[Federal Register Volume 72, Number 45 (Thursday, March 8, 2007)]
[Proposed Rules]
[Pages 10480-10488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-1085]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 635

[Docket No. 070302052-7052-01; I.D. 021307B]
RIN 0648-AV09


Atlantic Highly Migratory Species; Atlantic Commercial Shark 
Management Measures

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

ACTION: Proposed rule; request for comments.

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SUMMARY: This proposed rule would establish the 2007 second and third 
trimester season quotas for large coastal sharks (LCS), small coastal 
sharks (SCS), and pelagic sharks based on over- or underharvests from 
the 2006 second and third trimester seasons. In addition, this rule 
proposes the opening and closing dates for the LCS fishery based on 
adjustments to the trimester quotas. The intended effect of these 
proposed actions is to provide advance notice of quotas and season 
dates for the Atlantic commercial shark fishery.

DATES: Written comments will be accepted until March 28, 2007.
    Public hearings will be held from 6-8 p.m. on March 22 and March 
28, 2007.

ADDRESSES: Written comments on the proposed rule may be submitted to 
LeAnn Southward Hogan, Highly Migratory Species Management Division 
via:
     E-mail: [email protected].
     Mail: 1315 East-West Highway, Silver Spring, MD 20910. 
Please mark on the outside of the envelope ``Comments on Proposed Rule 
for 2007 2nd & 3rd Trimester Season Lengths and Quotas.''
     Fax: 301-713-1917.
     Federal e-Rulemaking portal: http://www.regulations.gov. 
Include in the subject line the following identifier: I.D. 021307B.
    The hearing locations are:
    1. March 22, 2007 from 6-8 p.m. Orlando Public Library, 101 E. 
Central Blvd., Orlando, FL 32801.
    2. March 28, 2007 from 6-8 p.m. Town Hall, 407 Budleigh Street, 
Manteo, NC 27954.
    Copies of the draft Environmental Assessment (EA) and other 
relevant document are available from the HMS website (http://
www.nmfs.noaa.gov/sfa/hms/), or by contacting LeAnn Southward Hogan 
(see FOR FURTHER INFORMATION CONTACT).

FOR FURTHER INFORMATION CONTACT: LeAnn Southward Hogan or Karyl 
Brewster-Geisz by phone: 301-713-2347 or by fax: 301-713-1917.

SUPPLEMENTARY INFORMATION:

Background

    The Atlantic shark fishery is managed under the authority of the 
Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act). NMFS recently finalized a Consolidated Highly Migratory 
Species (HMS) Fishery Management Plan (FMP) that consolidated and 
replaced previous FMPs for Atlantic Billfish and Atlantic Tunas, 
Swordfish, and Sharks. The HMS FMP is implemented by regulations at 50 
CFR part 635.
    Currently, the Atlantic shark annual quotas, with the exception of 
pelagic sharks, are split among three regions based on historic 
landings (1999-2003). Consistent with 50 CFR 635.27(b)(1)(iii) and 
(iv), the annual LCS quota (1,017 mt dw) is split among the three 
regions as follows: 52 percent to the Gulf of Mexico, 41 percent to the 
South Atlantic, and 7 percent to the North Atlantic. The annual SCS 
quota (454 mt dw) is split among the three regions as follows: 10 
percent to the Gulf of Mexico, 87 percent to the South Atlantic, and 3 
percent to the North Atlantic. The regional quotas for LCS and SCS are 
divided equally between the trimester seasons in the South Atlantic and 
the Gulf of Mexico, and according to historical landings in the North 
Atlantic.

[[Page 10481]]

    Consistent with 50 CFR 635.27(b)(1)(vi), any over- or underharvest 
in a given region from the 2006 second and third trimester seasons will 
be carried over to the 2007 second and third trimester seasons in that 
region.

Second and Third Trimester 2006 Landings

    Shark landings data for the second and third trimesters of 2006 are 
provided in Table 1. As a result of the over- and underharvests that 
occurred in the second and third trimester seasons of 2006, NMFS 
analyzed alternatives to adjust the 2007 second and third trimester 
seasons and quotas for the LCS and SCS fishery.

     Table 1- Landings in metric tons dressed weight (mt dw) for the 2nd and 3rd trimester seasons of 2006.
                 Landings estimates are based on dealer reports received as of January 16, 2007.
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                                          Second Trimester Season 2006
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                                                                                   Estimated      Percent Quota
  Species Group (Annual Quota)        Region (Allocation)       Quota (mt dw)       Landings          Taken
----------------------------------------------------------------------------------------------------------------
Large Coastal Sharks (1,017)      Gulf of Mexico (52 %)       201.1             343.9            171%
                                 -------------------------------------------------------------------------------
                                  South Atlantic (41 %)       151.7             207.4            136.7%
                                 -------------------------------------------------------------------------------
                                  North Atlantic (7 %)        66.3              59.9             90.3%
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Small Coastal Sharks (454)        Gulf of Mexico (10 %)       38.9              80.1             205.9%
                                 -------------------------------------------------------------------------------
                                  South Atlantic (87 %)       333.5             74.8             22.4%
                                 -------------------------------------------------------------------------------
                                  North Atlantic (3 %)        35.9              0                0
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Blue Sharks (273)                 No regional quotas          91                0.2              0.2%
---------------------------------                            ---------------------------------------------------
Porbeagle sharks (92)             ..........................  30.7              0.3              1.0%
---------------------------------                            ---------------------------------------------------
Pelagic Sharks other than those   ..........................  162.7             24.5             15.1%
 above(488)
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                                           Third Trimester Season 2006
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                                                                                   Estimated      Percent Quota
  Species Group (Annual Quota)        Region (Allocation)       Quota (mt dw)       Landings          Taken
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Large Coastal Sharks (1,017)      Gulf of Mexico (52 %)       225.6             351.8            155.9%
                                 -------------------------------------------------------------------------------
                                  South Atlantic (41 %)       50.3              108.7            216.1%
                                 -------------------------------------------------------------------------------
                                  North Atlantic (7 %)        3.3               5.8              175.8%
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Small Coastal Sharks (454)        Gulf of Mexico (10 %)       30.8              23               74.7%
                                 -------------------------------------------------------------------------------
                                  South Atlantic (87 %)       263.7             40.3             15.3%
                                 -------------------------------------------------------------------------------
                                  North Atlantic (3 %)        28.2              0                0%
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Blue Sharks (273)                 No regional quotas          91                0                0.0%
---------------------------------                            ---------------------------------------------------
Porbeagle sharks(92)              ..........................  30.7              0.8              2.6%
---------------------------------                            ---------------------------------------------------
Pelagic Sharks other than those   ..........................  162.7             21.4             13.2%
 above(488)
----------------------------------------------------------------------------------------------------------------

