[Federal Register Volume 70, Number 224 (Tuesday, November 22, 2005)]
[Proposed Rules]
[Pages 70575-70577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-23102]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 051114298-5298-01; I.D. 110105C]
RIN 0648-AT12


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Gulf of Mexico Commercial Grouper Fishery; Trip Limit

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

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS issues this proposed rule to implement a regulatory 
amendment to the Fishery Management Plan for the Reef Fish Resources of 
the Gulf of Mexico (FMP) prepared by the Gulf of Mexico Fishery 
Management Council (Council). This proposed rule would establish a 
6,000-lb (2,722-kg) commercial trip limit for shallow-water and deep-
water grouper, combined, in the exclusive economic zone of the Gulf of 
Mexico. The intended effect of this proposed rule is to minimize the 
effects of derby fishing and prolong the fishing season.

DATES: Written comments on the proposed rule must be received no later 
than 5 p.m., eastern time, on December 7, 2005.

ADDRESSES: You may submit comments on the proposed rule by any of the 
following methods:
     E-mail: [email protected]. Include in the 
subject line the following document identifier: 0648-AT12.
     Federal e-Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Andy Strelcheck, Southeast Regional Office, NMFS, 
263 13th Avenue South, St. Petersburg, FL 33701.
     Fax: 727-824-5308; Attention: Andy Strelcheck.
    Copies of the regulatory amendment, which includes a Regulatory 
Impact Review (RIR), an Initial Regulatory Flexibility Analysis (IRFA), 
and an Environmental Assessment (EA), may be obtained from the Gulf of 
Mexico Fishery Management Council, 2203 N. Lois Avenue, Suite 1100, 
Tampa, FL 33607; telephone: 813-348-1630; fax: 813-348-1711; e-mail: 
[email protected]. Copies of the regulatory amendment may 
also be downloaded from the Council's website at www.gulfcouncil.org.

FOR FURTHER INFORMATION CONTACT: Andy Strelcheck, telephone: 727-824-
5374; fax: 727-824-5308; e-mail: [email protected].

SUPPLEMENTARY INFORMATION: The reef fish fishery of the Gulf of Mexico 
is managed under the FMP. The FMP was prepared by the Council and is 
implemented under the authority of the Magnuson-Stevens Fishery 
Conservation and Management Act (Magnuson-Stevens Act) by regulations 
at 50 CFR part 622.
    On July 15, 2004 (69 FR 33315, June 15, 2004), NMFS implemented 
Secretarial Amendment 1 to the FMP to establish a red grouper 
rebuilding plan, including a 5.31 million-lb (2.42 million-kg), gutted 
weight, commercial quota and a 1.25 million-lb (0.57 million-kg), 
gutted weight, recreational target catch level for red grouper. 
Secretarial Amendment 1 also reduced the commercial quotas for deep-
water grouper (i.e., speckled hind and yellowedge, misty, warsaw, and 
snowy grouper) and shallow-water grouper (i.e., all grouper other than 
deep-water grouper, goliath grouper, and Nassau grouper and including 
scamp before the quota for shallow-water grouper is reached). In 2004, 
the commercial deep-water grouper and shallow-water grouper quotas were 
reached prior to the end of the fishing year, and the fisheries were 
closed on July 15, 2004 (69 FR 41433, July 9, 2004), and November 15, 
2004 (69 FR 65092, November 10, 2004), respectively. In November 2004, 
the Council, at the request of representatives of the commercial 
grouper fishing industry, asked NMFS to develop an emergency or interim 
rule establishing trip limits for the commercial grouper fishery in 
2005. Trip limits, which began at 10,000 lb (4,536 kg) and stepped down 
to 7,500 lb (3,402 kg) and then to 5,500 lb (2,495 kg) at defined 
trigger points, were implemented by NMFS through an emergency rule that 
was effective from March 3 through August 16, 2005 (70 FR 8037, 
February 17, 2005). NMFS extended the emergency rule and trip limits 
for an additional 180 days effective August 17, 2005, through February 
12, 2006 (70 FR 48323, August 17, 2005). These trip limits were 
implemented to prolong the shallow-water grouper and deep-water grouper 
fishing seasons in 2005 and to reduce the adverse effects associated 
with derby fishing. However, the emergency trip limits were not 
restrictive enough to achieve the intended objectives. In fact, the 
deep-water and shallow-water grouper fisheries closed earlier in 2005 
(June 23, 2005, and October 10, 2005, respectively) than they had in 
2004.
    The Council prepared a regulatory amendment to evaluate 
alternatives and establish more permanent trip limits for the 
commercial grouper fishery. After considering the effectiveness of 
existing trip limits, management alternatives, and public testimony, 
the Council adopted a 6,000-lb (2,722-kg) commercial trip limit for 
shallow-water grouper and deep-water grouper, combined. This proposed 
rule would implement the 6,000-lb (2,722-kg) trip limit. To maximize 
the effectiveness of this more restrictive trip limit, the Council and 
NMFS have agreed the existing trip limits implemented via emergency 
rule (70 FR 48323, August 17, 2005) would terminate upon implementation 
of the 6,000-lb (2,722-kg) trip limit proposed in this rule.

