[Federal Register Volume 77, Number 221 (Thursday, November 15, 2012)]
[Notices]
[Pages 68106-68107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-27820]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

RIN 0648-XC352


Second Fishing Capacity Reduction Program for the Longline 
Catcher Processor Subsector of the Bering Sea and Aleutian Islands Non-
Pollock Groundfish Fishery

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

ACTION: Notice of reduction payment tender and industry fee collection 
system effective date.

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SUMMARY: The FY 2005 Appropriations Act (the Appropriations Act) 
authorized a capacity reduction program for the Longline Catcher 
Processor Subsector of the Bering Sea and Aleutian Islands non-pollock 
groundfish fishery (Reduction Fishery). Pursuant to this authorization, 
the Freezer Longline Conservation Cooperative (FLCC) conducted the bid 
selection process and submitted a reduction plan to NMFS to purchase a 
single latent permit within the Reduction Fishery. On September 24, 
2012, the National Marine Fisheries Service published regulations for 
the second fishing capacity reduction program for this Reduction 
Fishery. NMFS conducted a successful referendum approving the reduction 
loan repayment fees of $2,700,000 which post-reduction harvesters will 
repay over a 30-year period. Accordingly, NMFS is preparing to tender a 
reduction payment to the accepted bidder and implement an industry fee 
collection system to repay the loan.

DATES: The public has until December 17, 2012 to inform NMFS of any 
holding, owning, or retaining claims that conflict with the 
representations of bids as presented by the FLCC. Fee collection will 
begin on January 1, 2013.

ADDRESSES: Send comments about this notice to Paul Marx, Chief, 
Financial Services Division, NMFS, Attn: Second Non-Pollock Groundfish 
Longline Catcher Processor Buyback, 1315 East-West Highway, Silver 
Spring, MD 20910 (see FOR FURTHER INFORMATION CONTACT).

FOR FURTHER INFORMATION CONTACT: Michael A. Sturtevant at (301) 427-
8799, fax (301) 713-1306, or [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    In 2007, NMFS approved and implemented a $35.7 million fishing 
capacity reduction loan program for the Longline Catcher Processor 
Subsector, which represented the full amount authorized for that 
subsector of the $75 million authorized for the entire BSAI non-pollock 
groundfish fishery. The initial program removed three fishing vessels 
and 12 fishing licenses and permits for a loan amount of $35 million. 
All long-line catcher processors harvesting non-pollock groundfish were 
required to pay and forward a fee to NMFS to repay the loan. The 
original fee assessment was $0.02 per pound caught with payment and 
collection beginning on October 24, 2007. That rate has since been 
reduced to $0.0145 per pound.
    None of the other BSAI non-pollock groundfish subsectors have 
expressed an interest in implementing a capacity reduction program for 
their subsector. A provision in the Appropriations Act permits the 
Secretary of Commerce to make available any of the unused loan amounts, 
originally allocated for each subsector, for capacity reduction 
programs in any of the subsectors after January 1, 2009.
    Members of the BSAI Longline Catcher Processor Subsector informed 
NMFS that they wished to access the remaining loan amounts to undertake 
a second buyback. To implement this next buyback, the FLCC on behalf of 
the Reduction Fishery was required by the Appropriations Act to draft 
and submit a Reduction Plan to NMFS. On August 27, 2010, the FLCC 
submitted a Reduction Plan to access $2.7 million of the total 
remaining $39,105,450 funds to purchase a single latent permit.
    NMFS published proposed program regulations on July 30, 2012 (77 FR 
44572), and final program regulations on September 24, 2012 (77 FR 
58775), to implement the second reduction program. Interested persons 
should review these for further program details.

II. Present Status

    NMFS conducted a referendum to determine the industry's willingness 
to repay a fishing capacity reduction loan to purchase the permit 
identified in the reduction plan. NMFS mailed ballots to 37 holders of 
record of LLP licenses in the fishery who were eligible to vote in the 
referendum. The voting period opened on October 24, 2012, and closed on 
November 7, 2012. NMFS received 32 timely and valid votes; all 32 of 
the votes approved the fees. This exceeded majority of permit holders 
(19) required for industry fee system approval. Consequently, the 
referendum was successful and permit holders approved the industry fee 
system. Accordingly, the reduction contract is in full force and effect 
and NMFS is preparing to tender and disburse a reduction payment to the 
selected bidder.

III. Reduction Payment Tender

    NMFS publishes this notice to inform the public before tendering 
the reduction payment to Permit Holding LLC (the selected bidder), for 
LLP license LLG2085 with area endorsements for Bering Sea Catcher/
Processor Hook and Longline and Aleutian Islands Catcher/Processor Hook 
and Longline. NMFS will tender the reduction payment on or about 
December 17, 2012. When NMFS tenders the reduction payment to Permit 
Holding LLC, the selected bidder must permanently stop all further 
fishing with the reduction permit it has relinquished. The selected 
bidder, in accordance with section 5 of the relinquishment contract, 
must notify all creditors or other parties with security interests in 
the reduction permit.
    This notice provides the public (including creditors or other 
parties) 30 days from publication of this notice to advise NMFS in 
writing of any holding, owning, or retaining claims that conflict with 
the representations of the bid as presented by the FLCC.

IV. Fee System Effective Date

    This notice also establishes the reduction loan repayment fee's 
effective date in accordance with subpart M to 50 CFR 600.1108. The 
second BSAI non-pollock groundfish longline catcher processor program 
fee payment and

[[Page 68107]]

collection will begin on January 1, 2013. Starting on this date, 
additional fees will be assessed and collected on all harvested Pacific 
cod, including that used for bait or discarded, on all members of this 
subsector. The initial fee applicable to this second loan in the BSAI 
longline program's reduction fishery is $0.001 per pound. Subsector 
members must pay and collect the fee in the manner set out in 50 CFR 
600.1108 and the framework rule. Consequently, all subsector members 
may wish to read subpart L to 50 CFR 600.1013 to understand how fish 
harvesters must pay and fish buyers must collect the fee.

    Dated: November 9, 2012.
Dana Flowerlake,
Acting Deputy Director, Office of Management and Budget, National 
Marine Fisheries Service.
[FR Doc. 2012-27820 Filed 11-14-12; 8:45 am]
BILLING CODE 3510-22-P