[Federal Register Volume 75, Number 141 (Friday, July 23, 2010)]
[Proposed Rules]
[Pages 43118-43136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18143]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 0912021424-0287-02]
RIN 0648-AY42


Fisheries of the Exclusive Economic Zone Off Alaska; Gulf of 
Alaska License Limitation Program

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

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS proposes regulations to implement Amendment 86 to the 
Fishery Management Plan for Groundfish of the Gulf of Alaska. This 
proposed action would add a Pacific cod endorsement on licenses issued 
under the License Limitation Program (LLP) in specific management areas 
if those licenses have been used on vessels that met minimum recent 
landing requirements using non-trawl gear, commonly known as fixed 
gear. This proposed action would exempt vessels that use jig gear from 
the requirement to hold an LLP license, modify the maximum length 
designation on a specific set of fixed gear licenses, and allow 
entities representing specific communities to receive a limited number 
of fixed-gear licenses with Pacific cod endorsements. This proposed 
action is intended to promote the goals and objectives of the Magnuson-
Stevens Fishery Conservation and Management Act, the Fishery Management 
Plan, and other applicable law.

DATES: Comments must be received no later than September 7, 2010.

ADDRESSES: Send comments to Sue Salveson, Assistant Regional 
Administrator, Sustainable Fisheries Division, Alaska Region, NMFS, 
Attn: Ellen Sebastian. You may submit comments, identified by ``0648-
AY42'', by any one of the following methods:
     Electronic Submissions: Submit all electronic public 
comments via the Federal eRulemaking Portal Web site at http://www.regulations.gov.
     Mail: P.O. Box 21668, Juneau, AK 99802.
     Fax: 907-586-7557.
     Hand delivery to the Federal Building: 709 West 9th 
Street, Room 420A, Juneau, AK.
    All comments received are a part of the public record and will 
generally be posted to http://www.regulations.gov without change. All 
Personal Identifying Information (e.g., name, address) voluntarily 
submitted by the commenter may be publicly accessible. Do not submit 
Confidential Business Information or otherwise sensitive or protected 
information.
    NMFS will accept anonymous comments (enter N/A in required fields 
if you wish to remain anonymous). Attachments to electronic comments 
will be accepted in Microsoft Word, Excel, WordPerfect, or Adobe 
portable document file (pdf) formats only.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
rule may be submitted to NMFS at the above address, e-mailed to [email protected], or faxed to 202-395-7285.
    Copies of Amendment 86, the Environmental Assessment (EA), 
Regulatory Impact Review (RIR), and the Initial Regulatory Flexibility 
Analysis (IRFA) for this action are available from the Alaska Region 
Web site at http://www.alaskafisheries.noaa.gov.

FOR FURTHER INFORMATION CONTACT: Glenn Merrill, 907-586-7228.

SUPPLEMENTARY INFORMATION: 

Background on the License Limitation Program

    National Marine Fisheries Service (NMFS) manages the groundfish 
fisheries in the exclusive economic zone (EEZ) of the Bering Sea and 
Aleutian Islands Management Area (BSAI) and the Gulf of Alaska (GOA) 
under the

[[Page 43119]]

Fishery Management Plans (FMPs) for groundfish in the respective areas. 
The North Pacific Fishery Management Council (Council) recommended, and 
NMFS approved, the FMPs under the authority of the Magnuson-Stevens 
Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.). 
Regulations implementing the FMPs appear at 50 CFR part 679. General 
regulations governing U.S. fisheries also appear at 50 CFR part 600.
    The Council and NMFS have long sought to control the amount of 
fishing in the North Pacific Ocean to ensure that fisheries are 
conservatively managed and do not exceed established biological 
thresholds. One of the measures used by the Council and NMFS is the 
license limitation program (LLP), which limits access to the 
groundfish, crab, and scallop fisheries in the BSAI and GOA. The LLP is 
intended to limit entry into Federally managed fisheries. For 
groundfish, the LLP requires that persons hold and assign a license for 
each vessel that is used to fish in Federally managed fisheries, with 
some limited exemptions. The Council initially envisioned the LLP as an 
early step in a long-term plan to establish a comprehensive 
rationalization program for groundfish in the North Pacific. 
Rationalization programs assign tradable quotas to fishery participants 
that would provide them an exclusive access privilege to groundfish 
resources. These exclusive access programs are more commonly known as 
limited access privilege programs (LAPPs).
    The LLP for groundfish fisheries was recommended by the Council as 
Amendments 39 and 41 to the BSAI and GOA groundfish FMPs, respectively. 
The Council adopted the LLP for groundfish in June 1995, and NMFS 
approved Amendments 39 and 41 on September 12, 1997. NMFS published a 
final rule to implement the LLP on October 1, 1998 (63 FR 52642), and 
LLP licenses were required for Federal groundfish fisheries beginning 
on January 1, 2000. The preamble to the final rule implementing the 
groundfish LLP and the EA/RIR/IRFA prepared for this proposed action 
describe the rationale and specific provisions of the LLP in greater 
detail (see ADDRESSES) and are not repeated here. The key components of 
the LLP are briefly summarized below.
    The LLP for groundfish establishes specific criteria that must be 
met to allow a person to deploy a vessel to directed fish in most 
federally managed groundfish fisheries. An LLP license must be assigned 
to each vessel that is used to participate in directed fishing for most 
groundfish species. The term directed fishing and the specific 
groundfish species for which an LLP license is required are defined in 
regulations at Sec.  679.2. Exceptions to the LLP license requirement 
apply if the vessel is less than 26 feet in length overall (LOA) and 
fishing in the GOA; less than 32 feet LOA and fishing in the BSAI; or 
less than 60 feet LOA, using jig gear in the BSAI, and deploying no 
more than five jigging machines (See Sec.  679.4(k)(2)).
    Under the LLP, NMFS issues licenses that: (1) Endorse fishing 
activities in specific regulatory areas in the BSAI and GOA; (2) 
restrict the length of the vessel on which the LLP license may be used, 
known as the maximum length overall (MLOA); (3) designate the fishing 
gear that may be used on the vessel (i.e., trawl or non-trawl gear 
designations); and (4) designate the type of vessel operation permitted 
(i.e., LLP licenses designate whether the vessel to which the LLP is 
assigned may operate as a catcher vessel or as a catcher/processor). 
The endorsements for specific regulatory areas, gear designations, or 
vessel operational types are non-severable from the LLP license (i.e., 
once an LLP license is issued, the components of the LLP license cannot 
be transferred independently). By creating LLP licenses with these 
characteristics, the Council and NMFS limited the ability of a person 
to assign an LLP license that was derived from the historic landing 
activity of a vessel in one area using a specific fishing gear, or 
operational type, to be used in other areas, with other gears, or with 
other operational types in a manner that could expand fishing capacity. 
The preamble to the final rule implementing the groundfish LLP provides 
a more detailed explanation of the rationale for specific provisions in 
the LLP (October 1, 1998, 63 FR 52642).
    When the Council initially recommended the LLP, the Council 
intended that NMFS determine whether a vessel met a minimum number of 
landings to qualify the owner of that vessel to receive an LLP license 
with a specific gear, area, and operational type endorsement. However, 
the regulations that implemented the LLP used the phrase ``documented 
harvest'' instead of ``landing.'' NMFS asserted that the phrase 
documented harvest was synonymous with the phrase landing, and that the 
phrase documented harvest provided additional clarity to the public 
that the phrase landing did not. NMFS' assertion that these two phrases 
were synonymous was subsequently challenged in court (Trojan 
Partnership v. Gutierrez, 425 F. 3d 620 (9th Cir. 2005)). The Court 
held that these phrases were not synonymous. In order to be consistent 
with Council intent when originally implementing the LLP, as well as 
the specific criteria recommended by the Council for this proposed 
action, this action proposes to use landings, and not documented 
harvests, as the basis for determining whether an LLP license holder 
will meet the proposed regulatory requirements for Amendment 86.
    The regulatory areas for which LLP licenses were issued include: 
The Bering Sea (BS), Aleutian Islands (AI); Southeast Outside District 
(SEO); Central Gulf of Alaska (CG), which includes the West Yakutat 
District adjacent to the SEO; and Western Gulf of Alaska (WG). The 
documented harvest requirements necessary to receive an LLP license 
endorsed for a specific area differed depending on the size of the 
vessel and the operational type of the vessel. For example, for a 
vessel owner to receive an endorsement for non-trawl gear in the CG 
with a catcher/processor designation, a vessel must have met the 
minimum documented harvest requirements in the CG using non-trawl gear 
and the documented harvests must have been caught and processed onboard 
the vessel.
    In 2000, NMFS issued groundfish LLP licenses with the appropriate 
regulatory area endorsements, gear, vessel length, and vessel 
operational type designations based on the documented harvests of 
vessels. NMFS issued more than 300 LLP licenses endorsed for trawl 
gear, and more than 1,000 licenses for non-trawl gear for use in the 
BSAI and GOA. Non-trawl gear is commonly known as fixed gear and 
includes hook-and-line, pot, and jig gear. In many cases trawl and 
fixed gear LLP licenses were endorsed for multiple regulatory areas 
(e.g., WG, CG, and BS) if a vessel met the minimum number of documented 
harvests in more than one area. Additionally, a number of LLP licenses 
were also designated for both trawl and fixed gear in cases where the 
vessel met the documented harvests requirements using both trawl and 
fixed gear.
    After LLP licenses were initially issued in 2000, NMFS became 
aware, through public testimony from fishing industry representatives 
and an independent review of landings data, that a substantial number 
of trawl and/or fixed gear endorsed LLP licenses were not being used 
for fishing in some, or all, of the regulatory areas for which they 
were endorsed. A variety of factors may result in the lack of use of an 
LLP license, including poor economic conditions in groundfish 
fisheries,

[[Page 43120]]

choices by LLP license holders to focus on fisheries such as salmon or 
halibut that do not require the use of an LLP license, or other reasons 
specific to a license holder. LLP licenses that are valid but are not 
currently being used on a vessel are commonly known as ``latent'' LLP 
licenses.
    In early 2007, the Council began reviewing the use of trawl-
endorsed LLP licenses in the GOA and BSAI. In April 2008, after more 
than a year of review, development of an analysis, and extensive public 
comment, the Council adopted Amendment 92 to the BSAI FMP and Amendment 
82 to the GOA FMP, both of which modified the LLP regarding eligibility 
criteria for trawl endorsements on LLP licenses. Amendments 92 and 82 
removed trawl endorsements from LLP licenses that did not meet specific 
landing requirements during 2000 through 2006. NMFS published a notice 
of availability for Amendments 92 and 82 on December 12, 2008 (73 FR 
75659). A proposed rule was published on December 30, 2008 (73 FR 
79773). NMFS approved Amendments 92 and 82 on March 16, 2009, and 
published a final rule implementing them on August 14, 2009 (74 FR 
41080).
    In late 2007, the Council began a similar process of reviewing the 
use of LLP licenses endorsed for fixed gear in the GOA. This review was 
initiated primarily at the request of active GOA fixed gear fishery 
participants who were concerned that holders of latent fixed-gear 
endorsed LLP licenses could resume fishing under the licenses in the 
future and thereby adversely affect active GOA fixed gear LLP licenses 
holders' fishing operations as well as the biological health of the 
fishery. Specifically, fixed-gear participants were concerned about the 
potential effects of additional effort in the GOA Pacific cod fishery 
that could increase competition and overcapacity in the fishery. 
Pacific cod is the primary fishery targeted by vessels using fixed gear 
in the GOA. In both the CG and WG regulatory areas, approximately one-
fourth of the eligible LLP licenses were actively being used. The 
potential overcapacity from the remaining latent LLP licenses could 
have adverse effects on management of the fisheries. Increased fishery 
effort could make it more difficult for NMFS to close fisheries in a 
timely manner, thereby exceeding the total allowable catch (TAC) for a 
fishery.
    During the development of this proposed action, the Council also 
received input from the public requesting modification to the LLP to 
establish minimum landing requirements that must be met to allow a 
vessel to continue to participate in the Pacific cod fixed-gear 
fisheries in the GOA consistent with the approach adopted by the 
Council in 2002, under Amendment 67 to the FMP for groundfish of the 
BSAI (April 15, 2002, 67 FR 18129). Amendment 67 established a Pacific 
cod endorsement on LLP licenses that is required for vessels using 
hook-and-line and pot gear to participate in the directed fishery for 
Pacific cod in the BSAI. The term ``directed fishing'' is defined in 
regulation at Sec.  679.2 and includes retained catch of Pacific cod 
that exceeds a minimum proportion of the total retained catch onboard a 
vessel. In April 2009, after more than a year of review and extensive 
public comment, the Council recommended modifications to the LLP to 
revise eligibility criteria for fixed gear endorsements on LLP 
licenses. The Council amended its final action in December 2009 to 
incorporate a change in the specific method used to allocate Pacific 
cod endorsed LLP licenses for specific persons (see the description 
under Action 4 of this preamble for additional detail).

Proposed Action

    This proposed rule would implement four different actions, all of 
which were components of the Council's final action.
     Action 1: Establish a GOA Pacific cod endorsement for 
fixed gear LLP licenses.
     Action 2: Exempt certain vessels using jig gear in the GOA 
from the requirement to carry an LLP license.
     Action 3: Modify the MLOA of certain LLP licenses.
     Action 4: Allow specific GOA community entities to request 
and receive LLP licenses with a Pacific cod endorsement.
    The rationale and effects of these four proposed actions are 
described in detail in the following sections.

