[Federal Register Volume 74, Number 82 (Thursday, April 30, 2009)]
[Proposed Rules]
[Pages 20134-20153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-9546]



[[Page 20133]]

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

Part III





Department of Commerce





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



National Oceanic and Atmospheric Administration



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



50 CFR Part 622



Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Reef 
Fish Fishery of the Gulf of Mexico; Amendment 29; Proposed Rule

  Federal Register / Vol. 74, No. 82 / Thursday, April 30, 2009 / 
Proposed Rules  

[[Page 20134]]


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

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 090206140-9191-01]
RIN 0648-AX39


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Reef Fish Fishery of the Gulf of Mexico; Amendment 29

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

ACTION: Proposed rule; request for comments.

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

SUMMARY: NMFS issues this proposed rule to implement Amendment 29 to 
the Fishery Management Plan for Reef Fish Resources of the Gulf of 
Mexico (FMP), as prepared and submitted by the Gulf of Mexico Fishery 
Management Council (Council). This proposed rule would implement a 
multi-species individual fishing quota (IFQ) program for the grouper 
and tilefish component of the commercial sector of the reef fish 
fishery in the Gulf of Mexico exclusive economic zone (Gulf EEZ). In 
addition, the proposed rule would allow permit consolidation and dual 
classifications to the shallow water and deepwater management units for 
speckled hind and warsaw grouper and would modify some provisions of 
the Gulf red snapper IFQ program for consistency with this proposed 
rule. The proposed rule is intended to reduce effort in the grouper and 
tilefish component of the Gulf reef fish fishery.

DATES: Written comments on this proposed rule must be received no later 
than 5:00 p.m., eastern time, on June 15, 2009.

ADDRESSES: You may submit comments, identified by RIN 0648-AX39, by any 
one of the following methods:
     Electronic Submissions: Submit all electronic public 
comments via the Federal eRulemaking Portal http://www.regulations.gov
     Mail: Susan Gerhart, Southeast Regional Office, NMFS, 263 
13th Avenue South, St. Petersburg, FL 33701
    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 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.
    To submit comments through the Federal e-Rulemaking Portal: http://www.regulations.gov, enter ``NOAA-NMFS-2008-0223'' in the keyword 
search, then select ``Send a Comment or Submission.'' NMFS will accept 
anonymous comments (enter N/A in the required fields, if you wish to 
remain anonymous). You may submit attachments to electronic comments in 
Microsoft Word, Excel, WordPerfect, or Adobe PDF file formats only.
    Copies of Amendment 29, which includes a draft environmental impact 
statement (DEIS), an initial regulatory flexibility analysis (IRFA), 
and a regulatory impact review (RIR) may be obtained from the Gulf of 
Mexico Fishery Management Council, 2203 North Lois Avenue, Suite 1100, 
Tampa, FL 33607; telephone 813-348-1630; fax 813-348-1711; e-mail 
[email protected]; or may be downloaded from the Council's 
website at http://www.gulfcouncil.org/.
    Comments regarding the burden-hour estimates or other aspects of 
the collection-of-information requirements contained in this proposed 
rule may be submitted in writing to Jason Rueter, Southeast Regional 
Office, NMFS, and to David Rostker, OMB, by e-mail at [email protected], or by fax to 202-395-7285.

FOR FURTHER INFORMATION CONTACT: Susan Gerhart, telephone: 727-824-
5305, fax: 727-824-5308.

SUPPLEMENTARY INFORMATION: The reef fish fishery of the Gulf of Mexico 
is managed under the FMP. The FMP was prepared by the Council and is 
implemented through regulations at 50 CFR part 622 under the authority 
of the Magnuson-Stevens Fishery Conservation and Management Act 
(Magnuson-Stevens Act).

Background

    Current regulatory measures used to manage the commercial grouper 
and tilefish component of the reef fish fishery in the Gulf EEZ include 
a license limitation system, quotas, trip limits, minimum size limits, 
area and gear restrictions, and seasonal closures. Nonetheless, the 
commercial grouper and tilefish component has become overcapitalized, 
which has resulted in increasingly restrictive commercial regulations. 
One result of these restrictions is intensifying derby conditions, 
under which fishermen race to harvest as many fish as possible before 
the quota is reached. The intensification of derby conditions has led, 
in recent years, to early-season closures of the fisheries. Under the 
current management structure, the commercial grouper and tilefish 
component is expected to continue to have higher than necessary levels 
of capital investment, increased operating costs, increased likelihood 
of shortened seasons, reduced safety at-sea, wide fluctuations in 
grouper and tilefish supply, and depressed ex-vessel prices.

Permit Consolidation

    Permit consolidation would allow the owner of multiple Gulf of 
Mexico reef fish commercial vessel permits to consolidate some or all 
of such permits into one. The consolidated permit would have a catch 
history equal to the sum of the catch histories associated with the 
individual permits; the other permits involved in the consolidation 
would be permanently eliminated. The permits to be consolidated would 
have to be valid and not expired, and would have to be issued under the 
same name. This action could contribute to a faster reduction in the 
number of permits and ease permit renewal requirements. Fishermen would 
benefit by having to maintain and pay for fewer permits while still 
retaining their total landings history.

Establishment of an IFQ Program for Groupers and Tilefishes

    The Council chose a multi-species IFQ program for all groupers, 
except Goliath grouper and Nassau grouper, and all tilefish species 
managed in the Gulf EEZ as the preferred alternative for effort 
management. The Magnuson-Stevens Act stipulates the Council may not 
submit, and the Secretary of Commerce may not approve, an IFQ program 
that has not first been approved by a majority of voters in a 
referendum. To be eligible to vote in the Gulf of Mexico grouper and 
tilefish IFQ referendum, an individual needed to possess an active or 
renewable Gulf reef fish vessel permit with combined average annual 
grouper and tilefish landings of at least 8,000 lb (3,629 kg) during 
1999-2004 (with the allowance of dropping one year). Referendum ballots 
were mailed on December 5, 2008, to 301 eligible voters. Ballots were 
due to NOAA Fisheries Service by 4:30 p.m. on January 5, 2009. A total 
of 274 ballots were returned with a vote of 220 to 50 in favor of the 
IFQ program (four returned ballots were declared invalid).
    To implement an IFQ program, several design features would need to 
be specified. This proposed rule contains many of these design 
elements, as well as major requirements for limited access privilege 
programs listed in the Magnuson-Stevens Act.

[[Page 20135]]

Scope and Duration of the IFQ program

    The provisions of the IFQ program would apply to Gulf grouper and 
tilefish species in or from the Gulf EEZ and for a fisher or dealer in 
the IFQ program, these provisions would apply to Gulf groupers and 
tilefishes regardless of where harvested or possessed. The species 
include deepwater groupers (DWG), i.e., yellowedge grouper, misty 
grouper, warsaw grouper, snowy grouper, speckled hind, plus scamp under 
certain circumstances; red grouper, gag, and other shallow water 
groupers (other SWG) including black grouper, scamp, yellowfin grouper, 
rock hind, red hind, yellowmouth grouper, plus warsaw grouper and 
speckled hind under certain circumstances; and tilefishes (goldface 
tilefish, blackline tilefish, anchor tilefish, blueline tilefish, and 
tilefish).
    The IFQ program would remain in effect until it is modified or 
terminated by an FMP amendment; however, the Council would evaluate the 
program every 5 years.

IFQ Shares and Allocation

    An IFQ share is the percentage of the commercial quota or allowance 
for a species or species group issued to each eligible participant 
based on landings data. The five share categories are DWG, gag, red 
grouper, other SWG, and tilefish. Allocation is the actual poundage 
(gutted weight) in each share category that an IFQ shareholder is given 
the opportunity to land during each fishing year. The allocation issued 
to each IFQ shareholder would be calculated by multiplying their share 
times the annual commercial quota or allowance for each category. 
Annual allocation expires at the end of each year.

Multi-use Allocation

    At the beginning of each fishing year, 4 percent of each 
participant's initial red grouper shares and 8 percent of each 
participant's initial gag shares would be converted to multi-use 
allocation. Multi-use allocation could be used to possess, land, or 
sell red groupers and gag under certain conditions. Red grouper multi-
use allocation could only be used for red groupers after an IFQ account 
holder's entire red grouper allocation has been landed and sold, or 
transferred, and could be used for gag only after both gag and gag 
multi-use allocation have been landed and sold, or transferred. Gag 
multi-use allocation could only be used for gag after an IFQ account 
holder's entire gag allocation has been landed and sold, or 
transferred, and could be used for red groupers only after both red 
grouper and red grouper multi-use allocation have been landed and sold, 
or transferred.

Warsaw Grouper, Speckled Hind, and Scamp Classification

    Warsaw grouper and speckled hind are currently considered DWG 
species. Amendment 29 proposes also including these species as SWG 
under certain circumstances. For the purposes of the grouper and 
tilefish IFQ program, once an IFQ account holder's DWG allocation has 
been landed and sold, or transferred, or if an IFQ account holder has 
no DWG allocation, then other SWG allocation could be used to land and 
sell warsaw grouper and speckled hind.
    Scamp is considered a SWG species and a DWG under certain 
circumstances. For the purposes of the grouper and tilefish IFQ 
program, once an IFQ account holder's other SWG allocation has been 
landed and sold, or transferred, or if an IFQ account holder has no SWG 
allocation, then DWG allocation could be used to land and sell scamp.

Initial IFQ Share Eligibility and Share Calculation

    To be eligible to receive initial IFQ shares, a person would need 
to possess a valid (active or renewable) Gulf reef fish commercial 
vessel permit as of October 1, 2009. The calculation of initial shares 
by the RA would be based on the highest average annual landings 
associated with each permit during the best 5 out of 6 years for each 
share category, during the applicable landings period, 1999 through 
2004. If a participant wishes to exclude a different year of landings 
history than was chosen by the RA, the participant would submit that 
information to the RA postmarked no later than December 1, 2009.
    All landings associated with a valid Gulf reef fish commercial 
vessel permit for the applicable landings period would be attributed to 
the current owner, including landings reported by a person who held the 
permit prior to the current owner. Only legal landings reported in 
compliance with applicable state and Federal regulations would be 
accepted. Each participant's initial share in each category would be 
calculated by dividing his/her highest average annual landings by the 
sum of the highest average annual landings of all participants during 
the applicable landings period. Initial shares distributed in the gag 
and other SWG share categories would be based on landings that have 
been adjusted for gag and black grouper misidentification. Initial 
shares in each share category would not be issued in units less than 
the percentage equivalent to 1 lb (.45 kg) of the grouper or tilefish 
species, based on that share category's quota or allowance.

Appeals Process

    The only items subject to appeal under this IFQ program would be 
initial eligibility for shares based on ownership of a reef fish 
commercial vessel permit, the accuracy of the amount of landings, 
correct assignment of landings to the permit owner, and correct 
assignment of gag versus black grouper landings. Appeals would have to 
be submitted to the RA postmarked no later than April 1, 2010, and 
would have to contain documentation supporting the appeal. The RA would 
review, evaluate, and render final decisions on appeals. Hardship 
arguments would not be considered.
    Appeals regarding landings data for 1999 through 2004 would be 
based on NMFS' logbook records. If NMFS' logbooks were not available, 
the RA could use state landings records or data that were submitted in 
compliance with applicable Federal and state regulations, on or before 
December 31, 2006. This date was chosen because it is 2 years after the 
end of the qualifying period for the IFQ program, and 2 years is the 
maximum amount of time from purchase or renewal of a permit until 
further action must be taken to prevent termination of the permit. 
Prior to initial distribution of shares, the RA would reserve 3-percent 
of IFQ shares to be used to resolve appeals. Any portion of the 3-
percent share reserve remaining after the appeals process was completed 
would be proportionately distributed back to the initial recipients as 
soon as possible that year. If resolution of appeals requires more than 
3-percent of shares, the shares of all initial IFQ shareholders would 
be reduced proportionately to accommodate the required shares in excess 
of the reserve.

Adjustments in Commercial Quota and Allocation

    The Council periodically adjusts commercial quotas when they change 
the total allowable catch or the sector allocation in response to new 
data and information. If quotas are adjusted, then adjustments in IFQ 
allocation would be based on the percentage of the quota each IFQ 
shareholder possessed at the time of the adjustment.

Redistribution of Shares Resulting from Permit Revocation

    If an IFQ shareholder's reef fish commercial vessel permit has been 
permanently revoked, at the beginning

[[Page 20136]]

of the next fishing year the RA would redistribute the shares held by 
that shareholder proportionately among remaining shareholders based 
upon the amount of shares each held just prior to the redistribution. 
Shares would not be distributed in such a way as to violate any share 
cap.

Annual Recalculation and Notification of IFQ Shares and Allocation

    On or about January 1 each year, IFQ shareholders would be 
notified, via the IFQ website, of their shares and allocation for the 
new fishing year. The share values would be updated to include any 
share transfers and redistribution of shares. Allocation amounts would 
reflect any change in IFQ shares, any change in the annual commercial 
quota or allowance, and any debits incurred as a result of overages 
during the previous fishing year (see below).

Electronic System Requirements, Account Setup, and Information

    The administrative functions associated with this IFQ program, such 
as account setup, landing transactions, and transfers, are designed to 
be accomplished online; therefore, all participants would need access 
to a computer and the Internet to participate. Assistance with online 
functions would be available from IFQ Customer Service, 1-866-425-7627, 
Monday through Friday between 8 a.m. and 4:30 p.m. eastern time.On or 
about October 1, 2009, the RA would mail an information package to 
eligible IFQ participants. The package would include historical 
landings, initial shares and allocation, information for accessing the 
online IFQ system and establishing an online account, and general 
instructions related to online transaction procedures and requirements. 
Anyone who is eligible to participate in the IFQ program, but who does 
not receive initial shares, may contact IFQ Customer Service to obtain 
information necessary to set up the required IFQ online account.

IFQ Vessel Accounts

    An IFQ vessel account would be required for a person aboard a 
vessel to land grouper or tilefish species. Before a landing 
notification for the vessel was submitted, the vessel account 
associated with that vessel would need to have enough allocation in the 
appropriate share categories for the fish on board. A person who has 
established an IFQ account online would establish a vessel account 
through that IFQ account for each vessel. Each vessel account would 
have a unique personal identification number (PIN) to be used during 
landing transactions. Only one vessel account could be established per 
vessel, but multiple vessel accounts could be established under each 
IFQ account. No fee would be charged to set-up a vessel account. The 
vessel account would remain valid as long as the vessel permit remained 
valid and the vessel owner was in compliance with all Gulf reef fish 
and IFQ reporting requirements, had paid all IFQ fees, and was not 
subject to sanctions. The vessel account could not be transferred to 
another vessel.
    Vessel accounts could only hold allocation for use in landing and 
selling IFQ species. Vessel accounts could not hold shares. Allocation 
could be transferred into a vessel account from any IFQ account; 
however, allocation could only be transferred out of a vessel account 
to the IFQ account under which it was established. This restriction is 
intended to ensure that an IFQ account holder maintains control of the 
allocation in his/her account.

