[Federal Register Volume 78, Number 125 (Friday, June 28, 2013)]
[Proposed Rules]
[Pages 39122-39155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-15543]



[[Page 39121]]

Vol. 78

Friday,

No. 125

June 28, 2013

Part III





Department of Commerce





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





National Oceanic and Atmospheric Administration





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





50 CFR Parts 300 and 679





Pacific Halibut Fisheries; Catch Sharing Plan for Guided Sport and 
Commercial Fisheries in Alaska; Proposed Rule

  Federal Register / Vol. 78 , No. 125 / Friday, June 28, 2013 / 
Proposed Rules  

[[Page 39122]]


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

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Parts 300 and 679

[Docket No. 101027534-3546-01]
RIN 0648-BA37


Pacific Halibut Fisheries; Catch Sharing Plan for Guided Sport 
and Commercial Fisheries in Alaska

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

ACTION: Proposed rule; request for comments.

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

SUMMARY: NMFS proposes regulations that would implement a catch sharing 
plan for the guided sport (charter) and commercial fisheries for 
Pacific halibut in waters of International Pacific Halibut Commission 
(IPHC) Regulatory Areas 2C (Southeast Alaska) and 3A (Central Gulf of 
Alaska). If approved, this catch sharing plan will replace the 
Guideline Harvest Level program, define an annual process for 
allocating halibut between the charter and commercial fisheries in Area 
2C and Area 3A, and establish allocations for each fishery. The 
commercial fishery will continue to be managed under the Individual 
Fishing Quota system. To allow flexibility for individual commercial 
and charter fishery participants, the proposed catch sharing plan also 
will authorize annual transfers of commercial halibut quota to charter 
halibut permit holders for harvest in the charter fishery. This action 
is necessary to achieve the halibut fishery management goals of the 
North Pacific Fishery Management Council.

DATES: Written comments must be received by August 12, 2013.

ADDRESSES: You may submit comments, identified by FDMS Docket Number 
NOAA-NMFS-2011-0180, by any of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal eRulemaking Portal. Go to www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2011-0180, click the ``Comment Now!'' icon, 
complete the required fields, and enter or attach your comments.
     Mail: Submit written comments to Glenn Merrill, Assistant 
Regional Administrator, Sustainable Fisheries Division, Alaska Region 
NMFS, Attn: Ellen Sebastian. Mail comments to P.O. Box 21668, Juneau, 
AK 99802-1668.
     Fax: Address written comments to Glenn Merrill, Assistant 
Regional Administrator, Sustainable Fisheries Division, Alaska Region 
NMFS, Attn: Ellen Sebastian. Fax comments to 907-586-7557.
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period, 
may not be considered by NMFS. All comments received are a part of the 
public record and will generally be posted for public viewing on 
www.regulations.gov without change. All personal identifying 
information (e.g., name, address, etc.), confidential business 
information, or otherwise sensitive information submitted voluntarily 
by the sender will be publicly accessible. NMFS will accept anonymous 
comments (enter ``N/A'' in the required fields if you wish to remain 
anonymous). Attachments to electronic comments will be accepted in 
Microsoft Word, Excel, or Adobe PDF file formats only.
    Electronic copies of the Environmental Assessment/Regulatory Impact 
Review/Initial Regulatory Flexibility Analysis (EA/RIR/IRFA) prepared 
for this action are available from http://www.regulations.gov or from 
the NMFS Alaska Region Web site at http://alaskafisheries.noaa.gov.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
rule may be submitted to NMFS at the above address and by email to 
[email protected] or fax to 202-395-7285.

FOR FURTHER INFORMATION CONTACT: Julie Scheurer, 907-586-7228.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Current Management of the Halibut Fisheries
    A. Regulatory Authority
    B. Background on the Halibut Fishery
II. History of Management in the Charter Halibut Fisheries
    A. Southeast Alaska (Area 2C)
    B. Southcentral Alaska (Area 3A)
III. Proposed Catch Sharing Plan (CSP) for Area 2C and Area 3A
    A. Overview
    B. Annual Combined Catch Limit
    C. Annual Commercial Fishery and Charter Fishery Allocations
    1. Calculation of Annual Fishery Allocations and Catch Limits--
Area 2C
    2. Calculation of Annual Fishery Allocations and Catch Limits--
Area 3A
    D. Calculation of Annual Fishery Catch Limits
    E. Annual Process for Setting Charter Management Measures
    F. Other Restrictions Under the CSP
IV. Guided Angler Fish (GAF)
    A. Overview of GAF
    B. Eligibility Criteria to Transfer Between IFQ and GAF
    C. Process to Complete a Transfer Between IFQ and GAF
    1. Application to Transfer Between IFQ and GAF
    2. Conversion of IFQ Pounds to Number of GAF
    3. GAF Permits
    4. Voluntary and Automatic Returns of GAF to IFQ
    D. GAF Transfer Restrictions
    E. Community Quota Entity GAF Transfer Restrictions
    F. GAF Reporting Requirements
    G. Cost Recovery for GAF
V. Other Regulatory Changes
VI. Classification

I. Current Management of the Halibut Fisheries

A. Regulatory Authority

    The International Pacific Halibut Commission (IPHC) and NMFS manage 
fishing for Pacific halibut (Hippoglossus stenolepis) through 
regulations established under authority of the Northern Pacific Halibut 
Act of 1982 (Halibut Act). The IPHC adopts regulations governing the 
Pacific halibut fishery under the Convention between the United States 
and Canada for the Preservation of the Halibut Fishery of the North 
Pacific Ocean and Bering Sea (Convention), signed at Ottawa, Ontario, 
on March 2, 1953, as amended by a Protocol Amending the Convention 
(signed at Washington, DC, on March 29, 1979). For the United States, 
regulations developed by the IPHC are subject to acceptance by the 
Secretary of State with concurrence from the Secretary of Commerce. 
After acceptance by the Secretary of State and the Secretary of 
Commerce, NMFS publishes the IPHC regulations in the Federal Register 
as annual management measures pursuant to 50 CFR 300.62. The final rule 
implementing IPHC regulations for the 2013 fishing season was published 
March 15, 2013, at 78 FR 16423. IPHC regulations affecting sport 
fishing for halibut and vessels in the charter fishery in Areas 2C and 
3A may be found in sections 3, 25, and 28 of that final rule.
    The Halibut Act, at sections 773c(a) and (b), provides the 
Secretary of Commerce with general responsibility to carry out the 
Convention and the Halibut Act. In adopting regulations that may be 
necessary to carry out the purposes and objectives of the Convention 
and the Halibut Act, the Secretary of Commerce is directed to consult 
with the Secretary of the department in which the U.S. Coast Guard is 
operating, currently the Department of Homeland Security.

[[Page 39123]]

    The Halibut Act, at section 773c(c), also provides the North 
Pacific Fishery Management Council (Council) with authority to develop 
regulations, including limited access regulations, that are in addition 
to, and not in conflict with, approved IPHC regulations. Regulations 
developed by the Council may be implemented by NMFS only after approval 
by the Secretary of Commerce. The Council has exercised this authority 
in the development of subsistence halibut fishery management measures, 
codified at 50 CFR 300.65, and the guideline harvest level program and 
limited access program for charter operators in the charter fishery, 
codified at 50 CFR 300.67. The Council also developed the Individual 
Fishing Quota (IFQ) Program for the commercial halibut and sablefish 
fisheries, codified at 50 CFR part 679, under the authority of section 
773 of the Halibut Act and section 303(b) of the Magnuson-Stevens 
Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.).

B. Background on the Halibut Fishery

    The harvest of halibut in Alaska occurs in three fisheries--the 
commercial, sport, and subsistence fisheries. The commercial halibut 
fishery is a fixed gear fishery managed under an Individual Fishing 
Quota program. The sport fishery includes unguided and guided anglers. 
Guided anglers are commonly called ``charter'' anglers because they 
fish from chartered vessels. The subsistence fishery allows rural 
residents and members of an Alaska Native tribe to retain halibut for 
personal use or customary trade.
    The IPHC annually determines the amount of halibut that may be 
removed from the resource by regulatory area in all Convention waters. 
The IPHC estimates the exploitable biomass of halibut using a 
combination of harvest data from the commercial, sport, and subsistence 
fisheries, and information collected during scientific surveys and 
sampling of bycatch in other fisheries. The IPHC calculates a range of 
total allowable removals of halibut from all sources in an IPHC 
regulatory area based on the annual stock assessment and apportionment 
process conducted by the IPHC. The range of total allowable removals is 
referred to as the Total Constant Exploitation Yield (CEY) and 
represents the total removals for that area in the coming year at 
varying levels of harvest and risk. The Total CEY is expressed in net 
pounds, which is defined as the weight of halibut from which the gills, 
entrails, head, and ice and slime have been removed. The Fishery CEY 
represents the difference between the Total CEY and all other removals, 
including sport, subsistence, bycatch, and waste. The Fishery CEY is 
the basis for the IPHC's determination of catch limits for the directed 
commercial fixed gear halibut fishery. The IPHC considers staff 
recommendations, harvest policy, and stakeholder input when it 
determines commercial catch limits.
    Pursuant to Article III of the Convention, the IPHC must develop 
and maintain halibut stocks to levels that will permit the optimum 
yield for the halibut fisheries. The IPHC addresses this objective 
through a harvest strategy that is designed to balance the benefits of 
yield with the risk of spawning biomass dropping below a minimum level. 
To the extent possible, the IPHC accounts for all sources of fishing 
mortality within the Total CEY and establishes the commercial fixed 
gear catch limits only after subtracting waste in the commercial 
halibut fishery and halibut removals from other non-halibut commercial 
fisheries and non-commercial uses. Because the IPHC subtracts non-
commercial halibut fishery removals (including charter harvest or the 
guideline harvest level) from the Total CEY, and because the charter 
fishery harvest increased during the 1990s and early 2000s, the amount 
of halibut available for the commercial halibut fishery decreased 
relative to the long-term historic proportion of the fishery available 
to the commercial fishery. The commercial IFQ halibut fishery therefore 
views charter harvests in excess of established policies or goals as 
uncompensated reallocations of fishing privileges.

II. History of Management in the Charter Halibut Fisheries

    This section provides an overview of management policies applicable 
to charter halibut fishing in Areas 2C and 3A. Additional details on 
the management measures specific to each regulatory area are addressed 
later in this preamble. Until 2007, harvest restrictions for the 
charter halibut fisheries were developed by the IPHC. In 1973, the IPHC 
first adopted halibut sport fishing regulations to provide consistent 
and uniform halibut sport fishing regulations in all regulatory areas. 
At that time, the IPHC established that the sport fishing season for 
halibut would occur from March 1 through October 31, and limited the 
number of halibut that anglers could retain by imposing a daily three-
fish bag limit. From 1984 through 1997, the IPHC required charter 
vessels to have IPHC licenses. Since the initial three-fish bag limit 
was established in 1973, the IPHC has adjusted the bag limit to vary 
among one, two, and three fish per angler per day. The current bag 
limit under IPHC regulations is two fish of any size per day unless a 
more restrictive bag limit applies in Federal regulations. There is not 
a more restrictive limit currently in effect in Federal regulations for 
Area 3A, but NMFS has established a more restrictive one-fish bag limit 
for charter vessels for Area 2C as described in the following section 
of this preamble.
    In 1997, the Council adopted separate guideline harvest levels 
(GHLs) for the Area 2C and Area 3A charter halibut fisheries. The 
proposed and final rules implementing the current GHLs were published 
in the Federal Register in 2002 and 2003, respectively (67 FR 3867, 
January 2, 2002; 68 FR 47256, August 8, 2003). These regulations are 
codified at 50 CFR 300.65. A more detailed description of GHL 
management and the Council's rationale behind such management can be 
found in the proposed and final rules cited above; a brief description 
follows.
    The GHLs represent pre-season specifications of acceptable annual 
harvests in the charter halibut fisheries in Areas 2C and 3A. To 
accommodate some growth in the charter halibut fishery, while 
approximating historical levels, the Council recommended the GHLs were 
to be based on 125 percent of the average charter halibut fishery 
harvest from 1995 through 1999 in each area. For Area 2C the maximum 
GHL was set at 1,432,000 pounds (lb), or 649.5 metric tons (mt), net 
weight, and in Area 3A the maximum GHL was set at 3,650,000 lb (1,655.6 
mt) net weight. The Council recommended a system of step-wise 
adjustments to the GHLs to accommodate decreases and subsequent 
increases in halibut abundance. The Council recommended this system of 
GHL adjustments to provide a relatively predictable and stable harvest 
target for the charter halibut fishery. Although the Council had a 
policy that charter halibut fisheries should not exceed the GHL, the 
2003 GHL regulations did not actually limit charter halibut fishery 
harvests. Rather, the GHL regulations set benchmarks for use in future 
regulations, and harvest restrictions could be adopted in the year 
following a year that the GHL was exceeded.
    In response to concerns that growth in the charter halibut fishery 
was resulting in overcrowding in productive halibut grounds, the 
Council recommended, and the Secretary of Commerce adopted, a limited 
access program to provide stability for the charter halibut fishery and 
decrease the need for regulatory adjustments affecting charter vessel 
anglers. NMFS published a final rule on

[[Page 39124]]

January 5, 2010 (75 FR 554), that implemented the charter halibut 
limited access program (CHLAP) in 2011. This rule capped the number of 
charter businesses that could operate in Areas 2C and 3A to limit 
further expansion of the industry.
    Under the CHLAP, NMFS initially issued permits to those businesses 
that historically and recently participated in the charter halibut 
fishery. The CHLAP also issues a limited number of permits to non-
profit corporations representing specified rural communities and to 
U.S. military morale programs for service members. Beginning February 
1, 2011, all vessel operators in Areas 2C and 3A with charter anglers 
on board were required to have an original, valid permit on board 
during every charter halibut vessel fishing trip. Charter Halibut 
Permits (CHPs) are endorsed for the appropriate regulatory area and, 
except for military CHPs, the number of anglers catching and retaining 
halibut on a trip. In October 2012, NMFS published an implementation 
report for the CHLAP after all interim permits had been adjudicated and 
resolved. This report is available at http://alaskafisheries.noaa.gov/ram/charter/chp_review1012.pdf. At the time of publication, a total of 
972 charter halibut permits had been issued to 356 permit holders in 
Area 2C and 439 permit holders in Area 3A. Of these 972 CHPs, 711 are 
transferable. Transfers of permits allow new entrants into the charter 
halibut fishery. With the exception of initial recipients of CHPs who 
meet specified requirements under 50 CFR 300.67, permit-holders are 
limited to 5 permits.

A. Southeast Alaska (Area 2C)

    The Area 2C charter halibut harvest exceeded its GHL every year 
during 2004 through 2010, despite management measures designed to 
control charter halibut harvest in this area (Table 1).

        Table 1--Area 2C Guideline Harvest Level and Estimated Charter Halibut Harvest From 2004 to 2013
                                        [Rounded to the nearest 1,000 lb]
----------------------------------------------------------------------------------------------------------------
               Year                              Area 2C GHL                     Area 2C estimated harvest
----------------------------------------------------------------------------------------------------------------
2004.............................  1,432,000 lb (649.5 mt)                 1,750,000 lb (793.8 mt)
2005.............................  1,432,000 lb (649.5 mt)                 1,952,000 lb (885.4 mt)
2006.............................  1,432,000 lb (649.5 mt)                 1,804,000 lb (818.3 mt)
2007.............................  1,432,000 lb (649.5 mt)                 1,918,000 lb (870.0 mt)
2008.............................  931,000 lb (422.3 mt)                   1,999,000 lb (906.7 mt)
2009.............................  788,000 lb (357.4 mt)                   1,245,000 lb (564.7 mt)
2010.............................  788,000 lb (357.4 mt)                   1,086,000 lb (492.6 mt)
2011.............................  788,000 lb (357.4 mt)                   344,000 lb (156.0 mt)
2012.............................  931,000 lb (422.3 mt)                   645,000 lb (292.6 mt) *
2013.............................  788,000 lb (357.4 mt)                   not available
----------------------------------------------------------------------------------------------------------------
* Harvest estimate for 2012 is preliminary.

    To ensure that the halibut stocks would continue to develop to a 
level that would allow optimum yield in the halibut fisheries, 
beginning in 2007 the IPHC and Council have recommended, and the 
Secretary of Commerce has adopted, a number of regulatory measures in 
Area 2C to limit charter halibut harvest to the Area 2C GHL. In 2007, 
NMFS implemented regulations to require that under the two-fish daily 
bag limit, one of the harvested halibut could not exceed 32 inches 
head-on length (81.3 cm) (72 FR 30714, June 4, 2007). These regulations 
were in effect for 2007 and 2008. In 2008, the GHL dropped to 931,000 
lb (422.3 mt) in Area 2C and charter halibut harvest was more than 
double the GHL.
    In 2009, the GHL dropped again to 788,000 lb (357.4 mt), prompting 
NMFS to implement additional restrictions on Area 2C charter anglers: A 
one-fish daily bag limit superseded the two-fish with maximum size 
rule, harvest by the charter vessel guide and crew was prohibited, and 
a line limit equal to the number of charter vessel anglers on board, 
but not to exceed six lines was implemented (74 FR 21194, May 6, 2009). 
This rule was challenged by participants in the charter halibut 
fishery, and the U.S. District Court for the District of Columbia 
granted summary judgment in favor of the Secretary of Commerce on 
November 23, 2009 (Van Valin v. Locke, 671 F. Supp 2d 1 D.D.C. 2009). 
The one halibut per day bag limit for charter vessel anglers remained 
in effect for Area 2C for the 2009 and 2010 seasons, yet catch still 
exceeded the GHL by approximately 58 percent in each of these years.
    Because NMFS imposed no additional charter restrictions in 2011, 
the IPHC believed that charter halibut harvest was likely to exceed the 
788,000 lb GHL again. As such, the IPHC recommended and the Secretary 
of State accepted, with the concurrence of the Secretary of Commerce, a 
daily bag limit for charter vessel anglers in Area 2C of one halibut 
with a maximum length of 37 inches (94.0 cm) per day (76 FR 14300, 
March 16, 2011). The 2011 Area 2C charter halibut harvest under the 37-
inch maximum length rule was estimated at 344,000 lb, significantly 
below the GHL of 788,000 lb. The Council determined that it would be 
appropriate for IPHC to consider alternative management measures to 
limit charter halibut harvest to the GHL, and requested an analysis of 
two options in addition to a maximum size limit for management measures 
for the 2012 Area 2C charter halibut fishery to limit charter halibut 
harvest to the 2012 GHL. One alternative management measure was a 
reverse slot limit, in which anglers may retain fish that are smaller 
or larger than a specified range of lengths, but must release fish 
within that range. Another alternative considered was charter halibut 
fishery closures on selected days of the week.
    In December 2011, the Council reviewed the analysis of the range of 
management measures to limit Area 2C charter halibut harvest to its 
2012 GHL (available at www.alaskafisheries.noaa.gov/npfmc/PDFdocuments/halibut/2012MgmtMeasures2C.pdf) and unanimously recommended that the 
IPHC implement a reverse slot limit that allowed retention of halibut 
less than or equal to (under) 45 inches (U45) and greater than or equal 
to (over) 68 inches (O68) in length. This U45/O68 reverse slot limit 
would allow the retention of halibut that are less than approximately 
32 lb and greater than 123 lb (headed and gutted). At its annual 
meeting in January 2012, the IPHC reviewed the

[[Page 39125]]

Council analysis for charter halibut management measure options and the 
Council's recommendation. The IPHC unanimously recommended implementing 
the U45/O68 reverse slot limit for charter anglers in Area 2C for the 
2012 halibut fishing season. This recommendation was implemented 
through the 2012 IPHC annual management measures (77 FR 16740, March 
22, 2012).
    In November 2012, the preliminary estimate of charter halibut 
harvest for 2012 was 645,000 lb (292.6 mt), which was below the GHL of 
931,000 lb (422.3 mt). In December 2012, the Council undertook the same 
process it used in December 2011 to consider options for the 
appropriate Area 2C charter halibut management measures for 
implementation in 2013. Based on an analysis of charter halibut 
management options and advice from its advisory committees and the 
public, the Council recommended a continuation of the status quo 
charter management measures in Area 2C for the 2013 season. At its 
annual meeting in January 2013, the IPHC reviewed the Council analysis 
for 2013 charter halibut management measure options (available at 
www.alaskafisheries.noaa.gov/npfmc/PDFdocuments/halibut/2013charterAnalysis_1212.pdf) and the Council's recommendation. Based 
on the Total CEY, the resulting GHL for Area 2C in 2013 was 788,000 lb 
(357.4 mt). The IPHC unanimously recommended status quo management 
(i.e., the U45/O68 reverse slot limit) for charter anglers in Area 2C 
for the 2013 halibut fishing season, which was implemented through the 
2013 IPHC annual management measures (78 FR 16423, March 15, 2013).

B. Southcentral Alaska (Area 3A)

    Since the GHL was implemented in 2004, charter anglers in Area 3A 
have been managed by the same harvest restrictions as unguided anglers, 
i.e., a two-fish daily bag limit with no size restrictions. Charter 
halibut harvest in 2004 through 2007 was at or slightly above the GHL 
of 3,650,000 lb (1,655.6 mt) in Area 3A (Table 2). Each year from 2007 
to 2009, the Alaska Department of Fish and Game (ADF&G) issued an 
Emergency Order that prohibited charter skipper and crew harvest of all 
species for the major portion of the season under ADF&G's general 
authorities to regulate state-licensed sport fishing vessels. From 2010 
until 2012, the charter halibut fishery had a two-fish of any size bag 
limit with no prohibition on skipper and crew harvest. Charter halibut 
harvest in Area 3A has remained below the GHL since 2008, even after 
the GHL dropped in 2012 from 3,650,000 lb (1,655.6 mt) to 3,103,000 lb 
(1,407.5 mt). Table 2 summarizes GHLs and charter halibut harvest in 
Area 3A since 2004. The IPHC adopted commercial halibut fishery catch 
limits based on a Total CEY which resulted in a 2013 GHL of 2,734,000 
lb (1,240.1 mt) and approved status quo management measures for Area 3A 
for 2013 (78 FR 16423, March 15, 2013), following the Council's 
recommendation.

        Table 2--Area 3A Guideline Harvest Level and Estimated Charter Halibut Harvest From 2004 to 2013
                                        [Rounded to the nearest 1,000 lb]
----------------------------------------------------------------------------------------------------------------
               Year                              Area 3A GHL                     Area 3A estimated harvest
----------------------------------------------------------------------------------------------------------------
2004.............................  3,650,000 lb (1,655.6 mt)               3,668,000 lb (1,672.8 mt)
2005.............................  3,650,000 lb (1,655.6 mt)               3,689,000 lb (1,673.3 mt)
2006.............................  3,650,000 lb (1,655.6 mt)               3,664,000 lb (1,662.0 mt)
2007.............................  3,650,000 lb (1,655.6 mt)               4,002,000 lb (1,815.3 mt)
2008.............................  3,650,000 lb (1,655.6 mt)               3,378,000 lb (1,532.2 mt)
2009.............................  3,650,000 lb (1,655.6 mt)               2,734,000 lb (1,240.1 mt)
2010.............................  3,650,000 lb (1,655.6 mt)               2,698,000 lb (1,223.8 mt)
2011.............................  3,650,000 lb (1,655.6 mt)               2,793,000 lb (1,266.9 mt)
2012.............................  3,103,000 lb (1,407.5 mt)               2,375,000 lb (1,077.3 mt) *
2013.............................  2,734,000 lb (1,240.1 mt)               not available
----------------------------------------------------------------------------------------------------------------
* Harvest estimate for 2012 is preliminary.

