[Federal Register Volume 72, Number 47 (Monday, March 12, 2007)]
[Proposed Rules]
[Pages 10967-10970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-4442]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 070227048-7048-01; I.D. 020807C]
RIN 0648-AU63


Fisheries of the Northeastern United States; Northeast 
Multispecies Fishery; Total Allowable Catches for Georges Bank Cod, 
Haddock, and Yellowtail Flounder in the U.S./Canada Management Area for 
Fishing Year 2007

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

[[Page 10968]]


ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS proposes 2007 fishing year (FY) Total Allowable Catches 
(TACs) for Georges Bank (GB) cod, haddock, and yellowtail flounder in 
the U.S./Canada Management Area, as recommended by the New England 
Fishery Management Council (Council). These TACs may be adjusted during 
FY 2007, if NMFS determines that the harvest of these stocks in FY 2006 
exceeded the TACs specified for FY 2006. The intent of this action is 
to provide for the conservation and management of those three stocks of 
fish.

DATES: Comments must be received by April 11, 2007.

ADDRESSES: You may submit written comments by any of the following 
methods:
     E-mail: [email protected]. Include in the subject line the 
following: Comments on the proposed TACs for the U.S./Canada Management 
Area.
     Federal e-rulemaking Portal: http://www.regulations.gov.
     Mail: Paper, disk, or CD ROM comments should be sent to 
Patricia A. Kurkul, Regional Administrator, National Marine Fisheries 
Service, One Blackburn Drive, Gloucester, MA 01930. Mark the outside of 
the envelope, ``Comments on the proposed TACs for the U.S./Canada 
Management Area.''
     Fax: (978) 281-9135.
    Copies of the Transboundary Management Guidance Committee's 2006 
Guidance Document and copies of the Environmental Assessment (EA) of 
the 2007 TACs (including the Regulatory Impact Review and Regulatory 
Flexibility Analysis (IRFA) may be obtained from NMFS at the mailing 
address specified above; telephone (978) 281-9315. NMFS prepared a 
summary of the IRFA, which is contained in the Classification section 
of this proposed rule.

FOR FURTHER INFORMATION CONTACT: Tobey Curtis, Fishery Management 
Specialist, (978) 281-9273, fax (978) 281-9135, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: The Northeast (NE) Multispecies Fishery 
Management Plan (FMP) specifies a procedure for setting annual hard TAC 
levels (i.e., the fishery or area closes when a TAC is reached) for GB 
cod, haddock, and yellowtail flounder in the U.S./Canada Management 
Area. The regulations governing the annual development of TACs (Sec.  
648.85(a)(2)) were implemented by Amendment 13 to the FMP (69 FR 22906; 
April 27, 2004) in order to be consistent with the U.S./Canada Resource 
Sharing Understanding (Understanding), which is an informal (i.e. non-
binding) understanding between the United States and Canada that 
outlines a process for the management of the shared GB groundfish 
resources. The Understanding specifies an allocation of TAC for these 
three stocks for each country, based on a formula that considers 
historical catch percentages and current resource distribution.
    Annual TACs are determined through a process involving the Council, 
the Transboundary Management Guidance Committee (TMGC), and the U.S./
Canada Transboundary Resources Steering Committee (Sec.  
648.85(a)(2)(i)). In November 2006, the TMGC approved the 2006 Guidance 
Document for GB cod, GB haddock, and GB yellowtail flounder, which 
included recommended U.S. TACs for these stocks. The recommended 2007 
TACs were based upon the most recent stock assessments (Transboundary 
Resource Assessment Committee (TRAC) Status Reports for 2006), and the 
fishing mortality strategy shared by both the United States and Canada. 
The strategy is to maintain a low to neutral (less than 50 percent) 
risk of exceeding the fishing mortality limit reference (Fref 
= 0.18, 0.26, and 0.25, for cod, haddock, and yellowtail flounder, 
respectively). When stock conditions are poor, fishing mortality rates 
(F) should be further reduced to promote rebuilding.
    For GB cod, the TMGC concluded that the most appropriate combined 
U.S./Canada TAC for FY 2007 is 1,900 mt. This corresponds to an F less 
than the Fref of 0.18 in 2007, and represents a low risk 
(less than 25 percent) of exceeding the Fref. At this level 
of harvest it is unlikely that the stock biomass will decrease from 
2007 to 2008. The annual allocation shares for FY 2007 between the 
United States and Canada are based on a combination of historical 
catches (25 percent weighting) and resource distribution based on trawl 
surveys (75 percent weighting). Combining these factors entitles the 
United States to 26 percent and Canada to 74 percent, resulting in a 
national quota of 494 mt of cod for the United States and 1,406 mt of 
cod for Canada.
    For GB haddock, the TMGC concluded that the most appropriate 
combined U.S./Canada TAC for FY 2007 is 19,000 mt. This corresponds to 
an F of less than the Fref of 0.26 in 2007 and would result 
in a risk of 50 percent of exceeding the Fref. The annual 
allocation shares for 2007 between countries are based on a combination 
of historical catches (25 percent weighting) and resource distribution 
based on trawl surveys (75 percent weighting). Combining these factors 
entitles the United States to 33 percent and Canada to 67 percent, 
resulting in a national quota of 6,270 mt of haddock for the United 
States and 12,730 mt of haddock for Canada.
    For GB yellowtail flounder, the TMGC concluded that the most 
appropriate combined U.S./Canada TAC for FY 2007 is 1,250 mt. This TAC 
would result in a risk of 50 percent that the fishing mortality rate in 
2007 would exceed the Fref of 0.25. The annual allocation 
shares for 2007 between countries are based on a combination of 
historical catches (25 percent weighting) and resource distribution 
based on trawl surveys (75 percent weighting). Combining these factors 
entitles the United States to 72 percent and Canada to 28 percent, 
resulting in a national quota of 900 mt of yellowtail flounder for the 
United States and 350 mt of yellowtail flounder for Canada.
    On September 7, 2006, the 2006 Guidance Document was presented to 
the U.S./Canada Transboundary Resources Steering Committee. On November 
16, 2006, the Council approved, consistent with the 2006 Guidance 
Document, the following U.S. TACs recommended by the TMGC and 
recommended their adoption to NMFS: 494 mt of GB cod, 6,270 mt of GB 
haddock, and 900 mt of GB yellowtail flounder. The 2007 haddock and 
yellowtail flounder TACs represent a decrease from 2006 TAC levels, and 
the 2007 cod TAC represents an increase from the 2006 TAC (Tables 1 and 
2).