IFQ Share/Allocation Transferability

    During the first 5 years of the IFQ program, shares or allocation 
could only be transferred to a person with a valid Gulf reef fish 
commercial vessel permit. After 5 years, shares and allocation could be 
transferred to any U.S. citizen or permanent resident alien. However, a 
valid reef fish commercial vessel permit would still be required to 
fish for Gulf groupers and tilefishes under the IFQ program.
    Both share and allocation transfers would be accomplished online 
via the IFQ website. The online system would verify the information 
entered and, if the information was not accepted, the online system 
would send an electronic message explaining the reason(s). Once the 
transaction is complete, the online system would send a transfer 
approval code to both the transferor and transferee confirming the 
transaction. An IFQ shareholder who is subject to a sanction would be 
prohibited from initiating a share transfer. If a transferor is subject 
to a pending sanction, he/she would be required to disclose in writing 
any pending sanction at the time of the transfer of shares or 
allocation. No transfers would be allowed that violate the share or 
allocation caps.
    For share transfers, approval would be required from both the 
transferor and transferee. If the information from the transferor was 
accepted, the online system would send an electronic message of the 
pending transfer to the transferee. The transferee would approve the 
share transfer by electronic signature. If the transferee approved the 
share transfer, the online system would send a transfer approval code 
to both the transferor and transferee confirming the transaction. The 
minimum share amount that could be transferred would be 0.000001 
percent.
    Transfer of shares and associated allocation are independent; to 
transfer both shares and allocation, the transferor must complete both 
a share transfer and an allocation transfer. At the beginning of the 
year after a share transfer, allocation would automatically be issued 
to the current shareholder. Share transfers would be permanent, and 
would remain in effect until subsequently transferred. Allocation 
transfers would be valid only for the remainder of the current fishing 
year; allocation transfers would not carry over to the next fishing 
year.
    Red grouper multi-use allocation could only be transferred after 
all of an IFQ account holder's red grouper allocation had been landed 
and sold, or transferred. Gag multi-use allocation could only be 
transferred after all an IFQ account holder's gag allocation had been 
landed and sold, or transferred.
    All electronic IFQ transactions would have to be completed by 
December 31 at 6 p.m. eastern time each year. Electronic functions 
would resume on January 1 at 6 a.m. eastern time the following fishing 
year.

IFQ Share and Allocation Caps

    The Magnuson-Stevens Act requires an IFQ program to prevent any 
entity from obtaining an excessive share of the total limited access 
privileges in the program. To accomplish this, both share and 
allocation caps would be established. No person, including a 
corporation or other entity, could individually or collectively hold 
IFQ shares in any share category greater than the maximum share 
initially issued to a person at the beginning of the IFQ program, as of 
the date appeals are resolved and shares are adjusted accordingly. 
Further, no person could individually or collectively hold, 
cumulatively during any fishing year, allocation in excess of the total 
allocation cap. The total allocation cap would be the sum of the 
allocations associated with the share caps for each share category. The 
allocation cap would be calculated annually based on the current quota 
or allowance associated with each share category.
    An individual's total IFQ shares/allocation would be determined by 
adding the IFQ shares/allocation held independently by the individual 
and the applicable IFQ shares/allocation from any corporation in which 
the individual has ownership. Those applicable

[[Page 20137]]

corporate IFQ shares/allocation would be calculated by multiplying the 
IFQ shares/allocation owned by the corporation times the percent of 
ownership the individual has in the corporation. During initial 
implementation of the IFQ program, a corporation would provide the 
identity of the shareholders of the corporation and their percent of 
ownership in the corporation to NMFS. This information would be updated 
within 30 days of when changes occur. This information would also be 
required any time a reef fish vessel permit is renewed or transferred.

Dealer Requirements

    On or about October 1, 2009, the RA would mail information 
pertinent to the IFQ program to each dealer with a valid Gulf reef fish 
dealer permit. A dealer, or a person aboard a vessel with an IFQ 
account wishing to sell groupers and tilefishes directly to an entity 
other than a dealer, would need an IFQ dealer endorsement to receive 
groupers and tilefishes from the Gulf EEZ. An IFQ dealer endorsement 
could be downloaded from the NMFS IFQ website. If a dealer did not have 
an IFQ online account, they could contact IFQ Customer Service. No fee 
would be charged for obtaining this endorsement. The endorsement would 
remain valid as long as the reef fish dealer permit remained valid and 
the dealer was in compliance with all Gulf reef fish and IFQ reporting 
requirements, had paid all IFQ fees, and was not subject to any 
sanctions. The endorsement could not be transferred.

Electronic Reporting of IFQ Landing Transactions

    The dealer would be responsible for completing a landing 
transaction report for each landing and sale of groupers and tilefishes 
through his/her IFQ account. The landing transaction would be completed 
at the time of sale. The fisherman would validate the dealer 
transaction report by entering the unique PIN for the vessel account 
when the transaction report was submitted. After the dealer submitted 
the report and NMFS verified the information, the online system would 
send a transaction approval code to the dealer and the allocation 
holder. This approval code would be necessary to verify the transaction 
was legal and the vessel account had the correct amount of grouper and 
tilefish allocation. The dealer endorsement would have to accompany any 
fish from the landing location through possession by a dealer. Fish 
could not be transported on land by any means without a transaction 
approval code and a copy of the dealer endorsement.
    If a discrepancy regarding the landing transaction report was 
discovered after approval, the dealer or vessel account holder (or his 
or her authorized agent) could initiate a landing transaction 
correction form to correct the landing transaction. This form would be 
available via the IFQ website. Both parties would validate the landing 
correction form by entering their respective PINs. The dealer would 
then print out the form, both parties would sign it, and the form would 
be mailed to NMFS. The form would need to be received by NMFS no later 
than 15 days after the date of the initial landing transaction.

Limited Landings Overage Allowance

    A person on board a vessel with an IFQ vessel account landing the 
IFQ shareholder's only remaining allocation could legally exceed, by up 
to 10 percent, the amount of the allocation remaining on that last 
fishing trip. Under current interpretation of the Council's intent, 
allocation from all share categories must be exhausted to use the 
overage, and the overage would be allowed only one time per fishing 
year for each shareholder. Another interpretation of the Council's 
intent would be to allow the use of the 10 percent overage once per 
year for each category. In that case, a person on board a vessel with 
an IFQ vessel account landing the IFQ shareholder's only remaining 
allocation in a share category could legally exceed, by up to 10 
percent, the amount of the allocation remaining in that share category 
on that fishing trip. The Council will be asked to clarify their 
intention on this issue at their April 2009 meeting. NMFS is 
specifically seeking comment from the public on which approach best 
serves the objectives of the overage provision.
    If additional allocation is purchased after a shareholder uses his 
overage privilege, no additional overage would be allowed. Overages 
would be deducted from the next year's allocation associated with the 
shareholder's IFQ share. Share transfers would not be allowed that 
would reduce the shareholder's IFQ shares lower than the amount needed 
to pay back the overage. A person who only possessed allocation and no 
IFQ shares would not be allowed an overage. That person might not 
receive allocation in the following year and therefore, could not pay 
back the overage.

Cost Recovery

    The Magnuson-Stevens Act requires the Secretary of Commerce to 
establish a fee to assist in recovering the actual costs directly 
related to managing and enforcing an IFQ program. This fee may not 
exceed 3 percent of the ex-vessel value of fish harvested under the IFQ 
program. Cost recovery fees must be in addition to any other fees 
charged under the Magnuson-Stevens Act and must be deposited in the 
Limited Access System Administration Fund. Initially, the fee for the 
Gulf of Mexico grouper and tilefish IFQ would be 3 percent of the 
actual ex-vessel value of groupers and tilefishes landed under the IFQ 
program as documented in each landings transaction report. NMFS is 
currently analyzing the expected costs for the first year to determine 
if the 3-percent fee is appropriate. The RA would review the cost 
recovery fee annually to determine if an adjustment is warranted. If 
the RA determined that a fee adjustment is warranted, the RA would 
publish a notification of the fee adjustment in the Federal Register.
    The participant whose allocation is used for a grouper or tilefish 
landing would be responsible for paying the associated IFQ cost 
recovery fees. The IFQ dealer who receives the fish would be 
responsible for collecting the fee from the participant and submitting 
the fee to NMFS using pay.gov via the IFQ system. The fee would be due 
at the end of each calendar-year quarter, but no later than 30 days 
after the end of each calendar-year quarter. Authorized payment methods 
would be credit card, debit card, or automated clearing house (ACH), or 
by check if the RA has determined that the geographical area or 
individual(s) is affected by catastrophic conditions. Fees not received 
by the deadline would be considered delinquent. Failure to resolve 
payment of delinquent fees could result in suspension of the IFQ 
endorsement which would prevent a dealer from completing any IFQ 
landing transactions. Continued failure to resolve payment could result 
in submission of the matter to appropriate authorities for resolution.

Measures to Enhance Enforceability

    Fishermen participating in the IFQ program would be required to 
offload their grouper and tilefish landings to permitted IFQ dealers 
only between 6 a.m. and 6 p.m., local time. For the purpose of this 
program, landing means to arrive at a dock, berth, beach, seawall, or 
ramp. Any person landing groupers or tilefishes would be required to 
notify NMFS 3 to 12 hours in advance of landing. The landing 
notification would include the time and location of landing, the name 
and address of the dealer where the fish would be received,

[[Page 20138]]

the vessel identification number (Coast Guard registration number or 
state registration number), and the estimated pounds (gutted weight) of 
fish to be landed in each share category. The fisherman could supply 
this notification by calling NMFS at 1-866-425-7627, by completing and 
submitting the notification form provided through the VMS unit, or by 
accessing the web-based form available on the IFQ website. The vessel 
account associated with the vessel landing groupers or tilefishes must 
have sufficient allocation in the appropriate share category or 
categories (except for any overage allowed on the last fishing trip) 
from the time of the landing notification through landing.
    Possession of IFQ groupers or tilefishes from the time of transfer 
from a vessel through possession by a dealer would be prohibited unless 
accompanied by a transaction approval code verifying a legal 
transaction of the amount of IFQ groupers or tilefishes in possession 
and a copy of the dealer endorsement. This requirement also applies to 
IFQ fish possessed on a vessel that is trailered for transport to a 
dealer. If groupers or tilefishes are offloaded to a vehicle for 
transportation to a dealer or are on a vessel that is trailered for 
transport to a dealer, on-site capability to accurately weigh the fish 
and to connect electronically to the online IFQ system to complete the 
transaction and obtain the transaction approval code would be required. 
At-sea or dockside vessel-to-vessel transfers of fish would be 
prohibited.

Approved Landing Locations

    NMFS' Office for Law Enforcement would have to approve landing 
locations prior to landing or offloading groupers and tilefishes at 
these sites. Proposed landing locations could be submitted online via 
the IFQ website or by calling IFQ Customer Service at any time. 
However, new landing locations would be approved only at the end of 
each calendar-year quarter. To have a landing location approved by the 
end of the calendar-year quarter, it would have to be submitted at 
least 45 days before the end of the calendar-year quarter. Landing 
locations would have to be publicly accessible by land and water, and 
they must have a street address. If a particular landing location has 
no street address on record, global positioning system (GPS) 
coordinates for an identifiable geographic location must be provided. 
Other criteria could also be applied.

Paper-based reporting during catastrophic conditions

    The RA would provide paper-based components for basic required 
functions of the IFQ program as a backup only during catastrophic 
conditions. The RA would determine when catastrophic conditions exist, 
the duration of the catastrophic conditions, and which participants or 
geographic areas are affected by the catastrophic conditions. The RA 
would provide timely notice to affected participants and would 
authorize the affected participants' use of paper-based components for 
the duration of the catastrophic conditions. NMFS would provide each 
IFQ dealer the necessary paper forms. No paper-based mechanism for 
transfers of shares or allocation would be available. Assistance in 
complying with the requirements of the paper-based system would be 
available via IFQ Customer Service, Monday through Friday between 8 
a.m. and 4:30 p.m. eastern time.

Changes in the Red Snapper IFQ Program

    Several changes to the red snapper IFQ program would be made to 
align that program with the grouper and tilefish IFQ program. One 
change would be the requirement for an IFQ vessel account for a person 
aboard a vessel to land red snapper. Before a landing notification for 
the vessel was submitted, the vessel account associated with that 
vessel would need to have enough allocation for the fish on board. To 
improve enforceability of the IFQ program, the estimated pounds (gutted 
weight) of red snapper on board would be included in the landing 
notification.
    A person who has established an IFQ account online would establish 
a vessel account through that IFQ account for each vessel. Only one 
vessel account could be established per vessel, but multiple vessel 
accounts could be established under each IFQ account. No fee would be 
charged to set-up an IFQ vessel account. The vessel account would 
remain valid as long as the reef fish vessel permit remained valid and 
the vessel owner was in compliance with all Gulf reef fish and IFQ 
reporting requirements, had paid all IFQ fees, and was not subject to 
sanctions. The vessel account could not be transferred to another 
vessel.
    The requirement for vessel accounts would eliminate the need for 
IFQ vessel endorsements; therefore the vessel endorsement requirement 
would be eliminated from the red snapper IFQ program.

Changes in the Red Snapper IFQ Program Relating to Dealer Requirements

    Currently, no method exists to correct errors to landing 
transactions. Through this rule, if a discrepancy regarding the landing 
transaction report was discovered after approval, the dealer or vessel 
account holder (or his or her authorized agent) could initiate a 
landing transaction correction form to correct the landing transaction. 
This form would be available via the IFQ website. Both parties would 
validate the landing correction form by entering their respective PINs. 
The dealer would then print out the form, both parties would sign it, 
and the form would be mailed to NMFS. The form would need to be 
received by NMFS no later than 15 days after the date of the initial 
landing transaction.
    Two items would be eliminated to ease the administrative burden 
associated with dealer requirements. The first would be the annual ex-
vessel value report because the information in the report is readily 
available on the IFQ website. The second would be the notice of 
annulment sent on or about the 61st day after the end of each calendar-
year quarter for a dealer whose cost recovery fee payment remains 
delinquent. This notice did not accompany any new action on the part of 
NMFS to curtail the dealer's activities, and so is unnecessary.

Changes to Share Transfer Process for the Red Snapper IFQ Program

    Currently share transfers can only be accomplished by submitting a 
form signed by both the transferor and transferee to NMFS. With the 
proposed regulatory change, both share and allocation transfers would 
be accomplished online via the IFQ website. Approval would be required 
from both the transferor and transferee. If the information from the 
transferor was accepted, the online system would send an electronic 
message of the pending transfer to the transferee. The transferee would 
approve the share transfer by electronic signature. If the transferee 
approved the share transfer, the online system would send a transfer 
approval code to both the transferor and transferee confirming the 
transaction.
    An IFQ shareholder who is subject to a sanction is prohibited from 
initiating a share transfer. If a transferor is subject to a pending 
sanction, he/she would be required to disclose in writing the existence 
of any pending sanction at the time of the transfer to the prospective 
transferee. The minimum share amount

[[Page 20139]]

that could be transferred would be 0.0001 percent.

Changes to Approval of Landing Locations for the Red Snapper IFQ 
Program

    Currently, an IFQ participant can enter any location during the 
landing notification, and approval is only needed to place the location 
on the drop-down menu. This proposed rule would require landing 
locations be approved by NMFS' Office for Law Enforcement prior to 
landing or offloading at these sites. Proposed landing locations could 
be submitted via the IFQ website or by calling IFQ Customer Service at 
any time. However, new landing locations would be approved only at the 
end of each calendar-year quarter. To have a landing location approved 
by the end of the calendar-year quarter, it would need to be submitted 
at least 45 days before the end of the calendar-year quarter. Landing 
locations would have to be publicly accessible by land and water, and 
would have to have a street address. If a particular landing location 
has no street address on record, global positioning system (GPS) 
coordinates for an identifiable geographic location would have to be 
provided. Other criteria could also be applied.

Availability of Amendment 29

    Additional background and rational for the measures discussed above 
are contained in Amendment 29. The availability of Amendment 29 was 
announced in the Federal Register on April 8, 2009 (74 FR 15911). 
Written comments on Amendment 29 must be received by June 8, 2009. All 
comments received on Amendment 29 or on this proposed rule during their 
respective comment periods will be addressed in the preamble of the 
final rule.

