[Federal Register Volume 69, Number 225 (Tuesday, November 23, 2004)]
[Rules and Regulations]
[Pages 68090-68094]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-25958]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 635

[Docket No. 030604143-4309-02; I.D. 030403C]
RIN 0648-AQ90


Atlantic Highly Migratory Species; Atlantic Swordfish Quotas

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

ACTION: Final rule.

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SUMMARY: NMFS amends the regulations governing the North and South 
Atlantic swordfish fisheries to implement recommendations adopted at 
the 2002 meeting of the International Commission for the Conservation 
of Atlantic Tunas (ICCAT). Specifically, NMFS: increases the North 
Atlantic swordfish quota to 3,877 metric tons (mt) whole weight (ww) in 
2003 and to 3,907 mt ww in 2004 and 2005; establishes a dead discard 
allowance of 80 mt ww for 2003; transfers 25 mt ww of North Atlantic 
swordfish quota to Canada in 2003, 2004, and 2005; allows up to 200 mt 
ww of North Atlantic swordfish quota to be caught between 5 degrees 
North latitude and 5 degrees South latitude; and establishes a South 
Atlantic swordfish quota of 100 mt ww in 2003, 2004, and 2005 and 120 
mt ww in 2006. In addition, NMFS adjusts the 2003 and 2004 directed and 
reserve quotas based on underharvests from the 2002 and 2003 fishing 
years, respectively.

DATES: This final rule is effective December 23, 2004.

ADDRESSES: Copies of the Environmental Assessment/Regulatory Impact 
Review (EA/RIR) may be obtained from Christopher Rogers, Chief, Highly 
Migratory Species Management Division F/SF1, 1315 East-West Highway, 
Silver Spring, MD 20910. These documents are also available from the 
Highly Migratory Species Management Division website at 
www.nmfs.noaa.gov/sfa/hms/.

FOR FURTHER INFORMATION CONTACT: Chris Rilling, by phone: 301-713-2347 
or by fax: 301-713-1917.

SUPPLEMENTARY INFORMATION: The United States Atlantic swordfish and 
tuna fisheries are managed under the Fishery Management Plan for 
Atlantic Tunas, Swordfish, and Sharks (HMS FMP). Implementing 
regulations at 50 CFR part 635 are issued under the authority of the 
Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act), 16 U.S.C. 1801 et seq. and the Atlantic Tunas Convention 
Act (ATCA), 16 U.S.C. 971 et seq. Regulations issued under the 
authority of ATCA carry out the recommendations of ICCAT. The June 20, 
2003, proposed rule (68 FR 36967) contains the background information 
for the management measures in this final rule; the background 
information is not repeated in this final rule.

Comments and Responses

    NMFS held three public hearings in July and August 2003 in 
Gloucester, MA; Madeira Beach, FL; and Silver Spring, MD. Comments were 
received from fishery participants and other members of the public 
regarding the proposed regulations. In addition, written comments were 
submitted to NMFS during the 45-day comment period. Written and oral 
comments are summarized below with NMFS' responses.

