[Federal Register Volume 72, Number 229 (Thursday, November 29, 2007)]
[Rules and Regulations]
[Pages 67580-67586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-23160]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 635

[Docket No. 070803437-7666-02]
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: Final rule.

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

SUMMARY: This final rule establishes the 2008 first trimester season 
commercial 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 action provides advance notice of quotas 
and season dates for the Atlantic commercial shark fishery. It also 
ensures the measures in this action are in place until they are 
replaced by those implemented under Amendment 2 to the Highly Migratory 
Species (HMS) Consolidated Fishery 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. However, if Amendment 2 to the 
HMS FMP is unexpectedly delayed beyond the end of the 2008 second 
trimester season, NMFS may consider a rulemaking for the 2008 third 
trimester seasons. NMFS would announce any additional action for the 
second and third seasons in a future Federal Register notice.

DATES: This rule is effective January 1, 2008. The Atlantic commercial 
shark fishing season opening and closing dates and quotas for the 2008 
first and second trimester seasons are provided in Tables 1 and 2, 
respectively, under SUPPLEMENTARY INFORMATION.

ADDRESSES: For copies of the Final Environmental Assessment/Regulatory 
Impact Review/Final Regulatory Flexibility Analysis (EA/RIR/FRFA), 
please write to Highly Migratory Species Management Division, 1315 
East-West Highway, Silver Spring, MD 20910, or at (301) 713-1917 (fax). 
Copies are also available from the HMS website at http://www.nmfs.noaa.gov/sfa/hms/ or from www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: LeAnn Southward Hogan or Michael Clark 
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). The Consolidated HMS FMP for Atlantic Sharks, Tunas, 
Swordfish and Billfish is implemented by regulations at 50 CFR part 
635.
    Currently, the Atlantic shark annual commercial 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 baseline 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 baseline 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.
    As stated in the proposed rule, existing regulations do not allow 
underharvests of pelagic sharks to be carried forward to the next 
fishing management period. Therefore, the 2008 first trimester pelagic 
shark quotas do not need to be reduced consistent with the current 
regulations at 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. The pelagic shark season would open on 
January 1, 2008 and would close when quotas are projected to be reached 
with a

[[Page 67581]]

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 Consolidated 
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.
    On October 1, 2007 (72 FR 55729), NMFS published a proposed rule 
that examined the regional adjusted quotas and proposed season lengths 
for the 2008 first trimester season for LCS, SCS and pelagic sharks 
managed under the Consolidated HMS FMP. NMFS analyzed three 
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 2007 first trimester season. Information regarding 
these alternatives was provided in the preamble of the proposed rule 
and is not repeated here.