Quota Adjustments in the LCS and SCS Fishery

    The Agency conducted an Environmental Assessment (EA) to analyze 
three LCS and four SCS alternatives for adjusting regional trimester 
quotas and other management measures based on the over- and 
underharvests that occurred in the LCS and SCS fisheries in the South 
Atlantic and Gulf of Mexico regions during the 2006 second and third 
trimester seasons.
    These measures are necessary to ensure that over- and underharvests 
from 2006 are accounted for and any impacts are analyzed. The base 
quotas established in Amendment 1 to the FMP for Atlantic Tunas, 
Swordfish, and Sharks and maintained in the Consolidated HMS FMP would 
not be affected by this rulemaking. Rather, the base quotas would be 
changed via an amendment to the Consolidated HMS FMP. The Agency is 
preparing, in a separate action, an amendment to the 2006 Consolidated 
HMS FMP to implement management measures particularly for sandbar, 
dusky, and porbeagle sharks that address the results of recent stock 
assessments, including the need for rebuilding plans and other 
modifications to the management program. Therefore, the Agency is not 
proposing any modifications to fishing seasons or LCS quotas beyond the 
second and third trimesters of 2007, at this time.

[[Page 10482]]

LCS Quota Adjustments

    The current regulations state that NMFS will adjust the next year's 
fishing season (2007) and quotas for LCS to reflect actual landings 
during the previous fishing season (2006) in any particular region. Due 
to the extensive overharvest of LCS in the 2006 second and third 
trimester seasons in the South Atlantic and Gulf of Mexico regions, 
limited quota would be available resulting in a short season in the 
South Atlantic region and no season in the Gulf of Mexico region for 
the 2007 second trimester. If NMFS were to not change the current 
regulations, then in the 2007 third trimester, both regions would 
experience short seasons. Moreover, under the current regulatory 
scheme, NMFS would open the mid-Atlantic shark closed area from July 6 
- 20, 2007. As described in the rulemaking for the 2007 first trimester 
(71 FR 75122; December 14, 2006), re-opening the mid-Atlantic shark 
closed area in the month of July would likely have slightly negative 
ecological impacts because potential interactions with protected 
resources and other bycatch would be increased due to the displacement 
of fishing effort to an area that had been previously closed. Also, 
under the current regulatory scheme, NMFS would open the North Atlantic 
region for the month of July in the 2007 second trimester and close 
this region during the 2007 third trimester season due to overharvest 
during the 2006 third trimester season.
    Under this proposed rule, NMFS would combine the second trimester 
season quota with the third trimester season quota in the South 
Atlantic and Gulf of Mexico regions. NMFS would open the South Atlantic 
region for six weeks beginning August 1, 2007. This would close the 
entire South Atlantic region for the month of July and maintain any 
ecological benefits of the mid-Atlantic shark closure. NMFS is 
proposing to delay the start of the merged seasons until August 1, 
2007, to allow for a longer season than was previously allowed, based 
on slower catch rates in August versus July. NMFS believes that an 
August start date would still provide opportunities for all fishermen 
in the South Atlantic to fish for LCS. Under this proposed rule, NMFS 
would open the Gulf of Mexico region for three weeks beginning 
September 1, 2007. This accommodates comments received by NMFS stating 
the desire for the Gulf of Mexico region to be open at a different time 
than the South Atlantic region. The proposed rule would provide for 
longer seasons than the current regulations thereby increasing fishing 
opportunities consistent with available quota. Under this proposed 
rule, NMFS would keep in place the North Atlantic regional quotas and 
opening dates. Under alternatives 2 and 3, the LCS season would be open 
at different times in different regions, which would prevent market 
gluts.

SCS Quota Adjustments

    Under current regulations, NMFS would subtract the overharvest 
accrued (41.2 mt dw) in the Gulf of Mexico region during the 2006 
second trimester season from the baseline quota (15.1 mt dw) for this 
region during the 2007 second trimester. Because the overharvest was 
greater than the baseline quota, NMFS would close the SCS fishery in 
the Gulf of Mexico during the 2007 second trimester. Under this 
proposed rule, NMFS would open the North Atlantic and South Atlantic 
regions on May 1, 2007, and would keep these regions open as long as 
quota was available in each region. Under existing regulations, NMFS 
would close the LCS and SCS commercial fishery in the Gulf of Mexico 
for the entire second trimester of 2007.
    Under 635.27(b)(1)(vi)(A)(1), NMFS may transfer up to 10 percent of 
the underharvested quota from the South Atlantic region to the Gulf of 
Mexico region. However, this would result in a Gulf of Mexico quota of 
-0.23 mt dw and was not further analyzed because it does not address 
the entire overharvest that occurred in the Gulf of Mexico region and 
would result in the same impacts as the existing regulations.
    Under this proposed rule, NMFS would change the SCS regional quota 
percentages in the South Atlantic and Gulf of Mexico regions due to 
recent overharvests in the Gulf of Mexico region and continued 
underharvest of the available quota in the South Atlantic region. 
Currently, the regional quota percentages are 87 percent in the South 
Atlantic region and 10 percent in the Gulf of Mexico region, which 
gives each of the regions 395 mt dw, and 45.4 mt dw, of the base quota, 
respectively. The change in regional quota percentages would allocate 
the SCS base quota of 454 mt dw based on recent landings in both the 
South Atlantic and Gulf of Mexico regions and split the available quota 
between the two regions. Therefore, under this proposed rule, the 2007 
regional SCS quotas would be 3 percent in the North Atlantic (13.6 mt 
dw, 29,983 lb dw), 49 percent (222.5 mt dw, 490,524 lb dw) in the South 
Atlantic, and 48 percent (217.9 mt dw, 480,382 lb dw) in the Gulf of 
Mexico. The rule also includes a quota transfer, which would cover the 
41.2 mt dw overharvest of SCS that occurred in the Gulf of Mexico 
region during 2006. Redistributing the quota among regions would more 
equally allocate the total SCS quota, and is expected to have little 
impact on SCS mortality in each respective region or status of SCS 
stocks in general. As the total SCS quota has to date never been fully 
harvested, the impacts of a slight increase in fishing effort would not 
significantly affect these stocks, and should prevent future 
overharvest in the Gulf of Mexico region while not leading to an 
overharvest in the South Atlantic region.