III. Proposed Catch Sharing Plan (CSP) for Area 2C and Area 3A

A. Overview

    In October 2008, the Council adopted a motion to recommend a CSP 
for the charter and commercial halibut fisheries in Areas 2C and 3A to 
NMFS. The 2008 Council motion is available at 
www.alaskafisheries.noaa.gov/npfmc/PDFdocuments/halibut/ 
HalibutCSPmotion1008.pdf. The Council intended that the CSP be a 
comprehensive management program for the charter halibut fisheries in 
Area 2C and Area 3A. In July 2011, NMFS published a proposed rule for 
that CSP based on the Council's 2008 preferred alternative (76 FR 
44156, July 22, 2011) and received more than 4,000 public comments. The 
majority of the comments addressed the proposed allocation percentages 
and the matrix of charter halibut fishery harvest restrictions that 
would have been automatically triggered by changes in the annual 
commercial and charter halibut fisheries' combined catch limits (annual 
combined catch limits) supported by halibut exploitable biomass. In 
October 2011, in part due to questions raised in the public comments on 
the proposed rule, NMFS and the Council decided that further analysis 
and clarification of provisions of the proposed 2011 CSP were required. 
In December 2011, the Council requested a supplemental analysis of new 
information since its 2008 preferred alternative, including an 
evaluation of the management implications and economic impacts of the 
proposed CSP at varying levels of halibut abundance. Based on this new 
evaluation and additional public input, the Council recommended a 
revised preferred alternative for the CSP in October 2012. The 2012 
Council motion, upon which this proposed rule is based, is available at 
www.alaskafisheries.noaa.gov/npfmc/PDFdocuments/halibut/CSPMotion1012.pdf.
    Consistent with the intent of the first proposed CSP in 2011, the 
Council intends this proposed CSP to address ongoing allocation 
conflicts between the charter and commercial halibut fisheries. The 
commercial halibut fishery is subject to defined allocations of 
individual harvest shares that generally rise and fall with halibut 
abundance, and the charter halibut fishery, which experienced many 
years of sustained annual growth, is not

[[Page 39126]]

directly subject to limitation with changes in fishery abundance. The 
commercial IFQ and charter halibut fishery are harvesting a fully 
utilized resource. The primary objectives of the CSP are to define an 
annual process for allocating halibut between the charter and 
commercial halibut fisheries in Area 2C and Area 3A, establish 
allocations that vary with changing levels of annual halibut abundance 
and that balance the differing needs of the charter and commercial 
halibut fisheries t, and specify a process for determining harvest 
restrictions for charter anglers that are intended to limit harvest to 
the annual charter halibut fishery catch limit.
    The CSP allocations would replace the GHL with a percentage 
allocation to the charter halibut fishery of the annual combined catch 
limit. The Council also intends to follow the process it used in 2011 
and 2012 to specify annual management measures for the charter halibut 
fishery prior to the upcoming fishing season based on projected 
harvests and charter catch limits (i.e., currently the GHL). Prior to 
2012, restrictions to limit charter halibut harvests to the respective 
GHLs were implemented either by IPHC regulation in the annual 
management measures without input from the Council, or by separate NMFS 
rulemaking after the GHL was exceeded. The pre-season harvest 
restriction specification process recommended in this proposed rule is 
intended to limit charter halibut harvest to the target level before an 
overage occurs, as opposed to an approach that implements management 
measures several years after the target harvest level has been 
exceeded.
    The pre-season specification of harvest restrictions for charter 
anglers is consistent with the Council's objective to maintain the 
charter halibut fishery season length in effect (February 1 through 
December 31) with no inseason changes to harvest restrictions, even if 
it appears that the regulatory measures may result in an overage. The 
Council developed this objective based on committee recommendations and 
public testimony from charter vessel operators indicating that inseason 
changes to harvest restrictions would be disruptive to charter 
operators and anglers. Many charter vessel anglers book fishing trips 
with operators well in advance of the trip date with an expectation 
that the harvest restrictions that are effective at the beginning of 
the fishing season will be in place throughout that season. Management 
changes to bag or size limits for charter vessel anglers within a 
fishing season may cause considerable inconvenience for charter anglers 
and adverse economic impacts to charter operators if anglers decide to 
postpone or cancel their charter fishing trip due to a mid-season 
change in regulations. The potential for inseason management changes 
also could result in fewer anglers planning charter fishing trips in 
Alaska, which could have significant long-term adverse economic impacts 
on charter vessel operators by reducing revenue.
    The Council recommended, and NMFS agrees, that the annual CSP catch 
limits for the commercial and charter halibut fisheries should be 
determined by a predictable and standardized process utilizing the 
IPHC's annual management measures. This proposed rule would establish a 
procedure for determining the commercial and charter halibut fisheries' 
catch limits for each area. If this proposed rule for a CSP is 
implemented, the IPHC's annual combined catch limits for 2C and 3A 
would be apportioned between the annual charter catch limits and annual 
commercial catch limits in those areas. At its annual meeting, the IPHC 
would consider the Council's recommendations designed to constrain the 
charter halibut fisheries in 2C and 3A to their allocated annual catch 
limits, and would consider the advice of IPHC staff, advisors, and the 
public. The IPHC would be expected to adopt the catch limits and 
appropriate management measures as part of the annual IPHC halibut 
fishery conservation and management regulations. Should the Secretary 
of State accept the IPHC regulations, with concurrence of the Secretary 
of Commerce, the approved IPHC regulations would be published in the 
Federal Register as specified by regulations at 50 CFR 300.62. The IPHC 
annual management measures would remain in effect until superseded by 
future regulations.
    In recent years, this implementation schedule for IPHC annual 
management measures has occurred after the February 1 season opening 
date for halibut sport fisheries in Alaska. In most years, the 
effective date of the IPHC annual management measures has been around 
March 15. Thus, the period between the February 1 opening of the sport 
season and the mid-March effective date of the superseding annual 
management measures has been subject to the previous year's IPHC 
regulations. This schedule will continue under the proposed CSP unless 
the IPHC recommends a change to the February 1 opening for the sport 
fishing season. However, implementation of the annual management 
measures in March likely does not impact the charter halibut fishery 
because there has historically been little or no charter halibut 
harvest during February 1 through mid-March.
    As part of this proposed action, the Council also recommended that 
ADF&G Saltwater Charter Logbooks be used as the primary data source to 
estimate the number of halibut harvested in the charter halibut fishery 
following each charter halibut fishing season and to project the number 
of halibut harvested in the charter fishery in the following year. 
Since the mid-1990s, the primary data source to estimate the numbers of 
halibut harvested in the charter fishery provided to the IPHC and the 
Council has been the Alaska Statewide Harvest Survey (SWHS). The SWHS 
is a mail survey that employs stratified random sampling of households 
containing at least one licensed angler. Survey respondents are asked 
to report the numbers of fish caught and kept by all members of the 
entire household, and the data are expanded to cover all households.
    The ADF&G Saltwater Charter Logbook is the primary reporting 
requirement for operators in the charter fisheries for all species 
harvested in saltwater in Areas 2C and 3A. ADF&G developed the 
saltwater charter logbook program in 1998 to provide information on 
participation and harvest by individual vessels and businesses in 
charter fisheries for halibut as well as other state-managed species. 
Saltwater charter logbook data are compiled to show where fishing 
occurs, the extent of participation, and the species and the numbers of 
fish caught and retained by individual anglers. This information is 
essential to estimate harvest for regulation and management of the 
charter halibut fisheries in Area 2C and Area 3A. Since 1998, the 
saltwater charter logbook design has undergone annual revision, driven 
primarily by changes or improvements in the collection of fisheries 
data. In recent years, ADF&G has added saltwater charter logbook 
reporting requirements to accommodate information required to implement 
and enforce Federal charter halibut fishing regulations, such as the 
Area 2C one-halibut per day bag limit and the charter halibut limited 
access program.
    In 2006, ADF&G adopted a number of new measures to improve the 
quality of saltwater charter logbook data including requiring charter 
operators to report angler license numbers and the numbers of fish 
caught per angler, and increasing staff resources to verify the data 
collected. Following these changes, ADF&G sought to determine whether 
the quality of logbook data had in fact improved, and whether logbook 
data

[[Page 39127]]

should be used to monitor and manage the charter halibut fishery. In 
2008 and 2009, ADF&G presented two evaluations of the logbook data to 
the Council and the Council's Scientific and Statistical Committee. The 
reports included comparisons of charter halibut harvest estimates using 
saltwater charter logbook data and SWHS data. Based on these reports 
and additional information, the Council determined that the use of 
saltwater charter logbook data instead of the SWHS offers several 
advantages. Most important among these advantages is that logbook data 
are available sooner; they are reported on a weekly basis and partial-
year harvest can be summarized by the end of the charter halibut 
fishing season. In contrast, data from the SWHS are not available until 
nearly a year after the fishing season has ended. It is important to 
obtain timely estimates of charter halibut harvest so the performance 
of management measures relative to the charter catch limits can be 
evaluated and modified, if necessary, before the next fishing season 
begins. Additionally, logbook data are intended to provide a complete 
census of the harvest without recall bias or sampling error that may be 
present in the SWHS and are therefore thought to be more accurate that 
SWHS data. NMFS anticipates that if the CSP is approved, i.e., this 
proposed rule is implemented, ADF&G will report charter halibut harvest 
to the IPHC and the Council using saltwater charter logbooks as the 
primary data source for the number of fish harvested.
    In order to provide flexibility for individual commercial and 
charter halibut fishery participants, the Council also recommended that 
the CSP authorize annual transfers of commercial halibut IFQ as guided 
angler fish (GAF) to charter halibut permit holders for harvest in the 
charter halibut fishery. Under the commercial IFQ Program, commercial 
halibut operators hold quota share (QS) that yields a specific amount 
of an annual harvest privilege, or IFQ. GAF would offer charter halibut 
permit holders in Area 2C or Area 3A an opportunity to lease a limited 
amount of IFQ from commercial QS holders to allow charter clients to 
harvest halibut in addition to, or instead of, the halibut harvested 
under the daily bag limit for charter anglers. Charter anglers using 
GAF would be subject to the harvest limits in place for unguided sport 
anglers in that area, currently a two-fish of any size limit in Areas 
2C and 3A. GAF harvested in the charter halibut fishery would be 
accounted for as commercial halibut IFQ harvest.
    Except for authorizing commercial halibut QS holders to transfer 
IFQ as GAF to charter halibut permit holders, the Council did not 
intend for the CSP to change the management of the commercial halibut 
fisheries in Area 2C and Area 3A. The directed commercial halibut 
fisheries in Area 2C and Area 3A are managed under the IFQ Program 
pursuant to regulations at 50 CFR part 679 subparts A through E. The 
proposed rule would amend only those sections of the IFQ Program's 
regulations to authorize transfers between IFQ and GAF and establish 
the requirements for using GAF.

B. Annual Combined Catch Limit

    The CSP would change the current process for specifying annual 
catch limits for the commercial halibut fisheries in Area 2C and Area 
3A, and establish a process for specifying annual charter halibut 
fishery catch limits in Area 2C and Area 3A. The process for specifying 
annual guided sport catch limits under the CSP would replace the GHL 
for the charter halibut fisheries in Area 2C and Area 3A. The IPHC 
currently only specifies annual catch limits for the directed 
commercial halibut fisheries, and Federal regulations determine the GHL 
for charter halibut fisheries based on the Total CEY in Area 2C and 
Area 3A as determined by the IPHC. Under the proposed CSP, the IPHC 
would specify an annual combined catch limit for Area 2C and for Area 
3A at its annual meeting in January. Each area's annual combined catch 
limit in net pounds would be the total allowable halibut harvest for 
the directed commercial halibut fishery plus the total allowable 
halibut harvest for the charter halibut fishery under the CSP.
    NMFS anticipates that the IPHC process for determining the annual 
combined catch limit would be similar to the process it has typically 
used in the past for determining annual commercial catch limits. A 
notable exception is how each fishery's wastage would be deducted from 
the combined catch limit, as described in the ``Calculation of Annual 
Fishery Catch Limits'' section of this preamble. The IPHC would 
continue to estimate the exploitable biomass of halibut using a 
combination of harvest data from the commercial, sport, and subsistence 
fisheries, and information collected during scientific surveys and 
sampling of bycatch in other fisheries. The IPHC would calculate the 
Total CEY, or the target level for total removals (in net pounds) for 
that area in the coming year, by multiplying the estimate of 
exploitable biomass by the harvest rate in that area. The IPHC would 
subtract estimates of other removals from the Total CEY. Other removals 
would include unguided sport harvest, subsistence harvest, and bycatch 
of halibut in non-target commercial fisheries. The remaining CEY, after 
the other removals are subtracted, would be the Fishery CEY which would 
be the basis for the IPHC's determination of the annual combined catch 
limit for Areas 2C and 3A. The IPHC would continue to consider the 
combined commercial and charter halibut Fishery CEY, staff analysis, 
harvest policy, and stakeholder input when it specifies the Area 2C and 
Area 3A annual combined catch limits in net pounds.
    The IPHC process for determining annual combined catch limits and 
commercial and charter allocations and catch limits under the proposed 
CSP is presented in Figure 1 and described further in subsequent 
sections of this preamble.

[[Page 39128]]

[GRAPHIC] [TIFF OMITTED] TP28JN13.001

BILLING CODE 3510-22-C

C. Annual Commercial Fishery and Charter Fishery Allocations

    Under the CSP, the IPHC would divide the annual combined catch 
limits into separate annual catch limits for the commercial and charter 
halibut fisheries. A fixed percentage of the annual combined catch 
limit would be allocated to each fishery at most levels of the combined 
catch limit. The fixed percentage allocation to each fishery would vary 
with halibut abundance, with higher allocations to the charter halibut 
fishery at lower levels of abundance. The charter halibut fishery would 
receive a fixed poundage allocation at intermediate abundances to

[[Page 39129]]

avoid a ``vertical drop'' in allocation (described further below). The 
IPHC would multiply the CSP allocation percentages for each area by the 
annual combined catch limit to calculate the commercial and charter 
halibut allocations in net pounds.
    The CSP allocation method is a significant change from the current 
guidelines established under the GHL. At moderate to low levels of 
halibut abundance, the CSP would provide the charter halibut fishery 
with a smaller poundage allocation than the guideline limits 
established under the GHL program. Conversely, at higher levels of 
abundance, the CSP would provide the charter halibut fishery with a 
larger poundage allocation than the guideline limits established under 
the GHL program. The Council intended the CSP fishery allocations to 
balance the needs of the charter and commercial halibut fisheries at 
all levels of halibut abundance. The Council believes, and NMFS agrees, 
that the allocation under the CSP provides a more equitable management 
response to changes in Total CEY, compared to the GHL program.
    One of the primary disadvantages of the GHL program is that it is 
not responsive or adaptable to changes in halibut abundance and fishing 
effort. For example, the Area 2C GHL was 788,000 lb in 2009. The Area 
2C Total CEY declined by approximately 10 percent from 2009 to 2010, 
but this decline did not trigger a change in the GHL, which remained at 
788,000 lb in 2010. Therefore, the commercial halibut fishery IFQ 
allocations were reduced, but there was no change in the charter 
halibut fishery GHLs. Conversely, when halibut exploitable biomass 
increases, the GHL does not allow the charter halibut fishery to fully 
benefit from this increase. For example, the Area 3A Total CEY 
increased by approximately 11 percent from 2006 to 2007, but this 
increase did not trigger a change in the GHL, which was limited to the 
maximum level of 3,650,000 lb in those years.
    Among other options, the Council considered establishing fixed 
poundage allocations to the charter halibut fishery similar to the 
guidelines established under the GHL program. However, the Council 
determined that use of a fixed percentage allocation of the combined 
catch limit to each fishery under the CSP would result in both the 
commercial and charter halibut fishery allocations adjusting directly 
with changes in halibut exploitable biomass. In contrast, in this 
proposed rule, both fisheries would share in the benefits and costs of 
managing the resource for long-term sustainability.
    The allocation under the proposed CSP provides a more transparent 
and equitable management response than the GHL program because unlike 
the current allocation system, it would use the same method to 
establish commercial and charter halibut fishery allocations. Under the 
current management structure, the GHL is calculated directly from the 
IPHC's determination of Total CEY, or total allowable removals of 
halibut from all sources. The commercial halibut catch limit is based 
on the Total CEY and is also affected by other halibut removals from 
sport harvest, subsistence harvest, bycatch of halibut in commercial 
fisheries targeting other species, and wastage in the commercial 
halibut fishery. As described above in the ``Background on the Halibut 
Fishery'' section, the IPHC currently establishes the commercial 
fishery catch limits only after subtracting these other halibut 
removals from the Total CEY. Therefore, an increase in other removals 
directly reduces the amount of halibut available for the commercial 
halibut fishery. The GHL for the charter halibut fishery is not 
affected by changes in other halibut removals.
    Section 2.5.10 of the EA/RIR/IRFA (see ADDRESSES) describes the 
effects of the current allocation system, in which the proportion of 
total halibut harvested in the Area 2C and Area 3A commercial halibut 
fishery has declined and the proportion harvested in the charter 
halibut fishery has increased. From 2008 through 2012, the Area 2C 
commercial halibut fishery harvest declined from 60.2 percent to 43.1 
percent of the Total CEY, and charter halibut fishery harvest increased 
from 14.3 percent to 15.9 percent of the Total CEY over the same time 
period. In Area 3A, commercial halibut fishery harvest decreased from 
76.8 percent to 60.3 percent of the Total CEY, and charter halibut 
fishery harvest increased from 12.6 percent to 15.7 percent of the 
Total CEY from 2008 through 2012. Thus, while both the GHL and 
commercial halibut fishery catch limits have declined in recent years, 
the commercial halibut fisheries have borne larger poundage and 
proportional reductions under the current allocation system. The 
Council and NMFS determined that the proposed CSP would stabilize the 
proportions of harvestable halibut available to the commercial and 
charter fisheries at all levels of halibut abundance by basing both 
fishery allocations on the annual combined catch limit.
    The Council considered historical and recent catch information when 
determining the recommended CSP allocation percentages for the 
commercial and charter halibut fisheries. The Council reviewed average 
charter halibut harvest estimates for individual years and for 
different combinations of years ranging from 1999 through 2005. The 
Council recommended multiple CSP allocation percentages for the 
commercial and charter halibut fisheries in Area 2C and in Area 3A 
depending on the combined catch limit set for that area. Combined catch 
limits would be divided into tiers based on abundance. As described 
above, at lower levels of abundance the CSP would allocate a higher 
percentage of the combined catch limit to the charter halibut fishery 
than it would receive under higher combined catch limits. The Council 
recommended, and NMFS proposes, higher charter allocation percentages 
at relatively low abundance levels of halibut to ameliorate the effects 
of replacing the GHL stair-step benchmark in pounds with a CSP 
allocation percentage that varies directly with the annual combined 
catch limit. A higher percentage allocation at lower abundance levels 
is also intended to keep charter businesses from being severely 
restricted at times of low halibut abundance.
    Section 2.5 of the EA/RIR/IRFA (see ADDRESSES) analyzes several 
alternatives for allocations under the CSP. Under the Council's 
preferred alternative for the CSP in Area 2C, the poundage allocation 
to the charter halibut fishery would have been from 4.8 percent to 32 
percent lower than the GHL from 2008 through 2012. For Area 3A, the 
poundage allocation to the charter halibut fishery would have been from 
4.7 percent to 24.5 percent lower than the GHL in Area 2C from 2008 
through 2012. The Council acknowledged that reductions in charter 
halibut fishery catch limits relative to the GHL may reduce demand for 
charter services and may result in reduced demand for charter services 
and negative economic impacts for charter operators. Section 2.6 of the 
EA/RIR/IRFA notes that it is not possible to quantify the effects of 
the reduction in pounds allocated to the charter halibut fishery under 
the CSP relative to the GHL. However, the Council noted that from 2008 
through 2012, catch limits in the commercial halibut fisheries were 
reduced by 57.7 percent in Area 2C and by 51.7 percent in Area 3A, 
which resulted in reduced revenues for participants in the fishery, 
most of whom are also small businesses

[[Page 39130]]

(Section 3.2.2 of the EA/RIR/IRFA, see ADDRESSES). In recommending the 
CSP, the Council faced the challenge of balancing historical harvests, 
economic impacts to each sector, and the declining status of the 
halibut stock in both areas, under the proposed range of allocation 
options. As a result, it is not possible for any allocation under the 
proposed CSP to make participants in both fisheries whole economically 
given current halibut abundance levels.
    The proposed allocations differ for Area 2C and Area 3A. The 
Council considered that Area 2C and Area 3A are distinct from each 
other in terms of halibut abundance trends and charter fishing effort 
when it selected its preferred alternative. In Area 2C, the main 
indices of halibut abundance have shown a steady decline in exploitable 
biomass from high levels in the mid-1990s. While it appears that the 
rate of decline in the Total CEY in Area 2C has slowed or stopped, 
halibut abundance continues to remain at historically low levels. From 
2004 through 2008, Area 2C charter halibut harvests increased by 41.5 
percent, which demonstrated the ability of participants in that fishery 
to increase capacity to meet angler demand. This rapid growth in the 
charter halibut industry in Area 2C, combined with the delay in setting 
harvest restrictions, made it difficult for managers to set harvest 
restrictions to avoid exceeding the GHL, while meeting the Council's 
objectives of avoiding in-season changes to harvest restrictions and 
maintaining a traditional season length. Until 2011, no mechanism was 
in place to implement new charter halibut harvest restrictions in a 
timely fashion in response to harvests exceeding the GHL. As a result, 
the charter halibut fishery in Area 2C exceeded its GHL each year 2004 
through 2010. After considering these factors, the Council recommended, 
and NMFS proposes, more conservative CSP charter halibut fishery 
allocations in Area 2C, particularly at low levels of abundance, to 
accommodate imprecision in managing harvest in a fishery that depends 
on inseason regulatory stability but that also has exhibited the 
ability to undertake rapid growth, particularly at current low levels 
of halibut abundance. The Council also noted that a more conservative 
charter halibut fishery allocation was appropriate under the CSP 
because participants in the Area 2C commercial halibut fishery have 
experienced significant economic losses in revenue from reductions in 
catch limits since 2007. While ex-vessel prices for halibut have 
increased in recent years, the increases have not compensated all 
revenue losses experienced by the Area 2C commercial halibut fishery 
(see section 2.3.2 and 2.6 of the EA/RIR/IRFA).
    In contrast, while declines in Total CEY in Area 3A have occurred 
over the last several years, the Total CEY remains the largest of any 
of the regulatory areas. In addition, following implementation of the 
GHL, charter halibut fishery removals in this area did not increase at 
the rate seen in Area 2C, increasing by just 9 percent from 2004 
through 2007. The following sections provide additional details on the 
proposed CSP allocations for Area 2C and Area 3A.
1. Calculation of Annual Fishery Allocations and Catch Limits--Area 2C
    In Area 2C, the proposed charter halibut fishery allocation 
percentages were based on Alternative 3 of the EA/RIR/IRFA (see 
ADDRESSES). The proposed CSP would establish three allocation tiers for 
Area 2C (Table 3 and Figure 2).

