[Federal Register Volume 72, Number 189 (Monday, October 1, 2007)]
[Proposed Rules]
[Pages 55729-55735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-19378]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 635

[Docket No. 070803437-7439-01]
RIN 0648-AV93


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.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would establish the 2008 first trimester 
season quotas for large coastal sharks (LCS), small coastal sharks 
(SCS), and pelagic sharks based on over- or underharvests from the 2007 
first trimester season. This proposed action would provide advance 
notice of quotas and season dates for the Atlantic commercial shark 
fishery. It would also ensure the measures in this action are in place 
until they are replaced by those implemented under Amendment 2 to the 
Highly Migratory Species (HMS) Fisheries Management Plan (FMP) even if 
Amendment 2 is finalized after the start of the second trimester season 
(May 1, 2008). As such, this action constitutes the regulatory action 
to determine quotas and season lengths for LCS, SCS and pelagic sharks 
for the 2008 second trimester season.

DATES: Comments on this proposed rule may be submitted at the public 
hearing (oral or written), via email, mail, or fax by October 31, 2007.
    A public hearing will be held from 7-9 p.m. on October 3, 2007.

ADDRESSES: You may submit comments, identified by [0648-AV93], by any 
one of the following methods:
     Electronic Submissions: Submit all electronic public 
comments via the Federal eRulemaking Portal http://www.regulations.gov
     Fax: 301-713-1917, Attn:[LeAnn Southward Hogan]
     Mail: 1315 East West Highway, Silver Spring, MD 20910
    Please mark on the outside of the envelope ``Comments on Proposed 
Rule for 2008 First Trimester Season Lengths and Quotas''.
    Instructions: All comments received are a part of the public record 
and will generally be posted to http://www.regulations.gov without 
change. All Personal Identifying Information (for

[[Page 55730]]

example, name, address, etc.) voluntarily submitted by the commenter 
may be publicly accessible. Do not submit Confidential Business 
Information or otherwise sensitive or protected information.
    NMFS will accept anonymous comments. Attachments to electronic 
comments will be accepted in Microsoft Word, Excel, WordPerfect, or 
Adobe PDF file formats only.
    The hearing location will be held at the NOAA Science Center, 1305 
East West Highway, Silver Spring, MD 20910.
    Copies of the draft Environmental Assessment (EA) and other 
relevant documents 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 Atlantic HMS 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: 48 
percent to the Gulf of Mexico, 49 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.
    Consistent with 50 CFR 635.27(b)(1)(vi), any over- or underharvest 
in a given region from the 2007 first trimester season will be carried 
over to the 2008 first trimester season in that region.

2007 First Trimester Landings

    Shark landings data for the 2007 first trimester season are 
provided in Table 1. As a result of the over- and underharvests that 
occurred in the first trimester season of 2007, NMFS analyzed 
alternatives to adjust the 2008 first trimester season and quotas for 
the LCS and SCS fishery.

  Table 1--Landings in metric tons dressed weight (mt dw) for the 1\st\
trimester season of 2007. Landings estimates are based on dealer reports
                      received as of July 31, 2007.
------------------------------------------------------------------------
                       First Trimester Season 2007
-------------------------------------------------------------------------
   Species Group                                 Estimated
 (Annual Quota, mt      Region      Quota  (mt    Landings     Percent
        dw)          (Allocation)      dw)        (mt dw)    Quota Taken
------------------------------------------------------------------------
Large Coastal       Gulf of        62.3         187.4        300
 Sharks (1,017)      Mexico (52
                     %)
                   -----------------------------------------------------
                    South          -112.9       9.7          -
                     Atlantic (41
                     %)
                   -----------------------------------------------------
                    North          7.9          0            0
                     Atlantic (7
                     %)
------------------------------------------------------------------------
Small Coastal       Gulf of        15.1         14.5         96
 Sharks (454)        Mexico (10
                     %)
                   -----------------------------------------------------
                    South          308.4        27.6         9
                     Atlantic (87
                     %)
                   -----------------------------------------------------
                    North          18.8         0            0
                     Atlantic (3
                     %)
------------------------------------------------------------------------
Blue Sharks (273)   No regional    91           0            0
                     quotas
-------------------               --------------------------------------
Porbeagle sharks    .............  30.7         0.1          0.3
 (92)
-------------------               --------------------------------------
Pelagic Sharks      .............  162.7        30.6         18.8
 other than those
 above (488)
------------------------------------------------------------------------

