is not necessary.
    (C) If an IPQ holder and one or more Arbitration IFQ holder(s) are 
unable to reach an agreement on whether to adopt a Lengthy Season 
approach, they may agree to request a Binding Arbitration or mediation 
to assist the parties in determining whether to adopt a Lengthy Season 
approach. The parties may request a Contract Arbitrator to act as a 
mediator. If the mediation proves unsuccessful, the parties enter 
Binding Arbitration to determine whether to adopt a lengthy season 
approach.
    (1) Binding Arbitration may begin immediately with the same 
Contract Arbitrator.
    (2) If the Contract Arbitrator serves as a mediator in an 
unsuccessful mediation, either party may request another Contract 
Arbitrator for the Binding Arbitration.
    (iv) Share Matching. (A) At any time after the issuance of IFQ and 
IPQ for a crab QS fishery but not earlier than 25 days prior to the 
first crab fishing season for a crab QS fishery in the crab fishing 
year, holders of uncommitted Arbitration IFQ may choose to commit the 
delivery of harvests of crab to be made with that uncommitted 
Arbitration IFQ to a holder of uncommitted IPQ.
    (B) To commit Arbitration IFQ, the holder of uncommitted IFQ must 
offer an amount of Arbitration IFQ not less than 50 percent of the 
Arbitration IFQ holder's total uncommitted Arbitration IFQ.
    (C) Any holder of uncommitted IPQ must accept all proposed 
Arbitration IFQ commitments, up to the amount of its uncommitted IPQ. 
The commitment of IPQ will take place on receipt of notice from the 
holder of uncommitted Arbitration IFQ of the intention to commit that 
IFQ.
    (D) After matching, an Arbitration IFQ holder and an IPQ holder may 
either decide to enter Binding Arbitration or, with the consent of both 
the Arbitration IFQ holder and IPQ holder, enter mediation to reach 
agreement on contract terms. The Arbitration IFQ holder and IPQ holder 
may request a Contract Arbitrator to act as a mediator to facilitate an 
agreement.
    (1) If the mediation proves unsuccessful, Binding Arbitration may 
begin immediately with the same Contract Arbitrator.
    (2) If the Contract Arbitrator serves as a mediator in an 
unsuccessful mediation, either party may request another Contract 
Arbitrator for the Binding Arbitration.
    (v) Initiation of Binding Arbitration. Except for the Lengthy 
Season approach, at any point more than 15 days prior to the date of 
the first crab fishing season for a crab QS fishery an Arbitration IFQ 
holder or IPQ holder may initiate a Binding Arbitration. Binding 
Arbitration is initiated after the Arbitration IFQ holder notifies an 
IPQ holder and the Contract Arbitrator(s), or the IPQ holder has 
notified the Arbitration IFQ holder and the Contract Arbitrator(s). 
Binding Arbitration may be initiated to resolve price, terms of 
delivery, and other disputes arising from:
    (A) Open Negotiation among Arbitration IFQ holders and IPQ holders;
    (B) Lengthy Season Approach;
    (C) Share Matching; or
    (D) Performance Disputes.
    (vi) Joining a Binding Arbitration Proceeding. Any Arbitration IFQ 
holder may join a Binding Arbitration proceeding as a party by 
providing notice to the IPQ holder and the Contract Arbitrator(s).
    (vii) Arbitration Schedule Meeting. The Contract Arbitrator shall 
meet with all parties to a Binding Arbitration proceeding as soon as 
possible once a Binding Arbitration proceeding has been initiated for 
the sole purpose of establishing a schedule for the Binding 
Arbitration. This schedule shall include the date by which the IPQ 
holder and Arbitration IFQ holder(s) must submit their last best offer 
and any supporting materials, and any additional meetings or mediation 
if agreed to by all parties. This meeting will discuss the schedule of 
the Binding Arbitration proceedings and not address terms of last best 
offers.
    (viii) Terms of Last Best Offers. The Contract Arbitrator will meet 
with the parties to the Binding Arbitration proceeding to determine the 
matters that must be included in the last best offer, which may include 
a fixed price or a price over a time period specified by the parties, a 
method for adjusting prices over a crab fishing year, or an advance 
price paid at the time of delivery.
    (ix) Submission of Last Best Offers. The parties to a Binding 
Arbitration proceeding shall each submit to the Contract Arbitrator(s) 
a last best offer defining all the terms specified for inclusion in a 
last best offer by the Contract Arbitrator. An Arbitration IFQ holder 
that is a crab harvesting cooperative may submit a last best offer that 
defines terms for the delivery of crab harvested by members of that 
crab harvesting cooperative with IFQ held by the cooperative. An 
Arbitration IFQ holder that is not a crab harvesting cooperative may 
submit a last best offer that defines the term of delivery of crab 
harvested with IFQ held by that person. The IPQ holder that is a party 
to the proceeding shall submit a single offer that defines terms for 
delivery of crab harvested with all IFQ that are subject to the 
proceedings.
    (x) Arbitration Decisions. The Contract Arbitrator(s) shall decide 
among each offer received from an Arbitration IFQ holder and the offer 
received from the IPQ holder. Each arbitration decision shall result in 
a binding contract between the IPQ holder and theArbitration IFQ holder 
defined by the terms of the offer selected by Contract Arbitrator(s).
    (xi) Announcement of Decisions. (A) If last best offers are 
submitted at least 15 days before the first crab fishing season for 
that crab fishing year for that crab QS fishery, arbitration decisions 
shall be issued no later than 10 days before the first crab fishing 
season for that crab fishing year for that crab QS fishery. Otherwise, 
the Contract Arbitrator will notify the parties of the arbitration 
decision within 5 days of the parties submitting their last best 
offers.
    (B) The Contract Arbitrator will notify the parties by providing 
each Arbitration IFQ holder and IPQ holder that is a party to the 
Binding Arbitration proceeding, a copy of any decision. The

[[Page 63285]]

decision is binding on the parties to the Binding Arbitration 
proceeding.
    (4) Basis for the Arbitration Decision. The contract with the 
Contract Arbitrator shall specify that the Contract Arbitrator will be 
subject to the following provisions when deciding which last best offer 
to select:
    (i) The Contract Arbitrator's decision shall:
    (A) Be based on the historical distribution of first wholesale 
revenues between fishermen and processors in the aggregate based on 
arm's length first wholesale prices and ex vessel prices, taking into 
consideration the size of the harvest in each year; and
    (B) Establish a price that preserves the historical division of 
revenues in the fishery while considering the following:
    (1) Current ex[hyphen]vessel prices, including ex[hyphen]vessel 
prices received for crab harvested under Class A, Class B, and CVC IFQ 
permits;
    (2) Consumer and wholesale product prices for the processing sector 
and the participants in the arbitration (recognizing the impact of 
sales to affiliates on wholesale pricing);
    (3) Innovations and developments of the harvesting and processing 
sectors and the participants in the arbitration (including new product 
forms);
    (4) Efficiency and productivity of the harvesting and processing 
sectors (recognizing the limitations on efficiency and productivity 
arising out of the management program structure);
    (5) Quality (including quality standards of markets served by the 
fishery and recognizing the influence of harvest strategies on the 
quality of landings);
    (6) The interest of maintaining financially healthy and stable 
harvesting and processing sectors;
    (7) Safety and expenditures for ensuring adequate safety;
    (8) Timing and location of deliveries; and
    (9) The cost of harvesting and processing less than the full IFQ or 
IPQ allocation (underages) to avoid penalties for overharvesting IFQ 
and a mechanism for reasonably accounting for deadloss.
    (C) Consider the Non[hyphen]Binding Price Formula established in 
the fishery by the Formula Arbitrator.
    (ii) The Contract Arbitrator's decision may rely on any relevant 
information available to the Contract Arbitrator, including, but not 
limited to:
    (A) Information provided by the QS, PQS, IPQ and IFQ holders in the 
fishery regarding the factors identified in paragraph (h)(4)(i) of this 
section; and
    (B) The Market Report for the fishery.
    (iii) Each of the Arbitration IFQ holder and the IPQ holder that 
are party to the proceeding may provide the Contract Arbitrator with 
additional information to support its last best offer. The Contract 
Arbitrator must receive and consider all data submitted by the parties.
    (iv) The Contract Arbitrator may request specific information from 
the Arbitration IFQ holder(s) and IPQ holder that would be useful in 
reaching a final decision. The Contract Arbitrator will not have 
subpoena power and it is in the sole discretion of the person from whom 
information is requested as to whether to provide the requested 
information.
    (5) Limits on the Release of Data. The parties to a Binding 
Arbitration proceeding shall be precluded from full access to the 
information provided to the Contract Arbitrator.
    (i) Arbitration IFQ holders that are party to an arbitration 
proceeding shall have access only to information provided directly by 
the IPQ holder to the Contract Arbitrator for that Binding Arbitration 
proceeding.
    (ii) IPQ holders that are party to an arbitration proceeding shall 
have access only to information provided directly by an Arbitration IFQ 
holder to the Contract Arbitrator for that Binding Arbitration 
proceeding.
    (iii) The Contract Arbitrator shall keep confidential the 
information provided by any QS, PQS, IFQ, or IPQ holders in the fishery 
and not disclose the identity of the persons providing specific 
information except as provided in paragraph (h)(6) of this section.
    (6) Information Provided to NMFS. The contract with the Contract 
Arbitrator must specify that the Contract Arbitrator provide NMFS with:
    (i) A copy of any minutes from any meeting attended by that 
Contract Arbitrator between or among any PQS or IPQ holders concerning 
any negotiations under this section.
    (ii) Any last[hyphen]best offers made during the Binding 
Arbitration process, including all contract details, the names of other 
participants in the arbitration, and whether the bid was accepted by 
the Contract Arbitrator; and
    (iii) A copy of any information, data, or documents given by the 
Contract Arbitrator to any person who is not a party to the particular 
arbitration for which that information was provided. The Contract 
Arbitrator must identify the arbitration to which those information, 
data, or documents apply, and the person to whom those information, 
data, or documents were provided.
    (iv) The Contract Arbitrator must provide any information, 
documents, or data required under this paragraph to NMFS via mail to 
the Administrator, Alaska Region, NMFS, P.O. Box 21668, Juneau, AK 
99802[hyphen]1668, or electronically not later than 30 days prior to 
the end of the crab fishing year for which the open negotiation or 
arbitration applied.
    (7) Enforcement of Binding Arbitration decisions. The decision of 
the Contract Arbitrator for Binding Arbitration shall be enforced among 
the parties to that arbitration.
    (8) Failure of Contract Arbitrator(s). Except as provided for in 
paragraph (h)(6)(v) of this section, the failure of a Contract 
Arbitrator to perform shall be enforced by the Arbitration 
Organizations.
    (9) Availability of Terms and Conditions of an Arbitration 
Decision. Each party to an Arbitration must make the terms and 
conditions of an arbitration decision available to that party's 
Arbitration Organization in order for the Arbitration Organization to 
make such information available to uncommitted Arbitration IFQ holders 
that may wish to opt[hyphen]in to those terms as described in paragraph 
(h)(10) of this section within 5 days of receiving the request for that 
information.
    (10) Post Binding Arbitration opt[hyphen]in. (i) An Arbitration IFQ 
holder with uncommitted IFQ, may opt[hyphen]in to any contract that 
results from a completed a Binding Arbitration procedure with any IPQ 
holder that has uncommitted IPQ.
    (A) All the terms from the arbitrated contract will apply.
    (B) Once exercised, the opt[hyphen]in results in a contract that is 
binding on both the Arbitration IFQ and IPQ holder.
    (ii) To initiate the opt[hyphen]in process, the holder of 
uncommitted Arbitration IFQ will notify the holder of uncommitted IPQ 
in writing of its intent to opt[hyphen]in.
    (iii) Holders of uncommitted Arbitration IFQ may opt[hyphen]in to a 
contract resulting from a completed Binding Arbitration procedure with 
a person that holds uncommitted IPQ for that fishery.
    (iv) If the IPQ holder and the Arbitration IFQ holder are unable to 
resolve a dispute regarding whether the opt[hyphen]in offer is 
consistent with the original contract from the completed Binding 
Arbitration procedure, the dispute may be decided by the Contract 
Arbitrator to the original arbitration that resulted in the contract to 
which the Arbitration IFQ holder is seeking to opt[hyphen]in. The 
Contract Arbitrator will decide only whether the proposed opt[hyphen]in 
terms are consistent with the original contract.
    (11) Performance disputes. If an IPQ holder and an Arbitration IFQ 
holder are unable to resolve disputes regarding the obligations to 
perform specific

[[Page 63286]]

contract provisions after substantial negotiations or when time is of 
the essence, the issues of that dispute shall be submitted for Binding 
Arbitration before a Contract Arbitrator for that fishery.
    (i) Binding Arbitration resulting from a performance dispute can 
occur at any point during or after the crab fishing year. The dispute 
must be raised by the IPQ holder or the Arbitration IFQ holder. 
Arbitration of that performance dispute must be initiated prior to the 
date of the first crab fishing season for the following crab fishing 
year in that crab QS fishery.
    (ii) Performance dispute arbitration shall follow the same 
procedures described for a Binding Arbitration in paragraph (h) of this 
section.
    (iii) If the arbitration proves unsuccessful or a party fails to 
abide by the arbitration decision, a party may pursue available 
contract remedies.
    (iv) The costs of arbitrating performance disputes shall be 
provided from the general fees collected by the arbitration 
organizations pursuant to paragraph (h) of this section.
    (v) The Contract Arbitrator may assign fees to any party bringing 
frivolous complaints. Any such fees shall be paid by the party and not 
from the fees collected under paragraph (e)(2)(vi) of this section.
    (12) Quality disputes. When disputes regarding the quality of the 
harvested crab arise within the context of an existing contract, the 
parties may settle the disputes within the context of the arbitration 
system according to the following:
    (i) In cases where the IPQ holder and Arbitration IFQ holder(s) 
have agreed to a formula[hyphen]based price for crab but where they 
cannot reach an agreement on the quality and price of the crab, the IPQ 
holder and Arbitration IFQ holder(s) will receive their share of the 
value of the amount of crab delivered based on the provisions of the 
contract.
    (ii) In quality disputes where the Arbitration IFQ holders prefer 
to use actual ex[hyphen]vessel price and not a formula[hyphen]based 
price and a dispute arises regarding crab quality and price, the 
dispute should be referred to a mutually agreeable independent quality 
specialist firm. This independent quality specialist firm will 
determine the price to be paid to the IPQ holder and IFQ holder(s). The 
IPQ holder and Arbitration IFQ holder(s) with this quality dispute 
shall share the cost of hiring the specialist firm and agree to abide 
by its findings according to the terms of their agreement.


Sec.  680.21  Crab fishery cooperatives.

    This section governs the formation and operation of crab harvesting 
cooperatives. A crab harvesting cooperative is a group of crab QS 
holders who have chosen to form a cooperative under the 1934 
Fisherman's Collective Marketing Act (15 U.S.C. 521) in order to 
combine and collectively manage their crab IFQ through a crab 
cooperative IFQ permit issued by NMFS.
    (a) Types of cooperatives governed under this section. The 
regulations in this section apply only to crab harvesting cooperatives 
that have formed for the purpose of applying for and of fishing under a 
crab cooperative IFQ fishing permit issued by NMFS.
    (b) Membership requirements. A crab harvesting cooperative is 
limited to QS holders who hold any amount of CPO, CVO, CPC, or CVC and 
who, NMFS has determined, are eligible to receive IFQ.
    (1) Minimum number of members. Each crab harvesting cooperative 
must include at least four unique QS holding entities. A unique QS 
holding entity is a QS holder or group of affiliated QS holders that 
are not affiliated with any other QS holders or QS holding entities in 
the cooperative. For the purpose of this paragraph, the term 
``affiliation'' is defined at Sec.  680.2.
    (2) Voluntary nature of membership. Membership in a crab harvesting 
cooperative is voluntary. No person may be required to join a crab 
harvesting cooperative, and no crab harvesting cooperative may be 
required to accept a member who the cooperative chooses not to accept.
    (3) Limitations on membership in a crab harvesting cooperative. A 
QS holder who also holds PQS or IPQ, is affiliated with a person who 
holds PQS or IPQ, processes Class B IFQ, or is affiliated with a person 
that processes Class B IFQ is prohibited from joining a crab harvesting 
cooperative.
    (4) Membership is all or nothing. Upon joining a cooperative, each 
QS holder must allow all of his or her QS holdings to be used by the 
cooperative for conversion to cooperative IFQ.
    (5) Membership in more than one cooperative prohibited. A QS holder 
may not hold simultaneous memberships in more than one crab harvesting 
cooperative.
    (c) Legal and organizational requirements for crab harvesting 
cooperatives. A crab harvesting cooperative must meet the following 
legal and organization requirements before it is eligible to apply for 
a cooperative IFQ permit:
    (1) Registered business entity. Each crab harvesting cooperative 
must be formed as a partnership, corporation, or other legal business 
entity that is registered under the laws of one of the 50 states or the 
District of Columbia.
    (2) Fisherman's Collective Marketing Act of 1934. Each crab 
harvesting cooperative must be formed in accordance with the 
requirements of the Fisherman's Collective Marketing Act of 1934 (15 
U.S.C. 521).
    (3) Appointment of a designated representative. Each crab 
harvesting cooperative must appoint a designated representative to act 
on the cooperative's behalf and serve as contact point for NMFS for 
questions regarding the operation of the cooperative. The designated 
representative may be a member of the cooperative or some other 
individual authorized by the cooperative to act on its behalf.
    (d) Application for annual crab harvesting cooperative IFQ permits. 
A crab harvesting cooperative IFQ permit is an annual permit issued to 
a cooperative that establishes an annual catch limit of crab that is 
based on the collective QS holdings of the members of the cooperative. 
A crab harvesting cooperative IFQ permit will list the IFQ amount held 
by the cooperative and identify the members of the cooperative. Each 
cooperative will be issued a separate IFQ permit for each type of QS 
held by a member (or members) of the cooperative.
    (1) June 30 application deadline. Each crab harvesting cooperative 
annually must submit to and be received by NMFS by June 30, a completed 
application for annual crab harvesting cooperative IFQ permit, together 
with the signed annual application for crab IFQ/IPQ permit forms of all 
the members of the cooperative.
    (2) Contents of application for annual crab harvesting cooperative 
IFQ permit. A completed application must contain the following 
information:
    (i) Cooperative identification. (A) The cooperative's legal name;
    (B) Type of business entity under which the cooperative is 
organized;
    (C) State in which the cooperative is legally registered as a 
business entity;
    (D) Name of the cooperative's designated representative;
    (E) Permanent business address, telephone number, facsimile number, 
and e[hyphen]mail address (if available) for the cooperative or its 
designated representative;
    (F) Signature of the cooperative's designated representative and 
the date signed.
    (ii) Members of the cooperative. Full name and NMFS Person ID 
number of each member of the cooperative. Attach the completed and 
signed Annual

[[Page 63287]]

Application for Crab IFQ/IPQ Permit for all members of the cooperative;
    (iii) Affiliation declaration. Indicate (YES or NO) whether any 
member of the cooperative is affiliated with an entity that holds IPQ 
or PQS, or that processes IFQ crab (other than a catcher/processor that 
processes only its own catch). If YES, your cooperative is not eligible 
to receive a cooperative IFQ permit.
    (iv) Additional documentation. In order to file a complete 
application, attach the following documents to this application:
    (A) A copy of the business license issued by the state in which the 
cooperative is registered as a business entity;
    (B) A copy of the articles of incorporation or partnership 
agreement of the cooperative; and
    (C) A copy of the cooperative agreement signed by the members of 
the cooperative (if different from paragraph (d)(3)(iii)(B) of this 
section).
    (4) Issuance of cooperative IFQ permits. Upon receipt of a 
completed Application for an Annual Crab Harvesting Cooperative IFQ 
Permit that is subsequently approved, NMFS will issue one[hyphen]year 
crab harvesting cooperative IFQ permits to the cooperative. The crab 
harvesting cooperative IFQ permits will list the crab IFQ amounts that 
are generated by the aggregate QS holdings of all members of the 
cooperative for each fishery, region, sector, and A/B share categories 
except that all CVC and CPC QS held by the members of a cooperative 
will be converted to CVO and CPO IFQ, respectively.
    (5) Appeals. A cooperative or person who is adversely affected by 
an initial administrative determination (IAD) that is associated with 
the issuance of a crab cooperative IFQ permit may appeal the IAD using 
the appeals procedures described in Sec.  679.43.
    (e) Restrictions on fishing under a crab cooperative IFQ permit. 
The following restrictions govern the fishing for IFQ crab under a crab 
cooperative IFQ permit:
    (1) Maintenance of permit on board. A copy of a crab cooperative 
IFQ permit must be maintained on board any vessel that is being used to 
harvest crab under the permit.
    (2) Persons eligible to harvest crab under a cooperative IFQ 
permit. Only the following persons are eligible to harvest crab under a 
cooperative IFQ permit:
    (i) Cooperative members. Members of the cooperative to whom the IFQ 
permit is issued.
    (ii) Hired masters. Hired masters operating a vessel in which at 
least a 10 percent ownership share is held by a member of the 
cooperative to whom the IFQ permit is issued. Cooperatives wishing to 
employ a hired master must apply for and receive a Crab IFQ Hired 
Master Permit using the procedures described in Sec.  680.4(f).
    (3) Liability. Each member of a cooperative is responsible for 
ensuring that members of the cooperative and Crab IFQ hired masters of 
the cooperative comply with all regulations applicable to fishing for 
CR crab.
    (f) Transfers by members of a cooperative. The following 
requirements address transfers of QS, IFQ, PQS, and IPQ by members of a 
cooperative.
    (1) Transfer of QS by members of a cooperative. A member of a 
cooperative may buy or sell QS at any time using the transfer 
procedures described in Sec.  680.41. However, transfers of QS that 
occur after the June 30 deadline for cooperative IFQ permit 
applications will not be reflected in the type or amount of IFQ permit 
issued to the cooperative for the subsequent fishing season.
    (2) Transfer of individually held IFQ by members of a cooperative. 
A member of a cooperative may buy or sell individually held IFQ using 
the transfer procedures described in Sec.  680.41. However a member of 
a cooperative who holds any amount of IFQ loses the vessel use cap 
exemption for any vessel used to fish any amount of individually held 
IFQ.
    (3) Transfer of cooperative IFQ by members of a cooperative. A 
member of a cooperative may not buy or sell cooperative IFQ. 
Cooperative IFQ may only be transferred between two cooperatives.
    (4) Acquisition of PQS and IPQ by members of a cooperative. A 
member of a cooperative is prohibited from acquiring any amount of PQS 
or IPQ during the valid duration of the cooperative IFQ permit.
    (g) Transfers by crab harvesting cooperatives. The following 
requirements address transfers of QS, IFQ, PQS, and IPQ by crab 
harvesting cooperatives that have been issued cooperative IFQ permits.
    (1) Acquisition of QS, PQS, and IPQ prohibited. A crab harvesting 
cooperative that has been issued a cooperative IFQ permit is prohibited 
from acquiring any amount of QS, PQS, or IPQ for the valid duration of 
the cooperative IFQ permit. A crab harvesting cooperative that acquires 
any amount of QS, PQS, or IPQ becomes ineligible to receive a crab 
cooperative IFQ permit.
    (2) Transfer of individually held IFQ. A crab harvesting 
cooperative may acquire individually held IFQ using the transfer 
procedures described in Sec.  680.41. Any individually held IFQ 
acquired by a crab harvesting cooperative will be converted to 
cooperative IFQ when the transfer is processed by NMFS.
    (3) Transfer of cooperative IFQ. Cooperative IFQ may be transferred 
only between two crab harvesting cooperatives that have been issued 
cooperative IFQ permits using the transfer procedures described in 
Sec.  680.41. A crab harvesting cooperative is prohibited from 
transferring any amount of cooperative IFQ to any entity that is not a 
crab harvesting cooperative operating under a cooperative IFQ permit.
    (h) Inseason changes to cooperative membership. The following 
requirements address inseason changes to cooperative membership.
    (1) Eligible membership changes. A crab harvesting cooperative may 
add a new member if that person becomes eligible to join the 
cooperative through the acquisition of any amount of the QS upon which 
the cooperative's annual IFQ permit was based provided that the person 
acquiring the QS in question has been determined by NMFS to be eligible 
to hold IFQ. Likewise, a crab harvesting cooperative may remove a 
member if that person no longer holds any of the QS upon which the 
cooperative's annual IFQ permit was based.
    (2) Inseason membership changes are voluntary. A crab harvesting 
cooperative is not required to add or remove members during the fishing 
season to reflect inseason transfers of QS. Each cooperative is free to 
establish its own process for deciding whether or not to admit new 
members or to remove existing members during the fishing season to 
reflect changes in the ownership of QS. No cooperative is required to 
admit a new QS holder that the cooperative chooses not to admit, 
regardless of whether the person in question has acquired any amount of 
QS upon which the cooperative's annual IFQ is based. If a cooperative 
chooses to make inseason membership changes, then it must comply with 
Sec.  680.21(h)(3).
    (3) Application for an inseason change in cooperative membership. A 
crab harvesting cooperative must notify NMFS of any inseason changes to 
cooperative membership by submitting a revised Application for an 
Annual Crab Harvesting Cooperative IFQ Permit together with any revised 
supporting documents that are required to be submitted with the 
application. The revised Application for an Annual Crab Harvesting 
Cooperative IFQ Permit must be accompanied by a cover letter that

[[Page 63288]]

indicates the revisions that have been made. Upon approval of the 
membership change, NMFS will issue a revised annual cooperative IFQ 
permit that reflects the change in membership. A new member may not 
fish on behalf of a cooperative except as a crab IFQ hired master until 
NMFS issues a revised annual cooperative IFQ permit that reflects the 
change in membership.
    (4) Successors[hyphen]in[hyphen]interest. If a member of a 
cooperative dies (in the case of an individual) or dissolves (in the 
case of a business entity), the QS held by that person will be 
transferred to the legal successor[hyphen]in[hyphen]interest. However, 
the cooperative IFQs generated by that person's QS holdings remain 
under the control of the cooperative for the valid duration of the 
cooperative IFQ permit. Each cooperative is free to establish its own 
internal procedures for admitting a successor[hyphen]in[hyphen]interest 
during the fishing season to reflect the transfer of QS due to the 
death of or dissolution of a QS holder. These regulations do not 
require any cooperative to admit a successor[hyphen]in[hyphen]interest 
that the cooperative chooses not to admit. If a cooperative chooses to 
admit the successor[hyphen]in[hyphen]interest for membership, then the 
cooperative must comply with Sec.  680.21(h)(3).


