[Federal Register Volume 71, Number 240 (Thursday, December 14, 2006)]
[Proposed Rules]
[Pages 75220-75226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-9676]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 061121304-6304-01; I.D. 112006B]
RIN 0648-AT87


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Reef Fish Fishery of the Gulf of Mexico; Gulf Red Snapper Management 
Measures

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

ACTION: Proposed temporary rule; request for comments.

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SUMMARY: This proposed rule would implement interim measures to reduce 
overfishing of Gulf red snapper. This proposed rule would reduce the 
commercial and recreational quotas for red snapper, reduce the 
commercial minimum size limit for red snapper, reduce the recreational 
bag limit for Gulf red snapper, prohibit the retention of red snapper 
under the bag limit for captain and crew of a vessel operating as a 
charter vessel or headboat, and establish a target level of reduction 
of shrimp trawl bycatch mortality of red

[[Page 75221]]

snapper. The public comment period on the proposed rule will end on 
January 26, 2007, to provide the Gulf of Mexico Fishery Management 
Council and the public the opportunity to discuss and comment on the 
rule at the January Council meeting. The intended effect is to reduce 
overfishing of red snapper in the Gulf of Mexico.

DATES: Written comments must be received on or before January 26, 2007.

ADDRESSES: You may submit comments on the proposed rule by any of the 
following methods:
     E-mail: [email protected]. Include in the 
subject line the following document identifier: 0648-AT87.
     Federal e-Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Peter Hood, Southeast Regional Office, NMFS, 263 
13th Avenue South, St. Petersburg, FL 33701.
     Fax: 727-824-5308; Attention: Peter Hood.
    Copies of documents supporting this proposed rule, which includes a 
draft environmental impact statement (DEIS), and an initial regulatory 
flexibility analysis (IRFA), may be obtained from Peter Hood, Southeast 
Regional Office, NMFS, 263 13th Avenue South, St. Petersburg, FL 33701.

FOR FURTHER INFORMATION CONTACT: Peter Hood, telephone: 727-551-5784, 
fax: 727-824-5308, e-mail: [email protected].

SUPPLEMENTARY INFORMATION: The red snapper fishery of the Gulf of 
Mexico is managed under the Fishery Management Plan (FMP) for the Reef 
Fish Fishery of the Gulf of Mexico and the shrimp fishery is managed 
under the FMP for the Shrimp Fishery of the Gulf of Mexico. The FMPs 
were prepared by the Gulf of Mexico Fishery Management Council 
(Council) and are implemented under the authority of the Magnuson-
Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act) 
by regulations at 50 CFR part 622.

Background

    The Gulf of Mexico red snapper stock is overfished and undergoing 
overfishing. Multiple fisheries influence the status of this stock, 
including the commercial and recreational red snapper fisheries, and 
the shrimp trawl fishery which takes red snapper incidentally when 
harvesting shrimp. The competing interests and goals of these multiple 
fisheries challenge fishery managers to balance multiple tradeoffs in 
rebuilding the red snapper stock.
    The first rebuilding plan established in 1990 has been revised 
several times, including extension of the target date for rebuilding 
the stock, in response to new data and assessments which have provided 
a better understanding of stock biomass and influencing factors, 
including shrimp trawl bycatch mortality. The current rebuilding plan, 
implemented in 2005, is designed to end overfishing in 2009/2010 and 
rebuild the stock by 2032 to the biomass level needed to allow harvest 
at maximum sustainable yield on a continuing basis. The most recent 
stock assessment (2005) indicates red snapper catch and discard 
mortality in the directed red snapper fishery and bycatch mortality 
rates in the shrimp fishery are jeopardizing the success of the current 
rebuilding plan. In the western Gulf, the shrimp trawl fishery 
represents the greatest source of red snapper fishing mortality, 
followed by the commercial red snapper directed fishery, whereas the 
directed red snapper recreational fishery represents the greatest 
source of fishing mortality in the eastern Gulf. The eastern Gulf and 
western Gulf are separated by the Mississippi River delta.
    At the August 2006 Council meeting, the Council voted to delay 
consideration of regulatory actions needed to address red snapper 
overfishing until more recent data and information become available for 
the directed red snapper and shrimp trawl fisheries. However, 
postponing development of a plan amendment would further delay progress 
in stock recovery because measures to address overfishing would not 
occur during the 2007 fishing season.
    To address overfishing of the red snapper stock for 2007, NMFS is 
proposing this rule that would reduce fishing mortality in 2007 and 
allow progress towards rebuilding this stock until more permanent 
measures could be established to end overfishing. This proposed rule 
would also address overfishing by establishing a red snapper bycatch 
reduction goal for the shrimp fishery.