Quota Adjustments in the LCS and SCS Fishery

    NMFS conducted an Environmental Assessment (EA) to analyze three 
LCS and 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 North Atlantic, South 
Atlantic and Gulf of Mexico regions during the 2007 first trimester 
season.
    These measures are necessary to ensure that over- and underharvests 
from 2007 are accounted for and any impacts are analyzed. The base 
quotas established in Amendment 1 to the 1999 FMP for Atlantic Tunas, 
Swordfish, and Sharks and maintained in the Consolidated HMS FMP would 
not be affected by this rulemaking. Rather, the LCS base quotas would 
be changed via the final Amendment 2 to the Consolidated HMS FMP and 
its final rule. Based on the 2005 Canadian porbeagle stock assessment, 
the 2006 dusky shark stock assessment and the 2005/2006 LCS stock 
assessment, NMFS has determined that a number of shark species are 
overfished and overfishing is occurring and an amendment to the HMS FMP 
is needed to implement management measures to rebuild overfished stocks 
and prevent overfishing. The management measures proposed in the draft 
Amendment 2 to the HMS FMP would reduce fishing effort and mortality to 
rebuild overfished Atlantic shark species while ensuring that a limited 
shark fishery can be maintained. The final Amendment 2 to the HMS FMP 
is expected to be published in late winter or early spring 2008.

[[Page 55731]]

