[Federal Register Volume 76, Number 82 (Thursday, April 28, 2011)]
[Rules and Regulations]
[Pages 23728-23731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10326]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 101124579-1236-02]
RIN 0648-BA51


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Snapper-Grouper Fishery Off the Southern Atlantic States; Red Snapper 
Management Measures

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

ACTION: Final rule.

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SUMMARY: NMFS issues this final rule to implement a regulatory 
amendment (Regulatory Amendment 10) to the Fishery Management Plan for 
the Snapper-Grouper Fishery of the South Atlantic Region (FMP), as 
prepared by the South Atlantic Fishery Management Council (Council). 
This final rule removes the snapper-grouper area closure implemented 
through Amendment 17A to the FMP. The intended effect of this final 
rule is to minimize socio-economic impacts to snapper-grouper 
fishermen, without subjecting the red snapper resource to overfishing.

DATES: This final rule is effective May 31, 2011.

ADDRESSES: Copies of the regulatory amendment, which includes an 
environmental assessment and a regulatory impact review, may be 
obtained from the South Atlantic Fishery Management Council, 4055 Faber 
Place Drive, Suite 201, North Charleston, SC 29405; telephone 843-571-
4366; fax 843-769-4520; e-mail [email protected]; or may be downloaded 
from the Council's Web site at http://www.safmc.net/.

FOR FURTHER INFORMATION CONTACT: Rick DeVictor, 727-824-5305.

[[Page 23729]]


SUPPLEMENTARY INFORMATION: The snapper-grouper fishery of the South 
Atlantic is managed under the FMP. The FMP was prepared by the Council 
and is implemented through regulations at 50 CFR part 622 under the 
authority of the Magnuson-Stevens Fishery Conservation and Management 
Act (Magnuson-Stevens Act).
    On February 18, 2011, NMFS published a proposed rule in the Federal 
Register for Regulatory Amendment 10 and requested public comment (76 
FR 9530). The proposed rule and Regulatory Amendment 10 explained the 
rationale for the action contained in this final rule. A summary of the 
rationale and the action implemented by this final rule is provided 
below.
    In the South Atlantic, the red snapper stock is currently 
overfished and undergoing overfishing. The stock status was determined 
through a Southeast Data Assessment and Review (SEDAR) benchmark stock 
assessment for red snapper, SEDAR 15, which was completed in February 
2008. Based on this stock assessment, Amendment 17A to the FMP was 
developed to end the overfishing of red snapper and rebuild the stock. 
The final rule to implement Amendment 17A was published in the Federal 
Register on December 9, 2010 (75 FR 76874). The final rule to implement 
Amendment 17A included an area closure for South Atlantic snapper-
grouper of 4,827 square miles (7,768 square km), consisting of the area 
encompassed by commercial logbook grids (cells) 2880, 2980, and 3080 
for depths from 98 ft (30 m) to 240 ft (73 m), in order to minimize the 
bycatch of red snapper. Harvest and possession of snapper-grouper 
species would be prohibited in this area which is off the coasts of 
southern Georgia and northeast Florida, except when fishing with black 
sea bass pot gear or spearfishing gear for species other than red 
snapper.
    Through the SEDAR 24 benchmark stock assessment, updated 
information on the status of the red snapper stock became available in 
late October 2010. The SEDAR 24 assessment determined, similar to the 
SEDAR 15 benchmark, that the red snapper stock is overfished and 
undergoing overfishing. However, the rate of overfishing found in SEDAR 
24 is less than the rate of overfishing found in the previous SEDAR 15 
stock assessment.
    Given the information in the new stock assessment, an emergency 
rule to delay the effective date of the snapper-grouper area closure 
was published on December 9, 2010 (75 FR 76890). The emergency rule 
delayed the effective date of the area closure from January 3, 2011, 
until June 1, 2011, with a possible 186-day extension, unless 
superseded by subsequent rulemaking. The delayed effective date 
provided the Council time to respond to the new scientific information 
from the SEDAR 24 benchmark stock assessment.
    When recent reductions in fishing effort are considered, the red 
snapper moratorium, implemented through Amendment 17A to the FMP, is 
projected to end overfishing and rebuild the stock without the 
additional implementation of the snapper-grouper area closure. 
Therefore, the proposed action in Regulatory Amendment 10 to remove the 
snapper-grouper area closure approved in Amendment 17A to the FMP seeks 
to prevent significant direct economic loss to snapper-grouper 
fishermen without subjecting the red snapper resource to overfishing.