  Table 3--Area 2C Proposed Catch Sharing Plan (CSP) Allocations to the
Charter and Commercial Halibut Fisheries Relative to the Annual Combined
                            Catch Limit (CCL)
------------------------------------------------------------------------
                                    Charter halibut   Commercial halibut
  Area 2C annual combined catch       fishery CSP         fishery CSP
 limit for halibut in net pounds   allocation (% of    allocation (% of
              (lb)                  annual combined     annual combined
                                     catch limit)        catch limit)
------------------------------------------------------------------------
0 to 4,999,999 lb...............  18.3%.............  81.7%.
5,000,000 to 5,755,000 lb.......  915,000 lb........  Area 2C CCL minus
                                                       915,000 lb.
5,755,001 lb and up.............  15.9%.............  84.1%.
------------------------------------------------------------------------

    When the IPHC sets an annual combined catch limit of less than 
5,000,000 lb (2,268 mt) in Area 2C, the commercial halibut fishery 
allocation would be 81.7 percent and the charter halibut fishery 
allocation would be 18.3 percent of the annual combined catch limit. 
This percentage allocation was calculated as 125 percent of the average 
charter halibut harvest in Area 2C from 2001 through 2005 divided by 
the annual average combined charter and commercial halibut harvests in 
Area 2C from 2001 through 2005 (17.3 percent) and then adjusted to 
account for the Council's recommendation to use saltwater charter 
logbooks as the primary mechanism to estimate charter halibut harvest.
    The Council considered smaller percentage allocations to the 
charter halibut fishery, including an allocation based on the current 
GHL formula, which uses a calculation of 125 percent of the average 
1995 through 1999 charter halibut harvest divided by the 1995 through 
1999 combined charter and commercial halibut harvests in Area 2C. 
However, the Council received testimony from Area 2C charter halibut 
fishery participants that the GHL had been overly restrictive since it 
was implemented in 2004, particularly during times of low halibut 
abundance. These participants requested that the Council base the CSP 
allocation on higher levels of historical charter halibut harvest to 
accommodate growth in the fishery since implementation of the GHL. The 
Council considered this testimony and the effects on participants in 
the commercial and charter halibut fisheries, and determined that using 
2001 through 2005 average charter halibut harvests for the charter 
fishery allocation provided an equitable balance for both fisheries. 
Using these years would provide the charter halibut fishery with an 
increase in the proportion of the combined charter and commercial 
halibut harvests allocated to the charter fishery relative to the GHL 
formula. However, in consideration of the effects of an increased 
charter fishery allocation on commercial halibut fishery participants 
at low halibut abundance levels, NMFS proposes to base the CSP 
allocation on 2001 through 2005 charter halibut harvest levels rather 
than on more recent years in which charter halibut harvests reached 
historically high levels.
    As discussed in Section 1.7.3 of the EA/RIR/IRFA (see  ADDRESSES), 
data from the most recent five years of harvest (2006 through 2010) 
that were available when the Council selected its preferred alternative 
were used to calculate the average difference between harvest estimates 
provided by logbooks and the statewide harvest survey

[[Page 39131]]

(SWHS). Estimates using saltwater charter logbook data are on average 
higher than estimates using SWHS data. The Council considered this 
average difference (5.6 percent) when it recommended its CSP preferred 
alternative. Without this adjustment factor incorporated into the CSP, 
the charter halibut fishery would have been held to allocations that 
were based on charter halibut harvest estimates using SWHS as the 
primary data source, but would be managed based on charter halibut 
harvest projections using saltwater charter logbooks as the primary 
data source.
    For the first allocation tier in Area 2C (i.e., a combined catch 
limit of less than 5,000,000 lb), the adjustment factor was applied to 
the allocation using the following equation:

(CSP allocation x adjustment factor) + CSP allocation = adjusted CSP 
allocation
or
(17.3% x 5.6%) + 17.3% = 18.3%

    When the IPHC sets the annual combined catch limits at the second 
tier, between 5,000,000 lb and 5,755,000 lb (2,610.4 mt), the 
allocation to the charter halibut fishery would be a fixed 915,000 lb 
(405 mt), to smooth the vertical drop in the poundage allocation that 
would occur without this adjustment (Figure 2). Without this 
adjustment, a 1 lb increase in combined catch limit from 4,999,999 lb 
to 5,000,000 lb would trigger a 2.4 percent drop in the charter 
allocation, resulting in a significant drop in the poundage allocated 
to the charter halibut fishery. For example, without the adjustment, if 
the combined catch limit were set at 4,999,999 lb, the charter 
allocation would be 18.3 percent or 915,000 lb. However, if the 
combined catch limit increased to 5,000,000 lb, the charter allocation 
percentage would be 15.9 percent, or 795,000 lb (360.6 mt). By adding 
this fixed poundage allocation tier for Area 2C to the proposed CSP, 
the vertical drop in the allocation is removed. The charter halibut 
fishery allocation would be fixed at 915,000 lb until the combined 
catch limit increased to the point where the charter allocation 
percentage at higher abundance levels would not result in a decrease in 
poundage allocated to the charter halibut fishery. With the proposed 
allocation percentages, the poundage allocated to the charter halibut 
fishery would increase as a fixed percentage at combined catch limits 
above 5,755,000 lb.
[GRAPHIC] [TIFF OMITTED] TP28JN13.002

    When the CCL is between 0 and 4,999,999 lb, the charter halibut 
fishery receives 18.3 percent of the CCL. Above 5,755,000 lb, the 
charter halibut fishery receives 15.9 percent of the CCL. When the CCL 
is between 5,000,000 and 5,755,000 lb, the charter halibut fishery 
would receive a fixed poundage allocation of 915,000 lb. The dashed 
line represents the vertical drop in allocation that would occur 
without the fixed poundage adjustment. The

[[Page 39132]]

commercial halibut fishery would be allocated the Area 2C combined 
catch limit minus the 915,000 lb fixed allocation to the charter 
halibut fishery.
    When the IPHC sets the annual combined catch limit at the third 
tier, greater than 5,755,000 lb (2,610.4 mt), in Area 2C, the 
commercial halibut fishery allocation would be 84.1 percent and the 
charter halibut fishery allocation would be 15.9 percent of the Area 2C 
annual combined catch limit. This proposed charter halibut CSP 
allocation percentage was calculated as the 2005 charter halibut 
harvest estimates divided by the combined 2005 charter and commercial 
halibut harvests in Area 2C and adjusted to account for the Council's 
recommendation to use saltwater charter logbooks as the primary 
mechanism to estimate charter halibut harvest. For the third allocation 
tier in Area 2C, the adjustment factor was applied to the allocation 
using the same equation as for the first tier:

(CSP allocation x adjustment factor) + CSP allocation = adjusted CSP 
allocation
or
(15.1% x 5.6%) + 15.1% = 15.9%

    Although the Council considered smaller percentage allocations to 
the charter halibut fishery, the Council determined, and NMFS agrees, 
that 2005 charter halibut harvest would be a more appropriate basis at 
higher levels of halibut abundance for determining the charter halibut 
allocation percentages under the CSP. The charter halibut harvest in 
2005 was the second highest halibut harvest estimated since 1999. The 
Council determined that at higher levels of abundance, the CSP would 
provide an allocation to the charter halibut fishery based on a 
relatively high historical level of harvest and would allow 
participants to benefit from higher halibut abundance. NMFS agrees that 
2005 is an appropriate basis for the charter halibut fishery allocation 
because it represents a year in which halibut abundance was relatively 
high in Area 2C. Halibut abundance began to decline in the years 
following 2005, and as a result, charter halibut fishery harvests 
increased in proportion to commercial halibut fishery harvests. NMFS 
agrees with the Council's recommendation for a charter halibut fishery 
allocation at the highest combined catch limit tier that balances the 
needs of participants in the commercial and charter halibut fisheries.
2. Calculation of Annual Fishery Allocations and Catch Limits--Area 3A
    In Area 3A, the proposed charter halibut fishery allocation 
percentages were based on the methodology presented in Section 1.6 of 
the EA/RIR/IRFA. The Council recommended three different percentages of 
allocations depending on the level of the combined catch limit, with 
smaller percentage allocations to the charter halibut fishery as the 
combined catch limit increases. Consistent with the methodology used in 
Area 2C to avoid the vertical drops in allocations to the charter 
halibut fishery as the combined catch limit increases from one 
percentage allocation to another, NMFS also would establish fixed 
allocations to the charter halibut fishery for Area 3A. Because there 
would be two transitions between the three combined catch limit 
percentage allocations in this area, this proposed rule would add two 
tiers with fixed poundage allocations to remove the vertical drops. The 
proposed Area 3A allocation therefore contains 5 tiers (Table 4 and 
Figure 3).

  Table 4--Area 3A Proposed Catch Sharing Plan (CSP) Allocations to the
Charter and Commercial Halibut Fisheries Relative to the Annual Combined
                            Catch Limit (CCL)
------------------------------------------------------------------------
                                    Charter halibut   Commercial halibut
  Area 3A annual combined catch       fishery CSP         fishery CSP
 limit for halibut in net pounds   allocation (% of    allocation (% of
              (lb)                  annual combined     annual combined
                                     catch limit)        catch limit)
------------------------------------------------------------------------
0 to 9,999,999 lb...............  18.9%.............  81.1%.
10,000,000 to 10,800,000 lb.....  1,890,000 lb......  Area 3A CCL minus
                                                       1,890,000 lb.
10,800,001 to 20,000,000 lb.....  17.5%.............  82.5%.
20,000,001 to 25,000,000 lb.....  3,500,000 lb......  Area 3A CCL minus
                                                       3,500,000 lb.
25,000,001 lb and up............  14.0%.............  86.0%.
------------------------------------------------------------------------

    For Area 3A, when the IPHC sets the annual combined catch limits at 
the first tier, less than 10,000,000 lb (4,535.9 mt), the commercial 
halibut fishery allocation would be 81.1 percent and the charter 
halibut fishery allocation would be 18.9 percent of the Area 3A annual 
combined catch limit. These allocation percentages were calculated 
using the same formula as for Area 2C, i.e., as 125 percent of the 
average charter halibut harvest in Area 3A from 2001 through 2005 
divided by the annual average combined charter halibut and commercial 
halibut harvests in Area 3A from 2001 through 2005 (15.4 percent). 
Additionally, the Council recommended that this allocation be increased 
by 3.5 percent to establish the CSP allocation at the upper end of the 
target range around the allocation originally proposed in the 2011 CSP 
(18.9 percent).
    The Council determined that this allocation would be appropriate 
for Area 3A because it provided for a limited increase in allocation 
relative to the years used as the basis for the GHL by including two 
(2004 and 2005) of the four (2004 through 2007) years in which charter 
halibut fishery harvests reached historically high levels. In 
determining its recommendation for the Area 3A charter halibut fishery 
allocation, the Council also considered public testimony that the lower 
poundage allocation under the CSP relative to the GHL at lower levels 
of abundance would negatively impact angler demand and reduce charter 
operator revenues (see sections 2.5.8 and 2.5.10 of the EA/RIR/IRFA). 
The Council considered this information and recommended increasing the 
Area 3A charter halibut fishery allocation by an additional 3.5 percent 
at lower levels of abundance. In developing the CSP, the Council 
considered including a buffer of 3.5 percent around the charter 
allocations to account for the imprecision of managing charter halibut 
fisheries using pre-season specifications of harvest restrictions 
without in-season adjustments or an early season closure (section 1.6.2 
of the EA/RIR/IRFA). While the Council ultimately did not recommend a 
3.5 percent buffer for all charter halibut fishery allocations under 
the proposed CSP, it did determine that it would be appropriate to 
increase the Area 3A charter halibut fishery allocation by 3.5 percent 
at lower levels of abundance in order to increase the poundage 
allocation to levels more consistent with the GHL. This adjustment was 
recommended because the charter fishery in Area 3A does not have a 
history of excessive overages and also because the abundance of halibut 
is

[[Page 39133]]

higher. A similar adjustment was not approved for the allocation to the 
Area 2C charter halibut fishery. The Council chose a more conservative 
allocation option in Area 2C because of that area's potential for rapid 
increases in charter harvests and the increased likelihood of exceeding 
its allocation at low levels of abundance. NMFS agrees that this 
allocation increase for Area 3A likely would mitigate the negative 
impact on charter halibut fishery participants of the reduced CSP 
allocation (in pounds of halibut) relative to the GHL.
    For Area 3A annual combined catch limits between 10,000,000 lb and 
10,800,000 lb (4,898.8 mt), the allocation to the charter halibut 
fishery would be 1,890,000 lb (857.3 mt). The commercial halibut 
fishery would be allocated the Area 3A combined catch limit minus the 
1,890,000 lb fixed allocation to the charter halibut fishery. This 
allocation tier would ensure that charter halibut fishery allocations 
would not decrease as the combined catch limit (and commercial catch 
limit) increased.
    At abundances greater than 10,800,000 lb and less than 20,000,000 
lb (9,071.9 mt), the allocations in Area 3A would be based on the same 
methods used to calculate the GHL, i.e., the charter allocation would 
be 125 percent of the average charter halibut harvest between 1995 and 
1999 divided by the annual average combined charter halibut and 
commercial halibut harvests in Area 3A from 1995 through 1999. The 
Council and NMFS determined that this allocation to the charter halibut 
fishery was appropriate because harvest by the Area 3A charter GHL was 
not overly restrictive at comparable halibut abundance levels. This 
allocation tier would also include the 3.5 percent upward adjustment 
from the allocations proposed in the 2011 CSP in order to mitigate the 
negative impact on charter halibut fishery participants of the lower 
CSP allocation (in pounds of halibut) relative to the GHL. The 
resulting allocations would be 82.5 percent of the combined catch limit 
to the commercial halibut fishery and 17.5 percent to the charter 
halibut fishery.
    When the combined catch limit for Area 3A is set at greater than 
20,000,000 lb and less than or equal to 25,000,000 lb (11,339.8 mt), 
the charter halibut fishery would receive a fixed 3,500,000 lb 
allocation. This fixed poundage allocation would ensure that charter 
fishery allocations would not decrease as the combined catch limit (and 
commercial catch limit) increased. The commercial halibut fishery 
allocation would equal the combined catch limit minus 3,500,000 lb.
    At combined catch limits greater than 25,000,000 lb, the commercial 
halibut fishery allocation would be 86 percent and the charter halibut 
fishery allocation would be 14 percent of the Area 3A annual combined 
catch limit. The Council determined that allocating a larger percentage 
to the charter halibut fishery would give more to the charter halibut 
fishery than they could harvest based on available historic harvest 
data and information on charter business operations received during the 
development of the CSP (see Section 1.6.7 of the EA/RIR/IRFA for 
additional detail).

[[Page 39134]]

[GRAPHIC] [TIFF OMITTED] TP28JN13.003

    When the CCL is less than 10 million pounds (Mlb), the charter 
halibut fishery receives 18.9 percent of the CCL. Between 10.8 Mlb and 
20 Mlb, the charter halibut fishery receives 17.5 percent of the CCL. 
When the CCL is greater than 25 Mlb, the charter halibut fishery 
receives 14.0 percent of the CCL. Two adjustments for vertical drops in 
allocation are made at intermediate abundance levels as shown.
    NMFS would publish the combined catch limits and associated 
allocations for the charter and commercial halibut fisheries in the 
Federal Register as part of the IPHC annual management measures 
pursuant to 50 CFR 300.62. Fishery-specific catch limits are calculated 
by deducting separate estimates of wastage from the commercial and 
charter halibut allocations, as described in the following section.

D. Calculation of Annual Fishery Catch Limits

    Under the proposed CSP, the commercial and charter halibut 
fisheries would have separate accountability for their discard 
mortality or ``wastage,'' such that each fishery's wastage would be 
deducted from its respective allocation to obtain its catch limit. 
Wastage is currently only estimated for the commercial fishery and 
includes undersized halibut (regulatory discards) that die after 
release and halibut of all sizes that die on lost or abandoned gear. 
Under the current process for setting commercial catch limits, 
commercial wastage is deducted with other removals from the Total CEY. 
Through 2012, discard mortality in the recreational fishery has not 
been included in the other removals for calculating the Fishery CEY for 
any IPHC regulatory area, because estimates of recreational fishery 
discards have not been available. Under the proposed CSP, separate 
fishery accountability for wastage would not change the allocation 
percentages for each fishery. Instead, each fishery's allocation would 
be reduced by an estimate of its wastage to obtain the fishery's catch 
limits. The processes for estimating wastage by fishery are described 
below.
    Each year the IPHC estimates wastage, or the discard mortality of 
halibut captured in the commercial fishery that are under the minimum 
legal size of 32 inches, based on data collected from the IPHC's annual 
stock assessment survey (available at www.iphc.int/publications/rara/2012/rara2012053_commwastage.pdf). The discard mortality rate is 
currently estimated to be 16 percent. The amount of halibut wasted on 
lost or abandoned commercial fixed gear is extrapolated from logbook 
interview and fishing log data, and represents a small percentage of 
the total wastage in the fishery. Additional forms of mortality in the 
commercial fishery that are not currently included in estimates of

[[Page 39135]]

wastage may include excess harvest that must be discarded when more 
gear is set than is needed to obtain fishing limits, and halibut that 
are damaged by predators and are discarded at sea. The IPHC intends to 
re-evaluate this approach for estimating wastage in the directed 
commercial halibut fishery once data on halibut discards from the 
previously unobserved commercial halibut fleet are available from the 
restructured North Pacific Groundfish and Halibut Fisheries Observer 
Program (77 FR 70062, November 21, 2012).
    Wastage occurs in the charter fishery as a result of stress or 
injuries sustained from hooking, hook removal, and handling. Although 
recreational harvest is routinely estimated, the additional removals of 
halibut due to catch-and-release mortality are not currently estimated. 
Discard mortality rates vary with the type of gear used, handling and 
release methods, water temperature, hook type, and size of the fish, 
among other factors. NMFS anticipates that ADF&G would generate annual 
estimates of charter wastage in each area that could then be deducted 
by the IPHC from the charter allocation to obtain the charter catch 
limit in each area under this proposed rule.
    NMFS proposes that the deduction of wastage from each fishery's 
allocation to calculate its catch limit promotes the Council's 
objective for the CSP to determine catch limits for the commercial and 
charter halibut fisheries using a predictable and standardized 
methodology for separate accountability. As shown in Figure 1, the 
basis for the catch limit recommendations, the Fishery CEY, would no 
longer be reduced only by commercial halibut fishery wastage. Instead, 
the commercial fishery allocation would be reduced by the commercial 
halibut fishery's estimated wastage, and the charter fishery allocation 
would be reduced by the charter halibut fishery's estimated wastage. 
NMFS proposes that the deduction of wastage from each fishery's 
allocation promotes conservation because it would encourage better 
handling of discarded fish to reduce the discard mortality rates and 
thus increase fishery catch limits.

E. Annual Process for Setting Charter Management Measures

    Prior to 2012, charter management measures were recommended by the 
Council and implemented by NMFS through proposed and final rulemaking, 
or implemented by IPHC regulations without specific recommendations by 
the Council. The Council recommended a different approach under the CSP 
because it sought a more timely and responsive process to address 
harvest overages or underages, or changes in halibut exploitable 
biomass. The Scientific and Statistical Committee (SSC), the Council's 
primary scientific advisory body, reviewed and endorsed this process 
for analyzing and recommending charter management measures at its 
December 2012 meeting.
    In 2012 and 2013, charter management measures were implemented to 
limit the charter halibut fishery to its GHL using the process outlined 
below. The Council and IPHC have endorsed this same process for setting 
charter halibut management measures in Area 2C and 3A up to and 
following implementation of the CSP to limit the charter halibut 
fishery to its allocation and catch limit under the CSP. The steps in 
the annual process would continue as follows until modified by the 
Council or IPHC:
    1. In October, the Council's Charter Halibut Management 
Implementation Committee makes preliminary recommendations of proposed 
annual management measures for the next year for Area 2C and Area 3A 
for analysis.
    2. In December, the Council's advisory bodies and the public review 
the analysis of proposed management measures and make final 
recommendations to the Council.
    3. At its December Council meeting, the Council selects the charter 
halibut management measures to recommend to the IPHC that would most 
likely constrain charter halibut harvest for each area within its 
allocation, while considering the economic impacts on charter 
operations.
    4. In January of the next year at its annual meeting, the IPHC 
considers the Council recommendations and input from its stakeholders 
and staff. The IPHC then may adopt the Council's recommendation or 
alternative charter halibut management measures for Area 2C and Area 
3A. The IPHC recommends these measures to the Secretaries of State and 
Commerce consistent with the provisions of the Convention.
    5. In March, NMFS publishes in the Federal Register the charter 
halibut management measures for each area as part of the IPHC annual 
management measures accepted by the Secretary of State with the 
concurrence of the Secretary of Commerce.
    This approach is an improvement over the previous method of setting 
charter management measures though Federal proposed and final 
rulemaking often years after an overage had occurred. The current 
process reduces the delay in implementing regulations to address 
overages and allows the most recent halibut stock status and charter 
fishery data to be used to implement the appropriate measures for the 
next halibut fishing season. This method for setting charter harvest 
management measures is likely to limit the charter halibut fishery to 
its catch limit over time because adjustments to management measures 
could change in response to harvest overages and underages before the 
next season begins.
    The Council, SSC, IPHC, and NMFS would continue to assess 
effectiveness of this method of recommending and implementing charter 
management measures after the CSP is implemented. The SSC provides the 
Council, NMFS, and the public with scientific and technical reviews of 
regulatory amendment analyses, stock assessments, and research and data 
needs for fisheries management in Alaska. The Council expects that any 
modifications to the process for setting charter harvest restrictions 
would be reviewed by these entities.
    NMFS recognizes that, because the CSP would not change management 
measures during a sport fishing season, the management measures 
implemented prior to the start of a sport fishing season may result in 
harvests that are greater or less than the catch limit. However, the 
Council anticipates, and NMFS agrees, that over time, halibut harvests 
by the charter halibut fishery under the CSP would stabilize around the 
charter halibut catch limits, thereby promoting conservation and 
management objectives over the long term. The IPHC would continue to 
account for all removals when determining the annual combined catch 
limit under the CSP, and IPHC stock assessments would continue to 
account for charter halibut harvests that unintentionally exceed the 
fishery's catch limit. Operationally, overages may contribute to a 
corresponding decrease in the combined charter and commercial catch 
limit in the following year. Underages would accrue to the benefit of 
the halibut biomass and all user groups and could result in an increase 
in the combined catch limit in the following year. The Council 
determined, and NMFS agrees, that halibut fishery management under the 
CSP is more responsive to changes in halibut abundance than the GHL 
program.
    Because management measures would be determined annually under the 
CSP, and implemented as IPHC annual management measures, the Council 
recommended and NMFS proposes to remove two restrictions from Federal 
regulations: the one-fish daily bag limit for Area 2C at Sec.  
300.65(d)(2)(i); and the line limit at (d)(2)(iii). NMFS anticipates

[[Page 39136]]

that under the process described above, daily charter halibut fishery 
bag limits would be established in the IPHC annual management measures. 
It is important to note that by removing the one-fish bag limit from 
Federal regulations, NMFS will be relying on the IPHC annual management 
measures to implement that bag limit, if necessary. NMFS proposes that 
a Federal line limit regulation is no longer necessary for three 
reasons. First, the charter halibut limited access program regulations 
at Sec.  300.66(s) restrict the number of anglers retaining halibut to 
the number endorsed on the charter halibut permit being used for that 
charter fishing trip. Also, U.S. Coast Guard safety regulations limit 
the number of clients that may be onboard most charter vessels. 
Additionally, a line limit for Area 2C is unnecessary because line 
limits do not directly restrict halibut retention by charter vessel 
anglers. NMFS proposes to revise a prohibition at Sec.  300.66(m) to 
reference the IPHC annual management measures for charter halibut 
fishery gear and harvest restrictions.

F. Other Restrictions Under the CSP

    The Council recommended two additional restrictions as part of the 
proposed CSP. NMFS would implement a prohibition on retention of 
halibut by skipper and crew on a charter vessel fishing trip. 
Previously, NMFS published a final rule (74 FR 21194, May 6, 2009) to 
implement, along with other restrictions, a prohibition on operator, 
guide, and crew retention of halibut in Area 2C. The proposed CSP would 
not modify this prohibition in Area 2C, but would implement the same 
prohibition in Area 3A. As noted in Section 2.3.2 of the EA/RIR/IRFA 
prepared for the CSP (see  ADDRESSES), NMFS estimates that prohibiting 
retention of halibut by operators, guides, and crew reduces charter 
halibut harvest by approximately 5.5 percent in Area 3A relative to 
current harvests (see www.alaskafisheries.noaa.gov/npfmc/PDFdocuments/halibut/2013charterAnalysis_1212.pdf). The Council recommended that 
NMFS implement this prohibition in the CSP to clarify that only halibut 
harvested by charter anglers will be counted toward the CSP charter 
halibut fishery allocation. Charter operators, guides, and crew are not 
considered charter anglers under current Federal regulations, and NMFS 
proposes it would not be appropriate for halibut harvested by these 
persons to be counted toward the charter halibut fishery harvest. 
Additionally, halibut harvested by charter operators, guides, and crew 
are difficult for enforcement agents to distinguish from halibut caught 
by charter clients.
    The Council also recommended, and NMFS proposes, to prohibit 
individuals who hold both a charter halibut permit and commercial 
halibut IFQ from fishing for commercial and charter halibut on the same 
vessel during the same day in Area 2C and Area 3A. This provision would 
facilitate enforcement, as different regulations apply to charter-
caught and commercially caught halibut. This provision would not 
prevent an individual who holds both a charter halibut permit and 
commercial halibut IFQ from conducting charter operations and 
commercial operations on separate vessels on the same day.
    NMFS proposes several additional restrictions to facilitate 
monitoring and enforcement of the CSP. To be consistent with the 
Council's recommendation to prohibit individuals who hold both a 
charter halibut permit and commercial halibut IFQ from fishing for 
commercial and charter halibut on the same vessel during the same day, 
this proposed rule also would prohibit individuals who hold both a 
charter halibut permit and a Subsistence Halibut Registration 
Certificate from using both permits to harvest halibut on the same 
vessel during the same day in Area 2C and Area 3A. This prohibition 
would allow enforcement officials and samplers to classify harvest 
among the charter, subsistence, and commercial halibut fisheries. 
Allowing multiple types of trips on a vessel in the same day could 
create uncertainty regarding how to classify and properly account for 
retained halibut.
    To enforce prohibitions on individuals fishing for commercial and 
charter halibut or for subsistence and charter halibut on the same 
vessel during the same day in Area 2C and Area 3A, NMFS would require 
charter vessel operators to indicate the date of a charter vessel 
fishing trip in the saltwater charter logbook and to complete all of 
the required fields in the logbook before the halibut are offloaded. 
These requirements would enable enforcement agents to determine whether 
that vessel was used on a charter vessel fishing trip that day. 
Beginning in 2009, charter anglers in Area 2C were required to sign the 
saltwater charter logbook to verify the accuracy of the reported catch. 
This signature requirement was intended to improve the accuracy of 
charter halibut harvest estimates, and improve the enforceability of a 
one-fish bag limit (74 FR 21194, May 6, 2009). NMFS proposes to extend 
the signature requirement to include charter anglers in Area 3A as part 
of the CSP in the event that additional harvest restrictions are 
implemented in that area.