Classification

    NMFS has determined that the proposed rule is consistent with the 
FMP and preliminarily determined that the rule is consistent with the 
Magnuson-Stevens Fishery Conservation and Management Act and other 
applicable laws.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    NMFS prepared an IRFA as required by section 603 of the Regulatory 
Flexibility Act. The IRFA describes the

[[Page 70576]]

economic impact this proposed rule, if adopted, would have on small 
entities. A description of the action, why it is being considered, and 
the legal basis for this action are contained at the beginning of this 
section in the preamble and in the SUMMARY section of the preamble. A 
summary of the analysis follows.
    This proposed rule would establish a 6,000-lb (2,722-kg) trip limit 
for the commercial grouper fishery in the Gulf of Mexico. The purpose 
for this regulatory amendment is to reduce the adverse socioeconomic 
effects of derby fishing in the commercial sector and prolong the 
fishing season. The Magnuson-Stevens Fishery Conservation and 
Management Act provides the statutory basis for the proposed rule.
    No duplicative, overlapping, or conflicting Federal rules have been 
identified.
    An estimated 1,129 vessels were permitted to engage in commercial 
fishing for Gulf reef fish (which include grouper) in early 2004, down 
from 1,718 vessels in 1993. Although a permit moratorium has limited 
access in this fishery since 1992, transfer of permits is not 
restricted. Those seeking to enter the fishery can purchase a permit 
from those seeking to exit the fishery, provided they meet income and 
other requirements. However, total participation in terms of both the 
number of permits and the number of vessels landing Gulf reef fish has 
consistently declined since 1993.
    An estimated 1,157 vessels had permits to fish commercially for 
Gulf reef fish from 2002-2004, and 1,021 vessels had historical, 
logbook-reported landings of Gulf reef fish. This total includes 928 
vessels with landings of Gulf grouper, for which the median estimated 
gross revenue for all reported landings of fish was approximately 
$20,000 per vessel per year, and for which the maximum revenue ranged 
from $478,000-$543,000. For the longline fleet (162 vessels per year, 
on average), the median annual gross revenue ranged from $96,000-
$102,000 (84-90 percent from grouper). The handline fleet (765 vessels 
per year, on average) had median annual gross revenue of under $17,000 
(44-48 percent from grouper). Some vessels use both gears, so the 
numbers of vessels cannot be added across gear types.
    For the 928 vessels with reported landings of Gulf grouper, 
historical fishery performance resulted in estimated annual average 
gross revenue of $46 million for all logbook-reported fish in 2002-
2004. This includes gross revenue of $39 million for all fish on trips 
with grouper landings ($25 million from red grouper). The net revenue 
for these trips was approximately $29 million (annual averages per 
vessel for 928 vessels are $41,000 for gross revenue and $31,000 for 
net revenue). Net revenue for the commercial fishing sector, computed 
as trip revenue minus trip costs, includes returns to all labor and 
capital.
    Simulation of fishery performance under status quo conditions 
produced estimates that are slightly lower than historical fishery 
performance: gross revenue of approximately $37 million for all fish on 
trips with grouper landings and $27 million for net revenue (annual 
averages per vessel for 922 vessels are $40,000 for gross revenue and 
$29,000 for net revenue). Projected net revenue is approximately $10.7 
million for the longline fleet (average, $66,000 per vessel per year 
for 161 vessels), and $14.5 million for the vertical line fleet 
(average, $19,000 per vessel per year for 748 vessels).
    Between 1997-2000, there were on average 123 reef fish dealers 
actively buying and selling in the grouper market. Of these, 101 