Comments and Responses

    During the comment period on the proposed rule and Regulatory 
Amendment 10, NMFS received 21 submissions from individuals and fishing 
associations on the proposed rule. NMFS received 17 comments that 
expressed general support of the action in Regulatory Amendment 10. The 
additional four comments are not addressed in this final rule because 
they addressed issues outside the scope of the action contained in the 
proposed rule and Regulatory Amendment 10. Specifically, they asserted 
that red snapper release mortality estimates, overall abundance, data 
sources, and recreational bag limits should be considered by the 
Council.

Classification

    The NMFS Regional Administrator, Southeast Region, has determined 
that Regulatory Amendment 10 is necessary for the management of South 
Atlantic snapper-grouper and is consistent with the Magnuson-Stevens 
Act and other applicable laws.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    A final regulatory flexibility analysis (FRFA) was prepared. The 
FRFA incorporates the initial regulatory flexibility analysis (IRFA), a 
summary of the significant economic issues raised by public comments, 
NMFS' responses to those comments, and a summary of the analyses 
completed to support the action. The FRFA follows.
    No public comments specific to the IRFA or concerning the economic 
impacts of the rule more generally were received and therefore no 
comments are addressed in this FRFA. No changes in the final rule were 
made in response to public comments.
    NMFS agrees that the Council's choice of preferred alternative 
would best achieve the Council's objectives while minimizing, to the 
extent practicable, the adverse effects on fishers, support industries, 
and associated communities. The preamble to the final rule provides a 
statement and need for and objectives of this rule, and it is not 
repeated here.
    The Magnuson-Stevens Act provides the statutory basis for the final 
rule. No duplicative, overlapping, or conflicting Federal rules have 
been identified. The final rule would not establish any new reporting, 
record-keeping, or other compliance requirements.
    This final rule is expected to directly affect commercial 
harvesting and for-hire fishing operations. The Small Business 
Administration has established size criteria for all major industry 
sectors in the U.S. including fish harvesters and for-hire operations. 
A business involved in fish harvesting is classified as a small 
business if it is independently owned and operated, is not dominant in 
its field of operation (including its affiliates), and has combined 
annual receipts not in excess of $4.0 million (NAICS code 114111, 
finfish fishing) for all its affiliated operations worldwide. For for-
hire vessels, the other qualifiers apply and the annual receipts 
threshold is $7.0 million (NAICS code 713990, recreational industries).
    From 2007-2009, an average of 895 vessels-per-year had valid 
permits to operate in the commercial snapper-grouper fishery. Of these 
vessels, 751 held transferable permits and 144 held non-transferable 
permits. On average, 797 vessels landed snapper-grouper species, 
generating dockside revenues of approximately $14.514 million (2008 
dollars). Each vessel, therefore, generated an average of approximately 
$18,000 annually in gross revenues from snapper-grouper. Gross dockside 
revenues by state are distributed as follows: $4.054 million in North 
Carolina, $2.563 million in South Carolina, $1.738 million in Georgia/
Northeast Florida, $3.461 million in central and southeast Florida, and 
$2.695 million in the Florida Keys. Vessels that operate in the 
snapper-grouper fishery may also operate in other fisheries; the 
revenues of which cannot be determined with available data and are not 
reflected in these totals.
    Based on revenue information, all commercial vessels affected by 
the final rule can be considered small entities.
    From 2007-2009, an average of 1,797 vessels had valid permits to 
operate in

