[Federal Register Volume 71, Number 65 (Wednesday, April 5, 2006)]
[Proposed Rules]
[Pages 17062-17070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-3263]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 051128312-5312-01; I.D. 111605A]
RIN 0648-AS15


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Shrimp Fishery of the Gulf of Mexico; Amendment 13

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 Amendment 13 to 
the Fishery Management Plan for the Shrimp Fishery of the Gulf of 
Mexico (Amendment 13), as prepared and submitted by the Gulf of Mexico 
Fishery Management Council (Council). This proposed rule would 
establish a 10-year moratorium on issuance of Federal Gulf shrimp 
vessel permits; require owners of vessels fishing for or possessing 
royal red shrimp from the Gulf of Mexico exclusive economic zone (EEZ) 
to have a royal red shrimp endorsement; require owners or operators of 
all federally permitted Gulf shrimp vessels to report information on 
landings and vessel and gear characteristics; and require vessels 
selected by NMFS to carry observers and/or install an electronic 
logbook provided by NMFS. In addition, Amendment 13 would establish 
biological reference points for penaeid shrimp and status determination 
criteria for royal red shrimp. The intended effects of this proposed 
rule are to provide essential fisheries data, including bycatch data, 
needed to improve management of the fishery and to control access to 
the fishery.

DATES: Written comments on this proposed rule must be received no later 
than 5 p.m., eastern time, on May 22, 2006.

ADDRESSES: You may submit comments on the proposed rule by any of the 
following methods:
     E-mail: [email protected]. Include in the 
subject line of the e-mail comment the following document identifier: 
0648-AS15.
     Federal e-Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Steve Branstetter, Southeast Regional Office, NMFS, 
263 13\th\ Avenue South, St. Petersburg, FL 33701.
     Fax: 727-824-5308.
    Copies of Amendment 13, which includes an Environmental Assessment, 
an Initial Regulatory Flexibility Analysis (IRFA), and a Regulatory 
Impact Review, may be obtained from the Gulf of Mexico.
    Comments regarding the burden-hour estimates or other aspects of 
the collection-of-information requirements contained in this proposed 
rule may be submitted in writing to Jason Rueter at the Southeast 
Regional Office address (above) and to David Rostker, Office of 
Management and Budget (OMB), by e-mail at [email protected], or 
by fax to 202-395-7285.

FOR FURTHER INFORMATION CONTACT: Steve Branstetter, telephone: 727-551-
5796; fax: 727-824-5308; e-mail: [email protected].

SUPPLEMENTARY INFORMATION: The shrimp fishery in 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.

Amendment 13

Royal Red Shrimp Permit Endorsements

    For a person aboard a vessel to fish for royal red shrimp in the 
Gulf of Mexico EEZ or possess royal red shrimp in or from the Gulf of 
Mexico EEZ, this rule would require that a valid commercial vessel 
permit endorsement for royal red shrimp be issued to the vessel and be 
on board. Note that this would be in addition to the requirement to 
have a Federal commercial vessel permit for Gulf shrimp.
    An owner of a vessel who desires a commercial vessel permit 
endorsement for royal red shrimp would be required to obtain a permit 
application form from and submit it to the Regional

[[Page 17063]]

Administrator (RA), Southeast Region, NMFS. Information on the 
application form would consist of the standard information and 
documentation required for commercial vessel permits issued by the RA, 
as specified at 50 CFR 622.4(b)(3). There would be no earned income or 
landing requirements for these permit endorsements. Royal red shrimp 
permit endorsements would be required in the fishery 150 days after any 
final rule containing the requirement for permit endorsement is 
published. This time period is considered adequate for vessel owners 
currently in the fishery to obtain, complete, and submit applications 
and for the RA to process the applications and issue permits.
    As specified at 50 CFR 622.4(d), a fee, calculated in accordance 
with the procedures of the NOAA Finance Handbook, would be charged for 
each application for a permit endorsement or written request for 
replacement of a permit endorsement. The applicable fee would be 
specified on the application form.
    Information from permit endorsement applications would provide data 
on the universe of vessels in the fishery. Such data, in combination 
with the proposed requirement for the submission of catch and effort 
reports and the proposed requirement for vessels to carry observers, 
when requested, would comprise part of the program to monitor and 
assess bycatch, including protected resources, in the Gulf of Mexico 
shrimp fisheries.

Commercial Shrimp Vessel Permit Moratorium

    There is excess harvesting capacity in the shrimp fishery in the 
Gulf of Mexico, and fewer vessels could harvest the available shrimp 
resources at a more profitable level. The Gulf shrimp fishery has 
recently experienced economic losses leading to an exodus of vessels 
from the fishery. The number of vessels in the offshore shrimp fleet is 
expected to continue declining, but, at some point, the fishery will 
again become profitable for the remaining participants. There is a need 
to prevent new effort from then entering the fishery and negating or at 
least lessening profitability in the future. Thus, this proposed rule 
proposes to establish a 10-year moratorium on the issuance of Federal 
commercial shrimp vessel permits for the shrimp fishery in the Gulf 
EEZ.
    The moratorium would begin on the effective date of any final rule 
that would implement Amendment 13. Beginning 150 days after the 
effective date of any final rule that would implement Amendment 13, the 
only valid commercial vessel permits for Gulf shrimp would be those 
issued under this proposed moratorium. As of that date, a commercial 
vessel moratorium permit for Gulf shrimp would be required to fish for 
or possess Gulf shrimp from the EEZ. Permits issued under the 
moratorium would be fully transferable, with or without sale of the 
vessel, allowing permittees the flexibility to enter or exit the 
fishery as they choose.