dealers (82 percent) sold more than $30,000 per year worth of domestic 
grouper on a regular basis. These dealers may hold multiple types of 
permits. Because the extent of business operation for these dealers is 
unknown, it is not possible to determine what percentage of their 
business comes from grouper. Average employment information per reef 
fish dealer is not known, but total employment in 1997 for reef fish 
processors in the Southeast was estimated at approximately 700 
individuals, both part and full time. It is assumed that all processors 
must be dealers, yet a dealer need not be a processor. Therefore, total 
dealer employment is expected to be slightly more than 700 individuals. 
Since none of the reef fish processors meet the SBA employment 
threshold, it is unlikely that any of the dealers will meet that 
threshold.
    The proposed rule would not change current reporting, 
recordkeeping, and other compliance requirements under the FMP. These 
requirements include qualification criteria for the commercial permits, 
landing reports for vessels with commercial permits, and participation 
in additional data collection programs if selected by NMFS. All of the 
information elements required for these requirements are standard 
elements essential to the successful operation of a fishing business 
and should, therefore, already be collected and maintained as standard 
operating practice by the business. The requirements do not require 
professional skills and, therefore, are deemed not to be onerous.
    The Small Business Administration defines a small business in the 
commercial fishery sector as a firm that is independently owned and 
operated, is not dominant in its field of operation, and has annual 
receipts up to $3.5 million per year. For support industries, the 
appropriate thresholds are a firm with fewer than 500 employees in the 
case of fish processors, or fewer than 100 employees in the case of 
fish dealers. Given the profiles presented above, it is determined that 
all commercial fishing entities and dealers that will be affected by 
the proposed action are small business entities. Because all said 
entities would be potentially affected, it is determined that the 
proposed action will affect a substantial number of small entities.
    The outcome of ``significant economic impact'' can be ascertained 
by examining two issues: disproportionality and profitability. The 
disproportionality question is do the regulations place a substantial 
number of small entities at a significant competitive disadvantage to 
large entities? All the commercial fishing or dealer entities affected 
by the proposed rule are considered small entities, so the issue of 
disproportionality does not arise in the present case. The 
profitability question is do the regulations significantly reduce 
profit for a substantial number of small entities? The proposed rule is 
projected to reduce net revenues by $760,000 to $1.09 million for the 
bottom longline sector. Compared with projected annual net revenue of 
$10.7 million for this sector under the status quo ($66,000 per vessel 
per year for 161 vessels), the projected net revenue reduction equates 
to approximately $4,700-$6,700, or approximately 7-10 percent, per 
vessel per year, on average.
    For the vertical line sector, the proposed rule is projected to 
increase net revenues by $81,000-$112,000 per year. Compared with 
projected annual net revenue of $14.5 million for this sector under the 
status quo ($19,000 per vessel per year for 748 vessels), the projected 
increase in net revenue equates to approximately $100-$150 per vessel, 
or less than a 1 percent increase.
    The proposed commercial trip limits are expected to reduce the 
adverse but unquantifiable economic effects of derby fishing that are 
expected to develop under the status quo. Although the direct impacts 
of derby fishing cannot be quantified using current data and models, 
they are expected to be substantial, and reduction of those derby 
effects is expected to mitigate any