[[Page 23730]]

the snapper-grouper for-hire sector, of which 82 are estimated to have 
operated as headboats. The for-hire fleet is comprised of charterboats, 
which charge a fee on a vessel basis, and headboats, which charge a fee 
on an individual angler (head) basis. The charterboat annual average 
gross revenue is estimated to range from approximately $62,000-$84,000 
for Florida vessels, $73,000-$89,000 for North Carolina vessels, 
$68,000-$83,000 for Georgia vessels, and $32,000-$39,000 for South 
Carolina vessels. For headboats, the corresponding estimates are 
$170,000-$362,000 for Florida vessels, and $149,000-$317,000 for 
vessels in the other states.
    Based on these average revenue figures, all for-hire operations 
that would be affected by the final rule can be considered small 
entities.
    Some fleet activity, i.e., multiple vessels owned by a single 
entity, may exist in both the commercial and for-hire snapper-grouper 
sectors but its extent is unknown, and all vessels are treated as 
independent entities in this analysis.
    The final rule is expected to directly affect all Federally 
permitted commercial vessels that operate in the South Atlantic 
snapper-grouper fishery as well as for-hire vessels operating out of 
northeast Florida and Georgia. All directly affected entities have been 
determined, for the purpose of this analysis, to be small entities. 
Therefore, it is determined that the final rule will affect a 
substantial number of small entities.
    Because all entities that are expected to be affected by the final 
rule are considered small entities, the issue of disproportional 
effects on small versus large entities does not arise in the present 
case.
    The economic analysis for the final rule estimated the changes in 
net operating revenues to commercial and for-hire vessels. These 
changes were estimated assuming the area closure provision of Amendment 
17A commenced on June 1, 2011, which differs from the proposed rule 
which assumed a January 1, 2011, implementation of the area closure. 
For the current analysis, net operating revenue is equated to profit.
    The final rule to eliminate the area closure that was implemented 
in Amendment 17A is estimated to have a non-uniform change in the 
short-term profits of commercial vessels operating in the South 
Atlantic snapper-grouper fishery. Annual profits would increase 
approximately by $261,000 for vessels in northeast Florida and Georgia 
and by $84,000 for vessels in southeast Florida. Conversely, annual 
profits would decrease by approximately $187,000 for vessels in North 
Carolina, by $99,000 in South Carolina, and by $2,000 for vessels in 
the Florida Keys. The net effect of the action on commercial vessels as 
a whole would be an average increase in annual profits of approximately 
$57,000. Vessels fishing with vertical-line gear are most affected by 
the action.
    The differential effects of the final rule on commercial vessels in 
various geographic areas in the South Atlantic are mainly determined by 
the manner in which quotas for certain snapper-grouper species, such as 
gag, red grouper, black grouper, and vermilion snapper, would be met. 
Although the rule would open up very specific areas off the coasts of 
Georgia and northeast Florida, commercial vessels operating in other 
areas would also be affected by possible quota closures of some 
snapper-grouper species as their quotas are reached. Eliminating the 
area closure from Amendment 17A would allow commercial vessels from 
southeast Florida, northeast Florida, and Georgia to harvest more 
snapper-grouper species, such as vermilion snapper, gag, and red 
grouper, and this would tend to increase their profits. Such a harvest 
increase, however, would lead to reaching certain snapper-grouper 
quotas earlier in the fishing year, resulting in lower harvest by 
vessels in North Carolina, South Carolina, and the Florida Keys. These 
vessels would then experience reductions in their profits. The more 
restrictive quotas are those in place for vermilion snapper and gag. 
The quota for gag is especially critical, because it also serves as a 
trigger mechanism for closing the harvest of all shallow-water grouper 
when its quota is reached.
    For-hire vessels operating in northeast Florida and Georgia are 
expected to be the only for-hire vessels affected by the final rule. 
This is based on the extent of for-hire vessel fishing activities in 
the subject three statistical areas implemented for closure under 
Amendment 17A. As a result of the action, annual profits are expected 
to increase by $227,000 for charterboats and $815,000 for headboats.
    Eleven alternatives, including the preferred alternative 
implemented through this final rule, were considered for alternatives 
to the area closure of Amendment 17A. The first alternative is the no 
action alternative. The no action alternative would retain the area 
closure of Amendment 17A. Among the alternatives, this would result in 
the largest negative economic effects on small entities.
    The second alternative is a May-October closure of cells 2880 and 
2980 in depths from 98 ft (30 m) to 240 ft (73 m). This alternative 
would result in lower profit increases for both the commercial and for-
hire vessels than the action in this final rule.
    The third alternative is a May-August closure of cells 2880, 2980, 
and 3080 in depths from 98 ft (30 m) to 240 ft (73 m). This alternative 
would result in a lower profit increase to the for-hire vessels and a 
slightly higher profit increase to commercial vessels. The overall net 
effect of this alternative would be a lower profit increase than that 
implemented through this action.
    The fourth alternative is a July-December closure of cells 2880, 
2980, and 3080 in depths from 98 ft (30 m) to 240 ft (73 m). This 
alternative would result in lower profit increases to the for-hire and 
commercial vessels.
    The fifth alternative for Regulatory Amendment 10 is a May-December 
closure of cells 2880, 2980, and 3080 in depths from 98 ft (30 m) to 
240 ft (73 m). This alternative would result in lower profit increases 
to the for-hire and commercial vessels.
    The sixth alternative is a May-December closure of cells 2880, 
2980, and 3080 in depths from 66 ft (20 m) to 240 ft (73 m) for the 
first year and a May-October closure of cells 2880 and 2980 in depths 
from 98 ft (30 m) to 240 ft (73 m) for the second and consecutive 
years. This alternative would result in lower profit increases to the 
for-hire and commercial vessels.
    The seventh alternative is a May-October closure of cells 2880 and 
2980 in depths from 98 ft (30 m) to 240 ft (73 m) for the first year 
and a June-July closure of cell 2980 in depths from 98 ft (30 m) to 240 
ft (73 m) for the second and consecutive years. This alternative would 
result in lower profit increases to the for-hire and commercial 
vessels.
    The eighth alternative is a May-October closure of cells 2880 and 
2980 in depths from 98 ft (30 m) to 240 ft (73 m) for the first year 
and a July closure of cells 2880 and 2980 in depths from 98 ft (30 m) 
to 240 ft (73 m) for the second and consecutive years. This alternative 
would result in lower profit increases to the for-hire and commercial 
vessels.
    The ninth alternative is a July-December closure of cells 2880, 
2980, and 3080 in depths from 98 ft (30 m) to 240 ft (73 m) for the 
first year and a January-April closure of cells 2880 and 2980 in depths 
from 98 ft (30 m) to 240 ft (73 m) for the second and consecutive 
years. This alternative would result in lower profit increases to the 
for-hire and commercial vessels.

