[Federal Register Volume 71, Number 233 (Tuesday, December 5, 2006)]
[Proposed Rules]
[Pages 70493-70500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-20578]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 061124307-6307-01; I.D. 112106A]
RIN 0648-AT65


Fisheries of the Northeastern United States; Atlantic Mackerel, 
Squid, and Butterfish Fisheries; Specifications and Management Measures

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

ACTION: Proposed rule, request for comments.

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SUMMARY: NMFS proposes 2007 specifications and management measures for 
Atlantic mackerel, squid, and butterfish (MSB). This action also 
proposes to modify existing management measures to improve the 
monitoring and management of the squid fisheries. Specifically, 
trimester quota allocations for the Loligo squid fishery and an 
increased Loligo squid incidental catch limit for Illex squid 
moratorium vessels are proposed for 2007. This action also requests 
public comment concerning the possibility of an inseason adjustment to 
increase the mackerel harvest, if landings approach proposed harvest 
limits. Lastly, this action would clarify, update, and correct existing 
regulatory language that is misleading or incorrect. These proposed 
specifications and management measures promote the utilization and 
conservation of the MSB resource.

DATES: Public comments must be received no later than 5 p.m., eastern 
standard time, on January 4, 2007.

ADDRESSES: Copies of supporting documents used by the Mid-Atlantic 
Fishery Management Council (Council), including the Environmental 
Assessment (EA) and Regulatory Impact Review (RIR)/Initial Regulatory 
Flexibility Analysis (IRFA), are available from: Daniel Furlong, 
Executive Director, Mid-Atlantic Fishery Management Council, Room 2115, 
Federal Building, 300 South New Street, Dover, DE 19904-6790. The EA/
RIR/IRFA is accessible via the Internet at http://www.nero.nmfs.gov.
    Written comments on the proposed rule may be sent by any of the 
following methods:
     E-mail to the following address: [email protected]. 
Include in the subject line of the e-mail comment the following 
document identifier: ``Comments on 2007 MSB Specifications'';
     Electronically through the Federal e-Rulemaking portal: 
http://www.regulations.gov;
     Mail to Patricia A. Kurkul, Regional Administrator, NMFS, 
Northeast Regional Office, One Blackburn Drive, Gloucester, MA 01930. 
Mark the outside of the envelope ``Comments on 2007 MSB 
Specifications''; or
     Fax to Patricia A. Kurkul, (978) 281-9135.

FOR FURTHER INFORMATION CONTACT: Carrie Nordeen, Fishery Policy 
Analyst, 978- 281-9272, fax 978-281-9135.

SUPPLEMENTARY INFORMATION:

Background

    Regulations implementing the Fishery Management Plan for the 
Atlantic Mackerel, Squid, and Butterfish Fisheries (FMP) appear at 50 
CFR part 648, subpart B. Regulations governing foreign fishing appear 
at 50 CFR part 600, subpart F. These regulations, at Sec. Sec.  648.21 
and 600.516(c), require that NMFS, based on the maximum optimum yield 
(Max OY) of each fishery as established by the regulations, annually 
publish a proposed rule specifying the amounts of the initial optimum 
yield (IOY), allowable biological catch (ABC), domestic annual harvest 
(DAH), and domestic annual processing (DAP), as well as, where 
applicable, the amounts for total allowable level of foreign fishing 
(TALFF) and joint venture processing

[[Page 70494]]

(JVP) for the affected species managed under the FMP. In addition, 
these regulations allow Loligo squid specifications to be specified for 
up to 3 years, subject to annual review. The regulations found in Sec.  
648.21 also specify that IOY for squid is equal to the combination of 
research quota (RQ) and DAH, with no TALFF specified for squid. For 
butterfish, the regulations specify that a butterfish bycatch TALFF 
will be specified only if TALFF is specified for Atlantic mackerel.
    For 2007, the Council recommended the consideration of RQ of up to 
3 percent of the IOY for Loligo and Illex squid. The RQ would fund 
research and data collection for those species. A Request for Research 
Proposals was published to solicit proposals for 2007 based on research 
priorities previously identified by the Council (70 FR 76253, December 
23, 2005). The deadline for submission was February 21, 2006. On May 2, 
2006, NMFS convened a Review Panel to review the comments submitted by 
technical reviewers. Based on discussions between NMFS staff, technical 
review comments, and Review Panel comments, two project proposals 
requesting Loligo squid set-aside landings were recommended for 
approval and will be forwarded to the NOAA Grants Office for award, for 
a total RQ of up to 510 mt. The commercial Loligo squid quota in this 
proposed rule has been adjusted to allow for RQ. If the award is not 
made by the NOAA Grants Office for any reason, NMFS will give notice of 
an adjustment to the annual quota to return the unawarded set-aside 
amount to the fishery.
    At its June 20-22, 2006, meeting in Wilmington, DE, the Council 
recommended 2007 MSB specifications. The recommended specifications for 
Loligo squid, Illex squid, and butterfish are the same as those 
implemented in 2006. For mackerel, the Council recommended a reduced 
ABC, based on re-estimated biological reference points from the most 
recent stock assessment and increasing Canadian catch. The IOY, DAH, 
DAP, JVP, and TALFF are the same as those implemented in 2006. To 
improve monitoring and management of the squid fisheries, the Council 
also recommended modifying existing management measures. In brief, it 
recommended that the 2007 commercial Loligo squid quota be divided into 
trimesters, rather than into quarters as it has been since 2001, and 
that the Loligo squid incidental catch limit for Illex squid moratorium 
vessels fishing seaward of the Loligo squid exemption line 
(approximately the 50-fm (91-m) depth contour) during an August closure 
of the Loligo squid fishery would increase from 2,500 lb (1.13 mt) up 
to 10,000 lb (4.54 mt). The Council delayed recommending trimester 
quota allocations until its August 2006 meeting, when additional 
information on the seasonality of historic Loligo squid landings was 
presented by the Council staff. The Council also discussed the 
possibility of an inseason adjustment to the mackerel harvest, if 
landings approach the proposed IOY. Finally, the Council recommended 
that up to 3 percent of the ABC, IOY, DAH, and DAP for Loligo and Illex 
squid be set aside for scientific research in 2007.
    At its August 1-3, 2006, meeting in Philadelphia, PA, the Council 
recommended trimester quota allocations for the Loligo squid fishery 
and clarified the Loligo squid incidental catch limit for Illex squid 
vessels. The Council recommended the following Loligo squid trimester 
allocations: Trimester I (January-April), with 43 percent of the quota; 
Trimester II (May-August), with 17 percent of the quota; and Trimester 
III (September-December), with 40 percent of the quota. Because the 
increased Loligo squid limit for Illex squid vessels, during an August 
closure of the directed Loligo squid fishery, is intended to be an 
incidental catch limit, the Council also recommended that the increased 
limit would only be available to Illex squid vessels that had a minimum 
of 10,000 lb (4.54 mt) of Illex squid on board.

