[Federal Register Volume 76, Number 231 (Thursday, December 1, 2011)]
[Rules and Regulations]
[Pages 74725-74747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-30734]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 660

[Docket No. 110616336-1627-02]
RIN 0648-BB13


Fisheries Off West Coast States; Pacific Coast Groundfish Fishery 
Management Plan; Trawl Rationalization Program; Program Improvement and 
Enhancement; Amendment 21-1

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

ACTION: Final rule.

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SUMMARY: This action implements revisions to the Pacific coast 
groundfish trawl rationalization program (program), a catch share 
program, and includes regulations that affect all commercial sectors 
(limited entry trawl, limited entry fixed gear, and open access) 
managed under the Pacific Coast Groundfish Fishery Management Plan 
(FMP). This action includes regulatory amendments to further implement 
Amendments 20 and 21 to the FMP and an FMP amendment to further revise 
Amendment 21 (called Amendment 21-1). This action includes, but is not 
limited to: Revisions to the Pacific halibut trawl bycatch mortality 
limit; clarification that Amendment 21 supersedes limited entry/open 
access allocations for certain groundfish species; revisions to the 
observer coverage requirement while a vessel is in port and before the 
offload is complete; revisions to the electronic fish ticket reporting 
requirements; revisions to the first receiver site license requirement; 
further clarification on moving between limited entry and open access 
fisheries; a process for end-of-the-year vessel account reconciliation; 
and an exemption from processing at sea for qualified participants in 
the Shorebased Individual Fishing Quota (IFQ) Program.

DATES: This rule is effective January 1, 2012.

ADDRESSES: Background information and documents, including Amendment 
21-1 and the Environmental Assessment (EA) for this action, are 
available at the Pacific Fishery Management Council's Web site at 
http://www.pcouncil.org/. NMFS prepared a Final Regulatory Flexibility 
Analysis (FRFA), which is summarized in the Classification section of 
this final rule. Copies of the FRFA and the Small Entity Compliance 
Guide are available from William W. Stelle, Jr., Regional 
Administrator, Northwest Region, NMFS, 7600 Sand Point Way, NE, 
Seattle, WA 98115-0070; or by phone at (206) 526-6150. Copies of the 
Small Entity Compliance Guide are also available on the Northwest 
Regional Office Web site at http://www.nwr.noaa.gov/.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
final rule may be submitted to William W. Stelle, Jr., Regional 
Administrator, Northwest Region, NMFS, 7600 Sand Point Way, NE, 
Seattle, WA 98115-0070, and to OMB by email to [email protected], or fax to (202) 395-7285.

FOR FURTHER INFORMATION CONTACT: Jamie Goen, (206) 526-4656; (fax) 
(206) 526-6736; [email protected].

SUPPLEMENTARY INFORMATION:

Background

    In January 2011, NMFS implemented a trawl rationalization program, 
a catch share program, for the Pacific coast groundfish fishery's trawl 
fleet. The

[[Page 74726]]

program was adopted through Amendment 20 to the FMP and consists of an 
IFQ program for the shorebased trawl fleet (including whiting and non-
whiting fisheries); and cooperative (coop) programs for the at-sea 
mothership (MS) and catcher/processor (C/P) trawl fleets (whiting 
only). Allocations to the limited entry trawl fleet for certain species 
were developed through a parallel process with Amendment 21 to the FMP.
    On May 12, 2010 (75 FR 26702), NMFS published a notice of 
availability of Amendments 20 and 21, and--consistent with requirements 
of the Magnuson-Stevens Fishery Conservation and Management Act (MSA)--
made its decision to partially approve the amendments on August 9, 
2010. Because of the complexity of Amendments 20 and 21, NMFS 
implemented them through multiple rulemakings. Over 2010, NMFS 
published three rulemakings related to the trawl rationalization 
program. The first was a final rule to collect ownership information 
from all potential participants in the program and to notify them of 
the databases that would be used for initial issuance and the date by 
which to make any changes to those databases (75 FR 4684, January 29, 
2010). The second was a final rule to restructure the Pacific coast 
groundfish regulations, establish the allocations set forth under 
Amendment 21, and establish procedures for the initial issuance of 
permits, endorsements, quota share, and catch history assignments under 
the IFQ and coop programs (75 FR 60868, October 1, 2010; correction 
published 75 FR 67032, November 1, 2010). The third was a final rule to 
establish several of the program components required for implementation 
of the rationalized trawl fishery in January 2011, including IFQ gear 
switching provisions, details of observer requirements and first 
receiver catch monitor programs, first receiver site licenses, 
equipment requirements, catch weighing requirements, retention 
requirements in the Shorebased IFQ Program, quota share (QS) accounts, 
vessel accounts for use of quota pounds, requirements for coop permits 
and coop agreements, further tracking and monitoring components, and 
economic data collection requirements (75 FR 78344, December 15, 2010).
    The regulations implementing the program became effective January 
1, 2011; however, necessary tracking systems to make the program 
operational did not become active until January 11, 2011, the date 
fishing began under the new program. Since that time, the Pacific 
Fishery Management Council (Council) and NMFS have been addressing 
implementation issues as they arise, some of which are the subject of 
this rule. This rule also includes items that are further revisions and 
refinements to the program to further implement Amendments 20 and 21, 
and corrects errors or old regulatory language that need to be 
corrected, revised, or made consistent with other sections of the 
regulations. Additionally, this rule includes some trailing actions for 
the program that the Council took final action at its June 2011 
meeting. The trailing actions include an FMP amendment (Amendment 21-1) 
stating that Amendment 21 trawl/non-trawl allocations supersede the 
limited entry and open access allocations originally established in 
Amendment 6 for species listed in Amendment 21; an FMP amendment 
(Amendment 21-1) to revise the calculation of the Pacific halibut trawl 
bycatch mortality limit; a regulatory amendment to provide an exemption 
from the prohibition on processing groundfish at-sea for qualified 
participants in the Shorebased IFQ Program; a regulatory amendment for 
the adaptive management program (AMP) to extend the ``pass-through'' of 
non-whiting quota pounds through 2014 or until an AMP quota pound 
allocation process is established, whichever is earlier; and a 
regulatory amendment to allow a change in registration of a mothership 
catcher vessel (MS/CV) endorsement and its associated catch history 
assignment from one limited entry trawl endorsed permit to another. 
These trailing actions are discussed in more detail in the preamble to 
the proposed rule (76 FR 54888, September 2, 2011). Some of the 
provisions in this rule may affect all sectors of the commercial 
groundfish fishery (limited entry trawl, limited entry fixed gear, and 
open access), some provisions apply to several or all of the trawl 
programs (i.e., Shorebased IFQ Program, MS Coop Program, C/P Coop 
Program), while other details only affect one program.
    NMFS published a notice of availability of Amendments 21-1 on 
August 15, 2011 (76 FR 50449). Consistent with requirements of the MSA, 
NMFS made its decision to approve Amendment 21-1 on November 10, 2011.
    In addition to this rule, on August 30, 2011, NMFS published a 
correction to regulations for the trawl program to update erroneous 
cross references, outdated terms, and duplicate regulatory entries (76 
FR 53833).
    Additional rulemakings would follow in the future and include other 
operational components of the catch share program, such as the 
requirements for new observer provider certification and an adaptive 
management program. NMFS is also planning a future ``cost recovery'' 
rule based on recommendations from the Council and expected to be 
implemented for January 2013.

Comments and Responses

    NMFS solicited public comment on Amendment 21-1 (76 FR 50449, 
August 15, 2011) and on the proposed rule (76 FR 54888, September 2, 
2011). The comment period for these notices ended October 14, 2011. 
Because these notices are related, the responses to public comments in 
this section of the preamble address Amendment 21-1 and the proposed 
rule.
    NMFS received four letters of comments on the proposed rule and 
amendment submitted by individuals or organizations. The comment period 
was open during the September 2011 Council meeting. Comments presented 
to the Council are part of the record and were considered by the 
Council during its deliberation. In reviewing the proposed rule and 
amendment, NMFS considered the record as a whole.
    Comment 1. NMFS received one comment stating the proposed rule and 
amendment had been reviewed and they had no comment.
    Response. NMFS acknowledges this comment.
    Comment 2. NMFS received one comment expressing concern that 
measures were in place to protect habitat, such as kelp beds where fish 
lay eggs, from trawl fishing.
    Response. While this comment is not within the scope of this 
action, NMFS notes that it has implemented habitat protection measures 
in the Pacific coast groundfish fishery. NMFS has implemented several 
types of closed areas along the west coast that vary by gear type or 
purpose. Closed areas to protect essential fish habitat for all life 
stages of groundfish were implemented in 2006. These closed areas are 
called essential fish habitat conservation areas (EFHCAs). In addition, 
along the west coast, geographic areas defined by coordinates expressed 
in degrees latitude and longitude are closed to fishing by certain gear 
types, including bottom trawl gear. These areas are called groundfish 
conservation areas (GCAs) and include large coastwide closed areas to 
protect overfished rockfish, called rockfish conservation areas (RCAs). 
During the primary whiting season, certain areas are closed to fishing 
with midwater gear to protect salmon, which is caught as bycatch in the 
whiting fishery. Other closed areas

[[Page 74727]]

can be implemented seasonally to slow bycatch in the whiting fishery.
    In addition to closed areas to protect habitat from trawl gear, the 
trawl rationalization program allows limited entry trawl permit holders 
to switch from trawl to fixed gears to fish their quotas, which, in 
turn, reduces trawl impacts. It also allows nontrawl vessels to harvest 
the allocation to the trawl sector if they acquire a trawl permit and 
quota. These facts lead to the conclusion that potential adverse 
impacts from trawl gear could be expected to be lower under the trawl 
rationalization program than under previous management.
    Comment 3. One commenter, the International Pacific Halibut 
Commission (IPHC), noted that there is ambiguity in NMFS's use of 
terminology describing halibut in the trawl fishery, especially given 
that it is illegal to retain halibut of any size. The commenter noted 
that NMFS's use of the terms `legal', `legal-sized', and `sublegal-
sized' halibut for the trawl fishery may no longer be appropriate given 
changes in the use of these terms by the IPHC, the management body that 
sets the allowable harvest of Pacific halibut. The IPHC recently moved 
to using more accurate terms such as O32 for halibut over 32 inches in 
total length, or U26 for halibut under 26 inches in total length. When 
the IPHC calculates total removals to determine the available yield, it 
now accounts for all fish greater than 26 inches (all O26). Previously, 
this calculation was for all O32 fish. Removals and mortality of U26 
fish are still accounted for through reductions in the harvest rate on 
the exploitable stock.
    Response. NMFS appreciates the IPHC bringing these changes to 
NMFS's attention. While NMFS acknowledges that language in Amendment 
21-1 and in the implementing regulations could be revised to reflect 
the terms used by the IPHC, NMFS does not believe it is necessary at 
this stage in the rulemaking and public process.
    NMFS interprets the terms `legal' and `legal-sized' to refer to 
fish with a total length of 32 inches and above and interprets 
`sublegal-sized' to refer to fish with a total length under 32 inches, 
consistent with the description in the environmental assessment for 
this action. Through NMFS's approval of Amendment 21-1, NMFS requested 
a footnote be added to the FMP to clarify the use of the terms ``legal-
sized'' and ``sublegal-sized'' halibut in this context. With this final 
rule, NMFS has also amended regulations at Sec.  660.55(m) to make the 
use of the terms ``legal sized'' and ``sublegal sized'' halibut more 
clear by defining as halibut with a total length of 32 inches and 
above, or O32, and halibut under 32 inches in total length, or U32, 
respectively. Provided the FMP and regulations are clear that the 
calculation of the trawl bycatch mortality limit is for legal-sized 
fish (i.e., 32 inches and above) that are converted to an amount for 
all sizes of halibut and that the trawl fishery bycatch report provided 
by NMFS Northwest Fisheries Science Center continues to provide halibut 
data sufficient to determine the proportion of trawl bycatch mortality 
that is 32 inches and above total length, NMFS can calculate the 
halibut trawl bycatch mortality limit. This rule only applies to the 
calculation of the trawl bycatch mortality limit, and does not affect 
the IPHC's calculations of available yield.
    Comment 4. The IPHC commented that it supports NMFS's process for 
calculating the carryover of surplus individual bycatch quota (IBQ) 
pounds for Pacific halibut in a vessel account after the end of the 
fishing year. The IPHC stated that limiting the potential surplus to a 
maximum of 10 percent is reasonable. The IPHC stated that it expects 
the amount of surplus carryover from one year to the next for halibut 
to be minimal because of incentives to maximize groundfish harvest 
within available IBQ pounds.
    Response. NMFS appreciates the IPHC's support and insights. NMFS 
notes that the carryover limit amount of 10 percent is not affected by 
this rule, but was implemented through a previous rulemaking (75 FR 
78344, December 15, 2010). NMFS would like to further highlight a 
description in the preamble to the proposed rule under ``QS Permits and 
Vessel Accounts'' (76 FR 54888, 54895; September 2, 2011) regarding 
end-of-the-year vessel account reconciliation. The proposed rule 
preamble described and regulations at Sec.  660.140(e)(5)(i) in this 
final rule implement a process where issuance of carryover of surplus 
occurs later in the following year after data are available to 
calculate the amount of carryover surplus (expected in spring of the 
following year).
    Comment 5. Two commenters provided comment on the implications of 
the carryover of surplus IBQ pounds on the calculation of the trawl 
bycatch mortality limit. The Council's comment described its 
understanding of the carryover of surplus pounds for Pacific halibut 
managed by the IPHC. The IPHC referenced the Council's comment letter 
and stated that the Council's understanding of the carryover of surplus 
IBQ pounds is correct.
    Response. NMFS appreciates receiving these comments. In the 
proposed rule (76 FR 54888, 54890; September 2, 2011), NMFS 
specifically requested comment on the effect the carryover provision in 
the Shorebased IFQ Program would have on calculation of the trawl 
bycatch mortality limit in a subsequent year, if any. The Council 
submitted comments describing its understanding that the surplus 
carryover provision does not affect calculation of the trawl bycatch 
mortality limit; the IPHC stated that the Council's understanding is 
correct. This carryover of surplus pounds for Pacific halibut and the 
halibut trawl bycatch mortality limit is also mentioned under the 
section of the preamble titled ``Items NMFS Requested Comment on in the 
Proposed Rule.''
    Comment 6. A comment provided by the Council described its 
understanding of provisions allowing for the carryover of surplus 
pounds in the Shorebased IFQ Program from one year to the next.
    Response. NMFS appreciates the Council's comment regarding the 
issuance of carryover of surplus pounds for groundfish managed under 
the MSA. In the proposed rule, NMFS proposed that surplus carryover 
pounds be issued after NMFS has completed an end-of-the-year account 
reconciliation process, which would result in surplus carryover pounds 
being issued later in the year once data are available. As stated in 
the FMP Appendix E, the carryover provision must be consistent with the 
conservation requirements of the MSA. The Council comment notes that 
sector allocations are set such that harvest of all sectors in total 
would not be expected to exceed annual catch limits (``ACLs'') 
established in accordance with the MSA. NMFS will continue to work with 
the Council to assure consistency with ACLs when issuing surplus 
carryover pounds for the Shorebased IFQ Program. With this final rule 
and consistent with the language in the FMP regarding the carryover 
provision, NMFS clarifies that any issuance of surplus carryover pounds 
will be to the extent allowed by the conservation requirements of the 
MSA. This provision for the carryover of surplus pounds is also 
mentioned under the section of the preamble titled ``Changes from the 
Proposed Rule.''

Items NMFS Requested Comment on in the Proposed Rule

    NMFS specifically requested comment on several items in the 
proposed rule. NMFS received comments on some (e.g., see comments 5 and 
6 above in the preamble), but not all of those items. Below, NMFS 
identifies each issue where NMFS specifically requested public 
comments, and indicates whether comments were

[[Page 74728]]

received. In instances where NMFS made changes to the proposed rule as 
a result of comments on items where comments were specifically 
requested, NMFS identified these changes in the section entitled 
``Changes from the Proposed Rule.''

 Moving Between Limited Entry and Open Access Fisheries

    In the proposed rule, NMFS specifically requested comment on the 
proposed changes to provisions regarding vessels moving between limited 
entry and open access fisheries and other sections of the regulations 
which may need further revisions. No comments were received and no 
changes were made from the proposed rule.

 Crossover Provisions

    In the proposed rule, NMFS specifically requested comment on the 
proposed revisions to the crossover provisions and any implications 
they may have, especially for dual-endorsed limited entry permits. No 
comments were received and no changes were made from the proposed rule.

 Observer and Catch Monitor Coverage at Offload

    In the proposed rule, NMFS specifically requested comment on 
whether catch monitor providers would have to change their insurance 
coverage for catch monitors to allow them to maintain coverage of the 
vessel in lieu of the observer while the vessel is in port. NMFS 
solicited public comment on whether this change would require catch 
monitor providers to have the increased insurance coverage provided by 
Maritime Liability insurance to cover ``seamen's'' claims under the 
Merchant Marine Act (Jones Act) and General Maritime Law ($1 million 
minimum). No comments were received and no changes were made from the 
proposed rule.

 New Process for IFQ First Receivers and Catch Monitors To 
Address Trucking/Transport

    In the proposed rule, NMFS specifically requested comment on 
regulations to implement a new process for first receivers and catch 
monitors to address transport away from the offload site. NMFS 
especially requested public comment on the changes regarding the 
process and submittal requirements for dock tickets and e-tickets. No 
comments were received and no changes were made from the proposed rule.