Classification

    Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the 
NMFS Assistant Administrator has determined that this proposed rule is 
consistent with Amendment 29, other provisions of the Magnuson-Stevens 
Act, and other applicable law, subject to further consideration after 
public comment.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    NMFS prepared a Draft Environmental Impact Statement (DEIS) for 
this amendment. A notice of availability for the DEIS was published on 
July 3, 2008 (73 FR 38204).
    NMFS prepared an IRFA, as required by section 603 of the Regulatory 
Flexibility Act, for this proposed rule. The IRFA describes the 
economic impact this proposed rule, if adopted, would have on small 
entities. A description of the action, why it is being considered, and 
the objectives of, and legal basis for this action are contained at the 
beginning of this section in the preamble and in the SUMMARY section of 
the preamble. A copy of the full analysis is available from the Council 
(see ADDRESSES). A summary of the IRFA follows.
    This proposed rule would implement an IFQ program in the commercial 
grouper and tilefish fisheries; allow a single owner of multiple 
commercial reef fish permits to consolidate his (her) permits into one, 
with the consolidated permit having a catch history equal to the sum of 
the catch histories associated with the individual permits; maintain 
the current composition of the multi-species DWG unit and revise the 
SWG unit to include speckled hind and warsaw grouper; restrict initial 
eligibility to valid commercial reef fish permit holders; distribute 
initial IFQ shares proportionately among eligible participants based on 
the average annual landings from logbooks associated with their current 
permit(s) during the time period 1999 through 2004 with an allowance 
for excluding one year; establish IFQ share types as follows: red 
grouper, gag, other SWG, DWG, and tilefish shares; convert 4 percent of 
each IFQ participant's red grouper individual species share into multi-
use red grouper allocation valid for harvesting red or gag groupers, 
and convert 8 percent of each IFQ participant's gag grouper individual 
species share into multi-use gag grouper allocation valid for 
harvesting gag or red groupers; allow transfers of IFQ shares or 
allocations only to commercial reef fish permit holders during the 
first five years of the IFQ program and all U.S. citizens and permanent 
resident aliens thereafter; set a cap on any one person's ownership of 
IFQ shares to no more than the maximum percentage issued to the 
recipient of the largest shares at the time of the initial 
apportionment of IFQ shares, with the cap(s) calculated as separate 
caps for each type of share; set a total allocation cap calculated as 
the sum of the maximum allocations associated with the share caps for 
each individual share category; allocate adjustments in the commercial 
quota proportionately among eligible IFQ shareholders based on their 
respective shareholdings at the time of the adjustments; let the RA 
review, evaluate, and render final decision on appeals, without 
consideration of hardship arguments; set aside 3 percent of the current 
commercial quota or allowance to resolve appeals, with any remaining 
amount proportionately distributed back to initial IFQ shareholders 
after the appeals process has been terminated; impose an IFQ cost 
recovery fee based on actual ex-vessel value at the time of sale of 
fish, with the payment of the fee being the responsibility of the 
recognized IFQ shareholder and collection/remittance of the fee being 
the responsibility of the dealer; and establish certified landing sites 
for all IFQ programs in the commercial reef fish fisheries, with the 
sites selected by fishermen but certified by NMFS Office of Law 
Enforcement.
    The Magnuson-Stevens Act provides the statutory basis for the 
proposed rule. No duplicative, overlapping, or conflicting Federal 
rules have been identified.
    This proposed rule would introduce new or additional reporting, 
record-keeping and other compliance requirements. Details of these 
requirements would be spelled out before implementation of the program. 
A summary of the general requirements of the grouper and tilefish IFQ 
program follows.
    An IFQ dealer endorsement would be required of any dealer 
purchasing groupers or tilefishes subject to this IFQ program. The IFQ 
dealer endorsement would be issued at no cost to those individuals who 
possess a valid reef fish dealer permit and request the endorsement. 
Although the current reef fish dealer permit must be renewed annually 
at a cost of $60 for the initial permit ($12.60 for each additional 
permit), the IFQ dealer endorsement would remain valid as long as the 
individual possesses a valid Gulf reef fish dealer permit and abides by 
all reporting and cost recovery requirements of the IFQ program. This 
requirement would affect all 159 existing dealers (as of November 2008) 
of groupers or tilefishes.
    An electronic reporting system would serve as the main vehicle for 
tracking IFQ activities. The electronic nature of the reporting system 
would render the reporting of most IFQ activities practically on a real 
time basis. For example, to effect a sale of grouper or tilefish 
landings, the purchasing dealer would have to log into the electronic 
reporting system and enter all the required information about the 
grouper or tilefish sale. The required information includes, but is not 
limited to, the name of the dealer and that of the fisherman, 
identification number of the harvesting vessel, and the pounds and ex-
vessel values of groupers and tilefishes. Electronic validation of the

[[Page 20140]]

dealer-supplied information by the selling fisherman is necessary to 
complete the sale. Also, transfer of IFQ allocations and shares would 
have to be effected and recorded through the electronic reporting 
system. Holders of IFQ allocations could also access the system to 
check on the outstanding IFQ allocations remaining in their account/
possession. In this connection, an IFQ shareholder account, IFQ vessel 
account, and IFQ dealer account would have to be established with NMFS. 
There would be no charge to establishing any of these accounts.
    By the very nature of the reporting system, IFQ dealers would be 
required to have access to computers and the Internet. If a dealer does 
not have current access to computers and the Internet, he/she may have 
to expend approximately $1,500 for computer equipment (one-time cost) 
and $300 annual cost for Internet access. Dealers would need some basic 
computer and Internet skills to input information for all grouper and 
tilefish purchases into the IFQ electronic reporting system.
    Dealers also would have to remit to NMFS, on a quarterly basis, the 
cost recovery fees initially set at 3 percent of the ex-vessel value of 
groupers and tilefishes purchased from IFQ share/allocation holders. 
Although IFQ share/allocation holders would have to pay this fee, it 
would be the responsibility of dealers to collect and remit these fees 
to NMFS. Dealers would be required to remit fees electronically by 
automatic clearing house (ACH), debit card or credit card. There is 
currently no available information to determine how many of the 159 
grouper or tilefish dealers have the necessary electronic capability to 
participate in the IFQ program. However, demonstration of this 
capability would be necessary for IFQ program participation. Those 
dealers currently participating in the red snapper IFQ program would 
generally meet most, if not all, of the requirements under the 
electronic reporting system.
    Holders of IFQ shares and allocations would need to have access to 
computers and the Internet to effect allocation transfers through the 
electronic reporting system. These persons would then be subject to the 
same cost and skill requirements as dealers. It is very likely that 
most individuals have access to computers and the Internet. It should 
also be pointed out that in the case of reporting a sale of groupers or 
tilefishes to a dealer, all the fisherman would have to do is to 
validate the sale using the dealer's computer. This requirement would 
affect all those who would initially qualify for, or those who would 
decide to participate in, the grouper and tilefish IFQ program.
    One other compliance issue under the IFQ system would involve 
landing and offloading of IFQ groupers or tilefishes. The owner or 
operator of a vessel landing IFQ groupers or tilefishes would have to 
provide NMFS an advance landing notification at least 3 hours but no 
more than 12 hours before arriving at a dock, berth, beach, seawall, or 
ramp. In addition, offloading of IFQ groupers or tilefishes would be 
allowed only between 6 a.m. and 6 p.m..
    This proposed rule would be expected to directly affect vessels 
that operate in the Gulf of Mexico commercial reef fish fishery and 
reef fish dealers or processors. The Small Business Administration 
(SBA) has established size criteria for all major industry sectors in 
the U.S. including fish harvesters, fish processors, and fish dealers. 
A business involved in fish harvesting is classified as a small 
business if it is independently owned and operated, is not dominant in 
its field of operation (including its affiliates), and has combined 
annual receipts not in excess of $4.0 million (NAICS code 114111, 
finfish fishing) for all affiliated operations worldwide. For seafood 
processors and dealers, rather than a receipts threshold, the SBA uses 
an employee threshold of 500 or fewer persons on a full-time, part-
time, temporary, or other basis, at all affiliated operations for a 
seafood processor and 100 or fewer persons for a seafood dealer.
    A total of 1,209 vessels is assumed to comprise the universe of 
commercial harvest operations in the Gulf reef fish fishery. This total 
includes vessels with active or renewable permits. An examination of 
permits in conjunction with logbook information revealed, however, that 
1,028 permits (as of November 2008) would have some records of landings 
during the Council's chosen period of 1999-2004 for purposes of 
determining initial apportionment of IFQ shares.
    Whereas there is a one to one correspondence between permits and 
vessels, the total number of vessels actually harvesting reef fish, or 
groupers or tilefishes, may be lower or higher than the number of 
permits. Some vessels may remain inactive in the reef fish fishery 
during the entire year, so there would be fewer vessels than permits. 
Because a permit can be transferred from one vessel to another during 
the year, the number of vessels harvesting any of the species in this 
amendment during the year may exceed the number of permits. This 
distinction is important when using logbook information to count 
vessels.
    For the period 1993-2006, an average of 1,123 vessels harvested at 
least 1 pound (0.45 kg) of reef fish, 993 vessels harvested any 
groupers or tilefishes, 765 vessels harvested red groupers, 591 vessels 
harvested gag, 977 vessels harvested shallow water groupers (SWG), 376 
vessels harvested deepwater groupers (DWG), and 212 vessels harvested 
tilefishes. For the period 1999-2004, an average of 1,075 vessels 
harvested at least 1 pound (0.45 kg) of reef fish, 968 vessels 
harvested any groupers or tilefishes, 767 vessels harvested red 
groupers, 655 vessels harvested gag, 958 vessels harvested SWG, 368 
vessels harvested DWG, and 193 vessels harvested tilefishes.
    Vessels harvesting reef fish in general and groupers or tilefishes 
in particular use a variety of gear. Some vessels use only one gear 
type while others use multiple gear types; thus, classification of 
vessels by gear type is not straightforward for some vessels. For the 
period 1993-2006, an average of 805 vessels harvested groupers or 
tilefishes using vertical lines, 171 vessels harvested groupers or 
tilefishes using longlines, and 162 vessels harvested groupers or 
tilefishes using other gear types (diving, trap, unclassified). For the 
period 1999-2004, an average of 790 vessels harvested groupers or 
tilefishes using vertical lines, 167 vessels harvested groupers or 
tilefishes using longlines, and 148 vessels harvested groupers or 
tilefishes using other gear types (diving, trap, unclassified).
    Collection of information regarding vessel operating costs was only 
initiated in mid-2005 and is anticipated to provide trip cost and 
return information once these data are processed and analyzed. 
Information from this survey was used in estimating overall economic 
effects on the commercial sector of an IFQ system in the fishery. This 
was possible as the evaluation was conducted on a trip basis. However, 
vessel-level gross and net revenues could not be readily derived using 
the same trip-based information. For our current purpose, we use cost 
and return information derived from an earlier survey of commercial 
reef fish fishermen in the Gulf of Mexico. High-volume vertical line 
vessels in the northern Gulf grossed an average of approximately 
$110,000 (2005 dollars) and those in the eastern Gulf grossed 
approximately $68,000. Their respective net revenues were approximately 
$28 thousand and $24,000. Low-volume vertical line vessels in the 
northern Gulf grossed approximately $24,000 and those in the eastern 
Gulf grossed

[[Page 20141]]

approximately $25,000. Their respective net revenues were approximately 
$7,000 and $4,000. High-volume longline vessels grossed approximately 
$117,000 while low-volume longline vessels grossed $88,000. Their 
respective net revenues were approximately $25,000 and $15,000. High-
volume fish traps (fish traps have been banned since February 2007) 
grossed approximately $93,000 while their low-volume counterparts 
grossed approximately $86,000. Their respective net revenues were 
approximately $19,000 and $21,000.
    A definitive calculation of which commercial entities would be 
considered large entities and small entities cannot be made using 
average income information. However, based on those data and the permit 
data showing the number of permits each person/entity owns, it appears 
that all of the commercial reef fish fleet would be considered small 
entities. The maximum number of permits reported to be owned by the 
same person/entity was six, additional permits (and revenues associated 
with those permits) may be linked through affiliation rules. 
Affiliation links cannot be made using permit data. If one entity held 
six permits and was a high-volume bottom longline gear vessel, they 
would be estimated to generate about $700,000 in annual revenue. That 
estimate is well below the $4 million threshold set by the SBA for 
defining a large entity.
    Also affected by the measures in this amendment are fish dealers, 
particularly those who receive gag and red groupers from harvesting 
vessels. Currently, a Federal permit is required for a fish dealer to 
receive reef fish from commercial vessels. As of November 2008, there 
were 159 active permits for dealers buying and selling reef fish 
species; but since the reef fish dealer permitting system in the Gulf 
is an open access program, the number of dealers can vary from year to 
year. As part of the commercial reef fish logbook program, reporting 
vessels identify the dealers who receive their landed fish. Commercial 
reef fish vessels with Federal permits are required to sell their 
harvest only to permitted dealers. For the period 2004-2007, these 
dealers handled an average of 10.8 million lb (4.9 million kg) of 
groupers and tilefishes valued at $25.4 million. These dealer 
transactions were distributed as follows: Florida, with 10 million lb 
(4.5 million kg) worth $23.5 million; Alabama and Mississippi, with 
102,000 lb (46,266 kg) worth $222 thousand; Louisiana, with 270,000 lb 
(122,476 kg) worth $592 thousand: and, Texas, with 434,000 lb (196,859 
kg) worth $1.03 million. The rest of transactions were handled by 
dealers outside of the Gulf.
    Average employment information per reef fish dealer is unknown. It 
is estimated that total employment for reef fish processors in the 
Southeast at approximately 700 individuals, both part and full time. It 
is assumed all processors must be dealers, yet a dealer need not be a 
processor. Further, processing is a much more labor intensive exercise 
than dealing. Therefore, given the employment estimate for the 
processing sector, it is assumed that the average dealer's number of 
employees would not surpass the SBA employment benchmark.
    Based on the gross revenue and employment profiles presented above, 
all permitted commercial reef fish vessels and fish dealers directly 
affected by the proposed rule may be classified as small entities.
    Because all entities that are expected to be affected by the 
proposed rule are considered small entities, the issue of 
disproportional impacts on small and large entities does not arise. 
Although some vessel operations are larger than others, they 
nevertheless fall within the definition of small entities.
    The various measures in this proposed rule have varying effects on 
small entities. Adoption of an IFQ program for the grouper and tilefish 
fishery has been estimated to result in variable cost savings to the 
fishing industry of $2.23 to $3.24 million per year. There would also 
be some unknown reductions in fixed costs. In addition, there would 
result possible increases in revenues as improved product quality would 
command higher prices.
    Permit stacking would allow owners to consolidate their multiple 
permits into one with corresponding consolidation of landings history 
for all permits. This may be expected to accelerate the reduction in 
the number of permits, resulting in cost savings to permit owners and 
in administrative cost reductions.
    Dual classification of both speckled hind and warsaw grouper into 
SWG and DWG would tend to reduce discards of both species and allow 
fishermen to keep more of these two species they catch. Also, this has 
been estimated to increase revenues of fishermen by $450,000.
    Restricting the number of participants eligible to receive initial 
IFQ shares to commercial permit holders only would prevent over-
extended distribution of IFQ shares while allowing active participants 
in the fishery to immediately benefit from the implementation of the 
grouper and tilefish IFQ program. This limitation would also tend to 
speed up the process of consolidation in the fishery, a result that 
would allow participants to reap the gains from an IFQ program over a 
relatively short time.
    Initial apportionment of IFQ shares based on landings history for 
the years 1999-2004, with allowance to drop one year, would provide a 
higher likelihood that active participants in the fishery would be 
allotted IFQ shares in accordance with the extent of their 
participation in the fishery. This would tend to preserve the 
historical landings status of eligible participants, so the initial 
impacts on their profits would be at least not be diminished. As the 
IFQ program progresses, their profits may be expected to increase 
whether or not they choose to fish their IFQs or lease or sell them to 
others.
    By defining IFQ shares on a species-specific basis, the eventual 
true value of each species may be generated. This option, however, 
could result in more discards of some species and complicate balancing 
of catch and quota as well as the monitoring of the IFQ program. It 
thus needs to be complemented by flexibility measures to assist IFQ 
participants in balancing their catch and quota holdings. The provision 
for multi-use allocations would introduce certain flexibility as IFQ 
participants would have some leeways in balancing their catch and quota 
holdings.
    The transferability aspect of IFQ shares/allocation provides the 
mechanism to allow the IFQ program to generate greater efficiency and 
higher profitability in the fishery. As such, the lesser the 
limitations on transferability the better the system would be. The 
proposed rule would limit transfers only to reef fish permit holders 
the first five years of the program and to a broader pool of 
participants thereafter. While the five-year limitation would unlikely 
bring about cost increases, it would not allow proper pricing of IFQ 
shares. This condition, however, may be necessary to allow IFQ holders 
to get familiar with the IFQ program before they engage in transfers 
outside of the limited pool of eligible IFQ transfer recipients.
    Establishing a cap on IFQ share holdings is consistent with the 
Magnuson-Stevens Act provision to prevent the acquisition of excessive 
shares in the IFQ program. The proposed rule to set the share cap to 
the maximum assigned to a participant during initial apportionment 
would allow every participant to at least maintain their existing scale 
of operation. Costs of operation and possibly revenues may be expected 
to remain the same. Over time, all