Sec.  680.22  Sideboard protections for GOA groundfish fisheries.

    The regulations in this section restrict the owners of vessels with 
a history of participation in the Bering Sea snow crab (C. opilio) 
fishery from using the increased flexibility provided by the CR Program 
to expand their level of participation in GOA groundfish fisheries. 
These restrictions, commonly known as ``sideboards,'' limit directed 
fishing for GOA Pacific cod by such vessels to their aggregate 
historical levels and prohibit directed fishing in the GOA for all 
other groundfish species except sablefish.
    (a) Vessels and LLP licenses subject to sideboard restrictions. The 
sideboard fishing restrictions described in this section are based on a 
vessel's fishing history and apply both to the fishing vessel itself 
and to any LLP license generated by that vessel's fishing history. The 
criteria used to determine which vessels and LLP licenses are subject 
to GOA groundfish sideboard fishing restrictions are as follows:
    (1) Vessels subject to GOA groundfish sideboard directed fishing 
closures. Any vessel that NMFS has determined meets one or both of the 
following criteria is subject to GOA groundfish sideboard directed 
fishing closures issued under paragraph (e) of this section.
    (i) Any non[hyphen]AFA vessel that made a legal landing of Bering 
Sea snow crab (C. opilio) between January 1, 1996, and December 31, 
2000, that generated any amount of Bering Sea snow crab (C. opilio) 
fishery QS, and
    (ii) Any vessel named on an LLP license that was generated in whole 
or in part by the fishing history of a vessel meeting the criteria in 
paragraph (a)(1)(i) of this section.
    (2) Vessels prohibited from directed fishing for Pacific cod in the 
GOA. Any vessel that NMFS has determined meets either of the following 
two criteria is prohibited from directed fishing for Pacific cod in the 
GOA:
    (i) Any vessel subject to GOA groundfish sideboard closures under 
paragraph (a)(1)(i) of this section that landed less than 50 mt 
(110,231 lb) of groundfish harvested from the GOA between January 1, 
1996, and December 31, 2000, and
    (ii) Any vessel named on an LLP license that was generated in whole 
or in part by the fishing history of a vessel meeting the criteria in 
paragraph (a)(2)(i) of this section.
    (3) Vessels exempt from Pacific cod sideboard closures in the GOA. 
Any vessel that NMFS has determined meets one or both of the following 
criteria is exempt from sideboard directed fishing closures for Pacific 
cod in the GOA:
    (i) Any vessel subject to GOA groundfish closures under paragraph 
(a)(1)(i) of this section that landed less than 100,000 lb (45,359 kg) 
of Bering Sea snow crab (C. opilio) and more than 500 mt (1,102,311 lb) 
of Pacific cod from the GOA between January 1, 1996, and December 31, 
2000; and
    (ii) Any vessel named on an LLP license that was generated in whole 
or in part by the fishing history of a vessel meeting the criteria in 
paragraph (a)(3)(i) of this section.
    (b) Notification of affected vessel owners and LLP licence holders. 
After NMFS determines which vessels and LLP licenses meet the criteria 
described in paragraph (a) of this section, NMFS will inform each 
vessel owner and LLP license holder in writing of the type of sideboard 
restriction and issue a revised Federal fisheries permit and/or LLP 
license that displays the restriction on the face of the permit or 
license.
    (c) Appeals. A vessel owner or LLP license holder who believes that 
NMFS has incorrectly identified his or her vessel or LLP license as 
meeting the criteria for a GOA groundfish sideboard restriction may 
request reconsideration. All requests for reconsideration must be 
submitted in writing to the RAM Division, Alaska Region, NMFS, together 
with any documentation or evidence supporting the request. If the 
request for reconsideration is denied, affected persons may appeal 
using the procedures described at Sec.  680.43.
    (d) Determination of GOA groundfish sideboard ratios. Sideboard 
ratios for each GOA groundfish species other than sablefish, species 
group, season, and area for which annual specifications are made, are 
established according to the following formulas:
    (1) Pacific cod. The sideboard ratios for Pacific cod are 
calculated by dividing the aggregate retained catch of Pacific cod by 
vessels that are subject to sideboard directed fishing closures under 
paragraph (a)(1) of this section and that do not meet the criteria in 
paragraphs (a)(2) or (a)(3) of this section and by the total retained 
catch of Pacific cod from the GOA by all groundfish vessels between 
1996 and 2000.
    (2) Groundfish other than Pacific cod. The sideboard ratios for 
groundfish species and species groups other than Pacific cod are 
calculated by dividing the aggregate landed catch by vessels subject to 
sideboard directed fishing closures under paragraph (a)(1) of this 
section by the total landed catch of that species by all groundfish 
vessels between 1996 and 2000.
    (e) Conversion of sideboard ratios into annual harvest limits. NMFS 
will convert sideboard ratios into annual harvest limits according to 
the following procedures.
    (1) Annual harvest limits. Annual harvest limits for each 
groundfish species will be established by multiplying the sideboard 
ratios calculated under paragraph (d) of this section by the interim 
and final TACs in each area for which a TAC is specified. If a TAC is 
further apportioned by season, the sideboard harvest limit also will be 
apportioned by season in the same ratio as the overall TAC. The 
resulting harvest limits expressed in metric tons will be published in 
the annual GOA groundfish harvest specification notices.
    (2) Sideboard directed fishing allowance. If the Regional 
Administrator determines that a harvest limit for a species or species 
group has been or will be reached, the Regional Administrator may 
establish a sideboard directed fishing allowance for the species or 
species group applicable only to the group of crab vessels to which the 
sideboard limit applies.
    (3) If the Regional Administrator determines that a harvest limit 
is insufficient to support a directed fishery for that species or 
species group, then the Regional Administrator may set the sideboard 
directed fishing allowance at zero for that species or species group.

[[Page 63289]]

    (4) Directed fishing closures. Upon attainment of a sideboard 
directed fishing allowance, the Regional Administrator will publish 
notification in the Federal Register prohibiting directed fishing for 
the species or species group in the specified subarea, regulatory area, 
or district. A directed fishing closure effective for the duration of 
the fishing year or season.


Sec.  680.23  Equipment and operational requirements.

    (a) Catcher Vessel requirements. A catcher vessel used to harvest 
CR crab must:
    (1) Carry and use a VMS as described in paragraph (d) of this 
section.
    (2) Land all retained crab to an RCR operating under an approved 
catch monitoring plan as described in paragraph (g) of this section.
    (b) Catcher/Processor requirements. A catcher/processor used to 
harvest CR crab must:
    (1) Carry and use a VMS as described in paragraph (d) of this 
section.
    (2) Weigh all retained crab to be processed on board, in its raw 
form, on a scale approved by NMFS as described in paragraph (e) of this 
section.
    (3) Land all retained crab not processed on board at an RCR.
    (4) Land all product processed on board at a shoreside location in 
the United States accessible by road or regularly scheduled air service 
and weigh that product on a scale approved by the State where the 
product is landed.
    (5) Provide an approved observer work area that meets the 
requirements in paragraph (h) of this section.
    (c) RCR requirements. An RCR must:
    (1) Ensure that all CR crab landings are weighed on a scale 
approved by the State where the landing takes place.
    (2) Ensure that all crab landing and weighing be conducted as 
specified in an approved crab monitoring plan as described in paragraph 
(g) of this section, and that a copy of the crab monitoring plan is 
made available to NMFS personnel or authorized officer upon demand.
    (d) Vessel Monitoring System (VMS) requirements--(1) General 
requirements. General VMS requirements concerning the approval and 
installation of VMS components and the responsibilities of vessel 
owners and operators are detailed at Sec.  679.28(f)(1) through (5).
    (2) VMS Transmission Requirements. A vessel's transmitter must be 
transmitting if:
    (i) The vessel is operating in any reporting area (see definitions 
at Sec.  679.2) off Alaska; and
    (ii) The vessel has crab pots or crab pot hauling equipment, or a 
crab pot launcher onboard; and
    (iii) The vessel has received a Federal Crab Vessel Permit at any 
time during the crab fishing year.
    (e) Scales approved by NMFS. To be approved by NMFS, a scale used 
to weigh crab at sea must meet the type evaluation and initial 
inspection requirements set forth in Sec.  679.28(b)(1) and (2). Once a 
scale is installed on a vessel and approved by NMFS for use, it must be 
reinspected annually as described in Sec.  679.28(b)(2) and must be 
tested daily and meet the maximum permissible error (MPE) requirements 
described in paragraph (e)(1) of this section.
    (1) At[hyphen]sea scale tests. To verify that the scale meets the 
MPEs specified in this paragraph, the vessel operator must test each 
scale or scale system used to weigh CR crab one time during each 
24[hyphen]hour period when use of the scale is required. The vessel 
owner must ensure that these tests are performed in an accurate and 
timely manner.
    (i) Belt scales. The MPE for the daily at[hyphen]sea scale tests is 
plus or minus 3 percent of the known weight of the test material. The 
scale must be tested by weighing at least 400 kg (882 lb) of crab or an 
alternative material supplied by the scale manufacturer on the scale 
under test. The known weight of the test material must be determined by 
weighing it on a platform scale approved for use under Sec.  679.28 
(b)(7).
    (ii) Automatic hopper scales. An automatic hopper scale must be 
tested at its minimum and maximum capacity with approved test weights. 
Test weights must be placed in the bottom of the hopper unless an 
alternative testing method is approved by NMFS. The MPE for the daily 
at[hyphen]sea scale tests is plus or minus 2 percent of the weight of 
the approved test weights.
    (iii) Platform scales used for observer sampling. A platform scale 
used for observer sampling must be tested at 10, 25, and 50 kg (or 20, 
50, and 100 lb if the scale is denominated in pounds) using approved 
test weights. The MPE for the daily at[hyphen]sea scale test is plus or 
minus 0.5 percent if the scale is used to determine the known weight of 
test material for the purpose of testing a belt scale. If the scale is 
not used for that purpose, the MPE for the daily at[hyphen]sea scale 
test is plus or minus 1 percent.
    (iv) Approved test weights. Each test weight must have its weight 
stamped on or otherwise permanently affixed to it. The weight of each 
test weight must be annually certified by a National Institute of 
Standards and Technology approved metrology laboratory or approved for 
continued use by the NMFS authorized inspector at the time of the 
annual scale inspection.
    (v) Requirements for all scale tests. (A) Notify the observer at 
least 15 minutes before the time that the test will be conducted, and 
conduct the test while the observer is present.
    (B) Conduct the scale test and record the following information on 
the at[hyphen]sea scale test report form:
    (1) Vessel name;
    (2) Month, day, and year of test;
    (3) Time test started to the nearest minute;
    (4) Known weight of test weights;
    (5) Weight of test weights recorded by scale;
    (6) Percent error as determined by subtracting the known weight of 
the test weights from the weight recorded on the scale, dividing that 
amount by the known weight of the test weights, and multiplying by 100; 
and
    (7) Sea conditions at the time of the scale test.
    (C) Maintain the test report form on board the vessel until the end 
of the crab fishing year during which the tests were conducted, and 
make the report forms available to observers, NMFS personnel, or an 
authorized officer. In addition, the vessel owner must retain the scale 
test report forms for 3 years after the end of the crab fishing year 
during which the tests were performed. All scale test report forms must 
be signed by the vessel operator.
    (2) Scale maintenance. The vessel owner must ensure that the vessel 
operator maintains the scale in proper operating condition throughout 
its use, that adjustments made to the scale are made so as to bring the 
performance errors as close as practicable to a zero value, and that no 
adjustment is made that will cause the scale to weigh inaccurately.
    (3) Printed reports from the scale. The vessel owner must ensure 
that the printed reports are provided as required by this paragraph. 
Printed reports from the scale must be maintained on board the vessel 
until the end of the year during which the reports were made and be 
made available to NMFS or NMFS authorized personnel. In addition, the 
vessel owner must retain printed reports for 3 years after the end of 
the year during which the printouts were made.
    (i) Reports of catch weight and cumulative weight. Reports must be 
printed at least once every 24 hours prior to submitting a CR crab 
landing report as described in Sec.  680.5. Reports must also be 
printed before any information stored in the scale computer memory is 
replaced. Scale

[[Page 63290]]

weights must not be adjusted by the scale operator to account for the 
perceived weight of water, mud, debris, or other materials. Scale 
printouts must show:
    (A) The vessel name and Federal fisheries or processor permit 
number;
    (B) The weight of each load in the weighing cycle (hopper scales 
only);
    (C) The date and time the information was printed;
    (D) The total amount weighed since the last printout was made; and
    (E) The total cumulative weight of all crab or other material 
weighed on the scale.
    (ii) Printed report from the audit trail. The printed report must 
include the information specified in sections 2.3.1.8, 3.3.1.7, and 
4.3.1.8 of appendix A to 50 CFR 679. The printed report must be 
provided to the authorized scale inspector at each scale inspection and 
must also be printed at any time upon request of NMFS staff or other 
NMFS[hyphen]authorized personnel.
    (iii) Platform scales used for observer sampling. A platform scale 
used for observer sampling is not required to produce a printed record 
unless that scale is also used to obtain raw weight for a CR crab 
landing report.
    (4) Scale installation requirements. Unless otherwise approved by 
NMFS, a scale used to obtain raw weight for a CR crab landing report 
must be installed such that:
    (i) From the location where the observer samples unsorted crab, the 
observer can ensure that all crab are being weighed;
    (ii) The scale may not be installed in a manner that facilitates 
bypassing. It must not be possible for the scale inspector and an 
assistant to bypass the scale with 100 kg (220 lb) of test material in 
less than 20 seconds.
    (f) Scales approved by the state. Scale requirements in this 
paragraph are in addition to those requirements set forth by the State 
in which the scale is approved, and nothing in this paragraph may be 
construed to reduce or supersede the authority of the State to 
regulate, test, or approve scales within the State. Scales used to 
weigh CR crab that are also required to be approved by the State must 
meet the following requirements:
    (1) Verification of approval. The scale must display a valid State 
sticker indicating that the scale was inspected and approved within the 
previous 12 months.
    (2) Visibility. An RCR must ensure that the scale and scale display 
are visible simultaneously. NMFS personnel or NMFS authorized 
personnel, including observers, must be allowed to observe the weighing 
of crab on the scale and be allowed to read the scale display at all 
times.
    (3) Printed scale weights. (i) An RCR must ensure that printouts of 
the scale weight of each delivery or offload are made available to NMFS 
personnel or to NMFS authorized personnel, including observers, at the 
time printouts are generated. An RCR must maintain printouts on site 
until the end of the fishing year during which the printouts were made 
and make them available upon request by an authorized officer for 3 
years after the end of the fishing year during which the printout was 
made.
    (ii) A scale used to weigh any portion of a landing of CR crab or 
an offload of CR crab product must produce a printed record for each 
landing, or portion of each landing, weighed on that scale. The printed 
record must include:
    (A) The RCR's name;
    (B) The weight of each load in the weighing cycle;
    (C) The total weight of crab in each landing, or portion of the 
landing that was weighed on that scale.
    (D) The date and time the information is printed; and
    (E) The name and ADF&G vessel registration number of the vessel 
making the delivery. The scale operator may write this information on 
the scale printout in pen at the time of landing.
    (4) Inseason scale testing. Scales used to weigh CR crab must be 
tested by RCR personnel when testing is requested by NMFS[hyphen]staff 
or by NMFS[hyphen]authorized personnel.
    (i) Inseason testing criteria. To pass an inseason test, NMFS staff 
or NMFS[hyphen]authorized personnel will verify that the scale display 
and printed information are clear and easily read under all conditions 
of normal operation, that weight values are visible on the display 
until the value is printed, and that the scale does not exceed the 
maximum permissible errors specified in the following table:

------------------------------------------------------------------------
                                                 Maximum Error in Scale
         Test Load in Scale Divisions                  Divisions
------------------------------------------------------------------------
(A) 0[dash]500                                 1
------------------------------------------------------------------------
(B) 501[dash]2,000                             2
------------------------------------------------------------------------
(C) 2,001[dash]4,000                           3
------------------------------------------------------------------------
(D) >4,000                                     4
------------------------------------------------------------------------

    (ii) Test weight requirements. Scales must be tested with the 
amount and type of weight specified for each scale type in the 
following tables under paragraphs (f)(4)(ii)(A) through (f)(4)(ii)(D) 
of this section:
    (A) Automatic hopper 0 to 150 kg (0 to 300 lb) capacity.

------------------------------------------------------------------------
            Certified Test Weights                Other Test Material
------------------------------------------------------------------------
(1) Minimum weighment or 10 kg (20 lb),        Minimum
 whichever is greater
------------------------------------------------------------------------
(2) Maximum                                    Maximum
------------------------------------------------------------------------

    (B) Automatic hopper > 150 kg (300 lb) capacity.

------------------------------------------------------------------------
            Certified Test Weights                Other Test Material
------------------------------------------------------------------------
(1) Minimum weighment or 10 kg (20 lb),        Minimum
 whichever is greater
------------------------------------------------------------------------
(2) 25 percent of maximum of 150 kg (300 lb),  Maximum
 whichever is greater
------------------------------------------------------------------------

    (C) Platform, flatbed or hanging scales less than 150 kg (300 lb) 
capacity.

------------------------------------------------------------------------
            Certified Test Weights                Other Test Material
------------------------------------------------------------------------
(1) 10 kg (20 lb)                              Not Acceptable
------------------------------------------------------------------------
(2) Midpoint                                   Not Acceptable
------------------------------------------------------------------------
(3) Maximum                                    Not Acceptable
------------------------------------------------------------------------

    (D) Platform, flatbed or hanging scales > 150 kg (300 lb) capacity.

------------------------------------------------------------------------
            Certified Test Weights                Other Test Material
------------------------------------------------------------------------
(1) 10 kg (20 lb)                              Not Acceptable
------------------------------------------------------------------------
(2) 12.5 percent of maximum or 75 kg (150      50 percent of maximum or
 lb), whichever is greater                      75 kg (150 lb),
                                                whichever is greater
------------------------------------------------------------------------
(3) 25 percent of maximum or 150 kg (300 lb),  75 percent of maximum or
 whichever is greater                           150 kg (300 lb),
                                                whichever is greater
------------------------------------------------------------------------

    (iii) Certified test weights. An RCR must ensure that there are 
sufficient test weights on[hyphen]site to test each scale used to weigh 
CR crab. Each test weight used for inseason scale testing must have its 
weight stamped on or otherwise permanently affixed to it. The weight of 
each test weight must be certified by a National Institute of Standards 
and Technology approved metrology laboratory every 2 years.
    (iv) Other test material. When permitted in paragraph (f)(4)(ii) of 
this section, a scale may be tested with test material other than 
certified test weights.
    (g) Crab Monitoring Plans (CMP). A CMP is a plan submitted by an 
RCR for

[[Page 63291]]

each location or processing vessel where the RCR wishes to take 
deliveries of CR crab. The CMP must detail how the RCR will meet the 
catch monitoring standards detailed in paragraph (g)(5) of this 
section. An RCR that processes only CR crab harvested under a CPO or 
CPC IFQ permit is not required to prepare a CMP.
    (1) CMP Approval. NMFS will approve a CMP if it meets all the 
performance standards specified in paragraph (g)(5) of this section. 
The location or vessel identified in the CMP may be inspected by NMFS 
prior to approval of the CMP to ensure that the location conforms to 
the elements addressed in the CMP. If NMFS disapproves a CMP, the plant 
owner or manager may resubmit a revised CMP or file an administrative 
appeal as set forth under the administrative appeals procedures 
described in Sec.  679.43.
    (2) Inspection scheduling. The time and place of a CMP inspection 
may be arranged by submitting a written request for an inspection to 
NMFS, Alaska Region. An inspection must be requested no less than 10 
working days before the requested inspection date. NMFS staff will 
conduct CMP inspections in any port located in the United States that 
can be reached by regularly scheduled commercial air service. The 
inspection request must include:
    (i) Name and signature of the person submitting the application and 
the date of the application;
    (ii) Address, telephone number, facsimile number, and e[hyphen]mail 
address (if available) of the person submitting the application; and
    (iii) A proposed CMP detailing how the RCR will meet each of the 
standards in paragraph (g)(5) of this section.
    (3) Approval period. NMFS will approve a CMP for 1 year if it meets 
the performance standards specified in paragraph (e)(2) of this 
section. An owner or manager must notify NMFS in writing if changes are 
made in plant operations or layout that do not conform to the CMP.
    (4) Changing an approved CMP. An RCR may change an approved CMP by 
submitting a CMP addendum to NMFS. Depending on the nature and 
magnitude of the change requested, NMFS may require a CMP inspection as 
described in paragraph (g)(2) of this section. A CMP addendum must 
contain:
    (i) Name and signature of the person submitting the addendum;
    (ii) Address, telephone number, facsimile number and e[hyphen]mail 
address (if available) of the person submitting the addendum; and
    (iii) A complete description of the proposed CMP change.
    (5) CMP standards--(i) Crab sorting and weighing requirements. All 
crab, including crab parts and crab that are dead or otherwise 
unmarketable, delivered to the RCR must be sorted and weighed by 
species. The CMP must detail how and where crab are sorted and weighed.
    (ii) Scales used for weighing crab. The CMP must identify by serial 
number each scale used to weigh crab and describe the rationale for its 
use.
    (iii) Scale testing procedures. Scales identified in the CMP must 
be accurate within the limits specified in paragraph (f)(4)(i) of this 
section. For each scale identified in the CMP a testing plan must be 
developed that:
    (A) Describes the procedure the plant will use to test the scale;
    (B) Lists the test weights and equipment required to test the 
scale;
    (C) Lists where the test weights and equipment will be stored; and
    (D) Lists the names of the personnel responsible for conducting the 
scale testing.
    (iv) Printed record. An RCR must ensure that the scale produces a 
complete and accurate printed record of the weight of each species in a 
landing. All of the crab in a delivery must be weighed on a scale 
capable of producing a complete printed record as described in 
paragraph (e)(3) of this section. A printed record of each landing must 
be printed before the RCR submits a CR crab landing report.
    (v) Observation area. Each CMP must designate an observation area. 
The observation area is a location designated on the CMP where an 
individual may monitor the offloading and weighing of crab. The 
observation area must meet the following standards:
    (A) Access to the observation area. The observation area must be 
freely accessible to observer, NMFS staff or enforcement aides at any 
time during the effective period of the CMP.
    (B) Monitoring the offloading and weighing of crab. From the 
observation area, an individual must have an unobstructed view or 
otherwise be able to monitor the entire offload of crab between the 
first location where crab are removed from the boat and a location 
where all sorting has taken place and each species has been weighed.
    (C) Other Requirements. The observation area must be sheltered from 
the weather and not exposed to unreasonable safety hazards.
    (vi) Plant liaison. The CMP must designate a plant liaison. The 
plant liaison is responsible for:
    (A) Orienting new observers, NMFS staff and enforcement aides to 
the plant;
    (B) Assisting in the resolution of observer concerns; and
    (C) Informing NMFS if changes must be made to the CMP.
    (vii) Drawing to scale of delivery location. The CMP must be 
accompanied by a drawing to scale of the delivery location or vessel 
showing:
    (A) Where and how crab are removed from the delivering vessel;
    (B) The observation area;
    (C) The location of each scale used to weigh crab; and
    (D) Each location where crab is sorted.
    (viii) Single geographic location. All offload and weighing 
locations detailed in a CMP must be located on the same vessel or in 
the same geographic location. If a CMP describes facilities for the 
offloading of vessels at more than one location, it must be possible to 
see both locations simultaneously.
    (h) Catcher/processor Observer Work Areas. A crab catcher/processor 
must provide 2 observer work areas at any time when the vessel is 
catching or processing CR crab. All of the space and equipment required 
for the work station must be available to the observer at all times 
while an observer work area is required. A vessel required to provide 
observer work areas must:
    (1) Provide an observer work area for sampling unsorted crab. The 
work area must be no less than 6 square meters and not less than 1 
meter on each side. The work area must be located within 3 meters of 
where the vessel crew sort crab and must provide unobstructed access to 
that crab.
    (2) Provide an observer work area for sampling retained crab. The 
work area must be no less than 1 meter on each side. The work area must 
be located downstream from the scale used to weigh total catch and 
upstream from the area where crab are butchered.
    (3) The observer work area for sampling retained crab must be 
provided with a NMFS[hyphen]approved platform scale located within 5 
meters of the work area. Clear and unobstructed passage must be 
provided between the scale and the observer work area. The scale must 
be accompanied by approved test weights sufficient to test the scale at 
10, 25, and 50 kg (or 25, 50, and 100 lb if scale is denominated in 
lb). The scale may be used by vessel crew but must be available to the 
observer at all times.
    (4) Both observer work areas must be protected from extreme weather 
and unreasonable safety hazards.
    (5) Vessel crew may use the observer work areas, but the entire 
area must be

[[Page 63292]]

available to the observer whenever the observer is working in the area.
    (6) The vessel owner must prepare a diagram, drawn to scale, 
showing the location of both observer work areas. The diagram must be 
retained on board the vessel whenever the vessel is harvesting or 
processing crab quota.