Annual Landings Quotas

    Pursuant to Amendment 1 to the FMP for Atlantic Tunas, Swordfish, 
and Sharks, and the Final Consolidated HMS FMP, the 2007 annual base 
landings quotas are 1,017 mt dw (2,242,078 lb dw) for LCS and 454 mt dw 
(1,000,888.4 lb dw) for SCS. The 2007 quota levels for pelagic, blue, 
and porbeagle sharks are 488 mt dw (1,075,844.8 lb dw), 273 mt dw 
(601,855.8 lb dw), and 92 mt dw (202,823.2 lb dw), respectively. This 
proposed rule does not propose any changes to these overall base 
landings quotas. Table 2 describes the proposed adjusted quotas for 
LCS, and Table 3 describes the proposed adjusted quotas for SCS and 
pelagic sharks for the various regions (if applicable) for the second 
and third trimester seasons of 2007 adjusted for over- and 
underharvests that occurred during the second and third trimester 
seasons of 2006 (Table 1).
    Existing regulations do not allow underharvests of pelagic sharks 
to be carried forward to the next fishing management period. As of 
January 16, 2007, approximately 47.2 mt dw had been reported landed in 
the 2006 second and third trimester fishing seasons in total for 
pelagic, blue, and porbeagle sharks combined. Thus, the pelagic shark 
quota does not need to be reduced consistent with the current 
regulations 50 CFR 635.27(b)(1)(vi)(B). The 2007 second and third 
trimester seasons quotas for pelagic, blue, and porbeagle sharks are 
proposed to be 162.7 mt dw (358,688 lb dw), 91 mt dw (200,619 lb dw), 
and 30.7 mt dw (67,681 lb dw), respectively.

Proposed Regional Quotas for LCS

    Consistent with 50 CFR 635.27(b)(1)(iii), the annual LCS quota 
(1,017 mt dw) is split among the regions as follows: 52 percent to the 
Gulf of Mexico, 41 percent to the South Atlantic, and 7 percent to the 
North Atlantic.

[[Page 10483]]

    Consistent with 50 CFR 635.27(b)(1)(vi)(A)(3), the LCS quota for 
the Gulf of Mexico and South Atlantic regions is further split equally 
(33.3 percent/season) between the three trimester fishing seasons, and 
the quota for the North Atlantic is further split according to 
historical landings of 4, 88, and 8 percent for the first, second, and 
third trimester seasons, respectively.
    Under the proposed rule, the South Atlantic LCS regional quota for 
the 2007 second trimester (83.2 mt dw) would be combined with the 2007 
third trimester quota (80.5 mt dw) for a total quota of 163.7 mt dw 
(360,893 lb dw). Under this rule, the Gulf of Mexico regional LCS quota 
for the 2007 second trimester (33.2 mt dw) would be merged with the 
2007 third trimester quota (49.9 mt dw) for a total of 83.1 mt dw 
(183,202 lb dw). The North Atlantic LCS quota for the 2007 second 
trimester would be 69.0 mt dw (152,117 lb dw) and there would be a 
closure in the North Atlantic region during the 2007 third season 
(Table 2).

Proposed Regional Quotas for SCS

    Consistent with 50 CFR 635.27(b)(1)(iv), the annual SCS quota (454 
mt dw) is split among the regions as follows: 10 percent to the Gulf of 
Mexico region, 87 percent to the South Atlantic region and 3 percent to 
the North Atlantic region.
    Also consistent with 50 CFR 635.27 (b)(1)(vi)(A)(3), the SCS quota 
for the Gulf of Mexico and South Atlantic regions is further split 
equally (33.3 percent/season) between the three trimester fishing 
seasons in each of the regions, and the quota for the North Atlantic is 
further split of 4, 88 and 8 percent for the first, second, and third 
trimester seasons, respectively.
    This rule proposes a change to the SCS regional quota percentages 
in the South Atlantic and Gulf of Mexico regions for 2007 and in the 
future. The new SCS quota percentage allocations would be 49 percent in 
the South Atlantic and 48 percent in the Gulf of Mexico. This change 
would give the South Atlantic an 2007 annual base quota of 222.5 mt dw 
(490,524 lb dw) (454 mt dw x .49%) and a trimester quota of 74.1 mt dw 
(163,361 lb dw) (222.5 mt dw x .333). The Gulf of Mexico would have an 
annual base quota of 217.9 mt dw (480,382 lb dw) (454 mt dw x .48%) and 
a trimester quota of 72.6 mt dw (160,054 lb dw) (217.9 mt dw x .333).