IV. Guided Angler Fish (GAF)

A. Overview of GAF

    The proposed CSP would authorize supplemental individual transfers 
of commercial halibut IFQ as guided angler fish (GAF) to qualified 
charter halibut permit holders for harvest by charter vessel anglers in 
Areas 2C and 3A. Through the GAF program, qualified charter halibut 
permit holders may offer charter vessel anglers the opportunity to 
retain halibut up to the limit for unguided anglers when the charter 
management measure in place would limit charter vessel anglers to a 
more restrictive harvest limit. In other words, a charter vessel angler 
may retain a halibut as GAF that exceeds the daily bag limit and length 
restrictions in place for charter anglers only to the extent that the 
angler's halibut retained under the charter halibut management measure 
plus halibut retained as GAF do not exceed daily bag limit and length 
restrictions imposed on unguided anglers. For example, the daily 
halibut retention limit for unguided sport anglers in Area 2C and Area 
3A is currently two halibut of any size per calendar day. Assuming this 
same unguided sport angler retention limit, charter vessel anglers 
would retain GAF only when the charter halibut management measure for 
that area limits charter halibut anglers to retaining fewer than two 
fish of any size per calendar day. The Council recommended this 
restriction on GAF use to maintain parity between guided and unguided 
sport halibut retention limits.
    Table 5 presents examples of the potential uses of GAF by charter 
vessel anglers in Area 2C and Area 3A under various potential annual 
management measures, assuming that unguided sport anglers are subject 
to the current regulations limiting retention to two halibut of any 
size per calendar day.

[[Page 39137]]



  Table 5--Options for Guided Angler Fish (GAF) Harvest Under Different
  Annual Management Measures, Assuming Unguided Anglers Are Allowed To
                   Retain Two Fish of any Size per Day
------------------------------------------------------------------------
 If the annual management measure
for charter anglers is a daily bag     then each charter vessel angler
             limit of:                    could use GAF to retain:
------------------------------------------------------------------------
one halibut of a restricted size    either one halibut meeting the
 (e.g., reverse slot limit of U45/   restrictive size requirement under
 O68).                               the charter angler restriction plus
                                     one GAF halibut of any size or two
                                     GAF halibut of any size.
one halibut of any size...........  one halibut of any size under the
                                     charter angler restriction plus one
                                     GAF halibut of any size.
two halibut, of which only one      one halibut of any size under the
 fish may be larger than a maximum   charter angler restriction plus one
 size limit. If a charter vessel     GAF of any size.
 angler retains only one halibut
 in a calendar day, that halibut
 may be of any length.
two halibut of any size...........  not applicable.
------------------------------------------------------------------------

    The Council recommended including GAF in the Area 2C and Area 3A 
CSP to increase operating flexibility for participants in the 
commercial and charter halibut fisheries. The Council determined, and 
NMFS agrees, that the GAF program could increase fishing opportunities 
in the charter fishery for those anglers desiring such an opportunity. 
The GAF program also would give commercial halibut quota share holders 
greater flexibility when developing their annual harvest strategies. A 
person holding halibut QS for an area has harvesting privileges for an 
amount of halibut (IFQ) that is derived annually from his or her QS 
holdings in that area and authorized on his or her IFQ permit. The 
opportunity for annual transfers of IFQ to GAF could benefit some 
halibut IFQ holders if they receive more revenue from transferring IFQ 
to GAF than they would receive from harvesting the IFQ themselves. In 
recommending the CSP preferred alternative, the Council stated its 
intent to annually review GAF use following implementation. NMFS and 
the Council intend that the GAF program would allow the charter halibut 
fishery to increase halibut harvest beyond area annual catch limits 
specified in the annual management measures up to guided sport catch 
limits. In addition the GAF program creates a system wherein the 
charter halibut fishery compensates the commercial halibut fishery for 
decreases in commercial halibut IFQ harvest.
    In this proposed rule, NMFS proposes eligibility criteria, a 
transfer process, transfer restrictions, and additional reporting 
requirements to implement the GAF transfer program. These elements are 
described in the following sections, B through F, respectively.

B. Eligibility Criteria To Transfer Between IFQ and GAF

    An IFQ holder is eligible to transfer halibut IFQ as GAF if he or 
she holds at least one unit of halibut QS and has received an annual 
IFQ permit authorizing harvest of IFQ in either the Area 2C and Area 3A 
commercial halibut fishery. A charter halibut permit holder is eligible 
to receive IFQ as GAF if he or she holds one or more charter halibut 
permits in the management area that corresponds to the IFQ permit area 
from which the IFQ would be transferred.
    Holders of military charter halibut permits would also be eligible 
to receive IFQ as GAF. Military charter halibut permits are issued to 
U.S. Military Morale, Welfare, and Recreation programs in Alaska that 
offer charter halibut fishing to service members harvesting in Area 2C 
or Area 3A. To operate a charter vessel, the U.S. Military Morale, 
Welfare, and Recreation program would need to obtain a military charter 
halibut permit by application to NMFS or could purchase a charter 
halibut permit on the commercial market (see regulations at Sec.  
300.67 for additional detail).
    Community Quota Entities (CQEs) holding community charter halibut 
permits are also eligible to receive IFQ as GAF. Regulations at Sec.  
300.67(k)(2) list the communities that are eligible to receive 
community charter halibut permits from NMFS. In addition to community 
charter halibut permits, a CQE may acquire non-community charter 
halibut permits by transfer. The final rule implementing the charter 
halibut limited access program describes community charter halibut 
permits and the application and eligibility requirements for CQEs to 
receive community charter halibut permits (75 FR 554, January 5, 2010).
    There are several ways in which a CQE in Area 2C or Area 3A that is 
eligible to receive community charter halibut permits and holds charter 
halibut permits could be a party to a GAF transaction. CQEs could 
receive a transfer of GAF for use on a community charter halibut permit 
or regular charter halibut permit that it holds. Community Quota 
Entities that are eligible to hold charter halibut permits also are 
authorized to hold IFQ under the IFQ Program under regulations 
established by Amendment 66 to the Fishery Management Plan for 
Groundfish of the Gulf of Alaska (69 FR 23681, April 30, 2004). 
Amendment 66 defined CQEs in the Gulf of Alaska, including in Areas 2C 
and 3A, and authorized those CQEs to receive transferred halibut or 
sablefish QS on behalf of the community it represents and to lease the 
resulting IFQ to fishermen who are residents of that community. Thus, a 
CQE holding IFQ would be eligible to transfer the IFQ as GAF to a 
holder of a charter halibut permit, community charter halibut permit, 
or military charter halibut permit if it meets all other proposed GAF 
transfer requirements at Sec.  300.65(c)(5).
    As proposed in regulations at Sec.  300.65(c)(5)(ii)(D), NMFS would 
approve an application for transfer of IFQ and GAF between an eligible 
IFQ holder and an eligible holder of a charter halibut permit, 
community charter halibut permit, or military charter halibut permit if 
NMFS determines that (1) the transfer would not cause the GAF holder to 
exceed use limits specified (see ``GAF Transfer Restrictions'' section 
below); (2) there are no fines, civil penalties, sanctions, or other 
payments due and owing, or outstanding permit sanctions, resulting from 
Federal fishery violations involving either person or permit; and (3) 
other pertinent information requested on the application has been 
supplied. Additionally, in cases where the applicant is both an IFQ and 
a GAF holder, to approve an application for transfer, NMFS would need 
to determine that the transfer would not cause the applicant to exceed 
use limits specified for GAF holders or those for halibut IFQ holders 
at Sec.  679.42. NMFS would need to make additional determinations to 
approve a transfer between IFQ and GAF for a CQE. In

[[Page 39138]]

addition to the requirements listed above, NMFS would approve the 
transfer upon making a determination that (1) the CQE applying to 
transfer IFQ to GAF is eligible to hold and receive IFQ on behalf of a 
eligible community in Area 2C or Area 3A, as specified at Sec.  
300.67(k)(2); (2) the CQE applying to receive GAF from an Area 2C or 
Area 3A IFQ holder holds one or more community charter halibut permits 
or charter halibut permits for the corresponding area; and (3) the CQE 
applying to transfer between IFQ and GAF has submitted a complete 
annual report(s) to NMFS as required by Sec.  679.5(l)(8).
    See the ``GAF Transfer Restrictions'' section for further 
discussion on the proposed regulations governing transfers between IFQ 
and GAF for Community Quota Entities.

C. Process To Complete a Transfer Between IFQ and GAF

1. Application To Transfer Between IFQ and GAF
    For transfers between IFQ and GAF, the IFQ holder and charter 
halibut permit holder receiving GAF would be required to complete, 
sign, and submit an application to NMFS to transfer halibut in numbers 
of fish between IFQ and GAF. NMFS would approve the transfer provided 
that application is complete, both parties are eligible to transfer, 
and there are no other administrative reasons to disapprove the 
transfer.
    The same application form would be used for transfers of IFQ to GAF 
and returns of GAF to IFQ. Application forms would be available on the 
NMFS Alaska Region Web site at http://alaskafisheries.noaa.gov/. 
Applications could be submitted by mail, hand delivery, or facsimile. 
Electronic submissions other than facsimile would not be acceptable 
because NMFS would require the original signature of the IFQ holder and 
the charter halibut permit holder. Additionally, unlike emails, fax 
transmittals give the applicant proof of receipt and protect the 
confidentiality of business and personally identifiable information. 
The applicants also would need to attest under penalty of perjury that 
legal requirements were met and all statements on the application are 
true, correct, and complete. Neither party would be required to 
complete a transfer application for an automatic return of unused GAF 
to IFQ on or around the automatic GAF return date each year. NMFS would 
not approve an application for transfer between IFQ and GAF after the 
automatic GAF return date. NMFS may develop an online system for 
transfers between IFQ and GAF at a later date.
2. Conversion of IFQ Pounds to Number of GAF
    NMFS would issue GAF in numbers of halibut. NMFS would post the 
conversion from IFQ pounds to a GAF for Area 2C and Area 3A for each 
fishing year on the NMFS Alaska Region Web site at http://alaskafisheries.noaa.gov. NMFS would post the conversion factor for the 
current fishing year before the beginning of the commercial halibut 
fishing season each year. The following paragraphs describe how the 
conversion factors from pounds of IFQ to number of GAF would be 
calculated.
    NMFS would require that for each GAF transferred from an IFQ holder 
to a charter halibut permit holder's GAF account, the equivalent number 
of net pounds of halibut rounded up to the nearest whole net pound 
would be removed from an IFQ holder's IFQ account. Conversely, CSP 
regulations would require that for each GAF returned from a charter 
halibut permit holder's GAF account, the equivalent number of net 
pounds of halibut IFQ rounded up to the nearest whole net pound would 
be returned to the IFQ holder's account. The same average net weight 
would be used for all conversions of IFQ to GAF and returns of GAF to 
IFQ within a calendar year.
    A request for transfer from IFQ to GAF would be made in numbers of 
fish, or the number of GAF to be transferred to the GAF permit holder. 
For example, if a charter permit holder requested, and NMFS approved, a 
transfer of 5 GAF and the conversion factor for that area was 20.7 lb 
(9.4 kg), then 104 lb (47.2 kg) of IFQ would be debited from the IFQ 
holder's account for that area as follows: 5 GAF x 20.7 lb = 103.5 lb 
(46.9 kg) and rounded up to 104 lb (47.2 kg). In current regulations, 
NMFS accounts for IFQ in whole net pounds and proposes to continue 
accounting in whole net pounds for transfers between IFQ and GAF. This 
method of rounding up to the nearest whole pound results in the fewest 
conversion errors when GAF are converted back to IFQ, as demonstrated 
below.
    Voluntary and automatic returns of GAF to IFQ would require NMFS to 
convert unharvested GAF back to net pounds of IFQ. To calculate the 
number of net pounds of halibut IFQ returned to the IFQ holder, NMFS 
would multiply the unharvested number of GAF by the conversion factor 
and round up to the nearest pound. In the example used above, if the 
parties agreed to a voluntary return of 2 GAF to the IFQ holder, NMFS 
would return 42 lb (19.1 kg) to the IFQ holder's account (2 GAF x 20.7 
lb = 41.4 lb (18.8 kg) and rounded to 42 lb).
    The conversion from IFQ pounds to number of fish for GAF would be 
based on the average weight of GAF from the previous year as estimated 
from GAF length data reported to NMFS through the proposed electronic 
GAF reporting system (see ``GAF Reporting Requirements'' section of 
this preamble for additional detail). NMFS anticipates that the average 
weight of GAF would likely be higher than non-GAF halibut harvested in 
the charter halibut fishery, particularly if charter halibut fishery 
management measures include a size restriction. Therefore, NMFS 
proposes to use average weight estimates for GAF to accurately account 
for GAF removals. Because average GAF lengths would not be available 
for the first year of the proposed CSP, NMFS would use the average net 
weight of a halibut landed in the charter fishery in each area (2C or 
3A) during the previous year, if no size limits were in effect, or from 
the most recent year without a size limit in effect. These average net 
weights would be based on data collected during ADF&G creel surveys. If 
no GAF were harvested in a year, the conversion factor would be 
calculated using this same method as for the first year of the program 
(i.e., NMFS would use the most recent average weight of charter fish 
harvested in an area based on ADF&G creel surveys).
3. GAF Permits
    Upon completion of the transfer between IFQ and GAF, NMFS would 
issue a GAF permit to the holder of a charter halibut permit, community 
charter halibut permit, or military charter halibut permit. The GAF 
permit would be assigned to the charter halibut permit specified by the 
GAF permit holder at the time of application. The GAF permit holder 
could offer GAF for harvest by charter vessel anglers on board the 
vessel on which the operator's GAF permit and the assigned charter 
halibut permit are used.
    GAF permit holders would be required to hold a sufficient number of 
GAF for charter vessel anglers to retain halibut in excess of the 
charter angler limit and up to limits in place for the unguided sport 
halibut fishery for that area. In other words, charter operators would 
be required to already possess the GAF prior to the fish being caught, 
i.e., GAF could not be obtained after harvesting of the fish. The GAF 
permit holder also would be required to have the GAF permit and the 
assigned charter halibut permit on board the vessel on which charter 
vessel anglers retain GAF,

[[Page 39139]]

and to present the permits if requested by an authorized enforcement 
officer. Similar to the requirement that charter halibut permit holders 
retain their saltwater charter logbooks for two years, GAF permit 
holders would be required to retain all GAF permits for two years after 
the date of issuance. GAF permits would need to be available for 
inspection upon request of an authorized enforcement officer.
    At the end of a charter halibut fishing trip in which GAF were 
retained, the GAF permit holder would be required to electronically 
report the total number of GAF retained under his or her GAF permit. 
The GAF permit holder would be required to report on the last day of a 
multi-day charter halibut fishing trip. NMFS would deduct this number 
of GAF from the GAF permit holder's account of unused GAF. NMFS 
proposes to require the GAF permit holder to complete a GAF electronic 
report by 11:59 p.m. (Alaska local time) upon completion of a charter 
halibut fishing trip in which GAF were retained to maintain as close to 
real-time accounting of GAF balances as possible.
    On approval of an application for transfer between IFQ and GAF, 
NMFS would issue a GAF permit to the charter halibut permit holder 
receiving GAF. A GAF permit would authorize the GAF permit holder to 
offer GAF to charter vessel anglers and allow charter vessel anglers to 
retain halibut in excess of the charter halibut harvest restriction, up 
to the limits on GAF use that are in the proposed regulations at Sec.  
300.65(c). GAF could be retained under a GAF permit only if, at the 
time the GAF are retained, the GAF permit holder's account contained at 
least the number of retained GAF. All GAF permits would expire at 11:59 
p.m. (Alaska local time) on the day prior to the automatic GAF return 
date. GAF could not be retained by charter vessel anglers after the 
expiration of GAF permits.
    NMFS would issue a revised GAF permit to the GAF permit holder each 
time during the year that it approved a transfer between IFQ and GAF 
for that GAF permit. Each GAF permit would be assigned to only one 
charter halibut permit, community charter halibut permit, or military 
charter halibut permit in Area 2C or Area 3A. Charter halibut permit 
holders requesting GAF would be required to specify the charter halibut 
permit to which the GAF permit would be assigned on the application for 
transfer between IFQ and GAF. The assignment between a charter halibut 
permit holder's GAF permit and their specified charter halibut permit, 
community charter halibut permit, or military charter halibut permit 
could not be changed during that year. If charter vessel anglers retain 
GAF, the GAF permit and the assigned charter halibut permit, community 
charter halibut permit, or military charter halibut permit would need 
to be on board the vessel on which the GAF halibut are retained, and 
available for inspection by an authorized enforcement officer.
    The proposed rule also would prohibit GAF, once transferred to a 
charter halibut permit holder and assigned to their specified charter 
halibut permit, from being transferred to another charter halibut 
permit, community charter halibut permit, or military charter halibut 
permit holder. This prohibition would prevent a charter halibut permit 
holder from receiving GAF by transfer with the intention of 
transferring the GAF to another charter halibut permit holder for 
compensation. The Council and NMFS generally recommend management 
provisions that encourage holders of harvest privileges to actively 
participate in the fishery for which they hold the privilege, rather 
than receiving financial benefits from another person who pays to use 
those harvest privileges. The Council's recommendation and NMFS' 
proposal to prohibit GAF permit holders from transferring GAF to 
another charter halibut permit holder is consistent with this policy 
objective to require a charter halibut permit holder who receives GAF 
by transfer to utilize GAF in conjunction with his or her charter 
halibut permit. In addition, these limitations would ensure that GAF 
could be accurately debited and tracked, and that GAF is being used 
only by authorized transferees.
4. Voluntary and Automatic Returns of GAF to IFQ
    Returns of unused GAF to the IFQ holder would be authorized using 
two methods: A voluntary return that could be requested from August 1 
through August 31 and that would be completed on or after September 1, 
and an automatic return 15 days before the end of the commercial 
halibut fishing season. Based on testimony from commercial and charter 
fishery participants, the Council recommended a voluntary return of GAF 
around September 1 to allow the IFQ holder sufficient time to harvest 
that IFQ before the end of the season (usually in mid-November). NMFS 
would accept applications for voluntary returns of unused GAF from 
August 1 through August 31 and NMFS would complete GAF returns on or 
after September 1. The earliest that NMFS would return GAF to IFQ is 
September 1. NMFS would process transfers and returns of IFQ and GAF as 
soon as possible after the dates stated in Federal regulations. Barring 
unforeseen circumstances (e.g., computer failure, weather closures, 
furlough, etc.), NMFS would conduct the transfer on the first business 
day after the stated transfer date. For example, if September 1 
occurred on the Sunday of Labor Day weekend, the transfers would occur 
the following Tuesday, at the earliest. For this reason, the regulatory 
text states that transfers would occur ``on or after'' September 1. 
This preamble uses the term ``return'' rather than ``transfer'' to be 
consistent with the terminology commonly used by the public during the 
development of GAF transfer provisions to describe the transfer of GAF 
to IFQ. Regulations at Sec.  300.65(b)(5) use the term transfer to 
describe the voluntary and automatic returns of GAF to IFQ. These terms 
are synonymous.
    There would also be an automatic mandatory return of unused GAF 15 
days prior to the end of the commercial halibut fishing season. The end 
of the commercial halibut fishing season is specified in the IPHC 
annual management measures published by NMFS in the Federal Register 
each year. On and after this automatic return date, unused GAF would no 
longer be authorized for use in the charter fishery in the current 
year. Applications for transfer of IFQ to GAF would not be accepted 
after October 15, to ensure that all GAF transactions are completed 
before the automatic return date. No application would be required for 
the automatic return of unused GAF. NMFS would return any remaining 
unharvested GAF to the IFQ holder from whom it was derived. NMFS 
recognizes that some GAF permit holders likely would have a balance of 
unharvested GAF after most charter fishing trips had been completed for 
the year. Although the charter halibut fishery has typically been open 
from February 1 through December 31 in recent years, most fishing in 
the charter fishery occurs from May through August. ADF&G data indicate 
that approximately 96 percent of charter halibut harvest had occurred 
by August 31 in either Area 2C or Area 3A. The commercial halibut 
fishing season typically opens in March and closes in mid-November. 
Based on this information, NMFS and the Council believe that NMFS 
should return all remaining unused GAF to the IFQ permit holder 15 days 
prior to the end of the commercial halibut fishing season because it 
would not significantly affect charter vessel business operations in

[[Page 39140]]

aggregate. Further, this timeline would give the IFQ holder an 
opportunity to harvest the IFQ before the end of the commercial fishing 
season for that year. The IFQ holder also may choose to count the IFQ 
returned from GAF toward an underage for his or her halibut IFQ account 
for the next fishing year, as specified in regulations at Sec.  
679.40(e). On or as soon as possible after the voluntary or automatic 
GAF return dates, NMFS would convert GAF in number of fish to IFQ in 
net pounds using the conversion factor for that year and return the 
converted IFQ to the IFQ holder's account.

D. GAF Transfer Restrictions

    Through the GAF program, the Council intended to provide IFQ 
holders some flexibility in how they use their IFQ, with limitations. 
The Council recommended and NMFS proposes restrictions on the amount of 
IFQ that an IFQ holder could transfer as GAF and on the number of GAF 
that could be assigned to one GAF permit. The restrictions on transfers 
of GAF are intended to prevent a particular individual, corporation, or 
other entity from acquiring an excessive share of halibut fishing 
privileges as GAF. The restrictions on the amount of IFQ that an IFQ 
holder may transfer are intended to further the goals of the Council 
and IFQ program for an owner-onboard fishery. The proposed rule would 
implement the Council's recommendations for three GAF transfer 
restrictions.
    First, IFQ holders in Area 2C would be limited to transferring up 
to 1,500 lb (680.4 kg) or 10 percent, whichever is greater, of their 
initially issued annual halibut IFQ for use as GAF. In Area 3A, IFQ 
holders could transfer up to 1,500 lb or 15 percent, whichever is 
greater, of their initially issued annual halibut IFQ for use as GAF. 
NMFS proposes that IFQ holders in Area 3A would be able to transfer up 
to 15 percent of the IFQ as GAF because IFQ holdings are generally 
larger in Area 3A than in Area 2C, and restricting Area 3A IFQ holders 
to leasing up to 10 percent of their IFQ holdings could limit the 
amount of IFQ available for lease as GAF (section 2.5.12.2 of the EA/
RIR/IRFA). Allowing Area 3A IFQ holders to lease 15 percent of their 
IFQ holdings as GAF would provide Area 3A IFQ holders more flexibility 
in determining whether to lease IFQ as GAF and could provide more GAF 
to the Area 3A charter halibut fishery.
    The percentage of an IFQ holder's IFQ that is available for 
transfer would be based on fishable pounds at the start of the fishing 
year before any other transfers of IFQ had occurred. Using the start-
of-year balance would provide a fixed value on which to base the 
transfer limits that would allow NMFS and IFQ holders to accurately 
track the maximum amount of GAF that could be transferred. Second, 
under this proposed rule, no more than a total of 400 GAF would be 
assigned during one year to a GAF permit assigned to a charter halibut 
permit that is endorsed for six or fewer anglers. And third, no more 
than a total of 600 GAF would be assigned during one year to a GAF 
permit assigned to a charter halibut permit endorsed for more than six 
anglers. A person who holds both halibut IFQ and a CHP and would like 
to transfer that IFQ to GAF would be subject to the same transfer 
restrictions. The Council recommended different GAF limits for charter 
halibut permits to balance the GAF needs of different types of charter 
operations with its objective to maximize the opportunity for all 
charter operators to acquire GAF. Because holders of charter halibut 
permits endorsed for more than six anglers are likely to be larger 
charter operations, the Council was concerned these larger charter 
operations would have more financial resources to acquire GAF than 
smaller operations unless a limit was placed on the number of GAF that 
could be assigned to a charter halibut permit. NMFS agrees that the 
proposed limit for assigning GAF to charter halibut permits 
accommodates the GAF needs of different charter operation types and 
promotes the Council's objective to offer all charter businesses the 
opportunity to lease IFQ as GAF.
    Commercial halibut IFQ regulations at Sec.  679.42(f)(1)(i) and 
(ii) also include QS use limits that are intended to prevent a 
particular individual, corporation, or other entity from acquiring an 
excessive share of commercial halibut fishing privileges. NMFS 
determines individual and collective interest in halibut fishing 
privileges by summing QS used by that person and a portion of any QS 
used by an entity in which that person has an interest. NMFS considers 
the person's portion of the QS used by the entity equal to the share of 
interest the person has in that entity. For example, if an individual 
uses 50,000 units of Area 2C halibut QS and has a 5 percent interest in 
a company that uses 750,000 units of Area 2C halibut QS, the amount of 
Area 2C halibut QS that person would be considered to use for purposes 
of the limits at Sec.  679.42(f)(1)(i) and (ii) is 50,000 units (his 
personal holdings) plus 37,500 units (5 percent interest for the 
750,000 units in the company using Area 2C halibut QS). This 
individual's use of 87,500 units would not exceed the Area 2C QS use 
limit of 599,799 units.
    For purposes of administering the QS use limits at Sec.  
679.42(f)(1)(i) and (ii), NMFS proposes to include the QS equivalent of 
IFQ transferred to GAF in the calculation of a person's QS use. Using 
the example above, if the QS holder transferred the equivalent of 100 
lb (45.4 kg) of IFQ as GAF to a charter halibut permit holder, NMFS 
would continue to include the QS equivalent of the IFQ transferred to 
GAF in the calculation of that person's QS use for purposes of the QS 
use limits at Sec.  679.42(f)(1)(i) and (ii). NMFS proposes this 
approach because it considers a transfer of IFQ to GAF a use of halibut 
QS. A transfer of IFQ to GAF would be voluntary, and the halibut QS 
holder likely would receive a benefit from the transfer according to 
the terms of the transfer agreement with the charter halibut permit 
holder receiving GAF. Furthermore, it is possible under the proposed 
CSP for a person to still use halibut IFQ that was transferred as GAF 
in the commercial halibut fishery before the end of the commercial 
fishing season if the GAF were not harvested in the charter fishery, 
and the IFQ was returned to the QS holder through a voluntary or 
automatic return as described in the preceding section.