North Atlantic Swordfish Quota

    Comment 1: One commenter supports opportunities for U.S. fishermen 
to land more swordfish as long as it is done in a manner that does not 
compromise the full rebuilding of the population and long-term 
sustainability of the resource.
    Response: NMFS agrees that ensuring sustainability and rebuilding 
the population are important aspects of providing long term 
opportunities for fishermen to harvest the resource. The selected 
alternatives are consistent with the objectives of the ICCAT rebuilding 
program, Magnuson-Stevens Act, ATCA, and the HMS FMP and will ensure 
the sustainability of the stock.
    Comment 2: To facilitate harvest of the United States allocated 
quota, the United States should make a limited number of new handgear 
permits available for distribution.
    Response: Making a limited number of new handgear permits available 
is one option for addressing the underharvest occurring in recent 
years. Since this would require a plan amendment, NMFS solicited 
comments regarding this and other options during the scoping process 
for Amendment 2 to the HMS FMP and may consider those options in 
Amendment 2 or other future rulemaking.
    Comment 3: If the United States is unable to catch its quota, there 
will be efforts by other ICCAT countries to permanently reduce the U.S. 
quota share and allocate that quota to other fishing nations. This will 
have conservation ramifications given that U.S. fisheries are better 
managed than fisheries in other ICCAT nations.
    Response: This rule implements recommendations agreed to at the 
2002 meeting of ICCAT. The North Atlantic swordfish quota levels are 
established through 2005. ICCAT will reevaluate the current quotas and 
recommend new ones at that time. NMFS will continue to evaluate the 
need for all current regulations with regard to the effect on harvest 
rates and will work with fishermen to preserve the U.S. quota share 
while ensuring consistency with the Magnuson-Stevens Act, the 
Endangered Species Act (ESA), and other domestic laws.
    Comment 4: U.S. underharvests are primarily a result of the 
premature closures of the directed fishery in 1997 and 1998 and the 
overly restrictive time/area closures currently in place. Scientific 
data shows swordfish recovering before implementation of the time/area 
closures. Because of current management, this once thriving domestic 
fishery has exhibited reduced effort and profitability.
    Response: NMFS implemented the current time and area closures and 
other restrictions to reduce bycatch in the pelagic longline fishery. 
This bycatch included juvenile swordfish, billfish, sharks, and sea 
turtles. NMFS will evaluate the impact and effectiveness of the 
closures in Amendment 2 to the HMS FMP or other future rulemaking and 
will modify them if necessary to meet management objectives and 
legislative requirements.
    Comment 5: One commenter opposed an increase in the North Atlantic 
swordfish quota. Even though the stock assessment indicates 
improvement, the stock is still overfished. Any increase in quota will 
slow down or reverse the improvement and lead to an increase in dead 
discards of juvenile swordfish, marlin, and sharks. Increasing the 
quota goes against NMFS' stated goal of risk-averse management. The 
increase is hard to understand given the United States has not landed 
the quota since 1995.
    Response: At its 2002 meeting, ICCAT conducted a North Atlantic 
swordfish stock assessment and determined that the population had 
nearly recovered to a level that will support maximum sustainable yield 
and that an increase

[[Page 68091]]

will still allow the stock to rebuild by 2009, the established goal for 
rebuilding Atlantic swordfish. Based on this finding, ICCAT recommended 
an increase in swordfish quota and will hold another stock assessment 
in 2005 to monitor its results. NMFS does not expect the increase in 
U.S. quota to result in an increase in dead discards. Further, based on 
current regulations and the level of effort in the U.S. fishery, it is 
unlikely that catch rates of target and bycatch species will increase.
    Comment 6: The United States should force ICCAT to reduce the 
overall quota and refuse to accept increases in quota for overfished 
stocks.
    Response: ICCAT is currently comprised of 38 contracting parties 
that cooperate to formulate management recommendations. The United 
States is not in a position to force ICCAT to adopt a particular quota 
because the organization works primarily by consensus. In this case, 
the stock assessment demonstrated that the swordfish population has 
nearly recovered to a level that will support maximum sustainable yield 
and that an increase in allowable harvest would not prevent rebuilding 
within the originally agreed timeframe. The North Atlantic swordfish 
quota was increased based on this scientific advice.

South Atlantic Swordfish Quota

    Comment 7: One commenter asked NMFS to explain why the United 
States lost South Atlantic swordfish quota despite quota increases for 
other nations fishing in that area.
    Response: The United States South Atlantic swordfish quota was 
reduced due to its lower catches in that area in recent years. However, 
up to 200 mt ww of swordfish landed between 5 degrees North and 5 
degrees South latitude may be applied against the North Atlantic 
swordfish quota. Because most of the historical U.S. catch of South 
Atlantic swordfish has been harvested from that area, this should 
mitigate most impacts from the reduction of the South Atlantic 
swordfish quota.
    Comment 8: One commenter opposed the proposed increase in South 
Atlantic quota to over 100 mt because it would increase pressure on a 
stock for which data are incomplete.
    Response: The Standing Committee on Research and Statistics (SCRS) 
conducted a stock assessment of South Atlantic swordfish in 2002. Due 
to discrepancies between several of the data sets, reliable stock 
assessment results could not be produced. In general, the SCRS noted 
that the total catches have decreased since 1995, as recommended. As a 
result, ICCAT increased the total allowable catch (TAC) for South 
Atlantic swordfish from 14,620 mt ww to 15,631 mt ww. The new ICCAT 
recommendation lowered the U.S. quota for South Atlantic swordfish from 
384 mt ww in 2002 to 100 mt ww in 2003-2005. ICCAT further recommended 
that up to 200 mt ww of swordfish landed between 5 degrees North and 5 
degrees South latitude be applied against the North Atlantic swordfish 
quota.