Proposed Fishing Season Notification for the Second and Third Trimester 
Seasons 2007

    The 2007 LCS second trimester season in the North Atlantic region 
is proposed to open on July 6, 2007, and would close on July 31, 2007, 
at ll:30 pm local time. The 2007 third trimester in the North Atlantic 
region would be closed (Table 2).
    The 2007 LCS fishery in the South Atlantic would have a merged 
second and third trimester season that is proposed to open on August 1, 
2007, and would close September 15, 2007, at 11:30 pm local time (Table 
2). NMFS is proposing to delay the start of the merged season until 
August 1, 2007, to allow for a longer season based on slower catch 
rates in August versus July.
    The 2007 LCS fishery in the Gulf of Mexico would also have a merged 
second and third trimester season that is proposed to open on September 
1, 2007, and would close on September 22, 2007, at 11:30 p.m. local 
time (Table 2). NMFS is proposing to delay the start of the merged 
season until September 1, 2007, to accommodate comments received by 
NMFS stating the desire for the South Atlantic region to be open at a 
different time than the Gulf of Mexico region. The September 1, 2007, 
open date would also allow for a longer season based on slower catch 
rates in September versus July.
    The second and third trimester fishing seasons of 2007 for SCS, 
pelagic sharks, blue sharks, and porbeagle sharks in the northwestern 
Atlantic Ocean, including the Gulf of Mexico and the Caribbean Sea, are 
proposed to open on May 1, 2007, and September 1, 2007, respectively 
(Table 3). When quotas are projected to be reached for the SCS, 
pelagic, blue, or porbeagle sharks, the Assistant Administrator (AA) 
will file notification of closures at the Office of the Federal 
Register at least 14 days before the effective date, consistent with 50 
CFR 635.28(b)(2).

        Table 2. LCS Proposed season lengths and quotas for the second and third trimester seasons of 2007
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                                 Proposed merged 2\nd\ and   Proposed merged 2\nd\ &
              LCS                 3\rd\ trimester opening    3\rd\ trimester Closing    Proposed merged 2\nd\ &
                                           dates                      Dates              3\rd\ trimester Quotas
----------------------------------------------------------------------------------------------------------------
South Atlantic                   August 1, 2007             September 15, 2007         163.70 mt dw
                                                                                       360,893 lb dw
----------------------------------------------------------------------------------------------------------------
Gulf of Mexico                   September 1, 2007          September 22, 2007         83.1 mt dw
                                                                                       183,202 lb dw
----------------------------------------------------------------------------------------------------------------
North Atlantic                   July 6, 2007               July 31, 2007              69.0 mt dw
                                                                                       152,117 lb d
                                --------------------------------------------------------------------------------
                                 Closed 3\rd\ Season        Closed 3\rd\ Season        CLOSED
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Table 3. SCS and Pelagic sharks proposed season lengths and quotas for the second and third trimester seasons of
                                                      2007
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                                                                                        2007 2\nd\ Tri. Adjusted
      2007 2\nd\ Trimester             Opening Dates              Closing Dates                  Quota
----------------------------------------------------------------------------------------------------------------
SCS South Atlantic (49%)         May 1, 2007                To be determined as        291.6 mt dw
                                                             necessary                 642,861 lb dw
----------------------------------------------------------------------------------------------------------------
SCS Gulf of Mexico (48%)         May 1, 2007                To be determined as        72.6 mt dw
                                                             necessary                 160,054 lb dw
----------------------------------------------------------------------------------------------------------------
SCS North Atlantic (3%)          May 1, 2007                To be determined as        36.2 mt dw
                                                             necessary                 79,807 ld dw
----------------------------------------------------------------------------------------------------------------

[[Page 10484]]

 
Blue Sharks                      May 1, 2007                To be determined as        91.0 mt dw
                                                             necessary                 200,619 lb dw
----------------------------------------------------------------------------------------------------------------
Porbeagle                        May 1, 2007                To be determined as        30.7 mt dw
                                                             necessary                 67, 681 lb dw
----------------------------------------------------------------------------------------------------------------
Pelagic Sharks                   May 1, 2007                To be determined as        162.7 mt dw
                                                             necessary                 358,688 lb dw
----------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
                                                                                        2007 3\rd\ Tri. Adjusted
       2007 3rd Trimester              Opening Dates              Closing Dates                  Quota
----------------------------------------------------------------------------------------------------------------
SCS South Atlantic (49%)         September 1, 2007          To be determined as        297.5 mt dw
                                                             necessary                 655,869 lb dw
----------------------------------------------------------------------------------------------------------------
SCS Gulf of Mexico (48%)         September 1, 2007          To be determined as        80.4 mt dw
                                                             necessary                 177,250 lb dw
----------------------------------------------------------------------------------------------------------------
SCS North Atlantic (3%)          September 1, 2007          To be determined as        29.4 mt dw
                                                             necessary                 64,815 lb dw
----------------------------------------------------------------------------------------------------------------
Blue Sharks                      September 1, 2007          To be determined as        91.0 mt dw
                                                             necessary                 200,619 lb dw
----------------------------------------------------------------------------------------------------------------
Porbeagle                        September 1, 2007          To be determined as        30.7 mt dw
                                                             necessary                 67, 681 lb dw
----------------------------------------------------------------------------------------------------------------
Pelagic Sharks                   September 1, 2007          To be determined as        162.7 mt dw
                                                             necessary                 358,688 lb dw
----------------------------------------------------------------------------------------------------------------

Request for Comments

    Comments on this proposed rule may be submitted at public hearings, 
via email, mail, or fax by March 28, 2007. NMFS will hold two public 
hearings to receive comments from fishery participants and other 
members of the public regarding this proposed rule. These hearings will 
be physically accessible to people with disabilities. Request for sign 
language interpretation or other auxiliary aids should be directed to 
LeAnn Southward Hogan at (301) 713-2347 at least 5 days prior to the 
hearing date. The public is reminded that NMFS expects participants at 
the public hearings to conduct themselves appropriately. At the 
beginning of each meeting, a representative of NMFS will explain the 
ground rules (e.g., alcohol is prohibited from the hearing room; 
attendees will be called to give their comments in the order in which 
they register to speak; the attendees should not interrupt one 
another). The NMFS representative will attempt to structure the meeting 
so that all attending member of the public will be able to comment, if 
they so choose, regardless of the controversial nature of the 
subject(s). Attendees are expected to respect the ground rules, and, if 
they do no, they will be asked to leave the meeting. For individuals 
unable to attend a hearing, NMFS also solicits written comments on this 
proposed rule (see DATES and ADDRESSES).