LCS Quota Adjustments and Fishing Season Notification

    Consistent with 50 CFR 635.27(b)(1)(vi)(A)(3), the LCS quota for 
the Gulf of Mexico and South Atlantic regions is split equally (33.3 
percent/season) between the three trimester fishing seasons, and the 
quota for the North Atlantic is split according to historical landings 
of 4, 88, and 8 percent for the first, second, and third trimester 
seasons, respectively. Due to LCS overharvests that occurred in both 
the Gulf of Mexico and South Atlantic regions during the first 
trimesters of 2006 and 2007, the LCS quotas for these regions and 
season have been significantly reduced from the baseline quotas. Table 
2 describes the adjusted LCS quotas based on the 2007 first trimester 
overharvests.
    Under alternative 1 (no action) the Gulf of Mexico region would 
have a quota of 51 mt dw (112,435 lb dw) and would have a five day 
season, and the North Atlantic region would have a quota of 10.7 mt dw 
(23,589 lb dw) and would be open for the entire first season of 2008. 
The South Atlantic region would have a quota of 16.3 mt dw (35,935 lb 
dw). However, based upon historical (2004-2007) average catch rates and 
landings that occurred during federal closures during the first 
trimester, 96.9 percent of the quota would be harvested if the season 
was open for one day. Therefore, due to safety at sea concerns and 
possible derby fishing conditions, the LCS fishery in the South 
Atlantic region would be closed for the 2008 first trimester season 
under the no action alternative.
    Under alternative 3 (the preferred alternative), NMFS would close 
the LCS fishery in the Gulf of Mexico, South Atlantic, and North 
Atlantic regions during the 2008 first trimester season until Amendment 
2 to the HMS FMP is effective. Closing the LCS fishery during the 2008 
first trimester season would be the second consecutive year that NMFS 
closed the LCS fishery in the South Atlantic region during the first 
trimester. As a result, the South Atlantic region commercial LCS 
fishermen would continue to experience negative social and economic 
impacts associated with these management measures.
    A closure in the Gulf of Mexico region could avoid safety at sea 
concerns and possible derby fishing condition that may occur as a 
result of the five day season (no action alterative).
    In the North Atlantic region from 2004-2007 an average of 0.4 mt dw 
was landed during the entire first trimester season. Thus, due to the 
historically small landings in this region during the first trimester, 
NMFS does not expect that the North Atlantic region would be negatively 
impacted from a LCS closure in this region during the 2008 first 
trimester.
    The preferred LCS management measures that are finalized in this 
action would be in place from January 1, 2008, until Amendment 2 to the 
Consolidated HMS FMP is finalized and effective even if that date is 
after the end of the 2008 first trimester season on April 30th. The 
preferred alternative would provide positive ecological benefits by 
eliminating directed fishing effort and possession of LCS in any 
region. Eliminating this directed fishery from all regions would 
provide the most ecological benefits to overfished sandbar and dusky 
shark populations and reduce fishing pressure on other LCS species, 
relative to Alternative 1 (no action). Positive ecological impacts 
would result from these closures for incidental and protected species, 
particularly for sea turtles as 64 percent of annual sea turtles 
interactions occur in the BLL fishery between January and April. 
Therefore, the ecological benefits of keeping the LCS fishery closed in 
all regions until Amendment 2 to the HMS FMP is effective may outweigh 
the potential economic impacts associated with the closure.
    Furthermore, the LCS quotas for the 2007 merged second and third 
seasons in the Gulf of Mexico and South Atlantic regions are 83.1 mt dw 
and 163.70 mt dw, respectively. The LCS quota for the second season in 
the North Atlantic region is 69 mt dw. As of July 31, 2007, preliminary 
landings data from federal dealers indicate that there were 144.6 mt dw 
landed in the Gulf of Mexico despite a season that begins on September 
1 and closes on September 22, 2007. These landings have exceeded the 
federal quota of 83.1 mt dw and can be primarily attributed to landings 
of sharks caught in state waters and sold to federal dealers. In the 
South Atlantic region, the LCS season was open from July 15 through 
August 15, 2007. As of July 31, 2007, there were 35.8 mt dw of LCS 
landed and reported by federal dealers. In the North Atlantic region, 
there were 74.8 mt dw landed which exceeds the federal quota of 69 mt 
dw. As federal dealer reports continue to be submitted in each region 
and the LCS season in the Gulf of Mexico is open from September 1-22, 
2007, it is likely there will be extensive overharvests of LCS in the 
2007 second and third seasons. Under current regulations, any over- or 
underharvest that occurs in the 2007 second and third trimester season 
would need to be taken into account during the 2008 second trimester 
season. However, as mentioned above, the LCS closure in each region 
resulting from this proposed rule would remain effective until 
Amendment 2 to the HMS FMP is finalized and effective. There would be 
no additional regulatory action to determine LCS quotas and season 
lengths for the 2008 second trimester season.
    Besides the no action alternative (alternative 1) and the preferred 
alternative (alternative 3), NMFS also considered alternative 2, which 
would combine the regions into one region. Under this alternative, the 
quota would be 78 mt dw for this one region and the season would be 
open for six days. NMFS did not prefer this alternative because 
negative consequences of establishing a single region combined with a 
substantially shortened season might include derby-style fishing and 
safety at sea concerns, as well as decreased fishing efficiency with 
resulting decreased survival rates for bycatch. Additionally, negative 
ecological impacts to overfished shark species could occur if all 
regions were combined and opened for a short time period as proposed 
under this alternative.