 Exemption From Prohibition on Processing at Sea

    In the proposed rule, NMFS specifically requested comment on two 
aspects of this exemption: (1) An appropriate cut-off date for 
qualification for the exemption, and (2) a conversion factor for 
freezing or glazing non-whiting groundfish species. The cut-off date is 
described below in the section titled ``Changes from the Proposed 
Rule.'' For the conversion factor, the Council's motion from its June 
2011 meeting included a statement that ``Regulatory language should 
also include an appropriate conversion factor and/or an appropriate 
process for calculating a conversion factor for glazed groundfish.'' In 
a letter to the Council (Agenda Item E.6.b, ODFW Letter (excerpt), June 
2011), ODFW recommended a weight conversion factor that included a 
variable weight conversion factor in certain circumstances. When NMFS 
implemented weight conversion factors for the Shorebased IFQ Program, 
NMFS stated that the weight conversion factors used on electronic fish 
tickets (a Federal reporting requirement) must be a consistent 
coastwide value. In the preamble to the proposed rule published on 
August 31, 2010 (75 FR 53380), NMFS stated the reasons why a consistent 
coastwide value was necessary, including providing consistency in catch 
estimates between states, preventing artificial influences on 
individual landings choices, and benefiting NMFS's ability to track 
landings values. NMFS based the Federal weight conversion factors on 
published values. ODFW's proposed conversion factor did not provide a 
consistent value by species and, potentially, would not be a consistent 
value within a species for different size grades or volumes of fish. 
Because the online IFQ system automatically applies the weight 
conversion factor depending on the species condition code reported on 
the electronic fish ticket, a variable conversion factor is not 
practical. In addition, NMFS is not aware of any published values for 
glazed groundfish species nor of any consistent coastwide value used by 
the states for glazed groundfish species. NMFS specifically requested 
comment on this issue and received none. NMFS did not propose and at 
this time is not implementing a Federal weight conversion factor for 
freezing or glazing non-whiting groundfish species. The weight reported 
on the electronic fish ticket for glazed non-whiting groundfish should 
be the actual scale weight with no conversion factor applied. The 
states may continue to have a state weight conversion factor for 
freezing and glazing on their state fish ticket.

 First Receiver Site License

    In the proposed rule, NMFS specifically requested comment on a 
reasonable timeframe between an application for a first receiver site 
license and NMFS's conduct of a site inspection. To reduce the costs of 
running the program, NMFS considered whether to adopt a policy of 
batching site inspections to only conduct inspections in a particular 
state once a month or within 60 days of receiving an application. NMFS 
did not receive any public comment on this issue. But, the Council's 
Groundfish Advisory Subpanel (GAP) did provide comment to the Council 
on this issue stating that the first receiver should not have to wait 
beyond 60 days from the date the application was submitted for a site 
inspection and, if approved, issuance of a first receiver site license. 
For efficiency, NMFS announces that it will strive to the best of its 
ability to conduct site inspections in a timely fashion, not to exceed 
60 days from the date NMFS received the application for a first 
receiver site license. This policy is internal guidance only and thus 
it is not codified in the regulations.

Changes From the Proposed Rule

All Trawl Programs

 Threshold Rules for Annual Issuance of Allocation
    In the proposed rule, NMFS specifically requested comment on an 
alternate approach to the threshold rules for annual issuance of 
allocation. NMFS is setting a threshold above which it would not need 
to continue to run iterations redistributing the allocation for QS 
permits in the Shorebased IFQ Program or to MS coops or the non-coop 
fishery in the MS Coop Program. The Council motion on this issue and 
the proposed rule stated that NMFS' annual allocations must be equal to 
or greater than 99.99 percent, but not to exceed 100 percent. In the 
proposed rule, NMFS solicited public comments on an alternate approach 
as follows, ``Rounding rules may affect distribution of the entire 
shorebased trawl allocation [or allocations to the mothership coop or 
non-coop fisheries]; NMFS will distribute such allocations to the 
maximum extent practicable, not to exceed the total allocation.'' NMFS 
suggested this alternative language to account for circumstances where 
despite NMFS' best efforts, it is unable to distribute allocations 
equal to or greater than 99.99 percent but no more

[[Page 74729]]

than 100 percent. Such a circumstance may occur, for instance, for 
quota pound distributions of IFQ species that have a very small 
shorebased trawl allocation, especially since quota pound distributions 
must be made in one pound increments. Under the alternate language, 
NMFS would still endeavor to distribute as much of the allocation as 
possible. NMFS received no comment on the alternate language. 
Accordingly, upon further consideration of the concerns described above 
and in the absence of any comments objecting to the alternate language, 
NMFS will implement the alternate language at Sec.  660.140(d)(1)(ii) 
for the Shorebased IFQ Program and at Sec.  660.150(c)(2) for the MS 
Coop Program.

Shorebased IFQ Program

 QS Permits and Vessel Accounts
    In the proposed rule, NMFS specifically requested comment on 
whether a prohibition against fraudulent use of QS accounts or vessel 
accounts is needed. NMFS received no comment on this issue. Upon 
further consideration, NMFS has determined that this prohibition is 
redundant with other statutory and regulatory provisions and is not 
necessary, thus NMFS has removed it from Sec.  660.112(b)(1)(xvi).
 Exemption From Prohibition on Processing at Sea
    In the proposed rule, NMFS specifically requested comment on two 
aspects of this exemption: (1) An appropriate cut-off date for 
qualification for the exemption, and (2) a conversion factor for 
freezing or glazing non-whiting groundfish species. The conversion 
factor is described above in the section titled ``Items NMFS Requested 
Comment on in the Proposed Rule.'' The Council recommended the date of 
July 20, 2010, as the cut-off date for qualification for the exemption 
on processing groundfish at-sea in the Shorebased IFQ Program to ensure 
that processing-prohibition exemptions would be provided only to 
individuals that had been processing at-sea without prior knowledge of 
the upcoming prohibition. Pursuant to the Council's recommendation, 
NMFS proposed July 20, 2010 as the cut-off date in the proposed rule. 
However, NMFS informed the public that it was considering whether to 
adjust the cut-off date for qualification to August 31, 2010 in light 
of a proposed rule prohibiting processing at sea for the Shorebased IFQ 
Program that published in the Federal Register on August 31, 2010 (75 
FR 53380). August 31, 2010 is the date the public was put on notice of 
the prohibition on processing at-sea in the Shorebased IFQ Program. 
NMFS specifically requested comment on the implications of such a 
change from the Council motion. No comments were received on this 
issue. With this final rule, NMFS is implementing August 31, 2010 as 
the cut-off date for qualification for the exemption because August 31, 
2010 is a more transparent and fair date to use as the cut-off date for 
qualification than July 20, 2010. Accordingly, upon further 
consideration and in the absence of any comments against such change, 
in this final rule NMFS is implementing August 31, 2010, as the cut-off 
date to qualify for the exemption from the prohibition on processing at 
sea as specified at Sec.  660.25(b)(6)(ii)(A).
 Carryover
    NMFS made some minor edits to the regulations to make terminology 
reflect changes due to Amendment 23 on annual catch limits and to 
include language from Amendment 20 on the trawl rationalization 
program. With this final rule, NMFS revised regulations at Sec.  
660.140(e)(5)(i) on the carryover of surplus quota pounds for vessel 
accounts to use the term ``ACL'' rather than optimum yield (OY), a term 
no longer applicable for this calculation. NMFS also added language 
from the FMP to this provision to state that NMFS will issue surplus 
carryover pounds to the extent allowed by the conservation requirements 
of the MSA.
 Halibut Trawl Bycatch Mortality Limit
    In the proposed rule, NMFS specifically requested comment on the 
carryover provision in the Shorebased IFQ Program and the effect it 
would have on calculation of the trawl bycatch mortality limit in a 
subsequent year, if any. Two commenters commented on this issue (see 
comments 3-6 above in the preamble). The only change from the proposed 
rule based on these comments was to add clarifying language to 
regulations at Sec.  660.55(m) to define the terms ``legal sized'' and 
``sublegal sized'' halibut as halibut with a total length of 32 inches 
and above, or O32, and halibut under 32 inches in total length, or U32, 
respectively.

Classification

    The Administrator, Northwest Region, NMFS, determined that FMP 
Amendment 21-1, as implemented through this final rule, is necessary 
for the conservation and management of the Pacific coast groundfish 
fishery and that it is consistent with the MSA and other applicable 
laws. To the extent that the regulations in this final rule differ from 
what was deemed by the Council, NMFS invokes its independent authority 
under 16 U.S.C. 1855(d).
    The Council prepared a final environmental impact statement (EIS) 
for Amendment 20 and Amendment 21 to the Pacific Coast Groundfish FMP; 
a notice of availability for each of these final EISs was published on 
June 25, 2010 (75 FR 36386). A Record of Decision (ROD) for each EIS 
was signed on August 9, 2010. An environmental assessment (EA) was 
prepared for the following trailing actions: (1) A revision the 
calculation of the Pacific halibut trawl bycatch mortality limit, and 
(2) an exemption from the prohibition on processing at sea for 
qualified participants in the Shorebased IFQ Program. The Amendment 20 
and 21 EISs and the EA are available on the Council's Web site at 
http://www.pcouncil.org/or on NMFS' Web site at http://www.nwr.noaa.gov/Groundfish-Halibut/Groundfish-Fishery-Management/Trawl-Program/index.cfm. The remaining regulatory changes in this rule 
either required no further analysis under the National Environmental 
Policy Act (NEPA) or were categorically excluded from the requirement 
to prepare a NEPA analysis.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    The preamble to the proposed rule (76 FR 54888, September 2, 2011) 
included a detailed summary of the analyses contained in the IRFA. 
NMFS, pursuant to section 604 of the Regulatory Flexibility Act (RFA), 
prepared a FRFA in support of this rule. The FRFA incorporates the 
IRFA, a summary of the significant issues raised by the public comments 
in response to the IRFA, NMFS's responses to those comments, and a 
summary of the analyses completed to support the action. A copy of the 
FRFA is available from NMFS (see ADDRESSES) and a summary of the FRFA, 
per the requirements of 5 U.S.C. 604(a), follows:
    Under the authority of the Pacific Coast Groundfish FMP and the 
MSA, this rule implements revisions to the Pacific coast groundfish 
trawl rationalization program (program), a catch share program. This 
action includes regulations that affect all commercial sectors of the 
fishery. These sectors are the limited entry trawl, limited entry fixed 
gear, and open access fisheries. During the comment period on the 
proposed rule, NMFS received several letters of comment, but none of 
the comments received addressed the IRFA.

[[Page 74730]]

    An initial regulatory flexibility analysis (IRFA) was prepared, as 
required by section 603 of the Regulatory Flexibility Act (RFA). The 
IRFA describes the economic impact this proposed rule, if adopted, 
would have on small entities. The IRFA includes a description of the 
action, why it is being considered, and the legal basis for this 
action. The IRFA provided the following information.
    In January 2011, NMFS and the Council set up a new management 
program called the trawl rationalization program. This program 
significantly changes how the shorebased trawl fishery and the 
mothership whiting fishery work. Shorebased trawlers now fish under 
their own set of individual species quotas by vessel. In prior years, 
there were different rules for shore trawlers depending on their target 
catch. Non-whiting trawlers fished under common trip limits while 
whiting trawlers fished under a common quota without trip limits. In 
prior years, the mothership fishery consisted of independent at-sea 
processors each receiving catch from several trawlers. Now the 
mothership fishery works as a single coop where catcher-vessels and 
motherships work together collectively. The catcher-processor fleet 
continues as a single coop. A specific set of groundfish species and 
bycatch of Pacific halibut are managed under the trawl rationalization 
program.
    Human observation and electronic reporting tools account for all 
catch of these species. Computer programs match the catch against 
individual species quotas (quota pounds or QP) or coop allocations. All 
vessels must carry observers who watch and measure the harvests and 
discards of these groundfish. All shore plants must have catch monitors 
to watch all vessel offloads and record the species and amounts landed. 
In the shorebased fishery, online accounting programs issue and track 
quota shares, quota pounds, and catch by species. Computer programs 
compare fish tickets to catch monitor reports and calculate the quota 
pounds landed by an individual vessel. Observer reports are used to 
account for the vessel's discards. An online ``banking system'' is used 
to debit landings and discards against the vessel's quota pounds. Quota 
pounds are deposited to a vessel's account based on a transfer from a 
quota share account or from another vessel account.
    This rule revises the Pacific coast groundfish trawl 
rationalization program. These revisions affect limited entry trawl 
fisheries and other fisheries including the limited entry fixed gear 
and open access fisheries. Some revisions address the movement between 
limited entry and open access fisheries. Other revisions concern 
vessels fishing in different management areas within one trip. This 
rule also revises the rules about permit ownership for clarity, and 
clarifies the relationship of Amendment 21 to previous amendments 
concerning how certain species are allocated between the limited entry 
and open access sectors. As a result, participants in the fishery will 
find the regulations easier to comply with and easier to understand 
resulting in less confusion as to how fish are allocated.
    This rule establishes new or modified processes concerning how much 
fish can be allocated and harvested. A new process involving the use of 
interim allocations should the biennial management and specification 
process not be completed in a timely way is established based on the 
processes used by emergency rule making for 2011. As a result, the 
potential delay in the annual allocation of quota pounds is reduced. 
The carryover process has been modified so there is no need to close 
the fishery in December for end-of-the-year account reconciliation. The 
Adaptive Management pass-through of quota pounds process is being 
extended through 2014 or the implementation of the Adaptive Management 
Program details, whichever is earlier. These actions provide benefits 
as they avoid major shut downs of the fishery and they would facilitate 
multi-year planning. Offload monitoring procedures are revised.
    This rule establishes new procedures associated with electronic 
fish ticket reporting when trawlers land fish at one site but the fish 
are trucked to another site for processing. These procedures also apply 
to instances when the fish ticket is completed at an office location 
other than the landing site. The electronic fish ticket format is 
revised to better match the state paper fish ticket requirements. These 
revised procedures and changes to the fish ticket format and completion 
process provide benefits by reducing the monitoring burden on fishermen 
and processors and providing flexibility to first receivers and fish 
buyers. They also aid adoption of the electronic fish ticket by the 
states and increase the potential that redundant data collection 
systems are reduced. Most importantly, they improve the timeliness and 
accuracy of the data reported.
    This rule expands the list of exemptions to the prohibition on 
processing at sea. Fishermen who can show that they were legally 
processing non-whiting groundfish prior to the implementation of 
Amendment 20 are able to apply for an exemption to continue processing 
at sea. This exemption addresses the Council intent not to negatively 
impact these operations. Revising the halibut trawl bycatch mortality 
limit formulas provides benefits to the trawl fishery as they provide 
slightly higher catch compared to the existing regulations while 
continuing to provide increased halibut opportunities for non-trawl 
fisheries. It is recognized that increased halibut mortality by 
trawlers results in less halibut for other commercial and recreational 
fisheries. However these revisions move the trawl fishery closer to the 
Council's original goal of 50 percent reduction of halibut mortality by 
the trawl fleet.
    Under prior rule making, to participate in the mothership fishery, 
harvesting vessels now must have an endorsed permit. The endorsement 
has an associated catch history amount, called a catch history 
assignment. Vessels wishing to sell their catch history to a coop must 
sell both their limited entry trawl permit and MS/CV endorsement. This 
rule ``severs'' the MS/CV endorsement with its catch history assignment 
from the associated limited entry permit. Under this rule, fishermen 
can sell or assign their MS/CV endorsements and associated catch 
history assignments while keeping their permits so they can continue to 
fish in other limited entry fisheries. This change aids coop formation 
and may minimize the costs of joining a coop for fishermen.
    The following provides some perspective on the economic dimensions 
of the fisheries. Over the years 2005-2009, the limited entry trawl 
fishery has averaged annual inflation adjusted revenues of about $57 
million and total landings of about 215,000 tons. Pacific whiting ex-
vessel revenues have averaged about $25 million. However, differences 
between years have varied greatly. Whiting trawlers harvested about 
216,000 tons of whiting worth about $51 million in ex-vessel revenues 
in 2008. Revenues were high because of high landings and high prices. 
Ex-vessel prices of $235 per ton were the highest on record. In 
comparison, the 2007 fishery harvested about 214,000 tons worth $29 
million at an average ex-vessel price of about $137 per ton. The 2009 
fishery harvested about 99,000 tons worth about $12 million at a price 
of $120 per ton. While the Pacific whiting fishery has grown in 
importance in recent years, harvests in the non-whiting component of 
the limited entry trawl fishery have declined steadily since the 1980s. 
Non-