Quota Transfer

    Comment 9: One commenter stated that the transfer of 25 mt ww of 
North Atlantic swordfish quota to Canada is an industry initiative to 
keep from losing part of the U.S. quota allocation if it is not likely 
to be harvested in the near future. Another commenter stated that the 
United States should keep control of this quota and not transfer it to 
Canada because any uncaught quota will help the stock rebuild faster 
and reduce bycatch.
    Response: If the quota transfer to Canada did not transpire and 
there was a 25 mt ww underharvest, the remaining quota would be 
incorporated into the next year's U.S. North Atlantic swordfish quota. 
While keeping the 25 mt ww may help the stock rebuild in the short term 
(because neither the United States nor Canada would catch it), the 
quota would likely be harvested in the future. Transferring the quota 
to Canada may help maintain the U.S. allocation, but due to the current 
level of underharvests, more measures may be necessary to facilitate 
harvest of the full U.S. allocation.
    Comment 10: Quota transfers and rulemaking concerning ICCAT 
recommendations should be conducted in a more timely manner. The start 
of the fishing year was changed to June 1 to give NMFS the opportunity 
to propose and finalize any actions needed as a result of ICCAT 
recommendations. Untimely actions can negatively impact U.S. fishermen 
with respect to foreign competitors.
    Response: NMFS attempts to conduct rulemaking in as timely a manner 
as possible. However, compliance with other applicable laws, such as 
the Endangered Species Act, may require the preparation of additional 
analyses and consultations, which can cause delays.

Dead Discard Allowance

    Comment 11: Because the dead discard allowance is slated to be 
phased out in 2004, NMFS should develop a rule to eliminate the waste 
resulting from the strict implementation of the minimum size. U.S. 
pelagic longline vessels should not be required to discard undersized 
swordfish that cannot be returned to the sea alive and that are caught 
outside the closed areas. The minimum size should be enforced for other 
gear types within the closed areas.
    Response: Currently, the minimum size restriction is a component of 
an ICCAT management recommendation. The U.S. adoption of the 
alternative minimum size with no tolerance is designed to reduce dead 
discards while still avoiding excess mortality of juvenile fish. Until 
ICCAT changes the minimum size, and NMFS implements the changes via a 
rulemaking process, NMFS will continue to enforce it for all gear types 
in all areas.
    Comment 12: Commenters oppose the 80 mt ww dead discard allowance 
over and above the increase in quota. Dead discards should be counted 
against the existing quota.
    Response: Previously, ICCAT recommended that the dead discard 
allowance for North Atlantic swordfish be phased out by 2004. At that 
time, a dead discard target was not provided for the 2003 fishing year. 
ICCAT corrected this omission in the 2002 recommendation and maintained 
the established schedule for the elimination of the dead discard 
allowance. Starting in 2004, dead discards will be counted against the 
applicable quotas for the harvesting nations.

North Atlantic Swordfish Quotas

    The adjusted 2002 fishing year landings quota was 3,363.5 mt 
dressed weight (dw). Directed and incidental fishery landings of North 
Atlantic swordfish during the 2002 fishing year were reported to be 
1747.2 mt dw, with a total underharvest of 1,616.3 mt dw. In addition 
to the landings quota, ICCAT allocated to the United States a 2002 dead 
discard allowance of 120.3 mt dw, of which an estimated 261.6 mt dw 
were discarded. The 141.3 mt dw excess dead discards are required to be 
deducted from quota available to be harvested in the subsequent fishing 
year. Thus, from the 2002 fishing year 1,475.0 mt dw is available as 
carryover (1,616.3 - 141.3).
    In addition, the dead discards from 2001 were not accounted for at 
the beginning of the 2002 fishing year because the estimates were not 
available at that time. The total dead discard allowance in 2001 was 
180.4 mt dw, and the United States discarded an estimated 306.8 mt dw. 
The 126.4 mt dw excess dead discards are required to be deducted from 
quota available to be harvested in the subsequent fishing year. 
However, due to the fact that the

