[Federal Register Volume 72, Number 19 (Tuesday, January 30, 2007)]
[Rules and Regulations]
[Pages 4211-4217]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-1445]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 061124307-7013-02; 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: Final rule.

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SUMMARY: This action implements 2007 specifications and management 
measures for Atlantic mackerel, squid, and butterfish (MSB) and 
modifies existing management measures. Specifically, it implements 
trimester quota allocations for the Loligo squid fishery and 
establishes the protocol for an inseason adjustment to increase the 
mackerel harvest, if landings approach harvest limits. Lastly, this 
final rule clarifies, updates, and corrects existing regulatory 
language that is misleading or incorrect. This action promotes the 
utilization and conservation of the MSB resource.

DATES: Effective March 1, 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. 
NMFS prepared a Final Regulatory Flexibility Analysis (FRFA), which is 
contained in the Classification section of the preamble of this rule. 
Copies of the FRFA and the Small Entity Compliance Guide are available 
from the Regional Administrator, Northeast Regional Office, NMFS, One 
Blackburn Drive, Gloucester, MA 01930-2298, and are also available via 
the internet at http://www.nero.nmfs.gov.

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, and regulations governing foreign fishing 
appear at 50 CFR part 600, subpart F. This action fulfills NMFS 
regulatory requirements at Sec. Sec.  648.21 and 600.516(c) to, based 
on the maximum optimum yield (Max OY) of each fishery as established by 
the regulations, annually specify 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 (JVP) for the affected species 
managed under the FMP. The Council adopted 2007 MSB specifications and 
management measures at its June 2006 and August 2006 meetings and 
submitted them to NMFS for review and approval. Initial submission was 
on September 1, 2006, and final submission was on October 31, 2006. A 
proposed rule for 2007 MSB specifications and management measures was 
published on December 5, 2006 (71 FR 70493). The public comment period 
for the proposed rule ended on January 4, 2007. Details concerning the 
Council's development of these measures were presented in the preamble 
of the proposed rule and are not repeated here.

Disapproval of Incidental Loligo Squid Possession Limit for the Illex 
Squid Vessels

    In an effort to reduce regulatory discarding and allow for more 
accurate quantification of the removals of Loligo squid taken in the 
directed Illex squid fishery, the Council recommended increasing the 
incidental Loligo squid possession limit for vessels engaged in the 
directed Illex squid fishery. Specifically, 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 have been 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 was recommend 
for 2007 only, and the Council intended to re-assess it for 2008.
    NMFS explained at length in the proposed rule that, while it 
supports the Council's intent to reduce regulatory discarding of Loligo 
squid in the Illex squid fishery, it was concerned about its

[[Page 4212]]

ability to administer this measure effectively. NMFS presented its 
concerns and solicited public comment on the measure. After reviewing 
the public comment, NMFS determined its concerns were warranted, and 
the measure is not included in this rule. The incidental Loligo squid 
possession limit for Illex squid moratorium vessels during closures of 
the directed Loligo squid fishery continues to be 2,500 lb (1.13 mt) 
per trip per calendar day.

Final MSB Specifications and Management Measures for the 2007 Fishing 
Year

    This action implements the following MSB specifications and 
management measures for the 2007 fishing year, which are described in 
detail below.

  Table 1. Proposed Specifications, in Metric Tons (mt), for Atlantic Mackerel, Squid, and Butterfish for 2007
                                                  Fishing Year.
----------------------------------------------------------------------------------------------------------------
             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

