Fishing Capacity Reduction Program for the Longline Catcher Processor Subsector of the Bering Sea and Aleutian Islands Non-pollock Groundfish Fishery, Industry Fee System, 54219-54223 [E7-18788]
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Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Rules and Regulations
§ 54.706
Contributions.
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(e) Any entity required to contribute
to the federal universal service support
mechanisms shall retain, for at least five
years from the date of the contribution,
all records that may be required to
demonstrate to auditors that the
contributions made were in compliance
with the Commission’s universal service
rules. These records shall include
without limitation the following:
Financial statements and supporting
documentation; accounting records;
historical customer records; general
ledgers; and any other relevant
documentation. This document
retention requirement also applies to
any contractor or consultant working on
behalf of the contributor.
I 8. Section 54.713 is revised to read as
follows:
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§ 54.713 Contributors’ failure to report or
to contribute.
(a) A contributor that fails to file a
Telecommunications Reporting
Worksheet and subsequently is billed by
the Administrator shall pay the amount
for which it is billed. The Administrator
may bill a contributor a separate
assessment for reasonable costs incurred
because of that contributor’s filing of an
untruthful or inaccurate
Telecommunications Reporting
Worksheet, failure to file the
Telecommunications Reporting
Worksheet, or late payment of
contributions. Failure to file the
Telecommunications Reporting
Worksheet or to submit required
quarterly contributions may subject the
contributor to the enforcement
provisions of the Act and any other
applicable law. The Administrator shall
advise the Commission of any
enforcement issues that arise and
provide any suggested response. Once a
contributor complies with the
Telecommunications Reporting
Worksheet filing requirements, the
Administrator may refund any
overpayments made by the contributor,
less any fees, interest, or costs.
(b) If a universal service fund
contributor fails to make full payment
on or before the date due of the monthly
amount established by the contributor’s
applicable Form 499–A or Form 499–Q,
or the monthly invoice provided by the
Administrator, the payment is
delinquent. All such delinquent
amounts shall incur from the date of
delinquency, and until all charges and
costs are paid in full, interest at the rate
equal to the U.S. prime rate (in effect on
the date of the delinquency) plus 3.5
percent, as well as administrative
charges of collection and/or penalties
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and charges permitted by the applicable
law (e.g., 31 U.S.C. 3717 and
implementing regulations).
(c) If a universal service fund
contributor is more than 30 days
delinquent in filing a
Telecommunications Reporting
Worksheet Form 499–A or 499–Q, the
Administrator shall assess an
administrative remedial collection
charge equal to the greater of $100 or an
amount computed using the rate of the
U.S. prime rate (in effect on the date the
applicable Worksheet is due) plus 3.5
percent, of the amount due per the
Administrator’s calculations. In
addition, the contributor is responsible
for administrative charges of collection
and/or penalties and charges permitted
by the applicable law (e.g., 31 U.S.C.
3717 and implementing regulations).
The Commission may also pursue
enforcement action against delinquent
contributors and late filers, and assess
costs for collection activities in addition
to those imposed by the Administrator.
(d) In the event a contributor fails
both to file the Worksheet and to pay its
contribution, interest will accrue on the
greater of the amounts due, beginning
with the earlier of the date of the failure
to file or pay.
(e) If a universal service fund
contributor pays the Administrator a
sum that is less than the amount due for
the contributor’s universal service
contribution, the Administrator shall
adhere to the ‘‘American Rule’’ whereby
payment is applied first to outstanding
penalty and administrative cost charges,
next to accrued interest, and third to
outstanding principal. In applying the
payment to outstanding principal, the
Administrator shall apply such payment
to the contributor’s oldest past due
amounts first.
[FR Doc. E7–18711 Filed 9–21–07; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 600
[Docket No. 070607179–7509–02]
RIN 0648–AV66
Fishing Capacity Reduction Program
for the Longline Catcher Processor
Subsector of the Bering Sea and
Aleutian Islands Non-pollock
Groundfish Fishery, Industry Fee
System
National Marine Fisheries
Service (NMFS), National Oceanic and
AGENCY:
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54219
Atmospheric Administration (NOAA),
Commerce.
ACTION: Final rule.
SUMMARY: NMFS establishes regulations
to implement an industry fee system for
repaying a $35 million Federal loan
financing a fishing capacity reduction
program in the longline catcher
processor subsector of the Bering Sea
and Aleutian Islands (BSAI) nonpollock groundfish fishery. This action
implements the fee collection system to
ensure repayment of the loan.
DATES: This final rule is effective, and
fee payment collection begins, on
October 24, 2007.
ADDRESSES: Copies of the
Environmental Assessment/Regulatory
Impact Review/Final Regulatory
Flexibility Analysis (EA/RIR/FRFA)
prepared for the program and the FRFA
for this final rule may be obtained from
Leo Erwin, Chief, Financial Services
Division, National Marine Fisheries
Service, 1315 East-West Highway, Silver
Spring, MD 20910–3282.
Comments involving the burden-hour
estimates or other aspects of the
collection-of-information requirements
contained in this final rule should be
submitted in writing to Leo Erwin, at
the above address, and to David Rostker,
Office of Management and Budget
(OMB), by email at
DavidlRostker@omb.eop.gov or by fax
to 202–395–7285.
FOR FURTHER INFORMATION CONTACT: Leo
Erwin at 301–713 2390.
SUPPLEMENTARY INFORMATION:
I. Background
Sections 312(b)–(e) of the MagnusonStevens Fishery Conservation and
Management Act (16 U.S.C. 1861a(b)
through (e)) generally authorized fishing
capacity reduction programs. In
particular, section 312(d) authorized
industry fee systems for repaying the
reduction loans which finance
reduction program costs. Subpart L of
50 CFR part 600 (§§ 600.1000 through
600.1017) is the framework rule
generally implementing sections 312(b)–
(e). Subpart M of 50 CFR part 600
(§§ 600.1100 through 600.1105) contains
specific fishery or program regulations.
Sections 1111 and 1112 of the
Merchant Marine Act, 1936 (46 U.S.C.
1279f and 1279g) generally authorized
reduction loans.
The FY 2005 Appropriations Act
(Public Law 108–447, Section 219)
authorized a fishing capacity reduction
program for the longline catcher
processor subsector of the BSAI nonpollock groundfish fishery (reduction
fishery).
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NMFS published the longline catcher
processor subsector BSAI non-pollock
reduction program’s (reduction
program) proposed implementation rule
on August 11, 2006 (71 FR 46364) and
its final rule on September 29, 2006 (71
FR 57696). Anyone interested in the
reduction program’s full
implementation details should refer to
these two documents. NMFS proposed
and adopted the reduction program’s
implementation rule as § 600.1105.