      Table 1: 2007 U.S./Canada TACs (mt) and percentage shares (in
                              parentheses)
------------------------------------------------------------------------
                                                          GB Yellowtail
                         GB Cod           GB Haddock         flounder
------------------------------------------------------------------------
Total Shared TAC            1,900             19,000           1,250
U.S. TAC                 494 (26)         6,270 (33)        900 (72)
Canada TAC             1,406 (74)        12,730 (67)        350 (28)
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[[Page 10969]]


      Table 2: 2006 U.S./Canada TACs (mt) and percentage shares (in
                              parentheses)
------------------------------------------------------------------------
                                                          GB Yellowtail
                        GB Cod           GB Haddock         flounder
------------------------------------------------------------------------
Total Shared TAC           1,700             22,000             3,000
U.S. TAC                374 (22)         7,480 (34)        2,070 (69)
Canada TAC            1,326 (78)        14,520 (66)          930 (31)
------------------------------------------------------------------------

    The 2007 TACs are based upon stock assessments conducted in July 
2006 by the TRAC. The proposed TACs are consistent with the results of 
the TRAC and the TMGC's harvest strategy and, therefore, NMFS proposes 
that they be implemented through this action.
    The regulations for the U.S./Canada Management Understanding, 
implemented by Amendment 13, at Sec.  648.85(a)(2)(ii), state the 
following: ``Any overages of the GB cod, haddock, or yellowtail 
flounder TACs that occur in a given fishing year will be subtracted 
from the respective TAC in the following fishing year.''
    Therefore, should an analysis of the catch of the shared stocks by 
U.S. vessels indicate that an overage occurred during FY 2006, the 
pertinent TAC will be adjusted downward in order to be consistent with 
the FMP and the Understanding. Although it is very unlikely, it is 
possible that a very large overage could result in an adjusted TAC of 
zero. If an adjustment to one of the 2007 TACs for cod, haddock, or 
yellowtail flounder is necessary, the public will be notified through 
publication in the Federal Register and through a letter to permit 
holders.