    This action specifies the mackerel ABC at 186,000 mt, based on the 
formula ABC = T - C. T is the yield (238,000 mt) associated with a 
fishing mortality rate (F) that is equal to the target F (F=0.12); C is 
the estimated catch of mackerel in Canadian waters (i.e., 52,000 mt) 
for the upcoming fishing year. Thus, 238,000 mt minus 52,000 mt results 
in the 2007 mackerel ABC of 186,000 mt. This action also specifies the 
mackerel IOY at 115,000 mt, a level that can be fully harvested by the 
domestic fleet, thereby precluding the specification of a TALFF, while 
allowing the U.S. mackerel industry to expand. Given the trends in 
landings and the industry's testimony that the fishery is poised for 
significant growth, NMFS believes that it is reasonable to assume that, 
in 2007, the commercial fishery will harvest 100,000 mt of mackerel. 
Therefore, this action specifies the mackerel DAH at 115,000 mt, which 
is the commercial harvest plus the 15,000 mt anticipated to be 
harvested by the recreational fishery. Because IOY = DAH, this 
specification is consistent with the Council's recommendation that the 
level of IOY should not provide for a TALFF.
    As recommended by the Council, this action specifies the mackerel 
DAP at 100,000 mt and the mackerel JVP at zero. 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. shore-based processing capacity 
for mackerel has expanded. In addition, an at-sea processing vessel is 
expected to participate in 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, and NMFS 
concurs, that processing capacity is no longer a limiting factor 
relative to domestic production of mackerel. Consequently, if U.S. 
harvesters land mackerel in excess of 100,000 mt, should the IOY be 
adjusted upward, U.S. processors have the capacity and intent to 
process it.
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, public comment was 
solicited as part of the 2007 MSB specifications and this action 
implements a protocol for an inseason adjustment in 2007. The protocol 
specifies that, 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. 
The NMFS 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. 
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
    For 2007, this action specifies the Loligo squid Max OY at 26,000 
mt; the ABC at 17,000 mt; and the research quota (RQ) for up to 3 
percent (510 mt) of the ABC. Two scientific research project proposals 
requesting Loligo squid RQ were recommended for approval and were 
forwarded to the NOAA Grants Office for award. The 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

[[Page 4213]]

and process the IOY for this fishery; therefore, JVP and TALFF are 
zero.
Distribution of the Loligo Squid DAH
    For 2007, this action specifies that the Loligo squid DAH will be 
allocated by trimester. 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. The 2007 trimester 
allocations are 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.

    Additionally, for 2007, this action specifies that the directed 
Loligo squid fishery will 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. It also specifies that any underages from Trimesters I 
and II will be applied to Trimester III, and any overages from 
Trimesters I and II will be subtracted from Trimester III.
    As was described in the proposed rule, NMFS did not propose one of 
the Council's recommended measures, 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 possession limits, 
because it could not be effectively administered. The quota for 
Trimester II is small, the fishing activity is likely to be intense 
during Trimester II, and sizable landings can be made per trip in the 
Loligo squid fishery, therefore, there is little likelihood that such a 
small quota could be effectively monitored in a time frame to prevent 
significant underages or overages.
Landing Frequency of Incidental Loligo Squid Possession Limit
    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. Therefore, 
this action clarifies that vessels subject to the incidental Loligo 
squid possession limit may only land once per calendar day, whether the 
directed Loligo squid fishery is open or closed.
Illex squid
    This action specifies the Illex squid Max OY, IOY, ABC, and DAH at 
24,000 mt. 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 IOY from this 
fishery.

Butterfish

    This action specifies the butterfish IOY, DAH, and DAP at 1,681 mt, 
and the ABC at 4,545 mt. Consistent with MSB regulations, this action 
specifies zero TALFF for butterfish in 2007 because zero TALFF is 
established for mackerel.

Modifications to Existing Regulatory Language

    To clarify that it is appropriate to use the most recent 
information when developing annual specifications, this action 
specifies that regulatory language describing the procedure for 
calculating mackerel ABC (at Sec.  648.21(b)(2)) will describe the 
reference points and formula, but will not include any values. This 
makes it clearer that the values from the most recent stock assessment 
are to be used when calculating 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 corrects those citations.
    This action clarifies that the landing frequency for vessels 
subject to the incidental possession limits for Loligo squid, Illex 
squid, and butterfish, specified at Sec.  648.22(c), is once per 
calendar day. For example, 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 throughout 
the year.
    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 lists Illex squid along with Loligo squid and 
butterfish at Sec.  648.21(c)(3).
    Beginning in 2007, the Northeast Fisheries Science Center (NEFSC) 
Director, rather than the Regional Administrator, will provide final 
approval for research projects requesting RQ. Therefore, this action 
updates regulations at Sec.  648.21(g) to reflect that change.
    Lastly, this action clarifies 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 
removes language suggesting that these reporting requirements only 
apply if the product is landed in a port in the United States.