[[Page 20142]]

participants, except the highest one, would be able to increase their 
scale of operation they deem most profitable to them. The highest 
holders, however, and presumably the current more efficient producers 
would not have the same opportunity as the others.
    The same reasoning as stated in the preceding paragraph for a share 
cap would also apply to the proposed rule to establish a cap on IFQ 
allocation holdings. In addition, the established cap on IFQ 
allocations could possibly close the loophole allowing some 
participants to circumvent the established cap on IFQ share holdings by 
entering into a long-term contract with other participants.
    Quotas change periodically, so there is a need to address this in 
the IFQ program. The proposed rule would allocate quota adjustments, 
increases or decreases, in proportion to a participant's IFQ share 
ownership at the time of quota adjustments. This may not allocate quota 
adjustments as efficiently as an auction alternative, but it appears to 
be the least costly and least disruptive option.
    The establishment of an appeals process affords participants the 
opportunity to correct any mistakes in the initial allocation of IFQ 
shares. This could result in more costs to participants and the 
administering agency, but such costs are expected to be relatively 
small especially when seen against the potential benefits it would 
generate. The added provision to set aside 3 percent of the quota to 
settle appeals would prevent the possibility of taking back some 
allocations already distributed to participants.
    The cost recovery fee feature of the IFQ program (a requirement 
under the Magnuson-Stevens Act) would undoubtedly impose additional 
cost on fishing participants both in terms of reductions in revenue and 
increases in costs (particularly on dealers) to comply with the 
collection and remittance of the fees to NMFS. A 3-percent cost 
recovery fee based on total revenues could translate into larger 
reductions in profits, particularly for small fishing operations.
    Certified landing sites where fishermen are obligated to land their 
IFQ catches may increase the cost of fishing operations. This could 
happen if for some reasons, such as weather conditions and fishing 
opportunities, fishermen may have to travel far if the nearest landing 
site is not certified. This could, however, enhance the enforcement of 
IFQ rules which may help ensure that benefits from the program are not 
impaired.
    It is expected that the combined effects of the proposed rule would 
result in significant changes to the profitability status of fishing 
operations in the grouper and tilefish fishery. This is especially true 
over the long run when significant benefits, both in terms of revenue 
increases and cost decreases, may be expected to accrue. The net 
economic effects on dealers cannot be readily ascertained.
    Several alternatives were considered by the Council in their 
deliberation of the various measures in this amendment. For purposes of 
the succeeding discussion, each of the Council's preferred alternatives 
is termed proposed action.
    Three alternatives, including no action, were considered for 
establishment of an IFQ program. The first alternative (no action) to 
the proposed action would maintain the incentives to overcapitalize the 
fishery and to promote derby fishing. Such conditions may be expected 
to result in increased operating costs, increased likelihood of 
shortened seasons, reduced at-sea safety, wide fluctuations in domestic 
grouper and tilefish supply, and depressed ex-vessel prices for 
groupers and tilefishes. The other alternative to the proposed action, 
establishment of an endorsement system, would have short-term 
effectiveness in addressing overcapitalization and derby fishing by 
reducing the number of participants. Over the long run, remaining 
participants may be expected to increase their effort either through 
vessel, crew, and equipment upgrades or via additional or longer 
fishing trips.
    The only alternative to the proposed action of consolidating 
multiple commercial reef fish permits is the no action alternative. 
This alternative would not accelerate the reduction in the number of 
permits, thus forgoing the benefits from permit stacking due to cost 
savings by permit owners and reductions in administrative costs.
    Four alternatives, including no action, were considered regarding 
the species composition of DWG and SWG. The first alternative (no 
action) to the proposed action would maintain the composition of the 
SWG and DWG management units. This alternative would neither reduce the 
discards of speckled hind or warsaw grouper nor grant flexibility to 
IFQ participants. The second alternative to the proposed action would 
classify speckled hind as both SWG and DWG while the third alternative 
to the proposed action would classify warsaw grouper as both SWG and 
DWG. These two alternatives would reduce discards and add flexibility 
to IFQ participants but only with respect to either speckled hind or 
warsaw grouper but not both as in the proposed action.
    Four alternatives, including no action, were considered for initial 
eligibility in the IFQ program. The first alternative (no action) to 
the proposed action would not specify initial eligibility requirements 
for IFQ share allocation, and thus is deemed to provide insufficient 
guidance in initially allocating IFQ shares. The other alternatives to 
the proposed action would include more entities for initial 
distribution of IFQ shares: a) commercial reef fish permit holders and 
reef fish captains and crew, b) commercial reef fish permit holders and 
permitted dealers, and c) commercial reef fish permit holders, reef 
fish captains and crew, and permitted dealers. These other alternatives 
to the proposed action would complicate the determination of initial 
IFQ holders, slow down the eventual consolidation of fishing operations 
in the fishery, and lessen the likelihood of maintaining viable fishing 
operations.
    Four alternatives, including no action, were considered for the 
initial apportionment of IFQ shares. The first alternative (no action) 
to the proposed action would not provide any guidance in initially 
apportioning IFQ shares. The second alternative to the proposed action 
would proportionately allocate IFQ shares based on average annual 
landings during 1999-2004. This alternative is less flexible than the 
proposed action where eligible participants could drop one year in 
calculating annual average landings. The third alternative to the 
proposed action would initially distribute IFQ shares through an 
auction. This alternative may be deemed best in generating the most 
appropriate value for IFQ shares at the start of the program. However, 
this alternative offers some possibility that some historical yet 
active participants in the fishery would not receive any IFQ share or 
receive only few shares that would not make their fishing operations 
viable.
    Four alternatives, including no action, were considered for IFQ 
share definitions. The first alternative (no action) to the proposed 
action would not establish IFQ shares and is therefore not a viable 
alternative under an IFQ system. The second alternative to the proposed 
action would establish a single IFQ share for the combined groupers and 
tilefishes. While this alternative would tend to minimize transaction 
costs and eliminate the need to trade shares to balance catch and quota 
holdings, it would limit the effectiveness of species-specific

[[Page 20143]]

management measures and complicate the future establishment of annual 
catch limits required by the Magnuson-Stevens Act. The third 
alternative to the proposed action would establish separate IFQ shares 
for the deep water grouper complex, the shallow water grouper complex, 
and tilefish. As with the second alternative, this particular 
alternative would limit the effectiveness of species-specific 
management measures and complicate the future establishment of annual 
catch limits required by the Magnuson-Stevens Act.
    Three alternatives, including no action, were considered for multi-
use allocation and trip limits. The first alternative (no action) to 
the proposed action would not establish multi-use IFQ shares or trip 
allowances and thus, would not contribute to catch and quota balancing 
under the IFQ program. The second alternative to the proposed action 
would establish a trip allowance granting IFQ participants the 
flexibility to land red or gag for which the IFQ participant has no 
allocation by using allocation from the other species (i.e., red or 
gag). This alternative would not cap the amount of multi-use allocation 
and would be associated with a higher likelihood of exceeding allowable 
harvest levels.
    Three alternatives, including no action, were considered for 
transfer eligibility requirements. The first alternative (no action) to 
the proposed action would make any U.S. citizen or permanent resident 
alien eligible for IFQ share or allocation transfer. Among the 
alternatives, this one would immediately allow the largest pool of IFQ 
share/allocation recipients, thereby providing the best mechanism for 
eliciting the highest value of an IFQ share or allocation. The 
difference between this alternative and the proposed action is the 
provision in the latter that transfers be allowed only among holders of 
commercial reef fish permits during the first 5 years of the IFQ 
program. Over the long-run, then, the two alternatives would have the 
same economic effects. The proposed action reflects the Council's 
intent to provide enough time for current fishery participants to be 
familiar with the nature of the IFQ system, particularly with respect 
to proper valuation of IFQ shares/allocations, before opening up the 
market to a broader pool of participants. The second alternative to the 
proposed action would limit transfer eligibility only to commercial 
reef fish permit holders. This alternative was not chosen, because it 
would constrain the process of valuing IFQ shares/allocations over a 
long time.
    Three alternatives, including no action, were considered for caps 
on IFQ share ownership. The first alternative (no action) to the 
proposed action would not impose any cap on IFQ share ownership. 
Although this alternative offers the best environment for individual 
fishing operations to determine their most profitable scale of 
operations, this was not chosen because it also offers the highest 
probability for an individual fishing operation or very few fishing 
operations to obtain ``excessive share'' which the Magnuson-Stevens Act 
disallows. The second alternative to the proposed action would impose 
an IFQ share cap of 5 percent, 10 percent, or 15 percent of either the 
total grouper and tilefish shares or each type of species-specific 
shares. Part of this second alternative is the provision for 
grandfathering in those with initial percent shares higher than the 
chosen ownership cap. Although this alternative appears to balance the 
concern over excessive share and that of constraining the operations of 
the most efficient producers, this was not chosen because it would 
appear to impose arbitrary levels of maximum share ownership. The issue 
of grandfathering in those with initial share above the maximum would 
also limit the ability of some producers to compete in the open market 
against those grandfathered in. Part of the rationale for the proposed 
action was to achieve consistency with similar provision in the red 
snapper IFQ program, and this would not be achieved under the two 
alternatives to the proposed action. A sub-option under the proposed 
action which would impose a cap on total grouper and tilefish IFQ 
shares but not on each type of IFQ share was not chosen, because it 
could result in some entities obtaining excessive shares of certain 
species.
    Three alternatives, including no action, were considered for caps 
on IFQ allocation ownership. The first alternative (no action) to the 
proposed action would not limit the amount of IFQ allocation to be 
owned by any entity each year. Although this alternative would provide 
the best economic environment relative to the holding of IFQ 
allocations, it would afford some entities the opportunity to 
circumvent the provision on IFQ share cap by entering into long-term 
arrangements with IFQ share/allocation holders. The second alternative 
to the proposed action would impose an allocation cap of an additional 
1 percent, 2 percent, or 5 percent above the percent cap on IFQ share 
ownership. This alternative was not chosen because of the potential 
complication it would add to the monitoring and enforcement of share 
ownership cap.
    Three alternatives, including no action, were considered for 
adjustments in annual allocations of commercial TAC. The first 
alternative (no action) to the proposed action would not specify the 
allocation mechanism of any changes in commercial TAC. This alternative 
was not chosen because it would require the Council to address 
allocation issue every time the commercial quota is adjusted and thus 
would impose additional administrative costs. This could also delay the 
determination of each entity's allocation at the start of the fishing 
season which could be disruptive to the affected entity's fishing 
operations. The second alternative to the proposed action would 
allocate adjustments in the commercial quota via an auction system. 
This alternative was not chosen because it could complicate and thus 
increase the cost of allocating quota adjustments. Moreover, it could 
raise equity concerns if the winners were new entrants who did not 
share the cost of managing the fishery.
    Four alternatives, including no action, were considered regarding 
the appeals process. The proposed action consists of two alternatives. 
One pertains to the establishment and structure of an appeals process 
and the other to the provision of a commercial quota set-aside to 
resolve appeals. The first alternative (no action) to the proposed 
action on appeals process would not provide a formal, in-house means of 
addressing disputes particularly regarding initial IFQ share allocation 
and so was not chosen by the Council. The second alternative to the 
proposed action on appeals process would establish a special board 
composed of state directors/designees who will review, evaluate, and 
make individual recommendations to the NMFS RA on appeals. This 
alternative was not chosen because it would merely add layers to the 
appeals process that would tend to increase the administrative costs. 
Besides, this alternative would mainly provide board members' advice to 
the RA on appeals matters. The 3-percent quota set-aside is based on a 
similar percent level chosen for the red snapper IFQ program that 
sufficiently accommodated all appeals.
    Three alternatives, including no action, were considered for a cost 
recovery plan. The first alternative (no action) to the proposed action 
would not impose a cost recovery fee. This would not be consistent with 
provisions of the Magnuson-Stevens Act. The second alternative to the 
proposed action would require each IFQ