Provisions of This Proposed Rule

    This proposed rule would reduce fishing mortality on red snapper in 
2007 by reducing harvest and bycatch levels. Specifically, this 
proposed rule would: (1) reduce the red snapper total allowable catch 
(TAC) from 9.12 million lb (4.14 million kg) to 6.5 million lb (2.9 
million kg), whole weight, resulting in a commercial quota of 3.315 
million lb (1.504 million kg) and a recreational quota of 3.185 million 
lb (1.445 million kg); (2) reduce the daily red snapper recreational 
bag limit from four to two fish per person; establish a 0-fish red 
snapper bag limit for the captain and crew of a vessel operating as a 
charter vessel or headboat; (3) reduce the commercial minimum size 
limit from 15 inches (38 cm) to 13 inches (33 cm), total length; and 
(4) establish a target reduction goal for shrimp trawl bycatch 
mortality on red snapper that is 50 percent less than shrimp trawl 
bycatch mortality during the 2001-2003 benchmark years used in the 2005 
stock assessment.

Measures to Reduce Directed Fishing Mortality

    In developing this proposed rule, NMFS evaluated measures for TAC 
and the recreational fishery based on a qualitative assumption that 
some level of reduction in landings has occurred due to the direct 
effects of hurricanes and increased fuel costs during 2004 and 2005. 
Sufficient data are not available at this time to quantify fully the 
precise level of reduction, although preliminary recreational data 
suggests a decrease in landings has occurred in 2006.
    The Magnuson-Stevens Act requires that NMFS manage the red snapper 
fishery to ensure harvest is constrained to the available quotas. For 
the commercial fishery, the 3.315 million-lb (1.504 million-kg) quota 
will be managed through an individual fishing quota (IFQ) program 
beginning in 2007. For the recreational fishery, NMFS previously has 
employed bag limits, size limits, and seasonal closures in an effort to 
constrain harvest to the available quota while minimizing, to the 
extent practicable, the short-term adverse economic and social impacts.
Reduction of TAC
    This proposed rule would reduce the red snapper TAC for 2007 to 6.5 
million lb (2.9 million kg), which is 0.5 million lb (0.23 million kg) 
less than the maximum allowable biological catch (ABC). Based on the 
2005 stock assessment, TACs greater than 5 million lb (2.3 million kg) 
would not be expected to end overfishing immediately. TACs set at 5 
million lb (2.3 million kg) or less during 2007 would end overfishing 
immediately, but only if all sources of fishing mortality (directed 
harvest, shrimp trawl bycatch, and closed season discards) could be 
reduced to the fishing mortality rate associated with harvesting the 
stock at the maximum sustainable yield. TACs greater than 5 million lb 
(2.3 million kg) but less than 7 million lb (3.2 million kg) would 
reduce fishing mortality and continue to allow rebuilding progress in

[[Page 75222]]

2007 consistent with the current rebuilding plan which ends overfishing 
in 2009. The Council would need to recommend more permanent TACs within 
or below this range after 2007 to be consistent with the current 
rebuilding plan over the long-term. The higher the TAC is set in 2007, 
the lower the TAC will need to be set in the future to end overfishing 
by 2009 to maintain adequate progress under the current rebuilding 
plan.
Bag Limit Reductions
    Assuming some level of reduction in recreational landings has 
occurred due to hurricanes and increased fuel prices, based on 
preliminary data, the combined effect of reducing the daily 
recreational bag limit from 4 to 2 fish per person and reducing the 
captain and crew bag limit for vessels operating as charter vessels or 
headboats to zero should control harvest sufficiently to ensure the 
recreational fishery remains within its 3.185 million-lb (1.445 
million-kg) recreational quota while maintaining the current 
recreational fishing season. Reducing the bag limit is estimated to 
achieve at least a 17-percent reduction in harvest, and, therefore, 
would benefit red snapper stock recovery. Reducing the captain and crew 
bag limit to zero is estimated to reduce red snapper landings by 
approximately 2 percent. The reduction from these two measures, 
combined with the reduction in landings attributed to the effects of 
hurricanes and increased fuel prices, would allow the recreational 
fishery to maintain its current 194-day recreational fishing season 
(April 21 October 31) for 2007.

