[Federal Register Volume 73, Number 32 (Friday, February 15, 2008)]
[Proposed Rules]
[Pages 8838-8843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2895]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 680

[Docket No. 070718364-7908-02]
RIN 0648-AV19


Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea 
and Aleutian Islands Crab Rationalization Program

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

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS proposes regulations implementing Amendment 25 to the 
Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner 
Crabs (FMP) and a provision of the Coast Guard and Maritime 
Transportation Act of 2006 (Coast Guard Act). These proposed 
regulations would amend the Crab Rationalization Program. Amendment 25 
to the FMP satisfies the Magnuson-Stevens Fishery Conservation and 
Management Reauthorization Act of 2006 requirement for the Secretary of 
Commerce to amend the FMP to authorize conversion of catcher vessel 
owner quota shares and processor quota shares to newly created 
converted catcher processor owner quota shares. The Secretary approved 
Amendment 25 on April 12, 2007. The Coast Guard Act mandates the 
Secretary to issue processing quota share to Blue Dutch, LLC, under 
specific conditions. This proposed action is necessary to implement 
Amendment 25 and the Coast Guard Act. This action is intended to 
promote the goals and objectives of the Magnuson-Stevens Fishery 
Conservation and Management Act, the Coast Guard Act, the FMP, and 
other applicable law.

DATES: Comments must be received no later than March 17, 2008.

ADDRESSES: Send comments to Sue Salveson, Assistant Regional 
Administrator, Sustainable Fisheries Division, Alaska Region, NMFS, 
Attn: Ellen Sebastian. You may submit comments, identified by ``RIN 
0648-AV19'', by any one of the following methods:
     Electronic Submissions: Submit all electronic public 
comments via the Federal eRulemaking Portal website at http://www.regulations.gov.
     Mail: P. O. Box 21668, Juneau, AK 99802.
     Fax: (907) 586-7557.
     Hand delivery to the Federal Building: 709 West 9\th\ 
Street, Room 420A, Juneau, AK.
    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 (e.g., name, address) 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 portable document file (pdf) formats only.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
rule may be submitted to NMFS at the above address, and by email to 
[email protected] or fax to 202-395-7285.
    Copies of Amendment 25 and the Regulatory Impact Review (RIR) for 
this action may be obtained from the NMFS Alaska Region at the address 
above or from the Alaska Region website at http://www.fakr.noaa.gov/sustainablefisheries.htm.

FOR FURTHER INFORMATION CONTACT: Glenn Merrill, 907-586-7228, 
[email protected] or Gretchen Harrington, 907-586-7228, 
[email protected].

SUPPLEMENTARY INFORMATION: The king and Tanner crab fisheries in the 
exclusive economic zone of the Bering Sea/Aleutian Islands are managed 
under the FMP. The FMP was prepared by the North Pacific Fishery 
Management Council (Council) under the Magnuson-Stevens Fishery 
Conservation and Management Act as amended by the Consolidated 
Appropriations Act of 2004 (Public Law 108-199, section 801). 
Amendments 18 and 19 to the FMP amended the FMP to include the Crab 
Rationalization Program. A final rule implementing these amendments was 
published on March 2, 2005 (70 FR 10174).

Crab Rationalization Program (Program)

