[Federal Register Volume 72, Number 6 (Wednesday, January 10, 2007)]
[Proposed Rules]
[Pages 1206-1211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-202]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No.061228342-6342-01; I.D. 122206A]
RIN 0648-AT66


Fisheries of the Northeastern United States; Atlantic Herring 
Fishery; 2007-2009 Specifications

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

ACTION: Proposed specifications; request for comments.

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SUMMARY: NMFS proposes specifications for the 2007-2009 Atlantic 
herring fishery. The intent of the specifications is to conserve and 
manage the Atlantic herring resource and provide for a sustainable 
fishery.

DATES: Comments must be received no later than 5 p.m., eastern standard 
time, on February 9, 2007.

ADDRESSES: Copies of supporting documents, including the Environmental 
Assessment, Regulatory Impact Review, Initial Regulatory Flexibility 
Analysis (EA/RIR/IRFA), and Essential Fish Habitat Assessment are 
available from Paul J. Howard, Executive Director, New England Fishery 
Management Council, 50 Water Street, Mill 2, Newburyport, MA 01950. The 
EA/RIR/IRFA is also accessible via the Internet at http://www.nero.gov.
    Written comments on the proposed rule may be sent by any of the 
following methods:
     Mail to Patricia A. Kurkul, Regional Administrator, NMFS, 
Northeast Regional Office, One Blackburn Drive, Gloucester, MA 01930. 
Mark the outside of the envelope ``Comments, 2007-2009 Herring 
Specifications'';
     Fax to Patricia A. Kurkul 978-281-9135;
     E-mail to the following address: 
[email protected]. Include in the subject line of the e-mail 
comment the following document identifier: ``Comments, 2007-2009 
Herring Specifications;'' or
     Electronically through the Federal e-Rulemaking portal: 
http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Eric Jay Dolin, Fishery Policy 
Analyst, 978-281-9259, e-mail at [email protected], fax at 978-281-
9135.

SUPPLEMENTARY INFORMATION:

Background

    On September 28, 2006, the New England Fishery Management Council 
(Council) recommended specifications for the Atlantic herring fishery. 
At the time, Amendment 1 to the Atlantic Herring Fishery Management 
Plan (Amendment 1) was under development. The notice of availability 
for Amendment 1 was published in the Federal Register on September 6, 
2006 (71 FR 52521), with the comment period ending on November 6, 2006. 
One of the measures recommended in Amendment 1 was the establishment of 
a 3-year specifications setting process. Because Amendment 1 was still 
under review when the Council submitted its proposed specifications, 
the specifications package included a contingency provision. If the 
measure proposed in Amendment 1 to establish 3-year specifications was 
approved by NMFS, then the specifications described in the Council's 
package would be set for 3 years; but if the measure was not approved, 
the specifications proposed by the Council would be implemented for the 
2007 fishing year only. On December 6, 2006, NMFS partially approved 
Amendment 1, including the 3-year specifications setting process. As a 
result, the specifications proposed in this action would be set for 3 
years. While Amendment 1 has been partially approved, the final rule 
implementing the Amendment is still under development. The proposed 
rule for Amendment 1 was published in the Federal Register on September 
27, 2006 (71 FR 56446), and the comment period ended on November 13, 
2006. NMFS expects to publish the final rule implementing the approved 
measures in Amendment 1 in the near future.
    As modified by Amendment 1, the regulations implementing the FMP 
require the Council's Plan Development Team (PDT), which advises the 
Council on technical matters pertaining to

[[Page 1207]]