Comments and Responses

    NMFS received five comment letters on the proposed 2007 MSB 
specifications and management measures; one letter was from a state 
agency, three letters were from industry representatives, and one 
letter was from an individual. Comments on the FMP that were not 
specific to the 2007 specifications and management measures described 
in the proposed rule or that suggest NMFS should implement measures in 
addition to those described in the proposed rule are not responded to 
in this final rule. These comments were on such topics as observer 
coverage and participation of at-sea processors, a limited access 
program for mackerel, allowing Loligo squid quota underages to be 
applied to quota the next calendar year, and concerns that

[[Page 4214]]

the most recent mackerel stock assessment does not accurately reflect 
the abundance of the stock.
    Comment 1: One commenter indicated general support for a reduction 
of commercial quotas, the use of accurate harvest information to 
develop quotas, and the need for protection of the public fishery 
resource.
    Response: NMFS acknowledges the importance of the issues raised by 
the commenter, which relate generally to 2007 MSB specifications and 
management measures. As specified in the FMP, the Council developed the 
2007 MSB specifications and management measures using the best 
available data regarding the resource and the fishery. Additionally, 
the 2007 MSB specifications and management measures are consistent with 
the rules specified in the FMP to promote utilization and conservation 
of the MSB resource.
    Comment 2: Two industry representatives expressed support for the 
2007 MSB specifications and management measures. Both commenters are 
concerned that a reduced mackerel quota does not reflect the abundance 
of this stock.
    Response: While the mackerel ABC is reduced from 335,000 mt in 2006 
to 186,000 mt in 2007, the 2007 mackerel IOY and DAH represent status 
quo. The FMP requires that mackerel ABC 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 status of 
the Atlantic mackerel stock was most recently assessed at the 42nd 
Stock Assessment Review Committee (SARC) in late 2005. SARC 42 provided 
new biological reference points (BRP) for Atlantic mackerel, including 
the target F to be used in establishing the annual quota. The yield 
associated with the updated target F (0.12) is 238,000 mt. Because 
Canadian catch of mackerel has been increasing in recent years, the 
estimate of Canadian catch for 2007 has been increased from the 2006 
estimate of 34,000 mt to 52,000 mt. Therefore, the 2007 mackerel ABC of 
186,000 mt was calculated by subtracting 52,000 mt from 238,000 mt, as 
required by the FMP. The Council and NMFS must use the most recent 
peer-reviewed stock assessment advice to establish ABC.
    Comment 3: Another industry representative also expressed concern 
with the low mackerel quota, specifically a low DAH, and recommended 
that the DAH be increased to 160,000 mt. The recommendation for 
increasing the DAH was based on the health of the mackerel stock, the 
capacity of the industry, the need for additional scientific 
information for the assessment model, and the need to maximize harvest 
to best position the U.S. for resource sharing negotiations with 
Canada.
    Response: This action is implementing a protocol for an inseason 
adjustment of the mackerel IOY. If mackerel are available to the 
fishery in 2007 and projected landings indicate that 70 percent of the 
IOY will be landed during the fishing year, the mackerel IOY will be 
increased up to the ABC (186,000 mt). Therefore, with an inseason 
adjustment, the potential DAH could be 186,000 mt, higher than 
recommended by the commenter. In recommending DAH of 115,000 mt, the 
Council sought to balance its expectations of growth in the mackerel 
landings with a realistic view of landings in recent years. While 
growth has occurred, preliminary landings for 2006 were 68,298 mt, so a 