Response to Comments

    Comments on the proposed rule are summarized below, together with 
NMFS' responses.
    Comment 1: NMFS received several comments in support of alternative 
2, which would combine the LCS regions and quotas and open the LCS 
season on January 1 through January 6.
    Response: NMFS does not prefer alternative 2 because of the 
negative consequences of establishing a single combined region with a 
substantially shortened season. These consequences include derby-style 
fishing and safety at sea concerns for all regions if fishermen have 
only six days to fish starting January 1, when weather conditions are 
potentially poor. Additionally, establishing a substantially shortened 
season (six days) and opening the waters in all regions could lead to 
decreased fishing efficiency and resultant decreased survival rates for 
bycatch. Also, the LCS overharvest that has occurred in recent years 
could continue if alternative 2 is implemented, causing negative 
ecological impacts through potential overharvests of overfished species 
in multiple regions.
    Furthermore, the six day season in alternative 2 may cause a 
temporary glut of shark products in the market. This glut would likely 
reduce the ex-vessel price of shark products. Additionally, as 
fishermen would likely try to land as much shark as possible in as 
short a time as possible, fishing operations would likely be 
inefficient, thus reducing the quality of the shark products landed. 
Overall, market gluts and reduced shark product quality would likely 
minimize any economic benefits fishermen would gain if the season were 
open for six days.
    Combining the regions would likely have negative economic impacts 
on regions that do no have sharks present year round. The North 
Atlantic region may be disadvantaged as a result of combining the three 
regions into one region because sharks are only present in this region 
certain times of the year. Dealers in all regions, but particularly in 
the North Atlantic regions, would also be affected, possibly even more 
so than vessels, as the likelihood of having quality, fresh shark 
products would be decreased.
    Comment 2: NMFS received a comment stating that NMFS has violated 
National Standards 1 and 2 of the Magnuson-Stevens Act.
    Response: National Standard 1 requires NMFS to establish 
conservation and management measures to prevent overfishing while 
achieving, on a continuing basis, the optimum yield from each fishery 
for the United States fishing industry. Because of the overfished 
nature of certain shark species and the recent overharvests experienced 
in this fishery, NMFS believes that optimum yield requires a closure as 
the available quota would result in derby fishing that may compromise 
safety and efficiency while potentially resulting in excessive fishing 
mortality. NMFS must close the LCS fishery in all regions during the 
2008 first trimester. The closure would also provide the most 
ecological benefits and help rebuild overfished sandbar and dusky shark 
populations, and reduce fishing pressure on other LCS species. 
Amendment 1 to the FMP for Atlantic Tunas, Swordfish, and Sharks 
established a rebuilding plan for LCS that incorporated the results of 
the 2002 LCS stock assessment and established optimum yield for the LCS 
fishery by setting baseline LCS quotas. The LCS closure may help offset 
the amount of overharvests that need to be accounted for in Amendment 2 
to the Consolidated HMS FMP to achieve optimum yield per the results of 
the 2006 LCS stock assessments.
    National Standard 2 requires that conservation and management 
measures be based upon the best scientific information available. The 
baseline LCS quotas and quota adjustments that NMFS proposed in this 
rulemaking were established in Amendment 1 to the FMP for Atlantic 
Tunas, Swordfish and Sharks and are based on the 2002 LCS stock 
assessment. Due to recent LCS overharvests during the first trimester 
season, the adjusted LCS quotas for the 2008 first trimester season are 
significantly reduced. The small amount of available LCS quota would 
lead to substantially shortened seasons or closures during the 2008 
first trimester season. Although the 2002 LCS stock assessment was the 
best available science when the current LCS baseline quotas were 
established, NMFS also considered the results of the 2006 LCS stock 
assessment when determining the most appropriate course of action for 
the LCS fishery in this rulemaking. This rulemaking does not propose 
changes to the LCS baseline quotas. Overall, the 2008 first trimester 
baseline quotas are based on the best available science when those 
quotas were established, which is the 2002 LCS stock assessment and the 
adjustments are based on the best available landings data in recent 
years. Changes to the LCS baseline quotas, as proposed in Amendment 2 
to the Consolidated HMS FMP, are based on the 2006 LCS stock 
assessment. The results from the 2006 LCS stock assessment were also 
considered as part of this rulemaking.
    Comment 3: NMFS received a comment stating that NMFS violated 
National Standard 4 of the Magnuson-Stevens Act by deducting state 
landings from federal quotas.
    Response: National Standard 4 requires that conservation and 
management measures shall not discriminate between residents of 
different States. If it becomes necessary to allocate or assign fishing 
privileges among various United States fishermen, such allocation shall 
be (A) fair and equitable to all such fishermen; (B) reasonably 
calculated to promote cooperation; and (C) carried out in such manner 
that no particular individual, corporation, or other entity acquires an 
excessive share of such privileges. This action does not discriminate 
between residents of different States because the LCS closure will 
apply to all regions and the SCS and pelagic shark fisheries will open 
in all regions on January 1, 2008. In addition, consistent with the 
regulations at 50 CFR 635.27(b)(1)(vi)(C), sharks taken and landed from 
state waters are counted against the fishery quota for the applicable 
region and time period. National Standard 3 states that fish stocks 
shall be managed as a unit throughout its range. Therefore, deducting 
state landings from federal quotas is necessary to manage stocks 
throughout the range and does not discriminate between residents of 
different states. Some residents may be impacted differently but this 
measure is needed to prevent overfishing. These landings are also 
included when