Sec.  680.30  [Reserved]

Subpart C--Individual Fishing Quota Management Measures


Sec.  680.40  Quota Share (QS), Processor QS (PQS), Individual Fishing 
Quota (IFQ), and Individual Processor Quota (IPQ) Issuance.

    (a) Crab QS and Crab QS Fisheries. (1) With the exception of the 
WAI golden king crab fishery, the Regional Administrator shall annually 
apportion 10 percent of the TAC specified by the State of Alaska for 
each of the fisheries described in Table 1 to this part to the Western 
Alaska CDQ program. Ten percent of the TAC in the Western Aleutian 
Islands golden king crab fishery will be allocated to the Adak 
community entity. The remaining TACs for the crab QS fisheries will be 
apportioned for use by qualified QS holders in each fishery.
    (2) Crab harvested and retained in each crab QS fishery may be 
harvested and retained only by persons holding the appropriate crab IFQ 
for that crab QS fishery.
    (3) Official Crab Rationalization Record. The official crab 
rationalization record will be used to determine the amount of QS that 
is to be allocated for each crab QS fishery. The official crab 
rationalization record is presumed to be correct. An applicant for QS 
has the burden to prove otherwise. For the purposes of creating the 
official crab rationalization record the Regional Administrator will 
presume the following:
    (i) An LLP license is presumed to have been used onboard the same 
vessel from which that LLP is derived, unless documentation is provided 
establishing otherwise.
    (ii) If more than one person is claiming legal landings or legal 
processing activities during the same time at the same processing 
facility or onboard the same vessel, then each person eligible to 
receive QS or PQS based on those legal landings or legal processing 
activities will receive any QS or PQS issued divided in equal 
proportion among all eligible recipients for that time period unless 
the applicants can provide written documentation establishing an 
alternative means for distributing the QS or PQS resulting from the 
activities during that time period.
    (b) QS Sectors and Regional Designations--(1) General. The Regional 
Administrator shall initially assign to qualified persons, crab QS that 
are specific to the crab QS fisheries defined in paragraph (a)(1) of 
this section. The crab QS amount issued will be based on legal landings 
made on vessels authorized to participate in those fisheries in four QS 
sectors:
    (i) Catcher Vessel Owner (CVO) QS shall be initially issued to 
qualified persons defined in paragraph (b)(3) of this section based on 
legal landings of unprocessed crab. CVO QS shall yield annual IFQ 
designated as defined under paragraph (h)(2) of this section.
    (ii) Catcher Vessel Crew (CVC) QS shall be initially issued to 
qualified persons defined in paragraph (b)(3) of this section based on 
legal landings of unprocessed crab. CVC QS shall yield annual IFQ 
designated as CVC as defined under paragraph (h)(3) of this section. 
After July 1, 2008, CVC QS shall yield an annual IFQ of CVC Class A or 
CVC Class B as defined under paragraph (h)(2) of this section.
    (iii) Catcher/Processor Owner (CPO) QS shall be initially issued to 
qualified persons defined in paragraph (b)(3) of this section based on 
legal landings of crab that were harvested and processed on the same 
vessel. CPO QS shall yield annual IFQ designated as CPO as defined 
under paragraph (h)(4) of this section.
    (iv) Catcher/Processor Crew (CPC) QS shall be initially issued to 
qualified persons defined in paragraph (b)(3) of this section based on 
legal landings of crab that were harvested and processed on the same 
vessel. CPC QS shall yield annual IFQ designated as CPC as defined 
under paragraph (h)(5) of this section.
    (2) Regional Designations. (i) Regional designations apply to:
    (A) North QS if the legal landings that gave rise to the QS for a 
crab QS fishery were landed in the Bering Sea subarea north of 
56[deg]20' N. lat.; or
    (B) South QS if the legal landings that gave rise to the QS for a 
crab QS fishery were not landed in the North Region;
    (1) CVO QS allocated to the WAI crab QS fishery; and
    (2) CVC QS for the WAI crab QS fishery prior to July 1, 2008.
    (C) West QS for a portion of the QS allocated to the WAG crab QS 
fishery subject to the provisions under Sec.  680.40(c)(4);
    (ii) Regional designations do not apply (Undesignated QS) to:
    (A) Crab QS for the BST crab QS fishery;
    (B) Crab QS for that portion of the WAG QS fishery not regionally 
designated for the West region;
    (C) CVC QS prior to July 1, 2008;
    (D) CPO QS unless that QS is transferred to the CVO QS sector, in 
which case the regional designation is made by the recipient of the 
resulting CVO QS at the time of transfer; and
    (E) CPC QS.
    (iii) The specific regional designations that apply to each of the 
crab QS fisheries are specified in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                                 Undesignated
          Crab QS Fishery               North Region       South Region       West Region           Region
----------------------------------------------------------------------------------------------------------------
(A) EAG                              X                  X                  .................  ..................
----------------------------------------------------------------------------------------------------------------
(B) WAG                              .................  .................  X                  X
----------------------------------------------------------------------------------------------------------------
(C) BST                              .................  .................  .................  X
----------------------------------------------------------------------------------------------------------------
(D) BSS                              X                  X                  .................  ..................
----------------------------------------------------------------------------------------------------------------
(E) BBR                              X                  X                  .................  ..................
----------------------------------------------------------------------------------------------------------------
(F) PIK                              X                  X                  .................  ..................
----------------------------------------------------------------------------------------------------------------
(G) SMB                              X                  X                  .................  ..................
----------------------------------------------------------------------------------------------------------------
(H) WAI                              .................  X                  .................  ..................
----------------------------------------------------------------------------------------------------------------


[[Page 63293]]

    (3) Qualified person means, for the purposes of QS issuance, a 
person, as defined in Sec.  679.2, who at the time of application for 
QS meets the following criteria for each of the QS sectors:
    (i) CVO QS. Holds one or more permanent, fully transferable crab 
LLP licenses and is a citizen of the United States;
    (ii) CPO QS. (A) Holds one or more permanent, fully transferable 
crab LLP licenses with a Catcher/Processor designation and is a citizen 
of the United States;
    (B) Harvested and processed at sea any crab species in any BSAI 
crab fishery during the years 1998 or 1999.
    (iii) CVC QS and CPC QS. (A) Is an individual who is a citizen of 
the United States, or his or her successor[hyphen]in[hyphen]interest if 
that individual is deceased;
    (B) Has historical participation in the fishery demonstrated by 
being the individual named on a State of Alaska Interim Use Permit who 
made at least one legal landing per year for any 3 qualifying years 
under that permit based on data from fish tickets maintained by the 
State of Alaska. The qualifying years are described in Column C of 
Table 7 to this part.
    (C) Has recent participation in the fishery demonstrated by being 
the individual named on a State of Alaska Interim Use Permit who made 
at least one legal landing under that permit in any 2 of 3 seasons 
based on data from fish tickets maintained by the State of Alaska. 
Those seasons are defined in Column D of Table 7 to this part; except 
that the requirement for recent participation does not apply to be a 
qualified individual to receive QS if:
    (1) The legal landings that qualify the individual for QS in the 
PIK crab QS fishery were made from a vessel that is less than 60 feet 
length overall; or
    (2) If the individual who is otherwise eligible to receive an 
initial issuance of QS died while working as part of a harvesting crew 
in any U.S. commercial fishery.
    (4) Qualification for Initial Allocation of QS--(i) Qualifying 
Year. The qualifying years for each crab QS fishery are described in 
Column B of Table 7 to this part.
    (ii) Legal landing of crab means, for the purpose of initial 
allocation of QS, crab harvested during the qualifying years specified 
in Column B of Table 7 to this part and landed in compliance with state 
and Federal permitting, landing, and reporting regulations in effect at 
the time of the landing.
    (A) Legal landings exclude any deadloss, fishing conducted under a 
scientific activity permit, or the fishery conducted under the Western 
Alaska CDQ program.
    (B) Landings made onboard a vessel that gave rise to a crab LLP 
licence or made under the authority of an LLP license are 
non[hyphen]severable from the crab LLP license until QS has been issued 
for those legal landings.
    (C) Landings may only be used once for each QS sector for the 
purposes of allocating QS.
    (D) Landings made from vessels which are used for purposes of 
receiving compensation through the BSAI Crab Capacity Reduction Program 
may not be used for the allocation of CVO QS or CPO QS.
    (E) Legal landings for purposes of allocating QS for a crab QS 
fishery only include those landings that resulted in the issuance of an 
LLP license endorsed for that crab QS fishery, or landings that were 
made in that crab QS fishery under the authority of an LLP license 
endorsed for that crab QS fishery.
    (iii) Documentation. Evidence of legal landings shall be limited to 
State of Alaska fish tickets.
    (c) Calculation of QS allocation--(1) General. (i) For each 
permanent, fully transferable crab LLP license under which an applicant 
applies, CVO and CPO QS will be based on legal landings that resulted 
in the issuance of that license or from legal landings that were made 
under the authority of that license.
    (ii) For each State of Alaska Interim Use Permit under which an 
applicant applies for CVC QS or CPC QS, the initial allocation of QS 
will be based on the legal landings that were made under the authority 
of that permit.
    (2) Computation for Initial Issuance of QS. (i) Based on the 
official crab rationalization record the Regional Administrator shall 
derive the annual harvest denominator (AHD) that represents the amount 
of legally landed crab in each crab QS fishery in each qualifying year 
as established in column B of Table 7 to this part.
    (ii) The initial QS pool is described in Table 8 to this part.
    (iii) A person's initial allocation of QS shall be based on a 
percentage of the legal landings for the applicable sector in each crab 
QS fishery:
    (A) Associated with crab LLP licenses held by the applicant for CVO 
or CPO QS; or
    (B) Authorized under a State of Alaska Interim Use Permit held by 
the applicant for CVC or CPC QS.
    (iv) As shown in the formulas under this paragraph (c)(2)(iv), the 
allocation of CVO and CPO QS for each crab QS fishery ``f'' based on 
each fully transferable LLP license ``l'' held by a qualified person 
shall be calculated by the Regional Administrator as follows:
    (A) Sum legal landings for each qualifying year, as described in 
Column B of Table 7 to this part, and divide that amount by the AHD for 
that year as follows:
    ([sum] legal landingslf / AHDf) x 100 = 
Percentage of the AHDlf
    (B) In those fisheries where only a subset of the qualifying 
years are applied, the Regional Administrator will use the years that 
yield the highest percentages of each AHD as calculated in paragraph 
(c)(2)(iv)(A) of this section.
    (C) Sum the highest percentages of the AHD's for that license as 
calculated under paragraph (c)(2)(iv)(B) of this section and divide by 
the number in Column E of Table 7 to this part (Subset of Qualifying 
Years). This yields the Average Percentage as presented in the 
following equation:
    [sum] Percentages of the AHDlf / Subset of Qualifying 
Yearsf = Average Percentagelf
    (D) Divide the Average percentage in paragraph (c)(2)(iv)(C) 
of this section for a license and fishery by the Sum of all Average 
Percentages for all licenses for that fishery as presented in the 
following equation:
    Average Percentagelf / [sum] Average 
Percentagesf = Percentage of the Total Percentageslf
    (E) Multiply the Percentage of the Total Percentages in 
paragraph (c)(2)(iv)(E) of this section by the Initial QS Pool as 
described in Table 8 to this part. This yields the unadjusted number of 
QS units derived from a license for a fishery.
    (F) Multiply the unadjusted number of QS units in paragraph 
(c)(2)(iv)(E) of this section by 97 percent. This yields the number of 
QS units to be allocated.
    (G) Determine the percentage of legal landings in the subset of 
qualifying years associated with a LLP license with a catcher/processor 
designation that were processed on that vessel and multiply the amount 
calculated in paragraph (c)(2)(iv)(F) of this section by this 
percentage. This yields the amount of CPO QS to be allocated.
    (H) Determine the percentage of legal landings in the subset of 
qualifying years associated with a LLP license that were not processed 
on that vessel and multiply the amount calculated in paragraph 
(c)(2)(iv)(F) of this section by this percentage. This yields the 
amount of CVO QS to be allocated.
    (I) Determine the percentage of legal landings associated with an 
LLP license in the subset of qualifying years that were delivered in 
each region as defined in Sec.  680.40(b)(2). The amount calculated in 
paragraph (c)(2)(iv)(H) of this section is multiplied by the percentage 
for each region.

[[Page 63294]]

    (J) The percentage calculated in paragraph (c)(2)(iv)(I) of this 
section may be adjusted according to the provisions at paragraphs 
(c)(3) and (c)(4) of this section.
    (v) As shown in the formulas under this paragraph (c)(2)(v), the 
allocation of CVC and CPC QS for each crab QS fishery ``f'' based on 
each State of Alaska Interim Use Permit ``i'' held by each qualified 
person shall be calculated by the Regional Administrator as follows:
    (A) Sum legal landings for each qualifying year as described in 
Column C of Table 7 to this part and divide that amount by the AHD for 
that year using the following equation:
    ([sum] legal landingsif / AHDf) x 100 = 
Percentage of the AHDif
    (B) In those fisheries where only a subset of the qualifying 
years are applied, the Regional Administrator will use the years that 
yield the highest percentages of the AHD as calculated in paragraph 
(c)(2)(v)(A) of this section.
    (C) Sum the highest percentages of the AHDs for that license 
calculated under paragraph (c)(2)(v)(B) of this section and divide by 
the number in Column E of Table 7 to this part (Subset of Qualifying 
Years). This yields the Average Percentage as presented in the 
following equation:
    [sum] Percentages of the THDlf / Subset of Qualifying 
Yearsf = Average Percentageif
    (D) Divide the Average Percentage in paragraph (c)(2)(v)(C) 
of this section for a permit and fishery by the Sum of all Average 
Percentages for all permits for that fishery as presented in the 
following equation:
    Average Percentageif / [sum] Average 
Percentagesf = Percentage of the Total Percentagesif
    (E) Multiply the Percentage of the Total Percentages in 
paragraph (c)(2)(v)(E) of this section by the Initial QS Pool as 
described in Table 8 to this part. This yields the unadjusted number of 
QS units derived from a permit for a fishery.
    (F) Multiply the unadjusted number of QS units in paragraph 
(c)(2)(v)(E) of this section by 3 percent. This yields the number of QS 
units to be allocated.
    (G) Determine the percentage of legal landings in the subset of 
qualifying years associated with a permit that were processed on that 
vessel and multiply the amount calculated in paragraph (c)(2)(v)(F) of 
this section by this percentage. This yields the amount of CPC QS to be 
allocated.
    (H) Determine the percentage of legal landings in the subset of 
qualifying years associated with a permit that were not processed on 
that vessel and multiply the amount calculated in paragraph 
(c)(2)(v)(F) of this section by this percentage. This yields the amount 
of CVC QS to be allocated.
    (I) Determine the percentage of legal landings associated with a 
permit in the subset of qualifying years that were delivered in each 
region as defined in paragraph (b)(2) of this section. The amount 
calculated in paragraph (c)(2)(v)(H) of this section is multiplied by 
the percentage for each region.
    (J) The percentage calculated in paragraph (c)(2)(v)(I) of this 
section may be adjusted according to the provisions at paragraphs 
(c)(3) and (c)(4) of this section. The amount calculated in paragraph 
(c)(2)(v)(H) of this section is multiplied by the percentage for each 
region. These regional QS designations do not apply in the CVC QS 
sector until July 1, 2008.
    (vi) Sunken vessel provisions. (A) If a person applies for CVO QS 
or CPO QS based, in whole or in part, on the activities of a vessel 
that sank, the Regional Administrator shall presume landings for that 
vessel for the crab fishing years between the time of vessel loss and 
the replacement of the vessel under Sec.  679.40(k)(5)(v). These 
presumed landings shall be equivalent to 50 percent of the average 
legal landings for the qualifying years established in Column B of 
Table 7 to this part unaffected by the sinking. If the vessel sank 
during a qualifying year, the legal landings for that year will not be 
used as the basis for presumed landings;
    (B) If a person applies for CVO QS or CPO QS based, in whole or in 
part, on the activities of a vessel that sank and:
    (1) The person who owned the vessel that sank would have been 
denied eligibility to replace a sunken vessel under the provisions of 
Public Law 106[hyphen]554; and
    (2) The vessel that sank was replaced with a newly constructed 
vessel, with that vessel under construction no later than June 10, 
2002. For purposes of this section a vessel is considered under 
construction once the keel for that vessel has been laid; and
    (3) The newly constructed vessel participated in any Bering Sea 
crab fishery no later than October 31, 2002;
    (4) Then the Regional Administrator shall presume landings for that 
vessel for the crab fishing years between the time of vessel loss and 
the replacement of the vessel. These presumed landings shall be 
equivalent to 50 percent of the average legal landings for the 
qualifying years established in Column B of Table 7 to this part 
unaffected by the sinking. If the vessel sank during a qualifying year, 
the legal landings for that year will not be used as the basis for 
presumed landings.
    (vii) Interim LLP license history exemption. An applicant for CVO 
or CPO QS who:
    (A) Deployed a vessel in a crab QS fishery under the authority of 
an interim LLP license;
    (B) Transferred a permanent fully transferable LLP license for use 
in that crab QS fishery to insure that the vessel would remain 
authorized to participate in the fishery following the invalidation of 
the interim LLP license; and
    (C) Received that permanent fully transferable LLP license by 
transfer before January 1, 2002, may choose to use as the legal 
landings which are the basis for QS allocation on his or her 
Application for Crab QS or PQS either:
    (D) The legal landings made on that vessel that gave rise to the 
interim crab LLP license for that crab QS fishery prior to the transfer 
of the permanent fully transferable LLP license for use on that vessel; 
or
    (E) The legal landings made on the vessel that gave rise to the 
permanent fully transferable LLP license and the legal landings made 
under the authority of that same LLP license in that crab QS fishery 
prior to January 1, 2002.
    (3) Adjustment of CVO and CVC QS allocation for North and South 
regional designation. The Regional Administrator may adjust the 
regional designation of QS to ensure that it is initially allocated in 
the same proportion as the regional designation of PQS for that crab QS 
fishery. A person (p) who would receive QS based on the legal landings 
in only one region, will receive QS with only that regional 
designation. A person who would receive QS with more than one regional 
designation for that crab QS fishery would have his or her QS holdings 
regionally adjusted on a pro rata basis as follows:
    (i) Determine the ratio of the Initial PQS pool in the North and 
South regions.
    (ii) Multiply the Initial QS pool by the ratio of North and South 
PQS. This will yield the target North QS pool and the target South QS 
pool.
    (iii) Sum the QS for all persons who are eligible to receive North 
QS. This is the unadjusted North QS pool.
    (iv) Repeat the procedure in paragraph (c)(3)(iii) of this section 
for the South Region. This is the unadjusted South QS pool.
    (v) To calculate the amount of North QS available to all persons 
holding both North and South region QS, subtract the amount of QS for 
persons receiving North QS only from the unadjusted North QS pool as 
presented in the following equation:

[[Page 63295]]

    Unadj. North QS [hyphen] North QS only = North QS for [North & 
South] QS holders.
    (vi) To calculate the amount of South QS available to all persons 
holding both North and South region QS, subtract the amount of QS for 
persons receiving South QS only from the unadjusted South QS pool as 
presented in the following equation:
    Unadj. South QS [hyphen] South QS only = South QS for [North & 
South] QS holders.
    (vii) Subtract the Unadjusted North QS pool from the Target North 
QS pool to calculate the number of QS units that will be applied to the 
North QS pool to adjust the regional designations. This amount is the 
Adjustment Amount as presented in the following equation:
    Unadj. North QS [hyphen] Target North QS pool = Adjustment 
Amount
    (viii) Divide the Adjustment Amount by the unadjusted North QS pool 
for North and South QS holders. This yields the regional adjustment 
factor (RAF) for each person as presented in the following equation:
    Adj. Amount / unadjusted North QS pool for [North & South] QS 
holders = RAF
    (ix) For each person who holds both North and South Region QS, the 
QS adjustment (QS Adj. (p) to that person's Unadjusted North QS is 
expressed in the following equation as:
    QS adj. p = Unadjusted North QS p x RAF
    (x) If the QS adjustment for person (p) is negative, the QS 
adjustment for that person is subtracted from that person's unadjusted 
North QS amount and added to that person's unadjusted South QS. If the 
QS adjustment for person (p) is positive, the QS adjustment for that 
person is added to that person's unadjusted North QS amount and 
subtracted from that person's unadjusted South QS. These adjustments 
will yield the regional adjustment QS amounts for that person.
    (4) Regional designation of Western Aleutian Islands golden king 
crab. Fifty percent of the CVO and CVC QS that is issued in the WAG 
crab QS fishery will be initially issued with a West regional 
designation. The West regional designation applies to QS for delivery 
West of 174[deg] N. longitude. The remaining 50 percent of the CVO and 
CVC QS initially issued for this fishery is not subject to regional 
designation (Undesignated QS). A person (p) who would receive QS based 
on the legal landings in only one region, will receive QS with only 
that regional designation. A person who would receive QS with more than 
one regional designation for that crab QS fishery would have his or her 
QS holdings regionally adjusted on a pro rata basis as follows:
    (i) The West QS pool is equal to 50 percent of the initial QS pool.
    (ii) The Undesignated QS pool is equal to 50 percent of the initial 
QS pool.
    (iii) Sum the QS for all persons who are eligible to receive West 
QS. This is the unadjusted West QS pool.
    (iv) Repeat the procedure in paragraph (c)(4)(iii) of this section 
for the Undesignated Region. This is the unadjusted Undesignated QS 
pool.
    (v) To calculate the amount of West QS available to all persons 
holding both West and Undesignated region QS, subtract the amount of QS 
for persons receiving West QS only from the unadjusted West QS pool as 
presented in the following equation:
    Unadj. West QS [hyphen] West QS only = West QS for [West & 
Undesignated] QS holders
    (vi) To calculate the amount of Undesignated QS available to all 
persons holding both West and Undesignated region QS, subtract the 
amount of QS for persons receiving Undesignated QS only from the 
unadjusted Undesignated QS pool as presented in the following equation:
    Unadj. Undesignated QS [hyphen] Undesignated QS only = 
Undesignated QS for [West &Undesignated] QS holders
    (vii) Subtract the Unadjusted West QS pool from the Target West QS 
pool to calculate the number of QS units that will be applied to the 
West QS pool to adjust the regional designations. This amount is the 
Adjustment Amount as presented in the following equation:
    Unadj. West QS [hyphen] Target West QS pool = Adjustment Amount
    (viii) Divide the Adjustment Amount by the unadjusted West QS pool 
for West and Undesignated QS holders. This yields the regional 
adjustment factor (RAF) for each person as presented in the following 
equation:
    Adj. Factor / unadjusted West QS pool for West & Undesignated QS 
holders = RAF
    (ix) For each person who holds both unadjusted West and 
Undesignated Region QS, the QS adjustment (QS Adj. p) to that person's 
Unadjusted West QS is expressed in the following equation as:
    QS adj. p = Unadjusted West QS p x RAF
    (x) If the QS adjustment for person (p) is negative, the QS 
adjustment for that person is added to that person's unadjusted West QS 
amount and subtracted from that person's unadjusted Undesignated QS. If 
the QS adjustment for person (p) is negative, the QS adjustment for 
that person is subtracted from that person's unadjusted West QS amount 
and added to that person's unadjusted Undesignated QS. These 
adjustments will yield the regional adjustment QS amounts for that 
person.
    (d) Crab PQS and Crab PQS Fisheries--(1) General. The Regional 
Administrator shall initially assign to qualified persons defined in 
paragraph (d)(3) of this section crab PQS specific to crab QS fisheries 
defined in paragraph (a)(1) of this section. The crab PQS amount issued 
will be based on total legal processing of crab made in those crab QS 
fisheries. PQS shall yield annual IPQ as defined under paragraph (j) of 
this section.
    (2) Regional Designations. For each crab QS fishery, PQS shall be 
initially regionally designated based on the legal processing that gave 
rise to the PQS as follows:
    (i) North PQS if the processing that gave rise to the PQS for a 
crab QS fishery occurred in the Bering Sea subarea north of 56[deg]20' 
N. lat.; or
    (ii) South PQS if the processing that gave rise the PQS for a crab 
QS fishery did not occur in the North Region, and PQS allocated to the 
WAI crab QS fishery; or
    (iii) West PQS for a portion of the PQS allocated to the WAG crab 
QS fishery subject to the provisions under paragraph (e)(2) of this 
section; or
    (iv) Regional designations do not apply (Undesignated) to:
    (A) That portion of the WAG crab QS fishery that is not regionally 
designated as West Region PQS; and
    (B) The BST crab QS fishery.
    (v) The specific regional designations that apply to PQS in each of 
the crab QS fisheries are described in paragraph (b)(2)(iii) of this 
section.
    (3) Qualified person, for the purposes of PQS issuance, means a 
person, as defined at Sec.  679.2, who at the time of application for 
PQS is a U.S. citizen, or a U.S. corporation, partnership, association, 
or other entity, and who:
    (i) Legally processed any crab QS species established in paragraph 
(a)(1) of this section during 1998 or 1999 as demonstrated on the 
official crab rationalization record; or
    (ii) Did not legally process any crab QS species during 1998 or 
1999 according to the official crab rationalization record, but who:
    (A) Processed BSS crab QS species in each crab season for that 
fishery during the period from 1988 through 1997; and
    (B) From January 1, 1996, through June 10, 2002, invested in a 
processing facility, processing equipment, or a vessel for use in 
processing operations, including any improvements made to existing 
facilities with a total expenditure in excess of $1,000,000; or
    (C) Is the person to whom the history of legal processing of crab 
has been transferred by the express terms of a written contract that 
clearly and unambiguously provides that such legal processing of crab 
has been transferred.