Action 1: Establish a Pacific Cod Endorsement for Fixed Gear LLP 
Licenses

Background

    Since the issuance of LLP licenses in 2000, substantially fewer LLP 
licenses endorsed for fixed-gear fisheries have been used onboard 
vessels than were originally issued. Approximately one-fourth of the 
eligible fixed gear LLP licenses have been actively used in recent 
years. The EA/RIR/IRFA prepared for this proposed action (see 
ADDRESSES) describes in detail the number of latent LLP licenses and 
potential reasons that a substantial proportion of fixed gear endorsed 
LLP licenses have been latent in the Pacific cod fishery (e.g., vessels 
to which the LLP licenses have been assigned have not made any landings 
of Pacific cod) since their issuance. Factors leading to reduced 
participation in the fixed-gear Pacific cod fishery in the GOA since 
2000 include lower TAC and regulations implemented to protect Steller 
sea lions (Eumetopias jubatus) that establish area and seasonal 
restrictions on the directed fishery for Pacific cod.
    However, diminished opportunities in other fisheries could provide 
an incentive for latent LLP license holders to re-enter the Pacific cod 
fisheries. For example, reduced fishing opportunities in pollock or 
other groundfish fisheries could encourage vessel owners to shift 
effort to the Pacific cod fishery. The Council was concerned that as 
management measures are implemented for other fisheries that limit 
access to those fisheries, such as limited access privilege programs 
that allocate specific exclusive harvest privileges, latent LLP holders 
could enter fisheries such as the GOA Pacific cod fixed gear fishery. 
The Council sought to ensure the continued participation of active 
participants in the fishery and reduce potential adverse effects on 
fishery stocks that may occur if catch limits are exceeded. 
Potentially, an increase in effort in fully utilized fisheries, such as 
Pacific cod, could increase the risk of harvesters exceeding TAC before 
NMFS could close the fisheries. Additionally, it is possible that 
harvesters reentering the fixed-gear Pacific cod fishery may not have 
as much familiarity with specific fishery techniques or areas as 
current participants. These newer participants could fish in ways that 
would increase overall bycatch of non-Pacific cod species (e.g., 
halibut) relative to the current and more experienced fixed-gear vessel 
operators. As noted in Section 2.2.3 of the EA/RIR/IRFA, Pacific cod 
fishery seasons have shortened over the last several years. Shorter 
season lengths restrict fishing opportunities for those permit holders 
who depend on the fishery. The EA/RIR/IRFA notes that it is difficult 
to predict how fishery effort may shift in the future, but a large 
number of latent LLP licenses do exist, and their entry in the Pacific 
cod fishery would destabilize current fishery participants.
    Therefore, NMFS proposes this rule to assign Pacific cod 
endorsements to LLP licenses that have met minimum landing requirements 
during 2002 through December 8, 2008, or that meet a specific exemption 
described below. This action would preemptively reduce

[[Page 43121]]

the potential adverse affects of overharvesting the GOA Pacific cod 
resource if latent LLP license holders became active in the fishery.

Criteria for Assigning a Pacific Cod Endorsement

    The primary action of this proposed rule would be to assign a 
Pacific cod fishery endorsement to a LLP license based on landings in 
the directed Pacific cod fishery in the GOA from 2002 through December 
8, 2008 made by vessels operating under the authority of that LLP 
license. NMFS would assign Pacific cod endorsements that are designated 
for (1) hook-and-line, pot, or jig gear; (2) specific GOA regulatory 
areas (i.e., CG and WG); and (3) specific operational types (i.e., 
catcher vessels or catcher/processors). LLP licenses with an MLOA less 
than 60 feet would have different landing requirements compared to LLP 
licenses with an MLOA equal to or greater than 60 feet. Table 1 
summarizes the landing requirement criteria that would need to be met 
for each gear type, regulatory area, operational type, and MLOA of the 
LLP license.

                Table 1--Summary of Landing Requirements for a Fixed Gear Pacific Cod Endorsement
----------------------------------------------------------------------------------------------------------------
                                                                                            Landing requirement
                                                                                             in the Pacific cod
        Regulatory area             Gear type        Operational type       MLOA of LLP    directed fishery from
                                                                              license      2002 through December
                                                                                                  8, 2008
----------------------------------------------------------------------------------------------------------------
CG............................  Hook-and-line...  Catcher vessel.......  < 60 feet.......  10 metric tons (mt).
                                                                         >= 60 feet......  50 mt.
                                                  Catcher/Processor....  All.............  50 mt.
                                Jig*............  Catcher vessel.......  All.............  1 landing.
                                                  Catcher/Processor....  All.............
                                Pot.............  Catcher vessel.......  < 60 feet.......  10 mt.
                                                                         >= 60 feet......  50 mt.
                                                  Catcher/Processor....  All.............  50 mt.
WG............................  Hook-and-line...  Catcher vessel.......  < 60 feet.......  10 mt.
                                                                         >= 60 feet......  50 mt.
                                                  Catcher/Processor....  All.............  50 mt.
                                Jig*............  Catcher vessel.......  All.............  1 landing.
                                                  Catcher/Processor....  All.............
                                Pot.............  Catcher vessel.......  < 60 feet.......  10 mt.
                                                                         >= 60 feet......  50 mt.
                                                  Catcher/Processor....  All.............  50 mt.
----------------------------------------------------------------------------------------------------------------
* LLP licenses and Pacific cod endorsements would be required only if a vessel uses more than five jigging
  machines, five lines, and more than 30 hooks per line.

    The Council recommended establishing a fixed gear LLP endorsement 
for Pacific cod to reduce the risk that vessel operators could assign 
latent LLP licenses to other vessels, effectively reactivating those 
licenses and thereby increasing the amount of fixed gear effort in the 
Pacific cod fisheries. This additional effort could increase the 
harvest rate in the fixed-gear Pacific cod fishery as well as adversely 
affect currently active participants by increasing competition, 
diluting their potential gross revenues, and creating incentives for 
harvesters to race for fish in a potentially wasteful manner. This 
proposed action would effectively remove the potential for new effort 
in the fishery beyond currently active participants, as defined by this 
proposed action. This proposed action would provide additional control 
on fishing effort in the GOA Pacific cod fishery that is not provided 
under the current structure of the LLP.
    This proposed action does not include modifications to SEO-endorsed 
licenses because fishing effort in this regulatory area is currently 
low. The risk of additional effort in the fishery from latent fixed 
gear LLP license holders was deemed to be unlikely by the Council given 
the relatively small number of eligible LLP licenses and the TAC for 
Pacific cod in the SEO. This action does not include the BS or AI 
regulatory areas. A Pacific cod endorsement requirement has already 
been established for LLP licenses using fixed gear in these areas under 
Amendment 67 to the BSAI FMP (April 15, 2002, 67 FR 18129).

Rationale for Landing Requirements

    The Council considered a range of options and alternatives to 
determine the minimum number of landings required to receive a Pacific 
cod endorsement. The Council considered alternatives that would have 
required a minimum number of landings or minimum amounts of landings 
during 2000, the first year that LLP licenses were issued, through 
December 8, 2008. The Council also considered applying the minimum 
landing requirement to specific regulatory areas, or the landing 
requirements to the GOA more generally. The range of years was selected 
by the Council based on the first year that NMFS could definitively 
assign landings data to a specific LLP license (2002), and a period 
year that represented the last year for which NMFS had data available 
on recent participation in the Pacific cod fisheries (December 8, 
2008). The specific date of December 8, 2008, corresponds to the date 
that the Council selected as a control date after which landings would 
not be considered for purposes of qualifying for a Pacific cod 
endorsement. The Council recommended a control date to ensure that 
fishery participants did not engage in fishing practices for the sole 
purpose of qualifying for a Pacific cod endorsement, and to ensure that 
fishery landings represent sustained participation in the directed 
Pacific cod fishery. The Council balanced more recent participation 
against considerations of economic dependence and historical fishing 
practices when selecting the nearly seven-year time frame from 2002 
through December 8, 2008. Groundfish harvested incidentally by vessels 
participating in the halibut and sablefish individual fishing quota 
fisheries is excluded for the purpose of determining recent 
participation for this action because it is not considered directed 
fishing for Pacific cod.
    The Council recommended that only catch from vessels fishing under 
the Federal TAC in either the Federal or parallel fishery would be 
included. The Federal TAC may be harvested in Federal waters, or in 
State of Alaska waters under a ``parallel fishery.'' A parallel fishery 
occurs when the State opens State waters concurrent with the

[[Page 43122]]

Federal fishing season to allow vessels to access the Federal TAC in 
both State and Federal waters. The Council recommended including this 
catch because both of these fisheries have participants that are 
subject to Federal regulation, and vessels transit between State and 
Federal waters when harvesting Pacific cod assigned to the TAC. Catch 
from vessels fishing in the State of Alaska's GHL Pacific cod fishery 
would not be included as qualifying catch to meet the requirements for 
a Pacific cod endorsement because this catch is not Federally managed, 
is not subject to the TAC, and is managed exclusively by the State of 
Alaska.
    After a review of groundfish catch history, the Council determined 
that different landing criteria should apply to different gear types, 
vessel operation types, and LLP MLOAs during the seven-year period from 
2002 through December 8, 2008. The landing criteria recommended by the 
Council represent a minimal, but sufficient, amount of participation in 
the Pacific cod fishery to indicate some level of dependence on the 
fishery. The Council recommended that landing requirements apply to 
each regulatory area so that endorsements could be removed only for 
those regulatory areas where minimum landing requirements were not met. 
Therefore, LLP licenses that were active in more than one regulatory 
area might meet the minimum landing requirements in one area but not 
another. The Council recommended this action to accomplish the goals of 
reducing the effects of potentially hundreds of new entrants into the 
Pacific cod fishery.
    For pot and hook-and-line catcher vessel endorsed LLP licenses with 
an MLOA of less than 60 feet, at least 10 metric tons (mt) of landings 
in the directed Pacific cod fishery in total between the fishing years 
2002 through December 8, 2008 must have been made under the authority 
of that LLP license in a regulatory area to allow that LLP license to 
qualify for a Pacific cod endorsement. The Council considered 
alternatives that would have required a minimum of one landing and a 
maximum of 100 mt. The choice of 10 mt was based on extensive public 
testimony indicating that less restrictive criteria (e.g., one landing, 
three landings, five landings, or five mt) would provide endorsements 
to LLP licenses that had only sporadic and limited participation in the 
Pacific cod fishery between 2002 and December 8, 2008. A review of 
participation patterns in the fishery (see Section 3.2.2 of the EA/RIR/
IRFA) indicated that at higher catch thresholds (i.e., 25 mt and 100 
mt), substantially fewer LLP licenses with a less than 60-foot MLOA 
would receive a Pacific cod endorsement (see Section 3.3.2 of the EA/
RIR/IRFA). The Council sought to balance the goal of recognizing past 
participation and some degree of dependence on the Pacific cod fishery 
with the goal of not excluding LLP licenses used on relatively smaller 
vessels that were active in the fishery but that may not have had 
extensive catch due to the loss of the vessel, changes in fishery 
conditions, or other factors.
    For hook-and-line and pot catcher vessel-endorsed LLP licenses with 
an MLOA equal to or greater than 60 feet, and for all catcher/
processor-endorsed LLP licenses regardless of the MLOA on the license, 
the Council selected a threshold of 50-mt total landings over the 
applicable period to qualify for the endorsement. The Council selected 
this higher landing threshold because vessels using LLP licenses with a 
catcher/processor endorsement or an MLOA equal to or greater than 60 
feet typically have larger harvests than vessels less than 60 feet LOA. 
The Council sought to balance the goals of recognizing current 
participants in the Pacific cod fishery and granting Pacific cod 
endorsements only to participants who were consistently active in the 
fishery. The Council relied upon public testimony and a review of NMFS 
data showing participation patterns in the fishery (see Section 2.5 of 
the EA/RIR/IRFA) indicating that lower landing criteria (e.g., one, 
three, or five landings and 5, 10 and 25 mt) could qualify a number of 
LLP licenses that had been used less consistently in the fishery 
compared to a fewer number of LLP licenses at higher catch thresholds. 
The Council, however, did not select the most restrictive landing 
threshold reviewed (i.e., 100 mt) because substantially fewer LLP 
licenses for hook-and line and pot catcher vessels would receive a 
Pacific cod endorsement than under less restrictive criteria (see 
Section 2.5 of the EA/RIR/IRFA). The Council's recommendations balanced 
the goals of reducing latent capacity in the Pacific cod fishery while 
providing continuing opportunities for participants with a history of 
participation in the fishery.
    For vessels using jig gear, regardless of size, the Council 
selected the least restrictive landing threshold analyzed (one landing) 
as a basis for assigning a jig Pacific cod endorsement. The one landing 
threshold was chosen based on a review of landings data that indicated 
that very few LLP licenses would receive Pacific cod endorsements under 
more restrictive landings criteria (see Section 3.3.2 of the EA/RIR/
IRFA). Overall, the analysis prepared for this action estimates that 
very few jig gear endorsements for catcher vessels would be issued for 
jig gear under the one landing threshold (19 Pacific cod endorsements 
in the CG and 11 in the WG). No jig gear endorsements would be issued 
to LLP licenses with a catcher/processor endorsement because no vessel 
used a catcher/processor endorsed LLP licenses to fish for Pacific cod 
with jig gear during the qualifying period. The Council considered more 
restrictive landing criteria as unnecessary given the limited number of 
endorsements that would be issued and the relatively limited harvest 
capacity of jig gear relative to pot or hook-and-line gear.
    A Pacific cod endorsement would be required on all LLP licenses 
assigned to vessels using fixed gear to directed fish for Pacific cod 
in the GOA. Catcher vessels that use jig gear and meet specific vessel 
size and gear requirements would be exempt from the requirement to use 
an LLP license with a Pacific cod endorsement. This exemption is 
described in detail under Action 2. Other than the exemption described 
under Action 2, all vessels using fixed gear that are required to have 
an LLP license when fishing under the Federal TAC in either Federal or 
State waters would be required to have a Pacific cod endorsement on the 
LLP license when directed fishing for Pacific cod. However, this 
requirement would not apply to vessels fishing in the Pacific cod GHL 
fishery, which is managed exclusively by the State.
    Under this amendment, if a vessel, or vessels, to which an LLP 
license has been assigned meets minimum landings requirements 
applicable to a type of fixed gear and LLP license MLOA in a specific 
regulatory area during the period 2002 through December 8, 2008, then 
the LLP license used on that vessel, or vessels, would be assigned a 
Pacific cod fixed gear endorsement for those specific gear type(s) or 
specific regulatory area(s). .An LLP license could qualify for more 
than one endorsement (i.e., pot, hook-and-line, and/or jig) if it has 
qualified landings using more than one gear type.
    In addition to issuing fixed gear endorsements based on directed 
harvests of Pacific cod during the 2002 through December 8, 2008 
period, NMFS would issue Pacific cod endorsements to a limited number 
of LLP licenses that meet specific conditions even if those LLP 
licenses did not meet the minimum landing requirements. Specifically, 
NMFS