herring management, to meet with the Atlantic States Marine Fisheries 
Commissions' (Commission) Technical Committee (TC) to review the status 
of the stock and the fishery and prepare a Stock Assessment and Fishery 
Evaluation (SAFE) report every 3 years. While a SAFE report will only 
be prepared every 3 years, the Herring PDT will be required to meet at 
least once during interim years to review the status of the stock 
relative to the overfishing definition, if information is available to 
do so. When conducting a 3-year review and preparing a triennial SAFE 
Report, the PDT/TC will report to the Council/Commission and recommend 
any necessary adjustments to the specifications for the upcoming 3 
years. Specifications and TACs are conveyed to NMFS once approved by 
the Council, and published for public comment. If determined to be 
consistent with the FMP, final specifications are implemented.
    The Council may adjust the fishery specifications in the interim 
years. If the Council determines that the specifications should be 
adjusted during the 3-year time period, it can do so during one or both 
of the interim years. No action is required by the Council to maintain 
the same specifications for all 3 fishing years; Council action is 
required only if the Council decides to recommend adjustments to the 
specifications during the interim years.
    The Council is authorized, in consultation with the Commission, to 
set aside 0-3 percent of the TAC from any management area(s) to support 
herring-related research. This research set aside (RSA) would be 
administered through a process similar to that specified by the Mid-
Atlantic Fishery Management Council in several of its fishery 
management plans. That mechanism would include the following elements: 
Individual research projects may apply for the use of more than one 
herring RSA allocation; researchers may request that the set-aside be 
collected separately from the research trip or as part of the research 
trip; and research compensation trips would not all necessarily have to 
be conducted by the same vessel, but would have to be conducted in the 
management area from which the set-aside was derived.
    Specification of RSA amounts (percentages) for the upcoming fishing 
years is incorporated into the Council's fishery specification package 
every 3 years, and submitted to NMFS with any additional analysis 
required, as part of the specification package. For each proposal 
cycle, NMFS will publish a Request for Proposals (RFP) that specifies 
research priorities identified by the Council and application 
procedures for funding through the RSA. Since specifications are now 
set for 3 fishing years, the proposal cycle will also cover 3 fishing 
years, unless the Council identifies new/different research priorities 
during the interim years and decides to publish a new RFP.
    The Council determines the specific percentages for the RSAs and 
the management area(s) to which they apply during the fishery 
specification process. Currently, the herring fishery closes in a 
particular management area when it is projected that 95 percent of the 
area TAC has been/will be caught. The remaining 5 percent of the TAC is 
set aside for incidental catch in other fisheries (under a 2,000-lb ( 
907 kg) trip limit) after the directed fishery is closed. The RSA is 
intended to be in addition to the current 5 percent set-aside for 
incidental catch once the directed fishery in a management area closes. 
For example, if the Council sets aside 3 percent of the Area 1A TAC to 
support research, then the Area 1A TAC would close when 92 percent is 
projected to be reached.
    In the event that the approved proposals do not make use of any or 
all of the set-asides, NMFS is authorized to release the unutilized 
portion of the RSA back to its respective management area(s) when the 
final specifications are published. If there is unutilized RSA 
available, NMFS, at the request of the Council, may publish another RFP 
for either the second or third years of the 3-year specifications. In 
such case, NMFS would release the unutilized portion of the set-aside 
back to its respective management area(s) for the first year of the 
specifications and any other year that yields unutilized RSA, after an 
additional RFP is published. The Council also may decide not to publish 
another RFP, in which case NMFS is authorized to release the unutilized 
portion of the RSA back to its respective management area(s) for all 3 
fishing years covered by the specifications.
    On September 28, 2006, the Council proposed the following 
specifications (see Table 1) for the herring fishery for the 2007-2009 
fishing years, with a requirement that the Council review the 
specifications during 2007 and determine whether adjustments should be 
made for the 2008 and 2009 fishing years.

Table 1. Council-Proposed Specifications and Area TACs for the 2007-2009
                        Atlantic Herring Fishery
------------------------------------------------------------------------
              Specification                  Proposed Allocation (mt)
------------------------------------------------------------------------
ABC                                       194,000
------------------------------------------------------------------------
OY                                        145,000
------------------------------------------------------------------------
DAH                                       145,000
------------------------------------------------------------------------
DAP                                       141,000
------------------------------------------------------------------------
JVPt                                      0
------------------------------------------------------------------------
JVP                                       0
------------------------------------------------------------------------
USAP                                      20,000
                                          (Areas 2 and 3 only)
------------------------------------------------------------------------
BT                                        4,000
------------------------------------------------------------------------
TALFF                                     0
------------------------------------------------------------------------
Reserve                                   0
------------------------------------------------------------------------
TAC - Area 1A                             50,000
                                          [48,500 fishery; 1,500 RSA]
                                          (January 1 - May 31, landings
                                           cannot exceed 5,000)
------------------------------------------------------------------------
TAC - Area 1B                             10,000
                                          [9,700 fishery; 300 RSA]
------------------------------------------------------------------------
TAC - Area 2                              30,000
                                          [29,100 fishery; 900 RSA]
                                          (No Reserve)
------------------------------------------------------------------------
TAC - Area 3                              55,000
                                          [53,350 fishery; 1,650 RSA]
------------------------------------------------------------------------
Research Set Aside                        3 percent from each area TAC
                                          (2008 and 2009 FY only)
------------------------------------------------------------------------