[[Page 63296]]

This provision would apply only if that applicant for PQS:
    (1) Legally processed any crab QS species established in Sec.  
680.40(a)(1) during 1998 or 1999, as demonstrated on the official crab 
rationalization record; or
    (2) Received history of crab processing that was legally processed 
during 1998 or 1999, as demonstrated on the official crab 
rationalization record.
    (iii) Qualified persons, or their 
successors[hyphen]in[hyphen]interest, must exist at the time of 
application for PQS;
    (iv) A former partner of a dissolved partnership or a former 
shareholder of a dissolved corporation who would otherwise qualify as a 
person may apply for PQS in proportion to his or her ownership interest 
in the dissolved partnership or corporation;
    (v) Evidence of ownership interest in a dissolved partnership or 
corporation, association, or other entity shall be limited to corporate 
documents (e.g., articles of incorporation) or notarized statements 
signed by each former partner, shareholder or director, and specifying 
their proportions of interest; and
    (vi) A person who has acquired a processing corporation, 
partnership, or other entity that has a history of legal processing of 
crab is presumed to have received by transfer all of that history of 
legal processing of crab unless a clear and unambiguous contract 
establishes otherwise.
    (4) Qualification for Initial Allocation of PQS--(i) Year. The 
qualifying years for each crab QS fishery are designated in Table 9 to 
this part.
    (ii) Ownership interest. Evidence of ownership interest in a 
dissolved partnership or corporation, association, or other entity 
shall be limited to corporate documents (e.g., articles of 
incorporation) or notarized statements signed by each former partner, 
shareholder or director, and specifying their proportions of interest.
    (iii) Legal Processing of crab means, for the purpose of initial 
allocation of PQS, raw crab pounds processed in the crab QS fisheries 
designated under paragraph (a)(1) of this section in compliance with 
state and Federal permitting, landing, and reporting regulations in 
effect at the time of the landing. Legal processing excludes any 
deadloss, fishing conducted under a scientific activity permit, or 
fishing conducted under the Western Alaska CDQ program.
    (iv) Documentation. Evidence of legal processing shall be limited 
to State of Alaska fish tickets, except that:
    (A) NMFS may use information from a State of Alaska Commercial 
Operators Annual Report, State of Alaska fishery tax records, or 
evidence of direct payment from a receiver of crab to a harvester if 
that information indicates that the receiver of crab differs from the 
receiver indicated on State of Alaska fish ticket records; however:
    (B) Information on State of Alaska fish tickets shall be presumed 
to be correct for the purpose of determining evidence of legal 
processing of crab. An applicant will have the burden of proving the 
validity of information submitted in an application that is 
inconsistent with the information on the State of Alaska fish ticket. 
Except that NMFS may use information from a State of Alaska Commercial 
Operators Annual Report, State of Alaska fishery tax records, or 
documentation of direct payment from a receive of crab to a harvester 
if that information indicated that the receiver of crab differs from 
the receiver indicated on State of Alaska fish ticket records.
    (e) Calculation of PQS allocation--(1) Computation for Initial 
Issuance of PQS. (i) The Regional Administrator shall establish the 
Total Processing Denominator (TPD) which represents the amount of 
legally processed raw crab pounds in each crab QS fishery in each 
qualifying year.
    (ii) For each crab QS fishery, the percentage of the initial PQS 
pool that will be distributed to each qualified person shall be based 
on their percentage of the TPD according to the following procedure.
    (A) Sum the raw crab pounds processed for each person.
    (B) Divide the sum calculated in paragraph (e)(1)(ii)(A) of this 
section by the TPD. Multiply by 100. This yields a person's percentage 
of the TPD.
    (C) Sum the TPD percentages of all persons.
    (D) Divide the percentage for a person calculated in paragraph 
(e)(1)(ii)(B) of this section by the sum calculated in paragraph 
(e)(1)(ii)(C) of this section for all persons. This yields the average 
percentage of the TPD for a person.
    (E) Multiply the amount calculated in paragraph (e)(1)(ii)(D) of 
this section by the PQS pool for that crab QS fishery as that amount is 
defined in Table 8 to this part.
    (F) Determine the percentages of legally processed crab that were 
processed in each region. The percentages calculated in paragraph 
(e)(1)(ii)(E) of this section are multiplied by the amount determined 
within each regional designation. Regional designations will apply to 
that PQS according to the provisions established in paragraphs (d)(2) 
and (e)(2) of this section.
    (2) Regional designation of Western Aleutian Islands golden king 
crab. (i) Fifty percent of the PQS that is issued in the WAG crab QS 
fishery will be issued with a West regional designation. The West 
regional designation applies to PQS for processing west of 174[deg] N. 
long. The remaining 50 percent of the PQS issued for this fishery is 
undesignated region PQS.
    (ii) If a person owns a crab processing facility that is located in 
the West region at the time of application, that person will receive 
West PQS only. If a person applies to receive PQS and does not own a 
crab processing facility located in the West region at the time of 
application, then that person will receive West region and Undesignated 
Region PQS. Expressed algebraically, for any person (p) allocated both 
West region PQS and undesignated region PQS the formula is as follows:
    (A) PQSWest = PQS x 0.50
    (B) PQSUnd. = PQS x 0.50
    (C) PQSWest for PQSWest!&!Und. holders = 
PQSWest - PQSWest!only
    (D) PQSWest for Personp = PQSp 
x PQSWest for PQSWest!&!Und. holders/
(PQSWest for PQSWest!&!Und. holders + 
PQSUnd)
    (E) PQSUnd. for Personp = PQSp 
x PQSUnd./(PQSUnd. for PQSWest!&!Und. 
holders + PQSUnd.)
    (iii) For purposes of the allocation of PQS in the WAG crab 
fishery:
    (A) Ownership of a processing facility is defined as:
    (1) A sole proprietor; or
    (2) A relationship between two or more entities in which a person 
directly or indirectly owns a 10 percent or greater interest in 
another, or a third entity directly or indirectly owns a 10 percent or 
greater interest in both.
    (B) A processing facility is a shoreside crab processor or a 
stationary floating crab processor.
    (f) Application process--(1) General. The Regional Administrator 
will issue QS and/or PQS to an applicant if an Application for Crab QS 
or PQS is completed and is submitted by or on behalf of the applicant 
during the specified application period, and if the applicant meets all 
criteria for eligibility and allocation as specified at paragraphs 
(b)(3) and (d)(3) of this section.
    (i) The Regional Administrator will send application materials to 
the person identified by NMFS as an eligible applicant based on the 
official crab rationalization record. An application form may also be 
obtained from the Internet or requested from the Regional 
Administrator.
    (ii) An Application for Crab QS or PQS may be submitted by mail, 
P.O. Box 21668, Juneau, AK 99802, facsimile, 
907[hyphen]586[hyphen]7557, or hand delivery to the

[[Page 63297]]

National Marine Fisheries Service, 709 West 9th Street, Room 420A, 
Juneau, AK.
    (iii) An application that is postmarked, faxed, or hand delivered 
after the ending date for the application period for the Crab QS 
Program specified in the Federal Register will be denied.
    (2) Contents of application. A complete Application for Crab QS or 
PQS must be signed by the applicant, or the individual representing the 
applicant, and include the following, as applicable:
    (i) Type of QS or PQS for which the person is applying.
    (A) If applying for CVO QS or CPO QS, answer questions (f)(2)(ii) 
through (f)(2)(iv) of this section;
    (B) If applying for CVC QS or CPC QS, answer questions (f)(2)(ii), 
(f)(2)(iii) and (f)(2)(v) of this section;
    (C) If applying for PQS, answer questions (f)(2)(ii), (f)(2)(iii) 
and (f)(2)(vi) of this section.
    (ii) Applicant information.
    (A) The name, permanent business mailing address, business 
telephone, business facsimile, business e[hyphen]mail of the applicant;
    (B) NMFS Person ID (if applicable);
    (C) Tax ID/social security number (SSN);
    (D) Indicate (YES or NO) whether applicant is a U.S. citizen; if 
YES, his or her date of birth;
    (E ) Indicate (YES or NO) whether applicant is a U.S. corporation, 
association, or other business entity; if YES, the date of 
incorporation;
    (F) Indicate (YES or NO) whether applicant is deceased; if YES, 
date of death. A copy of the death certificate must be attached to the 
application;
    (G) Indicate (YES or NO) whether applicant described in paragraph 
(f)(2)(ii)(E) of this section is no longer in existence; if YES, date 
of dissolution. Valid evidence of dissolution must be attached to the 
application;
    (iii) Type of crab QS;
    (iv) CVO or CPO QS;
    (A) For vessels whose catch histories are being claimed for purpose 
of the crab QS program: include name of the vessel, ADF&G vessel 
registration number, USCG documentation number, moratorium crab permit 
number(s) or crab LLP license number(s) held by the applicant and used 
on that vessel, qualifying years or seasons fished, and dates during 
which those permits were used on that vessel;
    (B) Indicate (YES or NO) whether applicant purchased an LLP crab 
license and vessel identification if a person purchased an LLP crab 
license prior to January 1, 2002, for purposes of remaining in a crab 
QS fishery. If YES, include LLP crab license number, ADF&G vessel 
registration number, USCG documentation number, and name of vessel.
    (C) Indicate (YES or NO) whether QS is being claimed for a vessel 
that was lost or destroyed. If YES, include the vessel name, ADF&G 
registration number, USCG documentation number of the lost or destroyed 
vessel, and the date the vessel was destroyed or lost;
    (D) Indicate (YES or NO) whether the lost or destroyed vessel 
described in paragraph (f)(2)(iv)(C) of this section was replaced with 
a newly constructed vessel. If YES, include the vessel name, ADF&G 
vessel registration number, USCG documentation number of the 
replacement vessel, date of vessel construction, date of entry into the 
fishery, and provide documentation of participation by October 31, 2002 
by the new vessel in a Bering Sea crab fishery;
    (E) Indicate (YES or NO) whether applying for CPO QS. If YES, 
attach documentation of processing crab onboard a vessel authorized by 
an LLP crab license in 1998 or 1999, including harvest area, date of 
landing, and crab species;
    (v) CVC or CPC QS.
    (A) Indicate (YES or NO) whether applicant has at least one landing 
in three of the qualifying years for each crab species for which 
applying for QS (see Table 7 to this part).
    (B) Indicate (YES or NO) whether applicant is a recent participant 
in a crab QS fishery. Recent participation is defined in Table 7 to 
this part.
    (C) In answer to paragraph (f)(2)(v)(B) of this section in YES, 
enter State of Alaska Interim Use Permit number, name, ADF&G vessel 
registration number, USCG documentation number of vessel on which 
harvesting occurred; qualifying years or seasons fished by QS fishery, 
and the dates during which those permits were used on that vessel;
    (D) Indicate (YES or NO) whether a person is applying as the 
successor[hyphen]in[hyphen]interest to an eligible applicant. If YES, 
attach to the application documentation proving the person's status as 
a successor[hyphen]in[hyphen]interest to and valid evidence of the 
death of that eligible applicant;
    (vi) Processor QS.
    (A) Indicate (YES or NO) whether applicant processed any of the 
crab species included in the Crab QS program (see Table 1 to this part) 
in 1998 or 1999.
    (B) If answer to paragraph (f)(2)(vi)(A) of this section is YES, 
enter the following information for each processing facility where QS 
crab were processed through which applicant is claiming eligibility for 
BSAI crab PQS:
    (1) Facility name and ADF&G processor code;
    (2) Qualifying years or seasons by fishery;
    (C) If answer to paragraph (f)(2)(vi)(A) of this section is NO, 
indicate (YES or NO) whether applicant is claiming eligibility under 
hardship provisions;
    (D) If answer to paragraph (f)(2)(vi)(C) is YES, both of the 
following provisions must apply to a processor to obtain hardship 
provisions; attach documentation of both to the application:
    (1) Processed QS crab in 1998 or 1999, or processed BSS crab 
between 1988 and 1997; and
    (2) Invested a total expenditure of $1,000,000 for any processing 
facility, processing equipment, or a vessel for use in processing 
operations, including any improvements made to existing facilities made 
from 1996 to 2002;
    (E) Indicate (YES or NO) whether applicant has entered into a 
Community Right of First Refusal (ROFR) contract, pertaining to the 
transfer of any PQS and/or IPQ issued as a result of this application, 
with a community. If YES, attach to the application the following:
    (1) Copy of signed contract for community ROFR consistent with 
paragraph (f)(3) of this section;
    (2) Contract that the legal processing history and rights to apply 
for and receive PQS based on that legal processing history have been 
transferred or retained; and
    (3) Any other information deemed necessary by the Regional 
Administrator.
    (F) If applicant is applying to receive WAG PQS, indicate (YES or 
NO) whether applicant owns a crab processing facility in the West 
region (see paraggraph (b)(2)(iii) of this section);
    (vii) Applicant signature and certification. Printed name and 
signature of applicant and date signed. If the application is completed 
by an authorized representative, then a proof of authorization must 
accompany the application.
    (3) Contract provisions for community right of first refusal (ROFR) 
in Application for Crab QS or PQS. (i) To be complete, an Application 
for Crab QS or PQS from a person based on legal processing that 
occurred in an ECC must also include a contract for ROFR that includes 
the terms listed in paragraph (m) of this section and is signed by the 
applicant for initial allocation of PQS and the ECC entity designated 
under Sec.  680.41(j)(2).

[[Page 63298]]

    (ii) To be complete, an Application for Crab QS or PQS from a 
person based on legal processing that occurred in the Gulf of Alaska 
north of a line at 56[deg]20' N. lat. must also include a contract for 
ROFR that includes the terms listed in paragraph (m) of this section 
and is signed by the applicant for initial allocation of PQS and the 
ECC entity designated by the by the City of Kodiak and Kodiak Island 
Borough under Sec.  680.41(j)(2).
    (4) Application evaluation. The Regional Administrator will 
evaluate Applications for Crab QS and PQS submitted during the 
specified application period and compare all claims in the application 
with the information in the official crab rationalization record. 
Claims in the application that are consistent with information in the 
official crab rationalization record will be accepted by the Regional 
Administrator. Inconsistent claims in the Applications for Crab QS or 
PQS, unless verified by documentation, will not be accepted. An 
applicant who submits inconsistent claims, or an applicant who fails to 
submit the information specified in paragraph (f)(2) of this section, 
will be provided a single 30[hyphen]day evidentiary period as provided 
in paragraph (f)(5) of this section to submit the specified 
information, submit evidence to verify his or her inconsistent claims, 
or submit a revised application with claims consistent with information 
in the official crab rationalization record. An applicant who submits 
claims that are inconsistent with information in the official crab 
rationalization record has the burden of proving that the submitted 
claims are correct.
    (5) Additional information or evidence. The Regional Administrator 
will evaluate additional information or evidence to support an 
applicant's inconsistent claims submitted prior to or within the 
30[hyphen]day evidentiary period. If the Regional Administrator 
determines that the additional information or evidence meets the 
applicant's burden of proving that the inconsistent claims in his or 
her application are correct, the official crab rationalization record 
will be amended and the information will be used in determining whether 
the applicant is eligible for QS or PQS. However, if the Regional 
Administrator determines that the additional information or evidence 
does not meet the applicant's burden of proving that the inconsistent 
claims in his or her application are correct, the applicant will be 
notified by an IAD, that the applicant did not meet the burden of proof 
to change the information in the official crab rationalization record.
    (6) 30[hyphen]day evidentiary period. The Regional Administrator 
will specify by letter a single 30[hyphen]day evidentiary period during 
which an applicant may provide additional information or evidence to 
support the claims made in his or her application, or to submit a 
revised application with claims consistent with information in the 
official crab rationalization record, if the Regional Administrator 
determines that the applicant did not meet the burden of proving that 
the information on the application is correct through evidence provided 
with the application. Also, an applicant who fails to submit 
information as specified in paragraphs (b)(3)(iii) and (b)(3)(iv) of 
this section will have 30 days to provide that information. An 
applicant will be limited to one 30[hyphen]day evidentiary period per 
application. Additional information or evidence, or a revised 
application, received after the 30[hyphen]day evidentiary period 
specified in the letter has expired will not be considered for purposes 
of the IAD.
    (7) Right of First Refusal (ROFR) Contract Provisions. If an 
applicant submits an Application for Crab QS and PQS that does not 
contain the contract provisions for community ROFR, as specified in 
paragraphs (f)(2)(vi)(E) and (m) of this section, then the Regional 
Administrator will not prepare an IAD on unverified claims or issue QS 
or PQS until such contract provisions have been submitted.
    (8) Initial administrative determinations (IAD). The Regional 
Administrator will prepare and send an IAD to the applicant following 
the expiration of the 30[hyphen]day evidentiary period if the Regional 
Administrator determines that the information or evidence provided by 
the applicant fails to support the applicant's claims and is 
insufficient to rebut the presumption that the official crab 
rationalization record is correct, or if the additional information, 
evidence, or revised application is not provided within the time period 
specified in the letter that notifies the applicant of his or her 
30[hyphen]day evidentiary period. The IAD will indicate the 
deficiencies in the application, including any deficiencies with the 
information, the evidence submitted in support of the information, or 
the revised application. The IAD will also indicate which claims cannot 
be approved based on the available information or evidence. An 
applicant who receives an IAD may appeal pursuant to Sec.  679.43. An 
applicant who avails himself or herself of the opportunity to appeal an 
IAD will not receive crab QS or PQS until after the final resolution of 
that appeal in the applicant's favor.
    (g) Annual allocation of IFQ. IFQ is assigned based on the 
underlying QS. The Regional Administrator shall assign crab IFQs to 
each person who holds QS and submits a complete Annual Application for 
Crab IFQ/IPQ Permit as described under Sec.  680.4. IFQ will be 
assigned to a crab QS fishery with the appropriate regional 
designation, QS sector, and IFQ class. This amount will represent the 
maximum amount of crab that may be harvested from the specified crab QS 
fishery by the person to whom it is assigned during the specified crab 
fishing year, unless the IFQ assignment is changed by the Regional 
Administrator because of an approved transfer, unless revoked, 
suspended, or modified under 15 CFR part 904.
    (h) Calculation of annual IFQ allocation--(1) General. The annual 
allocation of IFQ to any person (p) in any crab QS fishery (f) will be 
based on the TAC of crab for that crab QS fishery less the allocation 
to the Western Alaska CDQ Program (``CDQ Reserve'') and Western 
Aleutian Islands golden king crab fishery. Expressed algebraically, the 
annual IFQ allocation formula is as follows:
    (i) IFQ TACf = TACf [hyphen] (CDQ 
reservef + Allocation for the Western Aleutian Island golden 
king crab fishery)
    (ii) IFQpf = IFQ TACf x (QSpf/QS 
poolf).
    (2) Class A/B IFQ. (i) QS shall yield Class A or Class B IFQ if:
    (A) Initially assigned to the CVO QS sector;
    (B) Transferred to the CVO QS sector from the CPO QS sector; or
    (C) After July 1, 2008, if initially issued to the CVC QS sector.
    (3) Class A IFQ will be assigned to all eligible recipients.
    (4) Class B IFQ will be assigned to all eligible recipients except 
that Class B IFQ will not be issued to:
    (i) Any person who holds PQS or IPQ;
    (ii) Any person who holds QS and is affiliated with a person who 
holds PQS or IPQ. Affiliation will be determined based on an annual 
affidavit by each QS holder submitted as part of the Annual Application 
to for Crab IFQ/IPQ Permit.
    (5) Class A/B IFQ issuance ratio. (i) Class A and Class B IFQ shall 
be assigned on an annual basis such that the total amount of Class A 
and B IFQ assigned in a crab fishing year in each crab QS fishery for 
each region will be in a ratio of 90 percent Class A IFQ and 10 percent 
Class B IFQ.
    (ii) The Regional Administrator will determine the amount of Class 
A and Class B IFQ that is assigned to a person