Eligibility for a Moratorium Permit

    Under the proposed moratorium, eligibility for a commercial vessel 
moratorium permit for Gulf shrimp would be limited to a person who--
    (1) Owns a vessel that was issued a Federal commercial vessel 
permit for Gulf shrimp on or before December 6, 2003; or
    (2) On or before December 6, 2003, owned a vessel that was issued a 
Federal commercial vessel permit for Gulf shrimp and, prior to the date 
of publication of any final rule that implements Amendment 13, owns a 
vessel with a Federal commercial permit for Gulf shrimp that is 
equipped for offshore shrimp fishing and is at least 5 net tons (4.54 
metric tons).
    NMFS' permit records are the sole basis for determining eligibility 
based on permit history. An applicant who believes he/she meets the 
permit eligibility criteria based on ownership of a vessel under a 
different name, e.g., as may have occurred when ownership has changed 
from individual to corporate or vice versa, must document his/her 
continuity of ownership.
    December 6, 2003, is the date the Council previously established 
(68 FR 22667, April 29, 2003) as a possible control date if access to 
the fishery was limited at a future date. Eligibility criterion (1) 
above addresses a current owner of a vessel that was permitted in the 
Gulf shrimp fishery on or prior to the control date. Eligibility 
criterion (2) above addresses a person who on or prior to the control 
date owned a vessel issued a Federal commercial vessel permit for Gulf 
shrimp; who may have subsequently lost ownership or use of the vessel 
through sale, repossession, sinking or major damage, etc.; and who 
obtains an appropriately permitted vessel prior to publication of the 
final rule that would implement the proposed moratorium.
    NMFS estimates approximately 2,951 vessels have been issued Gulf 
shrimp permits to date, and 285 of those would not meet the December 6, 
2003, qualifying criterion; thus, the number of permitted vessels under 
the moratorium would be 2,666. However, only approximately 45 of these 
excluded vessels are anticipated to be significantly impacted by the 
proposal. At least 126 of the 285 vessels were not known to be active 
in the fishery since 2002. In addition, 87 of the active vessels were 
identified as operating entirely in state waters, and 27 of the 
remaining, active, non-qualifying vessels are small and potentially 
could continue fishing profitably in state waters.

Moratorium Permit Requirement and Application Procedures

    A commercial vessel moratorium permit for Gulf shrimp would be 
required beginning 150 days after the effective date of any final rule 
that implements Amendment 13, and on that date, all previously issued 
open access commercial vessel permits for Gulf shrimp would be invalid. 
After that date, a person could not fish for or possess shrimp from the 
Gulf of Mexico EEZ without first obtaining a commercial vessel 
moratorium permit for Gulf shrimp.
    A person who desires a commercial vessel moratorium permit for Gulf 
shrimp would be required to submit an application to the RA, Southeast 
Region, NMFS, postmarked or hand delivered no later than the date one 
year after the effective date of any final rule implementing Amendment 
13. After that date, no applications for additional commercial vessel 
moratorium permits for Gulf shrimp would be accepted. This 1-year 
period for receiving applications is longer than normal but is 
intended, in part, to provide additional time for potential applicants 
who may have been adversely affected by recent hurricanes in the Gulf 
of Mexico to apply. Application forms would be available from the RA. 
Failure to apply in a timely manner would preclude permit issuance even 
when the applicant otherwise meets the permit eligibility criteria.
    To facilitate the application process, NMFS will send preprinted 
applications to known qualifiers for which NMFS would have a valid 
address, i.e., current owners of vessels permitted on or prior to 
December 6, 2003. All other applicants must obtain an application from 
the RA. Ultimately, it is the applicant's responsibility to ensure that 
an application is obtained and submitted to NMFS prior to the 
application deadline. A person who believes he/she qualifies for a 
permit but does not receive an application from NMFS within 45 days 
after the date of publication of any final rule

[[Page 17064]]

implementing Amendment 13 should request an application from the RA.
    As specified at 50 CFR 622.4(d), a fee, calculated in accordance 
with the procedures of the NOAA Finance Handbook, would be charged for 
each application for a permit or written request for transfer or 
replacement of a permit. The applicable fee would be specified on the 
application form.

Recordkeeping and Reporting and Observer Requirements

    The proposed rule would change the existing reporting requirements 
for the Gulf of Mexico shrimp fishery. Current regulations at 50 CFR 
622.5(a)(1)(iii) require the owner or operator of a vessel that fishes 
for shrimp in the Gulf of Mexico EEZ or in adjoining state waters, or 
that lands shrimp in an adjoining state, must provide information for 
any fishing trip, as requested by the Science and Research Director 
(SRD), Southeast Fisheries Science Center, NMFS, including, but not 
limited to, vessel identification, gear, effort, amount of shrimp 
caught by species, shrimp condition (heads on/heads off), fishing areas 
and depths, and person to whom sold.
    The proposed rule would revise these regulations to require all 
owners or operators of permitted vessels, in contrast to those selected 
by the SRD, to report annually their landings and their vessel and gear 
characteristics. An owner or operator of a vessel with a Federal 
commercial vessel permit for Gulf shrimp would be required to submit an 
annual Gulf Shrimp Vessel and Gear Characterization Form at the time of 
application for and renewal of a Gulf shrimp permit. Such owner or 
operator must also report the permitted vessel's total annual shrimp 
landings and value, by species, on a form provided by the SRD.
    By requiring all vessels to report landings and vessel/gear 
information, NMFS and the Council would be better able to estimate 
effort and bycatch and stratify the universe of vessels' catches into 
different classes or categories should the need arise in the future to 
cap or reduce fishing effort. Compliance with the proposed reporting 
requirements would be a condition for renewing a Federal shrimp vessel 
permit, and submission of the Gulf Shrimp Vessel and Gear 
Characterization Form would also be a requirement for issuance of a 
Federal shrimp vessel permit. NMFS would provide the Gulf Shrimp Vessel 
and Gear Characterization Form with all permit applications or renewal 
applications.
    The proposed rule would also establish a standardized method to 
regularly monitor, report, and estimate the bycatch in the shrimp 
fishery of the Gulf of Mexico, in compliance with Sec.  303(a)(11) of 
the Magnuson-Stevens Act. The proposed rule would require owners and 
operators of permitted vessels, if selected by the SRD, to install 
electronic logbooks (ELBs) provided by NMFS, and to carry NMFS-approved 
observers on trips selected by the SRD.
    The ELB automatically records vessel position information over time 
from which conclusions can be drawn regarding vessel activity, e.g., 
the vessel is trawling, stopped, or transiting. The ELB program would 
be initiated by the SRD sending letters to selected owners or operators 
of permitted shrimp vessels advising them of their obligation to 
participate in the ELB program. In cooperation with the selected owner 
or operator, NMFS would arrange to meet at the selected vessel to allow 
NMFS staff or an authorized representative to install the ELB on the 
vessel and to collect basic vessel and gear information (e.g., size and 
number of shrimp trawls and type of bycatch reduction device and turtle 
excluder device) that would later be correlated with the ELB 
information. At intervals determined by the SRD, the ELB memory unit 
would be removed and provided to the SRD. The owner or operator could 
either mail the memory unit to the SRD or arrange for a NMFS or state 
port agent to collect the unit. The ELB program would supplement 
existing post-trip interview data and is intended to better estimate 
the amount and location of effort occurring during a trip.
    Bycatch in the fishery would then be estimated from a second 
sampling program placing observers aboard selected shrimp vessels. NMFS 
would use total effort estimates based on best available scientific 
information to extrapolate observer-collected data into overall 
estimates of total annual finfish and invertebrate bycatch.