SCS Quota Adjustments and Season Notification

    Consistent with 50 CFR 635.27(b)(1)(iv), the annual SCS quota (454 
mt dw) is split among the regions as follows: 48 percent to the Gulf of 
Mexico region, 49 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.
    There were no overharvests of SCS in any region during the 2007 
first trimester season. Under the current regulations, the SCS 2008 
first trimester season quotas would be 354.9 mt dw (782,413 lb dw) in 
the South Atlantic region, 73.2 mt dw (161,377 lb dw) in the Gulf of 
Mexico region, and 19.3 mt dw (42,549 lb dw) in the North Atlantic 
region. The SCS season would open on January 1, 2008 and would close 
when quotas are projected to be reached with a notification filed at 
the Office of the Federal Register by the Assistant Administrator (AA), 
consistent with 50 CFR 635.28(b)(2). Table 2 describes the proposed 
adjusted quotas and seasons

[[Page 55732]]

for SCS for the various regions for the 2008 first trimester season 
adjusted for underharvests that occurred during the 2007 first 
trimester season (Table 1).
    If Amendment 2 to the HMS FMP is not final and effective by the 
start of the 2008 second trimester season, the SCS fishery would open 
on May 1, 2008, with the baseline quotas of 12 mt dw in the North 
Atlantic region, 74.1 mt dw in the South Atlantic region, and 72.6 mt 
dw in the Gulf of Mexico region.

Pelagic Shark Quota Adjustments and Season Notification

    Existing regulations do not allow underharvests of pelagic sharks 
to be carried forward to the next fishing management period. As of July 
31, 2007, approximately 30.7 mt dw were reported landed in the 2007 
first trimester fishing season 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 2008 first trimester season 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 (Table 2). The pelagic shark season would open on 
January 1, 2008 and would close when quotas are projected to be reached 
with a notification filed at the Office of the Federal Register by the 
AA, consistent with 50 CFR 635.28(b)(2). If Amendment 2 to the HMS FMP 
is not final and effective by the start of the 2008 second trimester, 
the pelagic shark fishery would open on May 1, 2008, with the baseline 
quotas.

   Table 2. Seasons and Quotas for LCS, SCS and Pelagic Sharks for the First Trimester of 2008. All quotas and
                                  landings are in metric tons, dressed weight.
----------------------------------------------------------------------------------------------------------------
                                                            2007
                                     Region        Base    1\st\   2007 1\st\  +/- Under/    2008      Proposed
 Species Group  (Annual Quota)    (Allocation)     Tri.     Tri.      Tri.        Over     Adjusted     Season
                                                  Quota    Quota    Landings    Harvest      Quota
----------------------------------------------------------------------------------------------------------------
Large Coastal Sharks (1,017)     Gulf of Mexico  176.1    62.3     187.4       -125.1     51          CLOSED
                                 (52 %)                                                   (112,435
                                                                                           lb dw)
                                --------------------------------------------------------------------------------
                                 South Atlantic  138.9    -112.9   9.7         -122.6     16.3        CLOSED
                                 (41 %)                                                   (35,935 lb
                                                                                           dw)
                                --------------------------------------------------------------------------------
                                 North Atlantic  2.8      7.9      0           +7.9       10.7        CLOSED
                                 (7 %)                                                    (23,589 lb
                                                                                           dw)
----------------------------------------------------------------------------------------------------------------
Small Coastal Sharks (454)       Gulf of Mexico  72.6     15.1     14.5        +0.6       73.2        Jan. 1,
                                 (48 %)                                                   (161,377     2008 - To
                                                                                           lb dw)      be
                                                                                                       determine
                                                                                                       d
                                ---------------------------------------------------------------------
                                 South Atlantic  74.1     308.4    27.6        +280.8     354.9       ..........
                                 (49 %)                                                   (782,413
                                                                                           lb dw)
                                ---------------------------------------------------------------------
                                 North Atlantic  .54      18.8     0           +18.8      19.3        ..........
                                 (3 %)                                                    (42,549 lb
                                                                                           dw)
----------------------------------------------------------------------------------------------------------------
Blue Sharks (273)                No regional     91.0     30.7     91.0        Not        91.0        Jan. 1,
                                  quotas                                        applicab  (200,618     2008 - To
                                                                                le         lb dw)      be
                                                                                                       determine
                                                                                                       d
--------------------------------                ---------         ------------           ------------
Porbeagle sharks (92)            ..............  30.7     .......  30.7        .........  30.7        ..........
                                                                                          (67,681 lb
                                                                                           dw)
--------------------------------                ---------         ------------           ------------
Pelagic Sharks other than        ..............  162.7    .......  162.7       .........  162.7       ..........
 Porbeagle or blue (488)                                                                  (358,688
                                                                                           lb dw)
----------------------------------------------------------------------------------------------------------------