Classification

    NMFS has preliminarily determined that this action is consistent 
with section 304(b)(1) of the Magnuson-Stevens Fishery Conservation and 
Management Act, including the National Standards, and other applicable 
law.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    In compliance with Section 603 of the Regulatory Flexibility Act, 
an Initial Regulatory Flexibility Analysis was prepared for this rule. 
The IRFA analyzes the anticipated economic impacts of the preferred 
actions and any significant alternatives to the proposed rule that 
could minimize economic impacts on small entities. A summary of the 
IRFA is below. The full IRFA and analysis of economic and ecological 
impacts, are available from NMFS (see ADDRESSES).
    In compliance with section 603 (b)(1) of the Regulatory Flexibility 
Act, the purpose of this proposed rulemaking is, consistent with the 
Magnuson-Stevens Act, to adjust the LCS and SCS regional and trimester 
quotas and propose season lengths for LCS, SCS, and pelagic sharks for 
the second and third trimesters of 2007 based on under- and 
overharvests that occurred during the second and third trimesters of 
2006. This rule does not change the overall annual base quotas.
    In compliance with section 603 (b)(2) of the Regulatory Flexibility 
Act, the objective of the proposed rulemaking is, to ensure that the 
season lengths and quotas for the second and third trimester of 2007 
for LCS, SCS, and pelagic sharks are in place by the end of the first 
trimester of 2007 consistent with the regulations established in the 
2003 Amendment to the 1999 FMP for Atlantic Tunas, Swordfish and 
Sharks.
    Section 603 (b)(3) requires Agencies to provide an estimate of the 
number of small entities to which the rule would apply. This rule could 
directly affect commercial shark fishermen on the Atlantic Ocean in the 
United States. There are approximately 549 (235 directed and 314 
incidental) shark permit holders. Additionally, approximately 253 
commercial shark dealers could be indirectly affected by this proposed 
rule. All of these permit holders and dealers are considered small 
entities according to the Small Business Administration=s standard for 
defining a small entity. Other small entities involved in HMS fisheries 
such as processors, bait houses, and gear manufacturers might also be 
indirectly affected by the proposed regulations.

[[Page 10485]]

    This proposed rule does not contain any new reporting, 
recordkeeping, or other compliance requirements (5 U.S.C. 603 (b)(4)). 
Similarly, this proposed rule would not conflict, duplicate, or overlap 
with other relevant Federal rules (5 U.S.C. 603(b)(5)).
    One of the requirements of an IRFA, under Section 603 of the 
Regulatory Flexibility Act, is to describe any alternatives to the 
proposed rule that accomplish the stated objectives and that minimize 
any significant economic impacts (5 U.S.C. 603 (c)). Additionally, the 
Regulatory Flexibility Act (5 U.S.C. 603 (c)(1)-(4)) lists four 
categories for alternatives that must be considered. These categories 
are: (1) establishment of differing compliance or reporting 
requirements or timetables that take into account the resources 
available to small entities; (2) clarification, consolidation, or 
simplification of compliance and reporting requirements under the rule 
for such small entities; (3) use of performance rather than design 
standards; and (4) exemptions from coverage for small entities.
    In order to meet the objectives of this proposed rule, consistent 
with Magunson-Stevens Act, NMFS cannot exempt small entities or change 
the reporting requirements only for small entities. Thus, there are no 
alternatives discussed that fall under the first and fourth categories 
described above. In addition, none of the alternatives considered would 
result in additional reporting or compliance requirements (category two 
above). NMFS does not know of any performance or design standards that 
would satisfy the aforementioned objectives of this rulemaking while, 
concurrently, complying with the Magnuson-Stevens Act. As described 
below, NMFS analyzed seven different alternatives in this proposed 
rulemaking and provides justification for selection of the preferred 
alternative to achieve the desired objective.
    The alternatives include: maintain existing procedures for LCS 
quota management (alternative 1, No Action), merge the second trimester 
season quota with the third trimester season quota in the South 
Atlantic and open the combined season August 1, 2007 (alternative 2), 
merge the second trimester season quota with the third trimester season 
quota in the Gulf of Mexico region and open the combined season 
September 1, 2007 (alternative 3), maintain existing procedures for SCS 
quota management (alternative 4, No Action), transfer a portion of the 
South Atlantic's regional 2007 second trimester SCS underharvest to the 
Gulf of Mexico region (alternative 5), transfer a portion of the South 
Atlantic's regional 2007 second trimester SCS underharvest to the Gulf 
of Mexico region as well as give the Gulf of Mexico region additional 
SCS quota for the 2007 second trimester season (alternative 6), and 
reallocate the SCS regional quota percentages in the South Atlantic 
region from 87 percent to 49 percent and in the Gulf of Mexico region 
from 10 percent to 48 percent and transfer a portion of the South 
Atlantic's regional 2007 second trimester SCS underharvest to the Gulf 
of Mexico region (alternative 7). Merging the second and third 
trimester seasons for LCS for both the South Atlantic (alternative 2) 
and the Gulf of Mexico (alternative 3) regions and also reallocating 
the SCS regional quota percentages between the South Atlantic and Gulf 
of Mexico regions for the second and third trimesters while also 
transferring a portion of the South Atlantic's regional second 
trimester underharvest to the Gulf of Mexico (alternative 7) are the 
preferred alternatives.