[[Page 74731]]

whiting trawl ex-vessel revenues in the fishery peaked in the mid-1990s 
at about $40 million. Following the passage of the Sustainable 
Fisheries Act (1996) and the listing of several species as overfished, 
harvests became increasingly restricted and landings and revenues 
declined steadily until 2002. Over the years 2005 to 2009, non-whiting 
groundfish ex-vessel revenues have averaged $27 million annually. These 
revenues have ranged from $24 million (2005) to $32 million (2008). The 
2009 fishery earned $30 million in ex-vessel revenues. Total shorebased 
revenues (whiting and non-whiting) have averaged about $36 million 
annually over the last five years. (Note: Ex-vessel revenues are just 
one indicator of ``revenue''; they understate the wholesale, export, 
and retail revenues earned from the fishery. Data on these other 
indicators is either incomplete or unavailable.)
    This rule regulates businesses that harvest groundfish and 
processors that wish to process limited entry trawl groundfish. Under 
the RFA the term ``small entities'' includes small businesses, small 
organizations, and small governmental jurisdictions. For small 
businesses, the SBA has established size criteria for all major 
industry sectors in the U.S., including fish harvesting and fish 
processing businesses. A business involved in fish harvesting is a 
small business if it is independently owned and operated and not 
dominant in its field of operation (including its affiliates) and if it 
has combined annual receipts not in excess of $4.0 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. 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. A wholesale business 
servicing the fishing industry is a small business if it employs 100 or 
fewer persons on a full time, part time, temporary, or other basis, at 
all its affiliated operations worldwide. For marinas and charter/party 
boats, a small business is one with annual receipts not in excess of 
$7.0 million. The RFA defines a small organization as any nonprofit 
enterprise that is independently owned and operated and is not dominant 
in its field. The RFA defines small governmental jurisdictions as 
governments of cities, counties, towns, townships, villages, school 
districts, or special districts with populations of less than 50,000.
    NMFS has reviewed analyses of fish ticket data and limited entry 
permit data, available employment data provided by processors, 
information on the charterboat and Tribal fleets, and available 
industry responses to a survey on ownership. NMFS makes the following 
estimates and conclusions. The non-trawl businesses are the following 
fleets: Limited entry fixed gear (approximately 150 companies), open 
access groundfish (1,100), charterboats (465), and the Tribal fleet 
(four Tribes with 66 vessels). Available information on average revenue 
per vessel suggests that all the entities in these fleets are small 
entities. This rule changes requirements associated with catch monitors 
and observers. The catch monitors and observers are being supplied to 
the fishery by five companies. Based on analysis done on observer 
issues by the NMFS Alaska Regional Office, these five companies are 
also small companies.
    For the trawl sector, as of August 2011, there are 176 limited 
entry trawl permit owners and six mothership processor permits. Nine 
limited entry trawl permits are attached to catcher-processor vessels 
and are considered ``large'' companies. An additional permit is owned 
by a large catcher processor company but currently has no vessel 
attached to it for a total of 10 permits that have the endorsement for 
a catcher-processor. Of the remaining 167 limited entry permits, 25 
limited entry trawl permits are either owned or closely associated with 
a ``large'' shorebased processing company or with a non-profit 
organization who considers itself a ``large'' organization. Nine other 
permit owners indicated that they were large ``companies.'' Almost all 
of these companies are associated with the shorebased and mothership 
whiting fisheries. The remaining 133 limited entry trawl permits are 
projected to be held by ``small'' companies. Three of the six 
mothership processors are ``large'' companies. Within the 14 shorebased 
whiting first receivers/processors, there are four ``large'' companies. 
Including the shorebased whiting first receivers, in 2008, there were 
75 first receivers that purchased limited entry trawl groundfish. There 
were 36 small purchasers (less than $150,000); 26 medium purchasers 
(purchases greater than $150,000 but less than $1,000,000); and 13 
large purchasers (purchases greater than $1.0 million).
    This action includes regulatory amendments to further implement 
Amendments 20 and 21 to the FMP and an FMP amendment to further revise 
Amendment 21 (called Amendment 21-1). This action includes, but is not 
limited to: revisions to the Pacific halibut trawl mortality bycatch 
limit, clarification that Amendment 21 supersedes limited entry/open 
access allocations for certain groundfish species, revisions to the 
observer coverage requirement while a vessel is in port and before the 
offload is complete, revisions to the electronic fish ticket reporting 
requirements, revisions to the first receiver site license requirement, 
further clarification on moving between limited entry and open access 
fisheries, a process for end-of-the-year vessel account reconciliation, 
and an exemption from processing at sea for qualified participants in 
the Shorebased Individual Fishing Quota (IFQ) Program.
    Alternatives are described and discussed in the following 
documents:

 Intersector Allocation and Trawl Rationalization Issue: 
Trailing Actions for the Pacific Coast Groundfish Trawl Rationalization 
Program, including (1) Pacific Halibut Trawl Bycatch Mortality Limit 
(Amendment 21-1) and (2) Exemption from the Prohibition on Processing 
At Sea in the Shorebased IFQ Program. Final Environmental Assessment; 
prepared by the Pacific Fishery Management Council, 7700 NE Ambassador 
Place, Suite 101, Portland, OR 97220, (503) 820-2280, www.pcouncil.org, 
October 2011.
 Trawl Rationalization issue: Severability of Whiting 
Mothership Catcher Vessel Endorsements/Catch History Council Decision 
Document; prepared by the Pacific Fishery Management Council 7700 NE 
Ambassador Place, Suite 101, Portland, OR 97220, (503) 820-2280, 
www.pcouncil.org, May 2011.
 Intersector Allocation Issue: Recommended FMP and Regulatory 
Amendatory Language That Complies with the Council's Intent Regarding 
Superseding Amendment 6 Allocations with Amendment 21 Allocations. 
Council meeting briefing book, Agenda Item E.6.a, Attachment 2, June 
2011.
 Trawl Rationalization: Adaptive Management Program Quota Pound 
Pass-Through, Council Decision Document. Council meeting briefing book, 
Agenda Item E.6.a, Attachment 6, June 2011.

    Most of the issues in this rulemaking are changes to the 
regulations to make the program more efficient or more enforceable. 
They were either categorically excluded from NEPA or

[[Page 74732]]

required no further NEPA analysis. However, for the calculation of the 
halibut trawl bycatch mortality limit and for the exemption from the 
prohibition on processing at sea, the Council and NMFS did consider 
alternatives in an environmental assessment for this action (see 
references in the above paragraph or see ADDRESSES section). The issues 
in this rulemaking were developed and presented with public input 
through the Council process. Through the Council process, impacts and 
ways to reduce those impacts on small entities are often considered. 
Several of the changes in this rule are implemented to reduce impacts 
on industry, including small entities. For the exemption on at-sea 
processing, implementation of this provision will benefit small 
harvesting entities by increasing the value of their landed product. 
For the change to the first receiver site license application process, 
implementation will reduce the burden on industry by requiring less 
paperwork.
    As indicated above, this rule is generally beneficial to the 
various sectors of the fishery. The only explicit cost impact is the 
expansion of the requirement that all fish buyers obtain a $50 first 
receiver site license. Therefore, negative impacts to the industry, if 
any, appear to be minimal and do not favor large entities over small 
entities. No Federal rules have been identified that duplicate, 
overlap, or conflict with the alternatives. Public comment is hereby 
solicited, identifying such rules.
    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.'' The agency shall explain the actions a small entity is 
required to take to comply with a rule or group of rules. As part of 
this rulemaking process, a small entity compliance guide (the guide) 
was prepared. Copies of this final rule are available from the 
Northwest Regional Office and the guide will be sent to all permit 
owners for the fishery. The guide and this final rule will also be 
available on the Northwest Regional Office Web site (see ADDRESSES) and 
upon request.
    This final rule contains collection-of-information requirements 
subject to the Paperwork Reduction Act (PRA) which have been approved 
by the Office of Management and Budget (OMB). OMB control number 0648-
0611, Rationalization of the Pacific Coast Groundfish Trawl Limited 
Entry Fishery, was revised to include an application for an exemption 
from the prohibition on processing non-whiting groundfish at sea in the 
Shorebased IFQ Program. Public reporting burden for the revised OMB 
control number 0648-0611 is estimated to average 3 hours per response 
(543 responses). OMB control number 0648-0619, Northwest Region 
Groundfish Trawl Fishery Monitoring and Catch Accounting Program, was 
revised to include the additional reporting requirements for IFQ first 
receivers on electronic fish tickets, updated hardware and software 
requirements for electronic fish tickets, and an updated process for 
first receivers and catch monitors to address offload and trucking 
issues. Public reporting burden for the revised OMB control number 
0648-0619 is estimated to average 30 minutes per response (6,059 
responses). OMB control number 0648-0620, Pacific Coast Groundfish 
Trawl Rationalization Program Permit and License Information 
Collection, was revised to include a form for changing the registration 
of MS/CV endorsements and associated catch history assignments from one 
limited entry trawl permit to another and changes to the first receiver 
site license application requirements. Public reporting burden for the 
revised OMB control number 0648-0620 are estimated to average 30 
minutes per response (1,955 responses). These estimates include the 
time for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection information. No comments were received on the PRA during 
the proposed rule comment period. Send comments on these or any other 
aspects of the collection of information to NMFS, Northwest Region, at 
the ADDRESSES section above; and to OMB by email 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 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.
    NMFS issued Biological Opinions under the ESA on August 10, 1990, 
November 26, 1991, August 28, 1992, September 27, 1993, May 14, 1996, 
and December 15, 1999 pertaining to the effects of the Pacific Coast 
groundfish FMP fisheries on Chinook salmon (Puget Sound, Snake River 
spring/summer, Snake River fall, upper Columbia River spring, lower 
Columbia River, upper Willamette River, Sacramento River winter, 
Central Valley spring, California coastal), coho salmon (Central 
California coastal, southern Oregon/northern California coastal), chum 
salmon (Hood Canal summer, Columbia River), sockeye salmon (Snake 
River, Ozette Lake), and steelhead (upper, middle and lower Columbia 
River, Snake River Basin, upper Willamette River, central California 
coast, California Central Valley, south/central California, northern 
California, southern California). These biological opinions have 
concluded that implementation of the FMP for the Pacific Coast 
groundfish fishery was not expected to jeopardize the continued 
existence of any endangered or threatened species under the 
jurisdiction of NMFS, or result in the destruction or adverse 
modification of critical habitat.
    NMFS reinitiated a formal section 7 consultation under the ESA in 
2005 for both the Pacific whiting midwater trawl fishery and the 
groundfish bottom trawl fishery. The December 19, 1999, Biological 
Opinion had defined an 11,000 Chinook incidental take threshold for the 
Pacific whiting fishery. During the 2005 Pacific whiting season, the 
11,000 fish Chinook incidental take threshold was exceeded, triggering 
reinitiation. Also in 2005, new data from the West Coast Groundfish 
Observer Program became available, allowing NMFS to complete an 
analysis of salmon take in the bottom trawl fishery.
    NMFS prepared a Supplemental Biological Opinion dated March 11, 
2006, which addressed salmon take in both the Pacific whiting midwater 
trawl and groundfish bottom trawl fisheries. In its 2006 Supplemental 
Biological Opinion, NMFS concluded that catch rates of salmon in the 
2005 whiting fishery were consistent with expectations considered 
during prior consultations. Chinook bycatch has averaged about 7,300 
fish over the last 15 years and has only occasionally exceeded the 
reinitiation trigger of 11,000 fish.
    Since 1999, annual Chinook bycatch has averaged about 8,450 fish. 
The Chinook ESUs most likely affected by the whiting fishery has 
generally improved in status since the 1999 section 7 consultation. 
Although these species remain at risk, as indicated by their ESA 
listing, NMFS concluded that the higher observed bycatch in 2005 does 
not require a reconsideration of its prior ``no jeopardy'' conclusion 
with respect to the fishery. For the

[[Page 74733]]

groundfish bottom trawl fishery, NMFS concluded that incidental take in 
the groundfish fisheries is within the overall limits articulated in 
the Incidental Take Statement of the 1999 Biological Opinion. The 
groundfish bottom trawl limit from that opinion was 9,000 fish 
annually. NMFS will continue to monitor and collect data to analyze 
take levels. NMFS also reaffirmed its prior determination that 
implementation of the Groundfish FMP is not likely to jeopardize the 
continued existence of any of the affected ESUs.
    Lower Columbia River coho (70 FR 37160, June 28, 2005) were 
recently listed and Oregon Coastal coho (73 FR 7816, February 11, 2008) 
were recently relisted as threatened under the ESA. The 1999 biological 
opinion concluded that the bycatch of salmonids in the Pacific whiting 
fishery were almost entirely Chinook salmon, with little or no bycatch 
of coho, chum, sockeye, and steelhead.
    The Southern Distinct Population Segment (DPS) of green sturgeon 
was listed as threatened under the ESA (71 FR 17757, April 7, 2006). 
The southern DPS of Pacific eulachon was listed as threatened on March 
18, 2010, under the ESA (75 FR 13012). NMFS has reinitiated 
consultation on the fishery, including impacts on green sturgeon, 
eulachon, marine mammals, and turtles.
    After preliminarily reviewing the available information, NMFS 
understands that, consistent with Sections 7(a)(2) and 7(d) of the ESA, 
the action would not jeopardize any listed species, would not adversely 
modify any designated critical habitat, and would not result in any 
irreversible or irretrievable commitment of resources that would have 
the effect of foreclosing the formulation or implementation of any 
reasonable and prudent alternative measures. NMFS will finalize this 
conclusion before the decision is made on the FMP amendment.
    Amendment 21-1 to the FMP and this final rule were developed after 
meaningful consultation and collaboration, through the Council process, 
with the tribal representative on the Council. The FMP Amendment and 
these regulations have no direct effect on the tribes; these 
regulations were deemed by the Council as ``necessary or appropriate'' 
to implement the FMP as amended.

List of Subjects in 50 CFR Part 660

    Fisheries, Fishing, and Indian fisheries.

    Dated: November 23, 2011.
Eric C. Schwaab,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

    For the reasons stated in the preamble, 50 CFR Chapter VI is 
amended as follows:

PART 660--FISHERIES OFF WEST COAST STATES

0
1. The authority citation for part 660 continues to read as follows:

    Authority:  16 U.S.C. 1801 et seq., 16 U.S.C. 773 et seq., and 
16 U.S.C. 7001 et seq.


0
2. In Sec.  660.11, add the definition for ``Dock ticket'' in 
alphabetical order to read as follows:


Sec.  660.11  General definitions.

* * * * *
    Dock ticket means a form accepted by the state to record the 
landing, receipt, purchase, or transfer of fish.
* * * * *

0
3. In Sec.  660.12, revise paragraph (d)(2) to read as follows:


Sec.  660.12  General groundfish prohibitions.

* * * * *
    (d) * * *
    (2) Make a false statement on an application for issuance, renewal, 
permit registration, vessel registration, replacement of a limited 
entry permit, or a declaration of ownership interest in a limited entry 
permit.
* * * * *

0
4. In Sec.  660.13, revise paragraph (d)(5)(iv)(A)(23) and add 
paragraph (d)(5)(iv)(A)(26) to read as follows:


Sec.  660.13  Recordkeeping and reporting.

* * * * *
    (d) * * *
    (5) * * *
    (iv) * * *
    (A) * * *
    (23) Open access Coastal Pelagic Species net gear,
* * * * *
    (26) Open access California gillnet complex gear.
* * * * *

0
5. In Sec.  660.14, revise paragraphs (d)(4)(iii) and (vii) to read as 
follows:


Sec.  660.14  Vessel Monitoring System (VMS) requirements.

* * * * *
    (d) * * *
    (4) * * *
    (iii) Permit exemption. If the limited entry permit had a change in 
vessel registration so that it is no longer registered to the vessel 
(for the purposes of this section, this includes permits placed into 
``unidentified'' status), the vessel may be exempted from VMS 
requirements providing the vessel is not used to fish in state or 
Federal waters seaward of the baseline from which the territorial sea 
is measured off the States of Washington, Oregon or California (0-200 
nm offshore) for the remainder of the fishing year. If the vessel is 
used to fish in this area for any species of fish at any time during 
the remaining portion of the fishing year without being registered to a 
limited entry permit, the vessel is required to have and use VMS.
* * * * *
    (vii) Valid exemption reports. For an exemption report to be valid, 
it must be received by NMFS at least 2 hours and not more than 24 hours 
before the exempted activities defined at paragraphs (d)(4)(i) through 
(iv) of this section occur. An exemption report is valid until NMFS 
receives a report canceling the exemption. An exemption cancellation 
must be received at least 2 hours before the vessel re-enters the EEZ 
following an outside areas exemption; at least 2 hours before the 
vessel is placed back in the water following a haul out exemption; at 
least 2 hours before the vessel resumes fishing for any species of fish 
in state or Federal waters off the States of Washington, Oregon, or 
California after it has received a permit exemption; or at least 2 
hours before a vessel resumes fishing in the open access fishery after 
a long-term departure exemption. If a vessel is required to submit an 
activation report under paragraph (d)(2)(i) of this section before 
returning to fish, that report may substitute for the exemption 
cancellation. Initial contact must be made with NMFS OLE not more than 
24 hours after the time that an emergency situation occurred in which 
VMS transmissions were disrupted and followed by a written emergency 
exemption request within 72 hours from when the incident occurred. If 
the emergency situation upon which an emergency exemption is based is 
resolved before the exemption expires, an exemption cancellation must 
be received by NMFS at least 2 hours before the vessel resumes fishing.
* * * * *

0
6. In Sec.  660.15, revise paragraphs (b)(3), and (d)(1) through (3) to 
read as follows:


Sec.  660.15  Equipment requirements.