[[Page 67582]]

assessing the stock. The shark fishery is not the only fishery where 
NMFS deducts state landings from Federal quotas. Other fisheries in the 
southeast region such as snapper/grouper and reef fish fisheries also 
deduct state landings from federal quotas, consistent with 50 CFR 
622.42. However, to improve consistency between state and federal 
regulations, NMFS is actively working with the Atlantic States Marine 
Fishery Commission and, as part of Amendment 2 to the Consolidated HMS 
FMP, wrote letters to all states comparing their regulations with 
Federal regulations.
    Comment 4: NMFS received a comment stating that the Agency failed 
to monitor the quota and the 2008 LCS quota should default to the 2003 
emergency rule LCS quota of 1,714 mt dw.
    Response: The draft Amendment 2 to the Consolidated HMS FMP 
includes measures to improve reporting and quota monitoring. Such 
measures are not addressed in this rulemaking which only establishes 
quotas and season lengths based on adjustments to baseline quotas. NMFS 
used the best information available when it became available to 
establish the quotas and season lengths in this rulemaking. The 2003 
emergency rule LCS quota was put into place temporarily while Amendment 
1 to the FMP for Atlantic Tunas, Swordfish and Sharks was being 
finalized. The LCS baseline quotas that were finalized in Amendment 1 
to the FMP for Atlantic Tunas, Swordfish and Sharks were based on the 
best available science at the time, which was the 2002 LCS stock 
assessment. Therefore, NMFS would not default to the 2003 emergency 
rule LCS quota because that quota was temporary and did not include the 
full range of analyses and public comment that was included in 
Amendment 1 to the FMP for Atlantic Tunas, Swordfish and Sharks. NMFS 
accounts for over- and underharvests when adjusting the trimester 
season quotas and has for a number of years, and this rule does not 
propose a change to this management measure.
    Comment 5: NMFS received a comment stating that the overall quota 
for all shark species should be zero.
    Response: The purpose of this rulemaking is to adjust trimester 
quotas based on over- and underharvests from the previous year, not to 
reanalyze the overall shark quotas and management measures, which is 
being done in Amendment 2 to the Consolidated HMS FMP. NMFS is 
reexamining quotas and other management measures in Amendment 2 to the 
Consolidated HMS FMP.
    Comment 6: NMFS received a comment stating that NMFS has created an 
economic disaster from failure to manage the fishery and that the 
Secretary of Commerce should provide economic relief to the small 
businesses affected by shark quota reductions.
    Response: Under the Magnuson-Stevens Act at Sec. 312 (16 U.S.C. 
1861a), at the request of a Governor, the Secretary of Commerce can 
determine whether there is a commercial fishery failure due to a 
fishery resource disaster as a result of (A) natural causes; (B) man-
made causes beyond the control of fishery managers to mitigate through 
conservation and management measures, including regulatory restrictions 
(including those imposed as a result of a judicial action) imposed to 
protect human health or the marine environment; or (C) undetermined 
causes. Due to the language contained in the Magnuson-Stevens Act, NMFS 
is currently reviewing these criteria and anticipates doing a 
rulemaking on them in the near future. At this time, because NMFS has 
not received a request from a Governor, NMFS is not considering a 
disaster determination for the Atlantic shark fishery.

Changes to the Proposed Rule

    NMFS is not changing the proposed rule published on October 1, 2007 
(72 FR 55729) based upon public comments NMFS received for the 
aforementioned reasons. As a result, the provisions published in the 
proposed rule are adopted as final.

Final Fishing Season Notification and Quotas for the 2008 First 
Trimester Season

    The final opening and closing dates and quotas for the 2008 first 
and second trimester season for LCS, SCS, and pelagic sharks are 
provided in Table 1 and Table 2, respectively.