The reduction program’s objectives
include promoting sustainable fishery
management and maximum sustained
reduction of fishing capacity from the
reduction fishery at the least cost. This
is a voluntary program in which, in
return for reduction payments, selected
offerors permanently relinquished their
fishing licenses, surrendered the fishing
histories upon which those licenses’
issuance were based, and permanently
withdrew vessels from fishing.
NMFS financed the reduction
program’s $35 million cost, which postreduction BSAI non-pollock groundfish
longline catcher processors repay over
an anticipated 30-year term but fees will
continue indefinitely for as long as
necessary to fully repay the loan.
The fee amount, expressed in cents
per pound rounded up to the next onetenth of a cent, will be based upon the
annual principal and interest due on the
loan and could be up to 5 percent of
longline catcher processor subsector
BSAI Pacific cod landings. In the event
that the total principal and interest due
exceeds 5 percent of the ex-vessel
Pacific cod revenues, an additional fee
of one penny per pound will be assessed
for pollock, arrowtooth flounder,
Greenland turbot, skate, yellowfin sole
and rock sole.
The Freezer Longline Conservation
Cooperative (FLCC) received member
offers and subsequently voted to accept
four offers. The FLCC submitted a
fishing capacity reduction plan
(reduction plan) subsequently approved
by NMFS. A referendum concerning the
fees necessary for repayment of the $35
million loan followed the offer and
acceptance process. Approval of the
industry fee system required at least
two-thirds of the votes cast in the
referendum to be in favor before the
reduction program could be
implemented and payment tendered.
NMFS mailed ballots to 39 qualified
referendum voters on March 21, 2007,
after approving the reduction plan. The
voting period opened on March 21,
2007, and closed on April 6, 2007.
NMFS received 34 timely and valid
votes. All of the votes approved the fees.
This exceeded the two-thirds minimum
required for industry fee system
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approval. Consequently, this
referendum was successful and
approved the industry fee system.
On April 26, 2007, NMFS published
a Federal Register notice (72 FR 20836)
advising the public that NMFS would,
beginning on May 29, 2007, tender the
reduction program’s reduction
payments to the four selected offerors.
On May 29, 2007, NMFS required the
selected offerors to permanently stop all
fishing with the reduction vessels and
permits. Subsequently, NMFS:
1. Disbursed $35,000,000 in reduction
payments to the four selected offerors;
2. Revoked the relinquished reduction
licenses;
3. Revoked each reduction vessel’s
fishing history;
4. Notified the National Vessel
Documentation Center to revoke the
reduction vessels’ fishery trade
endorsements and appropriately
annotate the reduction vessel’s
document; and
5. Notified the U.S. Maritime
Administration to prohibit the reduction
vessel’s transfer to foreign ownership or
registry.
Selected offerors participating in the
reduction program have received $35
million in exchange for relinquishing
valid non-interim Federal License
Limitation Program BSAI groundfish
licenses endorsed for catcher processor
fishing activity, catcher/processor,
Pacific cod, and hook and line gear, as
well as any present or future claims of
eligibility for any fishing privilege based
on such permit, and additionally, any
future fishing privilege of the vessel
named on the permit. Individual fishing
quota shares are excluded from
relinquishment.
On July 20, 2007, NMFS published
proposed regulations in the Federal
Register (72 FR 39779) to implement the
program’s industry fee system.
II. Final Fee Regulations
NMFS has completed the reduction
program except for implementing the
industry fee system. This final rule
implements the industry fee system.
The final rule will be effective, and fee
payment and collection will begin on,
October 24, 2007.
The fee amount will be calculated on
an annual basis as: the principal and
interest payment amount due over the
proceeding twelve months, divided by
the reduction fishery portion of the
BSAI Pacific cod initial total allowable
catch (ITAC) allocation in metric tons
multiplied by 2,205 to convert into
pounds, provided that the fees should
not exceed 5 percent of the average exvessel production value of the reduction
fishery.
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The terms defined in § 600.1105 of the
reduction program’s implementation
rule and in § 600.1000 of the framework
rule apply to this action.
The framework rule’s § 600.1013
governs fee payment and collection in
general, and this action applies the
§ 600.1013 provisions to the reduction
program.
Under § 600.1013, the first ex-vessel
buyers (fish buyers) of post-reduction
fish (fee fish) subject to an industry fee
system must withhold the fee from the
trip proceeds which the fish buyers
would otherwise have paid to the
parties (fish sellers) who harvested and
first sold the fee fish to the fish buyers.
For the purpose of the fee collection,
deposit, disbursement, and accounting
requirements of this subpart, subsector
members are deemed to be both the fish
buyer and fish seller. In this case, all
requirements and penalties of
§ 600.1013 that are applicable to both a
fish seller and a fish buyer shall equally
apply to parties performing both
functions.
The BSAI Pacific cod ITAC was
chosen as the basis for fee calculation of
the reduction program because Pacific
cod is the only directed fishery with a
total allowable catch set in advance of
the fishing season. This methodology
allows for a straightforward calculation
of the fee due and simplifies future
accounting. The fee will be assessed and
collected on Pacific cod to the extent
possible and if the amount is not
sufficient to cover annual principal and
interest due, additional fees will be
assessed and collected. Fees will be
assessed and collected on all harvested
Pacific cod, including that used for bait
or discarded. Although the fee could be
up to 5 percent of the ex-vessel
production value of all post-reduction
longline catcher processor subsector
non-pollock groundfish landings, the fee
will be less than 5 percent if NMFS
projects that a lesser rate can amortize
the fishery’s reduction loan over the
reduction loan’s 30-year term.
If the total principal and interest due
exceeds 5 percent of the ex-vessel
Pacific cod revenues, a penny per
pound round weight fee will be
calculated based on the latest available
revenue records and NMFS conversion
factors for pollock, arrowtooth flounder,
Greenland turbot, skate, yellowfin sole
and rock sole. Any additional fees will
be limited to the amount necessary to
amortize the remaining twelve months
principal and interest in addition to the
5 percent fee assessed against Pacific
cod. If collections exceed the total
principal and interest needed to
amortize the payment due, the principal
balance of the loan will be reduced.
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To verify that the fees collected do not
exceed 5 percent of the reduction
fishery revenues, the annual total of
principal and interest due will be
compared with the latest available
annual reduction fishery revenues to
ensure it is equal to or less than 5
percent of the total ex-vessel production
revenues. In all likelihood this will be
based on State of Alaska’s Commercial
Operator Annual Report produced
annually in the March following the
close of the previous season. If any of
the components necessary to calculate
the next year’s fee are not available, or
for any other reason NMFS believes the
calculation must be postponed, the fee
will remain at the previous year’s
amount until such time that new
calculations are made and
communicated to the post reduction
fishery participants.