E. Community Quota Entity GAF Transfer Restrictions

    Under existing regulations at Sec.  679.41, Community Quota 
Entities in Areas 2C and 3A may receive quota share by transfer and 
lease the resulting IFQ to eligible community residents for use in the 
commercial fishery. This proposed rule would not modify existing 
regulations on the use of IFQ by CQEs in the commercial fishery. This 
proposed rule would allow CQEs to transfer the IFQ derived from QS held 
by the CQE to be used as GAF. This proposed rule would place 
limitations on how much IFQ could be transferred as GAF depending on 
whether the GAF was used by a CQE, an eligible community resident, or 
by a non-resident. In addition, this proposed rule would allow a CQE to 
receive GAF by transfer.
    Under the proposed rule, a CQE holding halibut IFQ in Area 2C or 
Area 3A would be authorized to transfer that IFQ as GAF. However, the 
Council recommended that transfers between IFQ and GAF for CQEs be 
exempt from the limit on the amount of GAF that can be transferred in 
certain circumstances. NMFS proposes and the Council recommends that 
any amount of IFQ

[[Page 39141]]

which a CQE holds could be leased as GAF to itself, to eligible 
community residents of the CQE community, or to other CQEs. For 
example, if the CQE holds IFQ it could transfer that IFQ to GAF, and 
then assign the resulting GAF to a community halibut permit or charter 
halibut permit held by the CQE, to an eligible community resident 
holding a charter halibut permit, or to another CQE holding community 
charter halibut permits or charter halibut permits. In these cases, the 
amount of GAF that could be transferred would not be subject to 
limitations based on the amount of IFQ initially issued to the CQE 
(i.e., the entire amount of IFQ held by a CQE could be transferred as 
GAF and assigned to these entities). NMFS believes that exempting CQEs 
from GAF transfer restrictions in these circumstances would provide a 
CQE with more flexibility in determining how to utilize its holdings of 
IFQ, community charter halibut permits, or charter halibut permits. 
These exemption provisions allow the CQE to determine how to use 
halibut fishery privileges to maximize benefits for the CQE community 
and its residents.
    If the CQE is transferring IFQ as GAF and assigning that GAF to an 
individual that is not an eligible community resident, the CQE would be 
subject to the same limitations as other halibut quota share holders 
(i.e., up to 10 percent or 1,500 lb of his or her annual Area 2C IFQ, 
whichever is greater; and up to 15 percent or 1,500 lb of his or her 
annual Area 3A IFQ, whichever is greater).
    NMFS agrees that CQE transfers between IFQ and GAF should be exempt 
from GAF transfer restrictions in the instances described in the 
Regulatory Impact Review (see ADDRESSES). Although the Council used the 
term ``eligible community resident'' in recommending exemptions to the 
GAF transfer restrictions for CQEs under the CSP, the term eligible 
community resident as currently defined at Sec.  679.2 is not directly 
applicable to the charter halibut limited access program because 
businesses are expected to hold charter halibut permits, whereas the 
definition of an eligible community resident refers to an individual. 
Although a business could consist solely of an individual, it is 
possible for a business to be a partnership, corporation, or other 
legal entity. Therefore, NMFS is proposing that ``eligible community 
resident,'' for purposes of exempting transfers of IFQ to GAF from a 
CQE to an eligible community resident from GAF transfer restrictions, 
means that the charter halibut permit holder receiving GAF from the 
Community Quota Entity must operate that business out of the community. 
Current regulations at Sec.  300.67(k)(5) require that every charter 
vessel fishing trip authorized by a community charter halibut permit 
must begin or end within the boundaries of the community represented by 
the CQE holding the permit. The regulations do not require that an 
eligible community resident of the CQE community use the community 
charter halibut permit. NMFS is preparing another proposed rule that 
would further modify the definition of ``eligible community resident,'' 
but the changes proposed in that rule would not affect the changes 
proposed here.
    NMFS proposes to apply the same requirement for using community 
charter halibut permits currently applicable to CQEs to the definition 
of eligible community resident for purposes of IFQ to GAF transfers 
involving CQEs. The proposed rule would revise the definition of 
eligible community resident for purposes of IFQ to GAF transfers under 
the Area 2C and Area 3A CSP. A person (either an individual or a non-
individual entity) holding a charter halibut permit would need to 
either begin or end a charter vessel fishing trip authorized by their 
charter halibut permit within the boundaries of the community 
represented by the CQE to qualify as an eligible community resident of 
that CQE for purposes of IFQ to GAF transfers.
    This proposed rule would also allow a CQE to receive GAF directly 
by transfer from either a CQE or other persons holding GAF. Although 
any GAF a CQE receives by transfer would be exempt from limits on the 
amount of IFQ that can be transferred as GAF in the circumstances 
described above, all transfers of IFQ to GAF in which the IFQ is held 
by a CQE would be limited by an existing halibut IFQ regulation at 
Sec.  679.42(f)(6). This regulation specifies that ``[n]o individual 
that receives IFQ derived from halibut QS held by a Community Quota 
Entity may hold, individually or collectively, more than 50,000 lb 
(22.7 mt) of IFQ halibut derived from any halibut QS source.'' As 
described above, NMFS determines individual and collective ownership 
interest by summing IFQ held or used by that person and a portion of 
any IFQ held or used by an entity in which that person has an interest. 
NMFS considers the person's portion of the IFQ held or used by the 
entity equal to the share of interest the person has in that entity. 
For example, if an individual holds or uses 100 lb (45.4 kg) of IFQ and 
has a 5 percent interest in a company that holds or uses 100 lb of IFQ 
that was derived from halibut QS held by a CQE, the amount of IFQ that 
person would be considered to hold for the IFQ limit calculation at 
Sec.  679.42(f)(6) is 100 lb (his personal holdings) plus 5 lb (2.3 kg) 
(5 percent interest for the 100 lb in the company holding IFQ). In this 
example, this individual's holdings of 105 lb (47.6 kg) would not 
exceed the IFQ limit of 50,000 lb for purposes of Sec.  679.42(f)(6).
    The Council recommended, and this rule proposes, to include GAF 
derived from halibut IFQ held by a CQE in this individual and 
collective IFQ holding limit. Hence, the proposed rule would limit an 
individual receiving either IFQ or GAF derived from IFQ held by a CQE 
to holding individually or collectively, no more than 50,000 lb (22.7 
mt) of halibut IFQ and GAF derived from the IFQ, combined. This 
proposed rule does not modify existing regulations at Sec.  
679.42(f)(6), but this discussion provides notice to the public on how 
the use caps applicable in this regulation would be calculated. Thus, 
for an individual that holds GAF derived from IFQ held by a CQE, IFQ 
derived from QS held by a Community Quota Entity, or both, NMFS would 
calculate that individual's total halibut IFQ and GAF holdings by (1) 
multiplying the total number of GAF held individually and collectively 
by the conversion factor for that year (see ``Conversion between IFQ 
and GAF'' section above) to determine the equivalent number of halibut 
net pounds held, and (2) adding the equivalent number of halibut net 
pounds held to the total number of IFQ equivalent pounds held 
individually and collectively by that person.

F. GAF Reporting Requirements

    The proposed rule would implement new recordkeeping and reporting 
requirements for GAF in the ADF&G saltwater charter logbooks, in 
addition to saltwater charter logbook reporting requirements currently 
specified at Sec.  300.65(d). It also would require GAF permit holders 
to record information on the GAF permit; separately report retained GAF 
by 11:59 p.m. (Alaska local time) on the last day of the fishing trip 
in which GAF were retained using a NMFS-approved electronic reporting 
system; and retain the GAF permits for two years.
    The ADF&G Statewide Sport Fishing Charter Trip Logbook is the 
primary reporting requirement for operators in the charter fisheries 
for all species harvested in saltwater in Areas 2C and 3A. The ADF&G 
developed the saltwater charter logbook program in 1998 to provide 
information on actual participation and harvest by individual vessels 
and businesses in charter

[[Page 39142]]

fisheries for halibut as well as other state-managed species. The 
saltwater charter logbook data are compiled to show where fishing 
occurs, the extent of participation, and the species and numbers of 
fish caught and retained by individual anglers. This information is 
essential for regulation and management of the charter halibut 
fisheries in Area 2C and Area 3A. In recent years, ADF&G has added 
saltwater charter logbook reporting requirements to collect information 
required to implement and enforce Federal charter halibut regulations, 
such as the Area 2C one-halibut per day bag limit and the charter 
halibut limited access program.
    This proposed rule would continue to require the ADF&G saltwater 
charter logbook as the primary reporting method for operators in the 
charter halibut fishery. The CSP would require the person to whom ADF&G 
issued a saltwater charter logbook to retain and make available for 
inspection by authorized enforcement personnel the completed original 
logbooks for two years following the charter vessel fishing trip. This 
requirement would be necessary to enforce annual management measures 
and GAF reporting requirements.
    Charter guides would be required to mark retained GAF by removing 
the tips of the upper and lower lobes of the caudal (tail) fin. 
Additionally, the charter vessel guide would be required to retain the 
carcass showing caudal fin clips until the halibut fillets were 
offloaded so that enforcement could verify the length and that the fish 
was retained as GAF. These measures would aid in the monitoring and 
enforcement of GAF provisions.
    For each charter vessel fishing trip on which charter vessel 
anglers retain GAF, charter vessel guides would be required to report 
on an ADF&G saltwater charter logbook (1) the GAF permit number under 
which the GAF were retained, and (2) the number of GAF retained by each 
charter vessel angler during the trip. For charter vessel fishing trips 
completed on a single day, charter vessel guides would be required by 
Federal regulations to complete these fields in the saltwater charter 
logbook before any halibut are offloaded or charter vessel anglers 
disembark from the vessel. For multi-day charter vessel fishing trips, 
charter vessel guides would be required to complete the GAF reporting 
requirements in a saltwater charter logbook on board the vessel by the 
end of each day of the trip. These saltwater charter logbook reporting 
requirements would facilitate GAF recordkeeping and enforcement of 
charter vessel angler daily bag and possession limits. NMFS also would 
use the GAF reporting fields in the saltwater charter logbook to verify 
information reported in the electronic GAF reporting system.
    NMFS proposes that for each halibut retained as GAF, charter vessel 
guides would immediately record on the GAF permit the date and total 
halibut length in inches. This requirement would facilitate on-the-
water enforcement and improve the accuracy of the GAF lengths reported 
electronically to NMFS.
    NMFS would use an electronic GAF reporting system to manage GAF 
accounts and report GAF lengths. Near real-time reporting of GAF 
landings, and other GAF account and permit information is essential to 
support participant access to current account balances for account 
management and regulatory compliance, and to monitor account transfers 
and GAF landings history. Management personnel need near real-time 
account information to manage permit accounts, conduct transfers, and 
assess fees. Enforcement personnel need real-time account information 
to monitor transfers between IFQ and GAF and monitor compliance with 
authorized GAF harvests and other program rules.
    In the commercial IFQ program, regulations at Sec.  679.5(e) 
require that Registered Buyers report fisheries landings electronically 
using a secure, password-protected Internet-based system approved by 
NMFS. The final steps of the electronic IFQ reporting process generate 
a time-stamped receipt displaying landings data. Commercial Registered 
Buyers must print, and along with the individual IFQ fisherman, must 
sign copies of the receipt, which must be maintained and made available 
for a specified time period for inspection by authorized NMFS or 
enforcement personnel. Printing of this receipt indicates the report 
sequence is complete and the IFQ account(s) has been properly debited.
    Under the CSP GAF program, NMFS would also require secure 
electronic reporting. Multiple technologies may be needed to provide 
essential services to a GAF fleet that would be widely distributed 
throughout remote locations in Area 2C and Area 3A. NMFS is proposing 
an Internet-based reporting system for GAF electronic reporting because 
that is likely to be the most efficient and convenient method for 
charter operators to report GAF, given the prevalence of Internet use 
among the general public.
    Although real-time data are necessary for accurate account 
management, the data requirements for inseason GAF account management 
are relatively minor and simple relative to that required for saltwater 
charter logbooks. GAF permit holders would be required to complete the 
GAF electronic report before 11:59 p.m. (Alaska local time) on the last 
day of a charter vessel fishing trip in which a charter vessel angler 
retained GAF using a GAF permit.
    The GAF permit holder would be required to record the following 
information in the GAF electronic reporting system: (1) ADF&G saltwater 
charter logbook number in which GAF were recorded; (2) vessel 
identification number (State of Alaska issued boat registration number 
or U.S. Coast Guard documentation number) for the vessel on which GAF 
were retained; (3) GAF permit number used to retain GAF; (4) ADF&G 
Sport Fishing Guide license number held by the charter vessel guide who 
certified the ADF&G saltwater charter logbook sheet on which GAF were 
recorded; (5) total number of GAF caught and retained under the GAF 
permit number; and (6) total length in inches of each GAF retained. 
Charter vessel operators using a GAF permit assigned to a community 
charter halibut permit for a charter vessel fishing trip on which GAF 
were retained also would be required to report the community or port 
where the charter vessel fishing trip began and ended.
    Upon receipt of an electronic GAF report from a GAF permit holder, 
NMFS would respond with a confirmation number as evidence that NMFS 
received the GAF harvest report and the GAF account was properly 
debited. The GAF permit holder would be required to record this 
confirmation number on the corresponding GAF permit.
    The Council recommended that GAF permit holders landing GAF on 
private property be required to allow enforcement personnel access to 
the point of landing. The Council recognized, and NMFS agrees, that 
enforcing the harvest restrictions and GAF use restrictions may require 
enforcement staff to search for or inspect halibut retained by all 
charter vessel anglers in the charter fishery, including charter vessel 
anglers landing such halibut on private property. Section 773i(b) of 
the Halibut Act states that any authorized officer may, ``at reasonable 
times, enter and search or inspect, shoreside facilities in which fish 
taken subject to this subchapter are processed, packed or held.''
    The Council also recommended that GAF permit holders be required to 
allow ADF&G and IPHC scientific sampling personnel access to landed 
halibut on private property owned by the GAF permit holder, in addition 
to their

[[Page 39143]]

normal access in public areas. The Council recommended this element to 
facilitate monitoring of charter halibut harvest and the collection of 
scientific information from halibut, primarily GAF, harvested in the 
charter fishery. NMFS is uncertain about the potential impacts of 
requiring such access and is not currently proposing this provision. 
NMFS is considering how best to implement this proposed aspect of the 
CSP to provide the Council with the requested information to monitor 
GAF use, and provide the public with predictability regarding the 
procedural aspects of this provision. NMFS may propose this requirement 
after further research and consideration of public comments.

G. Cost Recovery for GAF

    The Magnuson-Stevens Fishery Conservation and Management Act at 
section 304(d)(2)(A) requires that cost recovery fees be collected for 
the costs directly related to the management, data collection, and 
enforcement of any limited access privilege programs. This includes 
programs such as the commercial halibut IFQ program, under which a 
dedicated allocation is provided to IFQ permit holders. Fees owed are a 
percentage, not to exceed 3 percent, of the ex-vessel value of fish 
landed and debited from IFQ permits. Each year, NMFS sends fee 
statements to IFQ holders whose annual IFQ was used; and those holders 
must remit fees by January 31 of the following year. The fee percentage 
has rarely exceeded 2 percent of the ex-vessel value of sablefish and 
halibut landings.
    NMFS does not expect allocation of additional funds to support the 
GAF program other than those derived from IFQ cost recovery fees. 
Therefore, under the proposed rule, commercial IFQ holders would be 
responsible for all cost recovery fees on IFQ equivalent pounds 
harvested for their IFQ permit(s) and also for net pounds transferred 
and harvested as GAF which originated from their IFQ account(s). NMFS 
would levy IFQ cost recovery fees on all net pounds of halibut 
harvested as IFQ in the commercial fishery and as GAF in the charter 
fishery.
    The IFQ permit holders who transfer IFQ to GAF would owe cost 
recovery fees for those GAF retained in the charter fishery. Fees for 
unharvested GAF converted back to IFQ equivalent pounds and harvested 
as commercial IFQ pounds would be assessed fees as commercial landings 
with value estimated as specified in current regulations at Sec.  
679.45. IFQ holders might share these costs with GAF users through 
contractual agreements, but those contractual arrangements would not be 
regulated or reviewed under the provisions of this proposed rule. IFQ 
and GAF that are not harvested during the year would not be subject to 
the cost recovery fee. Fish harvested in excess of the amount 
authorized by a GAF permit, or in excess of allowed IFQ permit 
overages, would not result in cost recovery fees owed because such 
overages would be handled as enforcement actions.
    NMFS establishes commercial cost recovery fee assessments in 
November each year. To determine cost recovery fee liabilities for IFQ 
holders, NMFS uses data reported by Registered Buyers to compute annual 
standard ex-vessel IFQ prices by month and port (or, if confidential, 
by port group). NMFS publishes these standard prices in the Federal 
Register each year. For example, NMFS published the 2012 standard ex-
vessel IFQ prices in the Federal Register on December 4, 2012 (77 FR 
71783). NMFS uses the standard prices to compute the total annual value 
of the IFQ fisheries. NMFS determines the fee percentage by dividing 
actual total management and enforcement costs by total IFQ fishery 
value. Only those halibut and sablefish holders who had landings on 
their permits owe cost recovery fees. The fee owed by an IFQ holder is 
the computed annual fee percentage multiplied by the value of his or 
her IFQ landings.
    NMFS would also apply standard ex-vessel values computed by area 
for commercial IFQ harvests to harvest of GAF. The proposed regulations 
specify that the IFQ permit holder may not challenge the standard ex-
vessel value applied to GAF landings by NMFS.
    Only ``incremental'' costs, i.e., those incurred as a result of IFQ 
management that include a GAF component, are assessable as cost 
recovery fees. Under the proposed rule, NMFS would determine the cost 
recovery liability for IFQ permit holders based on the value of all 
landed IFQ and GAF derived from his or her IFQ permits. NMFS would 
convert landings of GAF in Area 2C or Area 3A to IFQ equivalent pounds 
as specified in the ``Conversion between IFQ and GAF'' section above, 
and multiply the IFQ equivalent pounds by the standard ex-vessel value 
computed for that area to determine the value of IFQ landed as GAF. The 
value of IFQ landed as GAF as based on NMFS' standard prices would be 
added to the value of the IFQ permit holder's landed IFQ, and the sum 
would be multiplied by the IFQ fee percentage to estimate the person's 
IFQ fee liability. Additionally, the costs to develop the regulations, 
accounting, and reporting systems for the GAF program would be 
considered incremental and extensions of the IFQ program and would be 
submitted for cost recovery. Agency costs related to development of the 
GAF program in previous years have already been included in the IFQ 
cost recovery fee assessment, and costs associated with developing the 
GAF portion of this proposed rule would be submitted for cost recovery.

V. Other Regulatory Changes

    This action proposes four additional regulatory changes. These are 
minor changes that clarify existing regulations, but do not 
substantively change how the halibut fishery is managed. The first 
proposed change would clarify the regulations to describe the current 
process by which the IPHC Area 4 catch sharing plan is promulgated. The 
Area 4 catch sharing plan was codified in Federal regulations at Sec.  
300.65(b) in 1998. The Area 4 catch sharing plan allocates the Area 4 
commercial catch limit among Areas 4C, 4D, and 4E. Each year, the Area 
4CDE catch sharing plan subarea allocations are applied to the Area 
4CDE commercial catch limit recommended by the IPHC and published in 
the final rule implementing the annual management measures. The 
proposed regulatory change would clarify the description of this 
process in Sec.  300.65(b).
    The second proposed change would update instructions in regulations 
at Sec.  679.5(l)(7) for Registered Buyers to complete and submit the 
IFQ Registered Buyer Ex-vessel Value and Volume Report form. Registered 
Buyers submit this form to NMFS to report ex-vessel IFQ prices by month 
and port. These changes would remove unnecessary regulations listing 
specific information that is already provided on the IFQ Registered 
Buyer Ex-vessel Value and Volume Report form and IFQ Fee Submission 
form, and clarify the submission process. NMFS uses data reported by 
Registered Buyers to compute annual standard ex-vessel IFQ prices to 
determine cost recovery fee liabilities for IFQ holders.
    The third proposed change would clarify regulations at Sec.  679.40 
to describe the separate processes for allocating halibut IFQ and 
sablefish IFQ. The proposed regulations would also clarify that 
commercial halibut fishery overage adjustments from the previous year 
will be subtracted from a person's IFQ, and commercial halibut fishery 
underage adjustments from the previous year will be added to a person's 
IFQ. Current regulations provide for administrative adjustment of IFQ 
permits as a result of under- and

[[Page 39144]]

overfishing the IFQ the prior year. NMFS applies administrative 
adjustments at the beginning of each fishing year when annual IFQ 
accounts are created and IFQ pounds are allocated to QS holders.
    The fourth proposed change would revise regulations at Sec.  
679.45(a)(4) to update instructions for IFQ permit holders for 
submitting cost recovery fee payments to NMFS. NMFS proposes to update 
the fee payment form and instructions to incorporate GAF in the 
calculation of an IFQ permit holder's cost recovery fee liability.

VI. Classification

    Regulations governing the U.S. fisheries for Pacific halibut are 
developed by the IPHC, the Pacific Fishery Management Council, the 
North Pacific Fishery Management Council, and the Secretary of 
Commerce. Section 5 of the Northern Pacific Halibut Act of 1982 
(Halibut Act, 16 U.S.C. 773c) allows the Regional Council having 
authority for a particular geographical area to develop regulations 
governing fishing for halibut in U.S. Convention waters as long as 
those regulations do not conflict with IPHC regulations. The Halibut 
Act at section 773c(a) and (b) provides the Secretary with the general 
responsibility to carry out the Convention with the authority to, in 
consultation with the Secretary of the department in which the U.S. 
Coast Guard is operating, adopt such regulations as may be necessary to 
carry out the purposes and objectives of the Convention and the Halibut 
Act. This proposed action is consistent with the North Pacific Halibut 
Act and other applicable laws.

Executive Order 12866

    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866. This proposed rule also complies 
with the Secretary of Commerce's authority under the Halibut Act to 
implement management measures for the halibut fishery.