Issue of Concern; Incidental Loligo Squid Possession Limit for the 
Illex Squid Vessels

    The issue of incidental catch of Loligo squid in the Illex squid 
fishery was identified several years ago when large amounts of Loligo 
squid discards were reported in vessel trip reports by Illex squid 
vessels during closures of the directed Loligo squid fishery in the 
summer and fall of 2000. Analyses developed for Amendment 9 to the FMP 
indicated that the Illex squid fishery occurs primarily during June-
November in offshore waters and that both squid species can co-occur 
during September-November on the Illex squid fishery grounds when the 
Loligo squid begin to move offshore. Because of the seasonal co-
occurrence of the two squid species, members of the directed Illex 
squid fishery testified at Council meetings that the 2,500-lb (1.13-mt) 
incidental Loligo squid possession limit during closures of the Loligo 
squid fishery creates compliance problems for the Illex squid fishery 
because vessels catch more than 2,500 lb (1.13 mt) of Loligo squid when 
the species mix. In an effort to reduce regulatory discarding and allow 
more accurate quantification of the removals of Loligo squid taken in 
the directed Illex squid fishery, the Council recommends increasing the 
incidental Loligo squid possession limit for vessels engaged in the 
directed Illex squid fishery during Loligo squid fishery closures. 
Specifically, for 2007 only, during August closures of the Loligo squid 
fishery, Illex squid moratorium vessels fishing seaward of the small 
mesh exemption line (approximately the 50-fm (91-m) depth contour) 
would be permitted to possess and land up to 10,000 lb (4.54 mt) of 
Loligo squid, provided they possess a minimum of 10,000 lb (4.54 mt) of 
Illex squid on board. This measure is recommend for 1 year only, and 
the Council intends to re-assess it next year.
    The purpose of this proposed measure is to allow Loligo squid that 
would otherwise become regulatory discards to be landed. The Council 
recommended an increase in the incidental Loligo squid trip limit from 
2,500 lb (1.13 mt) to 10,000 lb (4.54 mt) because analyses prepared for 
Amendment 9 suggest a 10,000-lb (4.54-mt) limit would account for 92 
percent of observed Illex squid trips during which Loligo squid were 
discarded. While Loligo and Illex squid primarily co-occur during 
September-November, the Council specified the increased incidental 
Loligo squid trip limit for August because, under the trimester 
allocations, the directed Loligo squid fishery is more likely to be 
closed in August than during September-November. Additionally, the 
Council recommends allowing this increased limit only for vessels 
fishing seaward of the 50-fm (91-m) line that defines the current small 
mesh exemption area for the Illex squid fishery.
    Despite the Council's efforts to address regulatory discards of 
Loligo squid in the Illex squid fishery, NMFS is concerned about the 
enforceability of the measure. The small mesh exemption line, which 
approximates the 50-fm (91-m) depth contour, was implemented for the 
Illex squid fishery because Illex squid are not generally available to 
the fishery shoreward of this line. The Illex squid fishery is exempt 
from the 1-7/8 inch (48-mm) minimum mesh requirement for the Loligo 
squid fishery in the exemption area. However, Loligo squid are widely 
distributed shoreward of this line. The Council recommended no 
mechanisms to assure that NMFS could determine if vessels issued Illex 
squid permits fish for Loligo squid shoreward of the small mesh 
exemption line (e.g., Vessel Monitoring Systems or trip

[[Page 70495]]

declarations). In addition, analyses presented in the development of 
Amendment 9 suggest that increasing the incidental trip limit to 10,000 
lb (4.54 mt) could encourage the targeting of Loligo squid, because 
Loligo squid are more valuable than Illex squid.
    In a letter dated June 13, 2006, NMFS urged the Council to 
carefully consider implementation aspects associated with this measure, 
such as monitoring and enforcement. NMFS is including the measure in 
this proposed rule, but continues to have serious concerns about the 
proposal. NMFS will review public comment and make a final 
determination about the proposed measure in the final specifications.

2007 Proposed Specifications and Management Measures

  Table 1. Proposed Specifications, in Metric Tons (mt), for Atlantic Mackerel, Squid, and Butterfish for 2007
                                                  Fishing Year.
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                        Specifications                           Loligo     Illex      Mackerel     Butterfish
----------------------------------------------------------------------------------------------------------------
                  Max OY                                          26,000     24,000          N/A          12,175
                  ABC                                             17,000     24,000      186,000           4,545
                  IOY                                          16,490\1\     24,000   115,000\2\           1,681
                  DAH                                             16,490     24,000   115,000\3\           1,681
                  DAP                                             16,490     24,000      100,000           1,681
                  JVP                                                  0          0            0               0
                  TALFF                                                0          0            0               0
----------------------------------------------------------------------------------------------------------------
\1\ Excludes 510 mt for Research Quota (RQ)
\2\ IOY may be increased during the year, but the total ABC will not exceed 186,000 mt.
\3\ Includes 15,000 mt of Atlantic mackerel recreational allocation.