Proposed 2007-2009 Specifications

    For the 2007 Atlantic herring fishing year, NMFS proposes to 
implement the specifications recommended by the Council, which are 
detailed in Table 1. For the fishing years 2008-2009, however, NMFS 
proposes a further reduction in the Area 1A TAC from 50,000 mt to 
45,000 mt, with a corresponding increase in the Area 3 TAC from 55,000 
mt to 60,000 mt. The revisions for 2008-2009 are discussed in detail 
below and are set out in Table 2.

    Table 2. Proposed Specifications and Area TACs for the 2008-2009
                        Atlantic Herring Fishery
------------------------------------------------------------------------
              Specification                  Proposed Allocation (mt)
------------------------------------------------------------------------
ABC                                       194,000
------------------------------------------------------------------------
OY                                        145,000
------------------------------------------------------------------------

[[Page 1208]]

 
DAH                                       145,000
------------------------------------------------------------------------
DAP                                       141,000
------------------------------------------------------------------------
JVPt                                      0
------------------------------------------------------------------------
JVP                                       0
------------------------------------------------------------------------
IWP                                       0
------------------------------------------------------------------------
USAP                                      20,000
                                          (Areas 2 and 3 only)
------------------------------------------------------------------------
BT                                        4,000
------------------------------------------------------------------------
TALFF                                     0
------------------------------------------------------------------------
Reserve                                   0
------------------------------------------------------------------------
TAC - Area 1A                             45,000
                                          [43,650 fishery; 1,350 RSA]
                                          (January 1 - May 31, landings
                                           cannot exceed 5,000)
------------------------------------------------------------------------
TAC - Area 1B                             10,000
                                          [9,700 fishery; 300 RSA]
------------------------------------------------------------------------
TAC - Area 2                              30,000
                                          [29,100 fishery; 900 RSA]
                                          (No Reserve)
------------------------------------------------------------------------
TAC - Area 3                              60,000
                                          [58,200 fishery; 1,800 RSA]
------------------------------------------------------------------------
Research Set Aside                        3 % from each area TAC
                                          (2008 and 2009 FY only)
------------------------------------------------------------------------