[[Page 63299]]

eligible to hold IFQ. This is calculated by allocating 90 percent of 
the IFQ TAC (TAC a) to Class A IFQ. A portion of the IFQ TAC a is 
allocated to persons eligible to hold only Class A IFQ (TAC a only), 
the remaining IFQ TAC (TAC r) is allocated for harvest by a person (p) 
eligible to receive both Class A IFQ and Class B IFQ. Expressed 
algebraically, for an individual person (p) eligible to hold both Class 
A and Class B IFQ the annual allocation formula is as follows:
    (A) TACa = IFQ TAC x 0.90
    (B) TACr = TACa - TACa only
    (C) IFQap = TACr / (IFQ TAC - TACa 
only) x IFQp
    (D) IFQbp = IFQp - IFQap
    (6) CVC IFQ. (i) QS that is initially allocated to the CVC QS 
sector shall yield CVC IFQ.
    (ii) After July 1, 2008, CVC IFQ will be assigned as CVC Class A 
and CVC Class B IFQ under the provisions established in paragraph 
(h)(5)(ii) of this section.
    (7) CPO IFQ. (i) QS that is initially allocated to the CPO QS 
sector shall yield CPO IFQ.
    (ii) CPO IFQ is not subject to regional designation.
    (8) CPC IFQ. (i) QS that is initially allocated to the CPC QS 
sector shall yield CPC IFQ.
    (ii) CPC IFQ is not subject to regional designation.
    (9) QS amounts for IFQ calculation. For purposes of calculating 
IFQs for any crab fishing year, the amount of a person's QS and the 
amount of the QS pool for any crab QS fishery will be the amounts on 
record with the Alaska Region, NMFS, at the time of calculation.
    (i) Annual allocation of IPQ. IPQ is assigned based on the 
underlying PQS. The Regional Administrator shall assign crab IPQs to 
each person who submits a complete Annual Application for Crab IFQ/IPQ 
Permit as described under Sec.  680.4. Each assigned IPQ will be 
specific to a crab QS fishery with the appropriate regional 
designation. This amount will represent the maximum amount of crab that 
may be received from the specified crab QS fishery by the person to 
whom it is assigned during the specified crab fishing year, unless the 
IPQ assignment is changed by the Regional Administrator because of an 
approved transfer or unless revoked, suspended, or modified under 15 
CFR part 904.
    (j) Calculation of annual IPQ allocation--(1) General. The annual 
allocation of TAC to PQS and the resulting IPQ in any crab QS fishery 
(f) is the Class A IFQ TAC (TAC a). A person's annual IPQ is based on 
the amount of PQS held by a person (PQS p) divided by the PQS pool for 
that crab QS fishery for all PQS holders (PQS pool f). Expressed 
algebraically, the annual IPQ allocation formula is as follows:
    IPQpf = TACaf x PQSpf/PQS 
poolf.
    (2) PQS amounts for IPQ calculation. For purposes of calculating 
IPQs for any crab fishing year, the amount of a person's PQS and the 
amount of the PQS pool for any crab PQS fishery will be the amounts on 
record with the Alaska Region, NMFS, at the time of calculation.
    (k) Timing for Issuance of IFQ or IPQ. IFQ and IPQ will be issued 
once the TAC for that crab QS fishery in that crab fishing year has 
been specified by the State of Alaska. All IFQ and IPQ for all persons 
will be issued once for a crab fishing year for a crab QS fishery. QS 
issued after NMFS has issued annual IFQ for a crab QS fishery for a 
crab fishing year will not result in IFQ for that crab QS fishery for 
that crab fishing year.
    (l) Harvesting and processing privilege. QS and PQS allocated or 
permits issued pursuant to this part do not represent either an 
absolute right to the resource or any interest that is subject to the 
``takings'' provision of the Fifth Amendment of the U.S. Constitution. 
Rather, such QS, PQS, or permits represent only a processing privilege 
that may be revoked or amended pursuant to the Magnuson[hyphen]Stevens 
Act and other applicable law.
    (m) Contract terms for community right of first refusal (ROFR). The 
contract for ROFR required for the Application for Crab QS or PQS under 
paragraph (f)(2) of this section must include the following terms:
    (1) The ROFR will apply to transfers of:
    (i) PQS, and
    (ii) IPQ, if more than 20 percent of the IPQ resulting from PQS 
held by that person that is derived from legal processing that occurred 
in that ECC is used outside of that ECC in a crab fishing year.
    (2) Any proposed sale of PQS to another person, and any associated 
IPQ or other goods and appurtenances attached to that sale, must be 
provided to the ECC entity under the exact same terms and agreements 
for the exercise of ROFR.
    (3) If a PQS holder legally uses IPQ outside of the ECC for which 
those IPQ are designated, than that use of IPQ is exempt from ROFR. If 
such IPQ is used outside the ECC by the PQS holder for a period of 
three consecutive crab fishing years, than those PQS and IPQ are 
forever exempt from ROFR. This provision only applies if the PQS holder 
holds the IPQ and uses that IPQ during the three crab fishing year 
period without transfer or lease to another holder.
    (4) If PQS is transferred and the IPQ derived from that PQS is used 
to process crab within the ECC for which that PQS is designated, ROFR 
cannot be exercised by the ECC entity while that PQS is used in that 
ECC. A use of crab in the ECC will exist if the purchaser of the PQS 
designated for that ECC contracts with the ECC entity to:
    (i) Use at least 80 percent of the annual IPQ allocation in the 
ECC; or
    (ii) Grant the community a ROFR on the PQS subject to the same 
terms and conditions required of the holder of the initial allocation 
of the PQS.
    (5) All terms of any ROFR and contract entered into related to the 
ROFR will be enforced through civil contract law.
    (6) An ECC entity can waive any ROFR. Written proof of any waivers 
of ROFR must be provided with any proposed transfer of PQS designated 
for an ECC under Sec.  680.41(j) of this part.
    (7) The right of first refusal may be exercised by the ECC entity 
by providing the PQS holder within 60 days of receipt of a copy of the 
proposed contract for transfer of PQS:
    (i) Notice of the intent to exercise ROFR, and
    (ii) Earnest money in the amount of 10 percent of the contract 
amount or $500,000 whichever is less.
    (8) The ECC entity must perform all of the terms of the contract 
for the transfer of PQS within the longer of:
    (i) One hundred and twenty days of receipt of the contract, or
    (ii) In the time specified in the contract.
    (9) Except as provided for at Sec.  680.41(j)(5), ROFR applies only 
to the ECC within which the legal processing that gave rise to the PQS 
occurred. If the ECC entity chooses not to exercise ROFR on the 
transfer of PQS, that PQS will no longer be subject to ROFR
    (10) Any due diligence review conducted related to the exercise of 
a ROFR will be undertaken by a third party bound by a confidentiality 
agreement that protects any proprietary information from being released 
or made public.


Sec.  680.41  Transfer of QS and IFQ.

    (a) General. (1) Transfer of crab QS, PQS, IFQ, or IPQ means any 
transaction, approved by NMFS, requiring QS or PQS, or the use thereof 
in the form of IFQ or IPQ, to pass from one person to another, 
permanently or for a fixed period of time, except that:

[[Page 63300]]

    (2) A Crab IFQ Hired Master Permit issued by NMFS in the name of a 
vessel master employed by a person is not a transfer of crab QS or IFQ;
    (3) The use of IFQ assigned to a crab harvesting cooperative and 
used within that cooperative is not a transfer of IFQ.
    (b) Transfer procedure. (1) A person must establish eligibility to 
receive QS, PQS, IFQ, or IPQ by transfer.
    (2) A person must submit a complete a transfer application that is 
subsequently approved by the Regional Administrator.
    (i) Eligibility Applications. Applications under this paragraph are 
required to establish eligibility to receive QS, PQS, IFQ, or IPQ by 
transfer. If a person is an initial issuee of QS an eligibility 
application is not required to receive QS, PQS, IFQ or IPQ by transfer. 
If a person is an initial issuee of PQS an eligibility application is 
not required to receive PQS or IPQ by transfer.
    (A) Application for Eligibility to Receive QS/IFQ and PQS/IPQ by 
Transfer. This application is required to establish a person's 
eligibility to receive QS, PQS, IFQ, or IPQ by transfer, if the person 
is not an ECCO.
    (B) Application to Become an ECCO. This application is required to 
establish a person's eligibility to receive QS, PQS, IFQ, or IPQ by 
transfer, if the person is an ECCO.
    (ii) Transfer applications. An application is required to transfer 
any amount of QS, PQS, IFQ, or IPQ. Any transfer application will not 
be approved until the necessary eligibility application in paragraph 
(b)(1)(i) of this section has been submitted and approved by NMFS:
    (A) Application for Transfer of Crab QS/IFQ or PQS/IPQ. This 
application is required to transfer any amount of QS, PQS, IFQ, or IPQ 
from an entity that is not an ECCO or a crab harvesting cooperative;
    (B) Application for Transfer of Crab QS/IFQ to or from an ECCO. 
This application is required to transfer any amount of QS or IFQ to or 
from an entity that is an ECCO.
    (C) Application for Inter[hyphen]cooperative Transfer. This 
application is required to transfer any amount of IFQ from an entity 
that is a crab harvesting cooperative to another crab harvesting 
cooperative.
    (c) Eligibility to receive QS, PQS, IFQ, or IPQ by transfer. (1) 
Any person may apply to receive PQS or IPQ by transfer.
    (i) To be eligible to receive QS, PQS, IFQ, or IPQ by transfer, a 
person must first meet the requirements specified in the following 
table:

------------------------------------------------------------------------
                                                           Eligibility
             Quota Type               Eligible Person     Requirements
------------------------------------------------------------------------
(A) PQS                              Any person         None.
------------------------------------------------------------------------
(B) IPQ                              Any person         None.
------------------------------------------------------------------------
(C) CVO or CPO QS                    (1) A person       No other
                                      initially issued   eligibility
                                      QS                 requirements.
                                    ------------------------------------
                                     (2) An individual  who is a U.S.
                                                         citizen with at
                                                         least 150 days
                                                         of sea time as
                                                         part of a
                                                         harvesting crew
                                                         in any U.S.
                                                         commercial
                                                         fishery.
                                    ------------------------------------
                                     (3) A              with at least on
                                      corporation,       individual
                                      partnership, or    member who is a
                                      other entity       U.S. citizen
                                                         and who:
                                                        (i) owns at
                                                         least 20
                                                         percent of the
                                                         corporation,
                                                         partnership, or
                                                         other entity;
                                                         and
                                                        (ii) has at
                                                         least 150 days
                                                         of sea time as
                                                         part of a
                                                         harvesting crew
                                                         in any U.S.
                                                         commercial
                                                         fishery.
                                    ------------------------------------
                                     (4) An ECCO        that meets the
                                                         eligibility
                                                         requirements
                                                         described under
                                                         paragraphs
                                                         (c)(3) and
                                                         (c)(4) of this
                                                         section.
                                    ------------------------------------
                                     (5) A CDQ Group    no other
                                                         eligibility
                                                         requirements.
------------------------------------------------------------------------
(D) CVO or CPO IFQ                   (1) All persons    according to the
                                      eligible for CVO   requirements in
                                      or CPO QS          paragraph
                                                         (c)(1)(i)(C)(5)
                                                         of this
                                                         section.
                                    ------------------------------------
                                     (2) A crab         that meets the
                                      harvesting         eligibility
                                      cooperative        requirements
                                                         under Sec.
                                                         680.21.
------------------------------------------------------------------------
(E) CVC or CPC QS                    (1) An individual  no other
                                      initially issued   eligibility
                                      QS                 requirements.
                                    ------------------------------------
                                     (2) An individual  who is a U.S.
                                                         citizen with:
                                                        (i) at least 150
                                                         days of sea
                                                         time as part of
                                                         a harvesting
                                                         crew in any
                                                         U.S. commercial
                                                         fishery; and
                                                        (ii) recent
                                                         participation
                                                         in the 365 days
                                                         prior to the
                                                         transfer.
------------------------------------------------------------------------
(F) CVC or CPC IFQ                   (1) All eligible   according to the
                                      persons for CVC    requirements in
                                      or CPC QS          paragraph
                                                         (c)(1)(i)(E) of
                                                         this section.
                                    ------------------------------------
                                     (2) A crab         that meets the
                                      harvesting         eligibility
                                      cooperative        requirements
                                                         under Sec.
                                                         680.21.
------------------------------------------------------------------------
------------------------------------------------------------------------

    (2) Application for Eligibility to Receive QS/IFQ and PQS/IPQ by 
Transfer. (i) Unless a person received crab QS by initial issuance, all 
persons, except non[hyphen]profits seeking to become an ECCO, applying 
to receive QS, PQS, IFQ or IPQ must submit an Application for 
Eligibility to Receive QS/IFQ or PQS/IPQ by Transfer, containing 
accurate

[[Page 63301]]

information, to the Regional Administrator. The Regional Administrator 
shall provide an Application for Eligibility to Receive QS/IFQ or PQS/
IPQ by Transfer to any person on request.
    (ii) Contents. A completed Application for Eligibility to Receive 
QS/IFQ or PQS/IPQ by Transfer must include the following:
    (A) Type of QS, IFQ, PQS, or IPQ for which the applicant is seeking 
eligibility. Indicate type of QS, IFQ, PQS, IPQ for which applicant is 
seeking eligibility.
    (1) If seeking CVO or CPO QS/IFQ, complete paragraphs (c)(2)(i)(B), 
(c)(2)(ii)(D) if applicable, (c)(2)(ii)(E), and (c)(2)(ii)(F) of this 
section;
    (2) If seeking CVC or CPC QS/IFQ, complete paragraphs (c)(2)(i)(B), 
(c)(2)(ii)(C), (c)(2)(ii)(E), and (c)(2)(ii)(F) of this section;
    (3) If seeking PQS/IPQ, complete paragraphs (c)(3)(iii)(B) and 
(c)(2)(iii)(F) of this section;
    (B) Applicant information. (1) Name and NMFS Person ID, date of 
birth, and social security number or tax ID number;
    (2) Permanent business mailing address, business telephone number, 
business facsimile number, and e[hyphen]mail address (if available) of 
the applicant. A temporary business mailing address may be provided in 
addition to the permanent business mailing address.
    (3) Indicate (YES or NO) whether the applicant is a U.S. citizen or 
U.S. corporation, partnership or other business entity. Applicants for 
CVO, CPO, CVC or CPC QS (and associated IFQ) must be U.S. Citizens or 
U.S. Corporations, Partnerships or Other Business Entity. Applicants 
for PQS (and associated IPQ) are not required to be U.S. Citizens.
    (C) Eligibility for CVC or CPC shares. Indicate (YES or NO) whether 
this transfer eligibility certificate (TEC) is intended for a person 
who wishes to buy CVC or CPC QS/IFQ. If YES, provide evidence of at 
least one delivery of a crab species in any crab QS fishery in the 365 
days prior to submission of this form. Acceptable evidence of such 
delivery shall be limited to an ADF&G fish ticket imprinted with 
applicant's State of Alaska permit card and signed by the applicant, an 
affidavit from the vessel owner, or a signed receipt for an IFQ crab 
landing on which applicant was acting as the permit holder's crab IFQ 
hired master.
    (D) U.S. Corporations, partnerships, or business entities. (1) 
Indicate (YES or NO) whether this application is submitted by a CDQ 
Group. If YES, complete paragraph (c)(2)(ii)(F) of this section;
    (2) Indicate (YES or NO) whether this application is submitted on 
behalf of a corporation, partnership or other business entity (not 
including CDQ groups). If YES:
    (i) At least one member of the corporation, partnership or other 
business entity that is applying to receive this TEC must provide 
evidence of at least 150 days as part of a harvesting crew in any U.S. 
commercial fishery. Identify the individual owner that meets the 
criteria and complete paragraph (c)(2)(D) of this section, providing 
this individual's commercial fishing experience; Name, NMFS person ID, 
and SSN; and Business mailing address, business telephone number, and 
business facsimile number;
    (ii) If a corporation, partnership, or other business entity, the 
applicant also must submit documentation showing at least 20 percent 
interest in the corporation, partnership, or other entity.
    (E) Commercial fishing experience. (1) Species; enter any targeted 
species in a U.S. commercial fishery;
    (2) Gear Type; enter any gear type used to legally harvest in a 
U.S. commercial fishery;
    (3) Location; enter actual regulatory, statistical, or geographic 
harvesting location;
    (4) Starting date and ending date of claimed fishing period (MMYY);
    (5) Number of actual days spent harvesting crab;
    (6) Duties performed while directly involved in the harvesting of 
crab (be specific):
    (7) Name and ADF&G vessel registration number or USCG documentation 
number of the vessel upon which above duties were performed;
    (8) Name of vessel owner;
    (9) Name of vessel operator;
    (10) Reference name. Enter the name of a person (other than 
applicant) who is able to verify the above experience;
    (11) Reference's relationship to applicant;
    (12) Reference's business mailing address and telephone number.
    (F) Applicant certification. (1) Printed name and signature of 
applicant and date signed;
    (2) Notary Public signature, date commission expires, and notary 
stamp or seal.
    (G) Verification that the applicant applying for eligibility to 
receive crab QS/IFQ or PQS/IPQ by transfer has submitted an EDR if 
required to do so under Sec.  680.6;
    (H) A non[hyphen]profit entity seeking approval to receive crab QS 
or IFQ by transfer on behalf of a ECC must first complete an 
Application to Become an ECCO (see paragraph (c)(4) of this section).
    (3) Designation of an ECCO. (i) The appropriate governing body of 
each ECC must designate a non[hyphen]profit organization to serve as 
the ECCO for that ECC. This designation must be submitted by the 
non[hyphen]profit organization in its Application to Become an ECCO to 
transfer and hold QS on the behalf of that ECC.
    (ii) If the non[hyphen]profit entity is approved by NMFS to serve 
as the ECCO, then the appropriate governing body of the ECC must 
authorize the transfer of any QS from the ECCO.
    (iii) The appropriate governing body for purposes of designating a 
non[hyphen]profit organization for the Application to Become an ECCO, 
or approve the transfer of any QS from an ECCO in each ECC is as 
follows:
    (A) If the ECC is also a community eligible to participate in the 
Western Alaska CDQ Program, then the CDQ group is the appropriate 
governing body;
    (B) If the ECC is not a CDQ community and is incorporated as a 
municipality and is not located in a borough, then the municipal 
government is the appropriate governing body;
    (C) If the ECC is not a CDQ community and is incorporated as a 
municipality and also located in a borough, then the municipality and 
borough jointly serve as the appropriate governing body and both must 
agree to designate the same non[hyphen]profit organization to serve as 
the ECCO or authorize the transfer of QS from the ECCO; and
    (D) If the ECC is not a CDQ community and is not incorporated as a 
municipality and is in a borough, then the borough in which the ECC is 
located is the appropriate governing body .
    (iv) The appropriate governing body in each ECC may designate only 
one non[hyphen]profit organization to serve as the ECCO for that 
community at any one time.
    (4) Application to Become an ECCO. Prior to initially receiving QS 
or IFQ by transfer on behalf of a specific ECC, a non[hyphen]profit 
organization that intends to represent that ECC as a ECCO must submit 
an Application to Become an ECCO and have that application approved by 
the Regional Administrator.
    (i) Contents of Application--(A) Applicant identification. (1) Name 
of the non-profit organization, taxpayer identification number, and 
NMFS Person ID;

[[Page 63302]]

    (2) Permanent business mailing address;
    (3) Name of contact persons, business phone, business fax, and 
e[hyphen]mail address (if available);
    (4) Name of community or communities represented by the 
non[hyphen]profit organization;
    (5) Name of contact person for the governing body of each community 
represented.
    (B) Required attachments to the application. (1) The articles of 
incorporation under the laws of the State of Alaska for that 
non[hyphen]profit organization;
    (2) A statement indicating the ECC(s) represented by that 
non[hyphen]profit organization for purposes of holding QS;
    (3) The bylaws of the non[hyphen]profit organization;
    (4) A list of key personnel of the management organization 
including, but not limited to, the board of directors, officers, 
representatives, and any managers;
    (5) Additional contact information of the managing personnel for 
the non-profit organization and resumes of management personnel;
    (6) A description of how the non[hyphen]profit organization is 
qualified to manage QS on behalf of the ECC it is designated to 
represent, and a demonstration that the non[hyphen]profit organization 
has the management skills and technical expertise to manage QS and IFQ; 
and
    (7) A statement describing the procedures that will be used to 
determine the distribution of IFQ to residents of the ECC represented 
by that non[hyphen]profit organization, including; procedures used to 
solicit requests from residents to lease IFQ, and criteria used to 
determine the distribution of IFQ leases among qualified community 
residents and the relative weighting of those criteria.
    (C) Applicant certification. Printed name of applicant or 
authorized agent, notarized signature, and date signed, Notary Public 
signature and date when commission expires, and notary seal or stamp. 
If authorized agent, proof of authorization to act on behalf of the 
applicant must be provided with the application.
    (d) Application for Transfer of Crab QS/IFQ or PQS/IPQ--(1) 
General. (i) An Application for Transfer of Crab QS/IFQ or PQS/IPQ must 
be approved by the Regional Administrator before the transferee may use 
the IFQ or IPQ to harvest or process crab QS species.
    (ii) An Application for Transfer of Crab QS/IFQ or PQS/IPQ will not 
be approved until the Regional Administrator has reviewed the transfer 
agreement signed by the parties to the transaction. The Regional 
Administrator shall provide an Application for Transfer of Crab QS/IFQ 
or PQS/IPQ to any person on request or on the Internet at http://www.fakr.noaa.gov/. Persons who submit an Application for Transfer of 
Crab QS/IFQ or PQS/IPQ for approval will receive notification of the 
Regional Administrator's decision to approve or disapprove the 
application, and if applicable, the reason(s) for disapproval, by mail, 
unless another communication mode is requested on the application.
    (2) Contents. This application for transfer must be completed, 
signed, and notarized by both parties. A complete Application for 
Transfer of Crab QS/IFQ or PQS/IPQ must include the following 
information:
    (i) Type of transfer. (A) Indicate type of transfer requesting;
    (B) Indicate (YES or NO) whether this is a transfer of IFQ or IPQ 
only due to a hardship (medical emergency, etc.). If YES, provide 
documentation supporting the need for such transfer (doctor's 
statement, etc.).
    (C) If requesting transfer of PQS/IPQ, applications involving the 
transfer of PQS or IPQ (if applicable) outside the community in which 
the processing facility resides must include a statement by an 
authorized representative of that community indicating that the 
community has been offered the right of first refusal (ROFR) on the 
sale of the PQS or IPQ under the requirements of this section.
    (ii) Transferor (Seller) information. (A) The name and NMFS Person 
ID of the transferor (person currently holding the QS, PQS, IFQ, or 
IPQ), social security number or tax ID number;
    (B) Permanent business mailing address, business telephone, 
business facsimile, and business e[hyphen]mail address, and the 
transferor may also provide a temporary address for each transaction in 
addition to the permanent business mailing address;
    (iii) Transferee (Buyer) information. (A) The name and NMFS Person 
ID of the transferee (person receiving QS, PQS or IFQ, IPQ by 
transfer), social security number or tax ID number;
    (B) Permanent business mailing address, business telephone, 
business facsimile, and business e[hyphen]mail address, and the 
transferee may also provide a temporary address for each transaction in 
addition to the permanent business mailing address;
    (iv) Transfer of QS or PQS and IFQ or IPQ. Complete the following 
information if QS or PQS and IFQ or IPQ are to be transferred together 
or if transferring only QS or PQS.
    (A) QS species;
    (B) QS type;
    (C) Range of serial numbers to be transferred (shown on QS 
certificate) numbered to and from;
    (D) Number of QS units to be transferred;
    (E) Transferor (seller) IFQ or IPQ permit number;
    (F) Indicate (YES or NO) whether remaining IFQ or IPQ pounds for 
the current fishing year should be transferred; if NO, specify the 
number of pounds to be transferred;
    (G) If this is a transfer of CPO QS, indicate whether being 
transferred as CPO QS or CVO QS and PQS;
    (H) If CPO QS is being transferred as both CVO QS and PQS, specify 
number of units of each;
    (I) If CPO QS is being transferred as CVO QS, select region for 
which the QS is designated;
    (v) Transfer of IFQ or IPQ only. Complete the following information 
if transferring IFQ or IPQ only.
    (A) QS species;
    (B) IFQ/IPQ type;
    (C) Range of serial numbers shown on QS certificate, numbered to 
and from;
    (D) Number of IFQ or IPQ pounds to be transferred;
    (E) Transferor (seller) IFQ or IPQ permit number; and
    (F) Crab fishing year of the transfer.
    (vi) Price paid for the QS, PQS and/or IFQ, IPQ. The transferor 
must provide the following information:
    (A) Indicate whether (YES or NO) a broker was used for this 
transaction; If YES, provide dollar amount paid in brokerage fees or 
percentage of total price;
    (B) Provide the total amount paid for the QS/IFQ or PQS/IPQ in this 
transaction, including all fees;
    (C) Provide the price per unit of QS (price divided by QS units) 
and the price per pound (price divided by IFQ or IPQ pounds) of IFQ or 
IPQ;
    (D) Indicate all reasons that apply for transferring the QS/IFQ or 
PQS/IPQ.
    (vii) Method of financing for the QS, PQS and/or IFQ, IPQ. The 
transferee must provide the following information:
    (A) Indicate (YES or NO) whether QS/IFQ or PQS/IPQ purchase will 
have a lien attached; if YES, provide the name of lien holder;
    (B) Indicate one primary source of financing for this transfer;
    (C) Indicate the sources used to locate the QS, PQS and/or IFQ, IPQ 
being transferred;
    (D) Indicate the relationship, if any, between the transferor and 
the transferee
    (E) Indicate (YES or NO) whether an agreement exists to return the 
QS/IFQ or

[[Page 63303]]