Non-Regulatory Actions Contained in Amendment 13

    In addition to the regulatory actions described above, Amendment 13 
contains non-regulatory actions establishing or revising biological 
reference points (BRPs) and stock determination criteria (SDCs). The 
Magnuson-Stevens Act requires each FMP to define BRPs in the form of 
maximum sustainable yield (MSY) and optimum yield (OY), and to specify 
objective and measurable criteria for identifying when the fishery is 
overfished and/or undergoing overfishing. These SDCs include a minimum 
stock size threshold (MSST) and a maximum fishing mortality threshold 
(MFMT). Together, these four parameters (MSY, OY, MSST, and MFMT) are 
intended to provide fishery managers with the tools to measure the 
status and performance of each stock in the fishery management unit. 
The overfishing and overfished definitions for penaeid (brown, white, 
and pink) shrimp stocks, and the MSY and OY definitions for the royal 
red shrimp stock, were approved by NMFS in January 2000 as part of the 
Council's Generic Sustainable Fisheries Act Amendment. Appropriate 
definitions of overfishing and the overfished condition for royal red 
shrimp, as well as MSY and OY definitions for the penaeid shrimp stocks 
are needed. Approval of Amendment 13 would give effect to the following 
actions.

Biological Reference Points (BRPs) for Penaeid Shrimp

    MSY is considered to be the largest long-term average catch that 
can be taken continuously from a stock under prevailing ecological and 
environmental conditions. Current data gaps preclude the estimation of 
biomass at MSY (BMSY). However, in accordance with the 
Magnuson-Stevens Act's National Standard Guidelines, for annual stocks 
like penaeid shrimp, it is appropriate to establish an MSY control rule 
based on maintaining a constant level of escapement (parent stock) each 
year that will produce sufficient recruits to maintain harvest at its 
historical levels. This approach relates MSY in terms of catch to a 
quantifiable level of escapement in each stock, where a proxy for 
BMSY is established as the minimum parent stock size known 
to have produced MSY the following year. MFMT, as a fishing mortality 
that drives the stock below BMSY in a given year when 
exceeded, would indicate overfishing. MSST, or the overfished level, 
would represent a biomass level lower than 0.5*BMSY (i.e., 
one-half the parent stock size or other proxy). In other words, this 
would be an MSY control rule that relied on constant escapement of 
BMSY. The Council's approved definitions of the overfishing 
level for each of the penaeid species in terms of a parent stock level 
are as follows, and an overfished condition is one-half of these parent 
stock levels:
     Brown Shrimp [dash] 125 million individuals, age 7+ months 
during the November through February period.
     White Shrimp [dash] 330 million individuals, age 7+ months 
during the May through August period.

[[Page 17065]]

     Pink Shrimp [dash] 100 million individuals, age 5+ months 
during the July through June year.
    Based on these approved definitions, Amendment 13 proposes to 
revise the definitions of MSY and OY for penaeid shrimp, reflecting the 
yield that will maintain parent stock levels above MSST. MSY for the 
penaeid shrimp stocks would be defined by the lowest and highest 
landings taken annually from 1990-2000 not resulting in recruitment 
overfishing. OY would be defined as a yield equal to MSY. MSY for the 
brown shrimp stock would be 67 to 104 million lb (30.4 to 47.2 million 
kg) of tails. MSY for the white shrimp stock would be 35 to 71 million 
lb (15.9 to 32.2 million kg) of tails. MSY for the pink shrimp stock 
would be 6 to 19 million lb (2.7 to 8.6 million kg) of tails.

Stock Status Determination Criteria for Royal Red Shrimp

    The Council's approved definition of MSY and OY for royal red 
shrimp is a catch between 392,000 and 650,000 lb (177,808 and 294,835 
kg) of tails, annually. Based on these existing BRPs, the Council is 
proposing new definitions for overfishing (MFMT) and the overfished 
condition (MSST). MFMT for royal red shrimp would be defined as a 
fishing mortality rate (F) resulting in an annual catch exceeding MSY 
for 2 consecutive years. The royal red shrimp stock would be considered 
overfished when its spawning stock biomass is less than 50 percent of 
BMSY. Specific data, such as the parent stock data available 
for penaeid shrimp, are not available for the royal red shrimp fishery. 
Only catch and limited effort information is available. However, with 
the proposed limited entry program and reporting requirements of this 
amendment and rule, a time series of data regarding the royal red 
shrimp fishery would be compiled. Until those data are robust enough to 
be used in further modifying the BRPs and SDCs, the Council has 
proposed to revise its existing SDCs based on catch, in accordance with 
Technical Guidelines recommendations.