    For all 3 years, the Council recommended the TAC in Area 1A at 
50,000 mt, which is less than what has been landed from the area each 
year since the implementation of the FMP in 2000. In most of those 
years, the Area 1A TAC, which has been 60,000 mt, has been fully 
utilized. The Council's recommendation to reduce the Area 1A TAC to 
50,000 mt was based on a number of factors, among them, concern that 
the inshore component of the Atlantic herring stock is the most 
vulnerable component of the stock complex. Although Area 1A is not 
synonymous with the ``inshore stock component,'' there is a 
considerable amount of overlap. A risk assessment requested by the 
Council and performed by the PDT found that the Council's proposed 
action appears to be marginally successful in producing an exploitation 
rate that is consistent with FMSY for the stock component, 
based on a reasonable range of estimated stock mixing ratios for summer 
and winter. The PDT stated that it would be advisable to establish an 
Area 1A TAC that keeps exploitation of this component at or below 
FMSY.
    The rationale the Council used to recommend a reduction in the Area 
1A TAC by 10,000 mt is sound; however, NMFS believes that the PDT risk 
assessment demonstrates that an even deeper cut in the Area 1A TAC is 
warranted. NMFS is especially concerned about the strong retrospective 
pattern identified in the stock assessment that was conducted in May 
2006 by the Transboundary Resource Assessment Committee (TRAC) for 
biomass and fishing mortality estimates. The retrospective pattern 
overestimates SSB (averaging + 14.5 percent/year, and ranging between 
1-24 percent) and underestimates fishing mortality. While the herring 
stock as a whole is currently in good shape, given the retrospective 
pattern identified, it is likely that, as more data are collected and 
analyzed, the health of the stock today will be found to be not as 
robust as the current data imply. Therefore, NMFS proposes to be more 
precautionary in setting the TAC for Area 1A in 2008 and 2009, to 
protect the inshore stock component. Reducing the Area 1A TAC an 
additional 5,000 mt in 2008 and 2009 is more risk averse than the 
measures recommended by the Council, and would help ensure that 
exploitation rates are more consistent with FMSY over the next 3 years. 
NMFS believes that the extra amount of caution that a 45,000-mt Area 1A 
TAC affords is warranted, given the strong retrospective pattern in 
this stock assessment, and the output of the risk assessment.
    The setting of ABC is tied to the availability of new scientific 
data. The May 2006 herring assessment completed by the TRAC recommended 
a new MSY of 194,000 mt. In response to the 2006 TRAC Assessment, the 
PDT recommended that ABC for the Atlantic herring fishery be set at 
194,000 mt for the 2007-2009 fishing years. The Herring Committee and 
Council supported this recommendation, and NMFS concurs with the 
recommendation.
    The FMP specifies that OY will be less than or equal to ABC minus 
the expected Canadian catch (C) from the stock complex. The estimate of 
the Canadian catch that is deducted from ABC will be no more than 
20,000 mt for the New Brunswick weir fishery and no more than 10,000 mt 
for the Georges Bank fishery. The PDT, the Herring Committee, and the 
Council recommended that the assumed Canadian herring catch for 2007-
2009 should remain at 20,000 mt. NMFS concurs, and proposes that the 
maximum value of OY be 174,000 mt.
    The FMP also states that the establishment of OY will include 
consideration of relevant economic, social, and ecological factors and 
that OY may be less than ABC C. The Council recommended, and NMFS is 
proposing a 29,000-mt buffer between the maximum OY and the recommended 
OY of 145,000 mt. This level of OY would allow the herring fishery to 
expand significantly above current levels without allowing landings to 
increase all the way to ABC, which could be detrimental to the stock 
complex over the long term, given the retrospective pattern in the 
stock assessment. A buffer between ABC and OY is intended to help 
ensure that adequate SSB is available to produce strong and healthy 
recruitment in fluctuating and unpredictable environmental conditions. 
The importance of herring as a forage species for other Northeast 
region fish, mammals, and seabirds is another reason that a buffer 
between ABC and OY is appropriate.
    The OY of 145,000 mt is a level that can be fully harvested by the 
domestic fleet, resulting in a specification of DAH of 145,000 mt, 
precluding an allocation of TALFF. Setting DAH at 145,000 mt is 
reasonable, given the capacity of the herring fleet and the likelihood 
that landings will increase. The average herring landings from the most 
recent 5-year period (2001-2005) is 100,370 mt. The highest level of 
Atlantic herring landings in recent years was in 2001, when 120,025 mt 
were landed. The proposed DAH of 145,000 mt would allow a 45-percent 
increase in landings as compared to the 2001-2005 average, and a 20-
percent increase in overall landings as compared to 2001, and is 
realistic, given fishery performance in recent years, and the 
information about industry operations in the specifications.
    Since DAH is proposed to be set at 145,000 mt (of which 4,000 mt 
would be allocated for BT), DAP is proposed to be specified at 141,000 
mt. It is possible, given the capacity of the current harvesting fleet, 
the potential for market expansion to occur, and the expressed intent 
(made clear through public testimony) of the U.S. industry to expand 
the Atlantic herring fishery, that processors will utilize the 
recommended DAP. Because the recommended DAP is sufficient to process 
the entire DAH (minus the BT), JVP is set at zero. JVP operations would 
likely compete with U.S. processors for product, which could have a 
substantial negative impact on domestic facilities in

[[Page 1209]]

a market-driven fishery. This is consistent with the following 
relationship, which is specified in the FMP: DAH = DAP + JVPt + BT.
    The proposed USAP allocation of 20,000 mt could provide an 
additional outlet for harvesters and, therefore, increase the benefits 
to the U.S. industry. As in previous years, USAP activity would be 
restricted to TAC Areas 2 and 3.
    The proposed TAC in Area 1B would be set at 10,000 mt, which is the 
same level it has been set at since 2001. The Area 1B TAC was exceeded 
in 2001, when 16,704 mt was landed; in 2004, when 13,282 mt was landed; 
and in 2006, for which the final landings tally is not yet available. 
In other years since 2001, the landings from Area 1B have been 
considerably lower (25 percent or more) than 10,000 mt.
    The proposed TACs for Areas 2 and 3 are intended to permit the 
fishery to increase landings in those areas above the highest levels 
achieved in recent years. The highest recent landings in Area 2 were 
27,198 mt in 2000; thus, the proposed allocation would allow the 
fishery to slightly exceed that level. The highest recent landings in 
Area 3 were 35,079 mt in 2001; thus, the allocation would allow the 
fishery to exceed that level by a considerable amount, because this is 
the area most likely to see expanded harvests.