[[Page 68092]]

2002-2003 fishing years have been completed, it is necessary to deduct 
this amount from 2004.
    The 2003 fishing year base landings quota established by ICCAT was 
2,915 mt dw, not adjusted for underharvests. NMFS is adjusting this 
quota by the carryover available from 2002 and the excess dead discards 
in 2001. Thus, the adjusted total landings quota for 2003 is 4,263.6 mt 
dw (2,915 + 1,475 - 126.4).
    Although the 2003 fishing year for North and South Atlantic 
swordfish ended on May 31, 2004, NMFS is including the ICCAT 
established quotas and landings for 2003 in this rule in order to 
provide a complete accounting of underharvests in 2003 which were used 
to establish the 2004 adjusted quotas. Thus, the directed and 
incidental fishery landings of North Atlantic swordfish during the 2003 
fishing year were reported to be 1,509 mt dw. Under this rule, NMFS is 
also transferring 18.8 mt dw out of the reserve category to Canada. In 
2003, 2,735.8 mt dw of the available quota was not harvested (4,263.6 - 
1,509 - 18.8). In addition to the landings quota, ICCAT allocated to 
the United States a 2003 dead discard allowance of 60.0 mt dw, of which 
an estimated 278 mt dw were discarded. The 218 mt dw excess dead 
discards are required to be deducted from quota available to be 
harvested in the subsequent fishing year. Therefore, a net total of 
2,517.8 mt dw (2,735.8 - 218) of unharvested swordfish quota may be 
carried over to 2004 from the 2003 fishing year.
    For 2004, the fishing year base landings quota established by ICCAT 
is 2,937.6 mt dw, not adjusted for underharvests. NMFS is adjusting 
this quota based on underharvest from 2003, and the excess discards 
from 2002. Thus, the new adjusted quota for 2004 is 5,455.4 mt dw 
(2,937.6 + 2,517.8), of which 5,035.1 mt dw is for the directed 
category, 300 mt dw is for the incidental category, and 120.3 mt dw is 
for the reserve category. In addition, 18.8 mt dw of the reserve 
category quota will be transferred to Canada for the 2004 fishing year.

South Atlantic Swordfish

    Beginning June 1, 2003, through May 31, 2005, the annual ICCAT 
established quota for the South Atlantic swordfish stock is 75.2 mt dw. 
Beginning June 1, 2006, the annual directed fishery quota for the South 
Atlantic swordfish stock is 90.2 mt dw. ICCAT recommended that the U.S. 
underharvest from 2000 be carried over to 2003. Underharvests from 2001 
and 2002 were ineligible for carryover because individual country quota 
levels for those years were not agreed to by ICCAT, but established 
autonomously.
    For 2000, the landings quota was set at 289 mt dw of which 93.8 mt 
dw were landed, leaving an underharvest of 195.2 mt dw. This 
underharvest is added to the base 2003 fishing year quota for an 
adjusted 2003 fishing year quota of 270.4 mt dw (75.2 + 195.2). In 
2003, only 11.3 mt dw was harvested during the fishing year, leaving 
259.1 mt dw available for carryover to the subsequent fishing year 
(270.4 - 11.3).
    For 2004, the base fishing year landings quota established by ICCAT 
was 75.2 mt dw. NMFS is adjusting this base quota to account for the 
underharvest from 2003. Thus, the new adjusted quota for 2004 is 334.3 
mt dw (75.2 + 259.1).

Changes from the Proposed Rule

    The final rule contains no significant changes from the proposed 
rule published on June 20, 2003 (68 FR 36967).