Request for Comments

    Comments on this proposed rule may be submitted at the public 
hearing (oral or written), via email, mail, or fax until October 31, 
2007. NMFS will hold one public hearing (see DATES and ADDRESSES) to 
receive comments from fishery participants and other members of the 
public regarding this proposed rule. This hearing 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 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; and the 
attendees should not interrupt one another). The NMFS representative 
will attempt to structure the meeting so that all attending members of 
the public will be able to comment, if they so choose. Attendees are 
expected to respect the ground rules, and, if they do not, 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).

[[Page 55733]]

Classification

    NMFS has preliminarily determined that this action is consistent 
with section 304(b)(1) of the Magnuson-Stevens 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 first trimester of 2008 based on under- and overharvests that 
occurred during the first trimester of 2007. 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 first trimester of 2008 for LCS, SCS, 
and pelagic sharks are in place by January 1, 2008, and remain 
effective until Amendment 2 of the HMS FMP is effective. There will be 
no regulatory action to determine quotas and season lengths for LCS, 
SCS and pelagic sharks for the 2008 second trimester season even if 
Amendment 2 is finalized after May 1, 2008, the start of the second 
trimester season.
    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 529 (231 directed and 298 
incidental) shark permit holders. Additionally, approximately 269 
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.
    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) through (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 Magnuson-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 three different alternatives in this proposed 
rulemaking and provides justification for selection of the preferred 
alternative to achieve the desired objective.
    The alternatives included: maintain existing procedures for LCS and 
SCS quota management (alternative 1, No Action), combine the LCS 
regions and quotas and maintain status quo for SCS (alternative 2), and 
close all regions to LCS fishing during the 2008 first trimester season 
until Amendment 2 to the HMS FMP effective and maintain modified status 
quo for SCS (alternative 3, preferred).
    Alternative 1 is considered the no action alternative since it 
would maintain existing procedures for addressing regional trimester 
over- and underharvests of LCS and SCS when establishing the regional 
quotas and seasons for the first trimester season of 2008. This 
alternative is not preferred in part because it could result in 
negative ecological impacts for LCS compared to the preferred 
alternative. The unexpected magnitude of the 2006 first trimester 
overharvest would result in no commercial fishing for LCS in the South 
Atlantic region during the first trimester of 2008 for the second 
consecutive year since the available adjusted quota of 16.3 mt dw would 
be taken in approximately one day.
    If not for the overharvests in 2006 and 2007, the LCS 2008 first 
trimester base quota allocation would have been 138.9 mt dw in the 
South Atlantic region. Instead, the adjusted quota under the no action 
alternative would be 16.3 mt dw, which is 122.6 mt dw less than it 
would have been under the base quota allocation. However, 112.9 mt dw 
of the 122.6 mt dw total overharvest was carried over from the 2006 
first trimester overharvest. Despite a closure in the South Atlantic 
region during the 2007 first trimester season, 9.7 mt dw was landed by 
fishermen fishing in state waters. The 9.7 mt dw, when added to the 
112.9 mt dw 2006 overharvest quota equals 122.6 mt dw of overharvest 
that must be accounted for during the 2008 first trimester. Because of 
the small 2008 adjusted quota, no fishing season is feasible due to 
safety at sea concerns and potential derby fishing conditions. Based on 
the ex-vessel prices per pound dw by region in 2006 of $0.46 per pound 
dw of LCS flesh and $16.20 per pound for shark fins in the South 
Atlantic region, the value of the 122.6 mt dw reduction from the 
baseline quota allocation is approximately $53,576 for LCS flesh (95 
percent of the quota weight) and $99,306 for shark fins (based on the 5 
percent shark fin to carcass ratio). Therefore, the total 2006 and 2007 
overharvest is estimated to have a direct revenue impact on the South 
Atlantic regional commercial shark fishery of approximately $152,882. 
Based on the ex-vessel prices listed above for LCS flesh and fins, the 
overharvest of 9.7 mt dw from the first trimester of 2007 is 
approximately $12,096. Based on the January catch rates and the amount 
of quota taken during federal closures, the available quota for 2008 is 
16.3 mt dw, which would likely be taken in one day. Therefore, the 
South Atlantic region would be closed during the 2008 first trimester 
season. In addition to the lost revenue from the 2006 and 2007 
overharvests, the closure would lead to an additional loss in revenue 
of