Classification

    This action is authorized by 50 CFR part 648 and has been 
determined to be not significant for purposes of Executive Order 12866.
    The Council prepared an IRFA, as required by section 603 of the 
Regulatory Flexibility Act (RFA), which describes the economic impacts 
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

    A 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

    During the 2005 fishing year, 143 vessels landed herring, 33 of 
which averaged more than 2,000 lb ( 907 kg) of herring per trip. The 
Small Business Administration's size standard for small commercial 
fishing entities is $4 million in gross sales. Thus, there are no large 
entities, as defined in section 601 of the RFA, participating in this 
fishery. Therefore, there are no disproportionate economic impacts 
between large and small entities.

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

    Impacts were assessed by the Council and NMFS by comparing the 
proposed measures to the Atlantic herring landings made in 2005, the 
last complete year for which data is available. From a fishery-wide 
perspective, the proposed specifications are not expected to produce a 
negative economic impact to vessels prosecuting the fishery because it 
allows for landings levels that are significantly higher than the 
average landings in recent years. The proposed 2007-2009 specifications 
should allow for incremental growth in the industry, while taking into 
consideration biological information. However, because of the 
distribution of the Area TACs, and the reduction in the Area 1A TAC in 
particular, the proposed specifications could have a negative impact on 
various parts of the industry, despite the fact that overall landings 
levels could be higher than in recent years.
    The specification of OY and DAH is proposed to be 145,000 mt for 
2007-2009. At this level, there could be an annual increase of up to 
51,610 mt in herring landings (relative to the 93,390 mt landed in 
2005), or $10.4 million in revenues, based on an average price (in 
2005) of $202/mt. This could allow individual vessels to increase their 
profitability under the proposed 2007-2009 specifications, depending on 
how may vessels ultimately end up qualifying for and participating in 
the fishery once it becomes a limited access fishery with the 
implementation of Amendment 1 in 2007. The magnitude of economic 
impacts related to the 141,000-mt specification of DAP will depend on 
the processing sector's ability to expand markets and increase capacity 
to handle larger amounts of herring during 2007-2009.
    JVPt was zero in 2005, therefore there are no potential economic 
losses associated with maintaining this specification in 2007-2009. 
Potential economic gains could be associated with the utilization of 
the 20,000 mt USAP, which has not been utilized in recent years. These 
gains could approximate $4 million annually (based on an average price 
of $202/mt) if all of the 20,000-mt allocation were utilized in 2007-
2009.
    The Area 1B TAC of 10,000 mt has been unchanged since the 2000 
fishery. Since only 6,108 mt of herring were harvested in Area 1B in 
2005, the proposed 2007-2009 specification of 10,000 mt could allow for 
an increased catch of 3,892 mt, which would equal $786,000 (based on an 
average price of $202/mt). This could allow individual vessels to 
increase their profitability under the proposed 2007-2009 
specifications, depending on how may vessels ultimately end up 
qualifying for and participating in the fishery once it becomes a 
limited access fishery with the implementation of Amendment 1 in 2007.
    The Council analyzed six alternatives for OY (the OY for the 
proposed action was already discussed above). Two alternatives would 
have retained the specifications implemented during the 2005-2006 
fishing years, which would have maintained the OY at 150,000 mt. This 
OY would be roughly 40 percent greater than the average historical 
landings for this fishery (2001-2005), and would not pose a constraint 
on the fishery. Two alternatives would set OY at 145,000 mt, the 
potential impacts of which are discussed above. Two alternatives would 
have set OY at 170,000 mt. This OY would be roughly 60 percent greater 
than the average historical landings for this fishery (2001-2005), and 
therefore would not pose a constraint on the fishery.
    The proposed action would establish the following TACs: Area 1A, 
50,000 mt in 2007, and 45,000 mt in 2008 and 2009; Area 1B, 10,000 mt 
in 2007-2009; Area 2, 30,000 mt in 2007-2009; and Area 3, 55,000 mt in 
2007, and 60,000 mt in 2008 and 2009. Only the Area 1A TAC would be 
constraining, given recent landings history. The impacts of such a 
reduction are considered, in turn, for the purse seine fleet, the 
single midwater trawl fleet, and the paired midwater trawl fleet.
    In 2005, the currently active purse seine fleet caught 27 percent 
of the Area 1A TAC. With a 10,000-15,000-mt reduction in the Area 1A 
TAC, it the proportion of the herring catch by the purse seine fleet 
remains the same and the decrease in the Area 1A TAC cannot be made up 
from fishing in other areas, there would be a 2,700-mt loss in catch

