[Federal Register Volume 72, Number 72 (Monday, April 16, 2007)]
[Proposed Rules]
[Pages 18940-18943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-1883]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 070322064-7064-01; I.D. 030607E]
RIN 0648-AV20


Magnuson-Stevens Act Provisions; Fisheries of the Northeastern 
United States; Northeast Multispecies Fishery; 2007 Georges Bank Cod 
Hook Sector Operations Plan and Agreement and Allocation of Georges 
Bank Cod Total Allowable Catch

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

ACTION: Proposed rule; request for comments.

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SUMMARY: Amendment 13 to the Northeast (NE) Multispecies Fishery 
Management Plan (FMP) (Amendment 13) authorized allocation of up to 20 
percent of the annual Georges Bank (GB) cod total allowable catch (TAC) 
to the GB Cod Hook Sector (Sector). Pursuant to that authorization, the 
Sector has submitted an Operations Plan and Sector Contract entitled, 
``Georges Bank Cod Hook Sector Fishing Year 2007-2008 Operations Plan 
and Agreement'' (together referred to as the Sector Agreement) and has 
requested an allocation of GB cod, consistent with regulations 
implementing Amendment 13. A Supplemental Environmental Assessment has 
also been prepared. This document provides interested parties an 
opportunity to comment on the proposed Sector Agreement prior to final 
approval or disapproval of the Sector Operations Plan and allocation of 
GB cod TAC to the Sector for the 2007 fishing year (FY).

DATES: Written comments must be received on or before May 1, 2007.

ADDRESSES: You may submit written comments by any of the following 
methods:
     Mail: Paper, disk, or CD-ROM comments should be sent to 
Patricia A. Kurkul, Regional Administrator, NMFS, Northeast Regional 
Office, 1 Blackburn Drive, Gloucester, MA 01930. Mark the outside of 
the envelope ``Comments on GB Cod Hook Sector Operations Plan.''
     Fax: (978) 281-9135.
     E-mail: [email protected].
     Federal e-Rulemaking Portal: http://www.regulations.gov.
    Copies of the Sector Agreement and the EA are available from the NE 
Regional Office at the mailing address specified above. Written 
comments regarding the burden-hour estimates or other aspects of the 
collection-of-information requirements contained in the proposed rule 
may be submitted to the address above or by e-mail to [email protected]">[email protected], or fax to (202) 395-7285.

FOR FURTHER INFORMATION CONTACT: Thomas Warren, Fishery Policy Analyst, 
phone (978) 281-9347, fax (978) 281-9135, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: NMFS announces that the Administrator, 
Northeast Region, NMFS (Regional Administrator), has made a preliminary 
determination that the Sector Agreement, which contains the Sector 
Contract and Operations Plan, is consistent with the goals of the FMP 
and applicable law and is in compliance with the regulations governing 
the development and operation of a sector as specified under 50 CFR 
648.87. The final rule implementing Amendment 13 (69 FR 22906, April 
27, 2004) specified a process for the formation of sectors within the 
NE multispecies fishery and

[[Page 18941]]