Changes Proposed by NMFS

    In 50 CFR 622.4(g)(1), NMFS is proposing to modify the procedures 
for transfers of all permits, licenses, and endorsements to require 
that the seller have the appropriate transfer documents notarized. This 
proposed revision is intended to strengthen verification of the 
authenticity of changes in ownership related to transfers of permits, 
licenses, and endorsements.

Classification

    At this time, NMFS has not determined that Amendment 13 is 
consistent with the Magnuson-Stevens Act and other applicable laws. 
NMFS, in making that determination, will take into account the data, 
views, and comments received during the comment periods on Amendment 13 
and this proposed rule.
    This proposed rule has been determined to be significant for 
purposes of Executive Order 12866.
    NMFS prepared an IRFA, as required by section 603 of the Regulatory 
Flexibility Act, for this proposed rule. The IRFA describes the 
economic impact this proposed rule, if adopted, would have on small 
entities. A description of the action, why it is being considered, and 
the legal basis for this action are contained at the beginning of this 
section in the preamble and in the SUMMARY section of the preamble. A 
summary of the IRFA follows.
    This proposed rule would: (1) Require participants in the royal red 
shrimp fishery to obtain a royal red shrimp endorsement to the existing 
commercial shrimp vessel permit; (2) define biological reference points 
and status determination criteria for the royal red and penaeid shrimp 
stocks; (3) establish a standardized bycatch reporting methodology by 
requiring a sample of permitted vessels to carry electronic logbooks 
(ELBs) and/or observers upon request; (4) require all permitted vessels 
to submit a vessel and gear characterization form on an annual basis; 
(5) establish a moratorium on the issuance of new Federal Gulf shrimp 
vessel permits based on the December 6, 2003, control date; and (6) 
require all permitted vessels to report and certify their landings.
    The purpose of the proposed rule is to: Establish status 
determination criteria for penaeid (brown, white, and pink) and royal 
red shrimp stocks; enhance the collection of information; improve 
estimates of effort and bycatch in the fishery; and promote economic 
stability by reducing permit speculation and increasing vessel owners' 
flexibility to enter and exit the Gulf shrimp fishery.
    No duplicative, overlapping, or conflicting Federal rules have been 
identified.
    It is estimated that 2,951 small entities will be affected by the 
proposed rule. This estimate represents the number of vessels that 
obtained a Gulf shrimp permit with an effective date on or before May 
2, 2005. Certain actions would apply to all permitted vessels, while 
others would only apply to a subset of those permitted vessels. The 
actions specific to the royal red shrimp fishery would affect 15 small 
entities at most, though all but one of these entities is included in 
the larger group of 2,951.
    The average annual gross revenue per permitted vessel is estimated 
to be $100,477, with a range of $0 to $473,564. This wide range 
illustrates a high degree of heterogeneity between permitted vessels 
with respect to their gross revenues. Further, gross revenue earned 
from the various fisheries these entities operate in differs 
considerably between vessels. On average, permitted vessels rely on the 
Gulf food shrimp fishery for nearly 79 percent of their gross revenues. 
Therefore, most permitted vessels have a relatively high degree of 
dependency on the Gulf food shrimp fishery. However, some permitted 
vessels are inactive or ``latent'' and appear to have no reliance on 
the Gulf food shrimp fishery. ``Small'' vessels (vessels less than 60 
ft (18.3 m) in length) generate lower gross revenues on average 
($30,568) relative to ``large'' vessels (vessels of 60 ft (18.3 m) or 
more in length) ($132,890). The range of gross revenues for large 
vessels is $0 and $473,564, while that of small vessels is $0 and 
$246,391. All royal red shrimp vessels fall into the ``large'' vessel 
category.
    The fleet of permitted vessels is much more homogeneous with 
respect its physical characteristics, though some differences do exist. 
On average, small vessels are smaller in regards to almost all of their 
physical attributes (e.g., they use smaller crews and fewer and smaller 
nets, have less engine horsepower and fuel capacity, etc.). Small 
vessels are also older on average. Large vessels also tend to be steel-
hulled. Conversely, fiberglass hulls are most prominent among small 
vessels, although steel and wood hulls are also common. Nearly two-
thirds of the large vessels have freezing capabilities, while few small 
vessels have such equipment. Small vessels rely on ice for 
refrigeration and storage, although more than one-third of large 
vessels also rely on ice. Some vessels are so small that they rely on 
live wells for storage.
    An important difference between large and small vessels is with 
respect to their dependency on the food shrimp fishery. The percentage 
of gross revenues from food shrimp landings is nearly 87 percent for 
large vessels, but only slightly more than 61 percent for small 
vessels. Thus, on average, large vessels are more dependent than their 
smaller counterparts on the food shrimp fishery. However, dependency on 
food shrimp is much more variable within the small vessel sector than 
the large

[[Page 17066]]