[[Page 55734]]

approximately $7,121 for LCS flesh (95 percent of the 16.3 mt dw) and 
$13,122 for shark fins (based on the 5 percent shark fin to carcass 
ratio). Therefore, a closure during the 2008 first trimester season in 
the South Atlantic region for two consecutive years would result in 
continued disrupted revenue flows and negative economic impacts.
    If not for the 125.1 mt dw overharvest in the first trimester of 
2007 in the Gulf of Mexico region, the 2008 first trimester available 
quota would have been 176.1 mt of LCS in the Gulf of Mexico region. Due 
to this overharvest, the adjusted LCS quota is 51 mt dw in the Gulf of 
Mexico region. To estimate the value of changes in revenues from the 
2008 available quota, the actual ex-vessel prices received for 2006 
were available, those prices were used to calculate the ``extra'' 
revenues generated from the overharvest in the first trimester of 2007. 
Based on the ex-vessel prices per pound dw by region in 2006 of $0.47 
per pound dressed weight of LCS flesh and $20.65 per pound for shark 
fins in the Gulf of Mexico region, the value of the 125.1 mt dw 
reduction from the baseline quota allocation is approximately $55,855 
for LCS flesh (95 percent of the quota weight) and $129,166 for shark 
fins (based on the 5 percent shark fin to carcass ratio). Therefore, 
the 2007 first trimester overharvest is estimated to have a direct 
revenue impact on the Gulf of Mexico regional commercial shark fishery 
of approximately $185,021. However, the 125.1 mt dw overharvest was 
primarily due to landings from fishermen fishing in state waters. As 
such, federal fishermen did not benefit from the overharvest in the 
2007 first trimester season. With a 2008 adjusted quota of 51 mt dw, 
the Gulf of Mexico region would have a short season that would last for 
five days. Using the ex-vessel prices as above for the Gulf of Mexico 
region , the value of this 51 mt dw adjusted quota for the first 
trimester of 2008 is approximately $22,772 for LCS flesh (95 percent of 
the quota weight) and $52,658 for shark fins (based on the 5 percent 
shark fin to carcass ratio). Therefore the estimated revenue for the 
2008 first trimester season would be approximately $75,430. While there 
may be slight positive economic impacts as a result of a limited LCS 
season in the Gulf of Mexico coupled with a South Atlantic LCS closure 
causing prices to increase, the intense fishing period may also cause a 
temporary glut in the market for that period of time for shark 
products. It could also lead to less efficient fishing operations that 
may reduce the quality of the shark products landed causing a reduction 
in ex-vessel prices of shark products. Overall, the small amount of LCS 
quota available and short season would result in negative economic 
impacts in the Gulf of Mexico region.
    The LCS quota in the North Atlantic region for the first trimester 
season of 2008 would be 10.7 mt dw. The ex-vessel prices only provide 
the value of LCS flesh in the North Atlantic region and not the value 
for shark fins, therefore an average of $18.43 was taken of the ex-
vessel price for shark fins in the South Atlantic and Gulf of Mexico 
regions to calculate approximate revenue from the available quota. The 
approximate value of the 10.7 mt dw quota allocation for the 2008 first 
trimester season in the North Atlantic region would be $13,415.
    Overall, the negative economic impact of the reduced LCS quota for 
the Gulf of Mexico region would result in $75,430 in reduced revenues 
for the first trimester of 2008. Due to the LCS closure in the South 
Atlantic region, a negative economic impact totaling $20,243 in lost 
revenues would occur. There were extra revenues received worth $337,903 
as a result of the extensive LCS overharvests in the South Atlantic and 
Gulf of Mexico regions. Since a majority of these overharvest landings 