Regulatory Flexibility Act

    An initial regulatory flexibility analysis (IRFA) was prepared as 
required by section 603 of the Regulatory Flexibility Act. The IRFA 
describes the economic impact this proposed rule, if adopted, would 
have on small entities. A description of the action, why it is being 
considered, and the legal basis for this action may be found at the 
beginning of this preamble. A summary of the IRFA follows. Copies of 
the IRFA are available from the Council or NMFS (see ADDRESSES).
    The action would establish a CSP for the commercial and charter 
halibut fisheries in Area 2C and Area 3A. In addition to establishing 
allocations to each fishery, the Council's preferred alternative 
(Alternative 3 for Area 2C and Alternative 4 for Area 3A) would 
establish a new management system for the charter halibut fishery in 
these areas. Beginning February 1, 2011, operators of vessels with 
charter vessel anglers on board were required to have on board the 
vessel a valid charter halibut permit issued by NMFS. Therefore, the 
universe of regulated entities for the proposed CSP would be the 
holders of one or more charter halibut permits in Area 2C and Area 3A. 
In October 2012, NMFS published an implementation report for the 
charter halibut limited access program after all interim permits had 
been adjudicated and resolved. This report is available at http://alaskafisheries.noaa.gov/ram/charter/chp_review1012.pdf. At the time 
of publication, a total of 972 charter halibut permits had been issued 
to 356 businesses in Area 2C and 439 businesses in Area 3A. Of these, 
372 charter halibut permits in Area 2C and 339 permits in Area 3A are 
transferable. A charter halibut permit holder may transfer a 
transferable permit, subject to NMFS approval, to a qualified person at 
any time. The exact number of businesses that would be regulated by the 
proposed CSP therefore cannot be determined because some businesses 
hold CHPs in each regulatory area and may be counted twice, and because 
permits are continually being transferred, sold, or retired, or 
additional community charter halibut permits are being issued. As of 
October 2012, 107 community CHPs had been issued to 20 CQEs, and 7 U.S. 
Military Morale, Welfare and Recreation Program permits had been issued 
to 3 permit holders.
    The Small Business Administration (SBA) specifies that for marinas 
and charter or party vessels, a small business is one with annual 
receipts less than $7.0 million. The largest of these charter vessel 
operations, which are lodges, may be considered large entities under 
SBA standards, but that cannot be confirmed because NMFS does not have 
or collect economic data on lodges necessary to definitively determine 
total annual receipts. Thus, all charter vessel operations regulated by 
the proposed CSP would likely be considered small entities, based on 
SBA criteria, because they would be expected to have gross revenues of 
less than $7.0 million on an annual basis.
    Regulations that directly regulate entities representing small, 
remote communities in Areas 2C and 3A are included in this action. 
These regulations would authorize holding community charter halibut 
permits or regular charter halibut permits to use GAF as proposed under 
the CSP. GAF would offer charter vessel anglers in Area 2C or Area 3A 
an opportunity to harvest halibut in addition to the halibut harvested 
under the charter halibut management measure, up to the harvest limits 
in place for unguided sport anglers in that area. Eligibility for 
community charter halibut permits required that the community be 
represented by a non-profit community quota entity approved by NMFS. Of 
the 22 CQEs that formed, 11 Area 2C communities were eligible and each 
received 4 halibut community charter halibut permits and 9 Area 3A 
communities were eligible and each received 7 halibut community charter 
halibut permits. A maximum of 18 communities in Area 2C and 14 
communities in Area 3A are eligible to form CQEs and apply for charter 
halibut permits at any time. Therefore, there is a maximum of 32 
eligible community entities that could be authorized by the proposed 
action to use GAF. All of these eligible communities would be 
considered small entities under the SBA definitions.
    An IRFA is required to describe significant alternatives to the 
proposed rule that accomplish the stated objectives of the Halibut Act 
and other applicable statutes and that would minimize any significant 
economic impact of the proposed rule on small entities.
    The status quo alternative (Alternative 1) specifies the GHL as a 
target amount of halibut that anglers in the charter fishery can 
harvest in Area 2C and Area 3A. However, charter halibut harvests that 
exceed the GHL may have a de facto allocation effect of reducing the 
amount of halibut that may be harvested by the commercial fishery in 
the following year. Additionally, charter halibut fishery harvests 
beyond the GHL also can undermine overall harvest strategy goals 
established by the IPHC for the halibut resource, which affects all 
users. The primary objectives of the CSP are to define an annual 
process for allocating halibut between the charter and commercial 
fisheries in Area 2C and Area 3A, establish allocations that balance 
the differing needs of the charter and commercial fisheries that vary 
with changing levels of annual halibut abundance, and specify a process 
for determining harvest restrictions for charter anglers that are 
intended to limit harvest to the annual charter fishery catch limit.

[[Page 39145]]

    The Council considered four alternatives to the status quo for the 
proposed CSP. The Council selected a different preferred allocation 
alternative for Area 2C (Alternative 3) than Area 3A (Alternative 4). 
The Council's preferred alternative incorporated analysis, public 
testimony, and public comment provided on the first proposed rule for a 
CSP (76 FR 44156, July 22, 2011). The Council determined that 
Alternatives 3 and 4 were more likely than the status quo to meet its 
objective to establish a catch sharing plan for the commercial and 
charter fisheries by managing the charter halibut fishery to ensure 
that harvests stay within the fishery's allocated range. The Council 
also considered the charter halibut fishery's need to have a stable in-
season regulatory environment. Management of the charter halibut 
fishery under the preferred alternatives is intended to ensure that it 
is given advance notice and predictability with respect to application 
of management tools (e.g., bag limits, size restrictions) and season 
length. The preferred alternatives would facilitate the recommended 
process for recommending and implementing annual management measures 
for the charter halibut fishery prior to the beginning of the fishing 
season. NMFS agrees that the annual implementation of the CSP 
allocations and GAF under the preferred alternatives likely would 
facilitate management of the charter fishery in a way that is timely 
and responsive to changes in halibut abundance while providing 
participants in the charter halibut fishery with advance notice of the 
charter fishery management measures to be effective in the upcoming 
season. The other alternatives that were considered are described 
below.
    Alternatives 2 through 5 all recommend for Area 2C and Area 3A the 
implementation of a catch sharing plan with separate accountability by 
fishery for wastage, and a program to allow charter operators to lease 
IFQ from participants in the commercial halibut fishery, called the 
``guided angler fish'' or GAF program. All alternatives include fixed 
allocation percentages to the charter and commercial halibut fisheries. 
The Council determined that a fixed percentage allocation best met its 
objectives with the least impact to affected entities. Additionally, a 
fixed percentage allocation would be equitable because both the 
commercial and charter halibut fisheries would have allocations that 
vary with the abundance of the halibut resource. Thus, both the charter 
and commercial halibut fisheries would share in the benefits and costs 
of managing the resource for long-term sustainability under a combined 
catch limit.
    The main differences among Alternatives 2 through 5 are in how the 
allocation percentages are calculated. Allocation percentages to the 
charter halibut fishery are the lowest under Alternative 2 and highest 
under Alternative 5. Alternative 2 is the 2008 preferred alternative 
for a catch sharing plan. This alternative included allocation 
percentages that did not include upward adjustments for the switch from 
the Statewide Harvest Survey to ADF&G saltwater charter logbooks as the 
primary data source. Alternative 3 increased the allocations to the 
charter halibut fishery from Alternative 2 by the adjustment required 
to account for catch using the saltwater charter logbook instead of the 
SWHS. Alternative 4 would establish allocations for the charter halibut 
fishery based on the same methodology used in Alternative 2, plus an 
additional 3.5 percent of the combined catch limit at levels of 
combined catch limit less than 20 million pounds. At combined catch 
limits greater than 25 million pounds, the allocation would be the same 
as in Alternative 2. And finally, Alternative 5 was based on the 
allocations in Alternative 3, plus an additional 3.5 percent of the 
combined catch limit. The Council recommended Alternative 3 for Area 2C 
and Alternative 4 for Area 3A as its preferred alternative. When 
considering which charter allocation percentages were most appropriate 
and equitable for each management area, the Council took into account 
recent charter halibut harvests adjusted for both the logbook 
correction and crew harvest.
    Alternatives 2 through 5 differ in how annual charter halibut 
harvest restrictions would be implemented. Alternative 2 contains a 
pre-determined and fixed set of harvest restrictions that would be 
triggered automatically under the CSP depending on the combined catch 
limit determined each year by the IPHC. The other alternatives did not 
prescribe annual charter harvest restrictions as part of this rule and 
the CSP. Instead, charter harvest restrictions would continue to be set 
through a separate annual process of Council recommendations to the 
IPHC that was first used in 2012 and detailed in the ``Annual Process 
for Setting Charter Management Measures'' section of this preamble. The 
fixed management measures proposed under Alternative 2 were determined 
to be too rigid and did not give managers enough discretion to modify 
those measures as needed to best achieve harvest objectives. The 
process proposed under Alternatives 3 through 5 was considered more 
flexible, responsive to the most recent information available on 
halibut removals, and allowed greater stakeholder input in the 
selection of annual harvest restrictions.

Projected Reporting and Recordkeeping Requirements

    This action would impose new recordkeeping requirements. 
Applications to transfer between IFQ and GAF would be required to be 
submitted to and approved by NMFS for each transfer from IFQ to GAF. 
The application would require information about the IFQ permit holder 
and the charter halibut permit holder, including each permit holder's 
contact information, the IFQ permit holder's account from which halibut 
pounds are to be transferred, and the GAF account to which GAF are to 
be transferred. NMFS would rely on data already collected through the 
ADF&G saltwater charter logbooks for additional management and 
enforcement needs. In addition, CQEs eligible to receive community 
charter halibut permits would be required to submit information to NMFS 
(1) on the application for a transfer between IFQ and GAF, and (2) 
regarding the CQE's activity in an annual report by January 31 of the 
following year. NMFS would require charter vessel guides to record on 
the GAF permit the date and length of any GAF halibut caught and kept, 
immediately upon harvest. NMFS would also require GAF permit holders to 
report via an online system information about each GAF halibut caught 
and retained at the end of each fishing trip, and to record the GAF 
electronic reporting confirmation number on the GAF permit. The 
proposed recordkeeping and reporting requirements would not likely 
represent a ``significant'' economic burden on the small entities 
operating in this fishery.

Duplicate, Overlapping, or Conflicting Federal Rules

    NMFS has not identified other Federal rules that may duplicate, 
overlap, or conflict with the proposed rule.

Collection-of-Information

    This proposed rule contains collection-of-information requirements 
subject to review and approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act (PRA). These requirements have 
been submitted to OMB for approval.

[[Page 39146]]

The collections are listed below by OMB control number.

OMB Control No. 0648-0398

    Public reporting burden per response is estimated to average 2 
hours for the IFQ Permit Holder Fee Submission Form, and 2 hours for 
the IFQ Registered Buyer Ex-Vessel Value and Volume Report.

OMB Control No. 0648-0575

    Public reporting burden per response is estimated to average 4 
minutes for ADF&G Saltwater Charter Logbook entry for vessel guide and 
submittal; 1 minute per angler for angler signatures of ADF&G Saltwater 
Sport Fishing Charter Trip Logbook; 1 minute to measure each GAF, 1 
minute to record GAF lengths on the GAF permit, 4 minutes to enter data 
into the GAF electronic reporting system, and 1 minute to record the 
GAF electronic reporting confirmation number on the GAF permit.

OMB Control No. 0648-0592

    Public reporting burden per response is estimated to average 1 hour 
for an Application for Transfer Between IFQ and GAF; and 1 hour for an 
Application for Transfer Between IFQ and GAF by a Community Quota 
Entity.

OMB Control No. 0648-0272

    The IFQ permit is mentioned in this proposed rule; however, the 
public reporting burden for the IFQ permit in this collection-of-
information is not directly affected by this proposed rule.
    Public reporting burden includes the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    Public comment is sought regarding whether this proposed collection 
of information is necessary for the proper performance of the functions 
of the agency, including whether the information shall have practical 
utility; the accuracy of the burden estimate; ways to enhance the 
quality, utility, and clarity of the information to be collected; and 
ways to minimize the burden of the collection of information, including 
through the use of automated collection techniques or other forms of 
information technology.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to NMFS at the above address, and 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, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB control number.
    This proposed rule is consistent with Executive Order 12962 as 
amended September 26, 2008, which required Federal agencies to ensure 
that recreational fishing is managed as a sustainable activity and is 
consistent with existing law.

List of Subjects

50 CFR Part 300

    Administrative practice and procedure, Antarctica, Canada, Exports, 
Fish, Fisheries, Fishing, Imports, Indians, Labeling, Marine resources, 
Reporting and recordkeeping requirements, Russian Federation, 
Transportation, Treaties, Wildlife.

50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: June 24, 2013.
Alan D. Risenhoover,
Director, Office of Sustainable Fisheries, performing the functions and 
duties of the Deputy Assistant Administrator for Regulatory Programs, 
National Marine Fisheries Service.
    For the reasons set out in the preamble, NMFS proposes to amend 50 
CFR parts 300 and 679 as follows:

PART 300--INTERNATIONAL FISHERIES REGULATIONS

Subpart E--Pacific Halibut Fisheries

0
1. The authority citation for part 300, subpart E, continues to read as 
follows:

    Authority: 16 U.S.C. 773-773k.

0
2. In Sec.  300.61:
0
a. Add definitions for ``Annual combined catch limit'', ``Annual 
commercial catch limit'', ``Annual guided sport catch limit'', ``Guided 
Angler Fish (GAF)'', ``Guided Angler Fish (GAF) permit'', and ``Guided 
Angler Fish (GAF) permit holder'' in alphabetical order;
0
b. Remove the definition for ``Guideline harvest level (GHL)''; and
0
c. Revise the definition for ``Individual Fishing Quota (IFQ)''.
    The additions and revision read as follows:


Sec.  300.61  Definitions.

* * * * *
    Annual combined catch limit, for purposes of commercial and sport 
fishing in Commission regulatory areas 2C and 3A, means the annual 
total allowable halibut removals (halibut harvest plus wastage) by 
persons fishing IFQ and by charter vessel anglers.
    Annual commercial catch limit, for purposes of commercial fishing 
in Commission regulatory areas 2C and 3A, means the annual commercial 
allocation minus an area-specific estimate of commercial halibut 
wastage.
    Annual guided sport catch limit, for purposes of sport fishing in 
Commission regulatory areas 2C and 3A, means the annual guided sport 
allocation minus an area-specific estimate of guided sport halibut 
wastage.
* * * * *
    Guided Angler Fish (GAF) means halibut transferred within a year 
from a Commission regulatory area 2C or 3A IFQ permit holder to a GAF 
permit that is issued to a person holding a charter halibut permit, 
community charter halibut permit, or military charter halibut permit 
for the corresponding area.
    Guided Angler Fish (GAF) permit means an annual permit issued by 
the National Marine Fisheries Service pursuant to Sec.  
300.65(c)(5)(iii).
    Guided Angler Fish (GAF) permit holder means the person identified 
on a GAF permit.
* * * * *
    Individual Fishing Quota (IFQ), for purposes of this subpart, means 
the annual catch limit of halibut that may be harvested by a person who 
is lawfully allocated a harvest privilege for a specific portion of the 
annual commercial catch limit of halibut.
* * * * *
0
3. In Sec.  300.65, revise paragraphs (b), (c), and (d) to read as 
follows:


Sec.  300.65  Catch sharing plan and domestic management measures in 
waters in and off Alaska.

* * * * *
    (b) The catch sharing plan for Commission regulatory area 4 
allocates the annual commercial catch limit among Areas 4C, 4D, and 4E 
and will be adopted by the Commission as annual management measures and 
published in the Federal Register as required in Sec.  300.62.
    (c) Catch sharing plan (CSP) for Commission Regulatory Areas 2C and 
3A--(1) General. The catch sharing plan for Commission regulatory areas 
2C and 3A:
    (i) Allocates the annual combined catch limit for Commission 
regulatory areas 2C and 3A in order to establish the annual commercial 
catch limit and the annual guided sport catch limit for the

[[Page 39147]]

halibut commercial fishing and sport fishing seasons, pursuant to 
paragraphs (c)(3) and (4) of this section; and
    (ii) Authorizes the use of Commission regulatory areas 2C and 3A 
halibut IFQ as guided angler fish (GAF) for harvest by charter vessel 
anglers in the corresponding area, pursuant to paragraph (c)(5) of this 
section.
    (2) Implementation. The Commission regulatory areas 2C and 3A CSP 
annual allocations and guided sport catch limits are adopted by the 
Commission as annual management measures and published by NMFS in the 
Federal Register as required in Sec.  300.62.
    (3) Annual commercial catch limits. (i) The Commission regulatory 
areas 2C and 3A annual commercial catch limits are determined by 
subtracting wastage from the allocations in Tables 1 and 2 of this 
subpart E, adopted by the Commission as annual management measures, and 
published in the Federal Register as required in Sec.  300.62.
    (ii) Commercial fishing in Commission regulatory areas 2C and 3A is 
governed by the Commission's annual management measures and by 
regulations at 50 CFR part 679, subparts A, B, D, and E.
    (4) Annual guided sport catch limits. (i) The Commission regulatory 
areas 2C and 3A annual guided sport catch limits are determined by 
subtracting wastage from the allocations in Tables 3 and 4 of this 
subpart E, adopted by the Commission as annual management measures, and 
published in the Federal Register as required in Sec.  300.62.
    (ii) Sport fishing by charter vessel anglers in Commission 
regulatory areas 2C and 3A is governed by the Commission's annual 
management measures and by regulations at 50 CFR part 300, subparts A 
and E.
    (5) Guided Angler Fish (GAF). This paragraph (Sec.  300.65(c)(5)) 
governs the transfer of Commission regulatory areas 2C and 3A halibut 
between individual fishing quota (IFQ) and guided angler fish (GAF), 
the issuance of GAF permits, and GAF use.
    (i) General. (A) GAF is derived from halibut IFQ that is 
transferred from a Commission regulatory area 2C or 3A IFQ permit 
holder's account held by a person who also holds quota share (QS), as 
defined in Sec.  679.2 of this title, to a GAF permit holder's account 
for the same regulatory area.
    (B) A GAF permit authorizes a charter vessel angler to retain GAF 
that are caught in the Commission regulatory area specified on a GAF 
permit:
    (1) During the sport halibut fishing season adopted by the 
Commission as annual management measures and published in the Federal 
Register as required in Sec.  300.62, and
    (2) Subject to the GAF use restrictions at paragraphs (c)(5)(iv)(A) 
through (K) of this section.
    (C) NMFS will return unharvested GAF to the IFQ permit holder's 
account from which the GAF were derived on or after fifteen calendar 
days prior to the closing of the commercial halibut fishing season each 
year, subject to paragraph (c)(5)(ii) of this section and underage 
provisions at Sec.  679.40(e) of this title.
    (ii) Transfer Between IFQ and GAF--(A) General. A transfer between 
IFQ and GAF means any transaction in which halibut IFQ passes between 
an IFQ permit holder and a GAF permit holder as:
    (1) A transfer of IFQ to GAF, in which halibut IFQ equivalent 
pounds, as defined in Sec.  679.2 of this title, are transferred from a 
Commission regulatory area 2C or 3A IFQ permit account, converted to 
number(s) of GAF as specified in paragraph (c)(5)(ii)(E) of this 
section, and assigned to a GAF permit holder's account in the same 
management area;
    (2) A transfer of GAF to IFQ, in which GAF in number(s) of fish are 
transferred from a GAF permit holder's account in Commission regulatory 
area 2C or 3A, converted to IFQ equivalent pounds as specified in 
paragraph (c)(5)(ii)(E) of this section, and assigned to the same IFQ 
permit holder's account from which the GAF were derived; or
    (3) The return of unharvested GAF by NMFS to the IFQ permit 
holder's account from which it was derived, on or after 15 calendar 
days prior to the closing of the commercial halibut fishing season.
    (B) Transfer procedure--(1) Application for Transfer Between IFQ 
and GAF. A transfer between IFQ and GAF requires Regional Administrator 
review and approval of a complete Application for Transfer Between IFQ 
and GAF. Both the transferor and the transferee are required to 
complete and sign the application. Transfers will be conducted via 
methods approved by NMFS. The Regional Administrator shall provide an 
Application for Transfer Between IFQ and GAF on the NMFS Alaska Region 
Web site at http://alaskafisheries.noaa.gov/ram/default.htm. An 
Application for Transfer Between IFQ and GAF is not required for the 
return of unharvested GAF by NMFS to the IFQ permit holder's account 
from which it was derived, 15 calendar days prior to the closing of the 
commercial halibut fishing season for that year.
    (2) Application timing. The Regional Administrator will not approve 
any Application for Transfer Between IFQ and GAF before annual IFQ is 
issued for each year or after October 15. Applications to transfer GAF 
to IFQ will be accepted from August 1 through August 31 only.
    (3) Transfer due to court order, operation of law, or as part of a 
security agreement. NMFS may approve an Application for Transfer 
Between IFQ and GAF to return GAF to the IFQ permit holder's account 
from which it derived pursuant to a court order, operation of law, or a 
security agreement.
    (4) Notification of decision on application. (i) Persons who submit 
an Application for Transfer Between IFQ and GAF to the Regional 
Administrator will receive notification of the Regional Administrator's 
decision to approve or disapprove the application for transfer.
    (ii) If an Application for Transfer Between IFQ and GAF is 
disapproved, NMFS will provide the reason(s) in writing by mail, posted 
on the date of that decision.
    (iii) Disapproval of an Application for Transfer Between IFQ and 
GAF may be appealed pursuant to Sec.  679.43 of this title.
    (iv) The Regional Administrator will not approve a transfer between 
IFQ and GAF on an interim basis if an applicant appeals a disapproval 
of an Application for Transfer Between IFQ and GAF pursuant to Sec.  
679.43 of this title.
    (5) IFQ and GAF accounts. (i) Accounts affected by either a 
Regional Administrator-approved Application for Transfer Between IFQ 
and GAF or the return of unharvested GAF to IFQ on or after 15 calendar 
days prior to the closing of the commercial halibut fishing season for 
that year will be adjusted on the date of approval or return. 
Applications for Transfer Between IFQ and GAF that are transfers of GAF 
to IFQ that have been approved by the Regional Administrator will be 
completed not earlier than September 1. Any necessary permits will be 
sent with the notification of the Regional Administrator's decision on 
the Application for Transfer Between IFQ and GAF.
    (ii) Upon approval of an Application for Transfer Between IFQ and 
GAF for an initial transfer from IFQ to GAF, NMFS will establish a new 
GAF account for the GAF applicant's account and issue the resulting new 
GAF and IFQ permits. If a GAF account already exists from a previous 
transfer from the same IFQ account in the corresponding management area 
in that year, NMFS will modify the GAF recipient's GAF