PQS/IPQ to the transferor or any other person, or with a condition 
placed on resale; If YES, explain;
    (F) Attach a copy of the terms of agreement for the transfer, the 
bill of sale for QS or PQS, or lease agreement for IFQ or IPQ.
    (G) Indicate whether an EDR was submitted, if required by Sec.  
680.6, and
    (H) Whether all fees have been paid.
    (viii) Notary information--(A) Certification of transferor. (1) 
Printed name and signature of transferor or authorized agent. If 
authorized agent, proof of authorization to act on behalf of the 
transferor must be provided with the application.
    (2) Date signed; and
    (3) Notary Public signature, date commission expires, and notary 
stamp or seal.
    (B) Certification of transferee. (1) Printed name and signature of 
transferor or authorized agent. If authorized agent, proof of 
authorization to act on behalf of the transferee must be provided with 
the application.
    (2) Date signed;
    (3) Notary Public signature, date commission expires, and notary 
stamp or seal;
    (C) Certification of authorized representative of community holding 
first ROFR. (1) Printed name and signature of authorized community 
representative;
    (2) Date signed;
    (3) Printed name of community; and
    (4) Notary Public signature, date commission expires, and notary 
stamp or seal.
    (ix) Attachments to the application and other conditions to be met. 
(A) Indicate whether the person applying to make or receive the QS, 
PQS, IFQ or IPQ transfer has submitted an EDR if required to do so 
under Sec.  680.6; and
    (B) Whether the person applying to make or receive the QS, PQS, IFQ 
or IPQ transfer has paid all fees, as required by Sec.  680.44.
    (C) A written acknowledgment by an ECC entity for transfer of PQS 
or IPQ under paragraphs (j)(3) through (j)(5) of this section.
    (D) All individuals applying to receive CVC QS or IFQ or CPC QS or 
IFQ by transfer must submit proof of at least one delivery of a crab QS 
species in any crab QS fishery in the 365 days prior to submission to 
NMFS of the Application for Transfer of QS/IFQ or PQS/IPQ. Proof of 
this landing is:
    (1) Signature of the applicant on an ADF&G Fish Ticket; or
    (2) An affidavit from the vessel owner attesting to that 
individual's participation as a member of a fish harvesting crew on 
board a vessel during a landing of a crab QS species within the 365 
days prior to submission of an Application for Transfer of Crab QS/IFQ 
or PQS/IPQ.
    (e) Approval criteria for an Application for Transfer of Crab QS/
IFQ or PQS/IPQ. (1) Except as provided in paragraph (i) of this 
section, an Application for Transfer of QS/IFQ or PQS/IPQ will not be 
approved until the Regional Administrator has determined that:
    (i) The person applying to receive the QS, PQS, IFQ or IPQ meets 
the requirements of eligibility in paragraph (c) of this section;
    (ii) The person applying for transfer and the person applying to 
receive QS or IFQ/IPQ have their original notarized signatures on the 
application;
    (iii) No fines, civil penalties, or other payments due and owing, 
or outstanding permit sanctions, resulting from Federal fishery 
violations involving either party exist;
    (iv) The person applying to receive QS, PQS, IFQ or IPQ currently 
exists;
    (v) The transfer would not cause the person applying to receive the 
QS, PQS, IFQ or IPQ to exceed the use limits in this section;
    (vi) The person applying to make or receive the QS, PQS, IFQ or IPQ 
transfer has paid all IFQ or IPQ fees described under Sec.  680.44; or 
has timely appealed the IAD of underpayment as described under Sec.  
680.44;
    (vii) The person applying to make or receive the QS, PQS, IFQ or 
IPQ transfer has submitted an EDR if required to do so under Sec.  
680.6;
    (viii) In the case of the transfer of PQS or IPQ from an ECC, that 
the provisions for ROFR under paragraph (j) of this section have been 
met;
    (ix) In the case of an individual applying to receive CVC QS or IFQ 
or CPC QS or IFQ, the individual has demonstrated active participation 
in a crab QS fishery in the 365 days prior to the submission of the 
application for transfer;
    (x) Other pertinent information requested on the application for 
transfer has been supplied to the satisfaction of the Regional 
Administrator.
    (f) Application for Transfer of Crab QS/IFQ to or from an ECCO. (1) 
An Application for Transfer of Crab QS/IFQ to or from an ECCO must be 
approved by the Regional Administrator before the transferee may use 
the IFQ to harvest or process crab QS species.
    (2) An Application for Transfer of Crab QS/IFQ to or from an ECCO 
will not be approved until the Regional Administrator has reviewed and 
approved the transfer agreement signed by the parties to the 
transaction. The Regional Administrator shall provide an Application 
for Transfer of Crab QS/IFQ to or from an ECCO to any person on request 
or on the Internet at http://www.fakr.noaa.gov/. Persons who submit an 
Application for Transfer of Crab QS/IFQ to or from an ECCO for approval 
will receive notification of the Regional Administrator's decision to 
approve or disapprove the application, and if applicable, the reason(s) 
for disapproval, by mail, unless another communication mode is 
requested on the application.
    (3) Contents. A complete Application for Transfer of Crab QS/IFQ to 
or from an ECCO includes the following:
    (i) General requirements. (A) This form may only be used if an ECCO 
is the proposed transferor (seller) or the proposed transferee (buyer) 
of the QS or IFQ.
    (B) The party to whom a ECCO is seeking to transfer the QS/IFQ must 
hold a Transfer Eligibility Certificate (TEC).
    (C) If the ECCO is applying to permanently transfer QS, a 
representative of the community on whose behalf the QS is held must 
sign the application.
    (D) If authorized representative represents either the transferor 
or transferee, proof of authorization to act on behalf of transferor or 
transferee must be attached to the application.
    (ii) Transferor (seller) information. The name, NMFS Person ID, 
social security number or Tax ID, permanent business mailing address, 
business telephone, business facsimile, and business e[hyphen]mail 
address of the Transferor (person currently holding the QS or IFQ), and 
if transferor is an ECCO, the name of ECC represented by the ECCO. The 
transferor may also provide a temporary address for each transaction in 
addition to the permanent business mailing address;
    (iii) Transferee (buyer) information. The name, NMFS Person ID, 
social security number or Tax ID, permanent business mailing address, 
business telephone, business facsimile, and business e[hyphen]mail of 
the transferee (person receiving QS or IFQ by transfer), and if 
transferee is an ECCO, name of community (ECC) represented by the ECCO. 
The transferee may also provide a temporary address for each 
transaction in addition to the permanent business mailing address;
    (iv) Identification of QS/IFQ to be transferred. Complete the 
following information if QS and IFQ are to be transferred together or 
if transferring only QS.
    (A) QS species;
    (B) QS type;

[[Page 63304]]

    (C) Number of QS or IFQ units to be transferred;
    (D) Total QS units;
    (E) Number of IFQ pounds;
    (F) Range of serial numbers to be transferred (shown on QS 
certificate) numbered to and from;
    (G) Name of community to which QS are currently assigned;
    (H) Indicate (YES or NO) whether remaining IFQ pounds for the 
current fishing year should be transferred; if NO, specify the number 
of pounds to be transferred;
    (v) Transfer of IFQ only. (A) IFQ permit number and year of permit;
    (B) Actual number of IFQ pounds to be transferred.
    (vi) Transferor Information, if an ECCO. Reason(s) for transfer:
    (A) ECCO management and administration;
    (B) Fund additional QS purchase;
    (C) Participation by community residents;
    (D) Dissolution of ECCO; and
    (E) Other (please specify).
    (vii) Transferor Information. The transferor must provide the 
following information:
    (A) Whether (YES or NO) a broker was used for this transaction; If 
YES, provide dollar amount paid in brokerage fees or percentage of 
total price;
    (B) Provide the total amount paid for the QS/IFQ in this 
transaction, including all fees;
    (C) Provide the price per unit of QS (price divided by QS units) 
and the price per pound (price divided by IFQ or IPQ pounds) of IFQ or 
IPQ;
    (D) Indicate all reasons that apply for transferring the QS/IFQ.
    (viii) Transferee information. The transferee must provide the 
following information:
    (A) Indicate (YES or NO) whether QS/IFQ purchase will have a lien 
attached; if YES, provide the name of lien holder;
    (B) Indicate one primary source of financing for this transfer;
    (C) Indicate the sources used to locate the QS or IFQ being 
transferred;
    (D) Indicate the relationship, if any, between the transferor and 
the transferee;
    (E) Indicate (YES or NO) whether an agreement exists to return the 
QS or IFQ to the transferor or any other person, or with a condition 
placed on resale; If YES, explain;
    (F) Attach a copy of the terms of agreement for the transfer, the 
bill of sale for QS, or lease agreement for IFQ.
    (ix) Certification of transferor. (A) Printed name and signature of 
transferor or authorized agent. If authorized agent, proof of 
authorization to act on behalf of the transferor must be provided with 
the application.
    (B) Date signed;
    (C) Notary Public signature, date commission expires, and notary 
stamp or seal;
    (x) Certification of transferee. (A) Printed name and signature of 
transferor or authorized agent. If authorized agent, proof of 
authorization to act on behalf of the transferee must be provided with 
the application.
    (B) Date signed;
    (C) Notary Public signature, date commission expires, and notary 
stamp or seal;
    (xi) Certification of authorized representative of community. (A) 
Printed name, title and signature of authorized community 
representative;
    (B) Date signed;
    (C) Printed name of community;
    (D) Notary Public signature, date commission expires, and notary 
stamp or seal;
    (4) Attachments to the application and other conditions to be met. 
(i) Whether the person applying to make or receive the QS, PQS, IFQ or 
IPQ transfer has submitted an EDR if required to do so under Sec.  
680.6;
    (ii) Whether the person applying for transfer and the person 
applying to receive the QS or IFQ/IPQ have paid all fees, as required 
by Sec.  680.44.
    (iii) A copy of the terms of agreement for the transfer, the bill 
of sale for QS or PQS, or lease agreement for IFQ or IPQ.
    (iv) An affirmation that the individual receiving IFQ from an ECCO 
has been a permanent resident in the ECC for a period of 12 months 
prior to the submission of the Application for Transfer QS/IFQ to or 
from an ECCO on whose behalf the ECCO holds QS.
    (v) Authorization of the appropriate governing body of an ECC, for 
any transfer of QS by the ECCO that holds QS on behalf of that ECC.
    (g) Approval criteria for an Application for Transfer of Crab QS/
IFQ to or from an ECCO. In addition to the criteria required for 
approval under Sec.  680.41(e), the following criteria are also 
required:
    (1) The ECCO applying to receive or transfer crab QS has submitted 
a complete annual report(s) required by Sec.  680.5;
    (2) The ECCO applying to transfer crab QS has provided information 
on the reasons for the transfer as described in paragraph (e) of this 
section; and
    (3) An individual applying to receive IFQ from an ECCO is a 
permanent resident of the ECC in whose name the ECCO is holding QS.
    (h) Inter[hyphen]cooperative transfer--(1) Application. (i) A crab 
harvesting cooperative may only transfer its IFQ to another crab 
harvesting cooperative. Crab harvesting cooperatives wishing to engage 
in an inter[hyphen]cooperative transfer must complete an Application 
for Inter[hyphen]cooperative Transfer to transfer crab IFQ between crab 
harvesting cooperatives.
    (ii) Contents. A complete application consists of the following 
items.
    (A) Identification of Transferor (lessor). The name, NMFS Person 
ID, date of incorporation, Tax ID, name of crab harvesting 
cooperative's representative, permanent business mailing address, 
business telephone, business facsimile, and business e[hyphen]mail of 
the crab harvesting cooperative transferor. A temporary mailing address 
for each transaction may also be provided in addition to the permanent 
business mailing address.
    (B) Identification of transferee (lessee). The name, NMFS Person 
ID, date of incorporation, Tax ID, name of crab harvesting 
cooperative's representative, permanent business mailing address, 
business telephone, business facsimile, and business e[hyphen]mail of 
the crab harvesting cooperative transferee. A temporary mailing address 
for each transaction may also be provided in addition to the permanent 
business mailing address.
    (C) Crab cooperative IFQ to be transferred. The identification of 
the crab IFQ being transferred, including the type of crab cooperative 
IFQ being transferred, crab cooperative permit number, year that permit 
was issued, whether (YES or NO) all remaining pounds for the current 
fishing year are to be transferred, if NO, specify number of pounds to 
be transferred
    (D) Transferor Information. Indicate whether (YES or NO) a broker 
was used . If YES, indicate dollar amount paid in brokerage fees or 
percentage of total price, the total amount being paid and the price 
per pound.
    (E) Certification of Transferor. Printed name and signature of 
transferor or authorized agent and date signed, signature of Notary 
Public, date commission expires, and notary stamp or seal. If 
authorized agent, proof of authorization to act on behalf of the 
transferor must be provided with the application.
    (F) Certification of Transferee. Printed name and signature of 
transferee or authorized agent and date sign, signature of Notary 
Public, date commission expires, and notary stamp or seal. If 
authorized agent, proof of authorization to act on behalf of the 
transferee must be provided with the application.

[[Page 63305]]

    (iii) Whether the person applying to make or receive the IFQ 
transfer has paid all fees, as required by Sec.  680.44.
    (iv) Original notarized signatures of both the transferee and 
transferor or authorized representative.
    (2) Member of a crab harvesting cooperative receiving additional 
crab QS and/or IFQ by transfer. A member of a crab harvesting 
cooperative may receive additional crab QS and/or IFQ by transfer in 
accordance with transfer and use provisions at Sec. Sec.  680.41 and 
680.42. A member of a crab harvesting cooperative may receive a 
separate annual IFQ permit or may transfer the IFQ to the members's 
cooperative.
    (3) Member of a crab harvesting cooperative transferring crab QS to 
someone outside the cooperative. A member of a crab harvesting 
cooperative may transfer any crab QS held by that person to any person 
qualified to receive crab QS by transfer as provided in this section.
    (4) Member of a crab harvesting cooperative transferring the IFQ 
resulting from QS to a person outside the cooperative. Once a person 
joins a cooperative, that person may not transfer IFQ resulting from 
that person's QS to anyone outside the cooperative. The cooperative may 
transfer the IFQ it controls on the behalf of a member of the 
cooperative to another cooperative if an Application for 
Inter[hyphen]cooperative Transfer has been submitted and approved by 
NMFS.
    (i) QS, PQS, IFQ, or IPQ accounts. QS, PQS, IFQ, or IPQ accounts 
affected by a transfer approved by the Regional Administrator will 
change on the date of approval. Any necessary IFQ or IPQ permits will 
be sent with the notification of approval if the receiver of the IFQ or 
IPQ permit has completed an Annual Application for Crab IFQ/IPQ Permit 
for the current fishing year as required under Sec.  680.4.
    (j) Eligible crab community right of first refusal (ROFR)--(1) 
Applicability--(i) Exempt Fisheries. PQS and IPQ issued for the BST, 
WAG, or WAI crab QS fisheries are exempt from ROFR provisions.
    (ii) Eligible Crab Communities (ECCs). The ROFR extends to the ECCs 
and their associated governing bodies. The ROFR may be exercised by the 
ECC entity representing that ECC.
    (2) Community representation--(i) CDQ Communities. Any ECC that is 
also a CDQ community shall designate the CDQ group to which it is a 
member as the ECC entity in the exercise of any ROFR.
    (ii) Non[hyphen]CDQ communities. (A) Any ECC that is a 
non[hyphen]CDQ community must designate an ECC entity that will 
represent the community in the exercise of ROFR at least 30 days prior 
to the ending date for the initial application period for the crab QS 
program specified in the Federal Register.
    (B) The ECC entity eligible to exercise the right of first refusal 
on behalf of an ECC will be identified by the governing body (s) of the 
ECC. If the ECC is incorporated under the laws of the State of Alaska, 
then the municipality is the governing body; if the ECC is incorporated 
and within an incorporated borough, then the municipality and borough 
are the governing bodies and must agree to designate the same ECC 
entity; if the ECC is not incorporated and in an incorporated borough, 
then the borough is the governing body.
    (C) Each ECC may designate only one ECC entity to represent that 
community in the exercise of ROFR at any one time through a statement 
of support from the governing body of the ECC. That statement of 
support must be submitted to the Regional Administrator, National 
Marine Fisheries Service, Post Office Box 21668, Juneau, Alaska 99802, 
as a resolution from the City Council or other municipal body 
incorporated under the laws of the State of Alaska for that community 
at least 3 days prior to the ending date of the initial application 
period for the crab QS program under Sec.  680.40. The ECC entity 
eligible to exercise ROFR on behalf of an ECC must be identified in the 
contract submitted to NMFS as part of the application for PQS under 
Sec.  680.40(m).
    (D) The ECC ROFR is not assignable by the ECC entity.
    (3) Transfer of PQS or IPQ from an ECC. Any transfer of PQS or IPQ 
from an ECC will not be approved by NMFS unless the ECC entity 
representing the ECC is a signatory on the contract submitted under 
Sec.  680.40(m) and acknowledges in writing to the Regional 
Administrator that the community does not wish to exercise ROFR.
    (4) Transfer of PQS within an ECC. Any transfer of PQS within an 
ECC will not be approved by NMFS unless the ECC entity representing the 
ECC is a signatory on a contract submitted under Sec.  680.40(m) to 
exercise ROFR.
    (5) Restrictions on transfer of PQS out of North Gulf of Alaska 
communities--(i) Applicability. Any community in the Gulf of Alaska 
north of a line at 56[deg]20' N. lat.
    (ii) Notification of PQS transfer. A PQS holder proposing to 
transfer PQS for use in processing outside any community identified 
under this paragraph must notify the ECC entity designated by the City 
of Kodiak and Kodiak Island Borough under paragraph (j)(2) of this 
section 30 days prior to the intended transfer of PQS out of the 
community.
    (iii) ROFR in the North Gulf of Alaska. The ECC entity designated 
by the City of Kodiak and Kodiak Island Borough will have the 
opportunity to exercise ROFR to purchase from a PQS holder any PQS 
proposed to be transferred for use in processing outside the community 
identified under paragraph (j)(5)(i) of this section consistent with 
contract provisions under Sec.  680.40(m).
    (k) Transfer of QS, PQS, IFQ or IPQ with restrictions. If QS, PQS, 
IFQ or IPQ must be transferred as a result of a court order, operation 
of law, or as part of a security agreement, but the person receiving 
the QS, PQS, IFQ or IPQ by transfer does not meet the eligibility 
requirements of this section, the Regional Administrator will approve 
an Application for Transfer of Crab QS/IFQ or PQS/IPQ with 
restrictions. The Regional Administrator will not assign IFQ or IPQ 
resulting from the restricted QS or PQS to any person. IFQ or IPQ with 
restrictions may not be used for harvesting or processing species 
covered under this program. The QS, PQS, IFQ or IPQ will remain 
restricted until:
    (1) The person who received the QS, PQS, IFQ or IPQ with 
restrictions meets the eligibility requirements of this section and the 
Regional Administrator approves an application for eligibility for that 
person; or
    (2) The Regional Administrator approves the application for 
transfer from the person who received the QS, PQS, IFQ or IPQ with 
restrictions to a person who meets the requirements of this section.
    (l) Transfer of CVO, CPO, CVC, CPC QS or PQS--(1) General. PQS or 
QS may be transferred, with approval of the Regional Administrator, to 
persons qualified to receive PQS or QS by transfer. However, the 
Regional Administrator will not approve a transfer of any type of PQS 
or QS that would cause a person to exceed the maximum amount of PQS or 
QS allowable under the use limits provided for in Sec.  680.42, except 
as provided for under Sec.  680.41(k).
    (2) CVO QS. Notwithstanding QS use limitations under Sec.  680.42, 
CVO QS may be transferred to any person eligible to receive CVO or CPO 
QS as defined under paragraph (c) of this section.
    (3) CPO QS. Persons holding CPO QS may transfer CPO QS as CVO QS 
and PQS to eligible recipients under the following provisions:
    (i) Each unit of CPO QS shall yield 1 unit of CVO QS, and 0.9 units 
of PQS; and

[[Page 63306]]

    (ii) The CVO QS and PQS derived from the transfer of CPO QS may be 
transferred separately, except that these shares must receive the same 
regional designation. The regional designation shall be determined at 
the time of transfer by the person receiving the CVO QS.
    (4) CVC or CPC QS. Notwithstanding QS use limitations under Sec.  
680.42, CVC or CPC QS may be transferred to any person eligible to 
receive CVC or CPC QS as defined under paragraph (c) of this section. 
CVC and CPC QS may only be used in the sector for which it is 
originally designated.
    (m) Transfer of IFQ or IPQ by Lease--(1) IFQ derived from CVO or 
CPO QS. IFQ derived from CVO or CPO QS may be transferred by lease 
until June 30, 2010. IFQ derived from CVO or CPO QS must be leased:
    (i) If the IFQ will be used on a vessel on which the QS holder has 
less than a 10[hyphen]percent ownership interest; or
    (ii) If the IFQ will be used on a vessel on which the QS holder is 
not present.
    (2) Ownership of a vessel means, for the purposes of this section:
    (i) A sole proprietor; or
    (ii) A relationship between 2 or more entities in which one 
directly or indirectly owns a 10 percent or greater interest in a 
vessel.
    (3) IFQ derived from CVC QS or CPC QS. (i) IFQ derived from CVC or 
CPC QS may be transferred by lease only until June 30, 2008 unless the 
IFQ permit holder demonstrates a hardship.
    (ii) In the event of a hardship, as described at paragraph 
(m)(2)(iii) in this section, a holder of CVC or CPC QS may lease the 
IFQ derived from this QS for the term of the hardship. However, the 
holder of CVC or CPC QS may not lease the IFQ under this provision for 
more than 2 crab fishing years total in any 10 crab fishing year 
period. Such transfers are valid only during the crab fishing year for 
which an IFQ permit is issued and the QS holder must re[hyphen]apply 
for any subsequent transfers.
    (iii) An application for a transfer of IFQ under this provision 
will not be approved unless the QS holder can demonstrate a hardship by 
an inability to participate in the crab QS fisheries because:
    (A) Of a medical condition of the QS holder. The QS holder is 
required to provide documentation of the medical condition from a 
licensed medical doctor who verifies that the QS holder cannot 
participate in the fishery because of the medical condition;
    (B) Of a medical condition involving an individual who requires the 
QS holder's care. The QS holder is required to provide documentation of 
the individual's medical condition from a licensed medical doctor. The 
QS holder must verify that he or she provides care for that individual 
and that the QS holder cannot participate in the fishery because of the 
medical condition of that individual;
    (C) Of the total or constructive physical loss of a vessel. The QS 
holder must provide evidence that the vessel was lost and could not be 
replaced in time to participate in the fishery for which the person is 
claiming a hardship.
    (4) IPQ derived from PQS. IPQ derived from PQS may be leased.
    (n) Survivorship transfer privileges. (1) On the death of an 
individual who holds QS or PQS, the surviving spouse or, in the absence 
of a surviving spouse, a beneficiary designated pursuant to paragraph 
(m)(3) of this section, receives all QS, PQS and IFQ or IPQ held by the 
decedent by right of survivorship, unless a contrary intent was 
expressed by the decedent in a will. The Regional Administrator will 
approve an application for transfer to the surviving spouse or 
designated beneficiary when sufficient evidence has been provided to 
verify the death of the individual.
    (2) A QS or PQS holder may provide the Regional Administrator with 
the name of the designated beneficiary from the QS or PQS holder's 
immediate family to receive survivorship transfer privileges in the 
event of the QS or PQS holders death and in the absence of a surviving 
spouse.
    (3) The Regional Administrator will approve, for 3 calendar years 
following the date of the death of an individual, an Application for 
Transfer of Crab QS/IFQ or PQS/IPQ from the surviving spouse or, in the 
absence of a surviving spouse, a beneficiary from the QS or PQS 
holder's immediate family designated pursuant to paragraph (m)(3) of 
this section to a person eligible to receive IFQ or IPQ under the 
provisions of this section, notwithstanding the limitations on 
transfers of IFQ and IPQ in this section and the use limitations under 
Sec.  680.42.
    (o) Notification of Approval or Disapproval of Applications. (1) 
Applicants submitting any application under Sec.  680.41 will be 
notified by mail of the Regional Administrator's approval of an 
application. If the Regional Administrator will notify applicants if an 
application submitted under Sec.  680.41 is disapproved. This 
notification of disapproval will include:
    (i) The disapproved Application for Eligibility to Receive QS/IFQ 
or PQS/IPQ by Transfer; and
    (ii) An explanation why the application was not approved.
    (2) Reasons for disapproval. Reasons for disapproval of an 
application include, but are not limited to:
    (i) U.S. citizenship, where required;
    (ii) Failure to meet minimum requirements for sea time as a member 
of a harvesting crew;
    (iii) An incomplete application;
    (iv) An untimely application;
    (v) Fines, civil penalties, or other payments due and owing, or 
outstanding permit sanctions resulting from Federal fishery violations; 
or
    (vi) Fees owed but not paid as assessed under Sec.  680.44.
    (3) Application deadline. The Regional Administrator will not 
approve any transfers of QS, PQS, IFQ, or IPQ in any crab QS fishery 
from August 1 until the date of the issuance of IFQ or IPQ for that 
crab QS fishery.


Sec.  680.42  Limitations on use of QS, PQS, IFQ, and IPQ.