[[Page 20144]]

registered buyer who purchased IFQ groupers or tilefishes to submit an 
IFQ Buyer report either on a quarterly or annual basis. This 
alternative was deemed to mainly impose additional costs with 
relatively small economic or social benefits. Under the proposed 
action, several sub-options were also considered but rejected. The 
first of such sub-options would calculate the recovery fee based on 
standard, as opposed to actual, ex-vessel value. The second sub-option 
would impose the responsibility of collecting and remitting the fees on 
the IFQ shareholders. The third sub-option would require the remittance 
of collected fees on a monthly basis. The rationale for their rejection 
was that being inconsistent with corresponding provisions in the red 
snapper IFQ system would add complication to the cost recovery plan and 
add costs to both the participants and NMFS.
    Three alternatives, including no action, were considered for 
certifying landing sites. The first alternative (no action) to the 
proposed action would not establish certified landing sites for IFQ 
programs in the commercial reef fish fisheries, thus providing no 
additional means to improve enforcement of the grouper and tilefish IFQ 
program. The second alternative to the proposed action would require 
that landing sites be certified by the Office of Law Enforcement in 
order for IFQ fishermen to use the VMS units as an option for reporting 
landing notifications. This was deemed unnecessary for monitoring and 
enforcing the grouper and tilefish IFQ program. Under the proposed 
action, a sub-option providing for the selection of certified landing 
sites by the Council and NMFS, based on industry recommendations and 
resource availability was not adopted. This sub-option was deemed more 
restrictive than the proposed action in identifying landing sites for 
certification purposes.
    In addition to the above, Amendment 29 also explicitly considered 
six other issues for which the Council chose the no action 
alternatives. These issues are: (1) definition of ``substantial 
participants'' for the IFQ program; (2) ``use it or lose it'' policy 
for IFQ shares; (3) IFQ guaranteed loan program; (4) minimum threshold 
landings for the endorsement system; (5) qualifying years for the 
endorsement system; and, (6) incidental catch provision under the 
endorsement system.
    Seven alternatives, including no action, were considered for the 
definition of substantial participants. The various alternatives would 
include varying entities as substantial participants in the fishery. 
The first alternative (no action) would not impose an all-encompassing 
number of eligible entities for the transfer of IFQ shares/allocations; 
the second would include only commercial reef fish permit holders; the 
third would include commercial reef fish permit holders and reef fish 
captains and crew; the fourth would include commercial reef fish permit 
holders and permitted reef fish dealers; the fifth would include 
commercial reef fish permit holders, permitted reef fish dealers, and 
reef fish captains and crew; the sixth would include commercial reef 
fish permit holders considered substantial participants for purposes of 
the referendum; and, the seventh would include commercial reef fish 
permit holders, reef fish captains and crew, and others who provide 
services in the reef fish fishery, such as restaurant owners and fish 
house employees. All these alternatives, except no action, would limit 
the number of entities eligible for the transfer of IFQ shares and 
annual allocations so as to eventually affect the appropriate pricing 
of shares, allocations, and ultimately the fish resource.
    Three alternatives, including no action, were considered for the 
``use it or lose it'' policy for IFQ shares. The first alternative (no 
action) would not require any minimum landings for an IFQ share to 
remain valid; the second would provide for the revocation and 
subsequent redistribution among the remaining shareholders of IFQ share 
certificates that remain inactive (less than 30-percent utilization) 
for 3 years; the third is similar to the second, except that it defines 
inactivity as less than 50-percent utilization of allotted IFQ shares. 
All these alternatives, except no action, would tend to unduly penalize 
those experiencing problems with their equipment, labor, or health. 
Although, the alternatives, other than no action, would address 
permanent disability. In addition, they would mainly increase 
monitoring costs without necessarily providing any tangible economic or 
social benefits.
    Three alternatives, including no action, were considered for the 
IFQ loan program. The first alternative (no action) would not establish 
a guaranteed loan program under the IFQ system; the second would set 
aside 15 percent of the cost recovery fees to establish a guaranteed 
loan program; and, the third would set aside 25 percent of the cost 
recovery fees to establish a guaranteed loan program. Establishing a 
guaranteed loan program under the second or third alternative would use 
up part of the cost recovery fees as well as divert NMFS resources that 
could otherwise be devoted to effectively administer the grouper and 
tilefish IFQ program.
    Three sets of alternatives were considered for the endorsement 
system. Three alternatives, including no action, were considered for 
minimum threshold landings for endorsements; three alternatives, 
including no action, were considered for qualifying years for 
endorsement eligibility; and, three alternatives, including no action, 
were considered for incidental catch provision under the endorsement 
system. Opting for the no action alternatives follows from the 
Council's decision to reject the endorsement system as an effort 
management approach in favor of the IFQ program.
    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall a person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the Paperwork Reduction Act (PRA) unless that collection of 
information displays a currently valid Office of Management and Budget 
(OMB) control number.
    This proposed rule contains collection-of-information requirements 
subject to the PRA. The collections and the associated estimated 
average public reporting burden per response are provided in the 
following table.

------------------------------------------------------------------------
                                                  ESTIMATED BURDEN PER
            COLLECTION REQUIREMENT                      RESPONSE
------------------------------------------------------------------------
Dealer Account Activation                      5 minutes
------------------------------------------------------------------------
Dealer Transaction Report                      7 minutes
------------------------------------------------------------------------
Shareholder Account Activation                 5 minutes
------------------------------------------------------------------------
Fisherman Account Activation                   10 minutes
------------------------------------------------------------------------
Active Vessels Report                          10 minutes
------------------------------------------------------------------------
Approval of Landing Location                   5 minutes
------------------------------------------------------------------------
Notification of Landing Time                   3 minutes
------------------------------------------------------------------------
Transfer of Share                              15 minutes
------------------------------------------------------------------------
Transfer of Allocation                         5 minutes
------------------------------------------------------------------------
Permit Consolidation                           10 minutes
------------------------------------------------------------------------

    These requirements have been submitted to OMB for approval. These 
estimates of the public reporting burden includes the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and

[[Page 20145]]

reviewing the collections of information.
    Public comment is sought regarding: whether these proposed 
collections of information are necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; the accuracy of the burden estimates; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and 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 
regarding the burden estimates or any other aspect of the collection-
of-information requirements, including suggestions for reducing the 
burden, to NMFS and to OMB (see ADDRESSES).

List of Subjects in 50 CFR Part 622

    Fisheries, Fishing, Puerto Rico, Reporting and recordkeeping 
requirements, Virgin Islands.

    Dated: April 21, 2009.
John Oliver,
Deputy Assistant Administrator for Operations, National Marine 
Fisheries Service.
    For the reasons set out in the preamble, 50 CFR part 622 is 
proposed to be amended as follows:

PART 622--FISHERIES OF THE CARIBBEAN, GULF, AND SOUTH ATLANTIC

    1. The authority citation for part 622 continues to read as 
follows:

    Authority: 16 U.S.C. 1801 et seq.
    2. In Sec.  622.1, paragraph (b), Table 1, the entry for FMP for 
the Reef Fish Resources of the Gulf of Mexico, and footnote 5 are 
revised, and footnote 6 is added to read as follows:


Sec.  622.1  Purpose and scope.

* * * * *
    (b) * * *

                Table 1--FMPs Implemented Under Part 622
------------------------------------------------------------------------
                   Responsible fishery
  FMP title       management council(s)           Geographical area
------------------------------------------------------------------------
                                * * * * *
 
FMP for the   GMFMC                         Gulf.\1,\\5,\\6\
 Reef Fish
 Resources
 of the Gulf
 of Mexico.
                                * * * * *
 
------------------------------------------------------------------------
 \1\ Regulated area includes adjoining state waters for purposes of data
  collection and quota monitoring.
* * * * *
\5\ Regulated area includes adjoining state waters for Gulf red snapper
  harvested or possessed by a person aboard a vessel for which a Gulf
  red snapper IFQ vessel account has been established or possessed by a
  dealer with a Gulf IFQ dealer endorsement.
\6\ Regulated area includes adjoining state waters for Gulf groupers and
  tilefishes harvested or possessed by a person aboard a vessel for
  which an IFQ vessel account for Gulf groupers and tilefishes has been
  established or possessed by a dealer with a Gulf IFQ dealer
  endorsement.

    3. In Sec.  622.2, the definitions of ``Deep-water groupers (DWG)'' 
and ``Shallow-water groupers (SWG)'' are added to read as follows:


Sec.  622.2  Definitions and acronyms.

* * * * *
    Deep-water groupers (DWG) means yellowedge grouper, misty grouper, 
warsaw grouper, snowy grouper, and speckled hind. In addition, for the 
purposes of the IFQ program for Gulf groupers and tilefishes in Sec.  
622.20, scamp are also included as DWG as specified in Sec.  
622.20(b)(2)(vi).
* * * * *
    Shallow-water groupers (SWG) means gag, red grouper, black grouper, 
scamp, yellowfin grouper, rock hind, red hind, and yellowmouth grouper. 
In addition, for the purposes of the IFQ program for Gulf groupers and 
tilefishes in Sec.  622.20, speckled hind and warsaw grouper are also 
included as SWG as specified in Sec.  622.20(b)(2)(v).
* * * * *
    4. In Sec.  622.4, paragraphs (a)(2)(v), (a)(2)(ix), and (a)(4)(ii) 
are revised, and a new sentence is added after the third sentence in 
paragraph (i) to read as follows:


Sec.  622.4  Permits and fees.

* * * * *
    (a) * * *
    (2) * * *
    (v) Gulf reef fish. For a person aboard a vessel to be eligible for 
exemption from the bag limits, to fish under a quota, as specified in 
Sec.  622.42(a)(1), or to sell Gulf reef fish in or from the Gulf EEZ, 
a commercial vessel permit for Gulf reef fish must have been issued to 
the vessel and must be on board. If Federal regulations for Gulf reef 
fish in subparts A, B, or C of this part are more restrictive than 
state regulations, a person aboard a vessel for which a commercial 
vessel permit for Gulf reef fish has been issued must comply with such 
Federal regulations regardless of where the fish are harvested. See 
paragraph (a)(2)(ix) of this section regarding an IFQ vessel account 
required to fish for, possess, or land Gulf red snapper or Gulf 
groupers and tilefishes. To obtain or renew a commercial vessel permit 
for Gulf reef fish, more than 50 percent of the applicant's earned 
income must have been derived from commercial fishing (i.e., harvest 
and first sale of fish) or from charter fishing during either of the 2 
calendar years preceding the application. See paragraph (m) of this 
section regarding a limited access system for commercial vessel permits 
for Gulf reef fish and limited exceptions to the earned income 
requirement for a permit.
    (A) Option to consolidate commercial vessel permits for Gulf reef 
fish. A person who has been issued multiple commercial vessel permits 
for Gulf reef fish and wants to consolidate some or all of those 
permits, and the landings histories associated with those permits, into 
one permit must submit a completed permit consolidation application to 
the RA. The permits consolidated must be valid, non-expired permits and 
must be issued to the same entity. The application form and 
instructions are available online at sero.nmfs.noaa.gov. After 
consolidation, such a person would have a single permit, and the 
permits that were consolidated into that permit will be permanently 
terminated.
    (B) [Reserved]
* * * * *
    (ix) Gulf IFQ vessel accounts. For a person aboard a vessel, for 
which a commercial vessel permit for Gulf reef fish has been issued, to 
fish for, possess, or land Gulf red snapper or Gulf groupers (including 
DWG and SWG, as specified in Sec.  622.20(a)) or tilefishes (including 
goldface tilefish, blackline tilefish, anchor tilefish, blueline 
tilefish, and tilefish), regardless of where harvested or possessed, a 
Gulf IFQ vessel account for the applicable species or species groups 
must have been established. As a condition of the IFQ vessel account, a 
person aboard such vessel must comply with the requirements of Sec.  
622.16 when fishing for red snapper or Sec.  622.20 when fishing for 
groupers or tilefishes regardless of where the fish are harvested or

[[Page 20146]]

possessed. An owner of a vessel with a commercial vessel permit for 
Gulf reef fish, who has established an IFQ account for the applicable 
species, as specified in Sec.  622.16(a)(3)(i) or Sec.  
622.20(a)(3)(i), online via the NMFS IFQ website 
ifq.sero.nmfs.noaa.gov, may establish a vessel account through that IFQ 
account for that permitted vessel. If such owner does not have an 
online IFQ account, the owner must first contact IFQ Customer Service 
at 1-866-425-7627 to obtain information necessary to access the IFQ 
website and establish an online IFQ account. There is no fee to set-up 
an IFQ account or a vessel account. Only one vessel account may be 
established per vessel under each IFQ program. An owner with multiple 
vessels may establish multiple vessel accounts under each IFQ account. 
The purpose of the vessel account is to hold IFQ allocation that is 
required to land the applicable IFQ species. A vessel account must hold 
sufficient IFQ allocation in the appropriate share category, at least 
equal to the pounds in gutted weight of the red snapper or groupers and 
tilefishes on board, from the time of advance notice of landing through 
landing (except for any overage allowed as specified in Sec.  
622.16(c)(1)(ii) for red snapper and Sec.  622.20(c)(1)(ii) for 
groupers and tilefishes). The vessel account remains valid as long as 
the vessel permit remains valid; the vessel has not been sold or 
transferred; and the vessel owner is in compliance with all Gulf reef 
fish and IFQ reporting requirements, has paid all applicable IFQ fees, 
and is not subject to sanctions under 15 CFR part 904. The vessel 
account is not transferable to another vessel. The provisions of this 
paragraph do not apply to fishing for or possession of Gulf groupers 
and tilefishes under the bag limit specified in Sec.  622.39 (b)(1)(ii) 
or Gulf red snapper under the bag limit specified in Sec.  622.39 
(b)(1)(iii). See Sec.  622.16 regarding other provisions pertinent to 
the Gulf red snapper IFQ system and Sec.  622.20 regarding other 
provisions pertinent to the IFQ system for Gulf groupers and 
tilefishes.
* * * * *
    (4) * * *
    (ii) Gulf IFQ dealer endorsements. In addition to the requirement 
for a dealer permit for Gulf reef fish as specified in paragraph 
(a)(4)(i) of this section, for a dealer to receive red snapper subject 
to the Gulf red snapper IFQ program, as specified in Sec.  
622.16(a)(1), or groupers and tilefishes subject to the IFQ program for 
Gulf groupers and tilefishes, as specified in Sec.  622.20(a)(1), or 
for a person aboard a vessel with a Gulf IFQ vessel account to sell 
such red snapper or groupers and tilefishes directly to an entity other 
than a dealer, such persons must also have a Gulf IFQ dealer 
endorsement. A dealer with a Gulf reef fish permit can download a Gulf 
IFQ dealer endorsement from the NMFS IFQ website at 
ifq.sero.nmfs.noaa.gov. If such persons do not have an IFQ online 
account, they must first contact IFQ Customer Service at 1-866-425-7627 
to obtain information necessary to access the IFQ website and establish 
an IFQ online account. There is no fee for obtaining this endorsement. 
The endorsement remains valid as long as the Gulf reef fish dealer 
permit remains valid and the dealer is in compliance with all Gulf reef 
fish and IFQ reporting requirements, has paid all IFQ fees required 
under paragraph (c)(2) of this section, and is not subject to any 
sanctions under 15 CFR part 904. The endorsement is not transferable. 
See Sec.  622.16 regarding other provisions pertinent to the Gulf red 
snapper IFQ system and Sec.  622.20 regarding other provisions 
pertinent to the IFQ system for Gulf groupers and tilefishes.
* * * * *
    (i) Display. * * * A Gulf IFQ dealer endorsement must accompany 
each vehicle that is used to pick up Gulf IFQ red snapper and/or Gulf 
IFQ groupers and tilefishes. * * *
* * * * *
    5. In Sec.  622.7, paragraphs (gg) and (hh) are revised to read as 
follows:


Sec.  622.7  Prohibitions.

* * * * *
    (gg) Fail to comply with any provision related to the Gulf red 
snapper IFQ program as specified in Sec.  622.16, or the IFQ program 
for Gulf groupers and tilefishes as specified in Sec.  622.20.
    (hh) Falsify any information required to be submitted regarding the 
Gulf red snapper IFQ program as specified in Sec.  622.16, or the IFQ 
program for Gulf groupers and tilefishes as specified in Sec.  622.20.
* * * * *
    6. In Sec.  622.16, revise the fifth and sixth sentences in the 
introductory text of paragraph (a), and revise paragraphs (a)(1) and 
(c) to read as follows:


Sec.  622.16  Gulf red snapper individual fishing quota (IFQ) program.