[[Page 39148]]

account and the IFQ transferor's permit account and issue modified GAF 
and IFQ permits upon approval of an Application for Transfer Between 
IFQ and GAF.
    (iii) On or after 15 calendar days prior to the closing of the 
commercial halibut fishing season, NMFS will convert unharvested GAF 
from a GAF permit holder's account back into IFQ equivalent pounds as 
specified in paragraph (c)(5)(ii)(E)(2) of this section, and return the 
resulting IFQ equivalent pounds to the IFQ permit holder's account from 
which the GAF were derived, unless prevented by regulations at 15 CFR 
part 904.
    (C) Complete application. Applicants must submit a completed 
Application for Transfer Between IFQ and GAF to the Regional 
Administrator as instructed on the application. NMFS will notify 
applicants with incomplete applications of the specific information 
necessary to complete the application.
    (D) Application for Transfer Between IFQ and GAF approval criteria. 
An Application for Transfer Between IFQ and GAF will not be approved 
until the Regional Administrator has determined that:
    (1) The person applying to transfer IFQ to GAF or receive IFQ from 
a transfer of GAF to IFQ:
    (i) Possesses at least one unit of halibut quota share (QS), as 
defined in Sec.  679.2 of this title, in the applicable Commission 
regulatory area, either Area 2C or Area 3A, for which the transfer of 
IFQ to GAF is requested;
    (ii) Has been issued an annual IFQ Permit, as defined in Sec.  
679.4(d)(1) of this title, for the Commission regulatory area 
corresponding to the person's QS holding, either Area 2C or Area 3A, 
resulting from that halibut QS; and
    (iii) Has an IFQ permit holder's account with an IFQ amount equal 
to or greater than amount of IFQ to be transferred in the Commission 
regulatory area, either Area 2C or Area 3A, for which the transfer of 
IFQ to GAF is requested.
    (2) The person applying to receive or transfer GAF possesses a 
valid charter halibut permit, community charter halibut permit, or 
military charter halibut permit in the Commission regulatory area (Area 
2C or Area 3A) that corresponds to the IFQ permit area from or to which 
the IFQ will be transferred.
    (3) For a transfer of IFQ to GAF:
    (i) The transfer between IFQ and GAF must not cause the GAF permit 
issued to exceed the GAF use limits in paragraphs (c)(5)(iv)(H)(1) and 
(2) of this section;
    (ii) The transfer must not cause the person applying to transfer 
IFQ to exceed the GAF use limit in paragraph (c)(5)(iv)(H)(3) of this 
section; and
    (iii) There must be no fines, civil penalties, sanctions, or other 
payments due and owing, or outstanding permit sanctions, resulting from 
Federal fishery violations involving either person or permit.
    (4) If a Community Quota Entity (CQE), as defined in Sec.  679.2 of 
this title, submits a ``Community Quota Entity Application for Transfer 
Between Individual Fishing Quota (IFQ) and Guided Angler Fish (GAF),'' 
the application will not be approved until the Regional Administrator 
has determined that:
    (i) The CQE applying to transfer IFQ to GAF is eligible to hold IFQ 
on behalf of the eligible community in Commission regulatory area 2C or 
3A designated in Table 21 to 50 CFR part 679;
    (ii) The CQE applying to transfer IFQ to GAF has received 
notification of approval of eligibility to receive IFQ for that 
community as described in paragraph Sec.  679.41(d)(1) of this title;
    (iii) The CQE applying to receive GAF from a Commission regulatory 
area 2C or 3A IFQ permit holder holds one or more charter halibut 
permits or community charter halibut permits for the corresponding 
area; and
    (iv) The CQE applying to transfer between IFQ and GAF has submitted 
a complete annual report(s) as required by Sec.  679.5(l)(8) of this 
title.
    (E) Conversion between IFQ and GAF--(1) General. An annual 
conversion factor will be calculated to convert between net pounds 
(whole number, no decimal points) of halibut IFQ and number(s) of GAF 
(whole number, no decimal points) for Area 2C and Area 3A. This 
conversion factor will be posted on the NMFS Alaska Region Web site 
before the beginning of each commercial halibut fishing season.
    (2) Conversion calculation. The net pounds of IFQ transferred to or 
from an IFQ permit holder in Commission regulatory area 2C or 3A will 
be equal to the number(s) of GAF transferred to or from the GAF account 
of a GAF permit holder in the corresponding area, multiplied by the 
estimated average net weight determined as follows. For the first 
calendar year after the effective date of this rule, the average net 
weight will be estimated for all halibut harvested by charter vessel 
anglers during the most recent year without a size limit in effect. 
After the first calendar year after the effective date of this rule, 
the average net weight will be estimated from the average length of GAF 
retained in that area during the previous year as reported to RAM via 
the GAF electronic reporting system. If no GAF were harvested in a 
year, the conversion factor would be calculated using the same method 
as for the first calendar year after the effective date of this rule. 
NMFS will round up to the nearest whole number (no decimals) when 
transferring IFQ to GAF and when transferring GAF to IFQ. Expressed 
algebraically, the conversion formula is:

IFQ net pounds = (number of GAF x average net weight)

    (3) The total number of net pounds converted from unharvested GAF 
and transferred to the IFQ permit holder's account from which it 
derived cannot exceed the total number of net pounds NMFS transferred 
from the IFQ permit holder's account to the GAF permit holder's account 
for that area in the current year.
    (iii) Guided Angler Fish (GAF) permit--(A) General. (1) A GAF 
permit authorizes a charter vessel angler to catch and retain GAF in 
the specified Commission regulatory area, subject to the limits in 
paragraphs (c)(5)(iv)(A) through (K) of this section, during a charter 
vessel fishing trip authorized by the charter halibut permit, community 
charter halibut permit, or military charter halibut permit that 
designated on the GAF permit.
    (2) A GAF permit authorizes a charter vessel angler to catch and 
retain GAF in the specified Commission regulatory area from the time of 
permit issuance until any of the following occurs:
    (i) The amount of GAF in the GAF permit holder's account is zero;
    (ii) The permit expires at 11:59 p.m. (Alaska local time) on the 
day prior to 15 days prior to the end of the commercial halibut fishing 
season for that year;
    (iii) NMFS replaces the GAF permit with a modified GAF permit 
following NMFS approval of an Application for Transfer Between IFQ and 
GAF; or
    (iv) The GAF permit is revoked or suspended under 15 CFR part 904.
    (3) A GAF permit is issued for use in a Commission regulatory area 
(2C or 3A) to the person who holds a valid charter halibut permit, 
community charter halibut permit, or military charter halibut permit in 
the corresponding Commission regulatory area. Regulations governing 
issuance, transfer, and use of charter halibut permits are located in 
Sec.  300.67.
    (4) A GAF permit is assigned to only one charter halibut permit, 
community charter halibut permit, or military charter halibut permit 
held by the GAF permit holder in the corresponding Commission 
regulatory area (2C or 3A).

[[Page 39149]]

    (5) A legible copy of a GAF permit and the assigned charter halibut 
permit, community charter halibut permit, or military charter halibut 
permit appropriate for the Commission regulatory area (2C or 3A) must 
be carried on board the vessel used to harvest GAF at all times that 
such fish are retained on board and must be presented for inspection on 
request of any authorized officer.
    (6) No person may alter, erase, mutilate, or forge a GAF permit or 
document issued under this section (Sec.  300.65(c)(5)(iii)). Any such 
permit or document that has been intentionally altered, erased, 
mutilated, or forged is invalid.
    (7) GAF permit holders must retain GAF permit(s) for two years 
after the end of the fishing year for which the GAF permit(s) was 
issued and make the GAF permit available for inspection upon the 
request of an authorized officer (as defined in Commission 
regulations).
    (B) Issuance. The Regional Administrator will issue a GAF permit 
upon approval of an Application to Transfer Between IFQ and GAF.
    (C) Transfer. GAF authorized by a GAF permit under this section 
(Sec.  300.65(c)(5)(iii)) are not transferable to another GAF permit, 
except as provided under paragraph (c)(5)(ii) of this section.
    (iv) GAF use restrictions. (A) A charter vessel angler may harvest 
GAF only on board a vessel on which the operator has on board a valid 
GAF permit and the valid charter halibut permit, community charter 
halibut permit, or military charter halibut permit assigned to the GAF 
permit for the area of harvest.
    (B) The total number of GAF on board a vessel cannot exceed the 
number of unharvested GAF in the GAF permit holder's GAF account at the 
time of harvest.
    (C) The total number of halibut retained by a charter vessel angler 
harvesting GAF cannot exceed the sport fishing daily bag limit in 
effect for unguided sport anglers at the time of harvest adopted by the 
Commission as annual management measures and published in the Federal 
Register as required in Sec.  300.62.
    (D) Retained GAF are not subject to any length limit implemented by 
the Commission's annual management measures and published in the 
Federal Register as required in Sec.  300.62, if applicable.
    (E) Each charter vessel angler retaining GAF must comply with the 
halibut possession requirements adopted by the Commission as annual 
management measures and published in the Federal Register as required 
in Sec.  300.62.
    (F) The charter vessel guide must ensure that each charter vessel 
angler complies with (c)(5)(iv)(A) through (E) of this section.
    (G) The charter vessel guide must immediately remove the tips of 
the upper and lower lobes of the caudal (tail) fin to mark all halibut 
caught and retained as GAF.
    (H) Except as provided in paragraph (c)(5)(iv)(I) of this section, 
during the halibut sport fishing season adopted by the Commission as 
annual management measures and published in the Federal Register as 
required in Sec.  300.62, the following GAF use and IFQ transfer limits 
shall apply:
    (1) no more than 400 GAF may be assigned to a GAF permit that is 
assigned to a charter halibut permit or community charter halibut 
permit endorsed for six (6) or fewer charter vessel anglers in a year,
    (2) no more than 600 GAF may be assigned to a GAF permit that is 
assigned to a charter halibut permit endorsed for more than six (6) 
charter vessel anglers in a year; and
    (3) In Commission regulatory area 2C, a maximum of 1,500 pounds or 
ten (10) percent, whichever is greater, of the start year fishable IFQ 
pounds for an IFQ permit, may be transferred from IFQ to GAF. In 
Commission regulatory area 3A, a maximum of 1,500 pounds or fifteen 
(15) percent, whichever is greater, of the start year fishable IFQ 
pounds for an IFQ permit, may be transferred from IFQ to GAF. Start 
year fishable pounds is the sum of IFQ equivalent pounds, as defined in 
Sec.  679.2 of this title, for an area, derived from QS held, plus or 
minus adjustments made to that amount pursuant to Sec.  679.40(d) and 
(e) of this title.
    (I) The halibut QS equivalent of net pounds of halibut IFQ that is 
transferred to GAF is included in the computation of halibut QS use 
caps in Sec.  679.42(f)(1)(i) and (ii) of this title.
    (J) A CHP holder receiving GAF from a CQE is subject to Sec.  
679.42(f)(6) of this title. For a CHP holder who receives GAF from a 
CQE, the net poundage equivalent of all halibut IFQ received as GAF is 
included in the computation of that person's IFQ halibut holdings in 
Sec.  679.42(f)(6) of this title.
    (K) Applicability of GAF use restrictions to CQEs. The GAF use 
restrictions in paragraph (c)(5)(iv)(H) of this section do not apply 
if:
    (1) A CQE transfers IFQ as GAF to a GAF permit that is assigned to 
one or more charter halibut permits held by that CQE or community 
charter halibut permits held by that CQE;
    (2) A CQE transfers IFQ as GAF to another CQE holding one or more 
charter halibut permits or community charter halibut permits; or
    (3) A CQE transfers IFQ as GAF to a GAF permit that is assigned to 
a charter halibut permit held by an eligible community resident (as 
defined at Sec.  679.2) of that CQE community, as defined for purposes 
of the Catch Sharing Plan for Commission regulatory areas 2C and 3A in 
Sec.  679.2 of this title, holding one or more charter halibut permits.
    (d) Charter vessels in Commission regulatory area 2C and 3A--(1) 
General requirements--(i) Logbook submission. For a charter vessel 
fishing trip during which halibut were caught and retained on or after 
the first Monday in April and on or before December 31, Alaska 
Department of Fish and Game (ADF&G) Saltwater Sport Fishing Charter 
Trip Logbook data sheets must be submitted to the ADF&G and postmarked 
or received no later than 14 calendar days after the Monday of the 
fishing week (as defined in 50 CFR 300.61) in which the halibut were 
caught and retained. Logbook sheets for a charter vessel fishing trip 
during which halibut were caught and retained on January 1 through the 
first Sunday in April, must be submitted to the ADF&G and postmarked or 
received no later than the second Monday in April.
    (ii) The charter vessel guide is responsible for complying with the 
reporting requirements of this paragraph (d). The person to whom the 
Alaska Department of Fish and Game issues the Saltwater Sport Fishing 
Charter Trip Logbook is responsible for ensuring that the charter 
vessel guide complies with the reporting requirements of this paragraph 
(d).
    (2) Retention and inspection of logbook. The person to whom the 
Alaska Department of Fish and Game issues the Saltwater Sport Fishing 
Charter Trip Logbook and who retains halibut is required to:
    (i) Retain the logbook for 2 years after the end of the fishing 
year for which the logbook was issued, and
    (ii) Make the logbook available for inspection upon the request of 
an authorized officer (as defined in Commission regulations).
    (3) Charter vessel guide and crew restriction in Commission 
regulatory areas 2C and 3A. A charter vessel guide, charter vessel 
operator, or crew member may not catch and retain halibut during a 
charter vessel fishing trip in Commission regulatory area 2C or 3A

[[Page 39150]]

while on a vessel with charter vessel anglers on board.
    (4) Recordkeeping and reporting requirements in Commission 
regulatory area 2C and 3A--(i) General requirements. Each charter 
vessel angler and charter vessel guide on board a vessel in Commission 
regulatory area 2C or 3A must comply with the following recordkeeping 
and reporting requirements, except as specified in paragraph 
(d)(4)(ii)(C) of this section, by the end of the calendar day or by the 
end of the charter vessel fishing trip, whichever comes first, unless 
otherwise specified:
    (ii) Logbook reporting requirements--(A) Charter vessel angler 
signature requirement. Each charter vessel angler who retains halibut 
caught in Commission regulatory area 2C or 3A must acknowledge that his 
or her name, license number (if required), and number of halibut 
retained (kept) are recorded correctly by signing the Alaska Department 
of Fish and Game Saltwater Charter Logbook data sheet on the line that 
corresponds to the angler's information.
    (B) Charter vessel guide requirements. If halibut were caught and 
retained in Commission regulatory area 2C or 3A, the charter vessel 
guide must record the following information (see paragraphs 
(d)(4)(ii)(B)(1) through (10) of this section) in the Alaska Department 
of Fish and Game Saltwater Charter Logbook:
    (1) Guide license number. The Alaska Department of Fish and Game 
sport fishing guide license number held by the charter vessel guide who 
certified the logbook data sheet.
    (2) Date. Month and day for each charter vessel fishing trip taken. 
A separate logbook data sheet is required for each charter vessel 
fishing trip if two or more trips were taken on the same day. A 
separate logbook data sheet is required for each calendar day that 
halibut are caught and retained during a multi-day trip. A separate 
logbook sheet is also required if more than one charter halibut permit 
is used on a trip.
    (3) Charter halibut permit (CHP) number. The NMFS CHP number(s) 
authorizing charter vessel anglers on board the vessel to catch and 
retain halibut.
    (4) Guided Angler Fish (GAF) permit number. The NMFS GAF permit 
number(s) authorizing charter vessel anglers on board the vessel to 
harvest GAF.
    (5) Statistical area. The primary Alaska Department of Fish and 
Game six-digit statistical area code in which halibut were caught and 
retained.
    (6) Angler sport fishing license number and printed name. Before a 
charter vessel fishing trip begins, record for the first and last name 
of each paying or non-paying charter vessel angler on board that will 
fish for halibut. For each angler required to be licensed, record the 
Alaska Sport Fishing License number for the current year, resident 
permanent license number, or disabled veteran license number. For youth 
anglers not required to be licensed, record the word ``youth'' in place 
of the license number.
    (7) Number of halibut retained. For each charter vessel angler, 
record the total number of non-GAF halibut caught and kept.
    (8) Number of GAF retained. For each charter vessel angler, record 
the total number of GAF kept.
    (9) Guide signature. The charter vessel guide acknowledges that the 
recorded information is correct by signing the logbook data sheet.
    (10) Angler signature. The charter vessel guide is responsible for 
ensuring that charter vessel anglers that retain halibut comply with 
the signature requirements at paragraph (d)(4)(ii)(A) of this section.
    (iii) GAF reporting requirements--(A) General. (1) Upon retention 
of a GAF halibut, the charter vessel guide must immediately record on 
the GAF permit the date that the fish was caught and retained and the 
total length of that fish as described in paragraph (d)(4)(iii)(D)(6) 
of this section.
    (2) In addition to the recordkeeping and reporting requirements in 
paragraphs (d)(4)(i) and (ii) of this section, a GAF permit holder must 
use the NMFS-approved electronic reporting system on the Alaska Region 
Web site at http://alaskafisheries.noaa.gov/ to submit a GAF landings 
report.
    (3) A GAF permit holder must submit a GAF landings report by 11:59 
p.m. (Alaska local time) on the last calendar day of a fishing trip for 
each day on which a charter vessel angler retained GAF authorized by 
the GAF permit held by that permit holder.
    (4) If a GAF permit holder is unable to submit a GAF landings 
report due to hardware, software, or Internet failure for a period 
longer than the required reporting time, or a correction must be made 
to information already submitted, the GAF permit holder must contact 
NOAA Office of Law Enforcement, Juneau, AK, at 800-304-4846 (Select 
Option 1).
    (B) Electronic Reporting of GAF. A GAF permit holder must obtain, 
at his or her own expense, the technology to submit GAF landing reports 
to the NMFS-approved reporting system for GAF landings.
    (C) NMFS-Approved Electronic Reporting System. The GAF permit 
holder agrees to the following terms (see paragraphs (d)(4)(iii)(C)(1) 
through (3) of this section):
    (1) To use any NMFS online service or reporting system only for 
authorized purposes;
    (2) To safeguard the NMFS Person Identification Number and password 
to prevent their use by unauthorized persons; and
    (3) To accept the responsibility of and acknowledge compliance with 
Sec.  300.4(a) and (b), Sec.  300.65(d), and Sec.  300.66(p) and (q).
    (D) Information entered for each GAF caught and retained. The GAF 
permit holder must enter the following information for each GAF 
retained under the authorization of the permit holder's GAF permit into 
the NMFS-approved electronic reporting system (see paragraphs 
(d)(4)(iii)(D)(1) through (8) of this section) by 11:59 p.m. (Alaska 
local time) on the last day of a charter fishing trip in which a 
charter vessel angler retained GAF:
    (1) Logbook number from the Alaska Department of Fish and Game 
Saltwater Sport Fishing Charter Trip Logbook.
    (2) Vessel identification number for vessel on which GAF were 
caught and retained:
    (i) State of Alaska issued boat registration (AK number), or
    (ii) U.S. Coast Guard documentation number.
    (3) GAF permit number under which GAF were caught and retained.
    (4) Alaska Department of Fish and Game sport fishing guide license 
number held by the charter vessel guide who certified the logbook data 
sheet.
    (5) Number of GAF caught and retained.
    (6) Lengths of GAF caught and retained. Halibut lengths are 
measured in inches in a straight line from the anterior-most tip of the 
lower jaw with the mouth closed to the extreme end of the middle of the 
tail.
    (7) Community charter halibut permit only: Community or Port where 
the charter vessel fishing trip began (i.e., where charter vessel 
anglers boarded the vessel).
    (8) Community charter halibut permit only: Community or Port where 
the charter vessel fishing trip ended (i.e., where charter vessel 
anglers or fish were offloaded from the vessel).
    (E) Properly reported landing. (1) All GAF harvested on board a 
vessel must be debited from the GAF permit holder's account under which 
the GAF were retained.

[[Page 39151]]

    (2) A GAF landing confirmation number issued by the NMFS-approved 
electronic reporting system and recorded on the GAF permit used to 
record the dates and lengths of retained GAF, as required in paragraph 
(d)(4)(iii)(A)(1) of this section, constitutes confirmation that the 
GAF permit holder's GAF landing is properly reported and the GAF permit 
holder's account is properly debited.
* * * * *
0
4. In Sec.  300.66:
0
a. Redesignate paragraphs (i) through (v) as paragraphs (j) through 
(w), respectively;
0
b. Revise paragraph (h) introductory text;
0
c. Add new paragraph (i); and
0
d. Revise newly redesignated paragraphs (n) and (s) through (w).
    The revisions and addition read as follows:


Sec.  300.66  Prohibitions.

* * * * *
    (h) Conduct subsistence fishing for halibut and commercial fishing 
for halibut from the same vessel on the same calendar day, or possess 
on board a vessel, halibut harvested while subsistence fishing with 
halibut harvested while commercial fishing or sport fishing, as defined 
in Sec.  300.61, except that persons authorized to conduct subsistence 
fishing under Sec.  300.65(g), and who land their total annual harvest 
of halibut:
* * * * *
    (i) Conduct commercial and sport fishing for halibut, as defined in 
Sec.  300.61, from the same vessel on the same calendar day.
* * * * *
    (n) Exceed any of the harvest or gear limitations specified at 
Sec.  300.65(c)(5) or adopted by the Commission as annual management 
measures and published in the Federal Register as required in Sec.  
300.62.
* * * * *
    (s) Be an operator of a vessel in Commission regulatory area 2C or 
3A without an original valid charter halibut permit for the regulatory 
area in which the vessel is operating when one or more charter vessel 
anglers are on board that are catching and retaining halibut.
    (t) Be an operator of a vessel in Commission regulatory area 2C or 
3A with more charter vessel anglers on board catching and retaining 
halibut than the total angler endorsement number specified on the 
charter halibut permit or permits on board the vessel.
    (u) Be an operator of a vessel in Commission regulatory area 2C or 
3A with more charter vessel anglers on board catching and retaining 
halibut than the angler endorsement number specified on the community 
charter halibut permit or permits on board the vessel.
    (v) Be an operator of a vessel on which one or more charter vessel 
anglers on board are catching and retaining halibut in Commission 
regulatory areas 2C and 3A during one charter vessel fishing trip.
    (w) Be an operator of a vessel in Commission regulatory area 2C or 
3A with one or more charter vessel anglers on board that are catching 
and retaining halibut without having on board the vessel a State of 
Alaska Department of Fish and Game Saltwater Charter Logbook that 
specifies the following:
    (1) The person named on the charter halibut permit or permits being 
used on board the vessel;
    (2) The charter halibut permit or permits number(s) being used on 
board the vessel; and
    (3) The name and State issued boat registration (AK number) or U.S. 
Coast Guard documentation number of the vessel.
0
5. In Sec.  300.67:
0
a. Redesignate paragraphs (i)(2)(v) and (vi) as paragraphs (i)(2)(vi) 
and (vii), respectively; and
0
b. Add new paragraph (i)(2)(v) to read as follows:


Sec.  300.67  Charter halibut limited access program.

* * * * *
    (i) * * *
    (2) * * *
    (v) The GAF permit is not assigned to a charter halibut permit for 
which the GAF account contains unharvested GAF, pursuant to Sec.  
300.65 (c)(5)(iii)(A)(3) and (4);
* * * * *
0
6. Add Tables 1 through 4 to subpart E of part 300 to read as follows:

     Table 1--to Subpart E of Part 300--Determination of Commission
Regulatory Area 2C Annual Commercial Allocation From the Annual Combined
                         Catch Limit for Halibut
------------------------------------------------------------------------
  If the Area 2C annual combined
  catch limit (CCL) in net pounds    then the Area 2C annual commercial
                is:                            allocation is:
------------------------------------------------------------------------
<5,000,000 lb.....................  81.7% of the Area 2C CCL.
>=5,000,000 and <=5,755,000 lb....  the Area 2C CCL minus a fixed
                                     915,000 lb allocation to the
                                     charter halibut fishery.
>5,755,000 lb.....................  84.1% of the Area 2C CCL.
------------------------------------------------------------------------


     Table 2--to Subpart E of Part 300--Determination of Commission
Regulatory Area 3A Annual Commercial Allocation From the Annual Combined
                         Catch Limit for Halibut
------------------------------------------------------------------------
  If the Area 3A annual combined
  catch limit (CCL) in net pounds    then the Area 3A annual commercial
                is:                            allocation is:
------------------------------------------------------------------------
<10,000,000 lb....................  81.1% of the Area 3A CCL.
>=10,000,000 and <=10,800,000 lb..  the Area 3A CCL minus a fixed
                                     1,890,000 lb allocation to the
                                     charter halibut fishery.
>10,800,000 and <=20,000,000 lb...  82.5% of the Area 3A CCL.
>20,000,000 and <=25,000,000 lb...  the Area 3A CCL minus a fixed
                                     3,500,000 lb allocation to the
                                     charter halibut fishery.
>25,000,000 lb....................  86.0% of the Area 3A CCL.
------------------------------------------------------------------------


     Table 3--to Subpart E of Part 300--Determination of Commission
  Regulatory Area 2C Annual Charter Halibut Allocation From the Annual
                          Combined Catch Limit
------------------------------------------------------------------------
  If the Area 2C annual combined catch   then the Area 2C annual charter
  limit for halibut in net pounds is:             allocation is:
------------------------------------------------------------------------
<5,000,000 lb..........................  18.3% of the Area 2C CCL.

[[Page 39152]]

 
>=5,000,000 and <=5,755,000 lb.........  915,000 lb.
>5,755,000 lb..........................  15.9% of the Area 2C CCL.
------------------------------------------------------------------------


     Table 4--to Subpart E of Part 300--Determination of Commission
  Regulatory Area 3A Annual Charter Halibut Allocation From the Annual
                          Combined Catch Limit
------------------------------------------------------------------------
  If the Area 3A annual combined
 catch limit (CCL) for halibut in      then the Area 3A annual charter
          net pounds is:                       allocation is:
------------------------------------------------------------------------
<10,000,000 lb....................  18.9% of the Area 3A annual combined
                                     catch limit.
>=10,000,000 and <=10,800,000 lb..  1,890,000 lb.
>10,800,000 and <=20,000,000 lb...  17.5% of the Area 3A annual combined
                                     catch limit.
>20,000,000 and <=25,000,000 lb...  3,500,000 lb.
>25,000,000 lb....................  14.0% of the Area 3A annual combined
                                     catch limit.
------------------------------------------------------------------------

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

0
7. The authority citation for part 679 continues to read as follows:

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

0
8. In Sec.  679.2, revise the definitions of ``Eligible community 
resident'', ``IFQ equivalent pound(s)'', ``IFQ fee liability'', and 
``IFQ standard ex-vessel value'' to read as follows:


Sec.  679.2  Definitions.