Atlantic Mackerel

    The status of the Atlantic mackerel stock was most recently 
assessed at the 42nd Stock Assessment Review Committee (SARC) in late 
2005. SARC 42 reconsidered the biological reference points (BRP) for 
Atlantic mackerel specified in Amendment 8 to the FMP and provided new 
estimates for these reference points, including the fishing mortality 
rate (F) that produces maximum sustainable yield (MSY), or 
Fmsy, the spawning stock biomass that produces MSY 
(SSBmsy), and the target F to be used in establishing the 
annual quota. These reference points were re-estimated to be Fmsy 
= 0.16 (previously 0.45), SSBmsy = 644,000 mt (previously 
890,000 mt), and Ftarget = 0.12 (previously 0.25). F for 
Atlantic mackerel in 2004 was estimated to be 0.05, and spawning stock 
biomass was estimated at 2.3 million mt.
    Overfishing for Atlantic mackerel is defined by the FMP to occur 
when the catch associated with FMSY is exceeded. SARC 42 
concluded that the Atlantic mackerel stock is not overfished and 
overfishing is not occurring. When SSB is greater than 
SSBmsy, the target F is 0.12. To avoid low levels of 
recruitment, the FMP contains a control rule whereby the threshold F 
decreases linearly from Fmsy at SSBmsy to zero at 
161,000 mt SSB (1/4 of SSBmsy), and the target F decreases 
linearly from Ftarget at SSBmsy to zero at 1/2 
SSBmsy. Annual quotas are to be specified that correspond to 
the target F resulting from this control rule.
    Based on the most recent stock assessment, the Atlantic mackerel 
SSB is currently above 644,000 mt, so the target F for 2007 is 0.12. 
According to the FMP, mackerel ABC must be calculated using the formula 
ABC = T - C, where C is the estimated catch of mackerel in Canadian 
waters for the upcoming fishing year and T is the yield associated with 
a fishing mortality rate that is equal to the target F. The yield 
associated with the target F=0.12 is 238,000 mt. Canadian catch of 
mackerel has been increasing in recent years; therefore, the estimate 
of Canadian catch for 2007 has been increased from the 2006 estimate of 
34,000 mt to 52,000 mt. Thus, 238,000 mt minus 52,000 mt results in a 
proposed 2007 mackerel ABC of 186,000 mt.
    The Council recommended, and NMFS is proposing, an IOY of 115,000 
mt. The Council believes that this level of harvest would provide the 
greatest overall benefit to the Nation with respect to food production 
and recreational opportunities, and would allow for an increase in 
domestic landings. In recent years, domestic mackerel landings have 
been increasing due to major investments in the domestic mackerel 
processing sector. Mackerel landings in 2003 totaled 34,298 mt, while 
preliminary landings for 2006 total 58,857 mt. The 115,000 mt IOY is 
consistent with mackerel regulations at Sec.  648.21(b)(2)(ii), which 
state that IOY is a modification of ABC, based on social and economic 
factors, and must be less than or equal to ABC.
    The Council expressed its concern, supported by industry testimony, 
that an allocation of TALFF would threaten the expansion of the 
domestic industry. The Magnuson-Stevens Fishery Conservation and 
Management Act (Magnuson-Stevens Act) provides that the specification 
of TALFF, if any, shall be that portion of the optimum yield (OY) of a 
fishery that will not be harvested by vessels of the United States. 
TALFF catches would allow foreign vessels to harvest U.S. fish and sell 
their product on the world market, in direct competition with the U.S. 
industry efforts to expand exports. The Council noted that this would 
prevent the U.S. industry from taking advantage of declines in the 
European production of Atlantic mackerel that have resulted in an 
increase in world demand for U.S. fish. The only economic benefit 
associated with a TALFF is the foreign fishing fees it generates. On 
the other hand, there are economic benefits associated with the 
development of the domestic mackerel fishery. Increased mackerel 
production generates jobs both for plant workers and other support 
industries. More jobs generate additional sources of income for people 
resident in coastal communities and generally enhance the social fabric 
of these communities.
    For these reasons, the Council concluded, and NMFS proposes, to 
specify IOY at a level that can be fully harvested by the domestic 
fleet, thereby precluding the specification of a TALFF, in order to 
assist the U.S. mackerel industry to expand. This will yield positive 
social and economic benefits to both U.S. harvesters and processors. 
Given the trends in landings, and the industry's testimony that the 
fishery is poised for significant growth, NMFS concurs that it is 
reasonable to assume that, in 2007, the commercial fishery will harvest 
100,000 mt of mackerel. Thus DAH would be 115,000 mt, which is the 
commercial harvest plus the 15,000 mt allocated for the recreational 
fishery. Because IOY = DAH, this