    (a) * * * See Sec.  622.4(a)(2)(ix) regarding a requirement for a 
vessel landing red snapper subject to this IFQ program to have a Gulf 
red snapper IFQ vessel account. See Sec.  622.4(a)(4)(ii) regarding a 
requirement for a Gulf IFQ dealer endorsement. * * *
    (1) Scope. The provisions of this section apply to Gulf red snapper 
in or from the Gulf EEZ and, for a person aboard a vessel with a Gulf 
red snapper IFQ vessel account as required by Sec.  622.4(a)(2)(ix) or 
for a person with a Gulf IFQ dealer endorsement as required by Sec.  
622.4(a)(4)(ii), these provisions apply to Gulf red snapper regardless 
of where harvested or possessed.
* * * * *
    (c) IFQ operations and requirements--(1) IFQ Landing and 
transaction requirements. (i) Gulf red snapper subject to this IFQ 
program can only be possessed or landed by a vessel with a Gulf red 
snapper IFQ vessel account with allocation at least equal to the pounds 
of red snapper on board, except as provided in paragraph (c)(1)(ii) of 
this section. Such red snapper can only be received by a dealer with a 
Gulf IFQ dealer endorsement.
    (ii) A person on board a vessel with an IFQ vessel account landing 
the shareholder's only remaining allocation, can legally exceed, by up 
to 10 percent, the shareholder's allocation remaining on that last 
fishing trip of the fishing year, i.e., a one-time per fishing year 
overage. Any such overage will be deducted from the shareholder's 
applicable allocation for the subsequent fishing year. From the time of 
the overage until January 1 of the subsequent fishing year, the IFQ 
shareholder must retain sufficient shares to account for the allocation 
that will be deducted the subsequent fishing year. Share transfers that 
would violate this requirement will be prohibited.
    (iii) The dealer is responsible for completing a landing 
transaction report for each landing and sale of Gulf red snapper via 
the IFQ website at ifq.sero.nmfs.noaa.gov at the time of the 
transaction in accordance with reporting form and instructions provided 
on the website. This report includes, but is not limited to, date, 
time, and location of transaction; weight and actual ex-vessel value of 
red snapper landed and sold; and information necessary to identify the 
fisherman, vessel, and dealer involved in the transaction. The 
fisherman must validate the dealer transaction report by entering his 
unique PIN number when the transaction report is submitted. After the 
dealer submits the report and the information has been verified, the 
website will send a transaction approval code to the dealer and the 
allocation holder.
    (iv) If there is a discrepancy regarding the landing transaction 
report after approval, the dealer or vessel account holder (or his or 
her authorized agent) may initiate a landing transaction correction 
form to correct the landing

[[Page 20147]]

transaction. This form is available via the IFQ website at 
ifq.sero.nmfs.noaa.gov. Both parties must validate the landing 
correction form by entering their respective PIN numbers, i.e. vessel 
account PIN or dealer account PIN. The dealer must then print out the 
form, both parties must sign it, and the form must be mailed to NMFS. 
The form must be received by NMFS no later than 15 days after the date 
of the initial landing transaction.
    (2) IFQ cost recovery fees. As required by section 304(d)(2)(A)(i) 
of the Magnuson-Stevens Act, the RA will collect a fee to recover the 
actual costs directly related to the management and enforcement of the 
Gulf red snapper IFQ program. The fee cannot exceed 3 percent of the 
ex-vessel value of Gulf red snapper landed under the IFQ program. Such 
fees will be deposited in the Limited Access System Administration Fund 
(LASAF). Initially, the fee will be 3 percent of the actual ex-vessel 
value of Gulf red snapper landed under the IFQ program, as documented 
in each landings transaction report. The RA will review the cost 
recovery fee annually to determine if adjustment is warranted. Factors 
considered in the review include the catch subject to the IFQ cost 
recovery, projected ex-vessel value of the catch, costs directly 
related to the management and enforcement of the IFQ program, the 
projected IFQ balance in the LASAF, and expected non-payment of fee 
liabilities. If the RA determines that a fee adjustment is warranted, 
the RA will publish a notification of the fee adjustment in the Federal 
Register.
    (i) Payment responsibility. The IFQ allocation holder specified in 
the documented red snapper IFQ landing transaction report is 
responsible for payment of the applicable cost recovery fees.
    (ii) Collection and submission responsibility. A dealer who 
receives Gulf red snapper subject to the IFQ program is responsible for 
collecting the applicable cost recovery fee for each IFQ landing from 
the IFQ allocation holder specified in the IFQ landing transaction 
report. Such dealer is responsible for submitting all applicable cost 
recovery fees to NMFS on a quarterly basis. The fees are due and must 
be submitted, using pay.gov via the IFQ system at the end of each 
calendar-year quarter, but no later than 30 days after the end of each 
calendar-year quarter. Fees not received by the deadline are 
delinquent.
    (iii) Fee payment procedure. For each IFQ dealer, the IFQ system 
will post, on individual message boards, an end-of-quarter statement of 
cost recovery fees that are due. The dealer is responsible for 
submitting the cost recovery fee payments using pay.gov via the IFQ 
system. Authorized payments methods are credit card, debit card, or 
automated clearing house (ACH). Payment by check will be authorized 
only if the RA has determined that the geographical area or an 
individual(s) is affected by catastrophic conditions.
    (iv) Fee reconciliation process--delinquent fees. The following 
procedures apply to an IFQ dealer whose cost recovery fees are 
delinquent.
    (A) On or about the 31st day after the end of each calendar-year 
quarter, the RA will send the dealer an electronic message via the IFQ 
website and official notice via mail indicating the applicable fees are 
delinquent, and the dealer's IFQ account has been suspended pending 
payment of the applicable fees.
    (B) On or about the 91st day after the end of each calendar-year 
quarter, the RA will refer any delinquent IFQ dealer cost recovery fees 
to the appropriate authorities for collection of payment.
    (3) Measures to enhance IFQ program enforceability--(i) Advance 
notice of landing. For the purpose of this paragraph, landing means to 
arrive at a dock, berth, beach, seawall, or ramp. The owner or operator 
of a vessel landing IFQ red snapper is responsible for ensuring that 
NMFS is contacted at least 3 hours, but no more than 12 hours, in 
advance of landing to report the time and location of landing, 
estimated red snapper landings in pounds gutted weight, vessel 
identification number (Coast Guard registration number or state 
registration number), and the name and address of the IFQ dealer where 
the red snapper are to be received. The vessel landing red snapper must 
have sufficient IFQ allocation in the IFQ vessel account, at least 
equal to the pounds in gutted weight of red snapper on board (except 
for any overage up to the 10 percent allowed on the last fishing trip) 
from the time of the advance notice of landing through landing. 
Authorized methods for contacting NMFS and submitting the report 
include calling NMFS Office for Law Enforcement at 1-866-425-7627, 
completing and submitting to NMFS the notification form provided 
through the VMS unit, or providing the required information to NMFS 
through the web-based form available on the IFQ website at 
ifq.sero.nmfs.noaa.gov. As new technology becomes available, NMFS will 
add other authorized methods for complying with the advance 
notification requirement, via appropriate rulemaking. Failure to comply 
with this advance notice of landing requirement is unlawful and will 
preclude authorization to complete the landing transaction report 
required in paragraph (c)(1)(iii) of this section and, thus, will 
preclude issuance of the required transaction approval code.
    (ii) Time restriction on offloading. IFQ red snapper may be 
offloaded only between 6 a.m. and 6 p.m., local time.
    (iii) Restrictions on transfer of IFQ red snapper. At-sea or 
dockside transfer of IFQ red snapper from one vessel to another vessel 
is prohibited.
    (iv) Requirement for transaction approval code. If IFQ red snapper 
are offloaded to a vehicle for transportation to a dealer or are on a 
vessel that is trailered for transport to a dealer, on-site capability 
to accurately weigh the fish and to connect electronically to the 
online IFQ system to complete the transaction and obtain the 
transaction approval code is required. After a landing transaction has 
been completed, a transaction approval code verifying a legal 
transaction of the amount of IFQ red snapper in possession and a copy 
of the dealer endorsement must accompany any IFQ red snapper from the 
landing location through possession by a dealer. This requirement also 
applies to IFQ red snapper possessed on a vessel that is trailered for 
transport to a dealer.
    (v) Approved landing locations. Landing locations must be approved 
by NMFS Office for Law Enforcement prior to landing or offloading at 
these sites. Proposed landing locations may be submitted online via the 
IFQ website at ifq.sero.nmfs.noaa.gov, or by calling IFQ Customer 
Service at 1-866-425-7627, at any time, however, new landing locations 
will be approved only at the end of each calendar-year quarter. To have 
a landing location approved by the end of the calendar-year quarter, it 
must be submitted at least 45 days before the end of the calendar-year 
quarter. NMFS will evaluate the proposed sites based on, but not 
limited to, the following criteria:
    (A) Landing locations must be publicly accessible by land and 
water, and
    (B) They must have a street address. If there is no street address 
on record for a particular landing location, global positioning system 
(GPS) coordinates for an identifiable geographic location must be 
provided.
    (4) Transfer of IFQ shares and allocation. Until January 1, 2012, 
IFQ shares and allocations can be transferred only to a person who 
holds a valid commercial vessel permit for Gulf reef fish; thereafter, 
IFQ shares and allocations can be transferred to any U.S. citizen or 
permanent resident alien.

[[Page 20148]]

 However, a valid commercial permit for Gulf reef fish, a Gulf red 
snapper IFQ vessel account, and Gulf red snapper IFQ allocation are 
required to possess (at and after the time of the advance notice of 
landing), land or sell Gulf red snapper subject to this IFQ program.
    (i) Share transfers. Share transfers are permanent, i.e., they 
remain in effect until subsequently transferred. Transfer of shares 
will result in the corresponding allocation being automatically 
transferred to the person receiving the transferred share beginning 
with the fishing year following the year the transfer occurred. 
However, within the fishing year the share transfer occurs, transfer of 
shares and associated allocation are independent--unless the associated 
allocation is transferred separately, it remains with the transferor 
for the duration of that fishing year. A share transfer transaction 
that remains in pending status, i.e., has not been completed and 
verified with a transaction approval code, after 30 days from the date 
the shareholder initiated the transfer will be cancelled, and the 
pending shares will be re-credited to the shareholder who initiated the 
transfer.
    (ii) Share transfer procedures. Share transfers must be 
accomplished online via the IFQ website. An IFQ shareholder must 
initiate a share transfer request by logging onto the IFQ website at 
ifq.sero.nmfs.noaa.gov. Following the instructions provided on the 
website, the shareholder must enter pertinent information regarding the 
transfer request including, but not limited to, amount of shares to be 
transferred, which must be a minimum of 0.0001 percent; name of the 
eligible transferee; and the value of the transferred shares. An IFQ 
shareholder who is subject to a sanction under 15 CFR part 904 is 
prohibited from initiating a share transfer. An IFQ shareholder who is 
subject to a pending sanction under 15 CFR part 904 must disclose in 
writing to the prospective transferee the existence of any pending 
sanction at the time of the transfer. For the first 5 years this IFQ 
program is in effect, an eligible transferee is a person who has a 
valid commercial vessel permit for Gulf reef fish; is in compliance 
with all reporting requirements for the Gulf reef fish fishery and the 
red snapper IFQ program; is not subject to sanctions under 15 CFR part 
904; and who would not be in violation of the share cap as specified in 
paragraph (c)(6) of this section. Thereafter, share transferee 
eligibility will be extended to include U.S. citizens and permanent 
resident aliens who are otherwise in compliance with the provisions of 
this section. The online system will verify the transfer information 
entered. If the information is not accepted, the online system will 
send the shareholder an electronic message explaining the reason(s) why 
the transfer request can not be completed. If the information is 
accepted, the online system will send the transferee an electronic 
message of the pending transfer. The transferee must approve the share 
transfer by electronic signature. If the transferee approves the share 
transfer, the online system will send a transaction approval code to 
both the transferor and transferee confirming the transaction. All 
share transfers must be completed and the transaction approval code 
received prior to December 31 at 6 p.m. eastern time each year.
    (iii) Allocation transfers. An allocation transfer is valid only 
for the remainder of the fishing year in which it occurs; it does not 
carry over to the subsequent fishing year. Any allocation that is 
unused at the end of the fishing year is void. Allocation may be 
transferred to a vessel account from any IFQ account. Allocation held 
in a vessel account, however, may only be transferred back to the IFQ 
account through which the vessel account was established.
    (iv) Allocation transfer procedures. Allocation transfers must be 
accomplished online via the IFQ website. An IFQ account holder must 
initiate an allocation transfer by logging onto the IFQ website at 
ifq.sero.nmfs.noaa.gov, entering the required information, including 
but not limited to, name of an eligible transferee and amount of IFQ 
allocation to be transferred and price, and submitting the transfer 
electronically. An IFQ allocation holder who is subject to a sanction 
under 15 CFR part 904 is prohibited from initiating an allocation 
transfer. An IFQ allocation holder who is subject to a pending sanction 
under 15 CFR part 904 must disclose in writing to the prospective 
transferee the existence of any pending sanction at the time of the 
transfer. If the transfer is approved, the online system will provide a 
transaction approval code to the transferor and transferee confirming 
the transaction.
    (5) Restricted transactions during the 12-hour online maintenance 
window. All electronic IFQ transactions must be completed by December 
31 at 6 p.m. eastern time each year. Electronic IFQ functions will 
resume again on January 1 at 6 a.m. eastern time the following fishing 
year. The remaining 6 hours prior to the end of the fishing year, and 
the 6 hours at the beginning of the next fishing year, are necessary to 
provide NMFS time to reconcile IFQ accounts, adjust allocations for the 
upcoming year if the commercial quotas for Gulf red snapper have 
changed, and update shares and allocations for the upcoming fishing 
year. No electronic IFQ transactions will be available during these 12 
hours. An advance notice of landing may still be submitted during the 
12-hour maintenance window by calling IFQ Customer Service at 1-866-
425-7627.
    (6) IFQ share cap. No person, including a corporation or other 
entity, may individually or collectively hold IFQ shares in excess of 
6.0203 percent of the total shares. For the purposes of considering the 
share cap, a corporation's total IFQ share is determined by adding the 
applicable IFQ shares held by the corporation and any other IFQ shares 
held by a corporation(s) owned by the original corporation prorated 
based on the level of ownership. An individual's total IFQ share is 
determined by adding the applicable IFQ shares held by the individual 
and the applicable IFQ shares equivalent to the corporate share the 
individual holds in a corporation. Initially, a corporation must 
provide the RA the identity of the shareholders of the corporation and 
their percent of shares in the corporation, and provide updated 
information to the RA within 30 days of when changes occur. This 
information must also be provided to the RA any time a commercial 
vessel permit for Gulf reef fish is renewed or transferred.
    (7) Redistribution of shares resulting from permanent permit or 
endorsement revocation. If a shareholder's commercial vessel permit for 
Gulf reef fish has been permanently revoked under provisions of 15 CFR 
part 904, the RA will redistribute the IFQ shares held by that 
shareholder proportionately among remaining shareholders (subject to 
cap restrictions) based upon the amount of shares each held just prior 
to the redistribution. During December of each year, the RA will 
determine the amount of revoked shares, if any, to be redistributed, 
and the shares will be distributed at the beginning of the subsequent 
fishing year.
    (8) Annual recalculation and notification of IFQ shares and 
allocation. On or about January 1 each year, IFQ shareholders will be 
notified, via the IFQ website at ifq.sero.nmfs.noaa.gov, of their IFQ 
share and allocation for the upcoming fishing year. These updated share 
values will reflect the results of applicable share transfers and any 
redistribution of shares (subject to cap restrictions) resulting from 
permanent revocation of

[[Page 20149]]

applicable permits under 15 CFR part 904. Allocation is calculated by 
multiplying IFQ share times the annual red snapper commercial quota. 
Updated allocation values will reflect any change in IFQ share, any 
change in the annual commercial quota for Gulf red snapper, and any 
debits required as a result of prior fishing year overages as specified 
in paragraph (c)(1)(ii) of this section. IFQ participants can monitor 
the status of their shares and allocation throughout the year via the 
IFQ website.
    7. Section 622.20 is added to subpart B to read as follows:


Sec.  622.20  Individual fishing quota (IFQ) program for Gulf groupers 
and tilefishes.