The framework rule’s § 600.1014
governs how fish buyers must deposit,
and later disburse to NMFS, the fees
which they have collected as well as
how they must keep records of, and
report about, collected fees. Under the
framework rule’s § 600.1014, fish buyers
must, no less frequently than at the end
of each business week, deposit collected
fees through a date not more than two
calendar days before the date of deposit
in segregated and federally insured
accounts. Fees shall be submitted to
NMFS monthly and shall be due no
later than fifteen (15) calendar days
following the end of each calendar
month. Fee collection reports must
accompany these disbursements. Fish
buyers must maintain specified fee
collection records for at least 3 years
and submit to NMFS annual reports of
fee collection and disbursement
activities by February 1 of each calendar
year.
Under § 600.1015, the late charge to
fish buyers for fee payment, collection,
deposit, and/or disbursement shall be
1.5 percent per month. The full late
charge shall apply to the fee for each
month or portion of a month that the fee
remains unpaid.
To provide more accessible services,
streamline collections, and save
taxpayer dollars, fish buyers may
disburse collected fee deposits to NMFS
by using a secure Federal system on the
Internet known as Pay.gov. Pay.gov
enables subsector members to use their
checking accounts to electronically
disburse their collected fee deposits to
NMFS. Subsector members who have
access to the Internet should consider
using this quick and easy collected fee
disbursement method. Subsector
members may access Pay.gov by going
directly to Pay.gov’s Federal website at:
https://www.pay.gov/paygov/.
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Subsector members who do not have
access to the Internet or who simply do
not wish to use the Pay.gov electronic
system, must disburse collected fee
deposits to NMFS by sending a check to
our lockbox at:
NOAA Fisheries Longline Catcher
Processor Non-pollock Buyback
P O Box 979028
St. Louis, MO 63197—9000
Subsector members must not forget to
include with their disbursements the fee
collection report applicable to each
disbursement. Subsector members using
Pay.gov will find an electronic fee
collection report form to accompany
electronic disbursements. Subsector
members who do not use Pay.gov must
include a hard copy fee collection report
with each of their disbursements.
Subsector members not using Pay.gov
may also access the NMFS website for
a PDF version of the fee collection
report at: https://www.nmfs.noaa.gov/
mb/financiallservices/buyback.htm.
NMFS will, before the fee’s effective
date, separately mail a copy of this rule,
along with detailed fee payment,
collection, deposit, disbursement,
recording, and reporting information
and guidance, to each fish seller and
fish buyer of whom NMFS has notice.
The fact that any fish seller or fish buyer
might not, however, receive from NMFS
a copy of the notice or of the
information and guidance does not
relieve the fish seller or fish buyer from
his fee obligations under the applicable
regulations.
All parties interested in this action
should carefully read the following
framework rule sections, whose detailed
provisions apply to the fee system for
repaying the reduction program’s loan:
1. § 600.1012;
2. § 600.1013;
3. § 600.1014;
4. § 600.1015;
5. § 600.1016; and
6. § 600.1017.
NMFS, in accordance with the
framework rule’s § 600.1013(d),
establishes the initial fee for the
program’s reduction fishery as 2.0 cents
per pound. NMFS will then separately
mail notification to each affected fish
seller and fish buyer of whom NMFS
has notice.
Please see the framework rule’s
§ 600.1000 for the definition of
‘‘delivery value’’ and of the other terms
relevant to this proposed rule. Each
disbursement of the reduction loan’s
$35,000,000 principal amount began
accruing interest as of the date of each
such disbursement. The loan’s interest
rate is the applicable rate, plus 2
percent, which the U.S. Treasury
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determines at the end of fiscal year
2007.
III. Summary of Comments and
Responses
NMFS received one comment in
response to the proposed fee
regulations. The commenter wants to
ban all longline fishing entirely, which
is not in the scope of this action. This
rule implements an industry fee system
to repay the reduction program’s $35
million loan.
IV. Classification
The Assistant Administrator for
Fisheries, NMFS, determined that this
final rule is consistent with the
Magnuson-Stevens Fishery
Conservation and Management Act,
Consolidated Appropriations Act of
2005, and other applicable laws.
In compliance with the National
Environmental Policy Act, NMFS
prepared an EA for the reduction
program’s final implementing rule
(September 29, 2006; 71 FR 57696). The
EA discusses the impact of this final
rule on the natural and human
environment and integrates an RIR and
a FRFA. The EA resulted in a finding of
no significant impact. The EA
considered, among other alternatives,
the implementation of the fee payment
and collection in this action. NMFS will
send the EA, RIR, and FRFA to anyone
who requests a copy (see ADDRESSES).
NMFS prepared a Final Regulatory
Flexibility Analysis (FRFA), as required
by section 603 of the Regulatory
Flexibility Act (RFA), to describe the
economic impacts this rule would have
on small entities. This final rule does
not duplicate or conflict with other
Federal regulations.
FRFA Analysis
The Small Business Administration
has defined small entities as all fish
harvesting businesses that are
independently owned and operated, not
dominant in its field of operation, and
with annual receipts of $4 million or
less. In addition, processors with 500 or
fewer employees for related industries
involved in canned or cured fish and
seafood, or preparing fresh fish and
seafood, are also considered small
entities. Small entities within the scope
of this final rule include individual U.S.
vessels and dealers. There are no
disproportionate impacts between large
and small entities.
Description of the Number of Small
Entities
The FRFA uses the most recent year
of data available to conduct the analysis
(2003). Most firms operating in the
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reduction fishery have annual gross
revenues of less than $4 million. The
FRFA analysis estimates that 24 of the
remaining 36 active longline catcher
processor vessels (i.e., 36 vessels
constitute the post-reduction longline
subsector) that participated in 2003 are
considered small entities. The
remaining 10 vessels are not considered
small entities for purposes of the RFA.
There is one additional fisherman with
a permit but no vessel remaining in the
longline subsector. The vessels that
might be considered large entities were
either affiliated under owners of
multiple vessels or were catcher
processors. However, little is known
about the ownership structure of the
vessels in the fleet, so it is possible that
the FRFA overestimates the number of
small entities. Because the final
reduction program rule has not resulted
in changes to allocation percentages and
participation is voluntary, net effects are
expected to be minimal relative to the
status quo.
The economic impact to communities
where non-pollock groundfish are
landed and processed would be
minimal because the harvest quotas and
allocations would not be altered. Fewer
vessels in the catcher processor fleet
may mean that fewer on-shore fleet
support services would be required in
Seattle and in Dutch Harbor. The
communities would see little change
because total landings of non-pollock
groundfish would remain at current
levels. Some beneficial impacts may
occur because this program has
provided $35 million to successful
offerors. Much of this could be
reinvested in the various communities
which serve as home ports to the vessels
and a portion would be recovered
through income taxes. Crew
employment opportunities will be
reduced when vessels were removed
from the fishery. However, those vessels
remaining in the fishery will likely
experience increased fishing
opportunities and higher per capita
incomes.