* * * * *
    (b) * * *
    (3) Daily testing. The vessel operator must ensure that the vessel 
crew test each required scale daily and ensure that each scale meets 
the maximum permissible error (MPE) requirements

[[Page 74734]]

described at paragraph (b)(4) of this section.
* * * * *
    (d) * * *
    (1) Hardware and software requirements. A personal computer system 
with the following minimum requirements:
    (i) Processor: 500-megahertz (MHz) or higher processor;
    (ii) Random Access Memory (RAM): 256 megabytes (MB) or higher;
    (iii) Hard disk space:
    (A) If already have MS Access 2007 or 2010, 200 MB available disk 
size.
    (B) If loading the MS Access 2007 runtime, then 700 MB available 
disk size.
    (iv) Monitor: 1024 x 768 or higher display resolution;
    (v) Operating system: Microsoft Windows XP with Service Pack (SP) 
2, Windows Server 2003 with SP1, or later operating system such as 
Windows Vista or Windows 2007;
    (vi) Software: Microsoft Access 2007 or Microsoft Access 2010, or a 
runtime version provided by the Pacific States Marine Fisheries 
Commission.
    (2) NMFS-approved software standards and internet access. The IFQ 
first receiver is responsible for obtaining, installing, and updating 
electronic fish tickets software either provided by Pacific States 
Marine Fisheries Commission, or compatible with the data export 
specifications specified by Pacific States Marine Fisheries Commission 
and for maintaining internet access sufficient to transmit data files. 
Requests for data export specifications can be submitted to: Attn: 
Electronic Fish Ticket Monitoring, National Marine Fisheries Service, 
Northwest Region, Sustainable Fisheries Division, 7600 Sand Point Way 
NE., Seattle, WA 98115.
    (3) Maintenance. The IFQ first receiver is responsible for ensuring 
that all hardware and software required under this subsection are fully 
operational and functional whenever they receive, purchase, or take 
custody, control, or possession of an IFQ landing. ``Functional'' means 
that the software requirements and minimum hardware requirements 
described at paragraphs (d)(1) and (2) of this section are met and data 
transmissions to Pacific States Marine Fisheries Commission can be 
executed effectively by the equipment.
* * * * *

0
7. In Sec.  660.17, revise the section heading and paragraph (a), and 
remove paragraph (e)(14), to read as follows:


Sec.  660.17  Catch monitors and catch monitor service providers.

    (a) Catch monitor program training and certification. Catch monitor 
certification authorizes an individual to fulfill duties as specified 
by NMFS while under the employ of a certified catch monitor provider.
    (1) A training certification signifies the successful completion of 
the training course required to obtain catch monitor certification. 
This endorsement expires when the catch monitor has not been deployed 
and performed sampling duties as required by the catch monitor program 
office for a period of time, specified by the catch monitor program, 
after his or her most recent debriefing. The catch monitor can renew 
the certification by successfully completing training once more.
    (2) Catch monitor program annual briefing. Each catch monitor must 
attend an annual briefing prior to his or her first deployment within 
any calendar year subsequent to a year in which a training 
certification is obtained. To maintain certification, a catch monitor 
must successfully complete the annual briefing, as specified by the 
catch monitor program. All briefing attendance, performance, and 
conduct standards required by the catch monitor program must be met.
    (3) Maintaining the validity of a catch monitor certification. 
After initial issuance, a catch monitor must keep their certification 
valid by meeting all of the following requirements specified below:
    (i) Successfully perform their assigned duties as described in the 
Catch Monitor Manual or other written instructions from the catch 
monitor program.
    (ii) Accurately record their data, write complete reports, and 
report accurately any observations of suspected violations of 
regulations relevant to conservation of marine resources or their 
environment.
    (iii) Not disclose collected data and observations made on board 
the vessel or in the first receiver facility to any person except the 
owner or operator of the observed vessel, first receiver management or 
an authorized officer or NMFS.
    (iv) Successfully complete NMFS-approved annual briefings as 
prescribed by the catch monitor program.
    (v) Successful completion of a briefing by a catch monitor consists 
of meeting all attendance and conduct standards issued in writing at 
the start of training; meeting all performance standards issued in 
writing at the start of training for assignments, tests, and other 
evaluation tools; and completing all other briefing requirements 
established by the catch monitor program.
    (vi) Successfully meet all expectations in all debriefings 
including reporting for assigned debriefings.
    (vii) Submit all data and information required by the catch monitor 
program within the program's stated guidelines.
* * * * *

0
8. In Sec.  660.18, revise paragraphs (c)(1)(i) through (iii) and 
(d)(1) through (3) to read as follows:


Sec.  660.18  Certification and decertification procedures for catch 
monitors and catch monitor providers.

* * * * *
    (c) * * *
    (1) * * *
    (i) Any ownership, mortgage holder, or other secured interest in a 
vessel, first receiver, shorebased or floating stationary processor 
facility involved in the catching, taking, harvesting or processing of 
fish,
    (ii) Any business involved with selling supplies or services to any 
vessel, first receiver, shorebased or floating stationary processing 
facility; or
    (iii) Any business involved with purchasing raw or processed 
products from any vessel, first receiver, shorebased or floating 
stationary processing facilities.
* * * * *
    (d) * * *
    (1) Any ownership, mortgage holder, or other secured interest in a 
vessel, first receiver, shorebased or floating stationary processor 
facility involved in the catching, taking, harvesting or processing of 
fish,
    (2) Any business involved with selling supplies or services to any 
vessel, first receiver, shorebased or floating stationary processing 
facility; or
    (3) Any business involved with purchasing raw or processed products 
from any vessel, first receiver, shorebased or floating stationary 
processing facilities.
* * * * *

0
9. In Sec.  660.25,
    a. Remove paragraph (b)(3)(iv)(D);
    b. Revise paragraphs (b)(1)(iii) and (v), (b)(3)(i), 
(b)(3)(iv)(A)(1) and (2), (b)(3)(iv)(C)(4) and (5), (b)(3)(v), 
(b)(3)(vii), (b)(4)(ii)(B), (b)(4)(iv)(A) and (C), (b)(4)(v)(C) and 
(D), (b)(4)(vi)(B), (b)(4)(vii) introductory text, (b)(4)(vii)(F), 
(b)(4)(viii), (b)(4)(ix) and (f);
0
c. Add paragraphs (b)(4)(iv)(D) and (b)(6) to read as follows:


Sec.  660.25  Permits.

* * * * *
    (b) * * *

[[Page 74735]]

    (1) * * *
    (iii) Registration. Limited entry permits will normally be 
registered for use with a particular vessel at the time the permit is 
issued, renewed, or replaced. If the permit will be used with a vessel 
other than the one registered on the permit, the permit owner must 
register that permit for use with the new vessel through the SFD. The 
reissued permit must be placed on board the new vessel in order for the 
vessel to be used to fish in the limited entry fishery.
    (A) For all limited entry permits, including MS permits, MS/CV-
endorsed permits, and C/P-endorsed permits when they are not fishing in 
the at-sea whiting fisheries, registration of a limited entry permit to 
be used with a new vessel will take effect no earlier than the first 
day of the next major limited entry cumulative limit period following 
the date SFD receives the change in vessel registration form and the 
original permit.
    (B) For MS permits, MS/CV-endorsed permits, and C/P-endorsed 
permits when they are fishing in the at-sea whiting fisheries, 
registration of a limited entry permit to be used with a new vessel 
will take effect on the date NMFS approves and issues the permit.
* * * * *
    (v) Initial administrative determination. SFD will make a 
determination regarding permit endorsements, renewal, replacement, 
change in permit ownership and change in vessel registration. SFD will 
notify the permit owner in writing with an explanation of any 
determination to deny a permit endorsement, renewal, replacement, 
change in permit ownership or change in vessel registration. The SFD 
will decline to act on an application for permit endorsement, renewal, 
replacement, or change in registration of a limited entry permit if the 
permit is subject to sanction provisions of the Magnuson-Stevens Act at 
16 U.S.C. 1858 (a) and implementing regulations at 15 CFR part 904, 
subpart D, apply.
* * * * *
    (3) * * *
    (i) ``A'' endorsement. A limited entry permit with an ``A'' 
endorsement entitles the vessel registered to the permit to fish in the 
limited entry fishery for all groundfish species with the type(s) of 
limited entry gear specified in the endorsement, except for sablefish 
harvested north of 36[deg] N. lat. during times and with gears for 
which a sablefish endorsement is required. See paragraph (b)(3)(iv) of 
this section for provisions on sablefish endorsement requirements. An 
``A'' endorsement is affixed to the limited entry permit. The limited 
entry permit with an ``A'' endorsement may be registered to another 
person (i.e., change in permit ownership), or to a different vessel 
(i.e., change in vessel registration) under paragraph (b)(4) of this 
section. An ``A'' endorsement expires on failure to renew the limited 
entry permit to which it is affixed. An MS permit is not considered a 
limited entry ``A''-endorsed permit.
* * * * *
    (iv) * * *
    (A) * * *
    (1) A sablefish endorsement with a tier assignment will be affixed 
to the permit and will remain valid when the permit is registered to 
another permit owner (i.e., change in permit ownership) or to another 
vessel (i.e., change in vessel registration).
    (2) A sablefish endorsement and its associated tier assignment are 
not separable from the limited entry permit, and therefore, may not be 
registered to another permit owner (i.e., change in permit ownership) 
or to another vessel (i.e., change in vessel registration) separately 
from the limited entry permit.
* * * * *
    (C) * * *
    (4) Any partnership or corporation with any ownership interest in 
or that holds a limited entry permit with a sablefish endorsement shall 
document the extent of that ownership interest or the individuals that 
hold the permit with the SFD via the Identification of Ownership 
Interest Form sent to the permit owner through the annual permit 
renewal process and whenever a change in permit owner, permit holder, 
and/or vessel registration occurs as described at paragraph (b)(4)(iv) 
and (v) of this section. SFD will not renew a sablefish-endorsed 
limited entry permit through the annual renewal process described at 
paragraph (b)(4)(i) of this section, or approve a change in permit 
owner, permit holder, and/or vessel registration unless the 
Identification of Ownership Interest Form has been completed. Further, 
if SFD discovers through review of the Identification of Ownership 
Interest Form that an individual person, partnership, or corporation 
owns or holds more than 3 permits and is not authorized to do so under 
paragraph (b)(3)(iv)(C)(2) of this section, the individual person, 
partnership or corporation will be notified and the permits owned or 
held by that individual person, partnership, or corporation will be 
void and reissued with the vessel status as ``unidentified'' until the 
permit owner owns and/or holds a quantity of permits appropriate to the 
restrictions and requirements described in paragraph (b)(3)(iv)(C)(2) 
of this section. If SFD discovers through review of the Identification 
of Ownership Interest Form that a partnership or corporation has had a 
change in membership since November 1, 2000, as described in paragraph 
(b)(3)(iv)(C)(3) of this section, the partnership or corporation will 
be notified, SFD will void any existing permits, and reissue any 
permits owned and/or held by that partnership or corporation in 
``unidentified'' status with respect to vessel registration until the 
partnership or corporation is able to register ownership of those 
permits to persons authorized under this section to own sablefish-
endorsed limited entry permits.
    (5) A person, partnership, or corporation that is exempt from the 
owner-on-board requirement may sell all of their permits, buy another 
sablefish-endorsed permit within one year of the date of approval of 
the last change in permit ownership, and retain their exemption from 
the owner-on-board requirements. An individual person, partnership or 
corporation could only obtain a permit if it has not added or changed 
individuals since November 1, 2000, excluding individuals that have 
left the partnership or corporation or that have died.
* * * * *
    (v) MS/CV endorsement. An MS/CV endorsement on a trawl limited 
entry permit conveys a conditional privilege that allows a vessel 
registered to it to fish in either the coop or non-coop fishery in the 
MS Coop Program described at Sec.  660.150. The provisions for the MS/
CV-endorsed limited entry permit, including eligibility, renewal, 
change of permit ownership, vessel registration, combinations, 
accumulation limits, fees, and appeals are described at Sec.  660.150. 
Each MS/CV endorsement has an associated catch history assignment (CHA) 
that is permanently linked as originally issued by NMFS and which 
cannot be divided or registered separately to another limited entry 
trawl permit. Regulations detailing this process and MS/CV-endorsed 
permit combinations are outlined in Sec.  660.150(g)(2).
* * * * *
    (vii) Endorsement and exemption restrictions. ``A'' endorsements, 
gear endorsements, sablefish endorsements and sablefish tier 
assignments, MS/CV endorsements, and C/P endorsements may not be 
registered to another permit owner (i.e., change in permit ownership) 
or to another vessel (i.e.,

[[Page 74736]]

change in vessel registration) separately from the limited entry 
permit. At-sea processing exemptions, specified at paragraph (b)(6) of 
this section, are associated with the vessel and not with the limited 
entry permit and may not be registered to another permit owner or to 
another vessel without losing the exemption.
* * * * *
    (4) * * *
    (ii) * * *
    (B) MS/CV-endorsed permit. When an MS/CV-endorsed permit is 
combined with another MS/CV-endorsed permit or with another limited 
entry trawl permit with no MS/CV or C/P endorsement, the resulting 
permit will be MS/CV-endorsed with the associated CHA as specified at 
Sec.  660.150(g)(2)(iv) and (v). If an MS/CV-endorsed permit is 
combined with a C/P-endorsed permit, the MS/CV endorsement and CHA will 
not be reissued on the combined permit.
* * * * *
    (iv) * * *
    (A) General. The permit owner may convey the limited entry permit 
to a different person. The new permit owner will not be authorized to 
use the permit until the change in permit ownership has been registered 
with and approved by the SFD. The SFD will not approve a change in 
permit ownership for a limited entry permit with a sablefish 
endorsement that does not meet the ownership requirements for such 
permit described at paragraph (b)(3)(iv)(C) of this section. The SFD 
will not approve a change in permit ownership for a limited entry 
permit with an MS/CV endorsement or an MS permit that does not meet the 
ownership requirements for such permit described at Sec.  
660.150(g)(3), and Sec.  660.150(f)(3), respectively. Change in permit 
owner and/or permit holder applications must be submitted to SFD with 
the appropriate documentation described at paragraph (b)(4)(vii) of 
this section. NMFS considers the following as a change in permit 
ownership that would require registering with and approval by SFD, 
including but not limited to: Selling the permit to another individual 
or entity; adding an individual or entity to the legal name on the 
permit; or removing an individual or entity from the legal name on the 
permit.
* * * * *
    (C) Sablefish-endorsed permits. If a permit owner submits an 
application to register a sablefish-endorsed limited entry permit to a 
new permit owner or holder during the primary sablefish season 
described at Sec.  660.231 (generally April 1 through October 31), the 
initial permit owner must certify on the application form the 
cumulative quantity, in round weight, of primary season sablefish 
landed against that permit as of the application signature date for the 
then current primary season. The new permit owner or holder must sign 
the application form acknowledging the amount of landings to date given 
by the initial permit owner. This certified amount should match the 
total amount of primary season sablefish landings reported on state 
landing receipts. As required at Sec.  660.12(b), any person landing 
sablefish must retain on board the vessel from which sablefish is 
landed, and provide to an authorized officer upon request, copies of 
any and all reports of sablefish landings from the primary season 
containing all data, and in the exact manner, required by the 
applicable state law throughout the primary sablefish season during 
which a landing occurred and for 15 days thereafter.
    (D) Change in MS/CV endorsement registration. The requirements for 
a change in MS/CV endorsement registration between limited entry trawl 
permits are specified at Sec.  660.150(g)(2)(iv).
* * * * *
    (v) * * *
    (C) Effective date. Changes in vessel registration on permits will 
take effect no sooner than the first day of the next major limited 
entry cumulative limit period following the date that SFD receives the 
signed permit change in vessel registration form and the original 
limited entry permit, except that changes in vessel registration on MS 
permits and C/P-endorsed permits will take effect immediately upon 
reissuance to the new vessel, and a change in vessel registration on 
MS/CV-endorsed permits will take effect immediately upon reissuance to 
the new vessel only on the second change in vessel registration for the 
year. No change in vessel registration is effective until the limited 
entry permit has been reissued as registered with the new vessel.
    (D) Sablefish-endorsed permits. If a permit owner submits an 
application to register a sablefish-endorsed limited entry permit to a 
new vessel during the primary sablefish season described at Sec.  
660.231 (generally April 1 through October 31), the initial permit 
owner must certify on the application form the cumulative quantity, in 
round weight, of primary season sablefish landed against that permit as 
of the application signature date for the then current primary season. 
The new permit owner or holder associated with the new vessel must sign 
the application form acknowledging the amount of landings to date given 
by the initial permit owner. This certified amount should match the 
total amount of primary season sablefish landings reported on state 
landing receipts. As required at Sec.  660.12(b), any person landing 
sablefish must retain on board the vessel from which sablefish is 
landed, and provide to an authorized officer upon request, copies of 
any and all reports of sablefish landings from the primary season 
containing all data, and in the exact manner, required by the 
applicable state law throughout the primary sablefish season during 
which a landing occurred and for 15 days thereafter.
* * * * *
    (vi) * * *
    (B) Limited entry fixed gear and trawl-endorsed permits (without 
MS/CV or C/P endorsements). Limited entry fixed gear and trawl-endorsed 
permits (without MS/CV or C/P endorsements) permits may not be 
registered for use with a different vessel more than once per calendar 
year, except in cases of death of a permit holder or if the permitted 
vessel is totally lost as defined in Sec.  660.11. The exception for 
death of a permit holder applies for a permit held by a partnership or 
a corporation if the person or persons holding at least 50 percent of 
the ownership interest in the entity dies.
* * * * *
    (vii) Application and supplemental documentation. Permit owners may 
request a change in vessel registration and/or change in permit 
ownership by submitting a complete application form. In addition, a 
permit owner applying for renewal, replacement, or change in permit 
ownership or change in vessel registration of a limited entry permit 
has the burden to submit evidence to prove that qualification 
requirements are met. The following evidentiary standards apply:
* * * * *
    (F) For a request to change a permit's ownership that is 
necessitated by the death of the permit owner(s), the individual(s) 
requesting conveyance of the permit to a new owner must provide SFD 
with a death certificate of the permit owner(s) and appropriate legal 
documentation that either: Specifically registers the permit to a 
designated individual(s); or, provides legal authority to the 
transferor to convey the permit ownership or to request a change in 
vessel registration.
* * * * *
    (viii) Application forms available. Application forms for a change 
in vessel registration and a change in permit