Measures to Reduce Bycatch Mortality

    For the red snapper stock to recover in a manner consistent with 
the current rebuilding plan, bycatch mortality must be minimized. This 
proposed rule addresses two sources of bycatch mortality -discard 
mortality in the directed commercial fishery and bycatch mortality in 
the shrimp fishery.
Reduction in the Commercial Minimum Size Limit
    To reduce the number of red snapper discarded dead in the directed 
commercial red snapper fishery, this proposed rule would reduce the 
commercial minimum size limit from 15 to 13 inches (38 to 33 cm), total 
length. Red snapper discard mortality rates in the directed commercial 
fishery are very high--estimated to range between 71 and 82 percent. By 
reducing the commercial minimum size limit, fish between 13 and 15 
inches (33 and 38 cm) would be retained and counted toward the quota 
rather than discarded, mostly dead, as bycatch. It is estimated that 
reducing the commercial minimum size limit by 2 inches (5 cm) would 
reduce the commercial red snapper fishery's dead discards by 40 to 60 
percent.
    NMFS carefully considered reducing the recreational minimum size 
limit but is not proposing to do so in this rulemaking because there is 
currently no scientific information to indicate a reduction in the 
recreational minimum size limit would reduce overfishing. This rule is 
being promulgated consistent with the provision of section 305(c) of 
the Magnuson-Stevens Act relating to interim measures needed to reduce 
overfishing. Measures that do not reduce overfishing would not be 
consistent with the regulatory authority provided in that provision of 
section 305(c).
Establishment of a Target Reduction for Shrimp Trawl Bycatch Mortality
    To facilitate reduction of red snapper bycatch mortality in the 
shrimp fishery, the proposed rule would establish a target reduction in 
the shrimp trawl red snapper bycatch mortality rate that is 50 percent 
less than the bycatch mortality rate during the benchmark years, 2001-
2003, used in the 2005 red snapper stock assessment. This target 
reflects the level of shrimp trawl effort documented in 2005 in areas 
where red snapper are abundant in the western Gulf of Mexico, compared 
to the level of effort during the benchmark years. The target goal does 
not meet the current rebuilding plan target mortality reduction level 
necessary to rebuild the red snapper stock. However, preliminary 
information for 2006 suggests effort in the shrimp fishery has 
continued to decline in offshore waters of the western Gulf of Mexico. 
Therefore, similar to the assumption applied to the directed red 
snapper fishery, NMFS is making a qualitative assumption effort for 
2006 and 2007 will likely be less than the level of effort documented 
during 2005 for areas where red snapper are commonly taken. Additional 
bycatch mortality reduction is expected from the introduction of new 
bycatch reduction devices (BRDs) for the fishery under a pending 
revision to the certification criterion for BRDs. In combination, NMFS 
estimates red snapper bycatch mortality attributable to the shrimp 
fishery over the next few years may closely approximate the needed 
reductions from the benchmark years of 2001-2003, while allowing the 
industry some flexibility in achieving optimum yield, as it is 
currently defined for the fishery.
    The Council may recommend a different course of action for a long-
term management strategy to control shrimp trawl bycatch mortality of 
red snapper; however, the proposed reduction target would provide an 
interim means to address shrimp trawl bycatch in 2007. NMFS intends to 
provide 2006 shrimp trawl effort information to the Council as soon as 
it is available. If shrimp effort for 2006 is above the target, the 
Council may recommend further action in 2007 to maintain the proposed 
reductions in shrimp effort in areas of the western Gulf of Mexico 
where red snapper are most abundant.
Future Action
    NMFS believes that this proposed rule is necessary to reduce 
overfishing of red snapper in the Gulf of Mexico. NMFS will consider 
all public comments received on this proposed rule in determining 
whether to proceed with a final rule and, if so, whether any revisions 
would be appropriate in the final rule. If NMFS issues a final rule, it 
would be effective for not more than 180 days, as authorized by section 
305(c) of the Magnuson-Stevens Act. The final rule could be extended 
for an additional 180 days, provided that the public has had an 
opportunity to comment on the rule.
    NMFS acknowledges the need to continue monitoring all sources of 
red snapper mortality to determine the appropriate level of future 
actions necessary to ensure progress consistent with the stock 
rebuilding plan over the long term.