vessel sector. That is, many small vessels are quite dependent on food 
shrimp landings, while others show little, if any, dependency.
    When examining the distribution of gross revenues across vessels, 
of the 2,951 permitted vessels, 554 vessels did not have any verifiable 
Gulf food shrimp landings in 2002. Large and small vessels comprised 
approximately 75 percent and 25 percent of the active group. Small 
vessels represented a majority (53 percent) of the inactive group. If 
inactive or ``latent'' vessels are removed from consideration, for the 
permitted group as a whole, dependency on Gulf shrimp revenues 
increases to more than 97 percent. For large vessels, dependency on 
Gulf shrimp revenues increased to nearly 98 percent. Consistent with 
the statistics above, when the inactive vessels are removed from 
consideration, the change in dependency on Gulf shrimp revenues is most 
dramatic for the small vessels, with nearly 94 percent of their gross 
revenues coming from Gulf shrimp landings.
    According to the most recent projections, on average, both small 
and large vessels are experiencing significant economic losses, ranging 
from a -27 percent rate of return in the small vessel sector to a -36 
percent rate of return in the large vessel sector, or -33 percent on 
average for the fishery as a whole. Therefore, almost any but the most 
minor additional financial burden would be expected to generate a 
significant adverse impact on directly affected vessels and potentially 
hasten additional exit from the fishery.
    The Small Business Administration defines a small business that 
engages in commercial fishing 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. There are insufficient data 
regarding potential ownership affiliation between vessels to identify 
whether an individual entity controls sufficient numbers of vessels to 
achieve large entity status. Therefore, it is assumed that each vessel 
represents a separate business entity and, based on the revenue 
profiles provided above, all entities in the Gulf of Mexico shrimp 
fishery are assumed to be small entities. Because all permitted vessels 
would be directly affected by one or more of the proposed actions in 
this proposed rule, and because all vessels are considered to be small 
entities, the proposed rule will affect a substantial number of small 
entities. However, as explained below, the vast majority of these 
vessels will not be impacted under the most significant actions.
    The determination of significant economic impact can be ascertained 
by examining two issues: disproportionality and profitability. The 
disproportionality question is: will the regulations place a 
substantial number of small entities at a significant competitive 
disadvantage to large entities? Even though there is considerable 
diversity among the permitted vessels with respect to physical and 
operational characteristics, all entities are considered to be small 
entities, and therefore disproportionality of impacts between large and 
small entities is not an issue.
    The profitability question is: will the regulations significantly 
reduce profit for a substantial number of small entities? According to 
the most recent projections, on average, both small and large vessels 
are experiencing significant economic losses, ranging anywhere from a -
27 percent rate of return in the small vessel sector to a -36 percent 
rate of return in the large vessel sector, or -33 percent on average 
for the fishery as a whole. Therefore, almost any but the most minor 
additional financial burden would be expected to significantly reduce 
profit because profits are negative, on average, throughout the 
fishery.
    The royal red shrimp endorsement requirement would result in an 
additional cost of $20 to the vessels operating in this fishery. This 
is a minimal cost and would not significantly reduce profit for the 
vessels operating in this fishery.
    The actions, which define biological reference points and establish 
status determination criteria definitions for the royal red and penaeid 
shrimp stocks, require a sample of permitted vessels to carry 
electronic logbooks (ELBs) and/or observers upon request, require all 
permitted vessels to submit a vessel and gear characterization form on 
an annual basis, and require all permitted vessels to report and 
certify their landings, would not affect vessel profitability because 
they impose no direct financial costs. NMFS expects to cover all direct 
financial costs associated with the ELB and observer programs.
    However, it should be noted that the reporting requirements will 
likely impose a minimal opportunity cost by imposing time burdens. 
Specifically, the requirement for all permitted vessel owners to submit 
a vessel and gear characterization form will generate a time burden of 
approximately 30 minutes per permitted vessel. According to the Bureau 
of Labor Statistics (BLS), the average wage of first line supervisors/
managers in the fishing, forestry, and farming industries was $18.14 
per hour as of May 2003, which is the most currently available 
information. Therefore, the form would create an annual opportunity 
cost of approximately $9 per vessel. Additionally, all permitted 
vessels will be required to submit their landings information to NMFS. 
This information could be included on either the vessel and gear 
characterization form or the existing permit application form without 
any significant increase in the estimated time burdens associated with 
either form.
    The single action that could impose significant costs and, thereby, 
significantly reduce the profitability of the affected small entities 
is the permit moratorium. The proposed rule limits participation to 
those vessels meeting the December 6, 2003, control date. Of the 2,951 
permitted vessels, 285 vessels did not obtain their permits by the 
control date and, therefore, would not be issued a moratorium permit. 
However, according to the best available data, of those 285 vessels, 
126 were not active in the Gulf shrimp fishery (EEZ or state waters), 
and an additional 87 vessels were determined to operate exclusively in 
state waters. It is, therefore, concluded that these 213 vessels will 
not experience direct and adverse financial impacts as a result of 
losing their permits. The remaining 72 vessels, of which 45 are large 
and 27 are small, were active in the EEZ and therefore would experience 
direct and adverse financial impacts.
    Assuming these 72 vessels would only lose their shrimp landings and 
gross revenues from the EEZ (i.e., they continue their shrimping 
operations in state waters), they would face revenue losses ranging 
between 0.8 percent and 100.0 percent of their gross revenues, with an 
average loss of 49.3 percent per vessel. The large vessels will face a 
larger revenue loss on average (54.3 percent) than the small vessels 
(29.6 percent). However, if the small vessels shift their effort 
entirely into state waters and the large vessels exit the Gulf shrimp 
fishery instead, then only the 45 large vessels would experience a loss 
in landings and gross revenues, although that loss would be 100 percent 
of their gross revenues. On the other hand, because the permits would 
be fully transferable under the proposed rule, these 72 vessels may be 
able and willing to purchase a permit from a permitted vessel in order 
to continue current operations. Given an estimated permit purchase 
price of $5,000, this cost would represent 5.7 percent of these 
vessels' average gross revenues. Thus, in the current, adverse economic 
climate in the Gulf shrimp fishery,