    (a) General. This section establishes an IFQ program for the 
commercial components of the Gulf reef fish fishery for groupers 
(including DWG, red grouper, gag, and other SWG) and tilefishes 
(including goldface tilefish, blackline tilefish, anchor tilefish, 
blueline tilefish, and tilefish). For the purposes of this IFQ program, 
DWG includes yellowedge grouper, misty grouper, warsaw grouper, snowy 
grouper, and speckled hind, and scamp, but only as specified in 
paragraph (b)(2)(vi) of this section. For the purposes of this IFQ 
program, other SWG includes black grouper, scamp, yellowfin grouper, 
rock hind, red hind, and yellowmouth grouper, and warsaw grouper and 
speckled hind, but only as specified in paragraph (b)(2)(v) of this 
section. Under the IFQ program, the RA initially will assign eligible 
participants IFQ shares, in five share categories. These IFQ shares are 
equivalent to a percentage of the annual commercial quotas for DWG, red 
grouper, gag, and tilefishes, and the annual commercial catch allowance 
(meaning the SWG quota minus gag and red grouper) for other SWG 
species, based on their applicable historical landings. Shares 
determine the amount of IFQ allocation for Gulf groupers and 
tilefishes, in pounds gutted weight, a shareholder is initially 
authorized to possess, land, or sell in a given calendar year. Shares 
and annual IFQ allocation are transferable. See Sec.  622.4(a)(2)(ix) 
regarding a requirement for a vessel landing groupers or tilefishes 
subject to this IFQ program to have an IFQ vessel account for Gulf 
groupers and tilefishes. See Sec.  622.4(a)(4)(ii) regarding a 
requirement for a Gulf IFQ dealer endorsement. Details regarding 
eligibility, applicable landings history, account setup and transaction 
requirements, constraints on transferability, and other provisions of 
this IFQ system are provided in the following paragraphs of this 
section.
    (1) Scope. The provisions of this section apply to Gulf groupers 
and tilefishes in or from the Gulf EEZ and, for a person aboard a 
vessel with an IFQ vessel account for Gulf groupers and tilefishes as 
required by Sec.  622.4(a)(2)(ix) or for a person with a Gulf IFQ 
dealer endorsement as required by Sec.  622.4(a)(4)(ii), these 
provisions apply to Gulf groupers and tilefishes regardless of where 
harvested or possessed.
    (2) Duration. The IFQ program established by this section will 
remain in effect until it is modified or terminated; however, the 
program will be evaluated by the Gulf of Mexico Fishery Management 
Council every 5 years.
    (3) Electronic system requirements. (i) The administrative 
functions associated with this IFQ program, e.g., registration and 
account setup, landing transactions, and transfers, are designed to be 
accomplished online; therefore, a participant must have access to a 
computer and Internet access and must set up an appropriate IFQ online 
account to participate. The computer must have browser software 
installed, e.g. Internet Explorer, Netscape, Mozilla Firefox; as well 
as the software Adobe Flash Player version 9.0 or greater, which may be 
downloaded from the Internet for free. Assistance with online functions 
is available from IFQ Customer Service by calling 1-866-425-7627 Monday 
through Friday between 8 a.m. and 4:30 p.m. eastern time.
    (ii) The RA will mail initial shareholders and dealers with Gulf 
reef fish dealer permits information and instructions pertinent to 
setting up an IFQ online account. Other eligible persons who desire to 
become IFQ participants by purchasing IFQ shares or allocation or by 
obtaining a Gulf IFQ dealer endorsement must first contact IFQ Customer 
Service at 1-866-425-7627 to obtain information necessary to set up the 
required IFQ online account. Each IFQ participant must monitor his/her 
online account and all associated messages and comply with all IFQ 
online reporting requirements.
    (iii) During catastrophic conditions only, the IFQ program provides 
for use of paper-based components for basic required functions as a 
backup. The RA will determine when catastrophic conditions exist, the 
duration of the catastrophic conditions, and which participants or 
geographic areas are deemed affected by the catastrophic conditions. 
The RA will provide timely notice to affected participants via 
publication of notification in the Federal Register, NOAA weather 
radio, fishery bulletins, and other appropriate means and will 
authorize the affected participants' use of paper-based components for 
the duration of the catastrophic conditions. NMFS will provide each IFQ 
dealer the necessary paper forms, sequentially coded, and instructions 
for submission of the forms to the RA. The paper forms will also be 
available from the RA. The program functions available to participants 
or geographic areas deemed affected by catastrophic conditions will be 
limited under the paper-based system. There will be no mechanism for 
transfers of IFQ shares or allocation under the paper-based system in 
effect during catastrophic conditions. Assistance in complying with the 
requirements of the paper-based system will be available via IFQ 
Customer Service 1-866-425-7627 Monday through Friday between 8 a.m. 
and 4:30 p.m. eastern time.
    (b) Procedures for initial implementation--(1) Determination of 
eligibility for initial IFQ shares. To be eligible as an initial IFQ 
shareholder a person must posses a valid commercial Gulf reef fish 
permit as of October 1, 2009. NMFS' permit records are the sole basis 
for determining eligibility for the IFQ program for Gulf groupers and 
tilefishes based on permit history. No more than one initial 
eligibility will be granted based upon a given commercial vessel permit 
for Gulf reef fish.
    (2) Calculation of initial IFQ shares and allocation--(i) IFQ 
shares. The RA will calculate initial IFQ shares based on the highest 
average annual landings of Gulf groupers and tilefishes, in each of 
five share categories, associated with each shareholder's current 
commercial vessel permit for Gulf reef fish during the applicable 
landings history. The five share categories are gag, red grouper, DWG, 
other SWG, and tilefishes. The applicable landings history for reef 
fish permit holders with grouper or tilefish landings includes landings 
data from 1999 through 2004 with the allowance for dropping one year. 
All grouper and tilefish landings associated with a current reef fish 
permit for the applicable landings history, including those reported by 
a person(s) who held the license prior to the current license owner, 
will be attributed to the current license owner. Only legal landings 
reported in compliance with applicable state and Federal regulations 
will be accepted. For each share category, each shareholder's initial 
share is derived by dividing the shareholder's highest average annual 
landings during the applicable landings history by the sum of the 
highest average annual landings of all shareholders during the 
respective applicable landings histories. Initial shares distributed in 
the gag share

[[Page 20150]]

category and the other SWG share category will be based on landings 
that have been adjusted for gag and/or black grouper misidentification. 
Initial IFQ shares will not be issued in units less than the percentage 
equivalent to 1.0 lb (0.45 kg) of the grouper or tilefish species, in 
each share category, based on that share category's quota or catch 
allowance.
    (ii) Initial share set-aside to accommodate resolution of appeals. 
During the first year of implementation of this IFQ program only, for 
each share category, the RA will reserve a 3-percent IFQ share prior to 
the initial distribution of shares, to accommodate resolution of 
appeals, if necessary. Any portion of the 3-percent share set-aside for 
each share category remaining after the appeals process is completed 
will be distributed as soon as possible among initial shareholders in 
direct proportion to the percentage share each was initially allocated. 
If resolution of appeals requires more than a 3-percent share set-aside 
for a share category, the shares of all initial shareholders, for that 
share category, would be reduced accordingly in direct proportion to 
the percentage share each was initially allocated.
    (iii) IFQ allocation. IFQ allocation is the amount of Gulf groupers 
and tilefishes, in pounds gutted weight, an IFQ shareholder or 
allocation holder is authorized to possess, land, or sell during a 
given fishing year. IFQ allocation for the five respective share 
categories is derived at the beginning of each year by multiplying a 
shareholder's IFQ share times the annual commercial quota for gag, red 
grouper, DWG, and tilefishes; and times the annual commercial catch 
allowance for other SWG.
    (iv) Red grouper and gag multi-use allocation--(A) Red grouper 
multi-use allocation. At the beginning of each fishing year, 4 percent 
of each shareholder's initial red grouper allocation will be converted 
to red grouper multi-use allocation. Red grouper multi-use allocation 
may be used to possess, land, or sell either red grouper or gag under 
certain conditions. Red grouper multi-use allocation may be used to 
possess, land, or sell red grouper only after an IFQ account holder's 
(shareholder or allocation holder's) red grouper allocation has been 
landed and sold, or transferred; and to possess, land, or sell gag, 
only after both gag and gag multi-use allocation have been landed and 
sold, or transferred.
    (B) Gag multi-use allocation. At the beginning of each fishing 
year, 8 percent of each shareholder's initial gag allocation will be 
converted to gag multi-use allocation. Gag multi-use allocation may be 
used to possess, land, or sell either gag or red grouper under certain 
conditions. Gag multi-use allocation may be used to possess, land, or 
sell gag only after an IFQ account holder's gag allocation has been 
landed and sold, or transferred; and possess, land or sell red grouper, 
only after both red grouper and red grouper multi-use allocation have 
been landed and sold, or transferred. Multi-use allocation transfer 
procedures and restrictions are specified in paragraph (c)(4)(iv) of 
this section.
    (v) Warsaw grouper and speckled hind classification. Warsaw grouper 
and speckled hind are considered DWG species and under certain 
circumstances SWG species. For the purposes of the IFQ program for Gulf 
groupers and tilefishes, once all of an IFQ account holder's DWG 
allocation has been landed and sold, or transferred, or if an IFQ 
account holder has no DWG allocation, then other SWG allocation may be 
used to land and sell warsaw grouper and speckled hind.
    (vi) Scamp classification. Scamp is considered a SWG species and 
under certain circumstances a DWG. For the purposes of the IFQ program 
for Gulf groupers and tilefishes, once all of an IFQ account holder's 
other SWG allocation has been landed and sold, or transferred, or if an 
IFQ account holder has no SWG allocation, then DWG allocation may be 
used to land and sell scamp.
    (3) Shareholder notification regarding landings history, initial 
determination of IFQ shares and allocations, and IFQ account setup 
information. (i) On or about October 1, 2009, the RA will mail each 
Gulf reef fish commercial vessel permittee with grouper and tilefish 
landings history during the qualifying years, information pertinent to 
the IFQ program. This information will include--
    (A) Gulf grouper and tilefish landings associated with the Gulf 
reef fish commercial vessel permit during each year of the applicable 
landings history;
    (B) The highest average annual grouper and tilefish landings, in 
each of the five share categories, based on the permittee's best 5 out 
of 6 years of applicable landings history;
    (C) The permittee's initial IFQ share, in each of the five share 
categories, based on the highest average annual landings associated 
with the permittee's best 5 out of 6 years of applicable landings 
history;
    (D) The initial IFQ allocation, in each of the five share 
categories, as well as their total IFQ allocation;
    (E) Instructions for appeals;
    (F) General instructions regarding procedures related to the IFQ 
online system, including how to set up an online account; and
    (G) A user identification number; and a personal identification 
number (PIN) that will be provided in a subsequent letter.
    (ii) The RA will provide this information, via certified mail 
return receipt requested, to the permittee's address of record as 
listed in NMFS' permit files. A permittee who does not receive such 
notification from the RA, must contact the RA by November 1, 2009, to 
clarify eligibility status and landings and initial share information.
    (iii) The initial share information provided by the RA is based on 
the highest average annual landings during the best 5 out of 6 years 
associated with the permittee's applicable landings history for each 
share category; however, a permittee may select to exclude a different 
year of landings history than was chosen, consistent with the 
permittee's applicable landings history, for the calculation of the 
initial IFQ share. The permittee must submit that information to the RA 
postmarked no later than December 1, 2009. If alternative years, 
consistent with the applicable landings history, are selected, revised 
information regarding shares and allocations will be posted on the 
online IFQ accounts no later than January 1, 2010. A permittee who 
disagrees with the landings or eligibility information provided by the 
RA may appeal the RA's initial determinations.
    (4)  Procedure for appealing IFQ eligibility and/or landings 
information. The only items subject to appeal under this IFQ system are 
initial eligibility for IFQ shares based on ownership of a reef fish 
permit, the accuracy of the amount of landings, correct assignment of 
landings to the permittee, and correct assignment of gag versus black 
grouper landings. Appeals based on hardship factors will not be 
considered. Appeals must be submitted to the RA postmarked no later 
than April 1, 2010, and must contain documentation supporting the basis 
for the appeal. The RA will review all appeals, render final decisions 
on the appeals, and advise the appellant of the final decision.
    (i) Eligibility appeals. NMFS' records of reef fish permits are the 
sole basis for determining ownership of such permits. A person who 
believes he/she meets the permit eligibility criteria based on 
ownership of a vessel under a different name, as may have occurred when 
ownership has changed from individual to corporate or vice versa, must 
document his/her continuity of ownership.

[[Page 20151]]