[[Page 23731]]

    The tenth alternative is a May-December closure of cells 2880, 
2980, and 3080 in depths from 98 ft (30 m) to 240 ft (73 m) for the 
first year and a January-April closure of cells 2880 and 2980 in depths 
from 98 ft (30 m) to 240 ft (73 m) for the second and consecutive 
years. This alternative would result in lower profit increases to the 
for-hire and commercial vessels.
    Section 212 of the Small Business Regulatory Enforcement Fairness 
Act of 1996 states that, for each rule or group of related rules for 
which an agency is required to prepare a FRFA, the agency shall publish 
one or more guides to assist small entities in complying with the rule, 
and shall designate such publications as small entity compliance 
guides. As part of the rulemaking process, NMFS prepared a fishery 
bulletin, which also serves as a small entity compliance guide. The 
fishery bulletin will be sent to all vessel permit holders for the 
South Atlantic snapper-grouper fishery as well as other interested 
parties.

List of Subjects in 50 CFR Part 622

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

    Dated: April 25, 2011.
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 622 is amended 
as follows:

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

0
1. The authority citation for part 622 continues to read as follows:

    Authority:  16 U.S.C. 1801 et seq.


Sec.  622.35  [Amended]

0
2. In Sec.  622.35, the suspension on paragraph (l) is lifted and 
paragraph (l) is removed and reserved.

[FR Doc. 2011-10326 Filed 4-27-11; 8:45 am]
BILLING CODE 3510-22-P