[[Page 17067]]

regardless of which behavioral assumptions are made, profits would be 
significantly reduced for the 45 to 72 directly affected vessels that 
would not qualify for a moratorium permit under the proposed rule.
    Two alternatives, including the no action alternative, were 
considered to the proposed requirement for a royal red shrimp 
endorsement to the Gulf shrimp permit. One alternative would have 
created a separate royal red shrimp permit. Although the direct cost of 
a separate royal red shrimp permit would be the same as for a royal red 
shrimp endorsement to the Gulf shrimp permit, at least for participants 
that also possess a Gulf shrimp permit ($20), this alternative would 
have eliminated the relationship between participation in the royal red 
shrimp fishery and possession of a Gulf shrimp permit. As a result, 
vessels that did not qualify under the proposed permit moratorium 
action and vessels from other fisheries would be able to obtain royal 
red shrimp permits, though at a higher cost of $50 per permit, and, 
thereby, potentially introduce greater instability in the royal red 
shrimp fishery. Stable participation is particularly important in the 
royal red shrimp fishery because it is managed under a hard quota of 
392,000 lb (177,808 kg). The no action alternative would not have met 
the Council's objective of creating a readily available means to 
identify participants and operations in the royal red shrimp fishery.
    A total of nine alternatives, including three no action 
alternatives, were considered for the establishment of a standardized 
bycatch reporting methodology portion of the proposed rule. In general, 
the alternatives not included in the proposed rule would have either 
not met required mandates, imposed greater reporting and record keeping 
burdens, or not met the Council's objectives.
    Two alternatives to the proposed rule would have required paper 
logbooks. Paper logbooks can impose significant impacts on small 
entities. Assuming a time burden of 10 minutes per daily form, and an 
average of 182 days at sea per vessel per year, the average annual time 
burden per vessel would be approximately 30.33 hours. From an economic 
perspective, even though there is no direct cash expense from a paper 
logbook program, there is an opportunity cost associated with any time 
burden created by additional reporting requirements. As previously 
noted, opportunity cost is approximated using the average wage or 
salary of the affected persons, who in this case would be the vessel 
owners and captains as they would be responsible for submitting the 
logbook forms. Using the average wage of first line supervisors/
managers in the fishing, forestry, and farming industries, which was 
$18.14 as of May 2003 according to the BLS, the average annual 
opportunity cost per vessel of a paper logbook reporting requirement 
would be approximately $550.19 ($18.14/hour * 30.33 hours). If only a 
sample of vessels were selected to report, which was also considered 
but not proposed, then the opportunity cost would be proportionally 
less and dependent on the chosen sampling rate for the fishery as a 
whole, but still $550.19 annually per vessel.
    An alternative to the proposed ELB requirement would have required 
all permitted vessels to use ELBs rather than a statistically valid 
sample. Requiring all vessels to use ELBs would have increased the 
costs and burden of the program relative to the proposed rule. Given 
that the proposed rule does not require paper logbooks, selecting the 
no action alternative for ELBs would have resulted in the Council's 
objective of improving estimates of effort and bycatch in the Gulf 
shrimp fishery not being met.
    An alternative to the proposed observer program would have utilized 
the existing voluntary observer program. However, such a system does 
not provide for a statistically valid sample of the fishery and 
provides no authority to ensure adequate representation. Thus, this 
alternative would not meet the Council's objective of improving 
estimates of effort and bycatch in the Gulf shrimp fishery. Given that 
Section 303(a)(11) of the Magnuson-Stevens Act requires the 
establishment of a standardized bycatch reporting methodology, and 
bycatch data can only be practically collected by observers in this 
fishery, the no action alternative would cause the Council to not be in 
compliance and, thus, was not proposed.
    Two alternatives, including the no action alternative, were 
considered to the proposed vessel and gear characterization form 
requirement. The no action alternative and the alternative to require 
only a sample of permitted vessels to submit the vessel and gear 
characterization form would have reduced the minimal opportunity cost 
associated with the form. However, because ELBs do not collect gear 
information, and the ELB and observer programs require certain census 
level information to ensure that statistically valid samples are 
selected, both alternatives would not have met the Council's objective 
of improving estimates of effort and bycatch in the Gulf shrimp 
fishery.
    One alternative was considered to the requirement for all vessels 
to report and certify their landings to NMFS. This alternative would 
have continued NMFS' current practice of only having selected vessels 
as opposed to all vessels individually report their landings 
information. Maintaining this current practice would severely limit the 
Council's ability to determine whether permitted vessels are active in 
the fishery and the extent of that participation. In turn, this lack of 
information would significantly hamper the Council's ability to 
potentially develop alternatives for long-term effort management in the 
fishery in the future, which is inconsistent with the Council's 
objectives.
    Including the no action alternative, three alternatives were 
considered to the proposed permit moratorium. The no action alternative 
would not achieve the Council's objective of promoting economic 
stability by reducing permit speculation and increasing vessel owners' 
flexibility to enter and exit the Gulf shrimp fishery.
    Another alternative would have used a qualification date of May 18, 
2004, rather than a December 6, 2003, control date. Under this 
alternative, the number of non-qualifying vessels would be 161, which 
is 124 fewer vessels than under the proposed rule. Of those 161 
vessels, 68 vessels were not active in the Gulf shrimp fishery and 46 
operated in state waters only according to the best available data. 
Thus, it is concluded that these 114 vessels' profits would not have 
been affected under this alternative. Assuming that the remaining 47 
vessels would lose all their landings and gross revenues from the EEZ, 
losses per vessel would range between 0.9 percent and 100.0 percent of 
their gross revenues, with an average loss in gross revenues of 48.4 
percent. Contrariwise, if it is assumed that small vessels shift their 
operations into state waters and large vessels exit the fishery, then 
only the 26 large vessels would be directly impacted. For these 
vessels, they would lose 100 percent of their gross revenues. However, 
because the permits would be fully transferable under this alternative, 
the 47 vessels that have been active in the EEZ may be able and willing 
to purchase a permit from a qualifying vessel in order to continue 
current operations. Given an estimated permit purchase price of $5,000, 
this cost would represent 5.2 percent of these vessels' average gross 
revenues. Although this alternative would generate somewhat less 
adverse economic impacts relative to the