[[Page 70496]]

specification is consistent with the Council's recommendation that the 
level of IOY should not provide for a TALFF.
    NMFS also concurs with the Council's recommendation to maintain JVP 
at zero (the most recent allocation was 5,000 mt of JVP in 2004). In 
previous years, the Council recommended a JVP greater than zero because 
it believed U.S. processors lacked the capability to process the total 
amount of mackerel that U.S. harvesters could land. However, for the 
past 2 years, the Council has recommended zero JVP because the surplus 
between DAH and DAP has been declining as U.S. shoreside processing 
capacity for mackerel has expanded. The Council received testimony from 
processors and harvesters that the shoreside processing sector of this 
industry has continued to expand since 2002-2003. Subsequent industry 
testimony estimated current processing capacity at 2,500 mt per day. In 
addition, industry members anticipate that an at-sea processing vessel 
will enter the mackerel fishery in 2007. The Council also heard from 
the industry that the availability of mackerel to the fishery, rather 
than processing capacity, has curtailed catch in recent years. Based on 
this information, the Council concluded that processing capacity is no 
longer a limiting factor relative to domestic production of mackerel. 
Furthermore, the Council concluded that the U.S. mackerel processing 
sector has the potential to process the DAH, so JVP would be specified 
at zero.
Inseason Adjustment of the Mackerel IOY
    Regulations at Sec.  648.21(e) specify that specifications may be 
adjusted inseason during the fishing year by the Regional 
Administrator, in consultation with the Council, by publishing a notice 
in the Federal Register and providing a 30-day public comment period. 
At the June 2006 Council meeting, in response to recent growth in the 
domestic harvesting and processing sectors of the mackerel fishery, 
both the mackerel industry and the Council voiced interest in 
increasing the 2007 mackerel IOY if landings approach 115,000 mt during 
the most active part of the fishing year (January-April). However, the 
mackerel fishing season is short. To facilitate a timely inseason 
adjustment to the mackerel IOY, if necessary, this action is proposing 
and seeking comment on such an inseason adjustment. In 2007, NMFS's 
Northeast Fishery Statistic Office (FSO) will summarize mackerel 
landings from dealer reports on a weekly basis and post this 
information on the Northeast Regional Office website (http://www.nero.noaa.gov/). NMFS staff will closely monitor these landings and 
industry trends to determine if an inseason adjustment is necessary. If 
using landings projections and all other available information, the 
Regional Administrator determines that 70 percent of the Atlantic 
mackerel IOY will be landed during the 2007 fishing year, to ensure 
continued fishing opportunities during the 2007 fishing year, the 
Regional Administrator will make available additional quota for a total 
IOY of 186,000 mt of Atlantic mackerel for harvest during 2007. 
Additionally, if an inseason adjustment of the IOY is warranted, the 
Regional Administrator will notify the Council and the inseason 
adjustment will be published in the Federal Register.

Atlantic Squids

Loligo squid
    While the annual quota and other measures for Loligo squid can be 
specified for up to 3 years, the Council chose to recommend Loligo 
specifications and management measures for 1 year only. After a review 
of available information, the Council recommended no change to the 
Loligo squid Max OY and ABC from 2006; NMFS concurs with this 
recommendation. Therefore, the proposed 2007 Loligo squid Max OY is 
26,000 mt and the proposed ABC is 17,000 mt. The Council recommended 
that the Loligo squid RQ for 2007 be up to 3 percent (510 mt) of the 
ABC. Two scientific research project proposals requesting Loligo squid 
RQ were recommended for approval and will be forwarded to the NOAA 
Grants Office for award. The proposed Loligo squid IOY, DAH, and DAP 
were adjusted to reflect the RQ and equal 16,490 mt. The FMP does not 
authorize the specification of JVP and TALFF for the Loligo squid 
fishery, because of the domestic industry's capacity to harvest and 
process the OY for this fishery; therefore, JVP and TALFF are zero.
Distribution of the Loligo Squid DAH
    Prior to 2000, the DAH for Loligo was specified as an annual quota. 
In 2000, the quota was subdivided into three trimester allocations. 
Since 2001, the annual DAH for Loligo squid has been allocated into 
four quarter allocations, as follows: Quarter I (January-March) with 
33.23 percent of the quota, Quarter II (April-June) with 17.61 percent 
of the quota, Quarter III (July-September) with 17.30 percent of the 
quota, and Quarter IV (October-December) with 31.86 percent of the 
quota. In an effort to improve the monitoring and management of the 
Loligo squid fishery, the Council recommended, and NMFS proposes, that 
the 2007 DAH be allocated into trimesters. Managing the DAH by 
trimesters, rather than quarters, results in allocations that are the 
same or higher than the quarterly allocations. Higher allocations may 
increase the length of time the fishery is open and allow closure 
projections to be based on more information and, perhaps, to be more 
accurate. Additionally, managing by trimesters rather than quarters is 
administratively streamlined because only three, rather than four, 
closures of the directed fishery could occur during a fishing year. For 
these reasons, this action proposes that the 2007 Loligo squid DAH be 
allocated into trimesters.
    Previously, the allocation of Loligo squid DAH into quarters (2001-
2006) and trimesters (2000) was based on landings data for the period 
of 1994-1998. Trimester allocations for 2007 were based on the same 
data as the 2000 Loligo squid trimester allocation (1994-1998), but the 
landings data had been updated since 2000 to remove any landings of 
squid categorized as ``unclassified.'' The proposed 2007 trimester 
allocations would be as follows:

  Table 2. Proposed Trimester Allocation of Loligo Squid Quota in 2007
------------------------------------------------------------------------
            Trimester               Percent     Metric Tons\1\   RQ (mt)
------------------------------------------------------------------------
                  I (Jan-Apr)            43.0           7,090.7       NA
                  II (May-Aug)           17.0           2,803.3       NA
                  III (Sep-Dec)          40.0           6,596.0       NA
                  Total                   100            16,490      510
------------------------------------------------------------------------
\1\ Trimester allocations after 510 mt RQ deduction.