[[Page 74737]]

ownership of limited entry permits are available from the SFD at: NMFS 
Northwest Region, Sustainable Fisheries Division, ATTN: Applications, 
7600 Sand Point Way, NE., Seattle, WA 98115; or http://www.nwr.noaa.gov/Groundfish-Halibut/Groundfish-Permits/index.cfm. 
Contents of the application, and required supporting documentation, are 
specified in the application form.
* * * * *
    (ix) Records maintenance. The SFD will maintain records of all 
limited entry permits that have been issued, renewed, registered, or 
replaced.
* * * * *
    (6) At-sea processing exemptions--
    (i) Sablefish at-sea processing exemption. As specified at Sec.  
660.112(b)(1)(xii) and at 660.212(d)(3), vessels are prohibited from 
processing sablefish at sea that were caught in the primary sablefish 
fishery without a sablefish at-sea processing exemption. The sablefish 
at-sea processing exemption has been issued to a particular vessel and 
that permit and vessel owner who requested the exemption. The exemption 
is not part of the limited entry permit. The exemption cannot be 
registered with any other vessel, vessel owner, or permit owner for any 
reason. The sablefish at-sea processing exemption will expire upon 
registration of the vessel to a new owner or if the vessel is totally 
lost, as defined at Sec.  660.11.
    (ii) Non-whiting at-sea processing exemption. As specified at Sec.  
660.112(b)(1)(xii), vessels are prohibited from processing non-whiting 
groundfish at sea that were caught in the Shorebased IFQ Program 
without a non-whiting at-sea processing exemption. A permit and/or 
vessel owner may get an exemption to this prohibition by applying for 
the exemption as provided in paragraph (b)(6)(ii)(B) of this section 
and if his/her vessel meets the exemption qualifying criteria provided 
in paragraph (b)(6)(ii)(A) of this section. The non-whiting at-sea 
processing exemption is issued to a particular vessel and that permit 
and/or vessel owner who requested the exemption. The exemption is not 
part of the limited entry permit. The exemption is not transferable to 
any other vessel, vessel owner, or permit owner for any reason. The 
non-whiting at-sea processing exemption will expire upon registration 
of the vessel to a new owner or if the vessel is totally lost, as 
defined at Sec.  660.11.
    (A) Qualifying criteria. A non-whiting at-sea processing exemption 
will be issued to any vessel registered for use with a limited entry 
trawl permit that meets the non-whiting at-sea processing exemption 
qualifying criteria and for which the vessel owner submits a timely and 
complete application. The qualifying criteria for a non-whiting at-sea 
processing exemption are that the vessel must have been registered to a 
limited entry trawl permit, the vessel must have legally processed non-
whiting groundfish at sea prior to August 31, 2010, and that the vessel 
landed that processed catch at a shorebased processor or buyer. The 
best evidence of a vessel having met these qualifying criteria will be 
receipts of processed product from shorebased processors, buyers, or 
exporters, accompanied by the state fish tickets or landings receipts 
appropriate to the processed product. Documentation showing investment 
in freezer equipment without also showing evidence of landing processed 
product is not sufficient evidence to qualify a vessel for a non-
whiting at-sea processing exemption. All landings of processed non-
whiting groundfish must have been harvested in waters managed under 
this part. Non-whiting groundfish taken in tribal fisheries or taken 
outside of the fishery management area, as defined at Sec.  660.10, 
does not meet the qualifying criteria.
    (B) Application and issuance process for non-whiting at-sea 
processing exemptions.
    (1) The SFD will mail non-whiting at-sea processing exemption 
applications to all current trawl permit holders and will make the 
application available online at http://www.nwr.noaa.gov/Groundfish-Halibut/Groundfish-Permits/index.cfm. Permit holders will have until 
February 15, 2012 to submit applications. A permit holder who believes 
that their vessel may qualify for the non-whiting at-sea processing 
exemption must submit evidence with their application showing how their 
vessel has met the qualifying criteria described at paragraph 
(b)(6)(ii)(A) of this section. Paragraph (b)(6)(ii)(C) of this section 
sets out the relevant evidentiary standards and burden of proof. 
Applications must be postmarked or hand-delivered no later than close 
of business February 15, 2012, to NMFS at: NMFS Northwest Region, 
Sustainable Fisheries Division, ATTN: Fisheries Permit Office--
Processing Exemption, 7600 Sand Point Way NE., Seattle, WA 98115.
    (2) After receipt of a complete application, the SFD will notify 
applicants by letter of initial administrative determination (IAD) 
whether their vessel qualifies for the non-whiting at-sea processing 
exemption. A person who has been notified by the SFD that their vessel 
qualifies for a non-whiting at-sea processing exemption will be issued 
an exemption letter by SFD that must be onboard the vessel at all 
times.
    (3) If an applicant chooses to file an appeal of the IAD letter 
under paragraph (b)(6)(ii)(B)(2) of this section, the applicant must 
follow the appeals process outlined at paragraph (g) of this section 
and, for the timing of the appeals, at paragraph (g)(4)(ii) of this 
section.
    (C) Evidence and burden of proof. A permit and/or vessel owner 
applying for issuance of a non-whiting at-sea processing exemption has 
the burden to submit evidence to prove that qualification requirements 
are met. The following evidentiary standards apply:
    (1) A copy of the current vessel documentation or registration 
(USCG or state) is the best evidence of vessel ownership.
    (2) A copy of a state fish receiving ticket is the best evidence of 
a landing and of the type of gear used.
    (3) A copy of a state fish receiving ticket, dock receiving ticket, 
landing receipt, or other written receipt indicating the name of their 
buyer, the date, and a description of the product form and the name and 
amount of non-whiting groundfish landed is the best evidence of the 
commercial transfer of processed product (including glazing).
    (4) A copy of a sales receipt is the best evidence of the purchase 
of freezing equipment.
    (5) Such other relevant, credible evidence as the applicant may 
submit, or the SFD or the Regional Administrator request or acquire, 
may also be considered.
* * * * *
    (f) Permit fees. The Regional Administrator is authorized to charge 
fees to cover administrative expenses related to issuance of permits 
including initial issuance, renewal, permit registration, vessel 
registration, replacement, and appeals. The appropriate fee must 
accompany each application.
* * * * *
    10. In Sec.  660.55, revise paragraphs (a), (e)(2) introductory 
text, and (m) to read as follows:


Sec.  660.55  Allocations.

    (a) General. An allocation is the apportionment of a harvest 
privilege for a specific purpose, to a particular person, group of 
persons, or fishery sector. The opportunity to harvest Pacific Coast 
groundfish is allocated among participants in the fishery when

[[Page 74738]]

the ACLs for a given year are established in the biennial harvest 
specifications. For any stock that has been declared overfished, any 
formal allocation may be temporarily revised for the duration of the 
rebuilding period. For certain species, primarily trawl-dominant 
species, beginning with the 2011-2012 biennial specifications process, 
separate allocations for the trawl and nontrawl fishery (which for this 
purpose includes limited entry fixed gear, directed open access, and 
recreational fisheries) will be established biennially or annually 
using the standards and procedures described in Chapter 6 of the 
PCGFMP. Chapter 6 of the PCGFMP provides the allocation structure and 
percentages for species allocated between the trawl and nontrawl 
fisheries. Also, for those species not subject to the trawl and 
nontrawl allocations specified under Amendment 21 and in paragraph 
(c)(1) of this section, separate allocations for the limited entry and 
open access fisheries may be established using the procedures described 
in Chapters 6 and 11 of the PCGFMP and this subpart. Allocation of 
sablefish north of 36[deg] N. lat. is described in paragraph (h) of 
this section and in the PCGFMP. Allocation of Pacific whiting is 
described in paragraph (i) of this section and in the PCGFMP. 
Allocation of black rockfish is described in paragraph (l) of this 
section. Allocation of Pacific halibut bycatch is described in 
paragraph (m) of this section. Allocations not specified in the PCGFMP 
are established in regulation through the biennial harvest 
specifications and are listed in Tables 1 a through d and Tables 2 a 
through d of this subpart.
* * * * *
    (e) * * *
    (2) Species with LE/OA allocations. For species with LE/OA 
allocations that are not subject to Amendment 21 allocations, the 
allocation between the limited entry (both trawl and fixed gear) and 
the open access fisheries is determined by applying the percentage for 
those species with a LE/OA allocation to the commercial harvest 
guideline plus the amount set-aside for the non-groundfish fisheries.
* * * * *
    (m) Pacific halibut bycatch allocation. The Pacific halibut fishery 
off Washington, Oregon and California (Area 2A in the halibut 
regulations) is managed under regulations at 50 CFR part 300, subpart 
E. The PCGFMP sets the trawl bycatch mortality limit at 15 percent of 
the Area 2A total constant exploitation yield (TCEY) for legal size 
halibut (net weight), not to exceed 130,000 pounds annually for legal 
size halibut (net weight) for 2012 through 2014 and, beginning in 2015, 
not to exceed 100,000 pounds annually for legal size halibut (net 
weight). The TCEY used for these calculations will be the best estimate 
of the TCEY available from the International Pacific Halibut Commission 
at the time of the calculation. For the purpose of this paragraph, the 
term ``legal sized'' halibut refers to halibut with a total length of 
32 inches and above, or O32, and the term ``sublegal sized'' halibut 
refers to halibut under 32 inches in total length, or U32. To determine 
the trawl bycatch mortality limit, the pounds of halibut available to 
the trawl fleet will be expanded from the legal sized halibut mortality 
(net weight) to a round weight legal and sublegal sized amount. To 
convert from net weight to round weight, multiply by the conversion 
factor used by the International Pacific Halibut Commission at the time 
of calculation for net weight to round weight. To convert from legal 
sized halibut to legal and sublegal sized halibut, multiply by the 
conversion factor from the NMFS trawl fishery bycatch report as 
reported to the International Pacific Halibut Commission at the time of 
calculation for legal sized to legal and sublegal sized halibut. The 
bycatch allocation percent can be adjusted downward or upward through 
the biennial specifications and management measures process but the 
upper bound on the maximum pounds of allocation can only be changed 
though an FMP amendment. Part of the overall total mortality limit is a 
set-aside of 10 mt of Pacific halibut (legal and sublegal, round 
weight), to accommodate bycatch in the at-sea Pacific whiting fishery 
and in the shorebased trawl fishery south of 40[deg]10' N. lat. 
(estimated to be approximately 5 mt each). This set-aside can be 
adjusted through the biennial specifications and management measures 
process.

0
11. In Sec.  660.60,
0
a. Add paragraph (c)(1)(iv),
0
b. Revise headings to paragraphs (h)(5), (h)(5)(i), and (h)(5)(ii); and
0
c. Revise paragraph (h)(7), to read as follows:


Sec.  660.60  Specifications and management measures.

* * * * *
    (c) * * *
    (1) * * *
    (iv) List of IFQ species documented on observer form. As specified 
at Sec. Sec.  660.112(b)(1)(xiii) and 660.140(h)(1)(i), observer or 
catch monitor coverage while in port depends on documentation of 
specified retained IFQ species while the vessel is at sea by the 
observer program on a form. The list of IFQ species documented on the 
observer program form may be modified on a biennial or more frequent 
basis.
* * * * *
    (h) * * *
    (5) Size limits, length measurement, and weight conversions. * * *
    (i) Length measurement. * * *
* * * * *
    (ii) Weight conversions and size limits. * * *
* * * * *
    (7) Crossover provisions. Crossover provisions apply to two 
activities: Fishing on different sides of a management line, or fishing 
in both the limited entry and open access fisheries. NMFS uses 
different types of management areas for West Coast groundfish 
management, such as the north-south management areas as defined in 
Sec.  660.11. Within a management area, a large ocean area with 
northern and southern boundary lines, trip limits, seasons, and 
conservation areas follow a single theme. Within each management area, 
there may be one or more conservation areas, defined at Sec.  660.11 
and Sec. Sec.  660.70 through 660.74. The provisions within this 
paragraph apply to vessels fishing in different management areas. 
Crossover provisions also apply to vessels that fish in both the 
limited entry and open access fisheries, or that use open access non-
trawl gear while registered to limited entry fixed gear permits. 
Fishery specific crossover provisions can be found in subparts D 
through F of this part.
    (i) Fishing in management areas with different trip limits. Trip 
limits for a species or a species group may differ in different 
management areas along the coast. The following crossover provisions 
apply to vessels fishing in different geographical areas that have 
different cumulative or ``per trip'' trip limits for the same species 
or species group, with the following exceptions. Such crossover 
provisions do not apply to: IFQ species defined at Sec.  660.140(c), 
for vessels that are declared into the Shorebased IFQ Program (see 
Sec.  660.13(d)(5)(iv)(A), for valid Shorebased IFQ Program 
declarations), species that are subject only to daily trip limits, or 
to the trip limits for black rockfish off Washington, as described at 
Sec.  660.230(e) and Sec.  660.330(e).
    (A) Going from a more restrictive to a more liberal area. If a 
vessel takes and retains any groundfish species or species group of 
groundfish in an area where a more restrictive trip limit applies 
before fishing in an area where

[[Page 74739]]

a more liberal trip limit (or no trip limit) applies, then that vessel 
is subject to the more restrictive trip limit for the entire period to 
which that trip limit applies, no matter where the fish are taken and 
retained, possessed, or landed.
    (B) Going from a more liberal to a more restrictive area. If a 
vessel takes and retains a groundfish species or species group in an 
area where a higher trip limit or no trip limit applies, and takes and 
retains, possesses or lands the same species or species group in an 
area where a more restrictive trip limit applies, that vessel is 
subject to the more restrictive trip limit for the entire period to 
which that trip limit applies, no matter where the fish are taken and 
retained, possessed, or landed.
    (C) Fishing in two different areas where a species or species group 
is managed with different types of trip limits. During the fishing 
year, NMFS may implement management measures for a species or species 
group that set different types of trip limits (for example, per trip 
limits versus cumulative trip limits) for different areas. If a vessel 
fishes for a species or species group that is managed with different 
types of trip limits in two different areas within the same cumulative 
limit period, then that vessel is subject to the most restrictive 
overall cumulative limit for that species, regardless of where fishing 
occurs.
    (D) Minor rockfish. Several rockfish species are designated with 
species-specific limits on one side of the 40[deg]10' N. lat. 
management line, and are included as part of a minor rockfish complex 
on the other side of the line. A vessel that takes and retains fish 
from a minor rockfish complex (nearshore, shelf, or slope) on both 
sides of a management line during a single cumulative limit period is 
subject to the more restrictive cumulative limit for that minor 
rockfish complex during that period.
    (1) If a vessel takes and retains minor slope rockfish north of 
40[deg]10' N. lat., that vessel is also permitted to take and retain, 
possess or land splitnose rockfish up to its cumulative limit south of 
40[deg]10' N. lat., even if splitnose rockfish were a part of the 
landings from minor slope rockfish taken and retained north of 
40[deg]10' N. lat.
    (2) If a vessel takes and retains minor slope rockfish south of 
40[deg]10' N. lat., that vessel is also permitted to take and retain, 
possess or land POP up to its cumulative limit north of 40[deg]10' N. 
lat., even if POP were a part of the landings from minor slope rockfish 
taken and retained south of 40[deg]10' N. lat.
    (ii) Fishing in both limited entry and open access fisheries--
    (A) Fishing in limited entry and open access fisheries with 
different trip limits. Open access trip limits apply to any fishing 
conducted with open access gear, even if the vessel has a valid limited 
entry permit with an endorsement for another type of gear, except such 
provisions do not apply to IFQ species defined at Sec.  660.140(c), for 
vessels that are declared into the Shorebased IFQ Program (see Sec.  
660.13(d)(5)(iv)(A) for valid Shorebased IFQ Program declarations). A 
vessel that fishes in both the open access and limited entry fisheries 
is not entitled to two separate trip limits for the same species. If a 
vessel has a limited entry permit registered to it at any time during 
the trip limit period and uses open access gear, but the open access 
limit is smaller than the limited entry limit, the open access limit 
may not be exceeded and counts toward the limited entry limit. If a 
vessel has a limited entry permit registered to it at any time during 
the trip limit period and uses open access gear, but the open access 
limit is larger than the limited entry limit, the smaller limited entry 
limit applies, even if taken entirely with open access gear.
    (B) Limited entry permit restrictions for vessels fishing in the 
open access fishery--(1) Vessel registered to a limited entry trawl 
permit. To participate in the open access fishery, described at part 
660, subpart F, with open access gear, defined at Sec.  660.11, a 
vessel registered to a limit entry trawl permit must make the 
appropriate fishery declaration, as specified at Sec.  
660.14(d)(5)(iv)(A). In addition, a vessel registered to a limit entry 
trawl permit must remove the permit from their vessel, as specified at 
Sec.  660.25(b)(4)(v), unless the vessel will be fishing in the open 
access fishery under one of the following declarations specified at 
Sec.  660.13(d):
    (i) Non-groundfish trawl gear for pink shrimp,
    (ii) Non-groundfish trawl gear for ridgeback prawn,
    (iii) Non-groundfish trawl gear for California halibut,
    (iv) Non-groundfish trawl gear for sea cucumber,
    (v) Open access Dungeness crab pot/trap gear,
    (vi) Open access HMS line gear,
    (vii) Open access salmon troll gear,
    (viii) Open access Coastal Pelagic Species net gear.
    (2) Vessel registered to a limited entry fixed gear permit. To 
participate with open access gear, defined at Sec.  660.11, subpart C, 
a vessel registered to a limit entry fixed gear permit must make the 
appropriate open access declaration, as specified at Sec.  
660.14(d)(5)(iv)(A).