[[Page 43123]]

would assign Pacific cod endorsements to LLP licenses that currently: 
(1) Have a catcher/processor endorsement; (2) were assigned to vessels 
that did not meet minimum landing requirements to qualify for a Pacific 
cod endorsement for catcher/processors using hook-and-line gear in 
either regulatory area where those LLP licenses are endorsed; and (3) 
were assigned to vessels that participated in industry efforts to 
reduce halibut prohibited species catch (PSC) in the directed Pacific 
cod fishery in the GOA during 2006, 2007, or 2008.
    This provision is intended to ensure that LLP license holders who 
decided not to use their vessels in the GOA during 2006, 2007, or 2008, 
in order to minimize halibut PSC through voluntary private contractual 
arrangements among hook-and-line catcher/processors would receive a 
Pacific cod endorsement. NMFS has a record of all LLP licenses that 
were used on catcher/processor vessels participating in the voluntary 
private contractual arrangements from 2006 through 2008. NMFS would 
publish a table in the regulation that lists all LLP licenses that 
would receive a Pacific cod endorsement under this exemption to 
facilitate the administration of this provision, and notify the public 
about the specific LLP licenses that would receive a Pacific cod 
endorsement. A preliminary list of LLP licenses, based on the best 
available catch data, eligible for this exemption (and thus able to 
receive an endorsement) appears at table 2 of this preamble.
    In some cases, an LLP license may be eligible to receive an 
endorsement if it meets the landing requirement in either the CG or WG, 
and it may qualify for the exemption in the other regulatory area if it 
did not otherwise meet the landing requirement in that area. Table 2 
notes whether an LLP license qualifies for the exemption in an area, 
qualifies under the landing requirements in an area, or does not meet 
eligibility requirements under either the exemption or the landing 
requirements. An LLP license would not be eligible for an endorsement 
exemption to a regulatory area if that LLP license had not been 
assigned an endorsement for that area prior to this proposed action.

  Table 2--LLP Licenses Qualifying for Hook-and-Line Catcher/Processor
                          Endorsement Exemption
------------------------------------------------------------------------
                                 Eligible for CG       Eligible for WG
       LLP License No.             endorsement           endorsement
                                    exemption             exemption
------------------------------------------------------------------------
LLG 1400....................  Yes.................  No (Qualifies under
                                                     landing
                                                     requirements).
LLG 1713....................  Yes.................  No (Not eligible for
                                                     an endorsement).
LLG 1785....................  Yes.................  No (Qualifies under
                                                     landing
                                                     requirements).
LLG 1916....................  Yes.................  No (Qualifies under
                                                     landing
                                                     requirements).
LLG 2112....................  Yes.................  Yes.
LLG 2783....................  Yes.................  No (Not eligible for
                                                     an endorsement).
LLG 2892....................  Yes.................  No (Qualifies under
                                                     landing
                                                     requirements).
LLG 2958....................  Yes.................  No (Not eligible for
                                                     an endorsement).
LLG 3616....................  Yes.................  No (Not eligible for
                                                     an endorsement).
LLG 3617....................  Yes.................  No (Qualifies under
                                                     landing
                                                     requirements).
LLG 3676....................  Yes.................  No (Qualifies under
                                                     landing
                                                     requirements).
LLG 4823....................  Yes.................  No (Qualifies under
                                                     landing
                                                     requirements).
LLG 2081....................  No (Qualifies under   Yes.
                               landing
                               requirements).
LLG 3090....................  No (Not eligible for  Yes.
                               an endorsement).
------------------------------------------------------------------------

    Table 2 indicates that under this proposed exemption, NMFS would 
issue 12 CG and three WG endorsements. An LLP license that receives a 
Pacific cod hook-and-line catcher/processor endorsement under this 
proposed exemption could only be assigned to a vessel participating in 
the Pacific cod offshore sector that is fishing in the regulatory area 
of the GOA for which the endorsement is received. Regulations at Sec.  
679.2 define the inshore and offshore sector for Pacific cod. Current 
regulations assign the offshore sector of the GOA Pacific cod fishery 
10 percent of the TAC in the CG and WG. The remaining 90 percent of the 
TAC will be is assigned for vessels in the inshore sector. Vessels are 
required to participate in the offshore sector if they are equal to or 
greater than 125 feet LOA, or are used to process more than 126 mt of 
pollock and Pacific cod in the aggregate during any seven-day period. 
Vessels not meeting these criteria must select annually whether they 
will participate in either the inshore or the offshore Pacific cod 
fishery in the GOA. NMFS is aware that in December 2009, the Council 
recommended modifications to allocate Pacific cod among various gear 
types and vessel size classes and operational types. The modification 
would remove the distinct inshore and offshore sectors in the Central 
and Western GOA. This action is commonly known as the GOA Pacific cod 
sector split. Forthcoming proposed regulations that would implement the 
Council's changes to Pacific cod management under the GOA Pacific cod 
sector split would address any potential impact on Pacific cod 
endorsements issued under this proposed rule.
    In this rule, NMFS would implement the Council's recommendation 
that LLP licenses receiving an endorsement under this provision ``only 
be allowed to participate in the offshore fishery'' by requiring that 
vessels fishing in a regulatory area for which they receive an 
endorsement under this exemption register and fish only in the offshore 
sector in that area. For example, under this proposed rule, license LLG 
4823 (see Table 2 above) would receive a Pacific cod endorsement in the 
CG under the exemption, and it would also qualify to receive an 
endorsement under the landings requirements described under Table 1. 
Thus, under this rule, if LLG 4823 is assigned to a vessel fishing in 
the CG, that vessel could only participate in the offshore sector in 
the CG.
    The proposed rule would retain the requirement that vessel owners 
elect annually on their Federal Fisheries Permit (FFP) application 
whether to participate in the inshore or the offshore sector of the 
GOA. Therefore, a vessel operator who is assigned an LLP license with a 
Pacific cod endorsement exemption could not participate in the inshore 
sector in one regulatory area and the offshore sector in another 
regulatory area in the GOA during the same calendar year. For example, 
if a vessel operator wished to participate in the CG and WG with a 
vessel assigned LLG 4823, the vessel operator could only participate in 
the offshore sector.
    The Council recommended limiting LLP holders receiving a Pacific 
cod endorsement under this exemption to the offshore sector to ensure 
that LLP license holders benefitting from this

[[Page 43124]]

exemption could not use the Pacific cod endorsement to also expand 
effort in the inshore Pacific cod fishery. The proposed rule would 
modify regulations at Sec.  679.7 to clarify that once an LLP holder 
elects to operate in either the inshore or the offshore sector in the 
GOA, any vessel to which that LLP license is assigned cannot 
participate in the sector not selected for the remainder of the 
calendar year. This clarification would implement the Council's 
recommendation to ensure LLP license holders could not alternate 
activities between the inshore and offshore sector, and potentially 
disadvantage other fishery participants who are only able to, or only 
choose to, annually participate in one sector.
    Table 3 summarizes data presented in the EA/RIR/IRFA prepared for 
this action (see ADDRESSES) and describes the number of LLP licenses by 
each operational type, regulatory area, and within each MLOA category 
that would receive a Pacific cod endorsement relative to the number of 
currently endorsed LLP licenses based on the landings criteria 
described in Table 1.

                  Table 3--Estimated Number of Fixed Gear Pacific Cod Endorsements To Be Issued
----------------------------------------------------------------------------------------------------------------
                                                                                                Estimated number
        Regulatory area              Operational type         MLOA of LLP      Current number     of qualifying
                                                                license        of endorsements    endorsements
----------------------------------------------------------------------------------------------------------------
CG.............................  Catcher vessel.........  < 60 feet.........               702               193
                                 .......................  >= 60 feet........               181                34
                                 Catcher/Processor......  All...............                49                27
WG.............................  Catcher vessel.........  < 60 feet.........               154                77
                                 .......................  >= 60 feet........               110                24
                                 Catcher/Processor......  All...............                31                21
----------------------------------------------------------------------------------------------------------------

Determining Landings Assigned to an LLP License

    Since 2002, NMFS has required that an LLP license designate a 
specific vessel on which it was being used. This requirement has 
provided NMFS the information necessary to assign landings to a 
specific LLP, and allows NMFS to verify the use of an LLP license on a 
specific vessel. When information about the use of an LLP license on a 
specific vessel is combined with vessel landings records, NMFS can 
determine how many landings may be assigned to a specific LLP license 
during the 2002 through December 8, 2008, proposed qualifying period. 
If an LLP license were not assigned a sufficient amount or number of 
landings in a specific regulatory area by vessel operation type and 
gear type for that MLOA, then under the proposed rule NMFS would not 
issue a Pacific cod endorsement for that LLP license, unless that LLP 
license were eligible for an exemption from landing requirements as 
previously described for specific hook-and-line catcher/processor 
endorsed LLP licenses.
    If a vessel were designated on more than one LLP license, NMFS 
would assign the credit for any of the vessel's landings to all LLP 
licenses assigned to, or ``stacked,'' on that vessel at that time. 
Therefore, NMFS could credit a single landing to more than one LLP 
license. This provision would ensure that when more than one LLP 
license with a specific combination of gear/area endorsements was 
assigned to a vessel that made a landing, all LLP licenses assigned to 
that vessel would be credited with the landing. Because NMFS' catch 
accounting system does not indicate how specific landings should be 
assigned to multiple LLP licenses assigned to a vessel at the time a 
landing was made, this provision would resolve any potential disputes 
that could arise about the assignment of specific landings.
    Section 2.5.12 of the EA/RIR/IRFA prepared to support this action 
(see ADDRESSES) indicates that NMFS expects that crediting each of 
these stacked LLP licenses with landings would not substantially 
increase the number of LLP licenses that met the landings requirements 
under the Council's preferred alternative. In addition, apportioning a 
landing between two LLP licenses rather than crediting each license 
with the full amount of each landing would require that NMFS develop 
detailed rules governing that apportionment, which could require a 
decision making process that would be subject to administrative appeal, 
and unnecessarily complicate implementation. The administrative appeal 
process is described in greater detail below.
    Thus, under this proposed rule, in order to receive a Pacific cod 
endorsement for either the CG or WG, a vessel with a valid LLP license 
would have to either demonstrate that it had sufficient cumulative 
landings of Pacific cod between fishing years 2002-2008, or that it 
landed a sufficient total amount of fish during that period, or that 
the LLP license holder qualifies for such an endorsement pursuant to 
the exception listed above.