[[Page 17068]]

proposed action, it would also allow for a higher number of latent or 
speculative permit holders, which is contrary to the Council's 
objectives.
    Another alternative would have allowed all vessels that possessed a 
valid permit within one year of the publication date of the final rule 
implementing these actions to qualify for a moratorium permit. Because 
the date of the final rule's publication is presently unknown, it was 
assumed that all vessels that possessed a permit on at least one day 
during the current calendar year would qualify under this alternative. 
Thus, using this assumption, 347 vessels would be denied a moratorium 
permit under this alternative according to currently available 
information. Of those 347 vessels, 88 were not active in the Gulf 
shrimp fishery, and 72 only operated in state waters. Thus, it is 
concluded that these 160 vessels' profits would not have been affected 
under this alternative. The other 187 vessels were active in the EEZ 
and thus would have been directly impacted. Specifically, assuming 
these vessels would lose all their landings and gross revenues from the 
EEZ, the percentage losses in gross revenues would range from 0.2 
percent to 100.0 percent, with an average loss of 71.8 percent. If it 
is assumed that small vessels shift their operations into state waters 
and large vessels exit the fishery, then only the 168 large vessels 
would be directly impacted. These 168 large vessels would lose 100 
percent of their gross revenues. However, because the permits would be 
fully transferable under this alternative, the 187 vessels active in 
the EEZ may be able and willing to purchase a permit from a qualifying 
vessel in order to continue current operations. Given an estimated 
permit purchase price of $5,000, this cost would represent 4.3 percent 
of these vessels' average gross revenues. However, if all the owners of 
these 187 vessels were to renew their permits prior to the publication 
of the final rule, then none of these vessels would be impacted under 
this alternative. Although this alternative could potentially generate 
less adverse economic impacts than the proposed rule, based on 
currently available information, it is more likely that it would 
generate greater adverse economic impacts. Furthermore, because this 
alternative would continue to allow individuals to apply for and 
receive valid permits until the publication of the final rule, it could 
also lead to a considerably higher number of latent or speculative 
permit holders, which is contrary to the Council's objectives.
    This proposed rule contains collection-of-information requirements 
subject to the PRA--namely, requirements for: (1) Application for a 
royal red shrimp endorsement; (2) electronic logbook installation and 
data downloads; (3) notification for observer placement prior to a 
trip; (4) vessel and gear characterization form; and (5) submission of 
landings data. These requirements have been submitted to OMB for 
approval. The public reporting burdens for these collections of 
information are estimated to average 20 minutes, 31 minutes, 4 minutes, 
20 minutes, and 5 minutes per response for items (1), (2), (3), (4), 
and (5), respectively. These estimates of the public reporting burdens 
include the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and completing and 
reviewing the collections of information. Public comment is sought 
regarding: Whether these proposed collections of information are 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility; the 
accuracy of the burden estimates; ways to enhance the quality, utility, 
and clarity of the information to be collected; and ways to minimize 
the burden of the collections of information, including through the use 
of automated collection techniques or other forms of information 
technology. Send comments regarding the burden estimates or any other 
aspect of the collection-of-information requirements, including 
suggestions for reducing the burden, to NMFS and to OMB (see 
ADDRESSES).
    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall a person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the Paperwork Reduction Act (PRA), unless that collection of 
information displays a currently valid OMB control number.

List of Subjects in 50 CFR Part 622

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

    Dated: March 30, 2006.
James W. Balsiger,
Acting Deputy Assistant Administrator for Regulatory Programs, 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.  622.4, paragraphs (a)(2)(xi) and (g)(1) are revised, 
and paragraph (s) is added to read as follows:


Sec.  622.4  Permits and fees.

    (a) * * *
    (2) * * *
    (xi) Gulf shrimp fisheries--(A) Gulf shrimp permit. For a person 
aboard a vessel to fish for shrimp in the Gulf EEZ or possess shrimp in 
or from the Gulf EEZ, a commercial vessel permit for Gulf shrimp must 
have been issued to the vessel and must be on board. See paragraph (s) 
of this section regarding a moratorium on commercial vessel permits for 
Gulf shrimp and the associated provisions. See the following paragraph, 
(a)(2)(xi)(B) of this section, regarding an additional endorsement 
requirement related to royal red shrimp.
    (B) Gulf royal red shrimp endorsement. Effective 150 days after the 
effective date of the final rule implementing the moratorium under 
paragraph (s) of this section, for a person aboard a vessel to fish for 
royal red shrimp in the Gulf EEZ or possess royal red shrimp in or from 
the Gulf EEZ, a commercial vessel permit for Gulf shrimp with a Gulf 
royal red shrimp endorsement must be issued to the vessel and must be 
on board.
* * * * *
    (g) * * *
    (1) Vessel permits, licenses, and endorsements and dealer permits. 
A vessel permit, license, or endorsement or a dealer permit issued 
under this section is not transferable or assignable, except as 
provided in paragraph (m) of this section for a commercial vessel 
permit for Gulf reef fish, in paragraph (n) of this section for a fish 
trap endorsement, in paragraph (o) of this section for a king mackerel 
gillnet permit, in paragraph (p) of this section for a red snapper 
license, in paragraph (q) of this section for a commercial vessel 
permit for king mackerel, in paragraph (r) of this section for a 
charter vessel/headboat permit for Gulf coastal migratory pelagic fish 
or Gulf reef fish, in paragraph (s) of this section for a commercial 
vessel moratorium permit for Gulf shrimp, in Sec.  622.17(c) for a 
commercial vessel permit for golden crab, in Sec.  622.18(e) for a 
commercial vessel permit for South Atlantic snapper-grouper, or in 
Sec.  622.19(e) for a commercial vessel permit for South

[[Page 17069]]