DAH of 115,000 mt provides great room for expansion.
    Comment 4: Three industry representatives and one state agency 
expressed support for an inseason adjustment of the mackerel IOY, up to 
the ABC, if landings projections indicate that 70 percent of the IOY 
will be landed during the fishing year. Two of these industry 
representatives offered to work with NMFS to monitor landings closely 
and identify trends that would indicate an adjustment is necessary. 
Additionally, these industry representatives stressed the importance of 
speedy implementation of an inseason action, if warranted, to prevent 
any interruption of the fishery.
    Response: NMFS appreciates industry's offer to provide information 
on landings trends and will work closely with industry to ensure that 
landings estimations are reliable. If information demonstrates an 
adjustment is necessary, NMFS will make the adjustment in a manner that 
will avoid interruption in the fishery as specified in this final rule.
    Comment 5: One industry representative expressed support for the 
proposed measure to increase the incidental Loligo squid possession 
limit for Illex squid vessels, fishing seaward of the small mesh 
exemption line (which approximates the 50-fm (91-m) depth contour), 
during August closures of the directed Loligo squid fishery in 2007. 
The other comment received on this measure was from a state agency 
expressing, concern with this measure. In particular, the state agency 
cautioned that this measure could create a disparate benefit for Illex 
squid vessels by significantly reducing the Loligo squid quota 
available to the directed Loligo squid fishery during Trimester III. 
The state agency was also concerned that no mechanisms were recommended 
to NMFS to monitor Illex squid fishery effort or track where the 
incidentally harvested Loligo squid were caught. Furthermore, the state 
agency recommended that, should this measure be implemented in 2007, 
additional management mechanisms were needed, such as a declaration 
program, vessel monitoring systems, mandatory observer coverage, and/or 
limited access to the increased possession limit, based on past landing 
history. The state agency also questioned the rationale for this 
measure and disagreed that analyses presented in the 2007 MSB 
Specifications EA demonstrated a significant Loligo squid discard issue 
in the Illex squid fishery.
    Response: NMFS is also concerned that no mechanisms were 
recommended by the Council to enable NMFS to effectively administer 
this measure. Without mechanisms to determine where Illex squid 
moratorium vessels fish for Loligo squid and to discourage targeting on 
Loligo squid, NMFS is not able to enforce this measure. Therefore, NMFS 
disapproved the proposal to increase the incidental Loligo squid 
possession limit for Illex squid vessels. Rather, the incidental Loligo 
squid possession limit for Illex squid vessels will remain at 2,500 lb 
(1.13 mt) per trip, with only one trip allowed to be landed per day.
    NMFS acknowledges the state agency's comment that analyses 
presented in the 2007 MSB Specifications EA failed to demonstrate a 
significant Loligo squid discard issue in the Illex squid fishery. NMFS 
notes that additional analyses describing Loligo squid discarding in 
the Illex squid fishery have been prepared for consideration in 
Amendment 9 to the FMP, and these analyses provide addition information 
about these discards.
    Comment 6: One state agency commented that the rationale for 
trimester allocation of Loligo squid quota in 2007 is to help NMFS 
better monitor Loligo squid allocations by creating larger allocations 
that will likely increase the time the fishery is open, allowing 
closure projections to be based on more information and, perhaps, be 
more accurate. The state agency stated that the Loligo squid fishery 
has a history of premature closures and unharvested quota, resulting in 
economic losses to industry, but that no mechanisms to address this

[[Page 4215]]