Action 2: Exempt Certain Vessels Using Jig Gear From the Requirement To 
Carry an LLP License

    The second action under this proposed rule would exempt vessels 
using jig gear in the GOA from the requirement to be assigned an LLP 
license, provided those vessels do not use more than five jigging 
machines, more than one line per machine, and more than 30 hooks on any 
one line. This exemption from the requirements of the LLP for jig gear 
vessels is intended to provide a limited opportunity for entry level 
vessel operators to participate in the Federal Pacific cod fishery 
without the obligations and costs that they may incur if a Pacific cod 
endorsement were required.
    The proposed exemption is similar to an exemption that currently 
applies to jig gear vessels operating in the BSAI. Regulations at Sec.  
679.4 exempt vessels less than 60 ft LOA using a maximum of five jig 
machines, no more than one line per jig machine, and no more than 15 
hooks per line, from the requirements of the LLP in the BSAI. The 
Council recommended that the exemption in the GOA be similar to those 
in the BSAI to allow vessel operators to operate in both the BSAI and 
GOA with jig gear. The proposed restrictions on jig gear are consistent 
with the gear allowed in the GOA State waters Pacific cod jig 
fisheries. State regulations allow the use of up to 150 hooks for 
vessels participating in the State GHL fishery. The proposed regulation 
would allow a maximum of 150 hooks as well (i.e., up to 5 lines with 30 
hooks each). The purpose of the

[[Page 43125]]

jig exemption is to ensure that there are opportunities for vessels to 
use jig gear in the GOA Pacific cod fisheries.
    Section 2.5.7 of the EA/RIR/IRFA prepared for this action notes 
that the majority of vessels using jig gear during 2000 through 2007 
are less than 58 feet LOA. Relatively few vessels actively participate 
in the jig fishery on an annual basis (an average of 18 in the CG and 
11 in the WG). Pacific cod catch by jig gear vessels represents a small 
portion of the overall TAC. Few of the vessels using jig gear fish in 
Federal waters. Most vessels that use jig gear and hold LLP licenses 
participate exclusively in the parallel fishery or the State-managed 
GHL Pacific cod fisheries. The proposed action would not limit the size 
of vessels exempted from an LLP license requirement, provided the 
maximum number of jig machines and hooks per line are not exceeded. The 
Council did not deem a vessel length limit necessary after reviewing 
the size of vessels active in the Pacific cod fishery and the 
constraints imposed on vessels by the line and hook limits under this 
provision. This action would not be expected to increase harvest of 
other groundfish species assuming the recent fishing patterns of 
vessels using jig gear in the GOA continue. This recommendation is 
consistent with the Council's goals of providing continuing 
opportunities for entry-level fishermen using jig gear and minimizing 
the potential impact of new entrants on active participants in the GOA 
Pacific cod fishery.
    Jig gear operators who meet the landing threshold described under 
Action 1 would receive a Pacific cod endorsement for jig gear that 
would allow a vessel using an LLP license with this endorsement to use 
more than five jigging machines, more than five lines, and more than 30 
hooks per line.

Action 3: Modify the MLOA of Certain LLP Licenses

    The third action under this proposed rule would modify the MLOA 
specified on certain LLP licenses that are eligible to receive a 
Pacific cod endorsement under two different scenarios. Overall, this 
proposed action would modify the MLOA specified on certain LLP licenses 
to allow holders of those licenses to continue to participate in the 
fixed gear Pacific cod fishery as they do currently without increasing 
the number of active participant in the Pacific cod fishery.
    The first modification would apply if: (1) An LLP license has a 
specified MLOA greater than or equal to 60 feet; (2) that LLP license 
was consistently assigned to a single vessel under 60 feet LOA from 
January 1, 2002 through December 8, 2008; and (3) the vessel to which 
the LLP license was assigned met the landing thresholds applicable to 
LLP licenses with a specified MLOA under 60 feet. If these criteria 
were met, NMFS would issue a Pacific cod endorsement for the applicable 
gear type to the LLP license, but modify the MLOA of the LLP license to 
match the LOA of the vessel to which the LLP license was assigned. In 
no case could the MLOA specified on the LLP license be increased beyond 
60 feet. This modification would ensure that vessel owners could 
continue to use the vessel and LLP licenses in the fisheries as they 
had during the January 1, 2002 through December 8, 2008, time period 
and the LLP licenses would receive a Pacific cod endorsement applicable 
to the length of the vessel to which the LLP license was assigned. This 
modification would reduce the overall MLOA specified on those LLP 
licenses that meet these criteria.
    To determine the MLOA that would be specified on the LLP license, 
NMFS would use the LOA of the vessel to which the LLP license is 
assigned at the time of the effective date of this rule, if approved. 
NMFS maintains records of vessel LOA based on data reported by vessel 
owners. Regulations at Sec.  679.4 require vessel owners to report 
accurate LOA in order to receive and hold an FFP. NMFS would use the 
reported FFP data to determine the LOA of a vessel. If the LLP holder 
disagreed with the LOA on file with NMFS and wished to provide data to 
NMFS to establish a different LOA for the vessel, NMFS would require 
that the LLP license holder provide a survey conducted by a naval 
architect or marine surveyor independent from the vessel owner or LLP 
license holder to verify the LOA of the vessel. NMFS would provide a 
vessel owner 90 days from the effective date of this rule to provide 
the survey to NMFS. The 90-day time period should provide the LLP 
license holder with sufficient time necessary to have a vessel surveyed 
and to provide that information to NMFS. NMFS would not assign a 
Pacific cod endorsement to an LLP license holder with a greater vessel 
LOA than that shown in NMFS' record unless a timely independent survey 
was submitted and received by NMFS. If no survey is provided within the 
90-day time frame, NMFS would reissue the LLP license with the MLOA 
equal to the LOA of the vessel to which the LLP license was assigned 
based on the LOA on file with NMFS. No LLP license that would receive a 
Pacific cod endorsement under this provision could have an MLOA equal 
to or greater than 60 feet under any circumstance to ensure that the 
intent of the Council's recommendation is met. The procedure proposed 
here would provide an opportunity for an LLP license holder to amend 
NMFS' official record consistent with the appeals process described 
below in this preamble.
    Section 2.5.3 of the EA/RIR/IRFA prepared for this action estimates 
that the MLOA specified on fewer than six LLP licenses would be 
adjusted by this exemption. A more precise estimate is not available 
given some uncertainty about the LOA of the vessels to which some of 
these LLP licenses were assigned during January 1, 2002, through 
December 8, 2008. Overall, this modification would be expected to have 
a limited effect on the total harvest of Pacific cod. This exemption 
would only apply if an LLP license had been continuously assigned to a 
vessel under 60 feet LOA during that period. The redesignation of the 
MLOA on an LLP license that qualifies under this provision would 
effectively prohibit the use of that LLP license on larger vessels that 
may have greater harvest capacity, but would allow smaller vessels that 
had been assigned that LLP license to continue to operate in the 
Pacific cod fishery.
    The second modification of an LLP MLOA would apply if an LLP 
license (1) would be eligible to receive a pot catcher vessel Pacific 
cod endorsement, and (2) has a specified MLOA of less than 50 feet. If 
these criteria were met, NMFS would redesignate the MLOA of those LLP 
licenses to be 50 feet. This modification would ensure that a limited 
number of vessel owners who had recently purchased vessels that are 
longer than the MLOA of the LLP license that is eligible to receive the 
Pacific cod endorsement could continue to use those LLP licenses on 
their longer vessels. This recommendation is consistent with the 
Council's goals of providing continuing opportunities for recent 
fishery participants and minimizing the potential for active 
participants to expand effort in the GOA Pacific cod fishery.
    Section 2.6.11 of the analysis prepared for this action notes that 
the Council supported this provision because a number of vessel 
operators using pot gear had recently purchased vessels not greater 
than 50 feet in LOA, but larger than the MLOA specified on their LLP 
licenses that would be eligible to receive a Pacific cod endorsement. 
These vessel owners also hold LLP licenses with the appropriate MLOA; 
however, these LLP licenses would not meet the minimum landing

[[Page 43126]]

requirements to qualify for a Pacific cod endorsement under this 
proposed action. These vessel operators testified (and available data 
on LLP licenses shows) that the number of LLP licenses likely to 
receive a Pacific cod endorsement that could be used on these vessels 
was limited and costly relative to the harvest capacity of their 50-
foot, or shorter, LOA vessels. Very few LLP licenses with an MLOA of 50 
feet would receive a Pacific cod endorsement for pot gear under the 
Council's proposed action. The Council recommended increasing the MLOA 
of a limited number of LLP licenses to 50 feet to accommodate these 
vessel owners. This modification would reduce the potential costs for 
these smaller vessel operators, but would not be expected to increase 
the overall harvest capacity of the fleet measurably. The analysis 
estimates that this provision would modify the MLOA of four LLP 
licenses. The analysis indicated that these vessels used only pot gear 
during the qualifying period; therefore, this proposed action would 
modify LLP licenses endorsed for pot gear.

Action 4: Allow Specific Community Entities To Request and Receive LLP 
Licenses With a Pacific Cod Endorsement

    The fourth action under this proposed rule would allow entities 
representing specific communities in the WG and CG to request a limited 
number of non-transferrable Pacific cod endorsed LLP licenses. Under 
this rule, NMFS would issue licenses that are endorsed for hook-and-
line or pot gear with an MLOA of 60 feet. Once the community entity 
received the LLP license, the community entity could assign that LLP 
license for use on a vessel designated by the entity. Prior to 
receiving the LLP license, the community entity eligible to receive the 
LLP license would need to submit a detailed plan describing how it 
would assign the LLP license to a specific vessel.
    Previously, the Council recommended, and the Secretary approved, 
Amendment 66 to the GOA FMP, which implemented management measures to 
provide harvest opportunities to specific communities in the GOA (April 
30, 2004, 69 FR 23681). Under Amendment 66, the Council defined a 
specific suite of smaller GOA communities that have historically 
participated in GOA fisheries but may lack some of the infrastructure 
and population base that could facilitate participation by residents of 
those communities in GOA fisheries, as compared to larger communities. 
Under Amendment 66, a community quota entity (CQE) was authorized to 
purchase halibut and sablefish quota share (QS) on behalf of the 
community it represents, and assign the resulting annual individual 
fishing quota (IFQ) to specific members of the community that meet 
minimum residency standards and other requirements. The CQE is intended 
to serve the interests of the community as a whole by providing access 
to fishery resources for residents of the community.
    Communities eligible under Amendment 66: (1) Have a population of 
less than 1,500 and at least 20 persons based on the 2000 United States 
Census; (2) are located on the GOA coast of the North Pacific Ocean; 
(3) have direct saltwater access; (4) lack direct road access to 
communities with a population greater than 1,500 persons; (5) have 
historic participation in the halibut and sablefish fisheries; and (6) 
are specifically listed in Table 21 to part 679. Seventeen communities 
that meet these criteria are located in the CG, and four communities 
are located in the WG.
    For this proposed action, the Council reviewed a range of potential 
options for defining coastal communities in the GOA based on their 
location on the GOA coast of the North Pacific Ocean, and past harvest 
patterns by community residents in the GOA Pacific cod fishery. 
Ultimately, the Council chose to rely on the six criteria listed above 
under Amendment 66 to determine coastal communities that may benefit 
from the ability to retain or expand participation opportunities in the 
GOA Pacific cod fishery for their residents. The Council relied on the 
criteria established under Amendment 66 to define communities eligible 
to receive an LLP license with a Pacific cod endorsements because these 
criteria incorporate communities that are active in GOA fisheries 
generally, do not include larger communities that do not have the same 
reliance on GOA fishery resources relative to their population, and 
would provide opportunities communities that lack access to financial 
opportunities that may exist in larger communities. NMFS would provide 
the CQEs that represent these communities the opportunity to enhance 
their access to fishery resources by providing CQEs with a limited 
number of Pacific cod endorsed fixed-gear LLP licenses.
    The Council recommended that if an eligible community in the CG or 
WG forms a CQE under existing regulations at Sec.  679.41(l)(3), that 
CQE could apply to receive a specified number of Pacific cod endorsed 
fixed-gear LLP licenses. If a CQE submitted a complete application for 
LLP licenses, NMFS would issue the CQE new LLP licenses with the 
applicable gear and area endorsements. CQEs that have already formed 
and been approved by NMFS would be also eligible to apply to receive 
LLP licenses.
    The Council clarified that a CQE could request a Pacific cod 
endorsed LLP license only for the area in which that community is 
located. CQE communities in the WG could receive only WG endorsed LLP 
licenses, and CQE communities in the CG could receive only CG endorsed 
LLP licenses. The Council made this recommendation to provide community 
residents the opportunity to access Pacific cod resources adjacent to 
their community, and to prevent community residents from using LLP 
licenses granted through this provision to expand fishing efforts into 
regions outside the community. The Council clarified that the goal of 
this provision is to ensure access to Pacific cod resources near each 
community and not to encourage fishing operations that would expand 
into other regions.
    In order to receive LLP licenses, the CQE would need to meet 
several requirements. Prior to requesting LLP licenses, the CQE must 
provide NMFS with a plan for soliciting and determining recipients of 
the LLP licenses issued to the CQE. The Council specified that this 
plan should contain requirements similar to the plan requirements that 
apply to a CQE when distributing annual IFQ from halibut or sablefish 
QS held by the CQE. Regulations at Sec.  679.41(l)(3) contain the 
requirements that CQEs must meet to form and solicit potential 
recipients of halibut and sablefish IFQ. NMFS proposes to model 
regulations for this action on the existing regulations at Sec.  
679.41(l)(3). Specifically, CQEs would need to provide NMFS with: (1) A 
statement describing the procedures that will be used to determine the 
distribution of LLP licenses to residents of the community represented 
by that CQE; (2) procedures used to solicit requests from residents to 
be assigned an LLP license; and (3) criteria used to determine the 
distribution of the use of LLP licenses among qualified community 
residents and the relative weighting of those criteria. These 
requirements would inform the Council and NMFS about the process used 
by CQEs to provide fishery opportunities to its residents without 
requiring a detailed suite of regulatory measures to define how such 
fishing opportunities would be assigned throughout all of the 
geographically and culturally diverse communities.