the allocation of TAC for a specific groundfish species (or days-at-sea 
(DAS)), implemented restrictions that apply to all sectors, authorized 
the GB Cod Hook Sector, established the GB Cod Hook Sector Area (Sector 
Area), and specified a formula for the allocation of GB cod TAC to the 
Sector.
    The principal Amendment 13 regulations applying to the Sector 
specify that: (1) all vessels with a valid limited access NE 
multispecies DAS permit are eligible to participate in the Sector, 
provided they have documented landings, through valid dealer reports 
submitted to NMFS, of GB cod during FY 1996 through 2001 when fishing 
with hook gear (i.e., jigs, demersel longline, or handgear); (2) 
membership in the Sector is voluntary, and each member is required to 
remain in the Sector for the entire fishing year and cannot fish 
outside the NE multispecies DAS program during the fishing year, unless 
certain conditions are met; (3) vessels fishing in the Sector 
(participating vessels) are confined to fishing in the Sector Area, 
which is that portion of the GB cod stock area north of 39[deg] 00' N. 
lat. and east of 71[deg] 40' W. long; and (4) participating vessels are 
required to comply with all pertinent Federal fishing regulations, 
unless specifically exempted by a Letter of Authorization issued by the 
Regional Administrator, and the provisions of an approved Operations 
Plan.
    While Amendment 13 authorized the Sector, in order for GB cod to be 
allocated to the Sector and the Sector authorized to fish, the Sector 
must submit an Operations Plan and Sector Contract to the Regional 
Administrator annually for approval. The Operations Plan and Sector 
Contract must contain certain elements, including a contract signed by 
all Sector participants and a plan containing the management rules that 
the Sector participants agree to abide by in order to avoid exceeding 
the allocated TAC. An additional analysis of the impacts of the 
Sector's proposed operations may also be required in order to comply 
with the National Environmental Policy Act. Further, the public must be 
provided an opportunity to comment on the proposed Operations Plan and 
Sector Contract. The regulations require that, upon completion of the 
public comment period, the Regional Administrator will make a 
determination regarding approval of the Sector Contract and Operations 
Plan. If approved by the Regional Administrator, participating vessels 
would be authorized to fish under the terms of the Operations Plan and 
Sector Contract.
    The Sector was authorized for FY 2006 and, based upon the GB cod 
landings history of its 37 members, was allocated 615 mt of cod, which 
is 10.03 percent of the total FY 2006 GB cod TAC.
    On January 22, 2007, the Sector Manager submitted to NMFS the 
Georges Bank Cod Hook Sector Fishing Year 2007-2008 Operations Plan and 
Agreement. A supplemental EA entitled ``Approval of the Georges Bank 
Cod Hook Sector Operations Plan,'' which analyzes the impacts of the 
proposed Sector Agreement, was also prepared.
    The proposed 2007 Sector Agreement and Operations Plan contains the 
same elements as the 2006 Sector Agreement. The Sector Agreement would 
be overseen by a Board of Directors and a Sector Manager. The Sector 
Agreement specifies, in accordance with Amendment 13, that the Sector's 
GB cod TAC would be based upon the number of Sector members and their 
historic landings of GB cod. The GB cod TAC is a ``hard'' TAC, meaning 
that, once the TAC is reached, Sector vessels could not fish under a 
DAS, possess or land GB cod or other regulated species managed under 
the FMP (regulated species), or use gear capable of catching groundfish 
(unless fishing under charter/party or recreational regulations). 
Should the hard TAC be exceeded, the Sector's allocation would be 
reduced by the overharvest in the following year.
    The proposed 2007 Operations Plan proposes an exemption from the 
following restrictions of the FMP: The GB cod trip limit; the GB and 
Southern New England (SNE) limit on the number of hooks fished; the GB 
seasonal closure; the DAS Leasing Program vessel size restrictions; 
Differential DAS in the Gulf of Maine Differential DAS Area and in the 
SNE Differential DAS Area (those portions of the differential areas 
which overlap the Sector Area); and the Western U.S./Canada Area 72-hr 
observer program notification. Justification for the proposed 
exemptions and analysis of the potential impacts of the Operations Plan 
are contained in the EA. A Regulatory Impact Review/Initial Regulatory 
Flexibility Analysis (IRFA) is summarized in the Classification section 
of this proposed rule.
    As of February 1, 2007, 35 prospective Sector members had signed 
the 2007 Sector Contract. The GB cod TAC calculation is based upon the 
historic cod landings of the participating Sector vessels, regardless 
of gear used. The allocation percentage is calculated by dividing the 
sum of total landings of GB cod landed by Sector members in FY 1996 
through 2001, by the sum of the total accumulated landings of GB cod 
landed by all NE multispecies vessels for the same time period 
(10,738,834 lb (4,871.1 mt)/113,278,842 lb (51,382.42 mt)). Based upon 
the 35 prospective Sector members, the Sector TAC of GB cod would be 
798 mt (9.48 percent times the fishery-wide GB cod target TAC of 8,416 
mt). The fishery-wide GB cod target TAC of 8,416 mt is less than the 
total GB cod target TAC proposed for FY 2007 (9,822 mt) because the 
9,822 mt includes Canadian catch. If prospective members of the Sector 
determine that they no longer want to participate in the sector after 
the publication of this document and prior to a final decision by the 
Regional Administrator, it is possible that the total number of 
participants in the Sector and the TAC for the Sector may differ from 
the numbers above. The Sector Agreement contains procedures for the 
enforcement of the Sector rules, a schedule of penalties, and provides 
the authority to the Sector Manager to issue stop fishing orders to 
members of the Sector. Participating vessels would be required to land 
fish only in designated landing ports and would be required to provide 
the Sector Manager with a copy of the Vessel Trip Report (VTR) within 
48 hr of offloading. Dealers purchasing fish from participating vessels 
would be required to provide the Sector Manager with a copy of the 
dealer report on a weekly basis. On a monthly basis, the Sector Manager 
would transmit to NMFS a copy of the VTRs and the aggregate catch 
information from these reports. After 90 percent of the Sector's 
allocation has been harvested, the Sector Manager would be required to 
provide NMFS with aggregate reports on a weekly basis. A total of 1/12 
of the Sector's GB cod TAC, minus a reserve, would be allocated to each 
month of the fishing year. GB cod quota that is not landed during a 
given month would be rolled over into the following month. Once the 
aggregate monthly quota of GB cod is reached, for the remainder of the 
month, participating vessels could not fish under a NE multispecies 
DAS, possess or land GB cod or other regulated species, or use gear 
capable of catching regulated NE multispecies. Once the annual TAC of 
GB cod is reached, Sector members could not fish under a NE 
multispecies DAS, possess or land GB cod or other regulated species, or 
use gear capable of catching regulated NE multispecies for the rest of 
the fishing year. The harvest rules would not preclude vessels from 
fishing under the charter/party or recreational regulations, provided 
the vessel fishes