The final rule’s impact will be
positive for both those whose offers
NMFS has accepted, the selected
offerors who received payments to stop
fishing, and for post-reduction catcher
processors whose landing fees repay the
reduction loan. The owners whose
offers NMFS accepted have relinquished
their fishing licenses, reduction
privilege vessels where appropriate, and
fishing histories in exchange for
payment. These payments ranged from
$1.5 million for an inactive license that
was not attached to a vessel, up to $11.8
million for the removal of both an active
license and vessel from the fishery.
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Those owners remaining in the
fishery after the reduction program will
incur additional fees of up to 5 percent
of the ex-vessel production value of
post-reduction landings. However, the
additional costs could be mitigated by
increased harvest opportunities by postreduction fishermen. This is because
removal of the vessels from the fishery
creates immediate benefits to the
longline catcher processor subsector by
reducing competition pressure for each
of the remaining vessels to catch fish. In
theory, each of the vessels retaining
their fishing licenses will be able to
harvest more fish. This will likely result
in net benefits to the subsector members
who have voluntarily assumed the
additional fees necessary to repay the
reduction loan.
For example, even though each vessel
could, on average, pay approximately
$77,440 in fees, the net increase per
vessel, on average, could be
approximately $302,560 more than they
would have been able to make before
the reduction program’s implementation
due to the increased opportunity to
harvest the TAC.
This rule affects neither authorized
BSAI Pacific cod ITAC and other nonpollock groundfish harvest levels or
harvesting practices.
NMFS rejected the no action
alternative considered in the EA for the
final rule implementing the reduction
program because NMFS would not be in
compliance with the mandate of Section
219 of the Act to establish a reduction
program. In addition, the longline
catcher processor subsector of the nonpollock groundfish fishery would
remain overcapitalized. Although too
many vessels compete to catch the
current subsector ITAC allocation,
fishermen remain in the fishery because
they have no other means to recover
their significant capital investment.
Overcapitalization reduces the potential
net value that could be derived from the
non-pollock groundfish resource, by
dissipating rents, driving variable
operating costs up, and imposing
economic externalities. At the same
time, excess capacity and effort
diminish the effectiveness of current
management measures (e.g., landing
limits and seasons, bycatch reduction
measures). Overcapitalization has
diminished the economic viability of
members of the fleet and increased the
economic and social burden on fishery
dependent communities.
It has been determined that this final
rule is not significant for purposes of
Executive Order 12866.
This final rule contains collection-ofinformation requirements subject to the
Paperwork Reduction Act. OMB has
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approved these information collections
under OMB Control Number 0648–
AU42. NMFS estimates that the public
reporting burden for these requirements
will average two hours for submitting a
monthly fee collection report and four
hours for submitting an annual fish
buyer report.
These response estimates include the
time for reviewing instructions,
searching existing data sources,
gathering and maintaining the data
needed, and completing and reviewing
the information collection. Send
comments regarding this burden
estimate, or any other aspect of this data
collection, including suggestions for
reducing the burden, to both NMFS and
OMB (see ADDRESSES).
Notwithstanding any other provision
of the law, no person is required to
respond to, and no person is subject to
a penalty for failure to comply with, any
information collection subject to the
Paperwork Reduction Act unless that
information collection displays a
currently valid OMB control number.
List of Subjects in 50 CFR Part 600
Fisheries, Fishing capacity reduction,
Fishing permits, Fishing vessels,
Intergovernmental relations, Loan
programs business, Reporting and
recordkeeping requirements.
Dated: September 19, 2007.
Samuel D. Rauch III
Deputy Assistant Administrator for
Regulatory Programs, National Marine
Fisheries Service.
For the reasons stated in the preamble,
the National Marine Fisheries Service
amends 50 CFR part 600 as follows:
I
PART 600—MAGNUSON-STEVENS
ACT PROVISIONS
1. The authority citation for part 600
continues to read as follows:
I
Authority: 5 U.S.C. 561 and 16 U.S.C. 1801
et seq.
2. Section 600.1106 is added to
subpart M to read as follows:
I
§ 600.1106 Longline catcher processor
subsector Bering Sea and Aleutian Islands
(BSAI) non-pollock groundfish species fee
payment and collection system.
(a) Purpose. As authorized by Public
Law 108 447, this section’s purpose is
to:
(1) In accordance with § 600.1012,
establish:
(i) The borrower’s obligation to repay
a reduction loan, and
(ii) The loan’s principal amount,
interest rate, and repayment term; and
(2) In accordance with §§ 600.1013
through 600.1016, implement an
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industry fee system for the reduction
fishery.
(b) Definitions. Unless otherwise
defined in this section, the terms
defined in § 600.1000 and § 600.1105
expressly apply to this section. In
addition, the following definition
applies to this section:
Reduction fishery means the longline
catcher processor subsector of the BSAI
non-pollock groundfish fishery that
§ 679.2 of this chapter defined as
groundfish area/species endorsements.
(c) Reduction loan amount. The
reduction loan’s original principal
amount is $35,000,000.
(d) Interest accrual from inception.
Interest began accruing on the reduction
loan from May 29, 2007, the date on
which NMFS disbursed such loan.
(e) Interest rate. The reduction loan’s
interest rate shall be the applicable rate
which the U.S. Treasury determines at
the end of fiscal year 2007 plus 2
percent.
(f) Repayment term. For the purpose
of determining fee rates, the reduction
loan’s repayment term is 30 years from
May 29, 2007, but fees shall continue
indefinitely for as long as necessary to
fully repay the loan.
(g) Reduction loan repayment. (1) The
borrower shall, in accordance with
§ 600.1012, repay the reduction loan;
(2) For the purpose of the fee
collection, deposit, disbursement, and
accounting requirements of this subpart,
subsector members are deemed to be
both the fish buyer and fish seller. In
this case, all requirements and penalties
of § 600.1013 that are applicable to both
a fish seller and a fish buyer shall
equally apply to parties performing both
functions;
(3) Subsector members in the
reduction fishery shall pay and collect
the fee amount in accordance with
§ 600.1105;
(4) Subsector members in the
reduction fishery shall, in accordance
with § 600.1014, deposit and disburse,
as well as keep records for and submit
reports about, the fees applicable to
such fishery; except the requirements
specified under paragraph (c) of this
section concerning the deposit principal
disbursement shall be made to NMFS no
later than fifteen (15) calendar days
following the end of each calendar
month; and the requirements specified
under paragraph (e) of this section
concerning annual reports which shall
be submitted to NMFS by February 1 of
each calendar year; and
(5) The reduction loan is, in all other
respects, subject to the provisions of
§§ 600.1012 through 600.1017.
[FR Doc. E7–18788 Filed 9–21–07; 8:45 am]
BILLING CODE 3510–22–S
VerDate Aug<31>2005
12:22 Sep 21, 2007
Jkt 211001
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 622
[Docket No. 0612243157–7522–05; I.D.