    (a) QS, PQS, IFQ and IPQ regional designation and IFQ class. The 
QS, PQS, IFQ or IPQ specified for one crab QS fishery may not be used 
to harvest or process crab in any other crab QS fishery.
    (b) QS and IFQ use caps--(1) General. Separate and distinct QS and 
IFQ use caps apply to all QS and IFQ categories pertaining to a given 
crab QS fishery with the following provisions:
    (i) A person who receives an initial allocation of QS that exceeds 
the use cap listed in paragraph (b)(2) of this section are limited to 
hold no more than that amount. A person will not be issued QS in excess 
of the use cap established in this section based on QS derived from 
landings attributed to an LLP license obtained via transfer after June 
10, 2002;
    (ii) QS and IFQ use caps shall be based on the initial quota share 
pools used to determine initial allocations of QS;
    (iii) Non[hyphen]individuals holding QS will be required to 
provide, on an annual basis, ownership information as required in the 
Annual Application for Crab IFQ/IPQ Permit.
    (2) Except for persons who hold PQS, or a CDQ group, a person may 
not, individually or collectively, hold:
    (i) QS in amounts in excess of the amounts specified in the 
following table, unless that person's QS was received in the initial 
allocation:

[[Page 63307]]



------------------------------------------------------------------------
                                  CVO/CPO Use Cap in  CVC/CPC Use Cap in
            Fishery                    QS Units            QS Units
------------------------------------------------------------------------
 (A) 1.0 percent of the initial  3,880,000            120,000
 QS pool for BBR
------------------------------------------------------------------------
(B) 1.0 percent of the initial   9,700,000            300,000
 QS pool for BSS
------------------------------------------------------------------------
(C) 1.0 percent of the initial   1,940,000            60,000
 QS pool for BST
------------------------------------------------------------------------
(D) 2.0 percent of the initial   582,000              18,000
 QS pool for PIK
------------------------------------------------------------------------
(E) 2.0 percent of the initial   582,000              18,000
 QS pool for SMB
------------------------------------------------------------------------
(F) 10.0 percent of the initial  970,000              30,000
 QS pool for EAG
------------------------------------------------------------------------
(G) 10.0 percent of the initial  3,880,000            120,000
 QS pool for WAG
------------------------------------------------------------------------
(H) 10.0 percent of the initial  5,820,000            180,000
 QS pool for WAI
------------------------------------------------------------------------

    (ii) Use IFQ in excess of the amount of IFQ that is yielded from 
the QS caps in paragraph (b)(2)(i) of this section, unless that IFQ is 
yielded from QS that was received by that person in the initial 
allocation of QS for that crab QS fishery.
    (3) A CDQ Group may not:
    (i) Hold QS in excess of more than the amounts of QS specified in 
the following table:

------------------------------------------------------------------------
                                             CDQ CVO/CPO Use Cap in QS
                 Fishery                               Units
------------------------------------------------------------------------
(A) 5.0 percent of the initial QS pool     19,400,000
 for BBR
------------------------------------------------------------------------
(B) 5.0 percent of the initial QS pool     48,500,000
 for BSS
------------------------------------------------------------------------
(C) 5.0 percent of the initial QS pool     9,700,000
 for BST
------------------------------------------------------------------------
(D) 10.0 percent of the initial QS pool    2,910,000
 for PIK
------------------------------------------------------------------------
(E) 10.0 percent of the initial QS pool    2,910,000
 for SMB
------------------------------------------------------------------------
(F) 20.0 percent of the initial QS pool    1,940,000
 for EAG
------------------------------------------------------------------------
(G) 20.0 percent of the initial QS pool    7,760,000
 for WAG
------------------------------------------------------------------------
(H) 20.0 percent of the initial QS pool    11,640,000
 for WAI
------------------------------------------------------------------------

    (ii) Use IFQ in excess of the amount of IFQ that is yielded from 
the QS caps in paragraph (b)(2)(i) of this section, unless that IFQ is 
yielded from QS that was received by that person in the initial 
allocation of QS for that crab QS fishery.
    (4) A person who holds PQS may not individually or collectively:
    (i) Hold QS in excess of the amounts specified in the following 
table:

------------------------------------------------------------------------
                                  CVO/CPO Use Cap in  CVC/CPC Use Cap in
            Fishery                    QS Units            QS Units
------------------------------------------------------------------------
(A) 5.0 percent of the initial   19,400,000           600,000
 QS pool for BBR
------------------------------------------------------------------------
(B) 5.0 percent of the initial   48,500,000           1,500,000
 QS pool for BSS
------------------------------------------------------------------------
(C) 5.0 percent of the initial   9,700,000            300,000
 QS pool for BST
------------------------------------------------------------------------
(D) 5.0 percent of the initial   1,455,000            45,000
 QS pool for PIK
------------------------------------------------------------------------
(E) 5.0 percent of the initial   1,455,000            45,000
 QS pool for SMB
------------------------------------------------------------------------
(F) 5.0 percent of the initial   485,000              15,000
 QS pool for EAG
------------------------------------------------------------------------
(G) 5.0 percent of the initial   1,940,000            60,000
 QS pool for WAG
------------------------------------------------------------------------
(H) 5.0 percent of the initial   2,910,000            90,000
 QS pool for WAI
------------------------------------------------------------------------

    (ii) Use IFQ in excess of the amount of IFQ that is yielded from 
the QS caps in paragraph (b)(2)(i) of this section, unless that IFQ is 
yielded from QS that was received by that person in the initial 
allocation of QS for that crab QS fishery.
    (5) Any person who receives an allocation of QS in excess of the 
use caps established in paragraph (b) of this section and who 
subsequently transfers any QS to another person so that the total 
amount of QS held by that person is less than the amount of the use 
caps in this paragraph will be subject to the

[[Page 63308]]

use caps established in this paragraph after that transfer.
    (6) IFQ that is used by a crab harvesting cooperative is not 
subject to the use caps in paragraph (b) of this section.
    (7) Non-individual persons holding QS will be required to provide, 
on an annual basis, a list of persons with an ownership interest in the 
non-individual QS holder. This list of owners shall be provided to the 
individual level and will include the percentage of ownership held by 
each individual. This annual submission of information must be 
submitted as part of the Annual Application to for Crab IFQ/IPQ Permit. 
A person will be considered to be a holder of QS or IFQ for purposes of 
applying the QS and IFQ use caps in this paragraph of that person:
    (i) Is the sole proprietor of an entity that holds QS or IFQ; or
    (ii) Directly or indirectly owns a 10 percent or greater interest 
in an entity that holds QS or IFQ.
    (c) PQS and IPQ Use Caps. (1) A person may not:
    (i) Hold more than 30 percent of the initial PQS pool in any crab 
QS fishery unless that person received an initial allocation of PQS in 
excess of this limit. A person will not be issued PQS in excess of the 
use caps established in this section based on PQS derived from the 
transfer of legal processing history after June 10, 2002.
    (ii) Use IPQ in excess of the amount of IPQ that is yielded from 
the PQS caps in paragraph (C)(1)(i) of this section unless that IPQ is 
yielded from PQS that was received by that person in the initial 
allocation of PQS for that crab QS fishery.
    (2) A person may not use more than 60 percent of the IPQ issued in 
the BSS crab QS fishery with a North region designation during a crab 
fishing year.
    (3) Non-individual persons holding PQS will be required to provide, 
on an annual basis, a list of persons with an ownership interest in the 
non-individual PQS holder. This list of owners shall be provided to the 
individual level and will include the percentage of ownership held by 
each individual person. This annual submission of information must be 
submitted as part of the Annual Application for Crab IFQ/IPQ Permit. A 
person will be considered to be a holder of PQS for purposes of 
applying the PQS use caps in this paragraph if that persons:
    (i) Is the sole proprietor of an entity that holds PQS; or
    (ii) Directly or indirectly owns a 10 percent or greater interest 
in an entity that holds PQS.
    (4) The amount of IPQ issued in any crab fishing year shall not 
exceed:
    (i) 175,000,000 raw crab pounds (79,378.6 mt) in the BSS crab QS 
fishery;
    (ii) 20,000,000 raw crab pounds (9,071.8 mt) in the BBR crab QS 
fishery;
    (iii) Any amount of Class A IFQ that is issued in excess of the 
amount of IPQ in the BSS or BBR crab QS fisheries that is not required 
to be delivered to an RCR with unused IPQ;
    (iv) The amount of Class A IFQ issued in excess of the amount of 
IPQ issued in the BSS or BBR crab QS fisheries will be issued to all 
Class A IFQ recipients on a pro rata basis in proportion to the amount 
of Class A IFQ held by each person.
    (5) Before July 1, 2007, IPQ for the BSS, BBR, PIK, SMB, and EAG 
crab QS fisheries may not be used to process crab outside the ECC in 
which the PQS from which that IPQ is derived. Except that, before July 
1, 2007:
    (i) Ten percent of the IPQs that are issued for a crab QS fishery 
or an amount of IPQ that yields up to 500,000 raw crab pounds (226.7 
mt) on an annual basis, whichever is less, may be leased for use in 
processing crab outside that ECC. The amount of IPQ that is issued on 
an annual basis for use in that ECC and the amount that may be leased 
outside that ECC will be established annually and will be divided on a 
pro rata basis among all IPQ permit holders issued IPQ for use in that 
ECC for that year;
    (ii) IPQ in excess of the amounts specified in paragraph (c)(5)(i) 
of this section may be used outside the ECC for which that IPQ is 
designated if an unavoidable circumstance prevents crab processing 
within that ECC. For purposes of this section, an unavoidable 
circumstance exists if the specific intent to conduct processing for a 
crab QS species in that ECC was thwarted by a circumstance that was:
    (A) Unavoidable;
    (B) Unique to the IPQ permit holder, or to the processing facility 
used by the IPQ permit holder in that ECC;
    (C) Unforeseen and reasonably unforeseeable to the IPQ permit 
holder;
    (D) The circumstance that prevented the IPQ permit holder from 
processing crab in that ECC actually occurred; and
    (E) The IPQ permit holder took all reasonable steps to overcome the 
circumstance that prevented the IPQ permit holder from conducting 
processing for that crab QS fishery in that ECC.
    (iii) This provision does not exempt any IPQ permit holder from any 
regional processing requirements that may apply to that IPQ.
    (6) Any person harvesting crab under a Class A CVO or CVC IFQ 
Permit, except as provided under Sec.  680.42(c)(4), must deliver that 
crab:
    (i) Only to RCRs with unused IPQ for the same QS fishery;
    (ii) Only to an RCR in the region for which the QS and IFQ is 
designated.
    (7) Any person harvesting crab under a Class B IFQ, CPO IFQ, CVC 
IFQ, or CPC IFQ permit may deliver that crab to any RCR.
    (d) Vessel limitations. (1) Except for vessels that participate in 
a crab harvesting cooperative as described under Sec.  680.20 and under 
the provisions described in paragraph (d)(4) of this section, no vessel 
may be used to harvest CVO or CPO IFQ in excess of the following 
percentages of the TAC for that crab QS fishery for that crab fishing 
year:
    (i) 2.0 percent for BSS;
    (ii) 2.0 percent for BBR;
    (iii) 2.0 percent for BST;
    (iv) 4.0 percent for PIK;
    (v) 4.0 percent for SMB;
    (vi) 20.0 percent for EAG;
    (vii) 20.0 percent for WAG; or
    (viii) 20.0 percent for the WAI crab QS fishery west of 179[deg] W. 
long.
    (2) CVC or CPC QS used on a vessel will not be included in 
determining whether a vessel use cap is met.
    (3) An initial allocation of QS that results in an initial issuance 
of crab QS to a single person and that results in IFQ that is in excess 
of the vessel use caps described above allows that person to catch and 
retain crab harvested with that IFQ with a single vessel in excess of 
the vessel use caps as described in paragraph (e)(1) of this section 
provided that any transfers of a valid, fully transferable LLP license 
that resulted in the issuance of QS to that person occurred prior to 
June 10, 2002. Any subsequent transfers of a valid, fully transferable 
LLP license that resulted in the issuance of QS, or any transfers of QS 
to that person would not be exempted from these vessel use caps. 
However, two or more persons may not catch and retain their IFQ with 
one vessel in excess of these limitations.
    (4) A vessel use cap would not apply to a vessel if all of the IFQ 
used on that vessel in a crab fishing year is IFQ held by a crab 
harvesting cooperative. This exemption is forfeited if that vessel is 
used to harvest any amount of IFQ not held by a crab harvesting 
cooperative during the same crab fishing year.
    (5) A person holding CVC or CPC QS is required to be aboard the 
vessel upon

[[Page 63309]]

which their IFQ is being harvested; unless the IFQ resulting from that 
QS has been leased to a qualified person under Sec.  680.41 or has been 
converted into crab cooperative IFQ under Sec.  680.21.
    (6) A person holding CVO or CPO QS does not have to be aboard the 
vessel being used to harvest their IFQ if they hold at least a 10 
percent ownership interest in the vessel upon which the IFQ is to be 
harvested and are represented on board the vessel by a crab IFQ hired 
master employed by that QS holder as authorized under Sec.  680.4.
    (7) Ownership of a vessel means, for purposes of this section:
    (i) A sole proprietor; or
    (ii) Directly or indirectly owns a 10 percent or greater interest 
in an entity that owns a vessel.


Sec.  680.43  Determinations and appeals.

    See Sec.  679.43 of this chapter.


Sec.  680.44  Cost recovery.

    (a) Cost recovery fees--(1) Responsibility. The person documented 
on the IFQ, IPQ, CDQ, RCR, Commercial Fisheries Entry Commission 
(CFEC), or State of Alaska Commissioner's permit as the permit holder 
at the time of a CR crab landing must comply with the requirements of 
this section.
    (i) Subsequent transfer of IFQ, IPQ, CDQ, or QS does not affect the 
permit holder's liability for noncompliance with this section.
    (ii) Non[hyphen]renewal of an RCR permit does not affect the permit 
holder's liability for noncompliance with this section.
    (2) Fee Liability determination. (i) All CR allocation holders and 
RCR permit holders will be subject to a fee liability for any CR crab 
debited from a CR allocation during a crab fishing year.
    (ii) Fee liability must be calculated by multiplying the applicable 
fee percentage by the ex[hyphen]vessel value of the CR crab received by 
the RCR at the time of receipt.
    (iii) NMFS will provide a summary to all CR allocation and RCR 
permit holders available through a secure Internet site or on request 
during the last quarter of the crab fishing year. The summary will 
explain the fee liability determination including details of raw crab 
pounds debited from CR allocations by permit, port or 
port[hyphen]group, species, date, and prices.
    (3) Fee collection. (i) All RCRs who receive CR crab are 
responsible for submitting the cost recovery payment for all CR crab 
received.
    (ii) All RCRs who receive CR crab in a crab fishing year must 
maintain and submit records for any crab cost recovery fees collected 
under the corresponding RCR permit.
    (4) Payment--(i) Payment due date. An RCR permit holder must submit 
any crab cost recovery fee liability payment(s) to NMFS at the address 
provided in paragraph (a)(4)(iii) of this section no later than July 31 
of the crab fishing year following the crab fishing year in which the 
payment for a CR crab landing was made.
    (ii) Payment recipient. Make payment payable to NMFS.
    (iii) Payment address. Mail payment and related documents to the 
Administrator, Alaska Region, NMFS; Attn: Operations, Management, & 
Information Division (OMI); P.O. Box 21668; Juneau, AK 
99802[hyphen]1668; Facsimile: 907[hyphen]586[hyphen]7354. Payments may 
also be submitted electronically to NMFS via forms available from RAM 
or on the RAM area of the Alaska Region Home Page at http://www.fakr.noaa.gov/ram.
    (iv) Payment method. Payment must be made in U.S. dollars by 
personal check drawn on a U.S. bank account, money order, bank 
certified check, or credit card.
    (b) Ex[hyphen]vessel value determination and use--(1) General. An 
RCR permit holder must use either the ex[hyphen]vessel value determined 
for shoreside processors or the ex[hyphen]vessel value determined for 
at[hyphen]sea Catcher/Processors (CP), depending on their activity. 
Ex[hyphen]vessel value includes all cash, services, or other 
goods[hyphen]in[hyphen]kind exchanged for CR crab.
    (2) Shoreside Ex[hyphen]vessel value. Shoreside processing 
facilities must use the price paid at the time of purchase as 
ex[hyphen]vessel value for the purposes of calculating fee liability. 
Shoreside processing facilities must include any subsequent 
retropayments as adjustments to the initial calculation of fee 
liability.
    (3) Catcher/Processor Ex[hyphen]vessel value--(i) General. Catcher/
processors must use the corresponding CP standard price(s) as published 
in the Federal Register as ex[hyphen]vessel value for the purposes of 
calculating fee liability.
    (ii) Duty to publish list. As part of the summary described in 
paragraph (a)(2)(iii) of this section, the Regional Administrator will 
publish CP standard prices in the Federal Register during the last 
quarter of each crab fishing year. The CP standard prices will be 
described in U.S. dollars per raw crab pound, for CR crab debited from 
CR allocations during the previous crab fishing year.
    (iii) Effective duration. The Regional Administrator may revise the 
CP standard prices annually by publication in the Federal Register. CP 
standard prices published in the Federal Register by NMFS shall apply 
to all landings made in the same crab fishing year as the CP standard 
price publication and shall replace any CP standard prices previously 
provided by NMFS.
    (iv) Determination. NMFS will calculate the CP standard prices to 
reflect, as closely as possible, the previous year's average shoreside 
processor price by fishery and by species, and any variations in 
reported shoreside ex[hyphen]vessel values of CR crab. The Regional 
Administrator will base CP standard prices on the following types of 
information:
    (A) Landed pounds by CR crab, port[hyphen]group, and month;
    (B) Total shoreside ex[hyphen]vessel value by CR crab, 
port[hyphen]group, and month; and
    (C) Price adjustments, including retro[hyphen]payments.
    (4) Fee liability calculation. All RCRs must base all fee liability 
calculations on the ex[hyphen]vessel value that correlates to CR crab 
that is debited from a CR allocation and recorded in raw crab pounds.
    (c) Crab fee percentage--(1) Default percentage. The crab fee 
percentage is 3 percent of the ex[hyphen]vessel value of crab unless 
adjusted by the Regional Administrator by publication in the Federal 
Register in accordance with paragraphs (c)(3) and (c)(4) of this 
section.
    (i) The calculated crab fee percentage will be divided equally 
between the harvesting and processing sectors.
    (ii) Catcher/processors must pay the full crab fee percentage 
determined by the fee percentage calculation for all CR crab debited 
from a CR allocation.
    (2) Calculating fee percentage value. Each year the Regional 
Administrator will calculate the fee percentage.
    (i) Factors. In making the calculations the Regional Administrator 
will consider the following factors:
    (A) The catch to which the crab cost recovery fee will apply;
    (B) The projected ex[hyphen]vessel value of that catch;
    (C) The costs directly related to the management and enforcement of 
the Crab Rationalization Program;
    (D) The funds available for the Crab Rationalization Program in the 
Limited Access System Administrative Fund (LASAF);
    (E) Nonpayment of fee liabilities.
    (ii) Methodology. In making the calculation, the Regional 
Administrator will use the following methodology:
    Harvesting and Processing Sectors: [[100 x (DPC - AB) / V] / (1 
- NPR)] x 0.5
    Catcher/Processors: [100 x (DPC - AB) / V] / (1 - NPR)

[[Page 63310]]

where:

    DPC is the direct program costs for the Crab Rationalization 
Program for the previous fiscal year,
    AB is the projected end of the year LASAF account balance for 
the Crab Rationalization Program, and
    V is the projected ex[hyphen]vessel value of the catch subject 
to the crab cost recovery fee liability for the current year, and 
NPR is the fraction of the fee assessments that is expected to 
result in nonpayment.
    (3) Adjustments. During the first quarter of each crab fishing 
year, the Regional Administrator will consider adjusting the crab fee 
percentage. Consideration will be based on the calculations described 
in paragraph (c)(2) of this section.
    (4) Publication. The Regional Administrator will make any 
adjustments in the crab fee percentage by publication in the Federal 
Register.
    (5) Applicable percentage. The RCR permit holder must use the crab 
fee percentage in effect at the time a CR crab is debited from a CR 
allocation to calculate the crab cost recovery fee liability for such 
CR crab. The RCR permit holder must use the crab fee percentage in 
effect at the time a CR crab is debited from an CR allocation to 
calculate the crab cost recovery fee liability for any 
retro[hyphen]payments for that CR crab.
    (d) Underpayment of fee liability. (1) Under Sec.  680.4, an 
applicant will not receive new IFQ, IPQ, or RCR permits until he or she 
submits a complete application. A complete application shall include 
full payment of an applicant's complete crab cost recovery fee 
liability as reported by the RCR.
    (2) If an RCR fails to submit full payment for crab cost recovery 
fee liability by the date described in paragraph (a)(4) of this 
section, the Regional Administrator may:
    (i) At any time thereafter send an IAD to the RCR permit holder 
stating that the RCR permit holder's estimated fee liability, as 
indicated by his or her own submitted information, is the crab cost 
recovery fee liability due from the RCR permit holder.
    (ii) Disapprove any transfer of IFQ, IPQ, or QS to or from the RCR 
permit holder in accordance with Sec.  680.41.
    (3) If an RCR fails to submit full payment by the application 
deadline described at Sec.  680.4(e), no IFQ or IPQ permit will be 
issued to that RCR for that crab fishing year.
    (4) Upon final agency action determining that an RCR permit holder 
has not paid his or her crab cost recovery fee liability, the Regional 
Administrator may continue to withhold issuance of any new IFQ, IPQ, or 
RCR permit for any subsequent crab fishing years. If payment is not 
received by the 30\th\ day after the final agency action, the matter 
will be referred to the appropriate authorities for purposes of 
collection.
    (e) Over payment. Upon issuance of final agency action, any amount 
submitted to NMFS in excess of the crab cost recovery fee liability 
determined to be due by the final agency action will be returned to the 
RCR permit holder unless the permit holder requests the agency to 
credit the excess amount against the permit holder's future crab cost 
recovery fee liability.
    (f) Appeals and requests for reconsideration. An RCR permit holder 
who receives an IAD may either appeal the IAD pursuant to Sec.  679.43 
or request reconsideration. Within 60 days from the date of issuance of 
the IAD, the Regional Administrator may undertake reconsideration of 
the IAD on his or her own initiative. If a request for reconsideration 
is submitted or the Regional Administrator initiates reconsideration, 
the 60[hyphen]day period for appeal under Sec.  679.43 will begin anew 
upon issuance of the Regional Administrator's reconsidered IAD. The 
Regional Administrator may undertake only one reconsideration of the 
IAD, if any. If an RCR permit holder fails to file an appeal of the IAD 
pursuant to Sec.  679.43 or request reconsideration within the time 
period provided, the IAD will become the final agency action. In any 
appeal or reconsideration of an IAD made under this section, an RCR 
permit holder has the burden of proving his or her claim.
    (g) Fee Submission Form. An RCR must submit an RCR Permit Holder 
Fee Submission Form according to Sec.  680.5(e).