problem were proposed. Because the state agency believes that the 
current reporting system needs to be improved, it recommended that NMFS 
augment the current reporting system with regular dialogues between 
NMFS and squid dealers.
    Response: NMFS is uncertain if the commenter supports or opposes 
the measure to allocate Loligo squid quota by trimester in 2007. NMFS 
suggests that recommendations for augmenting the current reporting 
system for the Loligo squid fishery should be presented to the Council. 
NMFS staff work with dealers routinely, in conjunction with their 
monitoring responsibilities, but timely and accurate submission of data 
remains the responsibility of the industry.
    Comment 7: One industry representative expressed support for the 
measure to manage the 2007 Loligo squid quota by trimesters in 2007. 
The industry representative stressed that managing the Loligo squid 
quota by trimester is for 2007 only, and that future management of the 
Loligo squid fishery will be dependent upon the performance of the 2007 
fishery.
    Response: NMFS is implementing a trimester system for 2007.
    Comment 8: One industry representative expressed support for the 
measure to clarify that the landing frequency of the incidental Loligo 
squid possession limit is only once per calendar day, whether the 
directed Loligo squid fishery is open or closed.
    Response: NMFS believes this clarification is appropriate and 
necessary. Additionally, because regulations at Sec.  648.22(c) specify 
the landing frequency of the incidental possession limits for Loligo 
squid, Illex squid, and butterfish, this action will make the same 
clarification for those species.

Changes From the Proposed Rule

    In the proposed rule, regulations increasing the incidental Loligo 
squid possession limit for Illex squid vessels were proposed in Sec.  
648.22(d). Because NMFS decided that this measure cannot be effectively 
administered, this action will not add a paragraph (d) to Sec.  648.22.

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).
    NMFS, pursuant to section 604 of the Regulatory Flexibility Act, 
has prepared a FRFA, included in this final rule, in support of the 
2007 MSB specifications and management measures. The FRFA describes the 
economic impact that this final rule, along with other non-preferred 
alternatives, will have on small entities.
    The FRFA incorporates the economic impacts and analysis summarized 
in the IRFA, a summary of the significant issues raised by the public, 
and a summary of analyses prepared to support the action (i.e., the EA 
and the RIR). The contents of these documents are not repeated in 
detail here. A copy of the IRFA, the RIR, and the EA are available upon 
request (see ADDRESSES). 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 the proposed and final 
rules and is not repeated here.

Statement of Need for this Action

    This action specifies 2007 specifications and management measures 
for Atlantic mackerel, squid, and butterfish, and modifies existing 
management measures to improve the monitoring and management of these 
fisheries.

A Summary of the Significant Issues Raised by the Public Comments in 
Response to the IRFA, a Summary of the Assessment of the Agency of Such 
Issues, and a Statement of Any Changes Made in the Proposed Rule as a 
Result of Such Comments

    A summary of the comments received and NMFS' responses thereto is 
contained in the preamble and is not repeated here.

Description of Small Entities to Which this Action 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.

Description of the Steps the Agency has taken to Minimize the 
Significant Economic Impact on Small Entities Consistent with the 
Stated Objectives of Applicable Statutes, Including a Statement of the 
Factual, Policy, and Legal Reasons for Selecting the Alternative 
Adopted in the Final Rule and Why Each One of the Other Significant 
Alternatives to the Rule Considered by the Agency Which Affect the 
Impact on Small Entities was Rejected

    The mackerel IOY specified in this action (115,000 mt) 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 23,079 mt. Landings in 2004 were 53,781 
mt; landings in 2005 were 42,206 mt; and preliminary landings for 2006 
were 68,298 mt. Additionally, this action specifies a protocol for an 
inseason adjustment to increase the IOY up to the ABC (186,000 mt), if 
landings approach 70 percent of the IOY during the fishing year. 
Therefore, no reductions in revenues for the mackerel fishery are 
expected as a result of this action; in fact, an increase in revenues 
as a result of this action is possible. Based on preliminary 2006 data, 
the mackerel fishery could increase its landings by 46,702 mt in 2007, 
if it harvests the entire IOY. In 2005, the last year for which NMFS 
has complete financial data for this fishery, 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 2007 IOY 
(115,000 mt) and an additional increase in revenues of $18,531,000 as a 
result of the inseason adjustment to increase the IOY up to the ABC 
(186,000 mt).
    The Council analysis evaluated three alternatives for mackerel, and 
all of them would 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 are expected as a result of any of these alternatives. The 
preferred alternative would set the ABC at 186,000 mt. Alternative two 
(status quo) would set the ABC at 335,000 mt, and alternative three 
would set the ABC at 204,000 mt. Alternatives two and three 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 levels that were 
too high in light of social and