[[Page 43127]]

    Second, once the CQE has submitted the application to NMFS and the 
CQE has selected a potential recipient to use the LLP license, NMFS 
would require that the CQE provide a letter of authorization to the 
vessel operator listing the specific person(s) and the specific vessel 
eligible to use an LLP license held by the CQE during a calendar year. 
An LLP license issued to a CQE could not designate more than one vessel 
per calendar year. The CQE could amend the authorization letter to add 
additional persons authorized to use the LLP license on a vessel. The 
person authorized to use the LLP license issued to the CQE would not be 
required to be the vessel operator. For example, a crew member could be 
authorized to use the CQE's LLP license. The person designated to use 
the LLP license issued to the CQE would be required to be onboard the 
vessel while the vessel is used to directed fish for Pacific cod under 
the authority of that license. NMFS would require that a copy of the 
authorization letter and any amendments to the authorization letter be 
provided to NMFS, and a copy of that authorization letter and any 
amendments would need to be maintained onboard the vessel assigned the 
CQE's LLP license. Likewise, NMFS would require that the authorization 
letter be provided on or before the date that the LLP license is used 
on a vessel during a calendar year. NMFS would also require that any 
amendments to the authorization to designate new authorized persons be 
provided to NMFS prior to those persons using the CQE's Pacific cod 
LLP.
    As part of this authorization letter, NMFS would require that the 
CQE attest that the persons authorized to use the LLP license meet 
residency requirements similar to those required for recipients of IFQ 
derived from halibut and sablefish QS held by a CQE. Specifically, the 
CQE would need to attest that the authorized person (1) Is a citizen of 
the United States; and (2) has maintained a domicile in a CQE community 
in the CG or WG eligible to receive an LLP license endorsed for Pacific 
cod for the 12 consecutive months immediately preceding the time when 
the assertion of residence is made; and (3) is not claiming residency 
in another community, state, territory, or country, with an exception 
made for residents of the Village of Seldovia. Consistent with the 
definition of a resident under Amendment 66, residents of the Village 
of Seldovia shall be considered to be eligible community residents of 
the City of Seldovia for the purposes of eligibility to serve as an 
authorized vessel operator. The rationale for the residency exemption 
that applies to the City of Seldovia is described in detail in the 
preamble to the final rule for Amendment 66 and is not repeated here 
(April 30, 2004, 69 FR 23681). Maintaining this exemption for the 
residents of the Village of Seldovia is consistent with the Council's 
goal of providing access to community residents consistent with 
Amendment 66.
    The Council recommended these requirements to ensure that residents 
of communities receive the benefits of the LLP licenses issued to CQEs. 
The Council recommended that only one vessel be allowed to use a 
specific LLP license issued to a CQE per year to reduce the potential 
that an LLP license could be used on multiple vessels. Allowing 
multiple vessels to use an LLP license in a given year could increase 
competition for Pacific cod resources in waters surrounding these 
communities. The Council did not recommend allowing a CQE to designate 
more than one vessel in cases of vessel loss. This restriction would 
not be expected to prevent the ability of community residents to access 
Pacific cod resources through a CQE LLP license because a minimum of 
two LLP licenses can be issued to any one CQE. Because a CQE can 
designate a new vessel each year prior to the start of the fishing 
season, the effect of restricting the use of an LLP to only one vessel 
per year would not be expected to be a long-term constraint on fishing 
operations.
    The Council recommended that the CQE provide an authorization 
letter assigning a specific vessel and designating the person(s) 
authorized use of the LLP license. Providing the authorization letter 
to NMFS and requiring that a copy of that letter be maintained onboard 
the vessel would help to ensure that only those persons and vessels 
that have been vetted through the CQE are able to use the LLP license. 
The requirement that the person(s) authorized to use the CQE's LLP 
license be onboard the vessel when directed fishing for Pacific cod 
under the authority of that license meets the Council's intent to 
ensure that a resident of a CQE community be actively engaged in 
fishing when that LLP license is being used. In the absence of this 
provision, the CQE could authorize a person who is a member of a CQE 
community to ``use'' the LLP license without being actively engaged in 
fishing for Pacific cod.
    The residency requirements for the person using a CQE license would 
ensure that residents of a specific community actively participate in 
the Pacific cod fishery consistent with the overall goal the Council 
established for CQE LLP licenses described earlier. This authorization 
letter would require that the CQE attest to individuals' residency, but 
would not require individuals to submit proof of residency to NMFS in 
order to use the LLP license issued to the CQE. This approach would 
reduce potential administrative burdens on NMFS that could be required 
to determine the residency of a specific person. In many cases, 
particularly in smaller communities, the representatives of CQEs are 
likely to have specific local knowledge that can be used to assess a 
person's claim of residency.
    The specific requirement that a person using an LLP license issued 
to a CQE must be a U.S. Citizen with residency in a specific community 
mirrors requirements currently established under Amendment 66 to allow 
a person to receive IFQ from QS held by a CQE. One requirement 
necessary for a person to receive IFQ from a CQE, that a person be 
considered an ``IFQ crew member,'' would not apply to the operator of a 
vessel using an LLP license issued to a CQE. The definition of a 
halibut and sablefish IFQ crew member is not directly applicable to a 
person operating a vessel in the Pacific cod fishery.
    The Council identified the specific communities that would be 
eligible to receive LLP licenses if they formed a CQE. Those 
communities are listed in this proposed rule in Table 50 to part 679. 
The eligible communities are located in the CG and WG, with one 
exception for the City of Yakutat. Although Yakutat is located in the 
Eastern Gulf of Alaska, it is located close to the eastern boundary of 
the CG. Historically, fishing vessels operating out of Yakutat have 
participated in CG fisheries. For these reasons, the Council 
recommended that Yakutat be included in this proposed provision.
    Several limitations apply to any LLP license that a CQE would 
receive. These include: (1) All LLP licenses issued would be non-
transferable; (2) a limited number of LLP licenses could be issued to 
each CQE; (3) the LLP licenses would have an MLOA of 60 feet; and (4) 
the LLP licenses would have specific gear endorsements.
    The Council recommended, and the proposed rule provides, that LLP 
licenses issued to CQEs would be non-transferrable to reduce the risk 
that CQEs would receive LLP licenses and transfer those LLP licenses to 
persons who may not have vessels, crew, or delivery patterns associated 
with the community, thereby frustrating the

[[Page 43128]]

primary goal of these LLP licenses to provide additional opportunities 
for community residents. This is consistent with the CQE provisions in 
the halibut and sablefish IFQ Program designed to promote a long-term 
asset for the community.
    The Council recommended, and this action proposes, a limit on the 
specific number of LLP licenses that each eligible CQE could request on 
behalf of that community. This limit would reduce the potential adverse 
effects of an unlimited number of Pacific cod endorsed LLP licenses on 
other LLP license holders. The number of LLP licenses that each CQE 
could request on behalf of a community is based on information 
(incorporated in Section 2.5.14 of the analysis prepared for this 
action) indicating the number of LLP licenses held by residents of each 
eligible community and the estimated number of LLP licenses that would 
be extinguished under the other provisions of the proposed action.
    The Council's April 2009 motion would have allowed a CQE to request 
a maximum number of LLP licenses on behalf of a community. The number 
of LLP licenses that may be requested is based upon information 
regarding the number of licenses held by community residents that the 
analysis estimated did not qualify for a Pacific cod endorsement under 
a one landing threshold from 2002 through December 8, 2008, or two LLP 
licenses, whichever is greater. However, the Council recommended 
assigning Pacific cod endorsements to non-CQE LLP licenses based on a 
minimum tonnage requirement, not a minimum number of landings. After 
the Council took final action in April 2009, CQE representatives noted 
that it was likely that residents of CQE communities would qualify to 
receive fewer non-CQE Pacific cod endorsements on their LLP licenses 
under the minimum tonnage rather than the minimum landings requirement. 
The Council requested additional information on the number of LLP 
licenses held by community residents that were estimated not to qualify 
for a Pacific cod endorsement under the minimum landing threshold from 
2002 through December 8, 2008. This additional information was 
presented to the Council in December 2009. These data show that 11 
fewer CQE community residents would receive Pacific cod endorsements in 
the CG and seven fewer in the WG under the minimum tonnage threshold 
than under the minimum landing threshold.
    The Council's intent of proposed Action 4 was to provide CQE 
communities with the opportunity to request either: (1) The estimated 
number of licenses held by residents that did not qualify for a Pacific 
cod endorsement; or (2) a minimum of two licenses. If the minimum 
tonnage threshold had been used in April 2009, to determine how many 
licenses each CQE may request, more licenses (in the aggregate) would 
have been made available to CQEs. Therefore, in December 2009, the 
Council amended its April 2009 action to clarify that CQEs could 
request, in the aggregate, an additional eleven (11) CG LLP licenses 
and seven (7) WG LLP licenses with Pacific cod endorsements. This 
amendment was intended to ensure that the number of LLP licenses made 
available to CQEs better matched the Council's intent for this action.
    The Council clearly indicated that it would establish the maximum 
number of LLP licenses that each CQE community could request and set 
the number of licenses in regulation. The proposed number of LLP 
licenses that each CQE community could request is based on the 
Council's December 2009, action and that number is listed in the 
proposed rule at Table 50 to part 679. The Council recommended that 
NMFS establish a specific list of eligible communities and the maximum 
number of LLP licenses that could be issued for a community in 
regulation to ensure that each community would know exactly how many 
LLP licenses it would be eligible to receive, and could plan its 
harvesting efforts accordingly.
    The Council recommended that in those CQE communities where no 
residents were identified as potential recipients of Pacific cod 
endorsements, the CQE could request a maximum of two LLP licenses. The 
Council recommended this limit to provide residents of these 
communities an opportunity to access the Pacific cod fishery. In many 
cases, the communities that would be eligible to request up to two 
Pacific cod endorsed LLP licenses have relatively small populations. 
Granting two LLP licenses would provide opportunities for more than one 
vessel in a community, but would limit the ability for additional 
vessels to increase their effort in Pacific cod fisheries substantially 
beyond the number of vessels in the communities that have historically 
participated in the Pacific cod fishery.
    The net effect of the Council's action does not seem to increase 
the total number of LLP licenses that could be used to fish in the 
Pacific cod fishery relative to the number of LLP licenses that could 
be used to fish Pacific cod if this proposed action were not approved 
by the Secretary. Based on information in Section 2.5.14 of the EA/RIR/
IRFA prepared for this proposed action, residents of the CQE 
communities eligible for this provision held 74 CG endorsed fixed-gear 
LLP licenses, and 54 WG endorsed LLP licenses as of December 2009. 
Under this proposed action, only 9 CG Pacific cod endorsements would be 
granted, and only 29 WG Pacific cod endorsements would be granted to 
CQE residents who met the minimum landing requirements during the 2002 
through December 8, 2008, qualifying period. If all eligible 
communities formed a CQE and applied to receive a Pacific cod endorsed 
LLP license, a maximum of 57 CG and 32 WG Pacific cod endorsements 
could be issued to residents of the CQE communities. These numbers 
assume that the residency of potential Pacific cod endorsement 
recipients does not change during the period between the Council's 
recommendation and the publication of the proposed rule and the 
effective date of the final rule.
    NMFS proposes a modification to regulations at Sec.  
679.7(i)(1)(i), which limit the maximum number of LLP licenses that a 
person may hold, to fully implement the Council's intent to allow CQEs 
to provide harvest opportunities for local residents. Regulations at 
Sec.  679.7(i)(1)(i) currently limit a person, which includes CQEs, 
from holding more than 10 groundfish LLP licenses. The proposed new 
Table 50 to part 679 notes that the CQE representing the City of Sand 
Point could hold up to 14 LLP licenses. This proposed rule would amend 
regulations at Sec.  679.7(i) to prohibit the CQE representing the City 
of Sand Point from holding more than 14 groundfish LLP licenses, rather 
than prohibiting the CQE representing Sand Point from holding more than 
10 groundfish LLP licenses. This proposed change would not affect any 
other person, but would allow the CQE representing Sand Point to hold 
the maximum number of LLP licenses that could be received under this 
proposed action consistent with Council intent.
    The Council recommended that the LLP licenses that would be issued 
have a specified MLOA of 60 feet. This MLOA would limit the potential 
that CQE communities could assign LLP licenses to large vessels with 
potentially greater harvest capacity than the vessels traditionally 
used by residents of these communities. Typically, many of the vessels 
used to fish Pacific cod with fixed-gear in the CQE communities are 
``combination vessels'' that were originally designed to participate in 
the State salmon seine fisheries but now participate in salmon, 
groundfish, and the halibut IFQ fisheries. Because many of these 
combination vessels are subject