Alternatives Considered for LCS

    Alternative 1 is considered the no action alternative since it 
would maintain existing procedures for addressing regional trimester 
over and underharvests of LCS when establishing the regional quotas and 
seasons for the second and third trimesters of 2007 and it would also 
open the mid Atlantic shark closed area in July, subject to available 
quota for the second trimester in 2007. This alternative is not 
preferred in part because it would result in negative economic impacts 
for the South Atlantic region and Gulf of Mexico region, compared to 
the preferred alternative.
    The no action alternative does not create any new economic burdens 
on the shark commercial industry that was not included in previous 
rulemaking. Regardless, the unexpected magnitude of the 2006 second 
trimester overharvest would result in no commercial fishing for LCS in 
the entire Gulf of Mexico region during the second trimester of 2007 
since the available adjusted quota would be taken in approximately two 
days. Furthermore, overharvest during the second trimester in 2006 in 
the South Atlantic region would result in a reduced second trimester 
quota of 83.2 mt dw and therefore the fishing season would be adjusted 
and shortened to last only from July 6 to July 20, 2007.
    If not for the overharvest in 2006, the second trimester quota 
allocation would have been 138.9 mt of LCS in the South Atlantic 
region. Instead, the adjusted quota under this alternative would be 
83.2 mt dw, which is 55.7 mt dw less than it would have been under the 
base quota allocation. To estimate the value of changes in revenues 
from the 2007 available quota, the median ex vessel prices from 2003 to 
2006 for each region reported in Table 6.6 of the draft EA were used to 
forecast 2007 shark prices since this multi year average smoothes out 
temporary market volatility. Using a median ex vessel price of $0.48 
per pound dressed weight of LCS and $12.28 per pound for shark fin 
reported via HMS dealer reports from 2003 to 2006 for the South 
Atlantic region and adjusted for inflation, the value of the 55.7 mt dw 
reduction from the baseline quote allocation would have been 
approximately $55,996 for LCS flesh (95 percent of the quota weight) 
and $75,398 for shark fins (based on the 5 percent shark fin to carcass 
regulation). Therefore, the 2006 overharvest is estimated to have a 
direct revenue impact on South Atlantic regional commercial shark 
fishing activity of approximately $131,393. However, it should be noted 
that due to the overharvest, fishermen received more revenue in the 
2006 second trimester than previously expected. Since the actual prices 
received for the 2006 second trimester are available, those prices were 
used to calculate the ``extra'' revenues generated from the overharvest 
in the second trimester of 2006. Using the median ex vessel prices for 
the second trimester of 2006 of $0.40 and $10.00 for LCS flesh and 
shark fins, respectively, for the South Atlantic region the estimated 
revenue for the second trimester in 2006 from the 55.7 mt dw in 
overharvest was $108,162. Due to this extra revenue in 2006, a 
shortened second trimester for 2007 would result in disrupted revenue 
flows and result in negative economic impacts.
    If not for the overharvest in the second trimester of 2006 in the 
Gulf of Mexico region, the second trimester quota available would have 
been 176.1 mt of LCS in the Gulf of Mexico region. However, due to the 
overharvest, the adjusted quota is 33.2 mt for LCS. Because of the 
small size of this quota, no fishing season is feasible due to safety 
at sea concerns and potential derby fishing conditions. Using a median 
ex vessel price of $0.44 for LCS and $17.05 for shark fin reported HMS 
dealer reports from 2003 to 2006 for the Gulf of Mexico region and 
adjusted for inflation, the value of the 176.1 mt dw baseline quota for 
the second trimester of 2007 is approximately $162,282 for LCS flesh 
(95 percent of the quota weight) and $330,969 for shark fins (based on 
the 5 percent shark fin to

[[Page 10486]]

carcass regulation). Therefore, the 2006 overharvest is estimated to 
have a direct revenue impact on Gulf of Mexico regional commercial 
shark fishing activity of approximately $493,251. Using the median ex 
vessel prices for the second trimester of 2006 of $0.40 and $13.00 for 
LCS flesh and shark fins, respectively, for the Gulf of Mexico region, 
the estimated revenue for the second trimester in 2006 from the 142.9 
mt dw (176.1 33.2 mt dw) in overharvest was $324,491. However, a 
closure during the second trimester of 2007 would result in disrupted 
revenue flows and result in negative economic impacts.
    The quota for the second trimester of 2007 is not impacted by 
overharvests in the North Atlantic region. However, in the 2007 third 
trimester, the North Atlantic region would be closed to fishing because 
of overharvest in the third trimester of 2006. The base quota 
allocation for the third trimester would have been 5.7 mt dw if not for 
the overharvest. Using an average between the median ex vessel price in 
the South Atlantic and the Gulf of Mexico regions from 2003 to 2006 
adjusted for inflation, the approximate value of this quota allocation 
would have been $14,709. This minor economic impact is offset by the 
extra revenue received in 2006 as a result of the 2.5 mt dw overharvest 
in the third trimester worth $6,451. However, it should also be noted 
that the third season was closed in 2006.
    During the third trimester of 2006, there was also an overharvest 