0
12. In Sec.  660.111, revise the definition for ``Catch history 
assignment'' to read as follows:


Sec.  660.111  Trawl fishery--definitions.

* * * * *
    Catch history assignment or CHA means a percentage of the 
mothership sector allocation of Pacific whiting based on a limited 
entry permit's qualifying history and which is specified on the MS/CV-
endorsed limited entry permit.
* * * * *

0
13. In Sec.  660.112,
0
a. Revise paragraphs (b)(1)(iv) and (b)(1)(xii)(B); and add paragraph 
(b)(1)(xii)(C);
0
b. Revise paragraph (b)(1)(xiii);
0
c. Revise paragraphs (b)(2)(i) and (ii) to read as follows:


Sec.  660.112  Trawl fishery--prohibitions.

* * * * *
    (b) * * *
    (1) * * *
    (iv) Register the limited entry trawl endorsed permit to another 
vessel or sell the limited entry trawl endorsed permit to another owner 
if the vessel registered to the permit has a deficit (negative balance) 
in their vessel account, until the deficit is covered, regardless of 
the amount of the deficit.
* * * * *
    (xii) * * *
    (B) A vessel that has a sablefish at-sea processing exemption, 
described at Sec.  660.25(b)(6)(i) may process sablefish at-sea.
    (C) A vessel that has a non-whiting at-sea processing exemption, 
described at Sec.  660.25(b)(6)(ii) may process non-whiting groundfish 
at sea.
* * * * *
    (xiii) Retain any IFQ species/species group onboard a vessel unless 
the vessel has observer coverage during the entire trip and observer or 
catch monitor coverage while in port until all IFQ species from the 
trip are offloaded, except for the following IFQ species: Bocaccio, 
yelloweye rockfish, canary rockfish, and cowcod. If the observer makes 
available to the catch monitor an observer program form reporting the 
weight and number of each of the IFQ species that were retained onboard 
the vessel during that trip and noting any discrepancy in those species 
between the vessel operator and observer, the vessel would not need to 
maintain observer or catch monitor coverage on the vessel while in port 
and until the offload is complete. A vessel may deliver IFQ species/
species groups to

[[Page 74740]]

more than one IFQ first receiver, but must maintain observer coverage 
onboard the vessel during any transit between delivery points. Once 
transfer of fish begins, all fish aboard the vessel are counted as part 
of the same landing as defined at Sec.  660.11. Modifying the list of 
IFQ species to which this exception applies has been designated as a 
``routine management measure'' and may be modified through an inseason 
action, as specified at Sec.  660.60(c)(1)(iv).
* * * * *
    (2) * * *
    (i) Receive, purchase, or take custody, control, or possession of 
an IFQ landing from a vessel that harvested the catch while fishing 
under the Shorebased IFQ Program without a valid first receiver site 
license.
    (ii) Fail to sort fish received from a IFQ landing prior to first 
weighing after offloading as specified at Sec.  660.130(d)(2) for the 
Shorebased IFQ Program, with the following exception. Vessels declared 
in to the Shorebased IFQ Program at Sec.  660.13(d)(5)(iv)(A), may 
weigh catch on a bulk scale or automatic hopper scale before sorting as 
described at Sec.  660.140(j)(2)(viii), for Pacific whiting taken with 
midwater trawl gear, and at Sec.  660.140(j)(2)(ix)(A), for all other 
IFQ landings. For this exception, all but the predominant species must 
then be reweighed.
* * * * *

0
14. In Sec.  660.113, revise paragraphs (a)(2) and (b)(4)(i) and (ii) 
to read as follows:


Sec.  660.113  Trawl fishery--recordkeeping and reporting.

* * * * *
    (a) * * *
    (2) Retention of records. All records used in the preparation of 
records or reports specified in this section or corrections to these 
reports must be maintained for a period of not less than three years 
after the date of landing and must be immediately available upon 
request for inspection by NMFS or authorized officers or others as 
specifically authorized by NMFS. Records used in the preparation of 
required reports specified in this section or corrections to these 
reports that are required to be kept include, but are not limited to, 
any written, recorded, graphic, electronic, or digital materials as 
well as other information stored in or accessible through a computer or 
other information retrieval system; worksheets; weight slips; 
preliminary, interim, and final tally sheets; receipts; checks; 
ledgers; notebooks; diaries; spreadsheets; diagrams; graphs; charts; 
tapes; disks; or computer printouts. All relevant records used in the 
preparation of electronic fish ticket reports or corrections to these 
reports, including dock tickets, must be maintained for a period of not 
less than three years after the date and must be immediately available 
upon request for inspection by NMFS or authorized officers or others as 
specifically authorized by NMFS.
    (b) * * *
    (4) * * *
    (i) Required information. All IFQ first receivers must provide the 
following types of information: Date of landing, vessel that made the 
delivery, vessel account number, name of the vessel operator, gear type 
used, catch area, first receiver, actual weights of species landed 
listed by species or species group including species with no value, 
condition landed, number of salmon by species, number of Pacific 
halibut, ex-vessel value of the landing by species, fish caught inside/
outside 3 miles or both, and any other information deemed necessary by 
the Regional Administrator as specified on the appropriate electronic 
fish ticket form.
    (ii) Submissions. The IFQ first receiver must:
    (A) Include as part of each electronic fish ticket submission, the 
actual scale weight for each groundfish species as specified by 
requirements at Sec.  660.15(c), and the vessel identification number.
    (B) Use for the purpose of submitting electronic fish tickets, and 
maintain in good working order, computer equipment as specified at 
Sec.  660.15(d);
    (C) Install, use, and update as necessary, any NMFS-approved 
software described at Sec.  660.15(d);
    (D) Submit a completed electronic fish ticket for every IFQ landing 
no later than 24 hours after the date the fish are received, unless a 
waiver of this requirement has been granted under provisions specified 
at paragraph (b)(4)(iv) of this section.
    (E) Follow these process and submittal requirements for offloading 
at a first receiver site where the fish will be processed at the 
offload site or if an electronic fish ticket will be recorded prior to 
transport:
    (1) The IFQ first receiver must communicate the electronic fish 
ticket number to the catch monitor.
    (2) After completing the offload, the electronic fish ticket 
information must be recorded immediately.
    (3) Prior to submittal of the electronic fish ticket, the 
information recorded for the electronic fish ticket must be reviewed by 
the catch monitor and the vessel operator who delivered the fish.
    (4) After review, the IFQ first receiver and the vessel operator 
must sign a printed hard copy of the electronic fish ticket or, if the 
delivery occurs outside of business hours, the original dock ticket.
    (5) Prior to submittal, three copies of the signed electronic fish 
ticket must be produced by the IFQ first receiver and a copy provided 
to each of the following:
    (i) The vessel operator,
    (ii) The state of origin if required by state regulations, and
    (iii) The IFQ first receiver.
    (6) After review and signature, the electronic fish ticket must be 
submitted within 24 hours of the completion of the offload, as 
specified in paragraph (b)(4)(ii)(D) of this section.
    (F) Follow these process and submittal requirements for offloading 
at a first receiver site where the fish will be transported for 
processing at a different location if an electronic fish ticket is not 
recorded prior to transport:
    (1) The IFQ first receiver must communicate the electronic fish 
ticket number to the catch monitor at the beginning of the offload.
    (2) The vessel name and the electronic fish ticket number must be 
recorded on each dock ticket related to that delivery.
    (3) Upon completion of the dock ticket, but prior to transfer of 
the offload to another location, the dock ticket information that will 
be used to complete the electronic fish ticket must be reviewed by the 
catch monitor and the vessel operator who delivered the fish.
    (4) After review, the IFQ first receiver and the vessel operator 
must sign the original copy of each dock ticket related to that 
delivery.
    (5) Prior to submittal of the electronic fish ticket, three copies 
of the signed dock ticket must be produced by the IFQ first receiver 
and a copy provided to each of the following:
    (i) The vessel operator,
    (ii) The state of origin if required by state regulations, and
    (iii) The IFQ first receiver.
    (6) Based on the information contained in the signed dock ticket, 
the electronic fish ticket must be completed and submitted within 24 
hours of the completion of the offload, as specified in paragraph 
(b)(4)(ii)(D) of this section.
    (7) Three copies of the electronic fish ticket must be produced by 
the IFQ first receiver and a copy provided to each of the following:
    (i) The vessel operator,
    (ii) The state of origin if required by state regulations, and
    (iii) The IFQ first receiver.
* * * * *

0
15. Revise Sec.  660.120 to read as follows:

[[Page 74741]]

Sec.  660.120  Trawl fishery--crossover provisions.

    The crossover provisions listed at Sec.  660.60(h)(7), apply to 
vessels fishing in the limited entry trawl fishery.


0
16. In Sec.  660.130, remove paragraph (c)(4)(ii)(B) and redesignate 
paragraph (c)(4)(ii)(C) as (c)(4)(ii)(B), revise paragraph (c) heading, 
(c) introductory text, (c)(4) introductory text, (d) introductory text, 
and (d)(2)(i) to read as follows:


Sec.  660.130  Trawl fishery--management measures.

* * * * *
    (c) Restrictions by limited entry trawl gear type. Management 
measures may vary depending on the type of trawl gear (i.e., large 
footrope, small footrope, selective flatfish, or midwater trawl gear) 
used and/or on board a vessel during a fishing trip, cumulative limit 
period, and the area fished. Trawl nets may be used on and off the 
seabed. For some species or species groups, Table 1 (North) and Table 1 
(South) of this subpart provide trip limits that are specific to 
different types of trawl gear: Large footrope, small footrope 
(including selective flatfish), selective flatfish, midwater, and 
multiple types. If Table 1 (North) and Table 1 (South) of this subpart 
provide gear specific limits for a particular species or species group, 
it is unlawful to take and retain, possess or land that species or 
species group with limited entry trawl gears other than those listed.
* * * * *
    (4) More than one type of trawl gear on board. The trip limits in 
Table 1 (North) or Table 1 (South) of this subpart must not be 
exceeded.
* * * * *
    (d) Sorting. Under Sec.  660.12 (a)(8), it is unlawful for any 
person to ``fail to sort, prior to the first weighing after offloading, 
those groundfish species or species groups for which there is a trip 
limit, size limit, scientific sorting designation, quota, harvest 
guideline, ACL or ACT or OY, if the vessel fished or landed in an area 
during a time when such trip limit, size limit, scientific sorting 
designation, quota, harvest guideline, ACL or ACT or OY applied.'' The 
States of Washington, Oregon, and California may also require that 
vessels record their landings as sorted on their state landing receipt. 
Sector specific sorting requirements and exceptions are listed at 
paragraphs (d)(2) and (d)(3) of this section.
* * * * *
    (2) * * *
    (i) First receivers. Fish landed at IFQ first receivers (including 
shoreside processing facilities and buying stations that intend to 
transport catch for processing elsewhere) must be sorted, prior to 
first weighing after offloading from the vessel and prior to transport 
away from the point of landing, with the following exception. Vessels 
declared in to the Shorebased IFQ Program at Sec.  660.13(d)(5)(iv)(A), 
may weigh catch on a bulk scale or automatic hopper scale before 
sorting as described at Sec.  660.140(j)(2)(viii), for Pacific whiting 
taken with midwater trawl gear, and at Sec.  660.140(j)(2)(ix)(A), for 
all other IFQ landings. For this exception, all but the predominant 
species must then be reweighed.
* * * * *

0
17. In Sec.  660.140,
0
a. Revise paragraph (a) introductory text, paragraphs (d)(1)(ii) 
introductory text, (d)(1)(ii)(A) and (C), (d)(2)(ii), (d)(3)(i)(D), 
(d)(3)(ii)(A), (d)(4)(v), (e)(1)(i), (e)(2)(ii), (e)(3)(i)(D), 
(e)(3)(ii), (e)(4)(i) introductory text, (e)(5)(i), (f)(1) and (2), 
(f)(3) introductory text, (f)(3)(iii) introductory text, 
(f)(3)(iii)(B), (f)(5) through (f)(7), (h)(1)(i), (j)(1), and (l)(2);
0
b. Add paragraphs (f)(3)(ii)(D) and (f)(3)(iii)(C)(11) to read as 
follows:


Sec.  660.140  Shorebased IFQ Program.

    (a) General. The Shorebased IFQ Program applies to qualified 
participants in the Pacific Coast Groundfish fishery and includes a 
system of transferable QS for most groundfish species or species 
groups, IBQ for Pacific halibut, and trip limits or set-asides for the 
remaining groundfish species or species groups. NMFS will issue a QS 
permit to eligible participants and will establish a QS account for 
each QS permit owner to track the amount of QS or IBQ and QP or IBQ 
pounds owned by that owner. QS permit owners may own QS or IBQ for IFQ 
species, expressed as a percent of the allocation to the Shorebased IFQ 
Program for that species. NMFS will issue QP or IBQ pounds to QS permit 
owners, expressed in pounds, on an annual basis, to be deposited in the 
corresponding QS account. NMFS will establish a vessel account for each 
eligible vessel owner participating in the Shorebased IFQ Program, 
which is independent of the QS permit and QS account. In order to use 
QP or IBQ pounds, a QS permit owner must transfer the QP or IBQ pounds 
from the QS account into the vessel account for the vessel to which the 
QP or IBQ pounds is to be assigned. Harvests of IFQ species may only be 
delivered to an IFQ first receiver with a first receiver site license. 
In addition to the requirements of this section, the Shorebased IFQ 
Program is subject to the following groundfish regulations of subparts 
C and D:
* * * * *
    (d) * * *
    (1) * * *
    (ii) Annual QP and IBQ pound allocations. QP and IBQ pounds will be 
deposited into QS accounts annually. QS permit owners will be notified 
of QP deposits via the IFQ Web site and their QS account. QP and IBQ 
pounds will be issued to the nearest whole pound using standard 
rounding rules (i.e. decimal amounts less than 0.5 round down and 0.5 
and greater round up), except that in the first year of the Shorebased 
IFQ Program, issuance of QP for overfished species greater than zero 
but less than one pound will be rounded up to one pound. Rounding rules 
may affect distribution of the entire shorebased trawl allocation. NMFS 
will distribute such allocations to the maximum extent practicable, not 
to exceed the total allocation. QS permit owners must transfer their QP 
and IBQ pounds from their QS account to a vessel account in order for 
those QP and IBQ pounds to be fished. QP and IBQ pounds must be 
transferred in whole pounds (i.e. no fraction of a QP or IBQ pound can 
be transferred). All QP and IBQ pounds in a QS account must be 
transferred to a vessel account by September 1 of each year in order to 
be fished.
    (A) Non-whiting QP annual sub-allocations. NMFS will issue QP for 
IFQ species other than Pacific whiting and Pacific halibut annually by 
multiplying the QS permit owner's QS for each such IFQ species by that 
year's shorebased trawl allocation for that IFQ species. Deposits to QS 
accounts for IFQ species other than Pacific whiting and Pacific halibut 
will be made on or about January 1 each year. Until the method for 
distributing the QP issued for adaptive management program QS, 
specified at paragraph (l) of this section, is developed and 
implemented or through 2014, whichever is earlier, the resulting AMP QP 
will be issued to all QS permit owners in proportion to their non-
whiting QS.
    (1) In years where the groundfish harvest specifications are known 
by January 1, deposits to QS accounts for IFQ species will be made on 
or about January 1.
    (2) In years where the groundfish harvest specifications are not 
known by January 1, NMFS will issue QP in two parts. On or about 
January 1, NMFS will deposit QP based on the shorebased trawl 
allocation multiplied by the lower end of the range of potential 
harvest specifications for that year. After the