[[Page 43129]]

to length limits established by the State for participation in the 
salmon seine fishery, most combination vessels are no greater than 58 
feet LOA. Based on a review of length data of vessels in CQE 
communities provided in Section 2.5.14 of the EA/RIR/IRFA prepared for 
this action, NMFS anticipates that most of the vessels likely to be 
used by CQE community residents would be less than 58 feet in length, 
and none would be expected to exceed 60 feet in length. Consistent with 
the information in the analysis, the Council recommended, and NMFS 
proposes, limiting the MLOA on LLP licenses issued to CQEs to 60 feet 
LOA to accommodate existing fishing patterns and vessel usage in the 
eligible communities.
    The Council recommended that the gear endorsements on LLP licenses 
that could be requested by a CQE generally represent the overall 
harvest patterns by vessels using hook-and-line and pot gear within 
each regulatory area. Vessels using jig gear would be exempt from the 
LLP license requirement and, therefore, harvest patterns by vessels 
using that gear type would not be considered when assigning LLP 
licenses to CQEs. Section 2.5.3 of the EA/RIR/IRFA prepared for this 
proposed action indicates that over 90 percent of the LLP licenses with 
an MLOA of less than 60 feet would receive a fixed-gear Pacific cod 
endorsement in the WG for pot gear. Very few LLP licenses would qualify 
for a hook-and-line or a jig endorsement with a less than 60-foot MLOA 
because those gear types have not historically been used in the WG. By 
contrast, roughly half of the LLP licenses with an MLOA of less than 60 
feet in the CG would receive a fixed gear endorsement for pot gear, and 
the other half would be endorsed for hook-and-line gear. Therefore, 
NMFS would issue LLP licenses endorsed only for pot gear to CQEs 
representing communities in the WG. CQEs representing communities in 
the CG, including Yakutat, would have the option of selecting what 
proportion of their LLP licenses would have a pot endorsement or a 
hook-and-line endorsement, provided the CQE notified NMFS within six 
months of the effective date of a final rule, if implemented, of their 
choice. Selection of gear type would be a one-time permanent choice. If 
a CQE did not notify NMFS within this time frame, then NMFS would issue 
any LLP licenses that are requested by a CQE so that half the LLP 
licenses issued to the CQE would be endorsed for pot gear and half 
would be endorsed for hook-and-line gear. In cases where the total 
number of groundfish licenses issued on behalf of a community listed in 
Table 50 to part 679 is not even, NMFS will issue one more groundfish 
license with a pot gear Pacific cod endorsement than the number of 
groundfish licenses with a hook-and-line gear Pacific cod endorsement. 
This process for issuing LLP licenses would provide CQEs the 
opportunity to select the gear types that are appropriate for use by 
community residents at the time of implementation, while preserving the 
overall goal of maintaining the current harvest patterns within the CG.
    The Council recommended, and NMFS proposes, that CQEs submit annual 
reports consistent with the annual report requirements established 
under Amendment 66. CQE annual reports would be required to be 
submitted to NMFS and the governing body of the community that the CQE 
represents. These annual reports would serve as a means of tracking the 
progress of the CQEs that have received LLP licenses under this 
proposed rule and to assess whether the issuance of LLP licenses was 
meeting the overall goal of providing its residents access to the 
Pacific cod resource. The Council requested that the CQE provide 
information in the annual reports describing the use of LLP licenses 
during a calendar year. The annual report would need to include: (1) 
The number of community residents requesting an LLP license from the 
CQE; (2) a description of the distribution of LLP licenses among 
community residents; (3) vessels assigned to use the LLP licenses; (4) 
the number and residency of crew employed on a vessel using the LLP 
license; and (5) the amount of payments made to CQEs for use of the LLP 
licenses, if any. Consistent with the timeline required for submission 
of the CQE annual report under Amendment 66, these annual reports would 
be due by January 31 for the prior fishing year for each community 
represented by the CQE for which those LLP licenses were granted.
    NMFS would not establish an appeal process for CQEs to receive LLP 
licenses. The proposed action would allow CQEs to request LLP licenses 
provided the specific requirements detailed here were met. If those 
conditions were not met, NMFS would not issue LLP licenses to the CQEs. 
Because NMFS is not proposing to remove or otherwise restrict existing 
harvest opportunities available to CQEs, no appeal process is required. 
A potential CQE does have an opportunity to challenge and appeal the 
decision to certify its designation for a specific community. That 
provision is described in regulation at Sec.  679.41(l)(3).

Process for Assigning New Pacific Cod Endorsements

    NMFS would create an official record with all relevant information 
necessary to assign landings to specific LLP licenses. Prior to 
modifying any LLP licenses, NMFS would notify all fixed gear LLP 
license holders of the status of their LLP license endorsements (i.e., 
the endorsements for specific fixed gear, operational types, and 
regulatory areas). Should an LLP license holder disagree with NMFS' 
official record, NMFS would provide an opportunity for a person to 
submit information to rebut the presumptions made by NMFS.
    The official record created by NMFS would contain vessel landings 
data, and the LLP licenses to which those landings would be attributed. 
Evidence of the number and amount of landing in the Pacific cod fishery 
would be based only on legally submitted NMFS weekly production reports 
for catcher/processors and State fish tickets for catcher vessels. 
Historically, NMFS has only used these two data sources to determine 
the specific amount and location of landings and NMFS proposes to 
continue to do so under this action. In order to ensure that landings 
in the directed Pacific cod fishery are properly attributed to an LLP 
license, NMFS would assign any delivery of Pacific cod up to seven days 
after the closure of the Pacific cod season to an LLP license. The 
seven-day period would reasonably accommodate any final deliveries, and 
is consistent with the approach NMFS has used in other management 
programs to assign catch to an LLP license (e.g., CG Rockfish Program). 
The official record also would include the records of the specific LLP 
licenses assigned to vessels and other relevant information necessary 
to attribute landings to specific LLP licenses. NMFS would presume the 
official record is correct, and a person wishing to challenge the 
presumptions in the official record would bear the burden of proof 
through an evidentiary and appeals process.
    If this proposed rule is approved and implemented, NMFS would mail 
a notification to each fixed-gear LLP license holder based on the 
address on record at the time the notification is sent about the status 
of any endorsements for that LLP license. NMFS would provide 
information concerning the proposed effects of any changes to any LLP 
license to the LLP license holder, and would provide a single 30-day 
evidentiary period from the date that notification is sent for an LLP 
holder to submit any information or evidence to demonstrate that the 
information

[[Page 43130]]

contained in the official record is inconsistent with his or her 
records.
    Under this proposed rule, an LLP license holder who submits claims 
that are inconsistent with information in the official record would 
have the burden of proving that the submitted claims are correct. NMFS 
would not accept claims that are inconsistent with the official record, 
unless they are supported by clear written documentation. NMFS would 
evaluate additional information or evidence to support an LLP license 
holder's inconsistent claims submitted prior to or within the 30-day 
evidentiary period. If NMFS determines that the additional information 
or evidence proves that the LLP license holder's claims are correct, 
NMFS would act in accordance with that information or evidence. 
However, if, after the 30-day evidentiary period, NMFS determines that 
the additional information or evidence does not prove that the LLP 
license holder's claims were correct, NMFS would deny the claim. NMFS 
would notify the applicant that the additional information or evidence 
did not meet the burden of proof to overcome the official record 
through an initial administrative determination (IAD).
    NMFS' IAD would indicate the deficiencies and discrepancies in the 
information or the evidence submitted in support of the claim. NMFS' 
IAD would indicate which claims could not be approved based on the 
available information or evidence, and provide information on how an 
applicant could appeal an IAD. The appeals process is described under 
Sec.  679.43. A person who appeals an IAD would be eligible to 
participate in the GOA Pacific cod fishery using the disputed LLP 
license with the claimed endorsements listed on the LLP license until 
final action by NMFS on the appeal. NMFS would reissue as interim LLP 
licenses any LLP licenses pending final action by NMFS. Once final 
action has been taken, NMFS would reissue the LLP license as a final 
non-interim LLP license. NMFS would prohibit the transfer of an interim 
LLP license until the appeal is resolved. Transfer restrictions would 
be imposed on interim LLP licenses to ensure that a person would not 
receive an LLP license by transfer and have the endorsement modified 
through an appeal process that was initiated and conducted by the 
previous LLP license holder--a process that a transferee could not 
control and which could substantially affect the value and utility of 
that LLP license.
    If a person does not dispute the notification of changes in their 
LLP license endorsements, or upon the resolution of any inconsistent 
claims, a revised LLP license with the appropriate endorsements would 
be reissued to the LLP license holder. In cases where all endorsements 
on a LLP license with only a fixed gear endorsement are extinguished, 
NMFS would not reissue the LLP license because it would no longer be 
valid for use with fixed-gear in any management area.

Classification

    The Assistant Administrator for Fisheries, NOAA, has determined 
that this proposed rule is consistent with Amendment 86, the Magnuson-
Stevens Fishery Conservation and Management Act (MSA), and other 
applicable laws, subject to further consideration after public comment.

Executive Order 12866

    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.

Initial Regulatory Flexibility Analysis (IRFA)

    An IRFA was prepared, as required by section 603 of the Regulatory 
Flexibility Act (RFA). Copies of the IRFA prepared for this proposed 
rule are available from NMFS (see ADDRESSES). The IRFA describes the 
economic impact this proposed rule, if adopted, would have on small 
entities. A description of the action, the reasons why it is being 
considered, and a statement of the objectives of, and the legal basis 
for, this action are contained in the SUMMARY section of the preamble 
and are not repeated here. The IRFA for this proposed action describes 
the reasons why this action is being proposed; the objectives and legal 
basis for the proposed rule; the type and estimated number of small 
entities to which the proposed rule would apply; any projected 
reporting, recordkeeping, or other compliance requirements of the 
proposed rule; any overlapping, duplicative, or conflicting Federal 
rules; and any significant alternatives to the proposed rule that 
accomplish the stated objectives of the MSA and any other applicable 
statutes, and that would minimize any significant adverse economic 
impact of the proposed rule on small entities. A summary of that 
analysis follows.

Rationale, Objectives, and Legal Basis of the Proposed Rule

    The IRFA describes in detail the reasons why this action is being 
proposed, describes the objectives and legal basis for the proposed 
rule, and discusses both small and other regulated entities to 
adequately characterize the fishery participants. The MSA is the legal 
basis for the proposed rule. The objectives of the proposed rule are to 
limit the number of potential participants in Federal fixed-gear 
Pacific cod fisheries in the GOA by assigning and requiring Pacific cod 
endorsements on LLP licenses, and to provide additional fixed gear 
licenses that may be used on behalf of specific GOA communities. NMFS 
expects the proposed action will reduce uncertainty for active 
participants and provide additional harvest opportunities for residents 
of specific communities in the Western and Central GOA and the 
community of Yakutat whose residents have historically participated in 
Central GOA fisheries.

Number of Small Entities to Which the Proposed Rule Would Apply

    The directly regulated entities under this proposed rule are 
holders of LLP licenses endorsed for fixed-gear activity who conducted 
directed fishing for Pacific cod in the GOA. For purposes of an IRFA, 
the Small Business Administration (SBA) has established that a business 
involved in fish harvesting is a small business if it is independently 
owned and operated, not dominant in its field of operation (including 
its affiliates), and if it has combined annual gross receipts not in 
excess of $4.0 million for all its affiliated operations worldwide. A 
seafood processor is a small business if it is independently owned and 
operated, not dominant in its field of operation, and employs 500 or 
fewer persons on a full-time, part-time, temporary, or other basis, at 
all its affiliated operations worldwide. Because the SBA does not have 
a size criterion for businesses that are involved in both the 
harvesting and processing of seafood products, NMFS has in the past 
applied, and continues to apply, SBA's fish harvesting criterion for 
these businesses because catcher/processors are first and foremost fish 
harvesting businesses. Therefore, a business involved in both the 
harvesting and processing of seafood products is a small business if it 
meets the $4.0 million criterion for fish harvesting operations. NMFS 
is reviewing its small entity size classification for all catcher/
processors in the United States. However, until new guidance is 
adopted, NMFS will continue to use the annual receipts standard for 
catcher/processors. Even if additional catcher/processors would have 
been identified as small entities under a revised small entity size 
classification, NMFS would have analyzed the effect on small entities 
using the same methods that were used in the IRFA prepared for the

[[Page 43131]]

proposed rule. NMFS considered the effects of the proposed rule and 
attempted to reduce costs to all directly regulated entities regardless 
of the number of small entities.
    The IRFA estimates that a maximum of 956 entities hold LLP licenses 
with fixed-gear endorsements designated for catcher vessel or catcher/
processor operations; of these, an estimated 908 small entities would 
be directly regulated by this action. The IRFA notes that estimates of 
the number of small entities directly regulated by this proposed action 
are complicated by limited LLP license holder ownership information, 
and are based on available records of employment and information on 
participation in other fisheries. The estimate of the number of small 
entities is conservative. Other supporting businesses may also be 
indirectly affected by this action if it leads to fewer vessels 
participating in the fishery. These impacts are analyzed in the RIR 
prepared for this action (see ADDRESSES).