Classification

    At this time, NMFS has not determined whether the interim measures 
which this proposed rule would implement, are consistent with the 
national standards of 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 period on this 
proposed rule.
    This proposed rule has been determined to be significant for 
purposes of Executive Order 12866.
    NMFS prepared a draft environmental impact statement (DEIS) for 
this action; a notice of availability was published on October 13, 2006 
(71 FR 60509).
    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 objectives of, and legal basis for this action are contained

[[Page 75223]]

at the beginning of this section in the preamble and in the SUMMARY 
section of the preamble. A copy of the full analysis is available from 
NMFS (see ADDRESSES). A summary of the IRFA follows.
    This proposed rule would reduce TAC in the red snapper fishery, 
lower the recreational red snapper bag limit to 2 fish, lower the red 
snapper bag limit for captain and crew of a vessel operating as a 
charter vessel or headboat to 0 fish, reduce the red snapper minimum 
size limit in the commercial fishery to 13 inches (33 cm), and 
establish a reduction goal for red snapper bycatch mortality in the 
commercial shrimp fishery. The purpose for this action is to address 
overfishing of the red snapper stock on a temporary basis while the 
Council develops a comprehensive plan to reduce directed and incidental 
red snapper fishing mortality rates in the red snapper and shrimp 
fisheries. The Magnuson-Stevens Act provides the statutory basis for 
the proposed rule.
    No duplicative, overlapping, or conflicting Federal rules have been 
identified.
    This proposed action would be expected to impact red snapper 
commercial fishers and for-hire operators, and reef fish dealers and 
processors participating in the red snapper trade. The proposed action 
and certain proposed alternatives would also apply to the commercial 
shrimp fishery. However, these shrimp-related alternatives would either 
maintain the status quo, or otherwise accommodate current conditions, 
such that no direct impacts are expected to accrue at this time. 
Nevertheless, a description of the entities in the shrimp fishery is 
included in the following discussion.
    The Small Business Administration (SBA) has established size 
criteria for all major industry sectors in the U.S. including fish 
harvesters, for-hire operations, fish processors, and fish dealers. A 
business involved in fish harvesting is classified as a small business 
if it is independently owned and operated, is not dominant in its field 
of operation (including its affiliates), and has combined annual 
receipts not in excess of $4.0 million (NAICS code 114111, finfish 
fishing) for all affiliated operations worldwide. For for-hire 
operations, the other qualifiers apply and the annual receipts 
threshold is $6.5 million (NAICS code 713990, recreational industries). 
For seafood processor and dealers, the SBA uses an employee threshold 
rather than a receipts threshold, or 500 or fewer persons on a full-
time, part-time, temporary, or other basis, at all affiliated 
operations for a seafood processor and 100 or fewer persons for a 
seafood dealer.
    Currently, 136 entities hold Class 1 licenses that allow a 
commercial vessel trip limit of up to 2,000 lb (907 kg) of red snapper 
and 628 entities hold Class 2 licenses that allow a trip limit of up to 
200 lb (91 kg) of red snapper. Between 2002 and 2004, the top 50 red 
snapper vessels harvested a total of 2.77 million lbs (1.26 million kg) 
of red snapper, on average, or 64 percent of the industry total. 
Vessels ranked 51 to 131 harvested 1.29 million lbs (0.58 million kg), 
on average, or 30 percent of the industry total for the same period. In 
total, the top 131 vessels accounted for approximately 94 percent of 
the total red snapper commercial landings. Red snapper are mainly 
harvested by vertical line fishermen, who accounted for approximately 
90 percent of commercial red snapper Gulf harvests, on average, between 
2002 and 2004.