[[Page 1210]]

under the proposed action during 2007, and a 4,050 mt loss in catch in 
2008 and 2009. Using the 2005 average price of herring of $202 per 
metric ton, this loss in catch would be worth $545,400 and $818,000, 
respectively, across the sector (there are four vessels in the 
currently active purse seine fleet). To make up for such a loss, these 
vessels would have to either increase their proportion of the herring 
catch in Area 1A relative to midwater trawlers, or move to other areas. 
Moving to offshore areas may be problematic due to the size of the 
vessels. There were no landings from Area 3 by the purse seine fleet in 
2005. Moving offshore would also entail additional operating costs.
    With a 10,000-15,000-mt decrease in the Area 1A TAC, the impact of 
the proposed action on the single midwater trawl fleet is difficult to 
predict, because the PS/FG only area eliminates single midwater trawl 
vessels from Area 1A during the most productive part of the Area 1A 
fishery (June through September). The establishment of a PS/FG only 
area might intensify the race to fish in Area 1A, as all midwater trawl 
vessels (single and paired) try to catch fish from the area prior to 
the closure to trawling on June 1.
    If herring are plentiful in Area 1A during the spring (Area 1A 
catches increase in May, historically), the single midwater trawlers 
may be able to maintain their historical proportion of the Area 1A TAC. 
However, it is likely that purse seine vessels and midwater pair trawl 
vessels would also participate in the pre-June race in order to keep 
their landings on par with previous years. In addition, single midwater 
trawl vessels might convert to purse seine gear in order to fish in 
Area 1A in the summer.
    In 2005, the currently active single midwater trawl fleet caught 18 
percent of the Area 1A TAC. If the proportion of the herring catch by 
the single midwater trawl fleet remains the same, and the decrease in 
the Area 1A TAC cannot be made up from fishing in other areas, there 
would be a 1,800-mt loss in catch under the proposed action during 
2007, and a 2,700-mt loss in catch in 2008 and 2009. Using the 2005 
average price of herring of $202 per metric ton, this loss in catch 
would be worth $363,600 and $545,400, respectively, across the sector 
(there are four vessels that were active in Area 1A from 2003-2005 in 
the single midwater trawl fleet). To make up for such a loss, the 
single midwater trawl vessels would have to either increase their 
proportion of the herring catch in Area 1A relative to purse seine 
vessels, or move to other areas. Moving to offshore areas may be 
problematic for two of the four single midwater trawl vessels since 
these two are relatively smaller vessels and have only landed herring 
from Area 1A during 2003 through 2005, indicating an inability to fish 
offshore. The other two vessels are somewhat larger and have Area 3 
catch history so their loss of Area 1A catch may be mitigated by their 
ability to fish in Area 3. If the single midwater trawl vessels make up 
their catch in Areas 2 and 3, the cost to harvest the fish will 
increase (depending on their home port with respect to Area 2) due to 
increased steaming costs.
    Since the 10,000-mt to 15,000-mt reduction in TAC is proposed in 
Area 1A, the single midwater trawl fleet may have to rely more on Area 
1B. The Area 1B TAC has historically not been reached every year (60 
percent was utilized in 2005). Since Area 1B is farther from shore than 
Area 1A, the cost of harvesting herring will increase. Area 1B will 
only be able to provide limited relief for vessels impacted by the 
reduction in the Area 1A TAC since it is limited to 10,000 mt. Since a 
shortfall of 10,000 mt to 15,000 mt in Area 1A could not be made up 
entirely in Area 1B, the Area 1B season may be shortened.
    With decreases in the Area 1A TAC of 10,000 mt to 15,000 mt under 
the proposed action, the impact on the midwater pair trawl fleet could 
also be large. It is difficult to predict what the impact will be on 
the midwater pair trawl fleet, because at the time the new Area 1A TAC 
would be implemented, the PS/FG only area will be in effect. Without 
knowing what portion of an Area 1A TAC of 60,000 mt the pair trawl 
fleet might land with the implementation of a PS/FG only area, it is 
difficult to know what a reduction of 10,000 mt to 15,000 mt might mean 