Impacts on Directly Regulated Small Entities

    The purpose of the proposed action is to prevent future economic 
dislocation to fixed gear LLP license holders who have demonstrated 
consistent and recent participation in the fixed gear Pacific cod 
fisheries, and to provide additional harvest opportunities for 
residents of specific communities located adjacent to the Western and 
Central GOA, including the West Yakutat District. The overall impact to 
small entities is expected to be positive. Active fishery participants 
would face a reduced risk that the fishing effort would increase from 
currently inactive participants. Impacts from the proposed rule would 
accrue differentially (i.e., some entities could be negatively affected 
and others positively affected). As an example, active participants in 
the Pacific cod fishery would be expected to face less potential 
uncertainty about future fishery effort. The potential effects would 
vary depending on the gear type, regulatory area, and operational type 
assigned to the LLP license holder. Residents of communities eligible 
to receive a Pacific cod endorsed LLP license would have additional 
access to Pacific cod resources The Council considered an extensive 
range of alternatives and options as it designed and evaluated the 
potential for changes to groundfish management in the GOA including the 
``no action''alternative.
    Two alternative approaches for the management of Pacific cod 
fishing by non-trawl LLP licenses in the CG and WG are presented in the 
EA/RIR/IRFA: Alternative 1--Status Quo/No Action; Alternative 2--Add a 
Pacific cod endorsement on the CG and WG GOA LLP licenses if minimum 
landing requirements are met. Alternative 2 would include a provision 
to issue new Pacific cod endorsed fixed gear LLP licenses to non-profit 
CQEs, representing specific communities in the CG and WG. These two 
alternatives examined ranges of options for a varying range of landing 
criteria and mechanisms for assigning Pacific cod endorsements. These 
alternative landing criteria and mechanisms and the options examined in 
the context of these alternatives constitute the suite of ``significant 
alternatives'' for the proposed action for the purposes of the RFA. 
During the development of this proposed action, the Council considered 
and rejected alternatives that would have allocated quota to specific 
fishery participants, or allocated a portion of the TAC to specific 
fishery sectors and gear types. These alternatives were considered to 
be overly broad to address the goal of limiting the potential entry of 
latent effort into the Pacific cod directed fishery.
    Compared with the status quo, the proposed action selected by the 
Council would minimize adverse economic impacts on the directly 
regulated small entities. The alternatives under consideration in this 
proposed action would be expected to provide greater economic stability 
for fixed-gear LLP license holders with recent participation in the CG 
and WG Pacific cod fisheries. The alternatives would reduce the 
potential for substantial increases in fishing effort from latent LLP 
license holders, and would provide additional harvesting opportunities 
for CQEs who hold fixed-gear LLP licenses. In no case are these 
combined impacts expected to be substantial. Alternative 2 would not 
assign Pacific cod fishery endorsements to fixed-gear LLP licenses that 
have had little or no participation in Pacific cod fisheries in the CG 
and WG since 2002. Therefore, the effect of this action on those 
directly regulated entities is expected to be minimal. The effects 
would be minimal because the holders of latent LLP licenses would not 
be expected to rely on the Pacific cod resource or have substantial 
revenue given the lack of consistent participation in the fishery over 
a broad range of years. Furthermore, the addition of new Pacific cod 
endorsed fixed-gear licenses and the removal of LLP requirements for 
most vessels using jig gear may provide additional harvest 
opportunities for some catcher vessels in Federal waters. Many vessels 
currently active in State waters are catching fish assigned to the 
Federal TAC under the parallel fishery. It is not clear that these new 
Pacific cod endorsed fixed-gear licenses would substantially increase 
fishing effort. Although none of the alternatives are expected to have 
any significant economic or socioeconomic impacts, the preferred 
Alternative 2 minimizes the potential negative impacts, such as less 
control over potential fishing effort in the GOA Pacific cod fishery 
and greater risk that the fishery could be subject to overharvest that 
could arise under Alternative 1, the status quo alternative.

Projected Reporting, Recordkeeping and Other Compliance Requirements

    The proposed rule would require additional reporting, 
recordkeeping, and other compliance requirements. Specifically, CQEs 
would need to submit an application to receive fixed-gear LLP licenses 
endorsed for Pacific cod, the selection of fixed gear type by CQEs in 
the CG, a description of the methods used to assign any fixed gear LLP 
licenses received, a letter of authorization for persons using LLP 
licenses assigned to a CQE, and an annual report detailing the 
distribution and use of LLP licenses. In addition, persons who qualify 
to receive a fixed-gear endorsement for an LLP license that was used on 
a vessel that was less than 60 feet in LOA under specific conditions 
would be required to submit a vessel survey prior to receiving an 
endorsement on that LLP license if they disagree with existing LOA data 
held by NMFS. Existing recordkeeping and reporting requirements for 
registering vessels in the inshore or offshore sector, and the LLP 
appeals process would not be modified.

Duplicate, Overlapping, or Conflicting Federal Rules

    No Federal rules that might duplicate, overlap, or conflict with 
this proposed action have been identified.

Collection-of-Information

    This proposed rule contains collection-of-information requirements 
subject to the Paperwork Reduction Act (PRA) and which have been 
approved by the Office of Management and Budget (OMB) under Control 
Number 0648-0334. Public reporting burden is estimated to average four 
hours for an appeal of an initial administrative determination per 
response, including the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing

[[Page 43132]]

the collection of information. The following requirements have been 
submitted to OMB for approval: 20 hours for a CQE to apply to receive 
an LLP license and select the applicable gear type of that license if 
that CQE is operating in the CG; 40 hours for the CQE annual report; 1 
hour to submit letter of authorization for a vessel and vessel operator 
from a CQE; and 1 hour to submit a vessel length survey for LLP license 
holders who qualify for a Pacific cod endorsement for vessels less than 
60 feet in LOA under specific conditions.
    NMFS seeks public comment regarding whether this proposed 
collection-of-information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; the accuracy of the burden estimate; 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 this burden estimate, or any other aspect of this data 
collection, including suggestions for reducing the burden, to NMFS (see 
ADDRESSES) and by e-mail to [email protected], or fax to 202-
395-7285.
    Notwithstanding any other provision of the law, no person is 
required to respond to, and no person shall be subject to a penalty for 
failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB Control Number.

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: July 19, 2010.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
    For the reasons set out in the preamble, 50 CFR part 679 is 
proposed to be amended as follows:

PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA

    1. The authority citation for 50 CFR part 679 continues to read as 
follows:

    Authority:  16 U.S.C. 773 et seq.; 1540; 1801 et seq.; 3631 et 
seq.; Pub. L. 108-447

    2. In Sec.  679.4,
    a. Redesignate paragraphs (k)(2)(iii) and (k)(2)(iv) as paragraphs 
(k)(2)(iv) and (k)(2)(v); and paragraphs (k)(10) through (k)(12) as 
paragraphs (k)(11) through (k)(13);
    b. Revise paragraph (k)(3)(i), and the heading of paragraph (k)(9);
    c. Add paragraphs (k)(2)(iii) and (k)(10).
    The additions and revisions read as follows:


Sec.  679.4  Permits.

* * * * *
    (k) * * *
    (2) * * *
    (iii) A vessel may use a maximum of five jig machines, one line per 
jig machine, and a maximum of 30 hooks per line, to conduct directed 
fishing for license limitation groundfish in the GOA without a 
groundfish license;
* * * * *
    (3) * * *
    (i) Vessel MLOA--(A) General. A license may be used only on a 
vessel named on the license, a vessel that complies with the vessel 
designation and gear designation specified on the license, and a vessel 
that has an LOA less than or equal to the MLOA specified on the 
license;
    (B) Modification of license MLOA for groundfish licenses with a 
Pacific cod endorsement in the GOA. (1) A groundfish license with a 
specified MLOA less than or equal to 50 feet prior to [EFFECTIVE DATE 
OF THE FINAL RULE] that subsequently receives a Pacific cod endorsement 
in the GOA with a catcher vessel and pot gear designation as specified 
under paragraph (k)(10) of this section will be redesignated with an 
MLOA of 50 feet on the date that the Pacific cod endorsement is 
assigned to that groundfish license;
    (2) A groundfish license with a specified MLOA greater than or 
equal to 60 feet:
    (i) That was continuously assigned to a single vessel less than 60 
feet LOA from January 1, 2002, through December 8, 2008; and
    (ii) That met the landing thresholds applicable for a groundfish 
license with a specified MLOA of less than 60 feet for the specific 
gear designation(s) and regulatory area(s) applicable to that 
groundfish license as described in paragraph (k)(10), will be 
redesignated with an MLOA equal to the LOA of the vessel to which that 
groundfish license was assigned from January 1, 2002, through December 
8, 2008, based on the LOA for that vessel in NMFS' non-trawl gear 
recent participation official record on [EFFECTIVE DATE OF THE FINAL 
RULE], or as specified by a marine survey conducted by an independent 
certified marine surveyor or naval architect provided that the license 
holder provides NMFS with a marine survey conducted by an independent 
certified marine surveyor or naval architect not later than 90 days 
after [EFFECTIVE DATE OF THE FINAL RULE] that specifies the LOA of the 
vessel to which that groundfish license was assigned.
    (3) The MLOA specified on a groundfish license under paragraph 
(k)(3)(i)(B)(2) of this section may not exceed 60 feet.
* * * * *
    (9) Pacific cod endorsements in the BSAI.
* * * * *
    (10) Pacific cod endorsements in the Western and Central GOA--(i) 
General. In addition to other requirements of this part, and unless 
specifically exempted in paragraph (k)(10)(iv) of this section, a 
license holder must have a Pacific cod endorsement on his or her 
groundfish license to conduct directed fishing for Pacific cod in the 
Western Gulf of Alaska or Central Gulf of Alaska with hook-and-line 
gear, pot gear, or jig gear on a vessel using more than five jig 
machines, more than one line per machine, and more than 30 hooks per 
line. A license holder can only use the specific non-trawl gear(s) 
indicated on his or her license to conduct directed fishing for Pacific 
cod in the Western Gulf of Alaska or Central Gulf of Alaska.
    (ii) Eligibility requirements for a Pacific cod endorsement. This 
table provides eligibility requirements for Pacific cod endorsements on 
an LLP groundfish license:

[[Page 43133]]



 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    To receive a Pacific
                                                                                        Then the license    From January 1, 2002,   cod endorsement that
 If a license  holder's license has   And that license has   And the license holder       holder must        through December 8,   authorizes harvest in
              a * * *                   an MLOA of * * *      harvested Pacific cod   demonstrate that he       2008, in * * *      the directed Pacific
                                                                   with * * *             or she * * *                              cod fishery with * *
                                                                                                                                             *
--------------------------------------------------------------------------------------------------------------------------------------------------------
(A) Catcher vessel designation.....  < 60 feet.............  hook-and-line gear....  legally landed at      the Central Gulf of    hook-and-line gear in
                                                                                      least 10 mt of         Alaska.                the Central Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(B) Catcher vessel designation.....  >= 60 feet............  hook-and-line gear....  legally landed at      the Central Gulf of    hook-and-line gear in
                                                                                      least 50 mt of         Alaska.                the Central Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(C) Catcher vessel designation.....  < 60 feet.............  hook-and-line gear....  legally landed at      the Western Gulf of    hook-and-line gear in
                                                                                      least 10 mt of         Alaska.                the Western Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(D) Catcher vessel designation.....  >= 60 feet............  hook-and-line gear....  legally landed at      the Western Gulf of    hook-and-line gear in
                                                                                      least 50 mt of         Alaska.                the Western Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(E) Catcher vessel designation.....  < 60 feet.............  pot gear..............  legally landed at      the Central Gulf of    pot gear in the
                                                                                      least 10 mt of         Alaska.                Central Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(F) Catcher vessel designation.....  >= 60 feet............  pot gear..............  legally landed at      the Central Gulf of    pot gear in the
                                                                                      least 50 mt of         Alaska.                Central Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(G) Catcher vessel designation.....  < 60 feet.............  pot gear..............  legally landed at      the Western Gulf of    pot gear in the
                                                                                      least 10 mt of         Alaska.                Western Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(H) Catcher vessel designation.....  >= 60 feet............  pot gear..............  legally landed at      the Western Gulf of    pot gear in the
                                                                                      least 50 mt of         Alaska.                Western Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(I) Catcher vessel designation.....  any...................  jig gear..............  at least one legal     the Central Gulf of    jig gear in the
                                                                                      landing of Pacific     Alaska.                Central Gulf of
                                                                                      cod in the directed                           Alaska.
                                                                                      Pacific cod fishery.
(J) Catcher vessel designation.....  any...................  jig gear..............  at least one legal     the Western Gulf of    jig gear in the
                                                                                      landing of Pacific     Alaska.                Western Gulf of
                                                                                      cod in the directed                           Alaska.
                                                                                      Pacific cod fishery.
(K) Catcher/Processor vessel         any...................  hook-and-line gear....  legally landed at      the Central Gulf of    hook-and-line gear in
 designation.                                                                         least 50 mt of         Alaska.                the Central Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(L) Catcher/Processor vessel         any...................  hook-and-line gear....  legally landed at      the Western Gulf of    hook-and-line gear in
 designation.                                                                         least 50 mt of         Alaska.                the Western Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(M) Catcher/Processor vessel         any...................  pot gear..............  legally landed at      the Central Gulf of    pot gear in the
 designation.                                                                         least 50 mt of         Alaska.                Central Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(N) Catcher/Processor vessel         any...................  pot gear..............  legally landed at      the Central Gulf of    pot gear in the
 designation.                                                                         least 50 mt of         Alaska.                Central Gulf of
                                                                                      Pacific cod in the                            Alaska.
                                                                                      directed Pacific cod
                                                                                      fishery.
(O) Catcher/Processor vessel         any...................  jig gear..............  at least one legal     the Central Gulf of    jig gear in the
 designation.                                                                         landing in the         Alaska.                Central Gulf of
                                                                                      directed Pacific cod                          Alaska.
                                                                                      fishery.
(P) Catcher/Processor vessel         any...................  jig gear..............  at least one legal     the Western Gulf of    jig gear in the
 designation.                                                                         landing in the         Alaska.                Western Gulf of
                                                                                      directed Pacific cod                          Alaska.
                                                                                      fishery.
--------------------------------------------------------------------------------------------------------------------------------------------------------

     (iii) Explanations for Pacific cod endorsements. (A) All 
eligibility amounts in the table at paragraph (k)(10)(ii) of this 
section will be determined based on round weight equivalents.
    (B) NMFS shall assign a legal landing to a groundfish license in an 
area based only on information contained in the official record 
described in paragraph (k)(10)(v) of this section.
    (C) Notwithstanding the eligibility amount in the table at 
paragraph (k)(10)(ii) of this section, NMFS shall assign a non-trawl 
Pacific cod endorsement with a catcher/processor and a hook-and-line 
gear designation in the regulatory areas specified to those groundfish 
licenses listed in Table 49 to part 679;
    (D) If a groundfish license meets the criteria described in 
paragraph (k)(3)(i)(B)(2) of this section and NMFS has redesignated the 
MLOA of that groundfish license based on those criteria, then NMFS may 
assign a non-trawl Pacific cod endorsement with the specific gear 
designation(s) and regulatory area(s) applicable to the redesignated 
MLOA of that groundfish license based on the eligibility criteria 
established in paragraph (k)(10)(ii) of this section; and
    (E) NMFS may issue groundfish licenses with non-trawl Pacific cod 
endorsements to CQEs as specified in paragraph (k)(10)(vi) of this 
section.
    (iv) Exemptions to Pacific cod endorsements. Any vessel exempted 
from the License Limitation Program at paragraph (k)(2) of this 
section.
    (v) Non-trawl gear recent participation official record. (A) The 
official record will contain all information used by the Regional