    To implement the Program in 2005, NMFS initially issued processing 
quota shares (PQS), catcher vessel owner quota share (CVO QS), and 
catcher processor owner quota share (CPO QS) to eligible applicants. 
NMFS issued PQS and QS for nine crab fisheries in the BSAI. In 2006, 
NMFS initially issued Bristol Bay red king crab (Paralithodes 
camtschaticus) and snow crab (Chionoecetes opilio) PQS to the Blue 
Dutch, LLC, under the requirements of section 417 of the Coast Guard 
Act.
    CVO QS represents an exclusive but revocable privilege that 
authorizes the holder to receive an annual allocation to harvest a 
specific percentage of the total allowable catch (TAC) from a fishery. 
The annual allocations of TACs, in pounds, are referred to as 
individual fishing quotas (IFQs).
    PQS represents an exclusive but revocable privilege to receive 
deliveries of a specific portion of the annual TAC from a fishery. An 
annual allocation of PQS is referred to as individual processing quota 
(IPQ) and expressed in pounds of crab. Harvesters holding CVO IFQ must 
deliver a portion of their IFQ to processors with a like amount of IPQ 
available.
    For most crab fisheries, CVO QS and PQS is designated for specific 
geographic regions. Crab harvested with regionally designated CVO QS is 
required to be delivered to a processor in the designated region. 
Likewise, a processor with regionally designated PQS is required to 
accept delivery of and process crab in the designated region. Two 
regional designations were created for the snow crab and Bristol Bay 
red king crab fisheries. The North Region consists of all areas in the 
Bering Sea north of 56[deg]20' N. latitude. The South Region is all 
other areas. The regional designation of CVO QS and PQS preserves the 
historic geographic distribution of landings in the fisheries.
    CPO QS represents an exclusive but revocable privilege to harvest a 
percentage of the TAC and process that crab onboard. Under the Program, 
CPO QS does not have regional designations and is not required to be 
delivered to a processor holding available IFQ.

[[Page 8839]]

Coast Guard Act

    On July 11, 2006, the President signed the Coast Guard Act which 
contained in section 417 a provision mandating the Secretary of 
Commerce to issue PQS for the Bristol Bay red king crab and the Bering 
Sea snow crab fisheries to Blue Dutch, LLC, under two specific 
conditions.
    First, NMFS must issue Blue Dutch PQS equal to 0.75 percent of the 
total number of PQS units. NMFS issued an initial administrative 
determination on July 31, 2006, to issue Blue Dutch 3,015,229 units of 
Bristol Bay red king crab PQS and 7,516,253 units of snow crab PQS. 
NMFS assigned a regional designation to the PQS units issued to Blue 
Dutch according to the procedures established in the regulations at 50 
CFR 680.40(b)(2)(iv).
    Second, NMFS must issue IPQ for that PQS whenever the TAC for that 
fishery is more than 2 percent higher than the most recent TAC in 
effect for that fishery prior to September 15, 2005. The TAC used for 
this calculation is the total TAC, which includes the CDQ allocation. 
Accordingly, NMFS determined that it will issue Bristol Bay red king 
crab IPQ to Blue Dutch when the TAC for that fishery is greater than 
15,732,480 lb (7,136.1 mt). NMFS will issue snow crab IPQ to Blue Dutch 
when the TAC for that fishery is greater than 21,350,640 lb (9,684.5 
mt). This proposed rule is necessary to specify in regulations the 
statutory thresholds for annually issuing IPQ to Blue Dutch to ensure 
the regulations implementing the Program conform to the Coast Guard 
Act. The proposed rule prohibits the transfer of the PQS units issued 
under the Coast Guard Act because the Act explicitly requires NMFS to 
issue the PQS to Blue Dutch.