[[Page 70577]]

losses in net revenue to the fishery associated with the implementation 
of trip limits.
    Five alternatives, including the status quo, were considered 
relative to the proposed commercial action. The status quo alternative 
would eliminate the short-term adverse impacts of the proposed action 
but would not address the potential development of a derby fishery and 
would not, therefore, achieve the Council's objectives.
    A second alternative to the proposed action would establish a step-
down trip limit consisting of trip limits of 10,000, 7,500, and 5,500 
lb (4,536, 3,402, and 2,495 kg), gutted weight, based on target dates 
and accumulated landing totals. This alternative, while resulting in 
lower short-term reductions in net revenues relative to the proposed 
action, does not appear to sufficiently constrain commercial landings, 
as evidenced by 2005 fishery performance. Therefore, this alternative 
is not sufficient to lessen derby conditions and reduce the length of 
the quota closure.
    The third alternative to the proposed action would start the 
commercial trip limit at 7,500 lb (3,402 kg) with step-down to 5,000 lb 
(2,268 kg). This alternative would potentially reduce the short-term 
reduction in net revenues relative to the proposed action. However, 
based on preliminary 2005 fishery performance, the starting limit 
appears insufficient to counter derby pressure.
    The fourth alternative would also start with an initial trip limit 
of 7,500 lb (3,402 kg) with a step-down to 3,500 lb (1,588 kg). The 
short-term adverse impacts of this alternative, however, exceed those 
of the proposed action.
    The fifth alternative to the proposed commercial action would begin 
the fishery with a 4,000-lb (1,814-kg) trip limit and allow the trip 
limit to either be increased, decreased, or remain the same depending 
upon fishery performance. Although this scenario cannot be fully 
analyzed due to the absence of a clearly specified step up/down 
decision rule, the initial limit is so low that it is expected to 
generate excessive negative impacts, particularly on the bottom 
longline sector.
    Copies of the IRFA are available from the Council (see ADDRESSES).

List of Subjects in 50 CFR Part 622

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

    Dated: November 17, 2005.
John Oliver,
Deputy Assistant Administrator for Operations, National Marine 
Fisheries Service.
    For the reasons set out in the preamble, 50 CFR part 622 is 
proposed to be amended as follows:

PART 622--FISHERIES OF THE CARIBBEAN, GULF, AND SOUTH ATLANTIC

    1. The authority citation for part 622 continues to read as 
follows:

    Authority: 16 U.S.C. 1801 et seq.
    2. In Sec.  622.44, introductory text and paragraph (g) are revised 
to read as follows:


Sec.  622.44  Commercial trip limits.

    Commercial trip limits are limits on the amount of the applicable 
species that may be possessed on board or landed, purchased, or sold 
from a vessel per day. A person who fishes in the EEZ may not combine a 
trip limit specified in this section with any trip or possession limit 
applicable to state waters. A species subject to a trip limit specified 
in this section taken in the EEZ may not be transferred at sea, 
regardless of where such transfer takes place, and such species may not 
be transferred in the EEZ. For fisheries governed by this part, 
commercial trip limits apply as follows (all weights are round or 
eviscerated weights unless specified otherwise):
* * * * *
    (g) Gulf deep-water and shallow-water grouper, combined. For 
vessels operating under the quotas in Sec.  622.42(a)(1)(ii) or 
(a)(1)(iii), the trip limit for Gulf deep-water and shallow-water 
grouper combined is 6,000 lb (2,722 kg), gutted weight. However, when 
the quotas in Sec.  622.42(a)(1)(ii) or (a)(1)(iii) are reached and the 
respective fishery is closed, the commercial trip limit for the species 
subject to the closure is zero. (See Sec.  622.42(a)(1)(ii) and 
(a)(1)(iii) for the species included in the deep-water and shallow-
water grouper categories, respectively.)
[FR Doc. 05-23102 Filed 11-17-05; 2:58 pm]
BILLING CODE 3510-22-S