[[Page 18942]]

under the applicable charter/party and recreational rules on separate 
trips. For each fishing trip, participating vessels would be required 
to fish under the NE multispecies DAS program to account for any 
incidental groundfish species that they may catch while fishing for GB 
cod. In addition, participating vessels would be required to call the 
Sector Manager prior to leaving port. All legal-sized cod caught would 
be retained and landed and counted against the Sector's aggregate 
allocation. Participating vessels would not be allowed to fish with or 
have on board gear other than jigs, non-automated demersal longline, or 
handgear. NE multispecies DAS used by participating vessels while 
conducting fishery research under an Exempted Fishing Permit during the 
FY 2007 would be deducted from that Sector member's individual DAS 
allocation. Similarly, all GB cod landed by a participating vessel 
while conducting research would count toward the Sector's allocation of 
GB cod TAC. Participating vessels would be exempt from the GB Seasonal 
Closure Area during May.
    The EA prepared for the Sector operations concludes that the 
biological impacts of the Sector will be positive because the hard TAC 
and the use of DAS will provide two means of restricting both the 
landings and effort of the Sector. Implementation of the Sector would 
have a positive impact on essential fish habitat (EFH) and bycatch by 
allowing a maximum number of hook vessels to remain active in the hook 
fishery, rather than converting to (or leasing DAS to) other gear types 
that have greater impacts on EFH. The analysis of economic impacts of 
the Sector concludes that Sector members would realize higher economic 
returns if the Sector were implemented. The EA asserts that fishing in 
accordance with the Sector Agreement rules enables more efficient 
harvesting of GB cod with hook gear than would be possible if the 
vessels were fishing in accordance with the common pool (non-Sector) 
rules. The social benefits of the Sector would accrue to Sector 
members, as well as the Chatham and Harwichport, MA, communities, which 
are more dependent upon groundfish revenues than other communities. The 
EA concludes that the self-governing nature of the Sector and the 
development of rules by the Sector enables stewardship of the cod 
resource by Sector members. The cumulative impacts of the Sector are 
expected to be positive due to a positive biological impact, positive 
impact on habitat, and a positive social and economic impact. In 
contrast, the cumulative impact of the no action alternative is 
estimated to be neutral, with negative social and economic impacts.
    Should the Regional Administrator approve the Sector Agreement as 
proposed, a Letter of Authorization would be issued to each member of 
the Sector exempting them, conditional upon their compliance with the 
Sector Agreement, from the GB cod possession restrictions, the GB 
Seasonal Closure Area, the Western U.S./Canada Area 72-hr observer 
notification requirement, the DAS Leasing Program vessel size 
restrictions, differential DAS, and the limits on the number of hooks 
requirements as specified in Sec. Sec.  648.86(b)(2), 648.81(g), 
648.85(a)(3)(ii)(C), 648.82(k)(4)(ix), 648.82 (e)(2), 648.80(a)(4)(v), 
and 648.80(b)(2)(v), respectively.

Classification

    This proposed rule has been determined to be not significant for 
the purposes of Executive Order (E.O.) 12866.
    This proposed rule does not contain policies with federalism or 
``takings'' implications as those terms are defined in E.O. 13132 and 
E.O. 12630, respectively.
    An Initial Regulatory Flexibility Analysis (IRFA) was prepared as 
required by section 603 of the Regulatory Flexibility Act (RFA). Below 
is a summary of the IRFA, which describes the economic impacts 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 in the preamble to this proposed rule and in the 
EA prepared for this action. The Small Business Administration (SBA) 
size standard for small commercial fishing entities is $ 4 million in 
average annual receipts. All permitted and participating vessels in the 
groundfish fishery, including prospective Sector members, are 
considered to be small entities because average annual receipts by any 
one entity (vessel) do not exceed this threshold, and, therefore there 
is no disproportionate impact between large and small entities. The 
number of prospective participants in the Sector is 35, substantially 
less than the total number of active vessels in the groundfish fishery. 
Only these 35 vessels would be subject to the regulatory exemptions and 
operational restrictions proposed for the Sector for FY 2007.