  Table 1. Final Seasons and Quotas for LCS, SCS and Pelagic Sharks for
                      the First Trimester of 2008.
             All quotas are in metric tons, dressed weight.
------------------------------------------------------------------------
   Species                                                    2008 1st
    Group          Region         2008 1st      2008 1st        Tri.
   (Annual      (Allocation)    Tri. opening  Tri. closing    Adjusted
   Quota)                           date          date          Quota
------------------------------------------------------------------------
Large         Gulf of Mexico              Closed            N/A
 Coastal      (52 %)
 Sharks
(1,017)
             ------------------
              South Atlantic                                ............
              (41 %)
             ------------------
              North Atlantic                                ............
              (7 %)
------------------------------------------------------------------------
Small         Gulf of Mexico    January 1,    To be         73.2
 Coastal      (48 %)             2008          determined   (161,377 lb
 Sharks                                        as            dw)
(454)                                          necessary
             ------------------                            -------------
              South Atlantic    ............  ............  354.9
              (49 %)                                        (782,413 lb
                                                             dw)
             ------------------                            -------------
              North Atlantic    ............  ............  19.3
              (3 %)                                         (42,549 lb
                                                             dw)
------------------------------------------------------------------------
Blue Sharks   No regional       January 1,    To be         91.0
(273)          quotas            2008          determined   (200,618 lb
                                               as            dw)
                                               necessary
-------------                                              -------------
Porbeagle     ................  ............  ............  30.7
 sharks                                                     (67,681 lb
(92)                                                         dw)
-------------                                              -------------

[[Page 67583]]

 
Pelagic       ................  ............  ............  162.7
 Sharks                                                     (358,688 lb
 other than                                                  dw)
 Porbeagle
 or blue
(488)
------------------------------------------------------------------------


  Table 2. Final Seasons and Quotas for LCS, SCS and Pelagic Sharks for
                      the Second Trimester of 2008.
             All quotas are in metric tons, dressed weight.
------------------------------------------------------------------------
   Species                                                    2008 2nd
    Group          Region         2008 2nd      2008 2nd        Tri.
   (Annual      (Allocation)    Tri. opening  Tri. closing    Adjusted
   Quota)                           date          date          Quota
------------------------------------------------------------------------
Large         Gulf of Mexico              CLOSED            N/A
 Coastal      (52 %)
 Sharks
(1,017)
             ------------------
              South Atlantic                                ............
              (41 %)
             ------------------
              North Atlantic                                ............
              (7 %)
------------------------------------------------------------------------
Small         Gulf of Mexico    May 1, 2008   To be         72.6
 Coastal      (48 %)                           determined   (160,054 lb
 Sharks                                        as            dw)
(454)                                          necessary
             ------------------                            -------------
              South Atlantic    ............  ............  74.1
              (49 %)                                        (163,361 lb
                                                             dw)
             ------------------                            -------------
              North Atlantic    ............  ............  12.0
              (3 %)                                         (26,455 lb
                                                             dw)
------------------------------------------------------------------------
Blue Sharks   No regional       May 1, 2008   To be         91.0
(273)          quotas                          determined   (200,618 lb
                                               as            dw)
                                               necessary
-------------                                              -------------
Porbeagle     ................  ............  ............  30.7
 sharks                                                     (67,681 lb
(92)                                                         dw)
-------------                                              -------------
Pelagic       ................  ............  ............  162.7
 Sharks                                                     (358,688 lb
 other than                                                  dw)
 Porbeagle
 or blue
(488)
------------------------------------------------------------------------