[[Page 70497]]

    For 2007, the Council recommended that the percentage at which the 
directed Loligo squid fishery would close and the handling of quota 
overages and underages would be the same as in 2000. Therefore, this 
action proposes the regulatory language that was in effect in 2000, 
such that the directed Loligo squid fishery would close when 90 percent 
of the DAH is harvested in Trimesters I and II, and when 95 percent of 
the DAH is harvested in Trimester III, as was done in 2000. 
Additionally, it proposes that any underages from Trimesters I and II 
would be applied to Trimester III, and any overages from Trimesters I 
and II would be subtracted from Trimester III. This language is 
consistent with the Council motion, but the measure is incorrectly 
described in the EA for this action, which states that underages from 
Trimesters I and II would be applied to the next trimester. The Council 
is encouraged to comment on this inconsistency during the comment 
period.
    During the Council discussion about trimester allocations, some 
members of the Loligo squid industry expressed concern about quota 
availability during summer months, especially July. Under the 2006 
quarterly quota allocation, Quarter III started on July 1. As a result, 
the directed fishery during the month of July was important to the 
Loligo squid industry, because a new allocation of Loligo squid became 
available on July 1. Under the proposed trimesters, the Trimester II 
allocation of 17 percent would be available to the directed fishery 
from May-August, or until the allocation is harvested. Some industry 
representatives believe that Trimester II's allocation will likely be 
harvested before July 1. If that were to occur, the directed fishery 
would close and there would be no directed Loligo squid fishery during 
the month of July. In an effort to ensure that some of the Trimester II 
quota is available to the directed fishery during the month of July, 
the Council recommended a measure to suspend the availability of a 
portion of the quota until July 1. Specifically, the Council proposed 
that if 45 percent of Trimester II's quota was projected to be landed 
prior to July 1, then the Regional Administrator would close the 
directed fishery until July 1, and the fishery would operate under 
incidental trip limits. On July 1, the remaining Trimester II quota 
would once again be available to the directed fishery until 90 percent 
of the quota is projected to be landed. If 45 percent of the Trimester 
II quota was not projected to be landed prior to July 1, then the 
directed fishery would close when 90 percent of the quota was projected 
to be landed.
    When the Council discussed this proposed measure, NMFS informed the 
Council that a closure of the directed Loligo squid fishery when 
Trimester II landings are at 45 percent (i.e., approximately 1,300 mt) 
could not be effectively administered because of the small size of the 
quota and the sizable landings that can be made per trip. NMFS 
representatives explained that it is not possible to monitor landings 
in near real-time and accurately project closure dates in this type of 
high-volume fishery. NMFS, therefore, is not proposing this measure, 
because the proposed quota for Trimester II is small, and the fishing 
activity is likely to be intense during Trimester II, and there is 
little likelihood that such small quotas could be effectively monitored 
in a time frame to prevent significant underages or overages. This 
proposed measure is also inconsistent with the intent of the trimester 
approach to quota monitoring.
Landing Frequency of Incidental Loligo Squid Possession Limit
    The Council clarified the landing requirements for vessels issued 
an open access permit which is subject to a 2,500-lb (1.13 mt) 
incidental catch Loligo squid possession limit specified at Sec.  
648.22(c). The Council voted to clarify permanently that this permit 
authorizes the landing of an incidental Loligo squid possession limit 
once per calendar day. In previous years, because vessels were landing 
multiple possession limits per day during closures of the directed 
fishery, the Council recommended, and NMFS implemented, regulatory 
language clarifying that only one landing per day was allowed during 
closures of the directed Loligo squid fishery (66 FR 13024, March 2, 
2001). At its June 2006 meeting, the Council discussed the fact that 
vessels issued incidental catch permits were making multiple landings 
per day when the directed Loligo squid fishery was open. The Council 
recommended, and NMFS proposes, to clarify that vessels subject to the 
incidental Loligo squid possession limits may only land once per 
calendar day, whether the directed Loligo squid fishery is open or 
closed.
Illex squid
    The Council recommended, and NMFS proposes, to maintain the Illex 
squid specifications in 2007 at the same levels as they were for the 
2006 fishing year. Specifically, this action proposes that the 
specification of Max OY, IOY, ABC, and DAH would be 24,000 mt. The 
overfishing definition for Illex squid states that overfishing for 
Illex squid occurs when the catch associated with a threshold fishing 
mortality rate of FMSY is exceeded. Max OY is specified as 
the catch associated with a fishing mortality rate of FMSY, 
while DAH is specified as the level of harvest that corresponds to a 
target fishing mortality rate of 75 percent FMSY. The 
biomass target is specified as BMSY. The minimum biomass 
threshold is specified as 1/2 BMSY. The FMP does not 
authorize the specification of JVP and TALFF for the Illex squid 
fishery because of the domestic fishing industry's capacity to harvest 
and to process the OY from this fishery.

Butterfish

    The Council recommended, and NMFS proposes, to maintain the 
butterfish specifications in 2007 at the same levels as they were for 
the 2006 fishing year. Therefore, the proposed specifications would set 
the IOY, DAH, and DAP at 1,681 mt to achieve the target fishing 
mortality rate (75 percent of FMSY) specified in the FMP based on the 
most recent stock assessment for the species (SARC 38) and would set 
ABC at 4,545 mt. Allowable butterfish landings equals ABC less 
estimated discards, which are roughly twice landings. Assuming that 
biomass in 2007 will be similar to biomass during 2000-2002 and that 
the discard-to-landing ratio remains constant, then landings associated 
with the target F would be 1,681 mt. Consistent with MSB regulations, 
the Council recommended, and NMFS is proposing, zero TALFF for 
butterfish in 2007 because zero TALFF is proposed for mackerel.
    NMFS notified the Council in February 2005 that the butterfish 
stock is overfished. The rebuilding plan for butterfish is being 
developed in Amendment 10 to the FMP.