    Reported average annual gross receipts (2004 dollars) of commercial 
reef fish vessels in the GOM range from $24,095 for low-volume vertical 
line vessels to $116,989 for high-volume longline vessels. Annual net 
incomes range from $4,479 for low-volume vertical line vessels to 
$28,466 for high-volume vertical line vessels. Some fleet activity is 
known to exist in the commercial red snapper fishery, but the extent of 
such activity is unknown. The maximum number of reef fish permits 
reported owned by the same person/entity is six permits. Additional 
permits (and the revenues associated with those permits) may be linked 
to an entity through affiliation rules, but such affiliation links 
cannot be made using existing data. A definitive determination of 
whether any commercial entities would be considered large entities 
cannot be made using average income information. However, based on the 
size and value of the commercial red snapper fishery (an average of 
4.336 million lb (1.967 million kg) and $11.652 million ex-vessel 
revenue per year, 2002-2004), the number of participants in the fishery 
(136 Class 1 licenses and 628 Class 2 licenses), the summary statistics 
provided above, and maximum number of permits owned by a single entity, 
it is determined, for the purpose of this assessment, that all 
commercial reef fish harvest entities that would be affected by this 
action are small entities.
    Currently, 1,625 vessels are estimated to be permitted to operate 
in the Gulf reef fish fishery in the for-hire sector. Fleet behavior 
also exists in this sector, with at least one entity reported to hold 
12 permits. The bulk of the fishery, however, consists of single-permit 
operations.
    The for-hire fleet is comprised of charterboats, which charge a fee 
on a vessel basis, and headboats, which charge a fee on an individual 
angler (head) basis. The average charterboat is estimated to generate 
$76,960 in annual revenues and $36,758 in annual profits, whereas the 
appropriate values for the average headboat are $404,172 and $338,209, 
respectively. The calculation of costs does not include fixed and other 
non-operating expenses, which tend to be higher for headboats.
    Based on the average revenue figures, it is determined, for the 
purpose of this assessment, that all for-hire operations that would be 
affected by this action are small entities.
    The measures in this action would also be expected to affect fish 
dealers, particularly those that receive red snapper from harvesting 
vessels. Two hundred and twenty-seven dealers currently have the 
required Federal permit to buy and sell commercial reef fish species. 
All processors would be included in this total since all processors 
must be dealers. From 1997-2002, an average of 154 dealers purchased 
red snapper from commercial vessels. Average employment information per 
reef fish dealer is unknown. Although dealers and processors are not 
synonymous entities, reported total employment for reef fish processors 
in the Southeast is estimated to be approximately 700 individuals, both 
part and full time. While all processors must be dealers, a dealer need 
not be a processor. Further, processing is a much more labor-intensive 
exercise than dealing. Therefore, given the total employment estimate 
for the processing sector (700 persons) and the total number of dealers 
operating in the red snapper fishery (154), and the total number of 
permitted reef fish dealers, it is assumed that the average number of 
employees per dealer and the average number of employees per processor 
would be unlikely to surpass the SBA employment benchmark and, for the 
purpose of this analysis, it is determined that all red snapper dealers 
and processors that would be affected by this action are small 
entities.
    Although it is unknown how many eligible shrimp permit holders will 
apply for moratorium permits, and thus be eligible to fish for shrimp 
in the GOM, 2,666 vessels would qualify for the shrimp permit and are 
assumed to constitute the potential affected universe of shrimp 
vessels. The average annual gross revenue (all harvest species) per 
qualifying vessel in 2005