112006B]
RIN 0648–AT87
Fisheries of the Caribbean, Gulf of
Mexico, and South Atlantic; Reef Fish
Fishery of the Gulf of Mexico;
Extension of Effective Date of Gulf Red
Snapper Management Measures
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; interim
measures.
AGENCY:
SUMMARY: NMFS issues this temporary
rule to amend, and extend the effective
date of, interim measures to reduce
overfishing of red snapper in Federal
waters of the Gulf of Mexico
implemented by a temporary rule
published by NMFS on April 2, 2007.
This temporary rule amends the
regulations to provide an option for a
special procedure for the initial
calculation of Gulf of Mexico red
snapper 2008 individual fishing quota
allocations. The intended effect is to
reduce overfishing of red snapper in the
Gulf of Mexico.
DATES: This rule is effective September
30, 2007, through March 28, 2008.
ADDRESSES: Copies of the final
environmental impact statement (FEIS)
and Record of Decision (ROD) prepared
for the April 2, 2007 interim final rule
(72 FR 15617) are available from Peter
Hood, Southeast Regional Office, NMFS,
263 13th Avenue South, St. Petersburg,
FL 33701.
FOR FURTHER INFORMATION CONTACT:
Peter Hood, telephone: 727–551–5784,
fax: 727–824–5308, e-mail:
peter.hood@noaa.gov.
The red
snapper fishery of the Gulf of Mexico is
managed under the Fishery
Management Plan (FMP) for the Reef
Fish Resources of the Gulf of Mexico,
and the shrimp fishery is managed
under the FMP for the Shrimp Fishery
of the Gulf of Mexico. The FMPs were
prepared by the Gulf of Mexico Fishery
Management Council (Council) and are
implemented under the authority of the
Magnuson-Stevens Fishery
Conservation and Management Act
(Magnuson-Stevens Act) by regulations
at 50 CFR part 622.
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00017
Fmt 4700
Sfmt 4700
54223
NMFS issued an interim rule (72 FR
15617, April 2, 2007) under section 305
(c) of the Magnuson-Stevens Act, to
reduce fishing mortality on red snapper
by reducing harvest and bycatch levels.
Specifically, the rule: (1) reduces red
snapper total allowable catch (TAC)
from 9.12 million lb (4.14 million kg) to
6.5 million lb (2.9 million kg), whole
weight, resulting in a commercial quota
of 3.315 million lb (1.504 million kg)
and a recreational quota of 3.185 million
lb (1.445 million kg); (2) reduces the
commercial minimum size limit for red
snapper from 15 inches (38 cm) to 13
inches (33 cm) total length (TL); (3)
reduces the daily recreational bag limit
from four fish to two fish per person and
prohibits the captain and crew of forhire vessels (charter vessels and
headboats) from retaining the
recreational bag limit; and (4)
establishes a goal to reduce red snapper
bycatch mortality in the shrimp fishery
to 50 percent of the bycatch mortality
that occurred during 2001–2003. These
measures remain necessary to address
overfishing of the red snapper resource.
Under section 305 (c)(3)(B) of the
Magnuson-Stevens Act, NMFS may
extend the effectiveness of an interim
rule for one additional period of not
more than 186 days, provided the public
has had an opportunity to comment on
the interim rule and the Council is
actively preparing proposed regulations
to address the overfishing on a
permanent basis. NMFS solicited public
comments on the interim proposed rule
(71 FR 75220, December 14, 2006) and
received numerous comments. These
comments were summarized and
NMFS’s responses were provided in the
interim final rule (72 FR 15617, April 2,
2007). The Council has prepared joint
Amendment 27/14 to the reef fish and
shrimp fishery management plans in the
Gulf of Mexico (Amendment 27/14).
This amendment includes additional
measures to end overfishing and to
rebuild the red snapper stock. The
expiration date of the interim rule is
being extended so that NMFS may
continue to address overfishing of red
snapper while considering the
implementation of more permanent
measures recommended by the Council
in Amendment 27/14. Failure to extend
the effectiveness of the initial interim
rule would result in overfishing of Gulf
red snapper and would jeopardize the
red snapper rebuilding plan.
Additional details concerning the
basis for these changes to the red
snapper management measures and
discussion of the ongoing efforts of the
Council and NMFS to evaluate and
implement measures to rebuild the red
snapper stock consistent with the
E:\FR\FM\24SER1.SGM
24SER1
]]>Agencies
[Federal Register Volume 72, Number 184 (Monday, September 24, 2007)]
[Rules and Regulations]
[Pages 54219-54223]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18788]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 600
[Docket No. 070607179-7509-02]
RIN 0648-AV66
Fishing Capacity Reduction Program for the Longline Catcher
Processor Subsector of the Bering Sea and Aleutian Islands Non-pollock
Groundfish Fishery, Industry Fee System
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: NMFS establishes regulations to implement an industry fee
system for repaying a $35 million Federal loan financing a fishing
capacity reduction program in the longline catcher processor subsector
of the Bering Sea and Aleutian Islands (BSAI) non-pollock groundfish
fishery. This action implements the fee collection system to ensure
repayment of the loan.
DATES: This final rule is effective, and fee payment collection begins,
on October 24, 2007.
ADDRESSES: Copies of the Environmental Assessment/Regulatory Impact
Review/Final Regulatory Flexibility Analysis (EA/RIR/FRFA) prepared for
the program and the FRFA for this final rule may be obtained from Leo
Erwin, Chief, Financial Services Division, National Marine Fisheries
Service, 1315 East-West Highway, Silver Spring, MD 20910-3282.
Comments involving the burden-hour estimates or other aspects of
the collection-of-information requirements contained in this final rule
should be submitted in writing to Leo Erwin, at the above address, and
to David Rostker, Office of Management and Budget (OMB), by email at
David--Rostker@omb.eop.gov or by fax to 202-395-7285.
FOR FURTHER INFORMATION CONTACT: Leo Erwin at 301-713 2390.
SUPPLEMENTARY INFORMATION:
I. Background
Sections 312(b)-(e) of the Magnuson-Stevens Fishery Conservation
and Management Act (16 U.S.C. 1861a(b) through (e)) generally
authorized fishing capacity reduction programs. In particular, section
312(d) authorized industry fee systems for repaying the reduction loans
which finance reduction program costs. Subpart L of 50 CFR part 600
(Sec. Sec. 600.1000 through 600.1017) is the framework rule generally
implementing sections 312(b)-(e). Subpart M of 50 CFR part 600
(Sec. Sec. 600.1100 through 600.1105) contains specific fishery or
program regulations.
Sections 1111 and 1112 of the Merchant Marine Act, 1936 (46 U.S.C.
1279f and 1279g) generally authorized reduction loans.