Classification

    NMFS has 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 final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    In compliance with Section 604 of the Regulatory Flexibility Act, a 
Final Regulatory Flexibility Analysis (FRFA) was prepared for this 
rule. The FRFA analyzes the anticipated economic impacts of the 
preferred actions and any significant alternatives to the final rule 
that could minimize economic impacts on small entities. A summary of 
the FRFA is below. The full FRFA and analysis of economic and 
ecological impacts, are available from NMFS (see ADDRESSES).
    Section 604(a)(1) of the Regulatory Flexibility Act requires the 
Agency to state the objective and need for the rule. The objective of 
the rulemaking is to ensure that the season lengths and quotas for the 
first and second trimester seasons of 2008 for LCS, SCS, and pelagic 
sharks are in place by January 1, 2008, until they are replaced by 
those implemented under draft Amendment 2 of the Consolidated HMS FMP. 
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 to the Consolidated HMS FMP is finalized 
after May 1, 2008, the start of the second trimester season. This rule 
does not change the overall annual base quotas.
    Section 604(a)(2) of the Regulatory Flexibility Actrequires the 
Agency to summarize significant issues raised by the public in response 
to the Initial Regulatory Flexibility Analysis (IRFA), a summary of the 
Agency's assessment of such issues, and a statement of any changes made 
as a result of the comments. The IRFA was done as part of the draft EA 
for the 2008 first trimester season Atlantic commercial shark 
management measures. NMFS did not receive any comments specific to the 
IRFA. However, NMFS did receive comments related to the overall 
economic impacts of the proposed rule. Those comments and NMFS's 
responses to them are mentioned above in the preamble for this rule.
    Section 604(a)(3) of the Regulatory Flexibility Act requires the 
Agency to describe and provide an estimate of the number of small 
entities to which the rule will apply. This rule could directly affect 
commercial shark fishermen on the Atlantic Ocean in the United States. 
NMFS considers all HMS permit holders to be small entities because they 
either had gross receipts less than $3.5 million for fish-harvesting, 
gross receipts less than $6.0 million for charter/party boats, or 100 
or fewer employees for wholesale dealers. These

[[Page 67584]]

are the Small Business Administration's size standards for defining a 
small versus large business entity in this industry. 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. Other small entities 
involved in HMS fisheries such as processors, bait houses, and gear 
manufacturers might also be indirectly affected by the final 
regulations. More information regarding the number of small entities 
involved in the fishery and their locations can be found in Chapters 3 
and 6 of Amendment 2 to the Consolidated HMS FMP.
    Section 604(a)(4) of the Regulatory Flexibility Act requires the 
Agency to describe the projected reporting, recordkeeping, and other 
compliance requirements of the final rule, including an estimate of the 
classes of small entities which would be subject to the requirements of 
the report or record. None of the alternatives considered for this 
final rule would result in additional reporting, recordkeeping, and 
compliance requirements.
    Section 604(a)(5) of the Regulatory Flexibility Act requires the 
Agency to describe the steps taken to minimize the significant economic 
impact on small entities consistent with the stated objectives of 
applicable statutes. Additionally, the Regulatory Flexibility Act (5 
U.S.C. 603(c)(1)-(4)) lists four general categories of ``significant'' 
alternatives that would assist an agency in the development of 
significant alternatives. These categories of alternatives are:
     Establishment of differing compliance or reporting 
requirements or timetables that take into account the resources 
available to small entities;
     Clarification, consolidation, or simplification of 
compliance and reporting requirements under the rule for such small 
entities;
     Use of performance rather than design standards; and
     Exemptions from coverage of the rule for small entities.
    As noted earlier, NMFS considers all permit holders in this fishery 
to be small entities. In order to meet the objectives of this final 
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 final rulemaking and provides justification for selection of the 
preferred alternatives 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 Consolidated HMS FMP effective and maintain 
modified status quo for SCS (alternative 3, preferred). NMFS preferred 
alternative 3 because it would provide the most ecological benefits to 
overfished sandbar and dusky shark populations and reduce fishing 
pressure on other LCS species. In addition, the ecological benefits of 
keeping the LCS fishery closed in all regions outweighs the potential 
economic impacts associated with the closure.
    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 species compared to the preferred 
alternative because it would allow the LCS season to open in the Gulf 
of Mexico and North Atlantic regions for a short time period. As 
described below, this alternative would also result in derby fishing 
and market gluts. It is also important to note that 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. Because of this small 
2008 adjusted quota, no fishing season is preferred due to safety at 
sea concerns, potential derby fishing conditions and further 
overharvests of overfished shark species. Therefore, under this 
alternative, the South Atlantic region would be closed during the 2008 
first trimester season. 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 closure would lead to 
a loss in revenue of 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). While these revenue reductions alone may 
not appear to be significant, it should be noted that the 2007 first 
trimester season in the South Atlantic region was also closed. 
Therefore, the 2008 first trimester closure would be the second 
consecutive year this region was closed, possibly leading to 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 2006 ex-vessel 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).
    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, and therefore, a reduction in the ex-vessel price of 
shark products or less