    (ii) Landings appeals. Appeals regarding landings data for 1999 
through 2004 will be based on NMFS' logbook records. If NMFS' logbooks 
are not available, the RA may use state landings records or data that 
were submitted in compliance with applicable Federal and state 
regulations, on or before December 31, 2006.
    (5) Dealer notification and IFQ account setup information. On or 
about October 1, 2009, the RA will mail each dealer with a valid Gulf 
reef fish dealer permit information pertinent to the IFQ program. Any 
such dealer is eligible to receive a Gulf IFQ dealer endorsement, which 
can be downloaded from the IFQ website at ifq.sero.nmfs.noaa.gov once 
an IFQ account has been established. The information package will 
include general information about the IFQ program and instructions for 
accessing the IFQ website and establishing an IFQ dealer account.
    (c) IFQ operations and requirements--(1) IFQ Landing and 
transaction requirements. (i) Gulf groupers and tilefishes subject to 
this IFQ program can only be possessed or landed by a vessel with a IFQ 
vessel account for Gulf groupers and tilefishes. Such groupers and 
tilefishes can only be received by a dealer with a Gulf IFQ dealer 
endorsement. The vessel landing groupers or tilefishes must have 
sufficient IFQ allocation in the IFQ vessel account, at least equal to 
the pounds in gutted weight of grouper or tilefish species to be 
landed, from the time of advance notice of landing through landing, 
except as provided in paragraph (c)(1)(ii) of this section.
    (ii) A person on board a vessel with an IFQ vessel account landing 
the shareholder's only remaining allocation from among any of the 
grouper or tilefish share categories, can legally exceed, by up to 10 
percent, the shareholder's allocation remaining on that last fishing 
trip of the fishing year, i.e. a one-time per fishing year overage. Any 
such overage will be deducted from the shareholder's applicable 
allocation for the subsequent fishing year. From the time of the 
overage until January 1 of the subsequent fishing year, the IFQ 
shareholder must retain sufficient shares to account for the allocation 
that will be deducted the subsequent fishing year. Share transfers that 
would violate this requirement will be prohibited.
    (iii) The dealer is responsible for completing a landing 
transaction report for each landing and sale of Gulf groupers and 
tilefishes via the IFQ website at ifq.sero.nmfs.noaa.gov at the time of 
the transaction in accordance with reporting form and instructions 
provided on the website. This report includes, but is not limited to, 
date, time, and location of transaction; weight and actual ex-vessel 
value of groupers and tilefishes landed and sold; and information 
necessary to identify the fisherman, vessel, and dealer involved in the 
transaction. The fisherman must validate the dealer transaction report 
by entering the unique PIN number for the vessel account when the 
transaction report is submitted. After the dealer submits the report 
and the information has been verified by NMFS, the online system will 
send a transaction approval code to the dealer and the allocation 
holder.
    (iv) If there is a discrepancy regarding the landing transaction 
report after approval, the dealer or vessel account holder (or his or 
her authorized agent) may initiate a landing transaction correction 
form to correct the landing transaction. This form is available via the 
IFQ website at ifq.sero.nmfs.noaa.gov. Both parties must validate the 
landing correction form by entering their respective PIN numbers, i.e. 
vessel account PIN or dealer account PIN. The dealer must then print 
out the form, both parties must sign it, and the form must be mailed to 
NMFS. The form must be received by NMFS no later than 15 days after the 
date of the initial landing transaction.
    (2) IFQ cost recovery fees. As required by section 304(d)(2)(A)(i) 
of the Magnuson-Stevens Act, the RA will collect a fee to recover the 
actual costs directly related to the management and enforcement of the 
IFQ program for Gulf groupers and tilefishes. The fee cannot exceed 3 
percent of the ex-vessel value of Gulf groupers and tilefishes landed 
under the IFQ program. Such fees will be deposited in the Limited 
Access System Administration Fund (LASAF). Initially, the fee will be 3 
percent of the actual ex-vessel value of Gulf groupers and tilefishes 
landed under the IFQ program, as documented in each landings 
transaction report. The RA will review the cost recovery fee annually 
to determine if adjustment is warranted. Factors considered in the 
review include the catch subject to the IFQ cost recovery, projected 
ex-vessel value of the catch, costs directly related to the management 
and enforcement of the IFQ program, the projected IFQ balance in the 
LASAF, and expected non-payment of fee liabilities. If the RA 
determines that a fee adjustment is warranted, the RA will publish a 
notification of the fee adjustment in the Federal Register.
    (i) Payment responsibility. The IFQ account holder specified in the 
documented IFQ landing transaction report for Gulf groupers and 
tilefishes is responsible for payment of the applicable cost recovery 
fees.
    (ii) Collection and submission responsibility. A dealer who 
receives Gulf groupers or tilefishes subject to the IFQ program is 
responsible for collecting the applicable cost recovery fee for each 
IFQ landing from the IFQ account holder specified in the IFQ landing 
transaction report. Such dealer is responsible for submitting all 
applicable cost recovery fees to NMFS on a quarterly basis. The fees 
are due and must be submitted, using pay.gov via the IFQ system, at the 
end of each calendar-year quarter, but no later than 30 days after the 
end of each calendar-year quarter. Fees not received by the deadline 
are delinquent.
    (iii) Fee payment procedure. For each IFQ dealer, the IFQ system 
will post, in individual IFQ dealer accounts, an end-of-quarter 
statement of cost recovery fees that are due. The dealer is responsible 
for submitting the cost recovery fee payments using pay.gov via the IFQ 
system. Authorized payment methods are credit card, debit card, or 
automated clearing house (ACH). Payment by check will be authorized 
only if the RA has determined that the geographical area or an 
individual(s) is affected by catastrophic conditions.
    (iv) Fee reconciliation process--delinquent fees. The following 
procedures apply to an IFQ dealer whose cost recovery fees are 
delinquent.
    (A) On or about the 31st day after the end of each calendar-year 
quarter, the RA will send the dealer an electronic message via the IFQ 
website and official notice via mail indicating the applicable fees are 
delinquent, and the dealer's IFQ account has been suspended pending 
payment of the applicable fees.
    (B) On or about the 91st day after the end of each calendar-year 
quarter, the RA will refer any delinquent IFQ dealer cost recovery fees 
to the appropriate authorities for collection of payment.
    (3) Measures to enhance IFQ program enforceability--(i) Advance 
notice of landing. For the purpose of this paragraph, landing means to 
arrive at a dock, berth, beach, seawall, or ramp. The owner or operator 
of a vessel landing IFQ groupers or tilefishes is responsible for 
ensuring that NMFS is contacted at least 3 hours, but no more than 12 
hours, in advance of landing to report the time and location of 
landing, estimated grouper and tilefish landings in pounds gutted 
weight for each share category (gag, red grouper, DWG, other SWG, 
tilefishes), vessel identification number (Coast Guard registration 
number or state registration number), and the name and address of the 
IFQ

[[Page 20152]]

dealer where the groupers or tilefishes are to be received. The vessel 
landing groupers or tilefishes must have sufficient IFQ allocation in 
the IFQ vessel account, and in the appropriate share category or 
categories, at least equal to the pounds in gutted weight of all 
groupers and tilefishes on board (except for any overage up to the 10 
percent allowed on the last fishing trip) from the time of the advance 
notice of landing through landing. Authorized methods for contacting 
NMFS and submitting the report include calling NMFS at 1-866-425-7627, 
completing and submitting to NMFS the notification form provided 
through the VMS unit, or providing the required information to NMFS 
through the web-based form available on the IFQ website at 
ifq.sero.nmfs.noaa.gov. As new technology becomes available, NMFS will 
add other authorized methods for complying with the advance 
notification requirement, via appropriate rulemaking. Failure to comply 
with this advance notice of landing requirement is unlawful and will 
preclude authorization to complete the landing transaction report 
required in paragraph (c)(1)(iii) of this section and, thus, will 
preclude issuance of the required transaction approval code.
    (ii) Time restriction on offloading. IFQ groupers and tilefishes 
may be offloaded only between 6 a.m. and 6 p.m., local time.
    (iii) Restrictions on transfer of IFQ groupers and tilefishes. At-
sea or dockside transfer of IFQ groupers or tilefishes from one vessel 
to another vessel is prohibited.
    (iv) Requirement for transaction approval code. If IFQ groupers or 
tilefishes are offloaded to a vehicle for transportation to a dealer or 
are on a vessel that is trailered for transport to a dealer, on-site 
capability to accurately weigh the fish and to connect electronically 
to the online IFQ system to complete the transaction and obtain the 
transaction approval code is required. After a landing transaction has 
been completed, a transaction approval code verifying a legal 
transaction of the amount of IFQ groupers and tilefishes in possession 
and a copy of the dealer endorsement must accompany any IFQ groupers 
and tilefishes from the landing location through possession by a 
dealer. This requirement also applies to IFQ groupers and tilefishes 
possessed on a vessel that is trailered for transport to a dealer.
    (v) Approved landing locations. Landing locations must be approved 
by NMFS Office for Law Enforcement prior to landing or offloading at 
these sites. Proposed landing locations may be submitted online via the 
IFQ website at ifq.sero.nmfs.noaa.gov, or by calling IFQ Customer 
Service at 1-866-425-7627, at any time, however, new landing locations 
will be approved only at the end of each calendar-year quarter. To have 
your landing location approved by the end of the calendar-year quarter, 
it must be submitted at least 45 days before the end of the calendar-
year quarter. NMFS will evaluate the proposed sites based on, but not 
limited to, the following criteria:
    (A) Landing locations must be publicly accessible by land and 
water, and
    (B) They must have a street address. If there is no street address 
on record for a particular landing location, global positioning system 
(GPS) coordinates for an identifiable geographic location must be 
provided.
    (4) Transfer of IFQ shares and allocation. Until January 1, 2015, 
IFQ shares and allocations can be transferred only to a person who 
holds a valid commercial vessel permit for Gulf reef fish; thereafter, 
IFQ shares and allocations can be transferred to any U.S. citizen or 
permanent resident alien. However, a valid commercial permit for Gulf 
reef fish, an IFQ vessel account for Gulf groupers and tilefishes, and 
IFQ allocation for Gulf groupers or tilefishes are required to possess 
(at and after the time of the advance notice of landing), land or sell 
Gulf groupers or tilefishes subject to this IFQ program.
    (i) Share transfers. Share transfers are permanent, i.e., they 
remain in effect until subsequently transferred. Transfer of shares 
will result in the corresponding allocation being automatically 
transferred to the person receiving the transferred share beginning 
with the fishing year following the year the transfer occurred. 
However, within the fishing year the share transfer occurs, transfer of 
shares and associated allocation are independent--unless the associated 
allocation is transferred separately, it remains with the transferor 
for the duration of that fishing year. A share transfer transaction 
that remains in pending status, i.e., has not been completed and 
verified with a transaction approval code, after 30 days from the date 
the shareholder initiated the transfer will be cancelled, and the 
pending shares will be re-credited to the shareholder who initiated the 
transfer.
    (ii) Share transfer procedures. Share transfers must be 
accomplished online via the IFQ website. An IFQ shareholder must 
initiate a share transfer request by logging onto the IFQ website at 
ifq.sero.nmfs.noaa.gov. An IFQ shareholder who is subject to a sanction 
under 15 CFR part 904 is prohibited from initiating a share transfer. 
An IFQ shareholder who is subject to a pending sanction under 15 CFR 
part 904 must disclose in writing to the prospective transferee the 
existence of any pending sanction at the time of the transfer. 
Following the instructions provided on the website, the shareholder 
must enter pertinent information regarding the transfer request 
including, but not limited to: amount of shares to be transferred, 
which must be a minimum of 0.000001 percent; name of the eligible 
transferee; and the value of the transferred shares. For the first 5 
years this IFQ program is in effect, an eligible transferee is a person 
who has a valid commercial vessel permit for Gulf reef fish; is in 
compliance with all reporting requirements for the Gulf reef fish 
fishery and the IFQ program for Gulf groupers and tilefishes; is not 
subject to sanctions under 15 CFR part 904; and who would not be in 
violation of the share or allocation caps as specified in paragraph 
(c)(6) of this section. Thereafter, share transferee eligibility will 
be extended to include U.S. citizens and permanent resident aliens who 
are otherwise in compliance with the provisions of this section. The 
online system will verify the information entered. If the information 
is not accepted, the online system will send the shareholder an 
electronic message explaining the reason(s). If the information is 
accepted, the online system will send the transferee an electronic 
message of the pending transfer. The transferee must approve the share 
transfer by electronic signature. If the transferee approves the share 
transfer, the online system will send a transfer approval code to both 
the shareholder and transferee confirming the transaction. All share 
transfers must be completed and the transaction approval code received 
prior to December 31 at 6 p.m. eastern time each year.
    (iii) Allocation transfers. An allocation transfer is valid only 
for the remainder of the fishing year in which it occurs; it does not 
carry over to the subsequent fishing year. Any allocation that is 
unused at the end of the fishing year is void. Allocation may be 
transferred to a vessel account from any IFQ account. Allocation held 
in a vessel account, however, may only be transferred back to the IFQ 
account through which the vessel account was established.
    (iv) Allocation transfer procedures and restrictions--(A) 
Allocation transfer procedures. Allocation transfers must be 
accomplished online via the IFQ website. An IFQ account holder must

[[Page 20153]]

initiate an allocation transfer by logging onto the IFQ website at 
ifq.sero.nmfs.noaa.gov, entering the required information, including 
but not limited to, name of an eligible transferee and amount of IFQ 
allocation to be transferred and price, and submitting the transfer 
electronically. An IFQ allocation holder who is subject to a sanction 
under 15 CFR part 904 is prohibited from initiating an allocation 
transfer. An IFQ allocation holder who is subject to a pending sanction 
under 15 CFR part 904 must disclose in writing to the prospective 
transferee the existence of any pending sanction at the time of the 
transfer. If the transfer is approved, the website will provide a 
transfer approval code to the transferor and transferee confirming the 
transaction.
    (B) Multi-use allocation transfer restrictions--(1) Red grouper 
multi-use allocation. Red grouper multi-use allocation may only be 
transferred after all an IFQ account holder's red grouper allocation 
has been landed and sold, or transferred.
    (2) Gag multi-use allocation. Gag multi-use allocation may only be 
transferred after all an IFQ account holder's gag allocation has been 
landed and sold, or transferred.
    (5) Restricted transactions during the 12-hour online maintenance 
window. All electronic IFQ transactions must be completed by December 
31 at 6 p.m. eastern time each year. Electronic IFQ functions will 
resume again on January 1 at 6 a.m. eastern time the following fishing 
year. The remaining 6 hours prior to the end of the fishing year, and 
the 6 hours at the beginning of the next fishing year, are necessary to 
provide NMFS time to reconcile IFQ accounts, adjust allocations for the 
upcoming year if the commercial quotas or catch allowances for Gulf 
groupers or tilefishes have changed, and update shares and allocations 
for the upcoming fishing year. No electronic IFQ transactions will be 
available during these 12 hours. An advance notice of landing may still 
be submitted by calling IFQ Customer Service at 1-866-425-7627.
    (6) IFQ share and allocation caps. A corporation's total IFQ share 
(or allocation) is determined by adding the applicable IFQ shares (or 
allocation) held by the corporation and any other IFQ shares (or 
allocation) held by a corporation(s) owned by the original corporation 
prorated based on the level of ownership. An individual's total IFQ 
share is determined by adding the applicable IFQ shares held by the 
individual and the applicable IFQ shares equivalent to the corporate 
share the individual holds in a corporation. An individual's total IFQ 
allocation is determined by adding the individual's total allocation to 
the allocation derived from the IFQ shares equivalent to the corporate 
share the individual holds in a corporation.
    (i) IFQ share cap for each share category. No person, including a 
corporation or other entity, may individually or collectively hold IFQ 
shares in any share category (gag, red grouper, DWG, other SWG, or 
tilefishes) in excess of the maximum share initially issued for the 
applicable share category to any person at the beginning of the IFQ 
program, as of the date appeals are resolved and shares are adjusted 
accordingly. A corporation must provide to the RA the identity of the 
shareholders of the corporation and their percent of shares in the 
corporation, by December 1, 2009, for initial issuance of IFQ shares 
and allocation, and provide updated information to the RA within 30 
days of when changes occur. This information must also be provided to 
the RA any time a commercial vessel permit for Gulf reef fish is 
renewed or transferred.
    (ii) Total allocation cap. No person, including a corporation or 
other entity, may individually or collectively hold, cumulatively 
during any fishing year, IFQ allocation in excess of the total 
allocation cap. The total allocation cap is the sum of the maximum 
allocations associated with the share caps for each individual share 
category and is calculated annually based on the applicable quotas or 
catch allowance associated with each share category.
    (7) Redistribution of shares resulting from permanent permit 
revocation. If a shareholder's commercial vessel permit for Gulf reef 
fish has been permanently revoked under provisions of 15 CFR part 904, 
the RA will redistribute the IFQ shares associated with the revoked 
permit proportionately among remaining shareholders (subject to cap 
restrictions) based upon the amount of shares each held just prior to 
the redistribution. During December of each year, the RA will determine 
the amount of revoked shares, if any, to be redistributed, and the 
shares will be distributed at the beginning of the subsequent fishing 
year.
    (8) Annual recalculation and notification of IFQ shares and 
allocation. On or about January 1 each year, IFQ shareholders will be 
notified, via the IFQ website at ifq.sero.nmfs.noaa.gov, of their IFQ 
shares and allocations, for each of the five share categories, for the 
upcoming fishing year. These updated share values will reflect the 
results of applicable share transfers and any redistribution of shares 
(subject to cap restrictions) resulting from permanent revocation of 
applicable permits under 15 CFR part 904. Allocation, for each share 
category, is calculated by multiplying IFQ share for that category 
times the annual commercial quota or commercial catch allowance for 
that share category. Updated allocation values will reflect any change 
in IFQ share for each share category, any change in the annual 
commercial quota or commercial catch allowance for the applicable 
categories; and any debits required as a result of prior fishing year 
overages as specified in paragraph (c)(1)(ii) of this section. IFQ 
participants can monitor the status of their shares and allocation 
throughout the year via the IFQ website.
    7. In Sec.  622.42, paragraph (a)(1)(ii) and the first sentence of 
paragraph (a)(1)(iii) are revised to read as follows:


Sec.  622.42  Quotas.

* * * * *
    (a) * * *
    (1) * * *
    (ii) Deep-water groupers (DWG) combined -1.02 million lb (0.46 
million kg), gutted weight, that is, eviscerated but otherwise whole.
    (iii) Shallow-water groupers (SWG) have a combined quota as 
specified in paragraph (a)(1)(iii)(A) of this section. * * *
* * * * *


Sec.  622.44  [Amended]

    7. In Sec.  622.44, paragraph (g) is removed and reserved.
[FR Doc. E9-9546 Filed 4-29-09; 8:45 am]
BILLING CODE 3510-22-S