in the South Atlantic region. This resulted in the base quota 
allocation being reduced from 138.9 mt dw to an adjusted quota of 80.5 
mt dw for the third trimester. Using a similar calculation as above, 
the economic impact of the overharvest would be a reduced third quarter 
value of revenues of approximately $137,762. However, it should be 
noted that fishermen received revenue sooner under the 2006 third 
trimester overharvest than they normally would have received. Using the 
median ex vessel prices for the third trimester of 2006 of $0.45 and 
$8.00 for LCS flesh and shark fins, respectively for the South Atlantic 
region, the estimated revenue for the third trimester in 2006 from the 
58.4 mt in overharvest was $100,425.
    During the third trimester of 2006, there was also an overharvest 
in the Gulf of Mexico region. This resulted in the base quota 
allocation being reduced from 176.1 mt dw to an adjusted quota of 49.9 
mt dw for the third trimester. Using a similar calculation as above, 
the economic impact of the overharvest would be a reduced third quarter 
value of revenues of approximately $353,482. However, it should be 
noted thatdue to the overharvest, fishermen received more revenue in 
the 2006 third trimester than previously expected. Using the median ex 
vessel prices for the third trimester of 2006 of $0.40 and $17.00 for 
LCS flesh and shark fins, respectively for the Gulf of Mexico region, 
the estimated revenue for the third trimester in 2006 from the 126.2 mt 
in overharvest was $342,214. Despite this extra revenue in 2006, a 
shortened third trimester for 2007 would result in disrupted revenue 
flows and result in negative economic impacts.
    Overall, the economic impact of reduced 2007 LCS quota for the 
South Atlantic, Gulf of Mexico, and North Atlantic regions for the 
second and third trimesters of 2007 would result in a total economic 
impact of $1,130,597 in reduced revenues. However, this is partially 
offset by the extra revenues generated in the second and third 
trimesters of 2006 estimated to be worth $881,644. Some of the impacts 
from these reduced revenues might be mitigated somewhat for vessels 
that can fish in other regions or fisheries. However, these 
opportunities will likely be limited and result in additional costs 
associated with adjusting current fishing practices.
    Alternative 2, the preferred alternative, which would merge the 
second trimester season in the South Atlantic region with the third 
trimester season quota in the South Atlantic region, could minimize the 
economic costs associated with the South Atlantic regional overharvest. 
The 83.2 mt dw adjusted quota for the second trimester would be 
combined with the 80.5 mt dw adjusted quota for the third trimester in 
the South Atlantic to provide a combined 163.7 mt dw season starting on 
August 1, 2007, that is proposed to last until September 15, 2007.
    There does not appear to be any significant seasonality to LCS and 
shark fin ex vessel prices. Therefore, revenues under this alternative 
would likely be at least the same as having two separate seasons. The 
combined seasons would provide for a total of six weeks to fish the LCS 
quota in the South Atlantic region versus only five weeks (split into 
two seasons) under the no action alternative. This would afford more 
flexibility in addressing market conditions for LCS, and thus 
potentially allow for greater profits. However, there could be negative 
impacts on business planning as a result of the season starting in 
August versus the expected July start date. Fishing operations may face 
cash flow problems covering their fixed costs as they wait for the 
later starting combined season, unless they are able to generate cash 
flows in other fisheries in the interim. Starting the season in August 
essentially extends the Mid Atlantic closure to the whole region from 
July to August. This could have negative economic impacts, especially 
since catch rates have been historically higher in July than in August. 
The positive aspects of merging the two seasons include reduced 
operating costs since fishermen would only need to prepare the vessel 
once instead of twice and they are more likely to have a viable market 
for LCS given the season would be longer.
    Alternative 3 is similar to Alternative 2 in that it would merge 
the second trimester season with the third trimester season quota, but 
is instead for the Gulf of Mexico region. The merged season would 
combine the second trimester season quota of 33.2 mt dw with the third 
trimester season quota of 49.9 mt dw to create a three week long season 
starting September 1, 2007, that would have 83.1 mt dw of quota. This 
preferred alternative would have the benefit of extending the third 
season by one week versus under Alternative 1. Since Alternative 3 has 
the same start date as Alternative 1, there would not be any impact on 
that portion of the Gulf of Mexico region. Alternative 3 also allows 
the 33.2 mt dw quota of the second season to be fished. Under 
Alternative 1, the season for that 33.2 mt dw of quota would have been 
closed. Using a median ex vessel price of $0.44 for LCS and $17.05 for 
shark fin reported HMS dealer reports from 2003 to 2006 for the Gulf of 
Mexico region and adjusted for inflation, the value of harvesting this 
33.2 mt dw of quota would be approximately $92,992 in revenue. In 
addition, by providing for a three week combined fishing season, this 
alternative would afford more flexibility in addressing market 
conditions for LCS.