were from state landings, particularly in the Gulf of Mexico region, 
many federal fishermen did not benefit from this overharvest revenue. 
Some of the impacts from these reduced revenues might be mitigated 
somewhat for vessels that can fish for SCS and pelagic sharks or in 
other HMS and non-HMS fisheries. However, these opportunities would 
likely be limited and result in additional costs associated with 
adjusting current fishing practices.
    With regards to SCS, alternative 1 would maintain existing 
procedures for addressing regional trimester over- and underharvests 
for SCS when establishing the regional quotas and seasons for the first 
trimesters of 2008. There were no overharvests of SCS in any region 
during the 2007 first trimester season. No change in economic impacts 
would be realized in the North Atlantic, South Atlantic, and Gulf of 
Mexico regions since these regions would be open, with ample quota, 
during the first trimester of 2008 under the no action alternative. 
Based on the ex-vessel price per pound per of SCS in the North 
Atlantic, South Atlantic, and Gulf of Mexico regions potential revenue 
for flesh would be $0.43, $0.55, and $0.53, respectively. Potential 
revenue from SCS may help offset lost revenue in the LCS fishery due to 
short seasons and a closure.
    NMFS does not prefer the no action alternative because the 
substantially shortened LCS season in the Gulf of Mexico region might 
lead to derby-style fishing and safety at sea concerns as well as 
decreased fishing efficiency with resulting decreased survival rates 
for bycatch. If the Gulf of Mexico region was open for five days as 
proposed under the no action alternative, overfishing could continue to 
occur leading to negative ecological impacts to shark species that are 
overfished.
    Alternative 2 would combine the North Atlantic, South Atlantic and 
Gulf of Mexico regions for the LCS fishery into one region. The 
adjusted quota for the one LCS region would be 78 mt dw, which is 239.8 
mt dw less than the base quota allocation in each region added together 
(317.8 mt dw). Based on total ex-vessel annual revenues in 2005 (Table 
6.3) of $0.48 per pound dress weight of flesh and $17.94 per pound of 
shark fins in all regions combined, the value of the 239.8 mt dw 
reduction from the baseline quota allocation in all the regions is 
approximately $109,349 for LCS flesh (95 percent of the quota weight) 
and $215,101 for shark fins (based on the 5 percent shark fin to 
carcass ratio). Therefore, the 2007 first trimester overharvest in the 
South Atlantic and Gulf of Mexico regions is estimated to have a direct 
revenue impact on the LCS commercial fishery, when combining the 
regions, of approximately $324,450. The value of the 78 mt dw combined 
quota that would allow the season to be open for six days is 
approximately $35,568 for LCS flesh (95 percent of the quota weight) 
and $69,966 for shark fins (based on the 5 percent shark fin to carcass 
ratio). Therefore, the estimated revenue for the LCS 2008 first 
trimester season under alternative 2, with all regions combined would 
be approximately $105,534. Derby style fishing conditions and safety at 
sea concerns may occur through the shortened season causing negative 
social impacts. The six day season may cause a temporary glut in the 
market and therefore a reduction in the ex-vessel price of shark 
products or less efficient fishing operations thus reducing the quality 
of the shark products landed. Under these conditions, it is likely the 
estimated revenue for all regions would be less than $105,534. 
Combining the regions would likely have negative economic impacts on 
regions that do not have sharks present year round. The North Atlantic 
region may be disadvantaged as a result of combining the three regions 
into one region. Dealers in all regions,