The FY 2005 Appropriations Act (Public Law 108-447, Section 219)
authorized a fishing capacity reduction program for the longline
catcher processor subsector of the BSAI non-pollock groundfish fishery
(reduction fishery).
[[Page 54220]]
NMFS published the longline catcher processor subsector BSAI non-
pollock reduction program's (reduction program) proposed implementation
rule on August 11, 2006 (71 FR 46364) and its final rule on September
29, 2006 (71 FR 57696). Anyone interested in the reduction program's
full implementation details should refer to these two documents. NMFS
proposed and adopted the reduction program's implementation rule as
Sec. 600.1105.
The reduction program's objectives include promoting sustainable
fishery management and maximum sustained reduction of fishing capacity
from the reduction fishery at the least cost. This is a voluntary
program in which, in return for reduction payments, selected offerors
permanently relinquished their fishing licenses, surrendered the
fishing histories upon which those licenses' issuance were based, and
permanently withdrew vessels from fishing.
NMFS financed the reduction program's $35 million cost, which post-
reduction BSAI non-pollock groundfish longline catcher processors repay
over an anticipated 30-year term but fees will continue indefinitely
for as long as necessary to fully repay the loan.
The fee amount, expressed in cents per pound rounded up to the next
one-tenth of a cent, will be based upon the annual principal and
interest due on the loan and could be up to 5 percent of longline
catcher processor subsector BSAI Pacific cod landings. In the event
that the total principal and interest due exceeds 5 percent of the ex-
vessel Pacific cod revenues, an additional fee of one penny per pound
will be assessed for pollock, arrowtooth flounder, Greenland turbot,
skate, yellowfin sole and rock sole.
The Freezer Longline Conservation Cooperative (FLCC) received
member offers and subsequently voted to accept four offers. The FLCC
submitted a fishing capacity reduction plan (reduction plan)
subsequently approved by NMFS. A referendum concerning the fees
necessary for repayment of the $35 million loan followed the offer and
acceptance process. Approval of the industry fee system required at
least two-thirds of the votes cast in the referendum to be in favor
before the reduction program could be implemented and payment tendered.
NMFS mailed ballots to 39 qualified referendum voters on March 21,
2007, after approving the reduction plan. The voting period opened on
March 21, 2007, and closed on April 6, 2007. NMFS received 34 timely
and valid votes. All of the votes approved the fees. This exceeded the
two-thirds minimum required for industry fee system approval.
Consequently, this referendum was successful and approved the industry
fee system.
On April 26, 2007, NMFS published a Federal Register notice (72 FR
20836) advising the public that NMFS would, beginning on May 29, 2007,
tender the reduction program's reduction payments to the four selected
offerors. On May 29, 2007, NMFS required the selected offerors to
permanently stop all fishing with the reduction vessels and permits.
Subsequently, NMFS:
1. Disbursed $35,000,000 in reduction payments to the four selected
offerors;
2. Revoked the relinquished reduction licenses;
3. Revoked each reduction vessel's fishing history;
4. Notified the National Vessel Documentation Center to revoke the
reduction vessels' fishery trade endorsements and appropriately
annotate the reduction vessel's document; and
5. Notified the U.S. Maritime Administration to prohibit the
reduction vessel's transfer to foreign ownership or registry.
Selected offerors participating in the reduction program have
received $35 million in exchange for relinquishing valid non-interim
Federal License Limitation Program BSAI groundfish licenses endorsed
for catcher processor fishing activity, catcher/processor, Pacific cod,
and hook and line gear, as well as any present or future claims of
eligibility for any fishing privilege based on such permit, and
additionally, any future fishing privilege of the vessel named on the
permit. Individual fishing quota shares are excluded from
relinquishment.
On July 20, 2007, NMFS published proposed regulations in the
Federal Register (72 FR 39779) to implement the program's industry fee
system.
II. Final Fee Regulations
NMFS has completed the reduction program except for implementing
the industry fee system. This final rule implements the industry fee
system. The final rule will be effective, and fee payment and
collection will begin on, October 24, 2007.
The fee amount will be calculated on an annual basis as: the
principal and interest payment amount due over the proceeding twelve
months, divided by the reduction fishery portion of the BSAI Pacific
cod initial total allowable catch (ITAC) allocation in metric tons
multiplied by 2,205 to convert into pounds, provided that the fees
should not exceed 5 percent of the average ex-vessel production value
of the reduction fishery.
The terms defined in Sec. 600.1105 of the reduction program's
implementation rule and in Sec. 600.1000 of the framework rule apply
to this action.
The framework rule's Sec. 600.1013 governs fee payment and
collection in general, and this action applies the Sec. 600.1013
provisions to the reduction program.
Under Sec. 600.1013, the first ex-vessel buyers (fish buyers) of
post-reduction fish (fee fish) subject to an industry fee system must
withhold the fee from the trip proceeds which the fish buyers would
otherwise have paid to the parties (fish sellers) who harvested and
first sold the fee fish to the fish buyers. For the purpose of the fee
collection, deposit, disbursement, and accounting requirements of this
subpart, subsector members are deemed to be both the fish buyer and
fish seller. In this case, all requirements and penalties of Sec.
600.1013 that are applicable to both a fish seller and a fish buyer
shall equally apply to parties performing both functions.
The BSAI Pacific cod ITAC was chosen as the basis for fee
calculation of the reduction program because Pacific cod is the only
directed fishery with a total allowable catch set in advance of the
fishing season. This methodology allows for a straightforward
calculation of the fee due and simplifies future accounting. The fee
will be assessed and collected on Pacific cod to the extent possible
and if the amount is not sufficient to cover annual principal and
interest due, additional fees will be assessed and collected. Fees will
be assessed and collected on all harvested Pacific cod, including that
used for bait or discarded. Although the fee could be up to 5 percent
of the ex-vessel production value of all post-reduction longline
catcher processor subsector non-pollock groundfish landings, the fee
will be less than 5 percent if NMFS projects that a lesser rate can
amortize the fishery's reduction loan over the reduction loan's 30-year
term.
If the total principal and interest due exceeds 5 percent of the
ex-vessel Pacific cod revenues, a penny per pound round weight fee will
be calculated based on the latest available revenue records and NMFS
conversion factors for pollock, arrowtooth flounder, Greenland turbot,
skate, yellowfin sole and rock sole. Any additional fees will be
limited to the amount necessary to amortize the remaining twelve months
principal and interest in addition to the 5 percent fee assessed
against Pacific cod. If collections exceed the total principal and
interest needed to amortize the payment due, the principal balance of
the loan will be reduced.