Amendment 25

    On January 12, 2007, the President signed the Magnuson-Stevens 
Fishery Conservation and Management Reauthorization Act of 2006 (MSRA, 
Public Law 109-479), which added a new requirement in section 122(a) 
for the Secretary of Commerce, not later than 90 days after the date of 
enactment of that act, to amend the FMP to modify the Program to 
authorize conversion of North CVO QS and North PQS to newly created 
converted CPO QS.
    Amendment 25 to the FMP complies with the MSRA by amending the FMP 
to authorize an eligible entity and its commonly owned affiliates to 
combine North PQS and North CVO QS and exchange these shares for newly 
created converted CPO QS. While the MSRA does not specifically define 
which fisheries are subject to this provision, converted CPO QS would 
be created for only the snow crab and Bristol Bay red king crab 
fisheries, because these were the only fisheries for which the eligible 
entities were initially issued North PQS and North CVO QS, as specified 
in the MSRA.
    NMFS published the notice of availability for Amendment 25 on 
February 5, 2007 (72 FR 5255), with a public comment period that closed 
on April 6, 2007. NMFS received one public comment on Amendment 25. The 
commenter opposed Amendment 25 because she is quite concerned about the 
legislation. The Secretary of Commerce approved Amendment 25 on April 
12, 2007. This proposed rule is necessary to implement Amendment 25.
    This proposed rule would authorize two types of quota share 
conversions and define the entities eligible to make those conversions.
    First, an eligible entity holding PQS, along with its commonly 
owned affiliates, could combine its North CVO QS for Bristol Bay red 
king crab or snow crab with its North PQS for that fishery and exchange 
these shares for converted CPO QS on an annual basis. Entities could do 
this under the following two conditions: (1) if NMFS initially issued 
the entity both CPO QS and PQS under the Program, and that PQS, in 
combination with the PQS of its commonly owned affiliates, is less than 
7 percent of the total PQS pool for that year; or (2) if NMFS initially 
issued the entity CPO QS under the Program and PQS under the Coast 
Guard Act. An eligible entity would be limited to converting only the 
PQS that it, along with its commonly owned affiliates, was initially 
issued by NMFS.
    Second, an eligible entity holding CVO QS, along with its commonly 
owned affiliates, could combine its North PQS for Bristol Bay red king 
crab or snow crab with its North CVO QS for that fishery and exchange 
these shares for converted CPO QS on an annual basis. The only entity 
that could do this would be an entity to which NMFS initially issued 
CPO QS and PQS under the Program, and that PQS, in combination with the 
PQS of its commonly owned affiliates, is more than 7 percent of the 
total PQS pool for that year. This eligible entity would be limited to 
converting only the CVO QS that it, along with its commonly owned 
affiliates, was initially issued by NMFS.
    According to the NMFS Official Record, three individual entities 
are eligible for these new provisions. Yardarm Knot, Inc., and Blue 
Dutch, LLC, would be eligible for the first type of conversion. Trident 
Seafoods, Inc., would be eligible for the second type of conversion. 
These entities would elect on an annual basis whether to receive 
converted CPO QS and the amount of North CVO QS and North PQS they wish 
to convert by completing the annual application for converted CPO QS/
IFQ permit and submitting that application along with the annual 
application for crab IFQ/IPQ permit by August 1 for that crab fishing 
year.
    Entities applying for a converted CPO QS permit and resulting CPO 
IFQ would be required to provide information on any person who is 
affiliated, as the term ``affiliation'' is defined at Sec.  680.2, to 
that entity and indicate the amount of PQS and CVO QS in either the BBR 
or BSS crab QS fishery with a north region designation for issuance as 
converted CPO QS.
    The proposed rule specifies a number of provisions for converted 
QS/IFQ to conform with the MSRA and the Program's implementing 
regulations. Converted CPO QS and the resulting CPO IFQ would not be 
transferable. This restriction on transfers is consistent with the MSRA 
eligibility standards that only entities that meet the specific 
requirements of the Act are eligible to receive converted CPO QS. 
However, CPO IFQ derived from converted CPO QS may be issued to a 
cooperative.
    The proposed rule specifies that (1) eligible entities would 
receive one unit of North CPO QS in exchange for one unit of North CVO 
QS and 0.9 units of North PQS and (2) the amount of IFQ derived from 
the converted CPO QS issued to each entity could not exceed one million 
pounds per fishery during any calendar year.
    Additionally, the proposed rule would implement the area of 
validity in section 122(a)(4) of the MSRA by requiring that any crab 
harvested under a CPO IFQ permit derived from converted CPO QS must be 
offloaded in the North Region, defined in the Program as the Bering Sea 
subarea north of 56[deg]20' N. latitude.
    Converting PQS and CVO QS to converted CPO QS would allow entities 
to harvest and process crab onboard a catcher processor. Conversion 
could reduce each eligible entity's operating costs associated with 
purchasing crab, processing crab on land or in a stationary floater 
processor, and complying with the Program's arbitration system. NMFS 
can not predict the annual amount of converted CPO QS that would be 
annually issued because the participants would annually elect to 
exercise this provision and need not request conversion of all CVO QS 
and PQS held.