Modifications to Existing Regulatory Language

    NMFS proposes in this action to permanently update, clarify, and 
correct existing regulatory language that is misleading or incorrect. 
As discussed previously, biological reference points for mackerel were 
re-estimated in the most recent stock assessment and the updated 
reference points were used to calculate the mackerel ABC proposed for 
2007. It is appropriate to use the most recent information when 
developing annual specifications. To clarify this issue, this action 
proposes that regulatory language describing the procedure for 
calculating mackerel ABC (at Sec.  648.21(b)(2)) would describe the 
reference points and formula, but would

[[Page 70498]]

not include any values. This makes it clearer that the values from the 
most recent stock assessment are to be used to calculate mackerel ABC.
    In Sec.  648.21, there are two references to the guidelines used to 
determine annual initial amounts of harvest. The references cite 
paragraph (a), but the guidelines are actually located at paragraph (b) 
of that section. This action proposes to correct those citations.
    As discussed previously, the Council explicitly requested action to 
clarify that the landing frequency for vessels subject to the 
incidental Loligo squid possession limit is once per calendar day. This 
applies to vessels during closures of the directed Loligo squid fishery 
that participate in the directed fishery and to vessels issued Loligo 
squid incidental catch permits at all times. The regulations at Sec.  
648.22(c) specify the incidental possession limits for Loligo squid, 
Illex squid, and butterfish. While the Council did not explicitly 
recommend clarifying the landing frequency for Illex squid or 
butterfish, this action proposes to make the same clarification for 
those species.
    The regulations defining how to obtain incidental catch permits for 
Loligo squid, Illex squid, and butterfish are located at Sec.  
648.4(a)(5). However, regulations at Sec.  648.21(c)(3) only reference 
Loligo squid and butterfish when describing incidental catch permits. 
Therefore, this action proposes to list Illex squid along with Loligo 
squid and butterfish at Sec.  648.21(c)(3).
    Beginning in 2007, the NEFSC Director, rather than the Regional 
Administrator, will provide final approval for research projects 
requesting RQ. Therefore, this action proposes that regulations at 
Sec.  648.21(g) be updated to reflect that change.
    Lastly, this action proposes to clarify the reporting requirements 
for at-sea processors. Regulations at Sec.  648.7(f)(3) describe 
reporting requirements for at-sea purchases and processors. To clarify 
that at-sea processors in the Exclusive Economic Zone (EEZ) are bound 
by the same reporting requirements as shore-based processors, this 
action proposes removing language suggesting that these reporting 
requirements only apply if the product is landed in a port in the 
United States.

Classification

    This action is authorized by 50 CFR part 648 and has been 
determined to be not significant for purposes of Executive Order 12866 
(E.O. 12866).
    The Council prepared an initial regulatory flexibility analysis 
(IRFA), as required by section 603 of the Regulatory Flexibility Act 
(RFA). The IRFA describes the economic impact this proposed rule, if 
adopted, would have on small entities. A copy of the IRFA can be 
obtained from the Council or NMFS (see ADDRESSES) or via the Internet 
at http://www.nero.noaa.gov. A summary of the analysis follows:

Statement of Objective and Need

    This action proposes 2007 specifications and management measures 
for Atlantic mackerel, squid, and butterfish, and modification of 
existing management measures to improve the monitoring and management 
of these fisheries. A complete description of the reasons why this 
action is being considered, and the objectives of and legal basis for 
this action, is contained in the preamble to this proposed rule and is 
not repeated here.

Description and Estimate of Number of Small Entities to Which the Rule 
Will Apply

    Based on permit data, the number of potential fishing vessels in 
the 2007 fisheries are as follows: 383 for Loligo squid/butterfish, 77 
for Illex squid, 2,528 for mackerel, and 2,016 vessels with incidental 
catch permits for squid/butterfish. There are no large entities 
participating in this fishery, as defined in section 601 of the RFA. 
Therefore, there are no disproportionate economic impacts on small 
entities. Many vessels participate in more than one of these fisheries; 
therefore, the numbers are not additive.

Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    This action does not contain any new collection-of-information, 
reporting, recordkeeping, or other compliance requirements. It does not 
duplicate, overlap, or conflict with any other Federal rules.

Minimizing Significant Economic Impacts on Small Entities

Proposed Actions
    The mackerel IOY proposed in this action (115,000 mt, with 15,000 
mt allocated to recreational catch) represents no constraint on vessels 
in this fishery. This level of landings has not been achieved by 
vessels in this fishery in recent years. Mackerel landings for 2001-
2003 averaged 24,294 mt. Landings in 2004 were 54,296 mt, landings in 
2005 were 43,244 mt, and preliminary landings for 2006 were 68,298 mt. 
Additionally, this action proposes an inseason adjustment, if landings 
approach the IOY early in the fishing year, to increase the IOY up to 
the ABC (186,000 mt). Therefore, no reductions in revenues for the 
mackerel fishery are expected as a result of this proposed action, in 
fact, an increase in revenues as a result of the proposed action is 
possible. Based on preliminary 2006 data, the mackerel fishery could 
increase its landings by 46,702 mt in 2007, if it takes the entire IOY. 
In 2005, the last year with complete financial data, the average value 
for mackerel was $261 per mt. Using this value, the mackerel fishery 
could see an increase in revenues of $12,189,222 as a result of the 
proposed 2007 IOY (115,000 mt) and an additional increase in revenues 
of $18,531,000 as a result of the proposed adjustment to increase the 
IOY up to the ABC (186,000 mt) .
    The Loligo squid IOY (17,000 mt) proposed in this action represents 
status quo as compared to 2006. Loligo squid landings for 2001-2003 
averaged 14,092 mt. Landings in 2004 were 13,322 and landings in 2005 
were 16,765 mt. In 2005, the last year with complete financial data, 
the average value for Loligo squid was $1,703 per mt. Implementation of 
this proposed action would not result in a reduction in revenue or a 
constraint on restraint on the fishery in 2007.
    The Illex squid IOY (24,000 mt) proposed in this action represents 
status quo as compared to 2006. Illex squid landings for 2001-2003 
averaged 4,350 mt. Landings in 2004 were 25,059, and landings in 2005 
were 11,719 mt. In 2005, the last year with complete financial data, 
the average value for Illex squid was $715 per mt. Implementation of 
this proposed action would not result in a reduction in revenue or a 
constraint on restraint on the fishery in 2007.
    The butterfish IOY (1,681 mt) proposed in this action represents no 
constraint to vessels relative to the landings in recent years. During 
the period 2001-2004, butterfish landings averaged 1,535 mt. Compared 
to the most recent 2 years for which complete information is available, 
2004 and 2005, when landings were 422 mt and 393 mt, respectively, the 
proposed action is not expected to reduce revenues in this fishery, but 
may increase those revenues. Based on 2005 data, the value of 
butterfish was $1,803 per mt.