[[Page 54221]]
To verify that the fees collected do not exceed 5 percent of the
reduction fishery revenues, the annual total of principal and interest
due will be compared with the latest available annual reduction fishery
revenues to ensure it is equal to or less than 5 percent of the total
ex-vessel production revenues. In all likelihood this will be based on
State of Alaska's Commercial Operator Annual Report produced annually
in the March following the close of the previous season. If any of the
components necessary to calculate the next year's fee are not
available, or for any other reason NMFS believes the calculation must
be postponed, the fee will remain at the previous year's amount until
such time that new calculations are made and communicated to the post
reduction fishery participants.
The framework rule's Sec. 600.1014 governs how fish buyers must
deposit, and later disburse to NMFS, the fees which they have collected
as well as how they must keep records of, and report about, collected
fees. Under the framework rule's Sec. 600.1014, fish buyers must, no
less frequently than at the end of each business week, deposit
collected fees through a date not more than two calendar days before
the date of deposit in segregated and federally insured accounts. Fees
shall be submitted to NMFS monthly and shall be due no later than
fifteen (15) calendar days following the end of each calendar month.
Fee collection reports must accompany these disbursements. Fish buyers
must maintain specified fee collection records for at least 3 years and
submit to NMFS annual reports of fee collection and disbursement
activities by February 1 of each calendar year.
Under Sec. 600.1015, the late charge to fish buyers for fee
payment, collection, deposit, and/or disbursement shall be 1.5 percent
per month. The full late charge shall apply to the fee for each month
or portion of a month that the fee remains unpaid.
To provide more accessible services, streamline collections, and
save taxpayer dollars, fish buyers may disburse collected fee deposits
to NMFS by using a secure Federal system on the Internet known as
Pay.gov. Pay.gov enables subsector members to use their checking
accounts to electronically disburse their collected fee deposits to
NMFS. Subsector members who have access to the Internet should consider
using this quick and easy collected fee disbursement method. Subsector
members may access Pay.gov by going directly to Pay.gov's Federal
website at: https://www.pay.gov/paygov/.
Subsector members who do not have access to the Internet or who
simply do not wish to use the Pay.gov electronic system, must disburse
collected fee deposits to NMFS by sending a check to our lockbox at:
NOAA Fisheries Longline Catcher Processor Non-pollock Buyback
P O Box 979028
St. Louis, MO 63197--9000
Subsector members must not forget to include with their
disbursements the fee collection report applicable to each
disbursement. Subsector members using Pay.gov will find an electronic
fee collection report form to accompany electronic disbursements.
Subsector members who do not use Pay.gov must include a hard copy fee
collection report with each of their disbursements. Subsector members
not using Pay.gov may also access the NMFS website for a PDF version of
the fee collection report at: https://www.nmfs.noaa.gov/mb/financial_
services/buyback.htm.
NMFS will, before the fee's effective date, separately mail a copy
of this rule, along with detailed fee payment, collection, deposit,
disbursement, recording, and reporting information and guidance, to
each fish seller and fish buyer of whom NMFS has notice. The fact that
any fish seller or fish buyer might not, however, receive from NMFS a
copy of the notice or of the information and guidance does not relieve
the fish seller or fish buyer from his fee obligations under the
applicable regulations.
All parties interested in this action should carefully read the
following framework rule sections, whose detailed provisions apply to
the fee system for repaying the reduction program's loan:
1. Sec. 600.1012;
2. Sec. 600.1013;
3. Sec. 600.1014;
4. Sec. 600.1015;
5. Sec. 600.1016; and
6. Sec. 600.1017.
NMFS, in accordance with the framework rule's Sec. 600.1013(d),
establishes the initial fee for the program's reduction fishery as 2.0
cents per pound. NMFS will then separately mail notification to each
affected fish seller and fish buyer of whom NMFS has notice.
Please see the framework rule's Sec. 600.1000 for the definition
of ``delivery value'' and of the other terms relevant to this proposed
rule. Each disbursement of the reduction loan's $35,000,000 principal
amount began accruing interest as of the date of each such
disbursement. The loan's interest rate is the applicable rate, plus 2
percent, which the U.S. Treasury determines at the end of fiscal year
2007.
III. Summary of Comments and Responses
NMFS received one comment in response to the proposed fee
regulations. The commenter wants to ban all longline fishing entirely,
which is not in the scope of this action. This rule implements an
industry fee system to repay the reduction program's $35 million loan.
IV. Classification
The Assistant Administrator for Fisheries, NMFS, determined that
this final rule is consistent with the Magnuson-Stevens Fishery
Conservation and Management Act, Consolidated Appropriations Act of
2005, and other applicable laws.
In compliance with the National Environmental Policy Act, NMFS
prepared an EA for the reduction program's final implementing rule
(September 29, 2006; 71 FR 57696). The EA discusses the impact of this
final rule on the natural and human environment and integrates an RIR
and a FRFA. The EA resulted in a finding of no significant impact. The
EA considered, among other alternatives, the implementation of the fee
payment and collection in this action. NMFS will send the EA, RIR, and
FRFA to anyone who requests a copy (see ADDRESSES).
NMFS prepared a Final Regulatory Flexibility Analysis (FRFA), as
required by section 603 of the Regulatory Flexibility Act (RFA), to
describe the economic impacts this rule would have on small entities.
This final rule does not duplicate or conflict with other Federal
regulations.
FRFA Analysis
The Small Business Administration has defined small entities as all
fish harvesting businesses that are independently owned and operated,
not dominant in its field of operation, and with annual receipts of $4
million or less. In addition, processors with 500 or fewer employees
for related industries involved in canned or cured fish and seafood, or
preparing fresh fish and seafood, are also considered small entities.
Small entities within the scope of this final rule include individual
U.S. vessels and dealers. There are no disproportionate impacts between
large and small entities.
Description of the Number of Small Entities
The FRFA uses the most recent year of data available to conduct the
analysis (2003). Most firms operating in the
[[Page 54222]]
reduction fishery have annual gross revenues of less than $4 million.
The FRFA analysis estimates that 24 of the remaining 36 active longline
catcher processor vessels (i.e., 36 vessels constitute the post-
reduction longline subsector) that participated in 2003 are considered
small entities. The remaining 10 vessels are not considered small
entities for purposes of the RFA. There is one additional fisherman
with a permit but no vessel remaining in the longline subsector. The
vessels that might be considered large entities were either affiliated
under owners of multiple vessels or were catcher processors. However,
little is known about the ownership structure of the vessels in the
fleet, so it is possible that the FRFA overestimates the number of
small entities. Because the final reduction program rule has not
resulted in changes to allocation percentages and participation is
voluntary, net effects are expected to be minimal relative to the
status quo.
The economic impact to communities where non-pollock groundfish are
landed and processed would be minimal because the harvest quotas and
allocations would not be altered. Fewer vessels in the catcher
processor fleet may mean that fewer on-shore fleet support services
would be required in Seattle and in Dutch Harbor. The communities would
see little change because total landings of non-pollock groundfish
would remain at current levels. Some beneficial impacts may occur
because this program has provided $35 million to successful offerors.