[[Page 43134]]

Administrator to determine the following:
    (1) The number of legal landings and amount of legal landings 
assigned to a groundfish license for purposes of the non-trawl gear 
designation participation requirements described in paragraph 
(k)(10)(ii) of this section;
    (2) All other relevant information necessary to administer the 
requirements described in paragraphs (k)(3)(i)(B) and (k)(10) of this 
section.
    (B) The official record is presumed to be correct. A groundfish 
license holder has the burden to prove otherwise.
    (C) Only legal landings as defined in Sec.  679.2 and documented on 
State of Alaska fish tickets or NMFS weekly production reports will be 
used to assign legal landings to a groundfish license.
    (D) If more than one groundfish license holder is claiming the same 
legal landing because their groundfish license designated the vessel at 
the time that the legal landing was made, then each groundfish license 
for which the legal landing is being claimed will be credited with the 
legal landing.
    (E) The Regional Administrator will specify by letter a 30-day 
evidentiary period during which an applicant may provide additional 
information or evidence to amend or challenge the information in the 
official record. A person will be limited to one 30-day evidentiary 
period. Additional information or evidence received after the 30-day 
evidentiary period specified in the letter has expired will not be 
considered for purposes of the initial administrative determination 
(IAD).
    (F) The Regional Administrator will prepare and send an IAD to the 
applicant following the expiration of the 30-day evidentiary period if 
the Regional Administrator determines that the information or evidence 
provided by the person fails to support the person's claims and is 
insufficient to rebut the presumption that the official record is 
correct, or if the additional information, evidence, or revised 
application is not provided within the time period specified in the 
letter that notifies the applicant of his or her 30-day evidentiary 
period. The IAD will indicate the deficiencies with the information, or 
with the evidence submitted in support of the information. The IAD will 
also indicate which claims cannot be approved based on the available 
information or evidence. A person who receives an IAD may appeal 
pursuant to Sec.  679.43. A person who avails himself or herself of the 
opportunity to appeal an IAD will receive a non-transferable license 
pending the final resolution of that appeal, notwithstanding the 
eligibility of that applicant for some claims based on consistent 
information in the official record.
    (vi) Issuance of non-trawl groundfish licenses to CQEs. (A) Each 
CQE that has been approved by the Regional Administrator under the 
requirements of Sec.  679.41(l)(3) to represent a community listed in 
Table 50 to part 679 may apply to receive groundfish licenses on behalf 
of the communities listed in Table 50 to part 679 that CQE is 
designated to represent. In order to receive a groundfish license, a 
CQE must submit a complete application for a groundfish license to the 
Regional Administrator, NMFS, P.O. Box 21668, Juneau, AK 99802. A CQE 
may not apply for, and may not receive, more than the maximum amount of 
groundfish licenses designated in the regulatory area specified for a 
community listed in Table 50 to part 679.
    (B) The application for a CQE to receive a groundfish license must 
include:
    (1) Name of contact person(s) for the CQE, NMFS person number, 
permanent business mailing addresses, business phone, business email, 
and business fax.
    (2) A statement describing the procedures that will be used to 
determine the distribution of LLP licenses to residents of the 
community represented by that CQE;
    (3) Procedures used to solicit requests from residents to be 
assigned an LLP license;
    (4) Criteria used to determine the distribution of the use of LLP 
licenses among qualified community residents and the relative weighting 
of those criteria;
    (5) The gear designation of groundfish license for which the CQE is 
applying provided that the community for which the CQE is applying is 
eligible to receive a groundfish license designated for the Central 
Gulf of Alaska and the application to receive a groundfish license has 
been received by NMFS not later than six months after [EFFECTIVE DATE 
OF THE FINAL RULE].
    (C) A groundfish license approved for issuance to a CQE by the 
Regional Administrator for a community listed in Table 50 to part 679:
    (1) May not be transferred to any person from the CQE;
    (2) Will have only the regional designation specified for that 
community as listed in Table 50 to part 679;
    (3) Will have an MLOA of 60 feet specified on the license;
    (4) Will have only a catcher vessel designation;
    (5) Will receive only a non-trawl gear endorsement;
    (6) Will be assigned a Pacific cod endorsement with a non-trawl 
gear designation as specified in paragraph (k)(10)(vi)(D) of this 
section.
    (7) May not be assigned to any vessel other than the vessel 
specified for that groundfish license in the annual CQE authorization 
letter; and
    (8) May not be assigned for use by any person(s) other than the 
person(s) specified for that groundfish license in the annual CQE 
authorization letter, or any subsequent amendment to that authorization 
letter that is made by the CQE provided that NMFS receives that 
amendment prior to that person using that groundfish license aboard a 
vessel.
    (D) The CQE must provide a copy of the annual CQE authorization 
letter, and any subsequent amendment to that authorization letter that 
is made by the CQE to the vessel operator prior to the person(s) 
designated in the authorization letter using that groundfish license 
aboard a vessel. The vessel operator must maintain a copy of the annual 
CQE authorization letter, and any subsequent amendment to that 
authorization letter that is made by the CQE onboard the vessel when 
that vessel is directed fishing for Pacific cod under the authority of 
that groundfish license.
    (E) The CQE must attest in the annual CQE authorization letter, or 
any subsequent amendment to that authorization letter, that the 
person(s) using a groundfish license issued to a CQE:
    (1) Is a citizen of the United States;
    (2) Has maintained a domicile in a CQE community in the Central GOA 
or Western GOA eligible to receive an LLP license endorsed for Pacific 
cod for the 12 consecutive months immediately preceding the time when 
the assertion of residence is made; and
    (3) Is not claiming residency in another community, state, 
territory, or country, except that residents of the Village of Seldovia 
shall be considered to be eligible community residents of the City of 
Seldovia for the purposes of eligibility to serve as an authorized 
person.
    (F) Non-trawl Pacific cod gear endorsements on groundfish licenses 
approved for issuance to CQEs by the Regional Administrator shall have 
the following gear designations:
    (1) NMFS will issue only pot gear Pacific cod endorsements for 
groundfish licenses with a Western Gulf of Alaska designation to CQEs 
on behalf of a community listed in Table 50 to part 679.

[[Page 43135]]

    (2) NMFS will issue either a pot gear or a hook-and-line gear 
Pacific cod endorsement for a groundfish license with a Central Gulf of 
Alaska designation to CQEs on behalf of a community listed in Table 50 
to part 679 based on the application for a groundfish license as 
described in paragraph (k)(10)(vi)(B) of this section provided that 
application is received by NMFS not later than six months after 
[EFFECTIVE DATE OF THE FINAL RULE]. If an application to receive a 
groundfish license with a Central Gulf of Alaska designation on behalf 
of a community listed in Table 50 to part 679 is received later than 
six months after [EFFECTIVE DATE OF THE FINAL RULE], NMFS will issue an 
equal number of pot gear and hook-and-line gear Pacific cod 
endorsements for a groundfish license issued to the CQE on behalf of a 
community listed in Table 50 to part 679. In cases where the total 
number of groundfish licenses issued on behalf of a community listed in 
Table 50 to part 679 is not even, NMFS will issue one more groundfish 
license with a pot gear Pacific cod endorsement than the number of 
groundfish licenses with a hook-and-line gear Pacific cod endorsement.
    (G) By January 31, the CQE shall submit a complete annual report on 
use of groundfish licenses issued to the CQE for the prior fishing year 
for each community represented by the CQE to the Regional 
Administrator, NMFS, P.O. Box 21668, Juneau, AK 99802, and to the 
governing body of each community represented by the CQE as identified 
in Table 21 to this part, and to the governing body of each community 
represented by the CQE as identified in Table 21 to this part. A 
complete annual report contains the following information:
    (1) The number of community residents requesting a groundfish 
license;
    (2) A description of the distribution of groundfish licenses among 
community residents;
    (3) Vessels assigned to use the groundfish licenses;
    (4) The number and residency of crew employed on a vessel using the 
LLP license; and
    (5) Any payments made to CQEs for use of the LLP licenses. 
Consistent with the timeline required for submission of the CQE annual 
report for the use of halibut and sablefish IFQ, these annual reports 
would be due by January 31 for the prior fishing year for each 
community represented by the CQE.
* * * * *
    3. In Sec.  679.7,
    a. Paragraphs (a)(7)(vii) through (a)(7)(ix) are added;
    b. Paragraph (i)(1)(i) is revised;
    c. Paragraph (i)(1)(v) is added; and
    d. Paragraph (i)(10) is added.
    The additions and revisions read as follows:


Sec.  679.7  Prohibitions.

* * * * *
    (a) * * *
    (7) * * *
    (vii) Operate a vessel in the ``inshore component of the GOA'' as 
defined in Sec.  679.2 during a calendar year if that vessel is used to 
directed fish for Pacific cod under the authority of a groundfish 
license with a Pacific cod endorsement in the regulatory area listed in 
Table 49 to part 679.
    (viii) Use a vessel operating under the authority of a groundfish 
license with a Pacific cod endorsement to directed fish for Pacific cod 
in the GOA apportioned to the inshore component of the GOA as specified 
under Sec.  679.20(a)(6) if that vessel has directed fished for Pacific 
cod in the GOA apportioned to the offshore component of the GOA during 
that calendar year.
    (ix) Use a vessel operating under the authority of a groundfish 
license with a Pacific cod endorsement to directed fish for Pacific cod 
in the GOA apportioned to the offshore component of the GOA as 
specified under Sec.  679.20(a)(6) if that vessel has directed fished 
for Pacific cod in the GOA apportioned to the inshore component of the 
GOA during that calendar year.
* * * * *
    (i) * * *
    (1) * * *
    (i) Hold more than 10 groundfish licenses in the name of that 
person at any time, except as provided in paragraphs (i)(1)(iii) and 
(i)(1)(v) of this section;
* * * * *
    (v) The CQE representing the City of Sand Point may not hold more 
than 14 groundfish licenses.
* * * * *
    (10) Operate a vessel under the authority of an LLP license issued 
to a CQE to directed fish for Pacific cod in the GOA if the person 
specified for that groundfish license in the annual CQE authorization 
letter, or any subsequent amendment to that authorization letter, is 
not onboard the vessel.
* * * * *
    4. Tables 49 and 50 to part 679 are added to read as follows:

 Table 49 to Part 679--Groundfish Licenses Qualifying for Hook-and-Line
                 Catcher/Processor Endorsement Exemption
------------------------------------------------------------------------
                                         Shall receive a Pacific cod
                                    endorsement with a catcher/processor
        Groundfish license           and a hook-and-line designation in
                                      the following regulatory area(s)
------------------------------------------------------------------------
LLG 1400..........................  Central Gulf of Alaska.
LLG 1713..........................  Central Gulf of Alaska.
LLG 1785..........................  Central Gulf of Alaska.
LLG 1916..........................  Central Gulf of Alaska.
LLG 2112..........................  Central Gulf of Alaska and Western
                                     Gulf of Alaska.
LLG 2783..........................  Central Gulf of Alaska.
LLG 2892..........................  Central Gulf of Alaska.
LLG 2958..........................  Central Gulf of Alaska.
LLG 3616..........................  Central Gulf of Alaska.
LLG 3617..........................  Central Gulf of Alaska.
LLG 3676..........................  Central Gulf of Alaska.
LLG 4823..........................  Central Gulf of Alaska.
LLG 2081..........................  Western Gulf of Alaska.
LLG 3090..........................  Western Gulf of Alaska.
------------------------------------------------------------------------


[[Page 43136]]


 Table 50 to Part 679--Maximum Number of Groundfish Licenses and the Regulatory Area Specification of Groundfish
                   Licenses That May Be Granted to CQEs Representing Specific GOA Communities
----------------------------------------------------------------------------------------------------------------
 Central GOA Pacific cod endorsed non-trawl groundfish license     Western GOA Pacific cod endorsed non-trawl
---------------------------------------------------------------                groundfish license
                                                               -------------------------------------------------
                                             Maximum number of                                 Maximum number of
                 Community                      groundfish                                        groundfish
                                             licenses that may            Community            licenses that may
                                                be granted                                        be granted
----------------------------------------------------------------------------------------------------------------
Akhiok....................................                   2  Ivanof Bay..................                   2
Chenega Bay...............................                   2  King Cove...................                   9
Chignik...................................                   3  Perryville..................                   2
Chignik Lagoon............................                   4  Sand Point..................                  14
Chignik Lake..............................                   2
Halibut Cove..............................                   2
Karluk....................................                   2
Larsen Bay................................                   2
Nanwalek..................................                   2
Old Harbor................................                   5
Ouzinkie..................................                   9
Port Graham...............................                   2
Port Lions................................                   6
Seldovia..................................                   8
Tyonek....................................                   2
Tatitlek..................................                   2
Yakutat...................................                   3
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2010-18143 Filed 7-22-10; 8:45 am]
BILLING CODE 3510-22-P