Classification

    NMFS has determined that the proposed rule is consistent with the 
FMP and preliminarily determined that the rule is consistent with the 
Magnuson-Stevens Fishery Conservation and Management Act and other 
applicable laws.
    This proposed rule is exempt from review under Executive Order 
12866.
    An initial regulatory flexibility analysis (IRFA) was prepared, as 
required by section 603 of the Regulatory Flexibility Act (RFA). The 
IRFA describes the economic impact this proposed rule, if adopted, 
would have on small entities. A description of the action, why it is 
being considered, and the legal basis for this action are contained at 
the beginning of this section in the preamble and in the SUMMARY 
section of the preamble. A summary of the analysis follows. A copy of 
this analysis is available from the NMFS (see ADDRESSES).
    The specification of hard TACs is necessary in order to ensure that 
the agreed upon U.S./Canada fishing mortality levels for these shared 
stocks of fish are achieved in the U.S./Canada Management Area (the 
geographic area on GB defined to facilitate management of stocks of 
cod, haddock, and yellowtail flounder that are shared with Canada). A 
description of the objectives and legal basis for the proposed TACs is 
contained in the SUMMARY of this proposed rule.
    Under the Small Business Administration (SBA) size standards for 
small fishing entities ($3.5 million), all permitted and participating 
vessels in the groundfish fishery are considered to be small entities 
and, therefore, there are no differential impacts between large and 
small entities. Gross sales by any one entity (vessel) do not exceed 
this threshold. The maximum number of small entities that could be 
affected by the proposed TACs are approximately 1,000 vessels, i.e., 
those with limited access NE multispecies days-at-sea (DAS) permits 
that have an allocation of Category A or B DAS. Realistically, however, 
the number of vessels that choose to fish in the U.S./Canada Management 
Area, and that therefore would be subject to the associated 
restrictions, including hard TACs, would be substantially less.
    From May 2005 through April 2006 (i.e., FY 2005), 184 individual NE 
multispecies DAS vessels fished in the U.S./Canada Management Area. 
Because the regulatory regime in FY 2007 will be similar to that in 
place in FY 2005, it is likely that the number of vessels that choose 
to fish in the area during FY 2007 will be similar to the number of 
vessels that fished in the area during FY 2005.
    The economic impacts of the proposed TACs are difficult to predict 
due to several factors that affect the amount of catch, as well as the 
price of the fish. Furthermore, the economic impacts are difficult to 
predict due to the relative newness of these regulations (May 2004; 
Amendment 13 to the FMP). Therefore, there are relatively few historic 
data, and little is known about the specific fishing patterns or market 
impacts that may be caused by this hard TAC management system. In 
general, the rate at which yellowtail flounder is caught in the Eastern 
and Western U.S./Canada Area and the rate at which cod is caught in the 
Eastern U.S./Canada Area will determine the length of time the Eastern 
U.S./Canada Area will remain open. The length of time the Eastern U.S./
Canada Area is open will determine the amount of haddock that is 
caught. During the 2004 and 2005 fishing years, the TACs were not fully 
utilized, and inseason changes to the regulations impacted the fishery.
    The amount of GB cod, haddock, and yellowtail flounder landed and 
sold will not be equal to the sum of the TACs, but will be reduced as a 
result of discards (discards are counted against the hard TAC), and may 
be further reduced by limitations on access to stocks that may result 
from the associated rules. Reductions to the value of the fish may 
result from fishing derby behavior and the potential impact on markets. 
The overall economic impact of the proposed 2007 U.S./Canada TACs will 
likely be different from the economic impacts of the 2006 TACs due to 
the reduced yellowtail flounder TAC, and may result in reduced revenue. 
Although the 2007 cod TAC represents an increase from 2006, the 2007 
haddock and yellowtail flounder TACs represent decreases from 2006. For 
yellowtail flounder, the decrease is substantial. Based on the 
estimates in the EA, revenues from cod caught in the Eastern U.S./
Canada Area may increase from 2006 to 2007 by approximately 32 percent, 
and revenue from haddock and yellowtail flounder in the U.S./Canada 
Management Area may decline by 16 percent and 57 percent, respectively. 
According to the analysis, the overall change in revenue from 2006 to 
2007 for the 3 species combined could amount to a 33-percent decline 
(or approximately $ 3.5 million), although it is difficult to predict 
future fishing patterns, and there are factors that may mitigate the 
decline in overall revenue. For example, there could be an increase in 
yellowtail flounder price, as well as the potential for increased 
opportunity to harvest haddock from the Eastern U.S./Canada Area. If 
the larger GB cod TAC results in a longer period of time that the 
Eastern U.S./Canada Area is open, and if vessels attempt to, and are 
successful in avoidance of cod, the Eastern Area may be open for a 
longer period of time in FY 2007 than it was in 2006, resulting in 
additional revenue from haddock.

[[Page 10970]]

    Although unlikely, a downward adjustment to the TACs specified for 
FY 2007 could occur after the start of the fishing year, if it is 
determined that the U.S. catch of one or more of the shared stocks 
during the 2006 fishing year exceeded the relevant TACs specified for 
FY 2006. The economic effects of this downward adjustment would likely 
result in a short term loss of revenue proportional to the magnitude of 
the adjustment.
    Three alternatives were considered for FY 2007: The proposed TACs, 
the status quo TACs, and the no action alternative. No additional set 
of TACs are proposed because the process involving the TMGC and the 
Council yields only one proposed set of TACs. Accordingly, NMFS chooses 
to either accept or reject the recommendation of the Council. The 
proposed TACs would have a similar economic impact as the status quo 
TACs. Adoption of the status quo TACs, however, would not be consistent 
with the FMP because the status quo TACs do not represent the best 
available scientific information incorporated from the most recent 
TRAC. Although the no action alternative (no TACs) would not constrain 
catch in the U.S./Canada Management Area, and therefore would likely 
provide some additional fishing opportunity, the no action alternative 
is not a reasonable alternative because it is inconsistent with the FMP 
in both the short and long term. The FMP requires specification of hard 
TACs in order to limit catch of shared stocks to the appropriate level 
(i.e., consistent with the Understanding and the FMP). As such, the no 
action alternative would likely provide less economic benefits to the 
industry in the long term than the proposed alternative.
    Two of the three proposed TACs would be reduced (haddock and 
yellowtail flounder), and could, under certain circumstances, constrain 
fishing opportunity on cod (for which the TACis increasing). The 
proposed TACs do not modify any collection of information, reporting, 
or recordkeeping requirements. The proposed TACs do not duplicate, 
overlap, or conflict with any other Federal rules.

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

    Dated: March 6, 2007.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
[FR Doc. E7-4442 Filed 3-9-07; 8:45 am]
BILLING CODE 3510-22-S