[[Page 67585]]

efficient fishing operations thus reducing the quality of the shark 
products landed. Overall, NMFS expects that the small amount of LCS 
quota available and short season would likely 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 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 adjusted quota for the 2008 first trimester 
season in the North Atlantic region would be $13,415.
    Under alternative 1, the estimated total value of the adjusted 2008 
first trimester LCS quota is $75,430 for the Gulf of Mexico region and 
$13,415 for the North Atlantic region. Due to the LCS closure in the 
South Atlantic region, under alternative 1, a negative economic impact 
totaling $20,243 in lost revenues would occur. The estimated total 
overall revenue under alternative 1 for all regions would be $68,602. 
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 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.
    Alternative 2 would combine the North Atlantic, South Atlantic and 
Gulf of Mexico regions for the LCS fishery into one region. Combining 
the 2008 first trimester baseline quota for all three regions would 
result in a baseline quota of 317.8 mt dw. Accounting for the 2007 
first trimester overharvests in all three regions of 239.8 mt dw, would 
result in an adjusted quota of 78 mt dw. NMFS used the 2005 total ex-
vessel annual revenue data for these calculations because region 
specific data was not available for all regions in 2006. Based on total 
ex-vessel annual revenues in all regions combined in 2005 of $0.48 per 
pound dress weight of flesh and $17.94 per pound of shark fins, 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 as a result of the 
shortened season causing negative social impacts. The six day season 
may cause a temporary glut of shark products 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, 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 short season in all regions. 
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. 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.
    Alternative 3, the preferred alternative would close the LCS 
fishery in the North Atlantic, South Atlantic and Gulf of Mexico 
regions for the entire 2008 first and second trimester seasons. The SCS 
and pelagic shark fisheries 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. If Amendment 2 to the Consolidated HMS FMP is not 
finalized and effective before the start of the 2008 second trimester 
season the SCS and pelagic shark fisheries will open in all regions on 
May 1, 2008 with the baseline quotas.
    Closing the LCS fishery in all three regions would have slightly 
more negative economic impacts than the no action alternative but this 
was chosen due to the result in positive ecological impacts for 
overfished sandbar and dusky sharks, protected species and other LCS 
species compared to the no action alternative. Under this alternative, 
the South Atlantic region would be closed during the 2008 first 
trimester season similar to alternative 1. However, unlike alternative 
1, the Gulf of Mexico region would be closed. The estimated lost 
revenue as a result of this closure 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 North 
Atlantic region would also be closed under this alternative but this 
closure is not expected to have a significant economic impact because 
LCS are not typically in the North Atlantic region during the first 
trimester. 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. From 2004-2007 only an average of 0.4 mt dw of LCS was 
landed in this region during the entire first trimester season. 
Therefore, closing all three regions to LCS fishing as in the final 
rule would have only a slightly different economic impact than the no

[[Page 67586]]

action alternative. Atlantic shark fishermen may pursue other options 
as a result of closing the LCS fishery for the 2008 first and second 
trimesters 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.

List of Subjects in 50 CFR Part 635

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

    Dated: November 26, 2007.
Samuel D. Rauch III
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

0
For reasons set out in the preamble, 50 CFR part 635 is amended as 
follows:

PART 635--ATLANTIC HIGHLY MIGRATORY SPECIES

0
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.

0
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) * * *
    (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. E7-23160 Filed 11-28-07; 8:45 am]
BILLING CODE 3510-22-S