Fisheries of the Northeastern United States; Atlantic Sea Scallop Fishery; Amendment 11, 71315-71344 [E7-24254]

Agencies

• DEPARTMENT OF COMMERCE
• National Oceanic and Atmospheric Administration

[Federal Register Volume 72, Number 241 (Monday, December 17, 2007)]
[Proposed Rules]
[Pages 71315-71344]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24254]


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

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 071130780-7564-01]
RIN 0648-AU32


Fisheries of the Northeastern United States; Atlantic Sea Scallop 
Fishery; Amendment 11

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

ACTION: Proposed rule; request for comments.

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

SUMMARY: NMFS proposes regulations to implement measures in Amendment 
11 to the Atlantic Sea Scallop Fishery Management Plan (FMP). Amendment 
11 was developed by the New England Fishery Management Council 
(Council) to control the capacity of the open access general category 
fleet. Amendment 11 would establish a new management program for the 
general category fishery, including a limited access program with 
individual fishing quotas (IFQs) for qualified general category 
vessels, a specific allocation for general category fisheries, and 
other measures to improve management of the general category scallop 
fishery.

DATES: Public comments must be received no later than 5 p.m., eastern 
standard time, on January 31, 2008.

ADDRESSES: A final supplemental environmental impact statement (FSEIS) 
was prepared for Amendment 11 that describes the proposed action and 
other considered alternatives and provides a thorough analysis of the 
impacts of the proposed measures and alternatives. Copies of Amendment 
11, the FSEIS, and the Initial Regulatory Flexibility Analysis (IRFA), 
are available on request from Paul J. Howard, Executive Director, New 
England Fishery Management Council (Council), 50 Water Street, 
Newburyport, MA 01950. These documents are also available online at 
https://www.nefmc.org.
    You may submit comments, identified by 0648-AU32, by any one of the 
following methods:
     Electronic Submissions: Submit all electronic public 
comments via the Federal eRulemaking Portal https://www.regulations.gov
     Fax: (978) 281-9135, Attn: Peter Christopher
     Mail: Patricia A. Kurkul, Regional Administrator, NMFS, 
Northeast Regional Office, One Blackburn Drive, Gloucester, MA 01930. 
Mark the outside of the envelope, ``Comments on Scallop Amendment 11 
Proposed Rule.''
    Instructions: All comments received are a part of the public record 
and will generally be posted to https://www.regulations.gov without 
change. All personal identifying information (for example, name, 
address, etc.) voluntarily submitted by the commenter may be publicly 
accessible. Do not submit confidential business information or 
otherwise sensitive or protected information. NMFS will accept 
anonymous comments. Attachments to electronic comments will be accepted 
in Microsoft Word, Excel, WordPerfect, or Adobe PDF file formats only.
    Written comments regarding the burden-hour estimate or other 
aspects of the collection-of-information requirement contained in this 
proposed rule should be submitted to the Regional Administrator at the 
address above and by e-mail to David--Rostker@omb.eop.gov, or fax to 
202-395-7285.

FOR FURTHER INFORMATION CONTACT: Peter Christopher, Fishery Policy 
Analyst, phone 978-281-9288, fax 978-281-9135.

SUPPLEMENTARY INFORMATION:

Background

    The general category scallop fishery is currently an open access 
fishery that allows any vessel to fish for up to 400 lb (181.44 kg) of 
Atlantic sea scallops (scallops), provided the vessel has been issued a 
general category or limited access scallop permit. This open access 
fishery was established in 1994 by Amendment 4 to the FMP (Amendment 4) 
to allow vessels fishing in non-scallop fisheries to catch scallops as 
incidental catch, and to allow a small-scale scallop fishery to 
continue outside of the limited access and effort control programs 
aimed at the large-scale scallop fishery. Over time, the overall 
participation in the general category fishery has increased. In 1994, 
there were 1,992 general category permits issued. By 2005 that number 
had increased to 2,950. In 1994, there were 181 general category 
vessels that landed scallops, while in 2005 there were over 600.
    Out of concern about the level of fishing effort and harvest from 
the general category scallop fleet, the Council recommended that a 
Federal Register notice should be published to notify the public that 
the Council would consider limiting entry to the general category 
scallop fishery as of a specified control date. NMFS subsequently 
established the control date of November 1, 2004. In January 2006, the 
Council began the development of Amendment 11 to evaluate alternatives 
for a limited access program and other measures for general category 
vessels. The Council held 35 meetings open to the public on Amendment 
11 between January 2006 and June 2007. After considering a wide range 
of issues, alternatives, and public input, the Council adopted a draft 
supplemental environmental impact statement (DSEIS) for Amendment 11 on 
April 11, 2007. Following the close of the public comment period on 
June 18, 2007, the Council adopted Amendment 11 on June 20, 2007.
    Amendment 11 would establish criteria and authority for determining 
the percentage of scallop catch allocated to the general category fleet 
and would establish the IFQ program. However, these specific allocation 
amounts have been being developed by the Council as part of Framework 
19 to the FMP (Framework 19) which will establish scallop fishery 
management measures for the 2008 and 2009 fishing years. After 
proposing the allowable levels of fishing based on updated survey 
information and fishing mortality targets, the total allowable catches 
(TACs) described below would be specified through a separate rulemaking 
for Framework 19. Framework 19 also would specify management measures 
for the 2008 and 2009 fishing years that would be recommended if 
Amendment 11 is not approved.
    A Notice of Availability (NOA) for Amendment 11 was published on 
November 30, 2007. The comment period on the NOA ends on January 29, 
2008.