[[Page 74742]]

final harvest specifications are established later in the year, NMFS 
will deposit additional QP to the QS account.
* * * * *
    (C) Pacific halibut IBQ pounds annual allocation. NMFS will issue 
IBQ pounds for Pacific halibut annually by multiplying the QS permit 
owner's IBQ percent by the Shorebased IFQ Program component of the 
trawl bycatch mortality limit for that year. Deposits to QS accounts 
for Pacific halibut IBQ pounds will be made on or about January 1 each 
year. Mortality of any size Pacific halibut count against IBQ pounds.
    (1) In years where the Pacific halibut total constant exploitation 
yield is known by January 1, deposits to QS accounts will be made on or 
about January 1.
    (2) In years where the Pacific halibut total constant exploitation 
yield is not known by January 1, NMFS will issue QP in two parts. On or 
about January 1, NMFS will deposit QP based on some portion of the 
International Pacific Halibut Commission's staff recommended total 
constant exploitation yield from their interim meeting. After the final 
Pacific halibut total constant exploitation yield is established from 
the International Pacific Halibut Commission's annual meeting, NMFS 
will deposit additional QP to the QS account.
* * * * *
    (2) * * *
    (ii) Registration. A QS account will be established by NMFS with 
the issuance of a QS permit. The administrative functions associated 
with the Shorebased IFQ Program (e.g., account registration, landing 
transactions, and transfers) are designed to be accomplished online; 
therefore, a participant must have access to a computer with Internet 
access and must set up online access to their QS account to 
participate. The computer must have Internet browser software installed 
(e.g., Internet Explorer, Netscape, Mozilla Firefox); as well as the 
Adobe Flash Player software version 9.0 or greater. NMFS will mail 
initial QS permit owners instructions to set up online access to their 
QS account. NMFS will use the QS account to send messages to QS permit 
owners; it is important for QS permit owners to monitor their online QS 
account and all associated messages.
    (3) * * *
    (i) * * *
    (D) QS permits will not be renewed until SFD has received a 
complete application for a QS permit renewal, which includes payment of 
required fees, complete documentation of QS permit ownership on the 
Trawl Identification of Ownership Interest Form as required under 
paragraph (d)(4)(iv) of this section, a complete economic data 
collection form if required under Sec.  660.114. The QS permit renewal 
will be considered incomplete until the required information is 
submitted.
* * * * *
    (ii) * * *
    (A) Change in QS permit ownership. Ownership of a QS permit cannot 
be registered to another individual or entity. The QS permit owner 
cannot change or add additional individuals or entities as owners of 
the permit (i.e., cannot change the legal name of the permit owner(s) 
as given on the permit). Any change in ownership of the QS permit 
requires the new owner(s) to apply for a QS permit, and is subject to 
accumulation limits and approval by NMFS.
* * * * *
    (4) * * *
    (v) Divestiture. Accumulation limits will be calculated by first 
calculating the aggregate non-whiting QS limit and then the individual 
species QS or IBQ control limits. For QS permit owners (including any 
person who has ownership interest in the owner named on the permit) 
that are found to exceed the accumulation limits during the initial 
issuance of QS permits, an adjustment period will be provided after 
which they will have to completely divest of QS or IBQ in excess of the 
accumulation limits. QS or IBQ will be issued for amounts in excess of 
accumulation limits only for owners of limited entry permits as of 
November 8, 2008, if such ownership has been registered with NMFS by 
November 30, 2008. The owner of any permit acquired after November 8, 
2008, or if acquired earlier, not registered with NMFS by November 30, 
2008, will only be eligible to receive an initial allocation for that 
permit of those QS or IBQ that are within the accumulation limits; any 
QS or IBQ in excess of the accumulation limits will be redistributed to 
the remainder of the initial recipients of QS or IBQ in proportion to 
each recipient's initial allocation of QS or IBQ for each species. Any 
person that qualifies for an initial allocation of QS or IBQ in excess 
of the accumulation limits will be allowed to receive that allocation, 
but must divest themselves of the excess QS or IBQ during years three 
and four of the IFQ program. Holders of QS or IBQ in excess of the 
control limits may receive and use the QP or IBQ pounds associated with 
that excess, up to the time their divestiture is completed. At the end 
of year 4 of the IFQ program, any QS or IBQ held by a person (including 
any person who has ownership interest in the owner named on the permit) 
in excess of the accumulation limits will be revoked and redistributed 
to the remainder of the QS or IBQ owners in proportion to the QS or IBQ 
holdings in year 5. No compensation will be due for any revoked shares.
* * * * *
    (e) * * *
    (1) * * *
    (i) Gear exception. Vessels registered to a limited entry trawl 
permit using the following gears would not be required to cover 
groundfish catch with QP or Pacific halibut catch with IBQ pounds: Non-
groundfish trawl, gear types defined in the coastal pelagic species 
FMP, gear types defined in the highly migratory species FMP, salmon 
troll, crab pot, and limited entry fixed gear when the vessel also has 
a limited entry permit endorsed for fixed gear and has declared that it 
is fishing in the limited entry fixed gear fishery. Vessels using gears 
falling under this exception are subject to the open access fishery 
restrictions and limits when declared in to an open access fishery.
* * * * *
    (2) * * *
    (ii) Registration. A vessel account must be registered with the 
NMFS SFD Permits Office. A vessel account may be established at any 
time during the year. An eligible vessel owner must submit a request in 
writing to NMFS to establish a vessel account. The request must include 
the vessel name; USCG vessel registration number (as given on USCG Form 
1270) or state registration number, if no USCG documentation; all 
vessel owner names (as given on USCG Form 1270, or on state 
registration, as applicable); and business contact information, 
including: Address, phone number, fax number, and email. Requests for a 
vessel account must also include the following information: A complete 
economic data collection form as required under Sec.  660.113(b), (c) 
and (d), and a complete Trawl Identification of Ownership Interest Form 
as required under paragraph (e)(4)(ii) of this section. The request for 
a vessel account will be considered incomplete until the required 
information is submitted. Any change specified at paragraph (e)(3)(ii) 
of this section, including a change in the legal name of the vessel 
owner(s), will require the new owner to register with NMFS for a vessel 
account. A participant must have access to a computer with Internet 
access and must

[[Page 74743]]

set up online access to their vessel account to participate. The 
computer must have Internet browser software installed (e.g., Internet 
Explorer, Netscape, Mozilla Firefox); as well as the Adobe Flash Player 
software version 9.0 or greater. NMFS will mail vessel account owners 
instructions to set up online access to their vessel account. NMFS will 
use the vessel account to send messages to vessel owners in the 
Shorebased IFQ Program; it is important for vessel owners to monitor 
their online vessel account and all associated messages.
    (3) * * *
    (i) * * *
    (D) Vessel accounts will not be renewed until SFD has received a 
complete application for a vessel account renewal, which includes 
payment of required fees, a complete documentation of permit ownership 
on the Trawl Identification of Ownership Interest Form as required 
under paragraph (e)(4)(ii) of this section, and a complete economic 
data collection form as required under Sec.  660.114. The vessel 
account renewal will be considered incomplete until the required 
information is submitted.
* * * * *
    (ii) Change in vessel account ownership. Vessel accounts are non-
transferable and ownership of a vessel account cannot change (i.e., 
cannot change the legal name of the owner(s) as given on the vessel 
account). If the ownership of a vessel changes (as given on a USCG or 
state vessel registration documentation), then a new vessel account 
must be opened by the new owner in order for the vessel to participate 
in the Shorebased IFQ Program.
* * * * *
    (4) * * *
    (i) Vessel limits. For each IFQ species or species group specified 
in this paragraph, vessel accounts may not have QP or IBQ pounds in 
excess of the QP Vessel Limit (Annual Limit) in any year, and, for 
species covered by Unused QP Vessel Limits (Daily Limit), may not have 
QP or IBQ pounds in excess of the Unused QP Vessel Limit at any time. 
The QP Vessel Limit (Annual Limit) is calculated as unused available 
QPs plus used QPs (landings and discards) plus any pending outgoing 
transfer of QPs. The Unused QP Vessel Limits (Daily Limit) is 
calculated as unused available QPs plus any pending outgoing transfer 
of QPs. These vessel limits are as follows:
* * * * *
    (5) * * *
    (i) Surplus QP or IBQ pounds. A vessel account with a surplus of QP 
or IBQ pounds (unused QP or IBQ pounds) for any IFQ species at the end 
of the fishing year may carryover for use in the immediately following 
year an amount of unused QP or IBQ pounds up to its carry over limit. 
The carryover limit for the surplus is calculated as 10 percent of the 
cumulative total QP or IBQ pounds (used and unused, less any transfers 
or any previous carryover amounts) in the vessel account at the end of 
the year. To the extent allowed by the conservation requirements of the 
Magnuson-Stevens Act, NMFS will credit the carryover amount to the 
vessel account in the immediately following year once NMFS has 
completed its end-of-the-year account reconciliation. NMFS will notify 
vessel account owners through the online IFQ system of any additional 
QP or IBQ pounds resulting from a carryover of surplus pounds. If there 
is a decline in the ACL between the base year and the following year in 
which the QP or IBQ pounds would be carried over, the carryover amount 
will be reduced in proportion to the reduction in the ACL. Surplus QP 
or IBQ pounds may not be carried over for more than one year. Any 
amount of QP or IBQ pounds in a vessel account and in excess of the 
carryover amount will expire on December 31 each year and will not be 
available for any future use.
* * * * *
    (f) * * *
    (1) General. The first receiver site license authorizes the holder 
to receive, purchase, or take custody, control, or possession of an IFQ 
landing at a specific physical site onshore directly from a vessel. 
Each buyer of groundfish from a vessel making an IFQ landing must have 
a first receiver site license for each physical location where the IFQ 
landing is offloaded.
    (2) Issuance. (i) First receiver site licenses will only be issued 
to a person registered to a valid license issued by the state of 
Washington, Oregon, or California, and that authorizes the person to 
receive fish from a catcher vessel.
    (ii) A separate first receiver site license will be issued for each 
IFQ first receiver for each specific physical location where the IFQ 
first receiver will receive, purchase or take custody, control, or 
possession of an IFQ landing from a vessel.
    (iii) An IFQ first receiver may apply for a first receiver site 
license at any time during the calendar year.
    (iv) IFQ first receivers must reapply for a first receiver site 
license as specified at paragraphs (f)(6) and (7) of this section.
* * * * *
    (3) Application process. Persons interested in being licensed as an 
IFQ first receiver for a specific physical location must submit a 
complete application for a first receiver site license to NMFS, 
Northwest Region, Permits Office, ATTN: Catch Monitor Coordinator, 
Bldg. 1, 7600 Sand Point Way NE., Seattle, WA 98115. NMFS will only 
consider complete applications for approval. A complete application 
includes:
* * * * *
    (ii) * * *
    (D) The name and signature of the person submitting the application 
and the date of the application.
* * * * *
    (iii) A catch monitoring plan. All IFQ first receivers must prepare 
and operate under a NMFS-accepted catch monitoring plan for each 
specific physical location. A proposed catch monitoring plan detailing 
how the IFQ first receiver will meet each of the performance standards 
in paragraph (f)(3)(iii)(C) of this section must be included with the 
application. NMFS will not issue a first receiver site license to a 
person that does not have a current, NMFS-accepted catch monitoring 
plan.
* * * * *
    (B) Arranging an inspection. After receiving a complete application 
for a first receiver site license, including the proposed catch 
monitoring plan, NMFS will contact the applicant to schedule a site 
inspection.
* * * * *
    (C) * * *
    (11) Electronic fish ticket submittal. Describe how the electronic 
fish ticket submittal requirements specified at Sec.  660.113(b)(4)(ii) 
will be met.
* * * * *
    (5) Effective date. The first receiver site license is effective 
upon approval and issuance by NMFS and will be effective for one year 
from the date of NMFS issuance, or until the state license required by 
paragraph (f)(2)(i) of this section is no longer effective, whichever 
occurs first.
    (6) Reissuance in subsequent years. Existing license holders must 
reapply annually. If the existing license holder fails to reapply, the 
first receiver's site license will expire as specified in paragraph 
(f)(5) of this section. The IFQ first receiver will not be authorized 
to receive IFQ species from a vessel if their first receiver site 
license has expired.
    (7) Change in ownership of an IFQ first receiver. If there are any 
changes to

[[Page 74744]]

the owner of a first receiver registered to a first receiver site 
license during a calendar year, the first receiver site license is 
void. The new owner of the first receiver must apply to NMFS for a 
first receiver site license. A first receiver site license may not be 
registered to any other person.
* * * * *
    (h) * * *
    (1) * * *
    (i) Any vessel participating in the Shorebased IFQ Program must 
carry a NMFS-certified observer during any trip and must maintain 
observer or catch monitor coverage while in port until all fish from 
that trip have been offloaded, with the following exception. If the 
observer makes available to the catch monitor an observer program form 
reporting the weight and number of those overfished species identified 
in Sec.  660.112(b)(1)(xiii) that were retained onboard the vessel 
during that trip and noting any discrepancy in those species between 
the vessel operator and observer, the vessel would not need to maintain 
observer or catch monitor coverage on the vessel while in port and 
until the offload is complete. If a vessel delivers fish from an IFQ 
trip to more than one IFQ first receiver, the observer must remain 
onboard the vessel during any transit between delivery points.
* * * * *
    (j) * * *
    (1) Catch monitoring plan. All IFQ first receivers must operate 
under a NMFS-accepted catch monitoring plan for each specific physical 
location where IFQ landings will be received, purchased, or taken 
custody, control, or possession of.
* * * * *
    (l) * * *
    (2) AMP QP pass through. The 10 percent of non-whiting QS will be 
reserved for the AMP, but the resulting AMP QP will be issued to all QS 
permit owners in proportion to their non-whiting QS through 2014 or 
until alternative criteria for distribution of the AMP QP is developed 
and implemented, whichever is earlier.


0
18. In Sec.  660.150,
0
a. Revise paragraph (a) introductory text, (c)(2)(i)(A), (d)(1)(iii) 
introductory text, (d)(1)(iii)(A)(1)(vi), (f)(2)(i), (f)(3)(i), 
(g)(1)(iii), (g)(2)(iv), and (g)(3)(i) introductory text;
0
b. Add paragraphs (c)(2)(i)(B)(1)(i) and (ii), (c)(2)(i)(C), 
(c)(2)(ii)(C), (g)(2)(v) and (vi) to read as follows:


Sec.  660.150  Mothership (MS) Coop Program.

    (a) General. The MS Coop Program is a general term to describe the 
limited access program that applies to eligible harvesters and 
processors in the mothership sector of the Pacific whiting at-sea trawl 
fishery. Eligible harvesters and processors, including coop and non-
coop fishery participants, must meet the requirements set forth in this 
section of the Pacific Coast groundfish regulations. Each year a vessel 
registered to an MS/CV-endorsed permit may fish in either the coop or 
non-coop portion of the MS Coop Program, but not both. In addition to 
the requirements of this section, the MS Coop Program is subject to the 
following groundfish regulations of subparts C and D of this part:
* * * * *
    (c) * * *
    (2) * * *
    (i) * * *
    (A) Pacific whiting catch history assignment. Each MS/CV 
endorsement's associated catch history assignment of Pacific whiting 
will be annually allocated to a single permitted MS coop or to the non-
coop fishery. If multiple MS/CV endorsements and their associated CHAs 
are registered to a limited entry permit, that permit may be 
simultaneously registered to more than one MS coop or to both a coop(s) 
and non-coop fishery. Once assigned to a permitted MS coop or to the 
non-coop fishery, each MS/CV endorsement's catch history assignment 
remains with that permitted MS coop or non-coop fishery for that 
calendar year. When the mothership sector allocation is established, 
the information for the conversion of catch history assignment to 
pounds will be made available to the public through a Federal Register 
announcement and/or public notice and/or the NMFS Web site. The amount 
of whiting from the catch history assignment will be issued to the 
nearest whole pound using standard rounding rules (i.e. less than 0.5 
rounds down and 0.5 and greater rounds up).
    (1) In years where the Pacific whiting harvest specification is 
known by the start of the mothership sector primary whiting season 
specified at Sec.  660.131(b)(2)(iii)(B), allocation for Pacific 
whiting will be made by the start of the season.
    (2) In years where the Pacific whiting harvest specification is not 
known by the start of the mothership sector primary whiting season 
specified at Sec.  660.131(b)(2)(iii)(B), NMFS will issue Pacific 
whiting allocations in two parts. Before the start of the primary 
whiting season, NMFS will allocate Pacific whiting based on the MS Coop 
Program allocation percent multiplied by the lower end of the range of 
potential harvest specifications for Pacific whiting for that year. 
After the final Pacific whiting harvest specifications are established, 
NMFS will allocate any additional amounts of Pacific whiting to the MS 
Coop Program.
    (B) * * *
    (1) * * *
    (i) In years where the groundfish harvest specifications are known 
by the start of the mothership sector primary whiting season specified 
at Sec.  660.131(b)(2)(iii)(B), allocation of non-whiting groundfish 
species with an allocation will be made by the start of the season.
    (ii) In years where the groundfish harvest specifications are not 
known by the start of the mothership sector primary whiting season 
specified at Sec.  660.131(b)(2)(iii)(B), NMFS will issue allocations 
for non-whiting groundfish species with an allocation in two parts. 
Before the start of the whiting primary season, NMFS will allocate non-
whiting groundfish species with an allocation based on the MS Coop 
Program allocation percent multiplied by the lower end of the range of 
potential harvest specifications for those species for that year. After 
the final groundfish harvest specifications are established, NMFS will 
allocate any additional amounts of non-whiting groundfish species with 
an allocation to the MS Coop Program.
* * * * *
    (C) Rounding rules may affect distribution of the MS Coop Program 
allocations among the catch history assignments for individual MS/CV-
endorsed permits. NMFS will distribute such allocations to the maximum 
extent practicable, not to exceed the total allocation.
* * * * *
    (ii) * * *
    (C) If all MS/CV-endorsed permits are members of a single coop in a 
given year and there is not a non-coop fishery, then NMFS will allocate 
100 percent of the MS Coop Program allocation to that coop.
* * * * *
    (d) * * *
    (1) * * *
    (iii) Application for MS coop permit. The designated coop manager, 
on behalf of the coop entity, must submit a complete application form 
and include each of the items listed in paragraph (d)(1)(iii)(A) of 
this section. Only complete applications will be considered for 
issuance of a MS coop permit. An application will not be considered 
complete if any required application fees and annual coop reports have 
not been received by NMFS. NMFS may request additional