* * * * *
    Eligible community resident means:
    (1) For purposes of the IFQ Program, any individual who:
    (i) Is a citizen of the United States;
    (ii) Has maintained a domicile in a rural community listed in Table 
21 to this part for the 12 consecutive months immediately preceding the 
time when the assertion of residence is made, and who is not claiming 
residency in another community, state, territory, or country, except 
that residents of the Village of Seldovia shall be considered to be 
eligible community residents of the City of Seldovia for the purposes 
of eligibility to lease IFQ from a CQE; and
    (iii) Is an IFQ crew member.
    (2) For purposes of the Area 2C and Area 3A catch sharing plan 
(CSP) in Sec.  300.65(c) of this title, means any individual or non-
individual entity who:
    (i) Holds a charter halibut permit as defined in Sec.  300.61 of 
this title;
    (ii) Has been approved by the Regional Administrator to receive 
GAF, as defined in Sec.  300.61 of this title, from a CQE in a transfer 
between IFQ and GAF pursuant to Sec.  300.65(c)(5)(ii) of this title; 
and
    (iii) Begins or ends every charter vessel fishing trip, as defined 
in Sec.  300.61 of this title, authorized by the charter halibut permit 
issued to that person, and on which halibut are retained, at a 
location(s) within the boundaries of the community represented by the 
CQE from which the GAF were received. The geographic boundaries of the 
eligible community will be those defined by the United States Census 
Bureau.
* * * * *
    IFQ equivalent pound(s) means the weight amount, recorded in pounds 
and calculated as round weight for sablefish and headed and gutted 
weight for halibut for an IFQ landing or for estimation of the fee 
liability of halibut landed as guided angler fish (GAF), as defined in 
Sec.  300.61 of this title. Landed GAF are converted to IFQ equivalent 
pounds as specified in Sec.  300.65(c) of this title.
    IFQ fee liability means that amount of money for IFQ cost recovery, 
in U.S. dollars, owed to NMFS by an IFQ permit holder as determined by 
multiplying the appropriate standard ex-vessel value or, for non-GAF 
landings, the actual ex-vessel value of his or her IFQ halibut or IFQ 
sablefish landing(s), by the appropriate IFQ fee percentage and the 
appropriate standard ex-vessel value of landed GAF derived from his or 
her IFQ by the appropriate IFQ fee percentage.
* * * * *
    IFQ standard ex-vessel value means the total U.S. dollar amount of 
IFQ halibut or IFQ sablefish landings as calculated by multiplying the 
number of landed IFQ equivalent pounds plus landed GAF in IFQ 
equivalent pounds by the appropriate IFQ standard price determined by 
the Regional Administrator.
* * * * *
0
9. In Sec.  679.4, add paragraph (a)(1)(xv) and revise paragraph (a)(2) 
to read as follows:


Sec.  679.4  Permits.

    (a) * * *
    (1) * * *

----------------------------------------------------------------------------------------------------------------
                                             Permit is in effect from
        If program permit type is:          issue date through the end       For more information, see * * *
                                                        of:
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
(xv) Guided sport halibut fishery
 permits:
    (A) Charter halibut permit...........  Indefinite..................  Sec.   300.67 of this title.
    (B) Community charter halibut permit.  Indefinite..................  Sec.   300.67 of this title.
    (C) Military charter halibut permit..  Indefinite..................  Sec.   300.67 of this title.
    (D) Guided Angler Fish (GAF) permit..  Until expiration date shown   Sec.   300.65 of this title.
                                            on permit.
----------------------------------------------------------------------------------------------------------------


[[Page 39153]]

    (2) Permit and logbook required by participant and fishery. For the 
various types of permits issued, refer to Sec.  679.5 for recordkeeping 
and reporting requirements. For subsistence and GAF permits, refer to 
Sec.  300.65 of this title for recordkeeping and reporting 
requirements.
* * * * *
0
10. In Sec.  679.5, revise paragraphs (l)(7)(i) and (ii) to read as 
follows:


Sec.  679.5  Recordkeeping and reporting (R&R).

* * * * *
    (l) * * *
    (7) * * *
    (i) IFQ Registered Buyer Ex-vessel Value and Volume Report--(A) 
Requirement. An IFQ Registered Buyer that also operates as a shoreside 
processor and receives and purchases IFQ landings of sablefish or 
halibut must submit annually to NMFS a complete IFQ Registered Buyer 
Ex-vessel Value and Volume Report as described in this paragraph (l) 
and as provided by NMFS for each reporting period, as described at 
paragraph (1)(7)(i)(E), in which the Registered Buyer receives IFQ 
fish.
    (B) Due date. A complete IFQ Registered Buyer Ex-vessel Value and 
Volume Report must be postmarked or received by the Regional 
Administrator by October 15 following the reporting period in which the 
IFQ Registered Buyer receives the IFQ fish.
    (C) Completed application. NMFS will process an IFQ Registered 
Buyer Ex-vessel Value and Volume Report provided that a paper or 
electronic report is completed by the Registered Buyer, with all 
applicable fields accurately filled in, and all required additional 
documentation is attached.
    (1) Certification, Electronic submittal. NMFS ID and password of 
the IFQ Registered Buyer; or
    (2) Certification, Non-electronic submittal. Printed name and 
signature of the individual submitting the IFQ Registered Buyer Ex-
vessel Value and Volume Report on behalf of the IFQ Registered Buyer, 
and date of signature.
    (D) Submission address. The IFQ Registered Buyer must complete an 
IFQ Registered Buyer Ex-vessel Value and Volume Report and submit by 
mail to: Administrator, Alaska Region, NMFS, Attn: RAM Program, P.O. 
Box 21668, Juneau, AK 99802-1668; by fax to: (907) 586-7354; or 
electronically at http://alaskafisheries.noaa.gov. Report forms are 
available on the NMFS Alaska Region Web site at http://alaskafisheries.noaa.gov, or by contacting NMFS at (800) 304-4846, 
Option 2.
    (E) Reporting period. The reporting period of the IFQ Registered 
Buyer Ex-vessel Value and Volume Report shall extend from October 1 
through September 30 of the following year, inclusive.
    (ii) IFQ Permit Holder Fee Submission Form--(A) Applicability. An 
IFQ permit holder who holds an IFQ permit against which a landing was 
made must submit to NMFS a complete IFQ Permit Holder Fee Submission 
Form provided by NMFS.
    (B) Due date and submittal. A complete IFQ Permit Holder Fee 
Submission Form must be postmarked or received by the Regional 
Administrator not later than January 31 following the calendar year in 
which any IFQ landing was made.
    (C) Completed application. NMFS will process an IFQ Permit Holder 
Fee Submission Form provided that a paper or electronic form is 
completed by the permit holder, with all applicable fields accurately 
filled in, and all required additional documentation is attached.
    (D) IFQ landing summary and estimated fee liability. NMFS will 
provide to an IFQ permit holder an IFQ Landing and Estimated Fee 
Liability page as required by Sec.  679.45(a)(2). The IFQ permit holder 
must either accept the accuracy of the NMFS estimated fee liability 
associated with his or her IFQ landings for each IFQ permit, or 
calculate a revised IFQ fee liability in accordance with paragraph 
(l)(7)(ii)(E) of this section. The IFQ permit holder may calculate a 
revised fee liability for all or part of his or her IFQ landings.
    (E) Revised fee liability calculation. To calculate a revised fee 
liability, an IFQ permit holder must multiply the IFQ percentage in 
effect by either the IFQ actual ex-vessel value or the IFQ standard ex-
vessel of the IFQ landing. If parts of the landing have different 
values, the permit holder must apply the appropriate values to the 
different parts of the landings.
    (F) Documentation. If NMFS requests in writing that a permit holder 
submit documentation establishing the factual basis for a revised IFQ 
fee liability, the permit holder must submit adequate documentation by 
the 30th day after the date of such request. Examples of such 
documentation regarding initial sales transactions of IFQ landings 
include valid fish tickets, sales receipts, or check stubs that clearly 
identify the IFQ landing amount, species, date, time, and ex-vessel 
value or price.
    (G) Reporting period. The reporting period of the IFQ Permit Holder 
Fee Submission Form shall extend from January 1 to December 31 of the 
year prior to the January 31 due date.
* * * * *
0
11. In Sec.  679.40, revise the introductory text and paragraph (c)(1) 
to read as follows:


Sec.  679.40  Sablefish and halibut QS.

    The Regional Administrator shall annually divide the annual 
commercial fishing catch limit of halibut as defined in Sec.  300.61 of 
this title and published in the Federal Register pursuant to Sec.  
300.62 of this title, among qualified halibut quota share holders. The 
Regional Administrator shall annually divide the TAC of sablefish that 
is apportioned to the fixed gear fishery pursuant to Sec.  679.20, 
minus the CDQ reserve, among qualified sablefish quota share holders.
* * * * *
    (c) Calculation of annual IFQ allocation--(1) General. (i) The 
annual allocation of halibut IFQ to any person (person p) in any IFQ 
regulatory area (area a) will be equal to the product of the annual 
commercial catch limit as defined in Sec.  300.61 of this title, after 
adjustment for purposes of the Western Alaska CDQ Program, and that 
person's QS divided by the QS pool for that area. Overage adjustments 
will be subtracted from a person's IFQ pursuant to paragraph (d) of 
this section; underage adjustments will be added to a person's IFQ 
pursuant to paragraph (e) of this section. Expressed algebraically, the 
annual halibut IFQ allocation formula is as follows:

IFQpa = [(fixed gear TACa - CDQ 
reservea) x (QSpa/QS poola)] - overage 
adjustment of IFQpa + underage adjustment of 
IFQpa

    (ii) The annual allocation of sablefish IFQ to any person (person 
p) in any IFQ regulatory area (area a) will be equal to the product of 
the TAC of sablefish by fixed gear for that area (after adjustment for 
purposes of the Western Alaska CDQ Program) and that person's QS 
divided by the QS pool for that area. Overage adjustments will be 
subtracted from a person's IFQ pursuant to paragraph (d) of this 
section; underage adjustments will be added to a person's IFQ pursuant 
to paragraph (e) of this section. Expressed algebraically, the annual 
IFQ allocation formula is as follows:

IFQpa = [(fixed gear TACa - CDQ 
reservea) x (QSpa/QS poola)] - overage 
adjustment of IFQpa + underage adjustment of 
IFQpa
* * * * *
0
12. In Sec.  679.41, add paragraph (a)(3) to read as follows:

[[Page 39154]]

Sec.  679.41  Transfer of quota shares and IFQ.

    (a) * * *
    (3) Any transaction involving a transfer between IFQ and guided 
angler fish (GAF), as defined in Sec.  300.61 of this title, is 
governed by regulations in Sec.  300.65(c) of this title.
* * * * *
0
13. In Sec.  679.42 revise paragraphs (f)(1)(i) and (ii) and (f)(6) to 
read as follows:


Sec.  679.42  Limitations on use of QS and IFQ.

* * * * *
    (f) * * *
    (1) * * *
    (i) IFQ regulatory Area 2C. 599,799 units of halibut QS, including 
halibut QS issued as IFQ and transferred to GAF, as defined in Sec.  
300.61 of this title.
    (ii) IFQ regulatory area 2C, 3A, and 3B. 1,502,823 units of halibut 
QS, including halibut QS issued as IFQ and transferred to GAF, as 
defined in Sec.  300.61 of this title.
* * * * *
    (6) No individual that receives IFQ derived from halibut QS held by 
a CQE, including GAF as defined in Sec.  300.61 of this title, may 
hold, individually or collectively, more than 50,000 pounds (22.7 mt) 
of IFQ halibut, including IFQ halibut received as GAF, derived from any 
halibut QS source.
* * * * *
0
14. In Sec.  679.45:
0
a. Revise paragraphs (a)(1) through (3), (a)(4)(i) through (iii), and 
(b);
0
b. Remove and reserve paragraph (c); and
0
c. Revise the paragraph (d)(2) heading and paragraphs (d)(2)(i)(A) 
through (C), (d)(2)(ii), (d)(3)(i), (d)(4), (e), and (f).
    The revisions read as follows:


Sec.  679.45  IFQ cost recovery program.

    (a) * * *
    (1) Responsibility. An IFQ permit holder is responsible for cost 
recovery fees for landings of his or her IFQ halibut and sablefish, 
including any halibut landed as guided angler fish (GAF), as defined in 
Sec.  300.61 of this title, derived from his or her IFQ accounts. An 
IFQ permit holder must comply with the requirements of this section.
    (2) IFQ Fee Liability Determination--(i) General. IFQ fee liability 
means a cost recovery liability based on the value of all landed IFQ 
and GAF derived from the permit holder's IFQ permit(s).
    (A) Each year, the Regional Administrator will issue each IFQ 
permit holder a summary of his or her IFQ equivalent pounds landed as 
IFQ and GAF as part of the IFQ Landing and Estimated Fee Liability page 
described at Sec.  679.5(l)(7)(ii)(D).
    (B) The summary will include information on IFQ and GAF landings 
and an estimated IFQ fee liability using the IFQ standard ex-vessel 
value for IFQ and GAF landings. For fee purposes:
    (1) Landings of GAF in IFQ regulatory area 2C or 3A are converted 
to IFQ equivalent pounds and assessed at the IFQ regulatory area 2C or 
3A IFQ standard ex-vessel value.
    (2) GAF that is returned to the IFQ permit holder's account 
pursuant to Sec.  300.65(c) of this title, and subsequently landed as 
IFQ during the IFQ fishing year, is included in the IFQ fee liability 
and subject to fee assessment as IFQ equivalent pounds.
    (C) The IFQ permit holder must either accept NMFS' estimate of the 
IFQ fee liability or revise NMFS' estimate of the IFQ fee liability 
using the IFQ Permit Holder Fee Submission Form described at Sec.  
679.5(l)(7)(ii), except that the standard ex-vessel value used to 
determine the fee liability for GAF is not subject to challenge. If the 
IFQ permit holder revises NMFS' estimate of his or her IFQ fee 
liability, NMFS may request in writing that the permit holder submit 
documentation establishing the factual basis for the revised 
calculation. If the IFQ permit holder fails to provide adequate 
documentation on or by the 30th day after the date of such request, 
NMFS will determine the IFQ permit holder's IFQ fee liability based on 
standard ex-vessel values.
    (ii) Value assigned to GAF. The IFQ fee liability is computed from 
all net pounds allocated to the IFQ permit holder that are landed, 
including IFQ landed as GAF.
    (A) NMFS will determine the IFQ equivalent pounds of GAF landed in 
IFQ regulatory area 2C or 3A that are derived from the IFQ permit 
holder's account.
    (B) The IFQ equivalent pounds of GAF landed in IFQ regulatory area 
2C or 3A are multiplied by the standard ex-vessel value computed for 
that area to determine the value of IFQ landed as GAF.
    (iii) The value of IFQ landed as GAF is added to the value of the 
IFQ permit holder's landed IFQ, and the sum is multiplied by the annual 
IFQ fee percentage to estimate the IFQ permit holder's IFQ fee 
liability.
    (3) Fee Collection. An IFQ permit holder with IFQ and/or GAF 
landings is responsible for collecting his or her own fee during the 
calendar year in which the IFQ fish and/or GAF are landed.
    (4) * * *
    (i) Payment due date. An IFQ permit holder must submit his or her 
IFQ fee liability payment(s) to NMFS at the address provided at 
paragraph (a)(4)(iii) of this section not later than January 31 of the 
year following the calendar year in which the IFQ and/or GAF landings 
were made.
    (ii) Payment recipient. Make payment payable to IFQ Fee 
Coordinator, OMI.
    (iii) Payment address. Mail payment and related documents to: 
Administrator, Alaska Region, NMFS, Attn: IFQ Fee Coordinator, Office 
of Operations, Management, and Information, P.O. Box 21668, Juneau, AK 
99802-1668; submit by fax to (907) 586-7354; or submit electronically 
through the NMFS Alaska Region Home Page at http://alaskafisheries.noaa.gov. If paying by credit card, ensure that all 
requested card information is provided.
* * * * *
    (b) IFQ ex-vessel value determination and use--(1) General. An IFQ 
permit holder must use either the IFQ actual ex-vessel value or the IFQ 
standard ex-vessel value when determining the IFQ fee liability based 
on ex-vessel value, except that landed GAF are assessed at the standard 
values derived by NMFS. An IFQ permit holder must base all IFQ fee 
liability calculations on the ex-vessel value that correlates to the 
landed IFQ in IFQ equivalent pounds.
    (2) IFQ actual ex-vessel value. An IFQ permit holder that uses 
actual ex-vessel value, as defined in Sec.  679.2, to determine IFQ fee 
liability for landed IFQ must document actual ex-vessel value for each 
IFQ permit. The actual ex-vessel value cannot be used to assign value 
to halibut landed as GAF.
    (3) IFQ standard ex-vessel value--(i) Use of standard price. An IFQ 
permit holder that uses standard ex-vessel value to determine the IFQ 
fee liability, as part of a revised IFQ fee liability submission, must 
use the corresponding standard price(s) as published in the Federal 
Register.
    (ii) All landed GAF must be valued using the standard ex-vessel 
value for the year and for the IFQ regulatory area of harvest--Area 2C 
or Area 3A.
    (iii) Duty to publish list. Each year the Regional Administrator 
will publish a list of IFQ standard prices in the Federal Register 
during the last quarter of the calendar year. The IFQ standard prices 
will be described in U.S. dollars per IFQ equivalent pound, for IFQ 
halibut and sablefish landings made during the current calendar year.
    (iv) Effective duration. The IFQ standard prices will remain in 
effect until revised by the Regional Administrator by notification in 
the Federal Register based upon new information of the type set forth 
in this

[[Page 39155]]

section. IFQ standard prices published in the Federal Register by NMFS 
shall apply to all landings made in the same calendar year as the IFQ 
standard price publication and shall replace any IFQ standard prices 
previously provided by NMFS that may have been in effect for that same 
calendar year.
    (v) Determination. NMFS will apply the standard price, aggregated 
IFQ regulatory area 2C or 3A, to GAF landings. NMFS will calculate the 
IFQ standard prices to reflect, as closely as possible by month and 
port or port-group, the variations in the actual ex-vessel values of 
IFQ halibut and IFQ sablefish landings based on information provided in 
the IFQ Registered Buyer Ex-Vessel Value and Volume Report as described 
in Sec.  679.5(l)(7)(i). The Regional Administrator will base IFQ 
standard prices on the following types of information:
    (A) Landed net pounds by IFQ species, port-group, and month;
    (B) Total ex-vessel value by IFQ species, port-group, and month; 
and
    (C) Price adjustments, including IFQ retro-payments.
* * * * *
    (d) * * *
    (2) Calculating the fee percentage. * * *
    (i) * * *
    (A) The IFQ and GAF landings to which the IFQ fee will apply;
    (B) The ex-vessel value of that landed IFQ and GAF; and
    (C) The costs directly related to the management and enforcement of 
the IFQ program, which include GAF costs.
    (ii) Methodology. NMFS must use the following equation to determine 
the fee percentage:

100 x (DPC/V)

Where:

``DPC'' is the direct program costs for the IFQ fishery for the 
previous fiscal year, and
``V'' is the ex-vessel value determined for IFQ landed as commercial 
catch or as GAF subject to the IFQ fee liability for the current year.

    (3) * * *
    (i) General. During or before the last quarter of each calendar 
year, NMFS shall publish the IFQ fee percentage in the Federal 
Register. NMFS shall base any IFQ fee liability calculations on the 
factors and methodology in paragraph (d)(2) of this section.
* * * * *
    (4) Applicable percentage. The IFQ permit holder must use the IFQ 
fee percentage in effect for the year in which the IFQ and GAF landings 
are made to calculate his or her fee liability for such landed IFQ and 
GAF. The IFQ permit holder must use the IFQ fee percentage in effect at 
the time an IFQ retro-payment is received by the IFQ permit holder to 
calculate his or her IFQ fee liability for the IFQ retro-payment.
    (e) Non-payment of fee. (1) If an IFQ permit holder does not submit 
a complete IFQ Permit Holder Fee Submission Form and corresponding 
payment by the due date described in Sec.  679.45(a)(4), the Regional 
Administrator will:
    (i) Send Initial Administrative Determination (IAD). Send an IAD to 
the IFQ permit holder stating that the IFQ permit holder's estimated 
fee liability, as calculated by the Regional Administrator and sent to 
the IFQ permit holder pursuant to Sec.  679.45(a)(2), is the amount of 
IFQ fee liability due from the IFQ permit holder. An IFQ permit holder 
who receives an IAD may appeal the IAD, as described in paragraph (h) 
of this section.
    (ii) Disapprove transfer. Disapprove any transfer of GAF, IFQ, or 
QS to or from the IFQ permit holder in accordance with Sec.  300.65(c) 
of this title and Sec.  679.41(c), until the IFQ fee liability is 
reconciled, except that NMFS may return unused GAF to the IFQ permit 
holder's account from which it was derived on or after the automatic 
GAF return date.
    (2) Upon final agency action determining that an IFQ permit holder 
has not paid his or her IFQ fee liability, as described in paragraph 
(f) of this section, any IFQ fishing permit held by the IFQ permit 
holder is not valid until all IFQ fee liabilities are paid.
    (3) If payment is not received on or before the 30th day after the 
final agency action, the matter will be referred to the appropriate 
authorities for purposes of collection.
    (f) Underpayment of IFQ fee. (1) When an IFQ permit holder has 
incurred a fee liability and made a timely payment to NMFS of an amount 
less than the NMFS estimated IFQ fee liability, the Regional 
Administrator will review the IFQ Permit Holder Fee Submission Form and 
related documentation submitted by the IFQ permit holder. If the 
Regional Administrator determines that the IFQ permit holder has not 
paid a sufficient amount, the Regional Administrator will:
    (i) Disapprove transfer. Disapprove any transfer of GAF, IFQ, or QS 
to or from the IFQ permit holder in accordance with Sec.  300.65(c) of 
this title and Sec.  679.41(c), until the IFQ fee liability is 
reconciled, except that NMFS may return unused GAF to the IFQ permit 
holder's account from which it was derived 15 days prior to the closing 
of the commercial halibut fishing season each year.
    (ii) Notify permit holder. Notify the IFQ permit holder by letter 
that an insufficient amount has been paid and that the IFQ permit 
holder has 30 days from the date of the letter to either pay the amount 
determined to be due or provide additional documentation to prove that 
the amount paid was the correct amount.
    (2) After the expiration of the 30-day period, the Regional 
Administrator will evaluate any additional documentation submitted by 
an IFQ permit holder in support of his or her payment. If the Regional 
Administrator determines that the additional documentation does not 
meet the IFQ permit holder's burden of proving his or her payment is 
correct, the Regional Administrator will send the permit holder an IAD 
indicating that the permit holder did not meet the burden of proof to 
change the IFQ fee liability as calculated by the Regional 
Administrator based upon the IFQ standard ex-vessel value. The IAD will 
set out the facts and indicate the deficiencies in the documentation 
submitted by the permit holder. An IFQ permit holder who receives an 
IAD may appeal the IAD, as described in paragraph (h) of this section.
    (3) If the permit holder fails to file an appeal of the IAD 
pursuant to Sec.  679.43, the IAD will become the final agency action.
    (4) If the IAD is appealed and the final agency action is a 
determination that additional sums are due from the IFQ permit holder, 
the IFQ permit holder must pay any IFQ fee amount determined to be due 
not later than 30 days from the issuance of the final agency action.
    (5) Upon final agency action determining that an IFQ permit holder 
has not paid his or her IFQ fee liability, any IFQ fishing permit held 
by the IFQ permit holder is not valid until all IFQ fee liabilities are 
paid.
    (6) If payment is not received on or before the 30th day after the 
final agency action, the matter will be referred to the appropriate 
authorities for purposes of collection.
* * * * *
[FR Doc. 2013-15543 Filed 6-27-13; 8:45 am]
BILLING CODE 3510-22-P