                                                   Table 1 to Part 680--Crab Rationalized (CR) Fishery
--------------------------------------------------------------------------------------------------------------------------------------------------------
                   Code                                      CR Fishery                                        Boundary Description
--------------------------------------------------------------------------------------------------------------------------------------------------------
EAG                                        Eastern Aleutian Islands golden (brown) king    In waters of the EEZ with:
                                            crab (Lithodes aequispinus)                    (1) an eastern boundary the longitude of Scotch Cap Light
                                                                                           (164[deg]44' W. long.) to 53[deg]30' N. lat., then West to
                                                                                           165[deg] W. long.
                                                                                           (2) a western boundary of 174[deg] W. long., and
                                                                                           (3) a northern boundary of a line from the latitude of Cape
                                                                                           Sarichef (54[deg]36' N. lat.) westward to 171[deg] W. long.,
                                                                                           then north to 55[deg]30' N. lat., then west to 174[deg] W.
                                                                                           long.
--------------------------------------------------------------------------------------------------------------------------------------------------------
WAG                                        Western Aleutian Islands golden (brown) king    In waters of the EEZ with:
                                            crab (Lithodes aequispinus)                    (1)  an eastern boundary the longitude 174[deg] W. long.,
                                                                                           (2) a western boundary the maritime Boundary Agreement Line
                                                                                           as that line is described in the text of and depicted in the
                                                                                           annex to the Maritime Boundary Agreement between the United
                                                                                           States and the Union of Soviet Socialist Republics signed in
                                                                                           Washington, June 1, 1990, and as the Maritime Boundary
                                                                                           Agreement Line as depicted on NOAA Chart No. 513 (6\th\
                                                                                           edition, February 23, 1991) and NOAA Chart No. 514 (6\th\
                                                                                           edition, February 16, 1991), and
                                                                                           (3) a northern boundary of a line from the latitude of
                                                                                           55[deg]30' N. lat., then west to the U.S.[dash]Russian
                                                                                           Convention line of 1867.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 63311]]

 
BST                                        Bering Sea Tanner crab (Chionoecetes bairdi)    In waters of the EEZ east of the maritime Boundary Agreement
                                                                                           Line as that line is described in the text of and depicted in
                                                                                           the annex to the Maritime Boundary Agreement between the
                                                                                           United States and the Union of Soviet Socialist Republics
                                                                                           signed in Washington, June 1, 1990, and as the Maritime
                                                                                           Boundary Agreement Line as depicted on NOAA Chart No. 513
                                                                                           (6\th\ edition, February 23, 1991) and NOAA Chart No. 514
                                                                                           (6\th\ edition, February 16, 1991) to 171[deg] W. long., and
                                                                                           then south to 54[deg]30'N. lat. with a southern boundary of
                                                                                           54[deg]36' N. lat.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BSS                                        Bering Sea Snow crab (Chionoecetes opilio)      In waters of the EEZ east of the maritime Boundary Agreement
                                                                                           Line as that line is described in the text of and depicted in
                                                                                           the annex to the Maritime Boundary Agreement between the
                                                                                           United States and the Union of Soviet Socialist Republics
                                                                                           signed in Washington, June 1, 1990, and as the Maritime
                                                                                           Boundary Agreement Line as depicted on NOAA Chart No. 513
                                                                                           (6\th\ edition, February 23, 1991) and NOAA Chart No. 514
                                                                                           (6\th\ edition, February 16, 1991) to 171[deg] W. long., and
                                                                                           then south to 54[deg]30' N. lat. with a southern boundary of
                                                                                           54[deg]36' N.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BBR                                        Bristol Bay red king crab (Paralithodes         In waters of the EEZ with:
                                            camtshaticus)                                  (1) a northern boundary of 58[deg]30' N. lat.,
                                                                                           (2) a southern boundary of 54[deg]36' N. lat., and
                                                                                           (3) a western boundary of 168[deg] W. long. and including all
                                                                                           waters of Bristol Bay.
--------------------------------------------------------------------------------------------------------------------------------------------------------
PIK                                        Pribilof red king and blue king crab            In waters of the EEZ with:
                                            (Paralithodes camtshaticus and Paralithodes    (1) a northern boundary of 58[deg]30' N. lat.,
                                            platypus)                                      (2) an eastern boundary of 168[deg] W. long.,
                                                                                           (3) a southern boundary line from 54[deg]36' N. lat.,
                                                                                           168[deg] W. long., to 54[deg]36' N. lat., 171[deg] W. long.,
                                                                                           to 55[deg]30' N. lat., 171[deg] W. long., to 55[deg]30' N.
                                                                                           lat., 173[deg]30' E. lat., and then westward to the maritime
                                                                                           Boundary Agreement Line as that line is described in the text
                                                                                           of and depicted in the annex to the Maritime Boundary
                                                                                           Agreement between the United States and the Union of Soviet
                                                                                           Socialist Republics signed in Washington, June 1, 1990, and
                                                                                           as the Maritime Boundary Agreement Line as depicted on NOAA
                                                                                           Chart No. 513 (6\th\ edition, February 23, 1991) and NOAA
                                                                                           Chart No. 514 (6\th\ edition, February 16, 1991).
--------------------------------------------------------------------------------------------------------------------------------------------------------
SMB                                        St. Matthew blue king crab (Paralithodes        In waters of the EEZ with:
                                            platypus)                                      (1) a northern boundary of 62[deg] N. lat.,
                                                                                           (2) a southern boundary of 58[deg]30' N. lat., and
                                                                                           (3) a western boundary of the maritime Boundary Agreement
                                                                                           Line as that line is described in the text of and depicted in
                                                                                           the annex to the Maritime Boundary Agreement between the
                                                                                           United States and the Union of Soviet Socialist Republics
                                                                                           signed in Washington, June 1, 1990, and as the Maritime
                                                                                           Boundary Agreement Line as depicted on NOAA Chart No. 513
                                                                                           (6\th\ edition, February 23, 1991) and NOAA Chart No. 514
                                                                                           (6\th\ edition, February 16, 1991).
--------------------------------------------------------------------------------------------------------------------------------------------------------
WAI                                        Western Aleutian Islands red king crab          In waters of the EEZ with:
                                            (Paralithodes camtshaticus)                    (1) an eastern boundary the longitude 179[deg] W. long.,
                                                                                           (2) a western boundary of the maritime Boundary Agreement
                                                                                           Line as that line is described in the text of and depicted in
                                                                                           the annex to the Maritime Boundary Agreement between the
                                                                                           United States and the Union of Soviet Socialist Republics
                                                                                           signed in Washington, June 1, 1990, and as the Maritime
                                                                                           Boundary Agreement Line as depicted on NOAA Chart No. 513
                                                                                           (6\th\ edition, February 23, 1991) and NOAA Chart No. 514
                                                                                           (6\th\ edition, February 16, 1991), and
                                                                                           (3) a northern boundary of a line from the latitude of
                                                                                           55[deg]30' N. lat., then west to the maritime Boundary
                                                                                           Agreement Line as that line is described in the text of and
                                                                                           depicted in the annex to the Maritime Boundary Agreement
                                                                                           between the United States and the Union of Soviet Socialist
                                                                                           Republics signed in Washington, June 1, 1990, and as the
                                                                                           Maritime Boundary Agreement Line as depicted on NOAA Chart
                                                                                           No. 513 (6\th\ edition, February 23, 1991) and NOAA Chart No.
                                                                                           514 (6\th\ edition, February 16, 1991).
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 63312]]


                                     Table 2 to Part 680--Crab Species Codes
----------------------------------------------------------------------------------------------------------------
               Species Code                        Species Description
------------------------------------------------------------------------------
900                                        Box                                 Lopholithodes mandtii
----------------------------------------------------------------------------------------------------------------
910                                        Dungeness                           Cancer magister
----------------------------------------------------------------------------------------------------------------
921                                        Red king crab                       Paralithodes camtshaticus
----------------------------------------------------------------------------------------------------------------
922                                        Blue king crab                      Paralithodes platypus
----------------------------------------------------------------------------------------------------------------
923                                        Golden (brown) king crab            Lithodes aequispinus
----------------------------------------------------------------------------------------------------------------
924                                        Scarlet king crab                   Lithodes couesi
----------------------------------------------------------------------------------------------------------------
931                                        Tanner crab                         Chionoecetes bairdi
----------------------------------------------------------------------------------------------------------------
932                                        Snow crab                           Chionoecetes opilio
----------------------------------------------------------------------------------------------------------------
933                                        Grooved Tanner crab                 Chionoecetes tanneri
----------------------------------------------------------------------------------------------------------------
934                                        Triangle Tanner crab                Chionoecetes angulatus
----------------------------------------------------------------------------------------------------------------
940                                        Korean horsehair crab               Erimacrus isenbeckii
----------------------------------------------------------------------------------------------------------------
951                                        Multispinus crab                    Paralomis multispinus
----------------------------------------------------------------------------------------------------------------
953                                        Verrilli crab                       Paralomis verrilli
----------------------------------------------------------------------------------------------------------------


           Table 3a to Part 680--Crab Delivery Condition Codes
 (The condition of the fish or shellfish at the point it is weighed and
                   recorded on the ADF&G fish ticket)
------------------------------------------------------------------------
                    Code                              Description
------------------------------------------------------------------------
01                                            Whole crab, live
------------------------------------------------------------------------
79                                            Deadloss
------------------------------------------------------------------------


         Table 3b to Part 680--Crab Disposition or Product Codes
------------------------------------------------------------------------
                    Code                              Description
------------------------------------------------------------------------
80                                            Sections
------------------------------------------------------------------------
95                                            Personal use [dash] not
                                               sold
------------------------------------------------------------------------
97                                            Other retained product
                                               (specify condition)
------------------------------------------------------------------------


                 Table 4 to Part 680--Crab Process Codes
------------------------------------------------------------------------
                Process Code                          Description
------------------------------------------------------------------------
1                                             Fresh
------------------------------------------------------------------------
18                                            Fresh/vacuum pack
------------------------------------------------------------------------
2                                             Frozen
------------------------------------------------------------------------
21                                            Frozen/block
------------------------------------------------------------------------
22                                            Frozen/shatter pack
------------------------------------------------------------------------
28                                            Frozen/vacuum pack
------------------------------------------------------------------------
3                                             Salted/brined
------------------------------------------------------------------------
6                                             Cooked
------------------------------------------------------------------------
7                                             Live
------------------------------------------------------------------------
0                                             Other (specify)
------------------------------------------------------------------------


                     Table 5 to Part 680--Crab Size
------------------------------------------------------------------------
                  Size Code                           Description
------------------------------------------------------------------------
1                                             Standard or large sized
                                               crab or crab sections.
------------------------------------------------------------------------
2                                             Smaller size crab or crab
                                               sections, e.g., snow crab
                                               less than 4 inches.
------------------------------------------------------------------------


                     Table 6 to Part 680--Crab Grade
------------------------------------------------------------------------
                 Grade Code                           Description
------------------------------------------------------------------------
1                                             Standard or premium
                                               quality crab or crab
                                               sections.
------------------------------------------------------------------------
2                                             Lower quality product,
                                               e.g., dirty shelled crab
                                               or a pack that is of
                                               lower quality than No. 1
                                               crab.
------------------------------------------------------------------------


[[Page 63313]]


               Table 7 to Part 680--Eligibility for Initial Issuance of Crab QS by Crab QS Fishery
----------------------------------------------------------------------------------------------------------------
                                        Column B:          Column C:        Column D: Recent
                                     Qualifying Years   Qualifying Years     Participation      Column E: Subset
    Column A: Crab QS Fisheries      for CVO and CPO    for CVC and CPC   Seasons for CVC and    of Qualifying
                                            QS                 QS                CPC QS              Years
----------------------------------------------------------------------------------------------------------------
For each crab QS fishery the        CVO and CPO QS     CVC and CPC QS     In addition, each    The maximum
 Regional Administrator shall        for any            for any            person receiving     number of
 calculate (see Sec.                 qualified person   qualified person   CVC or CPC QS,       qualifying years
 680.4(c)(2)):                       based on that      based on that      must have made at    that can be used
                                     person's total     person's legal     least one landing    to calculate QS
                                     legal landings     landings on the    as recorded on a     for each QS
                                     of crab in each    State of Alaska    State of Alaska      fishery are:
                                     of the crab QS     fish ticket        fish ticket in at
                                     fisheries for      during:            least 2 of the
                                     any:                                  last 3 fishing
                                                                           seasons in each of
                                                                           the crab QS areas
                                                                           as those seasons
                                                                           are described
                                                                           below:
1. Eastern Aleutian Islands golden  .................  .................  ...................  .................
 (brown) king crab (EAG)            5 years of the 5-  3 years of the 5-   (1) September 1     5 for CVO and CPO
                                     year base period   year base period   1999 through         QS; and 3 for
                                     beginning on:      beginning on:      October 25, 1999.    CVC and CPC QS.
                                     (1) September 1,   (1) September 1,   (2) August 15,
                                     1996 through       1996 through       2000 through
                                     December 25,       December 25,       September 24,
                                     1996;              1996;              2000.
                                     (2) September 1,   (2) September 1,   (3) August 15,
                                     1997 though        1997 though        2001 through
                                     November 24,       November 24,       September 10,
                                     1997;              1997;              2001.
                                     (3) September 1,   (3) September 1,
                                     1998 through       1998 through
                                     November 7,        November 7,
                                     1998;              1998;
                                     (4) September 1,   (4) September 1,
                                     1999 through       1999 through
                                     October 25,        October 25,
                                     1999; and          1999; and
                                     (5) August 15,     (5) August 15,
                                     2000 through       2000 through
                                     September 24,      September 24,
                                     2000.              2000.
----------------------------------------------------------------------------------------------------------------
2. Western Aleutian Islands golden  .................  .................  ...................  .................
 (brown) king crab (WAG)            5 years of the     3 years of the      (1) September 1     5 for CVO and CPO
                                     5[dash]year base   5[dash]year base   1999 through         QS; and 3 for
                                     period beginning   period beginning   August 14, 2000.     CVC and CPC QS.
                                     on:                on:                (2) August 15,
                                     (1) September 1,   (1) September 1,   2000 through March
                                     1996 through       1996 through       28, 2001.
                                     August 31, 1997;   August 31, 1997;   (3) August 15 2001
                                     (2) September 1,   (2) September 1,   through March 30,
                                     1997 though        1997 though        2002.
                                     August 31, 1998;   August 31, 1998;
                                     (3) September 1,   (3) September 1,
                                     1998 through       1998 through
                                     August 31, 1999;   August 31, 1999;
                                     (4) September 1,   (4) September 1,
                                     1999 through       1999 through
                                     August 14, 2000;   August 14, 2000;
                                     and                and
                                     (5) August 15,     (5) August 15,
                                     2000 through       2000 through
                                     March 30, 2001.    March 30, 2001.
----------------------------------------------------------------------------------------------------------------

[[Page 63314]]

 
3. Bering Sea Tanner crab (BST)     .................  .................  in any 2 of the      .................
                                    4 years of the     3 years of the      last 3 seasons      4 for CVO and CPO
                                     6[dash]year        6[dash]year        prior to June 10,    QS;and 3 for CVC
                                     period beginning   period beginning   2002 in the          and CPC QS.
                                     on:                on:                Eastern Aleutian
                                     (1) November 15,   (1) November 15,   Island golden
                                     1992 through       1992 through       (brown) king crab,
                                     March 31, 1993;    March 31, 1993;    Western Aleutian
                                     (2) November 1,    (2) November 1,    Island golden
                                     1993 through       1993 through       (brown) king crab,
                                     November 10,       November 10,       Bering Sea C.
                                     1993;              1993;              opilio crab, or
                                     (3) November 20,   (3) November 20,   Bristol Bay red
                                     1993 through       1993 through       king crab
                                     January 1, 1994;   January 1, 1994;   fisheries.
                                     (4) November 1,    (4) November 1,
                                     1994 through       1994 through
                                     November 21,       November 21,
                                     1994;              1994;
                                     (5) November 1,    (5) November 1,
                                     1995 through       1995 through
                                     November 16,       November 16,
                                     1995; and          1995; and
                                     (6) November 1,    (6) November 1,
                                     1996 through       1996 through
                                     November 5, 1996   November 5, 1996
                                     and November 15,   and November 15,
                                     1996 through       1996 through
                                     November 27,       November 27,
                                     1996.              1996.
----------------------------------------------------------------------------------------------------------------
4. Bering Sea snow crab (BSS)       .................  .................  ...................  .................
                                    4 years of the 5-  3 years of the 5-   (1) April 1, 2000   4 for CVO and CPO
                                     year period        year period        through April 8,     QS; and 3 for
                                     beginning on:      beginning on:      2000.                CVC and CPC QS.
                                     (1) January 15,    (1) January 15,    (2) January 15,
                                     1996 through       1996 through       2001 through
                                     February 29,       February 29,       February 14, 2001.
                                     1996;              1996;              (3) January 15,
                                     (2) January 15,    (2) January 15,    2002 through
                                     1997 through       1997 through       February 8, 2002.
                                     March 21, 1997;    March 21, 1997;
                                     (3) January 15,    (3) January 15,
                                     1998 through       1998 through
                                     March 21, 1998;    March 21, 1998;
                                     (4) January 15,    (4) January 15,
                                     1999 through       1999 through
                                     March 22, 1999;    March 22, 1999;
                                     and                and
                                     (5) April 1,       (5) April 1,
                                     2000 through       2000 through
                                     April 8, 2000.     April 8, 2000.
----------------------------------------------------------------------------------------------------------------
5. Bristol Bay red king crab (BBR)  .................  .................  ...................  .................
                                    4 years of the 5-  3 years of the 5-   (1) October 16,     4 for CVO and CPO
                                     year QS base       year QS base       2000 through         QS; and 3 for
                                     period beginning   period beginning   October 20, 2000.    CVC and CPC QS.
                                     on:                on:                (2) October 15,
                                     (1) November 1,    (1) November 1,    2001 though
                                     1996 through       1996 through       October 18, 2001.
                                     November 5,        November 5,        (3) October 15,
                                     1996;              1996;              2002 though
                                     (2) November 1,    (2) November 1,    October 18, 2002.
                                     1997 through       1997 through
                                     November 5,        November 5,
                                     1997;              1997;
                                     (3) November 1,    (3) November 1,
                                     1998 through       1998 through
                                     November 6,        November 6,
                                     1998;              1998;
                                     (4) October 15,    (4) October 15,
                                     1999 through       1999 through
                                     October 20,        October 20,
                                     1999; and          1999; and
                                     (5) October 16,    (5) October 16,
                                     2000 through       2000 through
                                     October 20,        October 20,
                                     2000.              2000.
----------------------------------------------------------------------------------------------------------------

[[Page 63315]]

 
6. Pribilof red king and blue king  .................  .................  in any 2 of the      .................
 crab (PIK)                         4 years of the 5-  3 years of the 5-   last 3 seasons      4 for CVO and CPO
                                     year period        year period        prior to June 10,    QS; and 3 for
                                     beginning on:      beginning on:      2002 in the          CVC and CPC QS.
                                     (1) September      (1) September      Eastern Aleutian
                                     15, 1994 through   15, 1994 through   Island golden
                                     September 21,      September 21,      (brown) king crab,
                                     1994;              1994;              Western Aleutian
                                     (2) September      (2) September      Island golden
                                     15, 1995 through   15, 1995 through   (brown) king crab,
                                     September 22,      September 22,      Bering Sea C.
                                     1995;              1995;              opilio crab, or
                                     (3) September      (3) September      Bristol Bay red
                                     15, 1996 through   15, 1996 through   king crab
                                     September 26,      September 26,      fisheries, except
                                     1996;              1996;              that persons
                                     (4) September      (4) September      applying for an
                                     15, 1997 through   15, 1997 through   allocation to
                                     September 29,      September 29,      receive QS based
                                     1997; and          1997; and          on legal landings
                                     (5) September      (5) September      made aboard a
                                     15, 1998 through   15, 1998 through   vessel less than
                                     September 28,      September 28,      60' LOA at the
                                     1998.              1998.              time of harvest
                                                                           are exempt from
                                                                           this requirement.
----------------------------------------------------------------------------------------------------------------
7. St. Matthew blue king crab       .................  .................  in any 2 of the      .................
 (SMB)                              4 years of the 5-  3 years of the      last 3 seasons      4 for CVO and CPO
                                     year period        5[dash]year        prior to June 10,    QS; and 3 for
                                     beginning on:      period beginning   2002 in the          CVC and CPC QS.
                                     (1) September      on:                Eastern Aleutian
                                     15, 1994 through   (1) September      Island golden
                                     September 22,      15, 1994 through   (brown) king crab,
                                     1994;              September 22,      Western Aleutian
                                     (2) September      1994;              Island golden
                                     15, 1995 through   (2) September      (brown) king crab,
                                     September 20,      15, 1995 through   Bering Sea C.
                                     1995;              September 20,      opilio crab, or
                                     (3) September      1995;              Bristol Bay red
                                     15, 1996 through   (3) September      king crab
                                     September 23,      15, 1996 through   fisheries.
                                     1996;              September 23,
                                     (4) September      1996;
                                     15, 1997 through   (4) September
                                     September 22,      15, 1997 through
                                     1997; and          September 22,
                                     (5) September      1997; and
                                     15, 1998 through   (5) September
                                     September 26,      15, 1998 through
                                     1998.              September 26,
                                                        1998.
----------------------------------------------------------------------------------------------------------------
8. Western Aleutian Islands red     .................  .................  in any 2 of the      .................
 king crab (WAI)                    3 years of the 4-  3 years of the      last 3 seasons      3 for CVO and CPO
                                     year period        4[dash]year        prior to June 10,    QS; and 3 for
                                     beginning on:      period beginning   2002 in the          CVC and CPC QS.
                                     (1) November 1,    on:                Eastern Aleutian
                                     1992 through       (1) November 1,    Island golden
                                     January 15,        1992 through       (brown) king crab,
                                     1993;              January 15,        Western Aleutian
                                     (2) November 1,    1993;              Island golden
                                     1993 through       (2) November 1,    (brown) king crab,
                                     February 15,       1993 through       Bering Sea C.
                                     1994;              February 15,       opilio crab, or
                                     (3) November 1,    1994;              Bristol Bay red
                                     1994 through       (3) November 1,    king crab
                                     November 28,       1994 through       fisheries.
                                     1994; and          November 28,
                                     (4) November 1,    1994; and
                                     1995 through       (4) November 1,
                                     February 13,       1995 through
                                     1996.              February 13,
                                                        1996.
----------------------------------------------------------------------------------------------------------------


  Table 8 to Part 680--Initial QS and PQS Pool for Each Crab QS Fishery
------------------------------------------------------------------------
        Crab QS Fishery            Initial QS Pool     Initial PQS Pool
------------------------------------------------------------------------
EAG [dash] Eastern Aleutian      10,000,000           10,000,000
 Islands golden king crab
------------------------------------------------------------------------
WAG [dash] Western Aleutian      40,000,000           40,000,000
 Islands golden (brown) king
 crab
------------------------------------------------------------------------
BST [dash] Bering Sea Tanner     200,000,000          200,000,000
 crab C. bairdi
------------------------------------------------------------------------
BSS [dash] Bering Sea snow crab  1,000,000,000        1,000,000,000
 C. opilio
------------------------------------------------------------------------
BBR [dash] Bristol Bay red king  400,000,000          400,000,000
 crab
------------------------------------------------------------------------

[[Page 63316]]

 
PIK [dash] Pribilof Islands red  30,000,000           30,000,000
 and blue king crab
------------------------------------------------------------------------
SMB [dash] St. Matthew blue      30,000,000           30,000,000
 king crab
------------------------------------------------------------------------
WAI [dash] Western Aleutian      60,000,000           60,000,000
 Islands red king crab
------------------------------------------------------------------------


              Table 9 to Part 680--Eligibility for Initial Issuance of Crab PQS by Crab QS Fishery
----------------------------------------------------------------------------------------------------------------
 Column A: For each crab QS fishery
  the Regional Administrator shall     Column B: PQS for any qualified person based on that person's total legal
             calculate:                     processing of crab in each of the crab QS fisheries for any...
----------------------------------------------------------------------------------------------------------------
Eastern Aleutian Island golden        4 years of the 4[dash]year base period beginning on:
 (brown) king crab (EAG)              (1) September 1, 1996 through December 25, 1996;
                                      (2) September 1, 1997 though November 24, 1997;
                                      (3) September 1, 1998 through November 7, 1998; and
                                      (4) September 1, 1999 through October 25, 1999.
----------------------------------------------------------------------------------------------------------------
Western Aleutian Island golden        4 years of the 4[dash]year base period beginning on:
 (brown) king crab (WAG)              (1) September 1, 1996 through August 31, 1997;
                                      (2) September 1, 1997 though August 31, 1998;
                                      (3) September 1, 1998 through August 31, 1999; and
                                      (4) September 1, 1999 through August 14, 2000.
----------------------------------------------------------------------------------------------------------------
Bering Sea C. bairdi crab (BST)       Equivalent to 50 percent of the total legally processed crab in the Bering
                                       Sea C. opilio fishery during the qualifying years established for the QS
                                       fishery; and 50 percent of the totally legally processed crab in the
                                       Bristol Bay red king crab fishery during the qualifying years established
                                       for that crab QS fishery.
----------------------------------------------------------------------------------------------------------------
Bering Sea C. opilio crab (BSS)       3 years of the 3-year period beginning on:
                                      (1) January 15, 1997 through March 21, 1997;
                                      (2) January 15, 1998 through March 21, 1998; and
                                      (3) January 15, 1999 through March 22, 1999.
----------------------------------------------------------------------------------------------------------------
Bristol Bay red king crab (BBR)       3 years of the 3-year QS base period beginning on:
                                      (1) November 1, 1997 through November 5, 1997;
                                      (2) November 1, 1998 through November 6, 1998; and
                                      (3) October 15, 1999 through October 20, 1999.
----------------------------------------------------------------------------------------------------------------
Pribilof Islands red and blue king    3 years of the 3-year period beginning on:
 crab (PIK)                           (1) September 15, 1996 through September 26, 1996;
                                      (2) September 15, 1997 through September 29, 1997; and
                                      (3) September 15, 1998 through September 28, 1998.
----------------------------------------------------------------------------------------------------------------
St. Matthew blue king crab (SMB)      3 years of the 3-year period beginning on:
                                      (1) September 15, 1996 through September 23, 1996;
                                      (2) September 15, 1997 through September 22, 1997; and
                                      (3) September 15, 1998 through September 26, 1998.
----------------------------------------------------------------------------------------------------------------
Western Aleutian Islands red king     Equivalent to the total legally processed crab in the Western Aleutian
 crab (WAI)                            Islands golden (brown) king crab fishery during the qualifying years
                                       established for that crab QS fishery.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 04-24103 Filed 10-28-04; 8:45 am]
BILLING CODE 3510-22-S