Atlantic rock shrimp. A person who acquires a vessel or dealership who 
desires to conduct activities for which a permit, license, or 
endorsement is required must apply for a permit, license, or 
endorsement in accordance with the provisions of this section. If the 
acquired vessel or dealership is currently permitted, the application 
must be accompanied by the original permit and a copy of a signed bill 
of sale or equivalent acquisition papers. In those cases where a 
permit, license, or endorsement is transferable, the seller must sign 
the back of the permit, license, or endorsement and have the signed 
transfer document notarized.
* * * * *
    (s) Moratorium on commercial vessel permits for Gulf shrimp. The 
provisions of this paragraph (s) are applicable through the date that 
is 10 years after the effective date of the final rule that implements 
this moratorium.
    (1) Date moratorium permits are required. Beginning 150 days after 
the effective date of the final rule that implements this moratorium, 
the only valid commercial vessel permits for Gulf shrimp are those 
issued under the moratorium criteria in this paragraph (s).
    (2) Initial eligibility for a moratorium permit. Initial 
eligibility for a commercial vessel moratorium permit for Gulf shrimp 
is limited to a person who
    (i) Owns a vessel that was issued a Federal commercial vessel 
permit for Gulf shrimp on or before December 6, 2003; or
    (ii) On or before December 6, 2003, owned a vessel that was issued 
a Federal commercial vessel permit for Gulf shrimp and, prior to the 
date of publication of the final rule that implements this moratorium, 
owns a vessel with a Federal commercial permit for Gulf shrimp that is 
equipped for offshore shrimp fishing, is at least 5 net tons (4.54 
metric tons), and is documented by the Coast Guard.
    (3) Application deadline and procedures. An applicant who desires a 
commercial vessel moratorium permit for Gulf shrimp must submit an 
application to the RA postmarked or hand delivered not later than the 
date 1 year after the effective date of the final rule implementing 
this moratorium. After that date, no applications for additional 
commercial vessel moratorium permits for Gulf shrimp will be accepted. 
Application forms are available from the RA. Failure to apply in a 
timely manner will preclude permit issuance even when the applicant 
otherwise meets the permit eligibility criteria.
    (4) Determination of eligibility. NMFS' permit records are the sole 
basis for determining eligibility based on permit history. An applicant 
who believes he/she meets the permit eligibility criteria based on 
ownership of a vessel under a different name, as may have occurred when 
ownership has changed from individual to corporate or vice versa, must 
document his/her continuity of ownership.
    (5) Incomplete applications. If an application that is postmarked 
or hand-delivered in a timely manner is incomplete, the RA will notify 
the applicant of the deficiency. If the applicant fails to correct the 
deficiency within 30 days of the date of the RA's notification, the 
application will be considered abandoned.
    (6) Notification of ineligibility. If the applicant does not meet 
the applicable eligibility requirements of paragraph (s)(2) of this 
section, the RA will notify the applicant, in writing, of such 
determination and the reasons for it.
    (7) Permit transferability. Commercial vessel moratorium permits 
for Gulf shrimp are fully transferable, with or without the sale of the 
vessel. To request that the RA transfer a commercial vessel moratorium 
permit for Gulf shrimp, the owner of a vessel that is to receive the 
transferred permit must complete the transfer information on the 
reverse of the permit and return the permit and a completed application 
for transfer to the RA. Transfer documents must be notarized as 
specified in paragraph (g)(1) of this section.
    (8) Renewal. (i) Renewal of a commercial vessel moratorium permit 
for Gulf shrimp is contingent upon compliance with the recordkeeping 
and reporting requirements for Gulf shrimp specified in Sec.  
622.5(a)(1)(iii).
    (ii) A commercial vessel moratorium permit for Gulf shrimp that is 
not renewed will be terminated and will not be reissued during the 
moratorium. A permit is considered to be not renewed when an 
application for renewal, as required, is not received by the RA within 
1 year of the expiration date of the permit.
    3. In Sec.  622.5, paragraph (a)(1)(iii) is revised to read as 
follows:


Sec.  622.5  Recordkeeping and reporting.

* * * * *
    (a) * * *
    (1) * * *
    (iii) Gulf shrimp--(A) General reporting requirement. The owner or 
operator of a vessel that fishes for shrimp in the Gulf EEZ or in 
adjoining state waters, or that lands shrimp in an adjoining state, 
must provide information for any fishing trip, as requested by the SRD, 
including, but not limited to, vessel identification, gear, effort, 
amount of shrimp caught by species, shrimp condition (heads on/heads 
off), fishing areas and depths, and person to whom sold.
    (B) Electronic logbook reporting. The owner or operator of a vessel 
for which a Federal commercial vessel permit for Gulf shrimp has been 
issued and who is selected by the SRD must participate in the NMFS-
sponsored electronic logbook reporting program as directed by the SRD. 
In addition, such owner or operator must provide information regarding 
the size and number of shrimp trawls deployed and the type of BRD and 
turtle excluder device used, as directed by the SRD. Compliance with 
the reporting requirements of this paragraph (B) is required for permit 
renewal.
    (C) Vessel and Gear Characterization Form. All owners or operators 
of vessels applying for or renewing a commercial vessel moratorium 
permit for Gulf shrimp must complete an annual Gulf Shrimp Vessel and 
Gear Characterization Form. The form will be provided by NMFS at the 
time of permit application and renewal. Compliance with this reporting 
requirement is required for permit issuance and renewal.
    (D) Landings report. The owner or operator of a vessel for which a 
Federal commercial vessel permit for Gulf shrimp has been issued must 
annually report the permitted vessel's total annual landings of shrimp 
and value, by species, on a form provided by the SRD. Compliance with 
this reporting requirement is required for permit renewal.
* * * * *
    4. In Sec.  622.8, paragraph (a)(4) is added to read as follows:


Sec.  622.8  At-sea observer coverage.

    (a) * * *
    (4) Gulf shrimp. A vessel for which a Federal commercial vessel 
permit for Gulf shrimp has been issued must carry a NMFS-approved 
observer, if the vessel's trip is selected by the SRD for observer 
coverage. Vessel permit

[[Page 17070]]

renewal is contingent upon compliance with this paragraph (a)(4).
* * * * *
[FR Doc. 06-3263 Filed 3-31-06; 3:05 pm]
BILLING CODE 3510-22-S