[[Page 74745]]

supplemental documentation as necessary to make a determination of 
whether to approve or disapprove the application. Application forms and 
instruction are available on the NMFS NWR Web site (http://www.nwr.noaa.gov) or by request from NMFS. The designated coop manager 
must sign the application acknowledging the responsibilities of a 
designated coop manager defined in paragraph (b)(3) of this section. 
For permit owners with more than one MS/CV endorsement and associated 
CHA, paragraph (g)(2)(iv)(D) of this section specifies how to join an 
MS coop(s).
    (A) * * *
    (1) * * *
    (vi) A clause stating that if a permit is registered to a new 
permit owner during the effective period of the coop agreement, any new 
owners of that member permit would be coop members required to comply 
with membership restrictions in the coop agreement.
* * * * *
    (f) * * *
    (2) * * *
    (i) Renewal. An MS permit must be renewed annually consistent with 
the limited entry permit regulations given at Sec.  660.25(b)(4). If a 
vessel registered to the MS permit will operate as a mothership in the 
year for which the permit is renewed, the permit owner must make a 
declaration as part of the permit renewal that while participating in 
the whiting fishery it will operate solely as a mothership during the 
calendar year to which its limited entry permit applies. Any such 
declaration is binding on the vessel for the calendar year, even if the 
permit is registered to a different permit owner during the year, 
unless it is rescinded in response to a written request from the permit 
owner. Any request to rescind a declaration must be made by the permit 
owner and granted in writing by the Regional Administrator before any 
unprocessed whiting has been taken on board the vessel that calendar 
year.
* * * * *
    (3) * * *
    (i) MS permit usage limit. No person who owns an MS permit(s) may 
register the MS permit(s) to vessels that cumulatively process more 
than 45 percent of the annual mothership sector Pacific whiting 
allocation. For purposes of determining accumulation limits, NMFS 
requires that permit owners submit a complete trawl ownership interest 
form for the permit owner as part of annual renewal for the MS permit. 
An ownership interest form will also be required whenever a new permit 
owner obtains an MS permit as part of a request for a change in permit 
ownership. Accumulation limits will be determined by calculating the 
percentage of ownership interest a person has in any MS permit. 
Determination of ownership interest will subject to the individual and 
collective rule.
* * * * *
    (g) * * *
    (1) * * *
    (iii) MS/CV endorsement and CHA non-severable. Subject to the 
regulations at paragraph (g)(2)(iv) and (v) of this section, an MS/CV 
endorsement and its associated CHA are permanently linked together as 
originally issued by NMFS and cannot be divided or registered 
separately to another limited entry trawl permit. An MS/CV endorsement 
and its associated CHA must be registered to a limited entry trawl 
permit and any change in endorsement registration must be to another 
limited entry trawl permit.
* * * * *
    (2) * * *
    (iv) Change in MS/CV endorsement registration. As specified at 
Sec.  660.25(b)(3)(v), each MS/CV endorsement has an associated CHA 
that is permanently linked as originally issued by NMFS and cannot be 
divided or registered separately to another limited entry trawl permit. 
An MS/CV endorsement and associated CHA must be registered to a limited 
entry trawl permit and any change in MS/CV endorsement registration 
must be to another limited entry trawl permit. Any change in MS/CV 
endorsement registration will be registered separately on the limited 
entry trawl permit. An MS/CV endorsement and its associated CHA cannot 
be registered to any other person other than the specified owner of the 
limited entry trawl permit to which it is registered.
    (A) Multiple MS/CV endorsements on a limited entry trawl permit. 
Multiple MS/CV endorsements and associated CHAs may be registered to a 
single limited entry trawl permit. If multiple endorsements are 
registered to a single limited entry trawl permit, the whiting CHA 
amount (expressed as a percent) will remain in the amount that it was 
originally issued by NMFS and will not be combined as a single larger 
CHA, unless two or more MS/CV-endorsed permits are combined for 
purposes of increasing the size endorsement, as specified at Sec.  
660.25(b)(4)(ii)(B). Any change in MS/CV endorsement registration may 
be disapproved if the person owning the limited entry trawl permit has 
aggregate CHA amounts in excess of the accumulation limits specified at 
paragraph (g)(3) of this section.
    (B) Application. A request for a change in MS/CV endorsement 
registration must be made between September 1 and December 31 of each 
year. Any transfer of MS/CV endorsement and its associated CHA to 
another limited entry trawl permit must be requested using a change in 
permit ownership form and the permit owner or an authorized 
representative of the permit owner must certify that the application is 
true and correct by signing and dating the form. In addition, the form 
must be notarized, and the permit owner selling the MS/CV endorsement 
and CHA must provide the sale price of the MS/CV endorsement and its 
associated CHA. If any assets in addition to the MS/CV endorsement and 
its associated CHA are included in the sale price, those assets must be 
itemized and described.
    (C) Effective date. Any change in MS/CV endorsement registration 
from one limited entry trawl permit to another limited entry trawl 
permit will be effective on January 1 in the year following the 
application period.
    (D) A limited entry trawl permit with multiple MS/CV endorsement 
registrations may be simultaneously registered to more than one coop or 
to both a coop(s) and non-coop fishery. In such cases, as part of the 
coop permit application process, specified at paragraph (d)(iii) of 
this section, the permit owner must specify on the coop permit 
application form which MS/CV endorsement and associated CHA is 
specifically registered to a particular coop or to the non-coop 
fishery.
    (v) Combination. An MS/CV-endorsed permit may be combined with one 
or more other limited entry trawl permits; the resulting permit will be 
a single permit with an increased size endorsement. If the MS/CV-
endorsed permit is combined with another limited entry trawl-endorsed 
permit other than a C/P-endorsed permit, the resulting permit will be 
MS/CV-endorsed. If an MS/CV-endorsed permit is combined with a C/P-
endorsed permit, the resulting permit will be exclusively a C/P-
endorsed permit, and will not have an MS/CV endorsement. If an MS/CV-
endorsed permit is combined with another MS/CV-endorsed permit, the 
combined catch history assignment of the permit(s) will be added to the 
active permit (the permit remaining after combination) and the other 
permit will be retired. If a trawl permit has more than one MS/CV 
endorsements and it is combined with a non C/P-endorsed trawl permit 
with no such endorsements, the MS/CV endorsements

[[Page 74746]]

on the resulting permit will be maintained as separate endorsements on 
the resulting permit. NMFS will not approve a permit combination if it 
results in a person exceeding the accumulation limits specified at 
paragraph (g)(3) of this section. Any request to combine permits is 
subject to the provision provided at Sec.  660.25(b), including the 
combination formula for resulting size endorsements.
    (vi) One-time request to undo a permit combination. If two or more 
MS/CV-endorsed permits have been combined before January 1, 2012 for 
purposes of increasing the vessel's size endorsement, a permit owner of 
the resulting combined permit will have until February 29, 2012 to undo 
that permit combination. The permit owner must submit a letter to NMFS 
requesting such action. The letter must be postmarked or hand-delivered 
to NMFS by the deadline.
* * * * *
    (3) * * *
    (i) MS/CV-endorsed permit ownership limit. No person shall own MS/
CV-endorsed permits for which the collective Pacific whiting allocation 
total is greater than 20 percent of the total mothership sector 
allocation. For purposes of determining accumulation limits, NMFS 
requires that permit owners submit a complete trawl ownership interest 
form for the permit owner as part of annual renewal of an MS/CV-
endorsed permit. An ownership interest form will also be required 
whenever a new permit owner obtains an MS/CV-endorsed permit as part of 
a request for a change in permit ownership. Accumulation limits will be 
determined by calculating the percentage of ownership interest a person 
has in any MS/CV-endorsed permit and the amount of the Pacific whiting 
catch history assignment given on the permit. Determination of 
ownership interest will be subject to the individual and collective 
rule.
* * * * *

0
19. In Sec.  660.160,
0
a. Revise paragraphs (a) introductory text, (d)(1)(iii)(A)(1)(iv), 
(e)(1)(i), (e)(2)(i);
0
b. Add paragraphs (c)(2)(i) and (ii), and (c)(3)(i)(A) and (B) to read 
as follows:


Sec.  660.160  Catcher/processor (C/P) Coop Program.

    (a) General. The C/P Coop Program is a limited access program that 
applies to vessels in the C/P sector of the Pacific whiting at-sea 
trawl fishery and is a single voluntary coop. Eligible harvesters and 
processors must meet the requirements set forth in this section of the 
Pacific Coast groundfish regulations. In addition to the requirements 
of this section, the C/P Coop Program is subject to the following 
groundfish regulations:
* * * * *
    (c) * * *
    (2) * * *
    (i) In years where the Pacific whiting harvest specification is 
known by the start of the catcher/processor sector primary whiting 
season specified at Sec.  660.131(b)(2)(iii)(A), allocation for Pacific 
whiting will be made by the start of the season.
    (ii) In years where the Pacific whiting harvest specification is 
not known by the start of the catcher/processor sector primary whiting 
season specified at Sec.  660.131(b)(2)(iii)(A), NMFS will issue 
Pacific whiting allocations in two parts. Before the start of the 
primary whiting season, NMFS will allocate Pacific whiting based on the 
C/P Coop Program allocation percent multiplied by the lower end of the 
range of potential harvest specifications for Pacific whiting for that 
year. After the final Pacific whiting harvest specifications are 
established, NMFS will allocate any additional amounts of Pacific 
whiting to the C/P Coop Program.
    (3) * * *
    (i) * * *
    (A) In years where the groundfish harvest specifications are known 
by the start of the catcher/processor sector primary whiting season 
specified at Sec.  660.131(b)(2)(iii)(A), allocation of non-whiting 
groundfish species with an allocation will be made by the start of the 
season.
    (B) In years where the groundfish harvest specifications are not 
known by the start of the catcher/processor sector primary whiting 
season specified at Sec.  660.131(b)(2)(iii)(A), NMFS will issue 
allocations for non-whiting groundfish species with an allocation in 
two parts. Before the start of the primary whiting season, NMFS will 
allocate non-whiting groundfish species with an allocation based on the 
C/P Coop Program allocation percent multiplied by the lower end of the 
range of potential harvest specifications for those species for that 
year. After the final groundfish harvest specifications are 
established, NMFS will allocate any additional amounts of non-whiting 
groundfish species with an allocation to the C/P Coop Program.
* * * * *
    (d) * * *
    (1) * * *
    (iii) * * *
    (A) * * *
    (1) * * *
    (iv) A clause stating that if a permit is registered to a new 
permit owner during the effective period of the coop agreement, any new 
owners of that member permit would be coop members and are required to 
comply with membership restrictions in the coop agreement.
* * * * *
    (e) * * *
    (1) * * *
    (i) Non-severable. A C/P endorsement is not severable from the 
limited entry trawl permit, and therefore, the endorsement may not be 
registered to another permit owner or to another vessel separately from 
the limited entry trawl permit.
* * * * *
    (2) * * *
    (i) Renewal. A C/P-endorsed permit must be renewed annually 
consistent with the limited entry permit regulations given at Sec.  
660.25(b)(4). If a vessel registered to the C/P-endorsed permit will 
operate as a mothership in the year for which the permit is renewed, 
the permit owner must make a declaration as part of the permit renewal 
that while participating in the whiting fishery they will operate 
solely as a mothership during the calendar year to which its limited 
entry permit applies. Any such declaration is binding on the vessel for 
the calendar year, even if the permit is registered to a different 
permit owner during the year, unless it is rescinded in response to a 
written request from the permit owner. Any request to rescind a 
declaration must be made by the permit owner and granted in writing by 
the Regional Administrator before any unprocessed whiting has been 
taken on board the vessel that calendar year.
* * * * *

0
20. In Sec.  660.212, revise paragraph (d)(3) to read as follows:


Sec.  660.212  Fixed gear fishery--prohibitions.

* * * * *
    (d) * * *
    (3) Process sablefish taken at-sea in the limited entry fixed gear 
sablefish primary fishery defined at Sec.  660.231, from a vessel that 
does not have a sablefish at-sea processing exemption, described at 
Sec.  660.25(b)(6)(i).


0
21. Revise 660.220 to read as follows:


Sec.  660.220  Fixed gear fishery--crossover provisions.

    The crossover provisions listed at Sec.  660.60(h)(7), apply to 
vessels fishing in the limited entry fixed gear fishery.


0
22. In Sec.  660.231, revise paragraph (b)(4)(i) and (b)(4)(ii)(A) to 
read as follows:

[[Page 74747]]

Sec.  660.231  Limited entry fixed gear sablefish primary fishery.

* * * * *
    (b) * * *
    (4) * * *
    (i) The person, partnership or corporation had ownership interest 
in a limited entry permit with a sablefish endorsement prior to 
November 1, 2000. A person who has ownership interest in a partnership 
or corporation that owned a sablefish-endorsed permit as of November 1, 
2000, but who did not individually own a sablefish-endorsed limited 
entry permit as of November 1, 2000, is not exempt from the owner-on-
board requirement when he/she leaves the partnership or corporation and 
purchases another permit individually. A person, partnership, or 
corporation that is exempt from the owner-on-board requirement may sell 
all of their permits, buy another sablefish-endorsed permit within up 
to a year from the date the last change in permit ownership was 
approved, and retain their exemption from the owner-on-board 
requirements. Additionally, a person, partnership, or corporation that 
qualified for the owner-on-board exemption, but later divested their 
interest in a permit or permits, may retain rights to an owner-on-board 
exemption as long as that person, partnership, or corporation purchases 
another permit by March 2, 2007. A person, partnership or corporation 
could only purchase a permit if it has not added or changed individuals 
since November 1, 2000, excluding individuals that have left the 
partnership or corporation, or that have died.
    (ii) * * *
    (A) Evidence of death of the permit owner shall be provided to NMFS 
in the form of a copy of a death certificate. In the interim before the 
estate is settled, if the deceased permit owner was subject to the 
owner-on-board requirements, the estate of the deceased permit owner 
may send a letter to NMFS with a copy of the death certificate, 
requesting an exemption from the owner-on-board requirements. An 
exemption due to death of the permit owner will be effective only until 
such time that the estate of the deceased permit owner has registered 
the deceased permit owner's permit to a beneficiary or up to three 
years after the date of death as proven by a death certificate, 
whichever is earlier. An exemption from the owner-on-board requirements 
will be conveyed in a letter from NMFS to the estate of the permit 
owner and is required to be on the vessel during fishing operations.
* * * * *

0
23. Revise 660.320 to read as follows:


Sec.  660.320  Open access fishery--crossover provisions.

    The crossover provisions listed at Sec.  660.60(h)(7), apply to 
vessels fishing in the open access fishery.


0
24. In Sec.  660.333, revise paragraphs (b) through (d) to read as 
follows:


Sec.  660.333  Open access non-groundfish trawl fishery--management 
measures.

* * * * *
    (b) Participation in the ridgeback prawn fishery. A trawl vessel 
will be considered participating in the open access, non-groundfish 
trawl ridgeback prawn fishery if:
    (1) It is declared ``non-groundfish trawl gear for ridgeback 
prawn'' under Sec.  660.13(d)(5)(iv), regardless of whether it is 
registered to a Federal limited entry trawl-endorsed permit; and
    (2) The landing includes ridgeback prawns taken in accordance with 
California Fish and Game Code, section 8595, which states: ``Prawns or 
shrimp may be taken for commercial purposes with a trawl net, subject 
to Article 10 (commencing with Section 8830) of Chapter 3.''
    (c) Participation in the California halibut fishery. A trawl vessel 
will be considered participating in the open access, non-groundfish 
trawl California halibut fishery if:
    (1) It is declared ``non-groundfish trawl gear for California 
halibut'' under Sec.  660.13(d)(5)(iv), regardless of whether it is 
registered to a Federal limited entry trawl-endorsed permit;
    (2) All fishing on the trip takes place south of Pt. Arena, CA 
(38[deg]57.50' N. lat.); and
    (3) The landing includes California halibut of a size required by 
California Fish and Game Code section 8392, which states: ``No 
California halibut may be taken, possessed or sold which measures less 
than 22 in (56 cm) in total length, unless it weighs 4-lb (1.8144 kg) 
or more in the round, 3 and one-half lbs (1.587 kg) or more dressed 
with the head on, or 3-lbs (1.3608 kg) or more dressed with the head 
off. Total length means the shortest distance between the tip of the 
jaw or snout, whichever extends farthest while the mouth is closed, and 
the tip of the longest lobe of the tail, measured while the halibut is 
lying flat in natural repose, without resort to any force other than 
the swinging or fanning of the tail.''
    (d) Participation in the sea cucumber fishery. A trawl vessel will 
be considered to be participating in the open access, non-groundfish 
trawl sea cucumber fishery if:
    (1) It is declared ``non-groundfish trawl gear for sea cucumber'' 
under Sec.  660.13(d)(5)(iv), regardless of whether it is registered to 
a Federal limited entry trawl-endorsed permit;
    (2) All fishing on the trip takes place south of Pt. Arena, CA 
(38[deg]57.50' N. lat.); and
    (3) The landing includes sea cucumbers taken in accordance with 
California Fish and Game Code, section 8405, which requires a permit 
issued by the State of California.
* * * * *
[FR Doc. 2011-30734 Filed 11-30-11; 8:45 am]
BILLING CODE 3510-22-P