[[Page 8840]]

    Sections 122(b) and (c) of the MSRA include additional requirements 
for fees and off-loading for converted CPO QS; however, the statute 
does not require the Secretary of Commerce to implement these 
requirements and therefore they are not part of Amendment 25 and will 
not be implemented by Federal rulemaking. The MSRA requires the holder 
of converted CPO QS to pay a fee of five percent of the ex-vessel value 
of the crab harvested with those shares to any local governmental 
entities in the North Region, if the PQS used to produce the converted 
CPO QS was originally derived from the processing activities that 
occurred in a community under the jurisdiction of those local 
governmental entities. The State of Alaska may collect from the holder 
of the converted CPO QS a fee of one percent of the ex-vessel value of 
the crab harvested with those shares. Additionally, crab harvested with 
converted CPO QS shall be off-loaded in those communities receiving the 
local governmental entities fee revenue.
    Section 122(d) of the MSRA also provides that, as part of its 
periodic review of the Program, the North Pacific Fishery Management 
Council may review the effects on communities in the North Region of 
allowing the conversion to CPO QS. Under this section, if the Council 
determines that Amendment 25 adversely affects the communities, the 
Council may recommend to the Secretary of Commerce, and the Secretary 
may approve, changes to the Program necessary to mitigate those adverse 
effects.
    Section 122(e) of the MSRA requires an additional FMP amendment and 
rule making to modify the use caps for processing North Region snow 
crab. Under this section, custom processing arrangements do not count 
against any use cap for the processing of snow crab in the North Region 
by a shore-based crab processor. NMFS issued an enforcement policy on 
January 19, 2007, that provides guidance to the industry on NMFS' 
enforcement and interpretation of this section, which is effective 
until superseded by future rulemaking. At its December meeting, the 
Council adopted Amendment 27 to the FMP that would implement this MSRA 
provision. NMFS intends to publish a proposed rule for Amendment 27 in 
the spring of 2008.