Economic Impacts of the Proposed Action

    The proposed alternative would allocate a GB cod TAC of 798 mt to 
the GB Cod Hook Sector. Once the GB cod TAC is harvested, participating 
vessels would not be allowed to fish under a DAS, possess or land GB 
cod, or other regulated species managed under the FMP, or use gear 
capable of catching groundfish (unless fishing under recreational or 
party/charter regulations). Vessels intending to fish in the Sector 
during FY 2007 may not fish for NE multispecies under a NE Multispecies 
DAS during FY 2007 until the Sector Operations Plan is approved, and 
Sector vessels may only fish with jigs, non-automated demersel 
longline, or handgear. Under the proposed Operations Plan, members 
would be exempt from several restrictions of the FMP described in the 
preamble to this proposed rule and in the EA.
    The proposed alternative would positively impact the members of the 
Sector (35 vessels or less) that have voluntarily joined the Sector, 
who are relatively dependent upon groundfish revenue compared to other 
participants in the groundfish fishery. The proposed Alternative would 
indirectly benefit the communities of Chatham and Harwichport 
(Massachusetts), and to a lesser extent other Cape Cod communities 
involved in the groundfish fishery. During FY 2005, members of the 
Sector landed 275,743 lb (125,054 kg) of cod and 1,114,401 lb (505,397 
kg) of haddock, generating approximately $ 402,000, and $ 1,314,000 in 
revenue, respectively (assuming a dock-side price of $ 1.46 and $1.18 
per lb, respectively). Sector members also landed various other 
species, which contributed slightly more to their revenue. In general, 
the operation of the Sector would continue to mitigate the negative 
economic impacts that result from the current suite of regulations that 
apply to the groundfish fishery (most recently Framework Adjustment 
42)(October 23, 2006; 71 FR 62156). The Sector, by fishing under rules 
that are designed to meet their needs (as well as the conservation 
requirements of the FMP), is afforded a larger degree of flexibility 
and efficiency, which result in economic gains. For example, Sector 
members are able to plan their fishing activity and income in advance 
with more certainty due to the fact that there is a cod TAC, which is 
apportioned to each month of the year. They are able to maximize their 
efficiency (revenue per trip) due to the exemption from trip limits and 
hook numbers. For some vessel owners in the Sector,

[[Page 18943]]

participation in the Sector enables their businesses to remain 
economically viable.

Economic Impacts of Alternatives to the Proposed Action

    Under the No Action alternative, all Sector members would remain in 
the common pool of vessels and fish under all the rules implemented by 
Amendment 13 and subsequent Framework Adjustments. Under the regulatory 
scenario of the No Action alternative, Sector members would likely face 
increased economic uncertainty, a loss of efficiency, and revenue loss. 
Because cod usually represents a high proportion of total fishing 
income for hook gear vessels, revenues for Sector members are sensitive 
to regulations that impact how and when they can fish for cod, such as 
trip limits and hook gear restrictions. Sector members would be 
unnecessarily impacted by regulations designed to affect the catch of 
species of which hook gear catches very little (e.g., yellowtail 
flounder, because hook gear is more selective than other gear types). 
For example, under the No Action alternative, Sector members would be 
affected by the differential DAS counting requirement, one of the 
objectives of which is to protect yellowtail flounder.

Description of the Projected Reporting, Recordkeeping, and Other 
Compliance Requirements of the Proposed Action

    This rule contains a collection-of-information requirement subject 
to the Paperwork Reduction Act (PRA) and which has been approved by OMB 
under control number 0648-0202. Public reporting burden for the 
Submission of a Plan of Operation for an Approved Sector Allocation is 
estimated to average 50 hr per response, and for the Annual Reporting 
Requirements for Sectors is estimated to average 6 hr per response, 
including the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and completing and 
reviewing the collection of information. Send comments regarding this 
burden estimate, or any other aspect of this data collection, including 
suggestions for reducing the burden, to NMFS (see ADDRESSES) and by e-
mail to [email protected], or fax to (202) 395-7285. 
Nothwithstanding any other provision of the law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the PRA, unless that collection of information displays a currently 
valid OMB Control Number.
    Regulations under the Magnuson-Stevens Fishery Conservation and 
Management Act require publication of this notification to provide 
interested parties the opportunity to comment on proposed TAC 
allocations and plans of operation of sectors.

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

    Dated: April 11, 2007.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
[FR Doc. 07-1883 Filed 4-12-07; 10:41 am]
BILLING CODE 3510-22-S