Classification

    This final rule is published under the authority of the Magnuson-
Stevens Act, 16 U.S.C. 1801 et seq., and ATCA, 16 U.S.C. 971 et seq. 
The Assistant Administrator (AA) for Fisheries, NOAA, has determined 
that the regulations contained in this rule are necessary to implement 
the recommendations of ICCAT and to manage the domestic Atlantic highly 
migratory species fisheries.
    NMFS prepared an Environmental Assessment (EA) for this final rule, 
and the AA has concluded that there would be no significant impact on 
the human environment. The EA presents analyses of the anticipated 
impacts of these final actions and the alternatives considered. A copy 
of the EA, and other analytical documents prepared for this rule, are 
available from NMFS (see ADDRESSES).
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    Based on the management measures in several proposed rules, 
including the proposed rule for these regulations, a new Biological 
Opinion (BiOp) on the Atlantic pelagic longline (PLL) fishery was 
issued on June 1, 2004. The 2004 BiOp found that the continued 
operation of the fishery was not likely to jeopardize the continued 
existence of loggerhead, green, hawksbill, Kemp's ridley, or olive 
ridley sea turtles, but was likely to jeopardize the continued 
existence of leatherback sea turtles. The 2004 BiOp identified 
Reasonable and Prudent Alternatives (RPAs) necessary to avoid 
jeopardizing leatherbacks, and listed the Reasonable and Prudent 
Measures (RPMs) and terms and conditions necessary to authorize 
continued take as part of the revised incidental take statement. On 
July 6, 2004, NMFS published a final rule (69 FR 40734) implementing 
additional sea turtle bycatch and bycatch mortality mitigation measures 
for all Atlantic vessels with PLL gear onboard. NMFS is implementing 
the other RPMs in compliance with the BiOp. On August 12, 2004, NMFS 
published an Advance Notice of Proposed Rulemaking (69 FR 49858) to 
request comments on potential regulatory changes to further reduce 
bycatch and bycatch mortality of sea turtles, as well as comments on 
the feasibility of framework mechanisms to address unanticipated 
increases in sea turtle interactions and mortalities, should they 
occur. NMFS will undertake additional rulemaking and non-regulatory 
actions, as required, to implement any management measures that are 
required under the 2004 BiOp. The majority of the measures that will be 
implemented by this current rule are not expected to have adverse 
impacts. The annual swordfish quota is being increased to 3,877 mt ww 
from 2,951 mt ww which, if effort increases, could potentially increase 
the number of protected species interactions. However, since 2000, U.S. 
fishermen have not caught either the North or South Atlantic swordfish 
quotas. For example, in 2003, there was a 1,348.6 mt dw underharvest of 
North Atlantic swordfish and a 195.2 mt dw underharvest of South 
Atlantic swordfish. Based on existing regulations, including time/area 
closures, minimum size, and permit restrictions, NMFS feels it is 
unlikely that there will be an increase in effort in the fishery. Thus, 
interactions with sea turtles should remain stable. Accordingly, no 
irreversible or irretrievable commitments of resources are expected 
from this action as the measures to be implemented by this final rule 
are not expected to adversely affect endangered species.
    In examining the potential impact of these regulations, NMFS has 
determined that the only measure that could adversely affect stocks of 
protected species is the increase in the base North Atlantic swordfish 
quota from 2,951 mt ww to 3,877 mt ww and then to 3,907 mt ww in the 
upcoming fishing years. The increase in available quota could trigger 
an increase in fishing effort which could then increase the incidental 
catch of protected species. However, an increase in the incidental take 
of protected species by the PLL fleet due to an increase in effort is

[[Page 68093]]