Classification

    The Assistant Administrator for Fisheries, NOAA, has determined 
that this proposed rule is consistent with the Magnuson-Stevens Fishery 
Conservation and Management Act and other applicable laws.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    An Environmental Impact Statement/Regulatory Impact Review/Initial 
Regulatory Flexibility Analysis/Social Impact Assessment was prepared 
for the Program that describes the management background, the purpose 
and need for the Program, the management alternatives, and the 
environmental, social, and economic impacts (see ADDRESSES). With this 
proposed rule, NMFS is continuing to implement the Program.
    Department of Commerce Chief Counsel for Regulations has certified 
to the Small Business Administration, under Section 605(b) of the 
Regulatory Flexibility Act, that this proposed rule would not have a 
significant economic impact on a substantial number of small entities. 
NMFS finds that the proposed action is not likely to have the potential 
to have a significant economic impact on any small entities 
participating in these fisheries because no small entities will be 
directly regulated by this action.
    Section 122(a) of the MSRA defines the entities eligible to elect 
to exercise this provision. According to the NMFS Official Record, 
three individual entities are eligible under the MSRA for these new 
provisions; Yardarm Knot, Inc., Blue Dutch, LLC, and Trident Seafoods 
Corporation. These three entities do not qualify as small entities 
according to the Small Business Administration criteria.
    The Small Business Administration has established size criteria for 
all major industry sectors in the United States, including fish 
harvesting and fish processing businesses. A business involved in fish 
harvesting is a small business if it is independently owned and 
operated and not dominant in its field of operation (including its 
affiliates) and if it has combined annual receipts not in excess of $4 
million for all its affiliated operations worldwide. A seafood 
processor is a small business if it is independently owned and 
operated, not dominant in its field of operation, and employs 500 or 
fewer persons on a full-time, part-time, temporary, or other basis, at 
all its affiliated operations worldwide. A business involved in both 
the harvesting and processing of seafood products is a small business 
if it meets the $4 million criterion for fish harvesting operations.
    Yardarm Knot and its affiliates own two large catcher processors, 
the Highland Light and the Westward Wind. The Highland Light primarily 
targets pollock, and the Westward Wind participates in the Bristol Bay 
red king crab and Bering Sea snow crab and Tanner crab fisheries. In 
addition, Yardarm Knot operates a salmon processing plant in Naknek 
that employs up to 450 people during the peak season. Yardarm Knot 
substantially exceeds the 500 employee threshold applicable to shore-
based processing entities.
    Blue Dutch operates vessels in the crab and groundfish fisheries in 
the North Pacific. Blue North Fisheries (an affiliate of Blue Dutch) 
has a fleet of seven catcher processors, ranging in size from 124 ft to 
180 ft. The fleet primarily participates in the hook-and-line Pacific 
cod fishery in the Bering Sea. Since Blue Dutch operates no shore-based 
facilities, it is not regulated by this action as a shore-based 
facility. Instead it is subject to regulation as an at-sea operation 
and as a catcher vessel operation. Catch by Blue Dutch and its 
affiliates substantially exceeds the $4.0 million annual gross receipts 
threshold applicable to at-sea operations and catcher vessels.
    Trident Seafoods operates 3 factory trawlers that primarily target 
pollock in the Bering Sea. Trident also owns seven at-sea processors 
that produce salmon, herring, crab, and groundfish products, eleven 
catcher vessels that target pollock and Pacific cod, and five catcher 
vessels that primarily catch Bristol Bay red king crab, Bering Sea snow 
crab, and Tanner crab (C. bairdi). Trident operates large shore-side 
processing plants in Akutan, St. Paul, Kodiak, and Sand Point, Alaska, 
in addition to smaller plants in other Alaska communities. The Akutan 
facility is the largest seafood processing plant in North America, and 
processes pollock, crab, and halibut. The St. Paul plant primarily 
processes crab, and the Sand Point and Kodiak facilities process 
Pacific cod, sablefish, crab, halibut, pollock, salmon, and other 
groundfish. Trident's corporate offices are located in Seattle, 
Washington, and the company also operates fish processing facilities in 
Seattle, Anacortes, and Bellingham, Washington; Motley, Minnesota; and 
Newport, Oregon. Trident substantially exceeds the 500 employee 
threshold criterion applicable to shore-based processors.
    A Regulatory Impact Review was prepared to assess all costs and 
benefits of available regulatory alternatives. The Regulatory Impact 
Review describes the potential size, distribution, and magnitude of the 
economic impacts that this action may be expected to have. Copies of 
the RIR prepared for this proposed rule are available from NMFS (see 
ADDRESSES).

[[Page 8841]]

Collection-of-Information

    This proposed rule contains a collection-of-information requirement 
subject to review and approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act (PRA). This requirement has 
been submitted to OMB for approval. Public reporting burden for annual 
application for converted CPO QS and CPO IFQ permit is estimated to 
average 30 minutes 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.
    Public comment is sought regarding whether (1) this proposed 
collection-of-information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; the accuracy of the burden estimate; (2) ways 
to enhance the quality, utility, and clarity of the information to be 
collected; and (3) ways to minimize the burden of the collection-of-
information, including through the use of automated collection 
techniques or other forms of information technology. Send comments on 
these or any other aspects of the collection-of-information to the 
National Marine Fisheries Service (see ADDRESSES), and e-mail to 
[email protected], or fax to (202) 395-7285.
    Notwithstanding 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.

List of Subjects in 50 CFR Part 680

    Alaska, Fisheries, Recordkeeping and reporting requirements.

    Dated: February 11, 2008.
Samuel D. Rauch III
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
    For the reasons set out in the preamble, 50 CFR part 680 is 
proposed to be amended as follows:

PART 680--SHELLFISH FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF 
ALASKA

    1. The authority citation for 50 CFR part 680 is revised to read as 
follows:

    Authority: 16 U.S.C. 1862; Pub. L. 109-241; Pub. L 109-479.
    2. In Sec.  680.2, add the definition of ``Converted CPO QS'' in 
alphabetical order to read as follows:


Sec.  680.2  Definitions.