Much of this could be reinvested in the various communities which serve
as home ports to the vessels and a portion would be recovered through
income taxes. Crew employment opportunities will be reduced when
vessels were removed from the fishery. However, those vessels remaining
in the fishery will likely experience increased fishing opportunities
and higher per capita incomes.
The final rule's impact will be positive for both those whose
offers NMFS has accepted, the selected offerors who received payments
to stop fishing, and for post-reduction catcher processors whose
landing fees repay the reduction loan. The owners whose offers NMFS
accepted have relinquished their fishing licenses, reduction privilege
vessels where appropriate, and fishing histories in exchange for
payment. These payments ranged from $1.5 million for an inactive
license that was not attached to a vessel, up to $11.8 million for the
removal of both an active license and vessel from the fishery.
Those owners remaining in the fishery after the reduction program
will incur additional fees of up to 5 percent of the ex-vessel
production value of post-reduction landings. However, the additional
costs could be mitigated by increased harvest opportunities by post-
reduction fishermen. This is because removal of the vessels from the
fishery creates immediate benefits to the longline catcher processor
subsector by reducing competition pressure for each of the remaining
vessels to catch fish. In theory, each of the vessels retaining their
fishing licenses will be able to harvest more fish. This will likely
result in net benefits to the subsector members who have voluntarily
assumed the additional fees necessary to repay the reduction loan.
For example, even though each vessel could, on average, pay
approximately $77,440 in fees, the net increase per vessel, on average,
could be approximately $302,560 more than they would have been able to
make before the reduction program's implementation due to the increased
opportunity to harvest the TAC.
This rule affects neither authorized BSAI Pacific cod ITAC and
other non-pollock groundfish harvest levels or harvesting practices.
NMFS rejected the no action alternative considered in the EA for
the final rule implementing the reduction program because NMFS would
not be in compliance with the mandate of Section 219 of the Act to
establish a reduction program. In addition, the longline catcher
processor subsector of the non-pollock groundfish fishery would remain
overcapitalized. Although too many vessels compete to catch the current
subsector ITAC allocation, fishermen remain in the fishery because they
have no other means to recover their significant capital investment.
Overcapitalization reduces the potential net value that could be
derived from the non-pollock groundfish resource, by dissipating rents,
driving variable operating costs up, and imposing economic
externalities. At the same time, excess capacity and effort diminish
the effectiveness of current management measures (e.g., landing limits
and seasons, bycatch reduction measures). Overcapitalization has
diminished the economic viability of members of the fleet and increased
the economic and social burden on fishery dependent communities.
It has been determined that this final rule is not significant for
purposes of Executive Order 12866.
This final rule contains collection-of-information requirements
subject to the Paperwork Reduction Act. OMB has approved these
information collections under OMB Control Number 0648-AU42. NMFS
estimates that the public reporting burden for these requirements will
average two hours for submitting a monthly fee collection report and
four hours for submitting an annual fish buyer report.
These response estimates include the time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
information collection. Send comments regarding this burden estimate,
or any other aspect of this data collection, including suggestions for
reducing the burden, to both NMFS and OMB (see ADDRESSES).
Notwithstanding any other provision of the law, no person is
required to respond to, and no person is subject to a penalty for
failure to comply with, any information collection subject to the
Paperwork Reduction Act unless that information collection displays a
currently valid OMB control number.
List of Subjects in 50 CFR Part 600
Fisheries, Fishing capacity reduction, Fishing permits, Fishing
vessels, Intergovernmental relations, Loan programs business, Reporting
and recordkeeping requirements.
Dated: September 19, 2007.
Samuel D. Rauch III
Deputy Assistant Administrator for Regulatory Programs, National Marine
Fisheries Service.
0
For the reasons stated in the preamble, the National Marine Fisheries
Service amends 50 CFR part 600 as follows:
PART 600--MAGNUSON-STEVENS ACT PROVISIONS
0
1. The authority citation for part 600 continues to read as follows:
Authority: 5 U.S.C. 561 and 16 U.S.C. 1801 et seq.
0
2. Section 600.1106 is added to subpart M to read as follows:
Sec. 600.1106 Longline catcher processor subsector Bering Sea and
Aleutian Islands (BSAI) non-pollock groundfish species fee payment and
collection system.
(a) Purpose. As authorized by Public Law 108 447, this section's
purpose is to:
(1) In accordance with Sec. 600.1012, establish:
(i) The borrower's obligation to repay a reduction loan, and
(ii) The loan's principal amount, interest rate, and repayment
term; and
(2) In accordance with Sec. Sec. 600.1013 through 600.1016,
implement an
[[Page 54223]]
industry fee system for the reduction fishery.
(b) Definitions. Unless otherwise defined in this section, the
terms defined in Sec. 600.1000 and Sec. 600.1105 expressly apply to
this section. In addition, the following definition applies to this
section:
Reduction fishery means the longline catcher processor subsector of
the BSAI non-pollock groundfish fishery that Sec. 679.2 of this
chapter defined as groundfish area/species endorsements.
(c) Reduction loan amount. The reduction loan's original principal
amount is $35,000,000.
(d) Interest accrual from inception. Interest began accruing on the
reduction loan from May 29, 2007, the date on which NMFS disbursed such
loan.
(e) Interest rate. The reduction loan's interest rate shall be the
applicable rate which the U.S. Treasury determines at the end of fiscal
year 2007 plus 2 percent.
(f) Repayment term. For the purpose of determining fee rates, the
reduction loan's repayment term is 30 years from May 29, 2007, but fees
shall continue indefinitely for as long as necessary to fully repay the
loan.
(g) Reduction loan repayment. (1) The borrower shall, in accordance
with Sec. 600.1012, repay the reduction loan;
(2) For the purpose of the fee collection, deposit, disbursement,
and accounting requirements of this subpart, subsector members are
deemed to be both the fish buyer and fish seller. In this case, all
requirements and penalties of Sec. 600.1013 that are applicable to
both a fish seller and a fish buyer shall equally apply to parties
performing both functions;
(3) Subsector members in the reduction fishery shall pay and
collect the fee amount in accordance with Sec. 600.1105;
(4) Subsector members in the reduction fishery shall, in accordance
with Sec. 600.1014, deposit and disburse, as well as keep records for
and submit reports about, the fees applicable to such fishery; except
the requirements specified under paragraph (c) of this section
concerning the deposit principal disbursement shall be made to NMFS no
later than fifteen (15) calendar days following the end of each
calendar month; and the requirements specified under paragraph (e) of
this section concerning annual reports which shall be submitted to NMFS
by February 1 of each calendar year; and
(5) The reduction loan is, in all other respects, subject to the
provisions of Sec. Sec. 600.1012 through 600.1017.
[FR Doc. E7-18788 Filed 9-21-07; 8:45 am]
BILLING CODE 3510-22-S