to the fleet.
    In 2005, the currently active pair trawl fleet caught 55 percent of 
the Area 1A TAC. If the proportion of the herring catch by the pair 
trawl fleet remains the same and the decrease in the Area 1A TAC cannot 
be made up from fishing in other areas, there would be a 5,500-mt loss 
in catch under the proposed action in 2007, and a 8,250-mt loss in 2008 
and 2009. Using the 2005 average price of herring of $202 per metric 
ton, this catch is worth $1,111,000 and $1,666,500 respectively, across 
the sector (there are 12 vessels in the pair trawl fleet that were 
active from 2003-2005). To make up for such a loss, pair trawl vessels 
would have to either increase their proportion of the herring catch in 
Area 1A relative to purse seine vessels, or move to other areas. All 
pair trawl vessels have Area 3 catch history, so their loss of Area 1A 
catch may be mitigated by their ability to fish in Area 3. If the pair 
trawl vessels make up their catch in Areas 2 and 3, the cost to harvest 
the fish will increase (depending on their home port with respect to 
Area 2) due to increased steaming costs.
    Since the 10,000-mt to 15,000-mt reduction in TAC is proposed in 
Area 1A, the pair trawl fleet may also have to rely more on Area 1B. 
Since Area 1B is farther from shore than Area 1A, the cost of 
harvesting herring may increase. Area 1B will only be able to provide 
limited relief for vessels impacted by the reduction in the Area 1A TAC 
since it is limited to 10,000 mt. Since a shortfall of 10,000 mt to 
15,000 mt in Area 1A could not be made up in Area 1B, the Area 1B 
season could be shortened.
    Two alternatives considered by the Council would have established 
the same TACs as were established in 2005-2006: Area 1A, 60,000 mt; 
Area 1B, 10,000 mt; Area 2, 30,000 mt; and Area 3, 50,000 mt. Only the 
Area 1A TAC might be constraining, given recent landings history. The 
fourth alternative would have been similar to the last two 
alternatives, except the Area 3 TAC would be 70,000 mt for all 3 years. 
The increase in the Area 3 TAC of 20,000 mt could result in a potential 
economic gain of $4 million, using the 2005 average price of herring of 
$202 per metric ton, which would most likely accrue to trawlers since 
purse seiners usually are not able to fish in Area 3.
    The fifth alternative (the Council-recommended) would have been 
similar to the proposed action, except the Area 1A TAC would be 50,000 
mt for all 3 years, and the Area 3 TAC would be 55,000 mt. The 
potential impacts of a 10,000-mt reduction in Area 1A have already been 
discussed above. The increase in the Area 3 TAC of 5,000 mt could 
result in a potential economic gain of $1 million, using the 2005 
average price of herring of $202 per metric ton, which would most 
likely accrue to trawlers, since purse seiners usually are not able to 
fish in Area 3.
    The sixth alternative would have been similar to the proposed 
action, except the Area 1A TAC would be 45,000 mt for all 3 years, with 
an Area 3 TAC of 60,000 mt. The potential impacts of a 15,000-mt 
reduction in Area 1A have already been discussed above. The increase in 
the Area 3 TAC of 10,000 mt could result in a potential economic gain 
of $2 million, using the 2005 average price of herring of $202 per 
metric ton, which would most likely accrue to trawlers, since purse 
seiners

[[Page 1211]]

usually are not able to fish in Area 3. The seventh alternative 
analyzed by the Council is similar to the sixth alternative, except the 
Area 2 TAC would be 45,000 mt for all 3 years, and the Area 3 TAC would 
be 70,000 mt. The increase in the Area 2 TAC of 15,000 mt could result 
in a potential economic gain of $3 million, using the 2005 average 
price of herring of $202 per metric ton, which would most likely accrue 
to trawlers, since purse seiners usually are not able to fish in Area 
3. The increase in the Area 3 TAC of 20,000 mt could result in a 
potential economic gain of $4 million, using the 2005 average price of 
herring of $202 per metric ton, which would most likely accrue to 
trawlers, since purse seiners usually are not able to fish in Area 3.

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

    Dated: January 4, 2007.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
[FR Doc. E7-202 Filed 1-9-07; 8:45 am]
BILLING CODE 3510-22-S