[[Page 75224]]

was approximately $116,000, while the comparable figure for active 
qualifying vessels (vessels that recorded shrimp harvests) is 
approximately $152,000. In the same year, the maximum annual gross 
revenue from shrimp by a vessel was approximately $757,000 for both all 
qualifying and active qualifying vessels, whereas the maximum annual 
gross revenue from all harvest species was approximately $1.89 million 
by an inactive qualifier and $757,000 for an active qualifier. This 
indicates that the inactive qualifier found activity in other fisheries 
more lucrative than participation in the shrimp fishery, and the most 
active qualifier operated exclusively in the shrimp fishery. Fleet 
activity is also known to exist in the commercial shrimp fishery, but 
the magnitude of such activity cannot be determined with available 
data. Given these findings, for the purpose of this analysis, it is 
determined that all shrimp vessels that would be affected by this 
action are small entities.
    In 2005, 609 dealers were identified operating in the commercial 
shrimp fishery. Employment information for this sector is not 
available. In 2004, 61 processors in the shrimp fishery were 
identified, employing approximately 3,700 persons, or an average of 61 
employees per entity. Similar to the finfish sector, shrimp processing 
is more labor intensive than dealing, so average employment in the 
shrimp dealer sector is assumed to be less than that in the processing 
sector. Since the average employment per entity does not exceed the SBA 
threshold, it is determined, for this analysis, that all shrimp dealers 
and processors that could be affected by this action are small 
entities.
    This proposed rule would not change current reporting, 
recordkeeping, or other compliance requirements (other than the 
proposed measures described herein) under either the Reef Fish or 
Shrimp FMPs. Preexisting requirements include qualification criteria 
for for-hire vessel permits and participation in additional data 
collection programs if selected by NMFS. All of the information 
elements required for these processes are standard elements essential 
to the successful operation of a fishing business and should, 
therefore, already be collected and maintained as standard operating 
practice by the business. The requirements do not require professional 
skills.
    This proposed rule would be expected to affect all vessels that 
operate in the commercial red snapper fishery, all vessels that have a 
Federal reef fish for-hire permit, and all vessels that qualify for a 
commercial shrimp fishery moratorium permit. The proposed action would 
also be expected to affect all reef fish and shrimp dealers and 
processors that handle product from these fisheries. All such entities 
have been determined, for the purpose of this analysis, to be small 
entities. Therefore, it is determined that the proposed action will 
affect a substantial number of small entities.
    Commercial red snapper fishing vessels, for-hire operations, and 
red snapper dealers would be expected to bear the primary burden of the 
proposed actions, though spill-over impacts would be expected in 
associated industries, such as marinas and fishery suppliers. The net 
result of the combined proposed TAC reduction and commercial minimum 
size limit decrease for the commercial red snapper fishery would be 
expected to be an approximate 28-percent decline in net revenues, or 
approximately $7.0 million. Although over 750 entities are currently 
permitted to operate in the commercial red snapper fishery (136 
entities with Class 1 licenses and 628 entities with Class 2 licenses), 
131 vessels accounted for approximately 94 percent of the red snapper 
harvests from 2002-2005, which had an average ex-vessel value of 
approximately $11.18 million out of total average annual ex-vessel 
revenues for all fishing activity by these entities of approximately 
$17.34 million. Since most commercial red snapper fishing entities 
operate in multiple fisheries, the projected $7.0 million reduction in 
net revenues captures lost revenue for all species.
    During 2002-2005, the top 50 harvesters in the commercial red 
snapper fishery averaged approximately $144,000 in ex-vessel revenue 
per year out of total finfish revenues of approximately $211,000, 
indicating approximately 68 percent of the total revenues came from red 
snapper. The second tier vessels averaged approximately $40,000 in red 
snapper revenues and approximately $84,000 total revenues, or 48 
percent of total revenues coming from red snapper. Combined, the top 
131 vessels averaged approximately $80,000 per year from red snapper, 
$132,000 total revenues, and 60 percent of total revenues coming from 
red snapper. The remaining vessels that landed red snapper accounted 
for only approximately $700 per vessel per year from red snapper, out 
of total average revenues of $14,000, or approximately 5 percent from 
red snapper. Red snapper most likely constitutes a bycatch species for 
this third-tier group.
    A TAC reduction would most likely be expected to impact operations 
that target red snapper rather than those that incidentally harvest red 
snapper. If the entire quota reduction is assumed borne by the top 50 
and 131 vessels, respectively, the reduction in net revenues would 
equate to approximately $140,000 and $53,000 for the two groups, 
respectively. Relating these figures to the averages provided in the 
previous paragraph is difficult because the annual averages represent 
gross ex-vessel values, whereas the losses represent net values, and 
the expected losses incorporate an expected increase of approximately 
$1.14 in the price per pound of red snapper expected to develop as a 
result of the IFQ program. This price increase equates to a 47.5-
percent increase in the average price per pound over 2002-2005 ($11.65 
million per year/4.66 million lb (2.11 million kg) = $2.40 per pound; 
$1.14/$2.40 = 47.5 percent). If the annual average red snapper revenues 
presented above are inflated by this 47.5-percent factor, the resultant 
values per vessel are $212,400 in red snapper revenues and $279,400 
total revenues for the top 50 vessels, and $118,000 and $170,000 in red 
snapper and total revenues, respectively, for the top 131 vessels. 
Because the projected losses are across all species, the projected 
losses ($140,000 and $53,000) equate to approximately 50 percent of 
total net revenues ($140,000/$279,400) for the top 50 vessels and 
approximately 31 percent of total net revenues ($53,000/$170,000) for 
the top 131 vessels.
    An alternative perspective is to consider the number of vessels 
projected to operate under the IFQ program. Under the IFQ program, the 
commercial red snapper fleet is expected to consolidate to 39-95 
vessels, the range determined by whether the fleet gravitates to 
exclusively larger vessels (65-foot vessels) or small vessels (35-foot 
vessels). The period of time required to achieve this consolidation is 
not known, but a reduced TAC may accelerate the consolidation. Of 
course any IFQ-related consolidation is voluntary, vessels are 
compensated for their exit (through sale of their quota shares), and 
exiting vessels may continue to operate in other fisheries. Under the 
proposed TAC reduction, the resultant fleet is projected to be 28-68 
vessels, or 11-27 fewer vessels than the status quo, with the range 
again determined by whether the fleet is primarily large vessels (28 
vessels), or small vessels (68 vessels). Average performance of the 
fleet under the status quo (39-95 vessels) is estimated at 
approximately $274,000 ($26.0 million over 95 vessels) to $667,000 
($26.0 million over 39 vessels)