* * * * *
    Converted CPO QS means CPO QS for the BBR and BSS crab QS fisheries 
that is issued to the entities defined in Sec.  680.40(c)(5)(ii), 
(c)(5)(iii), or (c)(5)(iv) based on the procedures established in Sec.  
680.40(c)(5).
* * * * *
    3. In Sec.  680.4, revise paragraph (b)(1) and add paragraphs 
(b)(3) and (n) to read as follows:


Sec.  680.4  Permits.

* * * * *
    (b) * * *
    (1) Crab QS is issued by the Regional Administrator to persons who 
qualify for an initial allocation under Sec.  680.40 or receive QS by 
transfer under Sec.  680.41. Once issued, a crab QS permit is valid 
until modified under paragraphs (b)(2) or (b)(3) of this section, or by 
transfer under Sec.  680.41; or until the permit is revoked, suspended, 
or modified pursuant to Sec.  679.43 of this chapter or under 15 CFR 
part 904. To qualify for a crab QS permit, the applicant must be a U.S. 
citizen.
* * * * *
    (3) A converted CPO QS permit is valid until the end of the crab 
fishing year for which the permit is issued.
* * * * *
    (n) Contents of annual application for converted CPO QS/IFQ permit. 
(1)(i) A complete application must be received by NMFS no later than 
August 1 of the crab fishing year for which a person or crab harvesting 
cooperative is applying to receive converted CPO QS and the IFQ derived 
from that converted CPO QS. If a complete application is not received 
by NMFS by this date, that person or crab harvesting cooperative will 
not receive converted CPO QS and the IFQ derived from that converted 
CPO QS for that crab fishing year.
    (ii) To receive converted CPO QS/IFQ this application must be 
accompanied by a timely and complete application for crab IFQ/IPQ 
described at paragraph (f) of this section or a timely and complete 
application for a crab harvesting cooperative IFQ permit described at 
paragraph (m) of this section.
    (2) For the application to be considered complete, all fees 
required by NMFS must be paid, and any EDR required under Sec.  680.6 
must be submitted to the DCA. In addition, the applicant must include 
the following information:.
    (i) Entity identification. Indicate the entity (Entity A, B, or C) 
described in Sec.  680.40(c)(5)(ii) through (c)(5)(iv) for which you 
are applying to receive converted CPO QS.
    (ii) Applicant information. Enter applicant's name and NMFS Person 
ID; applicant's permanent business mailing address and any temporary 
mailing address the applicant wishes to use; and applicant's business 
telephone number, facsimile number, and e-mail address.
    (A) For Entity A or B.
    (1) Identify the amount of CVO QS in either the BBR or BSS crab QS 
fishery with a north region designation for issuance as converted CPO 
QS; and
    (2) Identify the amount of PQS in either the BBR or BSS crab QS 
fishery initially issued to you by NMFS with a north region designation 
for issuance as converted CPO QS.
    (B) For Entity C.
    (1) Identify the amount of CVO QS in either the BBR or BSS crab QS 
fishery initially issued to you by NMFS with a north region designation 
for issuance as converted CPO QS; and
    (2) Identify the amount of PQS in either the BBR or BSS crab QS 
fishery with a north region designation for issuance as converted CPO 
QS.
    (iii) Affiliate information for Entities A and B. (A) For Entities 
A and B described in Sec.  680.40(c)(5)(ii) and (c)(5)(iii), indicate 
the permanent business mailing address and any temporary mailing 
address; business telephone number, facsimile number, and e-mail 
address of any person who is affiliated with you based on information 
provided in an annual application for IFQ/IPQ that is approved by the 
Regional Administrator for that crab fishing year;
    (B) Indicate the amount of PQS in either the BBR or BSS crab QS 
fishery initially issued to that person with a north region designation 
for issuance as converted CPO QS.
    (C) Indicate the amount of CVO QS in either the BBR or BSS crab QS 
fishery with a north region designation held by that person for 
issuance as converted CPO QS.
    (iv) Affiliate information for Entity C. (A) For Entity C described 
in Sec.  680.40(c)(5)(iv), indicate the permanent business mailing 
address and any temporary mailing address; business telephone number, 
facsimile number, and e-mail address of any person who is affiliated 
with you based on information provided in an annual application for 
IFQ/IPQ that is approved by the Regional Administrator for that crab 
fishing year;
    (B) Indicate the amount of PQS in either the BBR or BSS crab QS 
fishery with a north region designation for issuance as converted CPO 
QS.
    (C) Indicate the amount of CVO QS in either the BBR or BSS crab QS 
fishery issued to that person with a north region