[[Page 4216]]

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. A full discussion of the TALFF 
issue is included in the preamble to the proposed rule and is not 
repeated here.
    The Loligo squid IOY (17,000 mt) specified 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 for which NMFS has 
complete financial data for this fishery, the average value for Loligo 
squid was $1,703 per mt. Implementation of this action would not result 
in a reduction in revenue or a constraint on restraint on the fishery 
in 2007.
    For Loligo squid, all alternatives would 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). This action implements allocation of quota by 
trimester, without the closure/re-opening provision. 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 have, under certain 
conditions, resulted in a reduction in the amount of Loligo squid quota 
available during Trimester III. However, NMFS cannot effectively 
administer the closure/re-opening measure, therefore, this action does 
not increase the incidental Loligo squid possession limit for Illex 
squid vessels, but maintains it at 2,500 lb (1.13 mt) per trip, limited 
to one trip per calendar day. All alternatives would result in the same 
total landings for 2007.
    The Illex squid IOY (24,000 mt) specified 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 for which NMFS has complete 
financial data for this fishery, the average value for Illex squid was 
$715 per mt. Implementation of this action would not result in a 
reduction in revenue or a constraint on restraint on the fishery in 
2007.
    For Illex squid, three alternatives were considered by the Council. 
One alternative would set Max OY, ABC, IOY, DAH, and DAP at 30,000 mt, 
the preferred alternative would set these at 24,000 mt, and the third 
alternative would set these at 19,000 mt. The alternative with an IOY 
of 30,000 mt would allow harvest far in excess of recent landings in 
this fishery. 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. The alternative 
with an IOY of 19,000 mt is the most restrictive alternative. To 
provide for the same level of harvest as in 2006 and to prevent the 
possibility of negative economic impacts, this action specifies the 
2007 Illex squid IOY at 24,000 mt.
    The butterfish IOY (1,681 mt) specified 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 538 mt and 393 mt, 
respectively, this 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.
    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. Neither of these 
alternatives were selected by the Council because they would likely 
result in overfishing and the additional depletion of the spawning 
stock biomass of an overfished species. This action specifies a 
butterfish IOY of 1,681 mt because it is the most restrictive of the 
three alternatives.

Small Entity Compliance Guide

    Section 212 of the Small Business Regulatory Enforcement Fairness 
Act of 1996 states that, for each rule or group of related rules for 
which an agency is required to prepare a FRFA, the agency shall publish 
one or more guides to assist small entities in complying with the rule, 
and shall designate such publications as ``small entity compliance 
guides.'' The agency shall explain the actions a small entity is 
required to take to comply with a rule or group of rules. As part of 
this rulemaking process, a small entity compliance guide was prepared. 
The guide will be sent to all holders of permits issued for the MSB 
fisheries. In addition, copies of this final rule and guide (i.e., 
permit holder letter) are available from the Regional Administrator and 
are also available from NMFS, Northeast Region (see ADDRESSES).

List of Subjects in 50 CFR Part 648

    Fisheries, Fishing, Recordkeeping and reporting requirements.

    Dated: January 24, 2007.
William T. Hogarth,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

0
For the reasons set out in the preamble, 50 CFR part 648 is amended as 
follows:

PART 648--FISHERIES OF THE NORTHEASTERN UNITED STATES

0
1. The authority citation for part 648 continues to read as follows:

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

0
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.
* * * * *

0
3. Section 648.21 is amended as follows:
0
a. Paragraphs (b)(1) introductory text, (b)(2)(i), and (b)(2)(iii) 
introductory text are revised;
0
b. Paragraphs (c) introductory text and (c)(3) are revised;
0
c. Paragraph (f)(3) is removed and paragraphs (f)(1) and (f)(2) are 
revised; and
0
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.
* * * * *

[[Page 4217]]

    (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 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
------------------------------------------------------------------------

    (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:
* * * * *

0
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.
[FR Doc. E7-1445 Filed 1-29-07; 8:45 am]
BILLING CODE 3510-22-S