[[Page 75225]]

in net revenues. The projected loss of $7.0 million in net revenues 
under the proposed TAC reduction would be expected to reduce these 
values to approximately $200,000 and $487,000, respectively, or 
reductions of 27 percent.
    The for-hire sector would be expected to lose approximately 2,000 
trips in the charter vessel sector, 643 angler days in the headboat 
sector, and $43,000 overall in producer surplus as a result of the 
proposed action. These reductions would not be expected to occur 
uniformly across all operations because some vessels are more active in 
the red snapper fishery than others. If averaged over the 1,625 vessels 
active in the for-hire fleet, these reductions amount to fewer than 2 
trips and $30 per permitted vessel.
    The expenditures to related businesses associated with the expected 
trip losses in the for-hire and private angler sectors would also be 
expected to be lost as a result of the proposed action. These trips, 
however, represent less than 1 percent of the total effort directed at 
the species encompassed in the assessment (red snapper, grouper, 
dolphin, and king mackerel).
    The proposed target bycatch reduction goal that would apply to the 
commercial shrimp fishery is administrative in nature and would not be 
expected to have any direct economic impact on any entities in the 
directed or associated sectors.
    Five alternatives, including the status quo, were considered for 
the action to set TAC in the red snapper fishery. Three of the 
alternatives contained multiple options and sub-options to manage the 
recreational fishery under the respective TAC. The first alternative, 
the status quo, would not have achieved progress towards eliminating 
overfishing, and would increase the necessary reduction in subsequent 
years to allow the resource to continue on the designated recovery 
path, thereby increasing short-term adverse economic impacts relative 
to the proposed action, and would not meet NMFS objectives.
    The second alternative to the proposed TAC would have reduced the 
red snapper TAC to 7.0 million lb (3.2 million kg). Although this 
alternative has the potential of generating, depending upon the sub-
option selected, lower first-year adverse economic impacts than the 
proposed 6.5 million lb (3.0 million kg), this TAC would require 
greater TAC reduction in subsequent years, with greater adverse 
economic impacts than the proposed action.
    The third alternative to the proposed TAC would have reduced the 
red snapper TAC to 6.0 million lb (2.7 million kg). This alternative 
would have reduced the TAC greater than necessary to end overfishing 
consistent with the current rebuilding plan and would be expected to 
result in greater adverse economic impacts, ranging from losses in 
economic value (consumer and producer surplus) in the recreational 
sector of approximately $16.0 million to $27.0 million and a loss of 
approximately $8.5 million in net revenues in the commercial sector, 
than the proposed action, which is expected to result in a reduction of 
consumer and producer surplus of approximately $15.0 million in the 
recreational sector and a reduction in net revenues of $7.0 million in 
the commercial sector.
    The fourth alternative to the proposed TAC would have reduced the 
red snapper TAC to 5.0 million lbs (2.3 million kg). This alternative 
would have reduced the TAC greater than necessary to end overfishing 
consistent with the current rebuilding plan and would be expected to 
result in greater adverse economic impacts, ranging from losses in 
economic value in the recreational sector of approximately $23.0 
million to $25.0 million and a loss of approximately $11.5 million in 
net revenues in the commercial sector, than the proposed action.
    Two alternatives, the proposed alternative and the status quo, were 
considered for the action to set the captain and crew red snapper bag 
limit. The status quo, would be expected to decrease the ability of 
meeting harvest reduction targets and would have required more 
restrictive measures on recreational anglers, resulting in increased 
adverse economic impacts relative to the proposed action.
    Three alternatives, including the status quo, were considered for 
the commercial red snapper minimum size limit. The first alternative to 
the proposed action, the status quo alternative, would be expected to 
result in continued unnecessary bycatch mortality and would not, 
therefore, meet NMFS objectives.
    The second alternative to the proposed action would eliminate the 
commercial minimum size limit entirely. Because no commercial market is 
known to exist for red snapper smaller than 12 inches (30 cm), the 
expected economic impacts for this alternative relative to those of the 
proposed action are virtually identical. However, maintaining some 
minimum size limit in the commercial sector, as would be accomplished 
by the proposed action, would be expected to generate unquantifiable 
economic benefits accruing to a perception of greater sector equity and 
avoidance of user conflict since the proposed action would decrease the 
incentive for commercial operations to move their fishing location to 
areas where smaller fish congregate.
    Four alternatives, including the proposed status quo alternative, 
were considered for the gear requirements. The proposed action would 
not impose any new gear requirements on fishermen and would not result 
in any direct adverse economic impacts on these entities. Each of the 
three alternatives to the proposed action would be expected to result 
in greater adverse economic impacts than the proposed action through 
either increased gear costs or lowered operating efficiency. Given the 
short-term nature of the action, these adverse impacts would not be 
expected to be balanced by the economic benefits of improved stock 
conditions. Thus, each alternative would be expected to increase costs 
without demonstrable benefits and, thus, would not meet NMFS 
objectives.
    Three alternatives, including the status quo, were considered for 
the red snapper bycatch mortality reduction target in the commercial 
shrimp fishery. The status quo would not have established a bycatch 
reduction target, would not ensure consistent reductions in bycatch 
fishing mortality of juvenile red snapper in the shrimp fishery, and 
would not meet NMFS objectives. The second alternative to the proposed 
bycatch reduction target would establish a higher reduction target than 
the proposed action. Although this would be an administrative action 
with no expected direct adverse economic effects, the higher target 
exceeds the level of bycatch reduction the fishery has demonstrated to 
date and would, therefore, be expected to require further effort 
reductions, resulting in greater adverse economic impacts than the 
proposed action.
    Four alternatives, including the proposed status quo alternative, 
were considered for effort reduction in the commercial shrimp fishery. 
The proposed status quo would not impose any effort controls on the 
fishery and would not be expected to result in any adverse economic 
impacts. Each of the other alternatives would have imposed effort 
limitations in the shrimp fishery and would, therefore, be expected to 
result in greater adverse economic impacts than the proposed action, 
ranging from $7.8 million to $14.8 million in lost ex-vessel revenues, 
fishery-wide. These impacts would be expected to be borne by 394-863 
vessels. Although some behavioral changes would be expected to mitigate