[[Page 8842]]

designation for issuance as converted CPO QS.
    (v) Certification of applicant and affiliates. The applicant and 
any persons who are affiliated with the applicant and named on the 
application must sign and date the application certifying that all 
information is true, correct, and complete to the best of his/her 
knowledge and belief. If the application is completed by an authorized 
representative, proof of authorization must accompany the application.
    4. In Sec.  680.7, add paragraph (c)(6) to read as follows:


Sec.  680.7  Prohibitions.

* * * * *
    (c) * * *
    (6) For any person who is not an entity defined in Sec.  
680.40(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) to:
    (i) Hold converted CPO QS.
    (ii) Use the CPO IFQ derived from that converted CPO QS outside of 
a crab harvesting cooperative.
* * * * *
    5. In Sec.  680.40, add paragraphs (c)(5), (c)(6), (e)(3), and 
(j)(4) to read as follows:


Sec.  680.40  Quota Share (QS), Processor QS (PQS), Individual Fishing 
Quota (IFQ), and Individual Processor Quota (IPQ) issuance.

* * * * *
    (c) * * *
    (5) Issuance of converted CPO QS. (i) For each crab fishing year, 
the Regional Administrator may issue converted CPO QS for the BBR or 
BSS crab QS fishery with a north region designation to an entity 
described in paragraphs (c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) of this 
section if NMFS has approved an application for converted CPO QS/IFQ 
for that crab fishing year.
    (ii) Entity A is comprised only of Yardarm Knot, Inc. (NMFS ID 
 675).
    (iii) Entity B is comprised only of Blue Dutch, LLC (NMFS ID 
 3163).
    (iv) Entity C is comprised only of Trident Seafoods, Inc. (NMFS ID 
 8184).
    (v) NMFS will issue Entity A, B, or C described in paragraphs 
(c)(5)(ii) through (c)(5)(iv) of this section one unit of converted CPO 
for each unit of CVO QS and 0.9 units of PQS indicated in an approved 
application for converted CPO QS/IFQ.
    (vi) For each crab fishing year, the Regional Administrator will 
not issue CPO QS for the BBR or BSS crab QS fishery:
    (A) To Entity A described in paragraph (c)(5)(ii) of this section 
that is greater than the amount of converted CPO QS that may be derived 
from the amount of PQS units with a north region designation initially 
issued by NMFS to Yardarm Knot, Inc. (NMFS ID  675), and any 
affiliates of Yardarm Knot Inc. as listed on an annual application for 
converted CPO QS/IFQ for that crab fishing year;
    (B) To Entity B described in paragraph (c)(5)(iii) of this section 
that is greater than the amount of converted CPO QS that may be derived 
from the amount of PQS units with a north region designation initially 
issued by NMFS to Blue Dutch, LLC, (NMFS ID  3163) under 
paragraph (e)(3) of this section and any affiliates of Blue Dutch, LLC, 
as listed on an annual application for annual application for converted 
CPO QS/IFQ for that crab fishing year; and
    (C) To Entity C described in paragraph (c)(5)(iv) of this section 
that is greater than the amount of converted CPO QS that may be derived 
from the amount of CVO QS units with a north region designation 
initially issued by NMFS to Trident Seafoods, Inc., (NMFS ID  
8184) and any affiliates of Trident Seafoods Inc. as listed on an 
annual application for converted CPO QS/IFQ for that crab fishing year;
    (vii) CPO IFQ derived from converted CPO QS may be issued to a crab 
harvesting cooperative only if the entity described in paragraph 
(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) of this section holding the 
converted CPO QS is a member of that crab harvesting cooperative.