unlikely. For the past several years, the level of effort in the PLL 
fishery has been steadily declining and a number of restrictions such 
as limited access and time/area closures have been placed on the PLL 
fleet. This declining effort has led to underharvests of 1,025.4 mt dw 
in the 2001 fishing year (68 FR 14167 March 24, 2003, correction 68 FR 
16216, April 3, 2003), 1,475 mt dw in 2002, and 2,517.8 mt dw in 2003 
(the latter two estimates include dead discard overharvests from 2002 
and 2003).
    In addition, NMFS has implemented regulations requiring PLL vessels 
to use only 18/0 hooks with whole mackerel and/or squid in the 
Northeast Distant (NED) Statistical Reporting Area, and 16/0 hooks and/
or 18/0 hooks everywhere outside the NED using whole finfish or squid, 
and to possess and use sea turtle release equipment with specified sea 
turtle handling and release protocols. Handling and release guidelines 
are also required to be posted in the wheelhouse. Because this final 
rule does not relieve any of these restrictions, the level of effort in 
the fleet is unlikely to increase despite the change in quota level. 
Thus, the current level of incidental takes of protected species will 
remain at current levels or will decrease.
    NMFS determined that this rule will be implemented in a manner that 
is consistent to the maximum extent practicable with the enforceable 
policies of the approved coastal zone management programs of coastal 
states in the Atlantic, Gulf of Mexico, and Caribbean. All of the 
states that replied to the letter regarding compliance of the proposed 
rule with the Coastal Zone Management Act found NMFS' proposed actions 
to be consistent with their coastal zone management programs. NMFS 
presumes that the states that did not respond also concur.
    At the proposed rule stage, NMFS conducted an Initial Regulatory 
Flexibility Analysis (IRFA) as required by the Regulatory Flexibility 
Act (RFA). NMFS received no comments regarding the potential economic 
impact of the proposed rule or on the IRFA. In preparing this final 
rule, NMFS has conducted a final EA and a final regulatory impact 
review that examines the impacts of the selected alternatives, 
discussed previously in this rulemaking. These analyses indicate that 
this rule would have negligible economic impacts on small entities. 
Therefore, in compliance with the RFA, the Chief Counsel for Regulation 
of the Department of Commerce has certified to the Chief Counsel for 
Advocacy of the Small Business Administration that this final rule will 
not have a significant economic impact on a substantial number of small 
entities. The factual basis for this certification is stated below.
    As required by ATCA, this rule implements the recommendations of 
the 2002 meeting of the International Commission for the Conservation 
of Atlantic Tunas (ICCAT) regarding swordfish. The final rule adjusts 
the quota for North and South Atlantic swordfish, establishes the 2003 
dead discard allowance, transfers 25 mt ww of North Atlantic swordfish 
quota to Canada, and allows up to 200 mt ww of swordfish caught in the 
area between 5 degrees North and 5 degrees South to be applied to the 
North Atlantic swordfish quota. These actions are necessary to ensure 
continued progress toward the conservation goals of ICCAT, the 
Magnuson-Stevens Act, ATCA, and the FMP for all tunas, swordfish, and 
sharks.
    There are currently 397 commercial permit holders of which fewer 
than 200 have reported swordfish landings; most commercial permit 
holders use pelagic longline gear. There are also approximately 20,000 
permit holders who could land swordfish recreationally (i.e., not for 
profit). Other sectors of highly migratory species fisheries such as 
dealers, processors, bait houses, and gear manufacturers might be 
affected by the final regulations, however, the final rule does not 
apply directly to them.
    The overall result of the final rule would be to increase the 2004 
North Atlantic swordfish quota by approximately 2,500 mt dw and the 
2004 South Atlantic swordfish quota by 259.1 mt dw. These increases 
could potentially result in revenue increases, however, U.S. fishermen 
have not met either the North or South Atlantic swordfish quotas since 
2000. For example, in 2003, there was a 1,348.6 mt dw underharvest of 
North Atlantic swordfish and a 195.2 mt dw underharvest of South 
Atlantic swordfish. The net impact of the of the final actions results 
in a quota level that is greater than current catches. Thus, NMFS does 
not believe that the net benefits and costs will change significantly 
as a result of the implementation of the selected alternatives compared 
to the baseline of no action.
    Criteria used to evaluate potential impacts include analysis of 
gross revenues in recent years from pelagic longline logbook data. In 
future fishing years, the present value of gross and net revenues for 
the swordfish fishery at the ex-vessel level could be increased, but 
that would depend on the extent to which fishermen can expand their 
effort to catch the quota. For example, increasing the North Atlantic 
swordfish quotas could increase ex-vessel grows revenues by $4.9 
million if the entire quota is caught. Currently, based on existing 
regulations, including time/area closures, minimum size, and permit 
restrictions, NMFS feels it is unlikely that there will be an increase 
in effort in the fishery. Thus, the economic impacts of the rule should 
be negligible. If effort is increased, U.S. fishermen would likely 
experience positive benefits as a result of this final rule. As a 
result, a FRFA was not prepared.

List of Subjects in 50 CFR Part 635

    Fisheries, Fishing, Fishing vessels, Foreign relations, Imports, 
Penalties, Reporting and recordkeeping requirements, Treaties.

    Dated: November 17, 2004.
Rebecca J. Lent,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

0
For the reasons set out in the preamble, 50 CFR part 635 is amended as 
follows:

PART 635--ATLANTIC HIGHLY MIGRATORY SPECIES

0
1. The authority citation for part 635 continues to read as follows:

    Authority: 16 U.S.C. 971 et seq.; 16 U.S.C. 1801 et seq.