[[Page 75226]]

these losses, the nature of these changes and their net impact cannot 
be determined.

List of Subjects in 50 CFR Part 622

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

    Dated: December 8, 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 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.  622.37, paragraph (d)(1)(iv) is suspended and paragraph 
(d)(1)(vi) is added to read as follows:


Sec.  622.37  Size limits.

* * * * *
    (d) * * *
    (1) * * *
    (vi) Red snapper--16 inches (40.6 cm), TL, for a fish taken by a 
person subject to the bag limit specified in Sec.  622.39(b)(1)(iii) 
and 13 inches (38.1 cm), TL, for a fish taken by a person not subject 
to the bag limit.
* * * * *
    3. In Sec.  622.39, paragraphs (b)(1)(iii) and (b)(1)(v) are 
suspended and paragraphs (b)(1)(viii) and (b)(1)(ix) are added to read 
as follows:


Sec.  622.39  Bag and possession limits.

* * * * *
    (b) * * *
    (1) * * *
    (viii) Red snapper--2. However, no red snapper may be retained by 
the captain or crew of a vessel operating as a charter vessel or 
headboat--their bag limit is zero.
    (ix) Gulf reef fish, combined, excluding those specified in 
paragraphs (b)(1)(i), (ii), (iv), (vi), (vii), and (viii) of this 
section and excluding dwarf sand perch and sand perch--20, but not to 
exceed 10 vermilion snapper.
* * * * *
    4. In Sec.  622.42, paragraphs (a)(1)(i) and (a)(2) are suspended 
and paragraphs (a)(1)(v) and (a)(3) are added to read as follows:


Sec.  622.42  Quotas.

* * * * *
    (a) * * *
    (1) * * *
    (v) Red snapper--3.315 million lb (1.504 million kg), round weight.
* * * * *
    (3) Recreational quota for red snapper. The following quota applies 
to persons who harvest red snapper other than under commercial vessel 
permits for Gulf reef fish and the commercial quota specified in 
paragraph (a)(1)(v) of this section--3.185 million lb (1.445 million 
kg), round weight.
* * * * *
[FR Doc. 06-9676 Filed 12-11-06; 10:01 am]
BILLING CODE 3510-22-S