[[Page 55735]]

but particularly in the North Atlantic region, would also be affected, 
possibly even more so than vessels, as the likelihood of having shark 
products consistently would be decreased. Overall, negative economic 
impacts would result from the small amount of LCS quota available and 
the short season in all regions. Under alternative 2, the SCS fishery 
would remain the same as in the no action alternative and no adverse 
economic impacts are expected since these regions would be open, with 
ample quota, throughout the entire first trimester of 2008.
    NMFS did not prefer this alternative because negative consequences 
of establishing a single region combined with a substantially shortened 
season might include derby-style fishing and safety at sea concerns as 
well as decreased fishing efficiency with resulting decreased survival 
rates for bycatch. Additionally, negative ecological impacts to 
overfished shark species could occur if all regions were combined and 
opened for a short time period as proposed under Alternative 2.
    Alternative 3, the preferred alternative would close the LCS 
fishery in all regions until Amendment 2 to the HMS FMP is effective. 
The SCS fishery would be open in all three regions on January 1, 2008, 
and no adverse economic impacts are expected since these regions would 
be open, with ample quota, throughout the first trimester of 2008. 
Under this alternative, the North Atlantic, South Atlantic, and Gulf of 
Mexico regions would be closed to LCS fishing for entire first 
trimester season and possibly longer depending on when Amendment 2 
becomes effective. However, under the no action alternative, the South 
Atlantic region would be closed during the 2008 first trimester and the 
Gulf of Mexico region would only be open for five days starting January 
1. The North Atlantic region would be open for the entire 2008 first 
trimester season (although, from 2004-2007 only an average of 0.4 mt dw 
was landed in this region during the entire first trimester season). 
Because LCS are not typically in the North Atlantic region during the 
first trimester and due to the small landings in this region during the 
first trimester, it is not expected that the North Atlantic would 
benefit economically from the 10.7 mt dw of quota available for the 
2008 first trimester. Therefore, closing all three regions as proposed 
in the preferred alternative would not have a much greater economic 
impact than the no action alternative. The estimated revenue from the 
51 mt dw quota in the Gulf of Mexico for the 2008 first trimester 
season under alternative 1, would be approximately $75,430, which would 
be the approximate revenue lost due to all regions being closed to LCS 
fishing during the 2008 first trimester season. The South Atlantic 
region would also experience economic impacts associated with this 
alternative, however, these impacts would not be different from those 
described in the no action alternative. Atlantic shark fishermen may 
pursue other options as a result of closing the LCS fishery for the 
2008 first trimester including transferring fishing effort to other 
fisheries for which they are permitted, acquiring new permits to 
participate in other fisheries or relinquishing their permits and 
leaving the fishing industry.
    NMFS prefers this alternative because overall, the ecological 
benefits of keeping the LCS fishery closed in all regions until 
Amendment 2 to the HMS FMP is effective may outweigh the economic 
impacts associated with the closure due to the overfished status of 
sandbar and dusky sharks. The LCS closure would also provide positive 
ecological benefits to other shark species, along with any incidental 
and protected species.

List of Subjects in 50 CFR Part 635

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

    Dated: September 25, 2007.
William T. Hogarth
Assistant Administrator for Fisheries, 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) and (b)(1)(vi)(A) 
introductory text are revised to read as follows:


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 or 
closing any of the fishing seasons pursuant to paragraph (b)(1)(vi) of 
this section.
* * * * *
    (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 or closing any of the fishing seasons and 
relevant quotas in any region when there is limited available quota in 
one or more seasons.
* * * * *
[FR Doc. E7-19378 Filed 9-28-07; 8:45 am]
BILLING CODE 3510-22-S