Alternatives to the Proposed Rule

    The Council analysis evaluated three alternatives for mackerel, and 
all of them would have set IOY at 115,000 mt. This IOY does not 
represent a constraint on vessels in this fishery, so no impacts on 
revenues in this fishery is expected as a result of these alternatives. 
If landings approach the IOY during the early part of the fishing year, 
the

[[Page 70499]]

preferred alternative contains the option of increasing the IOY up to 
ABC (186,000 mt). Therefore, this action may result in an increase in 
revenue for this fishery. One of these alternatives (status quo) would 
have set the ABC at 335,000 mt, and the other could have set the ABC at 
204,000 mt. These alternatives were not adopted by the Council because 
that level of ABC is not consistent with the overfishing definition in 
the FMP, as updated by the most recent stock assessment. Furthermore, 
alternatives that would set a higher harvest were not adopted because 
they proposed harvest that was too high in light of social and economic 
concerns relating to TALFF. The specification of TALFF would have 
limited the opportunities for the domestic fishery to expand, and 
therefore would have resulted in negative social and economic impacts 
to both U.S. harvesters and processors (for a full discussion of the 
TALFF issue, see the earlier section on Atlantic mackerel).
    For Loligo squid, all alternatives set Max OY at 26,000 mt and ABC, 
IOY, DAH, and DAP at 17,000 mt. While the annual quota under all 
alternatives represents status quo, alternatives differ in their 
allocation of the annual quota. Two alternatives allocate quotas by 
trimester. Of these, a closure/re-opening provision, to ensure quota is 
available to the directed fishery in July, is specified in one 
alternative but not the other. The third alternative allocates quota by 
quarters (status quo). These differences in seasonal quota distribution 
may have distributive effects on seasonal participants in the fishery. 
Additionally, the proposed incidental Loligo squid possession limit for 
Illex squid moratorium vessels (up to 10,000 lb (4.54 mt)) during 
August could, under certain conditions, result in a reduction in the 
amount of Loligo squid quota available during Trimester III. All 
alternatives are expected to result in the same total landings for 
2007.
    For Illex squid, one alternative considered would have set Max OY, 
ABC, IOY, DAH, and DAP at 30,000 mt. This alternative would allow 
harvest far in excess of recent landings in this fishery. Therefore, 
there would be no constraints and, thus, no revenue reductions, 
associated with this alternative. However, the Council considered this 
alternative unacceptable because an ABC specification of 30,000 mt may 
not prevent overfishing in years of moderate to low abundance of Illex 
squid.
    For butterfish, one alternative considered would have set IOY at 
5,900 mt, while another would have set it at 9,131 mt. These amounts 
exceed the landings of this species in recent years. Therefore, neither 
alternative represents a constraint on vessels in this fishery or would 
reduce revenues in the fishery. However, neither of these alternatives 
were adopted because they would likely result in overfishing and the 
additional depletion of the spawning stock biomass of an overfished 
species.

List of Subjects in 50 CFR Part 648

    Fisheries, Fishing, Recordkeeping and reporting requirements.

    Dated: November 29, 2006.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
    For the reasons set out in the preamble, 50 CFR part 648 is 
proposed to be amended as follows:

PART 648--FISHERIES OF THE NORTHEASTERN UNITED STATES

    1. The authority citation for part 648 continues to read as 
follows:

    Authority: 16 U.S.C. 1801 et seq.
    2. In Sec.  648.7, paragraph (f)(3) is revised to read as follows:


Sec.  648.7  Recordkeeping and reporting requirements.

* * * * *
    (f) * * *
    (3) At-sea purchasers and processors. With the exception of the 
owner or operator of an Atlantic herring carrier vessel, the owner or 
operator of an at-sea purchaser or processor that purchases or 
processes any Atlantic herring, Atlantic mackerel, squid, butterfish, 
scup, or black sea bass at sea must submit information identical to 
that required by paragraph (a)(1) of this section and provide those 
reports to the Regional Administrator or designee by the same mechanism 
and on the same frequency basis.
* * * * *
    3. Section 648.21 is amended as follows:
    a. Paragraphs (b)(1) introductory text, (b)(2)(i), and (b)(2)(iii) 
introductory text are revised;
    b. Paragraphs (c) introductory text and (c)(3) are revised;
    c. Paragraph (f)(3) is removed and paragraphs (f)(1) and (f)(2) are 
revised; and
    d. Paragraphs (g)(2)(ii) and (g)(5) introductory text are revised 
to read as follows:


Sec.  648.21  Procedures for determining initial annual amounts.