Alternatives Considered for SCS

    Alternative 4 is considered the no action alternative since it 
would maintain existing procedures for addressing regional trimester 
over and underharvests for SCS when establishing the regional quotas 
and seasons for the second and third trimesters of 2007. No change in 
economic impacts would be realized in the North Atlantic and South 
Atlantic regions since those regions would be open, with ample quota, 
throughout the entire second and third trimesters of 2007 under the 
status quo. This alternative is not preferred, as it would result in 
greater negative economic

[[Page 10487]]

impacts for the Gulf of Mexico region, compared to the preferred 
alternative.
    The no action alternative would not create any new economic burdens 
on the SCS commercial industry that were not included in previous 
rulemaking. Regardless, the size of the 2006 second trimester 
overharvest in the Gulf of Mexico region would result in no commercial 
fishing for SCS in the entire Gulf of Mexico region during the second 
trimester of 2007. Even after a ten percent quota transfer from the 
South Atlantic second season underharvest, the 25.87 mt dw of 
transferred quota is not sufficient to address the 41.2 mt dw of 
overharvest in the Gulf of Mexico region during the second trimester 
season of 2006.
    If not for the overharvest in 2006, the 2007 second trimester quota 
allocation would have been 15.1 mt dw of SCS in the Gulf of Mexico 
region. Instead, the adjusted quota under Alternative 4 would be 
negative 26.1 mt dw resulting in a closed fishing season. Using a 
median ex vessel price of $0.44 per pound dress weight for SCS and 
$17.05 per pound for shark fin reported in HMS dealer reports from 2003 
to 2006 for the Gulf of Mexico region and adjusted for inflation, the 
value of this harvest (15.1 mt dw) would have been approximately 
$13,915 for SCS flesh (95 percent of the quota weight) and $28,380 for 
shark fins (based on the 5 percent shark fin to carcass regulation). 
Therefore, the 2006 overharvest is estimated to have a direct revenue 
impact on Gulf of Mexico regional commercial shark fishing activity of 
approximately $42,295. However, it should be noted that due to the 
overharvest, fishermen received more revenue in the 2006 second 
trimester than previously expected.
    Alternative 5 would transfer a portion of the South Atlantic's 
regional 2007 second trimester SCS underharvest (41.2 mt dw) to the 
Gulf of Mexico region to cover the Gulf of Mexico's regional 2006 
second trimester overharvest. The Gulf of Mexico would then have the 
equivalent of their base quota of 15.1 mt dw for the 2007 second 
trimester. This would eliminate the economic impact of a closure in the 
Gulf of Mexico region in 2007 unlike under the no action alternative. 
The South Atlantic region would still have an adjusted third trimester 
quota of 349 mt dw, which is much greater than the amount that region 
actually harvested in the second season of 2006. The only economic 
impacts would come from potential future impacts to the South Atlantic 
region as a result of the 41.2 mt dw transfer of their underhavest to 
the Gulf of Mexico region if in the future the South Atlantic harvests 
more SCS than is accommodated by their lowered final adjusted quota.
    Alternative 6 would transfer a portion of the South Atlantic's 
regional 2007 second trimester SCS underharvest (41.2 mt dw) to the 
Gulf of Mexico region to cover the Gulf of Mexico's regional 2006 
second trimester SCS overharvest as well as give the Gulf of Mexico 
region additional SCS quota of 15.1 mt dw from the South Atlantic 
region for a total of 30.2 mt dw for the 2007 second trimester. This 
additional quota transfer would likely not provide enough quota to 
prevent an overharvest during the 2007 second trimester. However, this 
additional quota (15.1 mt dw) would provide the Gulf of Mexico region 
with an additional $42,294 in potential revenue from SCS. It would also 
further reduce the underharvest carry forward of SCS in the South 
Atlantic as a result of the larger transfer. There could be future 
economic impacts in the South Atlantic region if one day they need that 
quota.
    Alternative 7 would take a different approach. Under Alternative 7, 
NMFS would reallocate the SCS regional quota percentages in the South 
Atlantic region from 87 percent to 49 percent and in the Gulf of Mexico 
region from 10 percent to 48 percent for both the 2007 second and third 
trimester seasons and in the future. In addition, there would also be 
transfer of underharvest in the South Atlantic regional 2007 second 
trimester quota to cover the Gulf of Mexico's regional second trimester 
overharvest. This alternative is the preferred alternative.
    There would be no change in the total base quota available for all 
regions in the second and third trimester season under this alternative 
versus alternative 4 (No Action). In addition, the adjusted 2007 second 
and third trimester regional quota would stay the same for the North 
Atlantic region. The key change would involve the quota amounts for 
South Atlantic and Gulf of Mexico regions. The 2007 second trimester 
quota in the South Atlantic region would decrease from 390.2 mt dw 
(Alternative 4) to 291.6 mt dw of SCS and the 2007 third trimester 
quota would decrease from 354.9 mt dw (Alternative 4) to 297.5 mt dw. 
Using the 2003 to 2006 median ex vessel prices of $0.67 lbs dw for 
flesh and the 2003 to 2006 median ex vessel prices for shark fin of 
$12.28 for SCS in the South Atlantic region, there would be a decrease 
of $200,425 in potential revenues for the second trimester season and 
$158,245 decrease in potential revenues in the third trimester season. 
However, it should be noted that the South Atlantic region has not 
harvested SCS in amounts approaching even these lowered trimester quota 
levels in the past few years.
    The 2007 second trimester quota in the Gulf of Mexico region would 
go from -26.1 mt dw (which would close this region) under the 
alternative 4 (No Action) scenario in the second trimester season to 
72.6 mt dw of SCS under this alternative. In addition, the 2007 third 
trimester quota would increase from 22.9 mt dw to 80.4 mt dw. Using the 
2003 to 2006 median ex vessel prices of $0.44 lbs dw for flesh and the 
2003 to 2006 median ex vessel prices for shark fins of $17.05 for SCS 
in the Gulf of Mexico region, there would be an increase of $203,350 in 
potential revenues for the second trimester season and $161,506 
increase in potential revenues in the third trimester season. This 
reallocation of quota would allow the SCS fishery to remain open in the 
Gulf of Mexico region and would prevent future overharvest of quota in 
that region while not leading to an overharvest in the South Atlantic 
region.
    Overall, Alternative 7 would increase revenues for SCS by 
transferring quota from a region of underharvest to a region that is 
currently overharvesting their SCS quota. The reallocation of regional 
quota percentages would provide greater regional equity in future base 
quota allocations. This would help mitigate overharvesting of the quota 
in the Gulf of Mexico region. However, there could be future impacts to 
the South Atlantic region as a result of the reallocation of the SCS 
regional quota percentage to the Gulf of Mexico region if in the future 
the South Atlantic harvests more than this proposed lower regional 
quota allocation percentage.

List of Subjects in 50 CFR Part 635

    Fisheries, Fishing, Fishing vessels, Foreign relations, Imports, 
Penalties, Reporting and recordkeeping requirements, Treaties.

    Dated: March 5, 2007.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
    For reasons set out in the preamble, 50 CFR part 635 is proposed to 
be amended as follows:

PART 635--ATLANTIC HIGHLY MIGRATORY SPECIES

    1. The authority citation for part 635 continues to read as 
follows:

    Authority: 16 U.S.C. 971 et seq.; 16 U.S.C. 1801 et seq.
    2. In Sec.  635.27, paragraphs (b)(1)(i), (b)(1)(iv), (b)(1)(vi)(A) 
introductory text, are revised to read as follows:

[[Page 10488]]

Sec.  635.27  Quotas.

* * * * *
    (b) * * *
    (1) * * *
    (i) Fishing seasons. The commercial quotas for large coastal 
sharks, small coastal sharks, and pelagic sharks will be split among 
three fishing seasons: January 1 through April 30, May 1 through August 
31, and September 1 through December 31. NMFS may consider merging any 
of the fishing seasons pursuant to paragraph (b)(1)(vi) of this 
section.
* * * * *
    (iv) Small coastal sharks. The annual commercial quota for small 
coastal sharks is 454 mt dw, unless adjusted pursuant to paragraph 
(b)(1)(vi) of this section. This annual quota is split among the 
regions as follows: 48 percent to the Gulf of Mexico, 49 percent to the 
South Atlantic, and 3 percent to the North Atlantic.
* * * * *
    (vi) Annual adjustments. (A) NMFS will adjust the next year's 
fishing season quotas for large coastal, small coastal, and pelagic 
sharks to reflect actual landings during any fishing season in any 
particular region. For example, a commercial quota underharvest or 
overharvest in the fishing season in one region that begins January 1 
will result in an equivalent increase or decrease in the following 
year's quota for that region for the fishing season that begins January 
1. NMFS may consider merging any of the fishing seasons and relevant 
quotas in any region when there is limited available quota in one or 
more seasons.
* * * * *
[FR Doc. 07-1085 Filed 3-5-07; 2:13 pm]
BILLING CODE 3510-22-S