0
2. In Sec.  635.27, paragraph (c)(1) is revised to read as follows:


Sec.  635.27  Quotas.

* * * * *
    (c) Swordfish--(1) Categories. Consistent with ICCAT 
recommendations, the fishing year's total amount of swordfish that may 
be caught, retained, possessed, or landed by persons and vessels 
subject to U.S. jurisdiction is divided into quotas for the North 
Atlantic swordfish stock and the South Atlantic swordfish stock. The 
quota for the North Atlantic swordfish stock is further divided into 
equal semi-annual directed fishery quotas, an annual incidental catch 
quota for fishermen targeting other species or taking swordfish 
recreationally, and a reserve category.
    (i) North Atlantic swordfish. (A) A swordfish from the North 
Atlantic swordfish stock caught prior to the directed fishery closure 
by a vessel for which a directed fishery permit, or a handgear permit 
for swordfish, has been issued is counted against the directed fishery 
quota. The annual fishery quota, not adjusted for over- or 
underharvests, is 2,937.6 mt dw for 2004 and 2,937.6 mt dw for 2005. In 
2004 and 2005, the

[[Page 68094]]

annual quota is subdivided into two equal semiannual quotas of 1,468.8 
mt dw: one for June 1 through November 30, and the other for December 1 
through May 31 of the following year.
    (B) A swordfish from the North Atlantic swordfish stock landed by a 
vessel for which an incidental catch permit for swordfish or an HMS 
Angling or Charter/Headboat permit has been issued, or caught after the 
effective date of a closure of the directed fishery from a vessel for 
which a directed fishery permit or a handgear permit for swordfish has 
been issued, is counted against the incidental catch quota.
    (C) A dead discard allowance of 60.2 mt dw is established for North 
Atlantic swordfish in 2003, but the allowance is reduced to zero in 
2004 and beyond. All swordfish discarded dead from U.S. fishing vessels 
in 2004 and beyond, regardless of whether such vessels are permitted 
under this part, shall be counted against the annual directed fishing 
quota.
    (D) A portion of the total allowable catch of North Atlantic 
swordfish shall be held in reserve for inseason adjustments to fishing 
categories, to compensate for projected or actual overharvest in any 
category, for fishery independent research, or for other purposes 
consistent with management objectives.
    (E) In the event of an overharvest of South Atlantic swordfish, up 
to 150.4 mt dw of swordfish landed between 5 degrees North and 5 
degrees South latitude may be applied against the North Atlantic 
swordfish quota. Otherwise, swordfish landed from this area shall be 
applied against the South Atlantic swordfish quota. For example, if the 
South Atlantic swordfish quota were 100 mt dw, and 50 mt dw were landed 
between 5 degrees North and 5 degrees South latitude, and 75 mt dw were 
caught south of 5 degrees South latitude, then 25 mt dw of the 
swordfish caught between 5 degrees North and 5 degrees South latitude 
would be applied against the North Atlantic swordfish quota. If only 25 
mt dw of swordfish were caught between 5 degrees North and 5 degrees 
South latitude, and 150 mt dw of swordfish were caught south of 5 
degrees South latitude, 25 mt dw would be applied against the North 
Atlantic swordfish quota. The remaining 50 mt dw overharvest would be 
counted against the following year's South Atlantic swordfish quota.
    (ii) South Atlantic swordfish. From June 1, 2003, to May 31, 2006, 
the annual directed fishery quota for the South Atlantic swordfish 
stock is 75.2 mt dw. Beginning June 1, 2006, the annual directed 
fishery quota for the South Atlantic swordfish stock is 90.2 mt dw. The 
entire quota for the South Atlantic swordfish stock is reserved for 
vessels with pelagic longline gear onboard and for which a directed 
fishery permit for swordfish has been issued; retention of swordfish 
caught incidental to other fishing activities or with other fishing 
gear is prohibited in the Atlantic Ocean south of 5 degrees North 
latitude.
* * * * *
[FR Doc. 04-25958 Filed 11-18-04; 3:44 pm]
BILLING CODE 3510-22-S