* * * * *
    (b) * * *
    (1) Loligo and/or Illex Squid.
* * * * *
    (2) * * *
    (i) Mackerel ABC must be calculated using the formula ABC = T - C, 
where C is the estimated catch of mackerel in Canadian waters for the 
upcoming fishing year and T is the catch associated with a fishing 
mortality rate that is equal to Ftarget at BMSY 
or greater and decreases linearly to zero at 1/2 BMSY or 
below. Values for Ftarget and BMSY are as 
calculated in the most recent stock assessment.
* * * * *
    (iii) IOY is composed of RQ, DAH and TALFF. RQ will be based on 
requests for research quota as described in paragraph (g) of this 
section. DAH, DAP, and JVP will be set after deduction for RQ, if 
applicable, and must be projected by reviewing data from sources 
specified in paragraph (b) of this section and other relevant data, 
including past domestic landings, projected amounts of mackerel 
necessary for domestic processing and for joint ventures during the 
fishing year, projected recreational landings, and other data pertinent 
for such a projection. The JVP component of DAH is the portion of DAH 
that domestic processors either cannot or will not use. In addition, 
IOY is based on the criteria set forth in the Magnuson-Stevens Act, 
specifically section 201(e), and on the following economic factors:
* * * * *
    (c) Recommended measures. Based on the review of the data described 
in paragraph (b) of this section and requests for research quota as 
described in paragraph (g) of this section, the Monitoring Committee 
will recommend to the Squid, Mackerel, and Butterfish Committee the 
measures from the following list that it determines are necessary to 
ensure that the specifications are not exceeded:
* * * * *
    (3) The amount of Loligo, Illex, and butterfish that may be 
retained, possessed and landed by vessels issued the incidental catch 
permit specified in Sec.  648.4(a)(5)(ii).
* * * * *
    (f) * * *
    (1) A commercial quota will be allocated annually for Loligo squid 
into trimester periods, based on the following percentages:

------------------------------------------------------------------------
                          Trimester                             Percent
------------------------------------------------------------------------
I. January-April                                                    43.0
II. May-August                                                      17.0
III. September-October                                              40.0
------------------------------------------------------------------------


[[Page 70500]]

    (2) Any underages of commercial period quota for Trimester I and II 
will be applied to Trimester III of the same year and any overages of 
commercial quota for Trimesters I and II will be subtracted from 
Trimester III of the same year.
* * * * *
    (g) * * *
    (2) * * *
    (ii) The NEFSC Director and the NOAA Grants Office will consider 
each panel member's recommendation, provide final approval of the 
projects and the Regional Administrator may, when appropriate, exempt 
selected vessel(s) from regulations specified in each of the respective 
FMPs through written notification to the project proponent.
* * * * *
    (5) If a proposal is disapproved by the NEFSC Director or the NOAA 
Grants Office, or if the Regional Administrator determines that the 
allocated research quota cannot be utilized by a project, the Regional 
Administrator shall reallocate the unallocated or unused amount of 
research quota to the respective commercial and recreational fisheries 
by publication of a notice in the Federal Register in compliance with 
the Administrative Procedure Act, provided:
* * * * *
    4. In Sec.  648.22, paragraphs (a) and (c) are revised and 
paragraph (d) is added to read as follows:


Sec.  648.22  Closure of the fishery.

    (a) Closing Procedures. (1) NMFS shall close the directed mackerel 
fishery in the EEZ when the Regional Administrator projects that 80 
percent of the mackerel DAH is landed, if such a closure is necessary 
to prevent the DAH from being executed. The closure shall remain in 
effect for the remainder of the fishing year, with incidental catches 
allowed as specified in paragraph (c) of this section, until the entire 
DAH is attained. When the Regional Administrator projects that the DAH 
will be landed for mackerel, NMFS will close the mackerel fishery in 
the EEZ, and the incidental catches specified for mackerel in paragraph 
(c) of this section will be prohibited.
    (2) NMFS shall close the directed fishery in the EEZ for Loligo 
when the Regional Administrator projects that 90 percent of the quota 
is harvested in Trimesters I and II, and when 95 percent of DAH has 
been harvested in Trimester III. The closure of the directed fishery 
shall be in effect for the remainder of the fishing period, with 
incidental catches allowed as specified in paragraph (c) of this 
section.
    (3) NMFS shall close the directed Illex or butterfish fishery in 
the EEZ when the Regional Administrator projects that 95 percent of the 
Illex or butterfish DAH is landed. The closure of the directed fishery 
will be in effect for the remainder of the fishing year, with 
incidental catches allowed as specified in paragraph (c) of this 
section.
* * * * *
    (c) Incidental catches. During a closure of the directed mackerel 
fishery, the possession limit for mackerel is 10 percent, by weight, of 
the total amount of fish on board. For vessels that have been issued a 
Loligo or butterfish incidental catch permit (as specified at Sec.  
648.4(a)(5)(ii)) or during a closure of the directed fishery for Loligo 
or butterfish, the possession limit for Loligo and butterfish is 2,500 
lb (1.13 mt) each. For vessels that have been issued an Illex 
incidental catch permit (specified at Sec.  648.4(a)(5)(ii)) or during 
a closure of the directed fishery for Illex, the possession limit for 
Illex is 10,000 lb (4.54 mt). Vessels may not land more than these 
limits and may only land once during any single calendar day, which is 
defined as the 24 hr period beginning at 0001 hours and ending at 2400 
hours.
    (d) Incidental Loligo Limit for Illex Moratorium Vessels. During 
August closures of the directed Loligo fishery, Illex vessels with 
moratorium permits fishing seaward of the small mesh exemption line 
(coordinates found at Sec.  648.23 (a)(3)) may possess and land up to 
10,000 lb (4.54 mt) of Loligo squid, provided they possess a minimum of 
10,000 lb (4.54 mt) of Illex squid on board.
[FR Doc. E6-20578 Filed 12-4-06; 8:45 am]
BILLING CODE 3510-22-S