    (6) Offloading requirements for CPO IFQ derived from converted CPO 
QS. Any crab harvested under a CPO IFQ permit derived from converted 
CPO QS must be offloaded in the Bering Sea subarea north of 56[deg]20' 
N. lat.
* * * * *
    (e) * * *
    (3) PQS issued to Blue Dutch, LLC. (i) Pursuant to Public Law 109-
241, NMFS issued 3,015,229 units of PQS for the BBR crab QS fishery and 
7,516,253 units of PQS for the BSS crab QS fishery.
    (ii) PQS units issued to Blue Dutch, LLC, under paragraph (e)(3)(i) 
of this section were assigned a regional designation according to the 
procedures established in paragraph (b)(2)(iv) of this section.
    (iii) PQS units issued to Blue Dutch, LLC, under paragraph 
(e)(3)(i) of this section may not be transferred to any other person.
* * * * *
    (j) * * *
    (4) IPQ issued to Blue Dutch, LLC--(i) BBR IPQ. For each crab 
fishing year that the total allowable catch for BBR CR crab is greater 
than 15,732,480 lb (7,136.2 mt), NMFS will issue IPQ for the 3,015,229 
units of PQS issued to Blue Dutch, LLC, pursuant to Public Law 109-241.
    (ii) BSS PQS. For each crab fishing year that the total allowable 
catch for BSS CR crab is greater than 21,350,640 lb (9,684.6 mt), NMFS 
will issue IPQ for the 7,516,253 units of PQS issued to Blue Dutch, 
LLC, pursuant to Public Law 109-241.
* * * * *
    6. In Sec.  680.41:
    a. Paragraphs (c)(1)(iv) through (c)(1)(vi) are redesignated as 
paragraphs (c)(1)(vi) through (c)(1)(viii), respectively.
    b. New paragraphs (c)(1)(iv) and (c)(1)(v) are added.
    c. Paragraph (c)(1)(i) is revised.
    The additions and revision read as follows:


Sec.  680.41  Transfer of QS, PQS, IFQ, and IPQ.

* * * * *
    (c) * * *
    (1) * * *

------------------------------------------------------------------------
                                                        Eligibility
       Quota type            Eligible person           requirements
------------------------------------------------------------------------
(i) PQS not issued       Any person               None.
 under Sec.
 680.40(e)(3)(i)
------------------------------------------------------------------------
* * * * * * *            .......................  ......................
------------------------------------------------------------------------
(iv) Converted CPO QS    N/A                      Converted CPO QS may
                                                   not be transferred.
------------------------------------------------------------------------
(v) CPO IFQ derived      N/A                      CPO IFQ derived from
 from Converted CPO QS                             Converted CPO may not
                                                   be transferred.
------------------------------------------------------------------------
* * * * * * *            .......................  ......................
------------------------------------------------------------------------


[[Page 8843]]

* * * * *
    7. In Sec.  680.42, paragraph (a)(5) is revised, and paragraph 
(a)(7) is added to read as follows:


Sec.  680.42  Limitations on use of QS, PQS, IFQ, and IPQ.

    (a) * * *
    (5) IFQ that is used by a crab harvesting cooperative is not 
subject to the use caps in this paragraph (a) except as provided for in 
paragraph (a)(7) of this section.
* * * * *
    (7) In a calendar year, an entity as described in Sec.  
680.40(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv), may not use more than 
1,000,000 lb (453.6 mt) of IFQ derived from converted CPO QS in the BBR 
or BSS crab QS fisheries.
* * * * *
[FR Doc. E8-2895 Filed 2-14-08; 8:45 am]
BILLING CODE 3510-22-S