Proposed Measures

    The proposed regulations are based on the description of the 
measures in Amendment 11. NMFS has noted several instances where it has 
interpreted the language in Amendment 11 to account for any missing 
details in the Council's description of the proposed measures. NMFS 
seeks comments on all of the measures in Amendment 11, particularly the 
noted instances.

[[Page 71316]]

Limited Access Program for the General Category Fishery

    Amendment 11 would require vessels to be issued a limited access 
general category (LAGC) scallop permit in order to land scallops under 
general category rules. All general category permits would be limited 
access, requiring that a vessel owner submit an application 
demonstrating that the vessel is eligible for the permit. The current 
general category permits (1A- non VMS, and 1B- VMS permits) would be 
replaced with three types of LAGC scallop permits: IFQ LAGC scallop 
permit (IFQ scallop permit); Northern Gulf of Maine (NGOM) LAGC scallop 
permit (NGOM scallop permit); and incidental catch LAGC scallop permit 
(Incidental scallop permit).
    A vessel would be eligible to be issued an IFQ scallop permit if 
the owner could document landings of at least 1,000 lb (454 kg) of 
scallop meats, as verified by NMFS records or documented through dealer 
receipts, in any fishing year between March 1, 2000, and November 1, 
2004, and issuance of a general category scallop permit to the vessel 
during the fishing year in which the landings were made.
    The owner of a vessel who cannot qualify for an IFQ scallop permit, 
or who elects not to apply for an IFQ scallop permit, could instead be 
issued a NGOM scallop permit. The NGOM scallop permit would allow the 
vessel to fish in the NGOM exclusively, defined as the waters north of 
42[deg] 20' N. Lat. A vessel would qualify for the NGOM scallop permit 
if it had been issued a valid general category scallop permit as of 
November 1, 2004. There would be no landings eligibility criteria. 
Vessels issued this permit would be subject to additional restrictions 
outlined in the description of the NGOM Scallop Management Area below.
    A vessel would qualify for an Incidental scallop permit if it had 
been issued a valid general category scallop permit as of November 1, 
2004. There would be no landings eligibility criteria. This provision 
is intended to allow an incidental level of scallop catch for vessels 
that meet the permit eligibility, but not the landings criteria. This 
permit would allow such vessels to possess and land up to 40 lb (18.14 
kg) of scallops per trip, and is intended to allow landing of 
incidental scallop catch. Some vessels that could qualify for an IFQ 
scallop permit may opt for the Incidental scallop permit because it 
permits vessels to land an incidental catch of scallops on an unlimited 
number of trips. In drafting the proposed rule, NMFS presumed that the 
limited access permit restrictions specified below apply to all three 
types of LAGC scallop permit, unless specifically excluded in Amendment 
11.

Initial Application for a LAGC Scallop Permit

    A vessel owner would be required to submit an initial application 
for a LAGC scallop permit or confirmation of permit history within 90 
days of the effective date of the final regulations. The Council 
recommended the shorter than usual application period to expedite the 
transition to the IFQ program. The IFQ program cannot be implemented 
until all IFQ permits are issued because the number of vessels and the 
contribution factors for all qualified IFQ scallop vessels will be used 
to determine each vessel's IFQ share of the TAC allocated to IFQ 
scallop vessels (see ``IFQs for Limited Access General Category Scallop 
Vessels'' below).

Limited Access Vessel Permit Provisions

    Amendment 11 would establish measures to govern future transactions 
related to limited access vessels, such as purchases, sales, or 
reconstruction. These measures would apply to all LAGC scallop vessels. 
Except as noted, the provisions proposed in this amendment are 
consistent with those that govern most of the other Northeast region 
limited access fisheries; there are some differences in the limited 
access program for American lobster.
1. Initial Eligibility
    Initial eligibility for an LAGC scallop permit would have to be 
established during the first year after the implementation of Amendment 
11. A vessel owner would be required to submit an application for an 
LAGC scallop permit or CPH within 90 days of the effective date of the 
final regulations.
2. Landings History
    Amendment 11 specifies landings and permit history criteria that a 
vessel would have to meet to qualify for LAGC permits. It also 
specifies that an IFQ scallop vessel would be allocated IFQ based on 
its best year of scallop landings and the number of fishing years 
active during the qualification period of March 1, 2000, through 
November 1, 2004. Amendment 11 specifies that qualifying landings would 
have to be from the same scallop fishing year (March 1 through February 
28/29) that a vessel was issued a general category scallop permit 
during the qualification period. Therefore, this proposed rule requires 
that, for any landings to be used in determining eligibility, best year 
of fishing, years active, and the resulting contribution factor, the 
vessel must have been issued a general category scallop permit in the 
fishing year the landings were made.
    The best year of scallop landings would be the scallop fishing year 
during the qualification period with the highest amount of scallop 
meats landed, provided the vessel was issued a general category scallop 
permit. Years active would be the number of scallop fishing years 
during the qualification period that the vessel landed at least 1lb 
(0.45 kg) of scallops provided the vessel was issued a general category 
scallop permit. In-shell scallop landings would be converted to meat-
weight using the formula of 8.33 lb (3.78 kg) of scallop meats for each 
U.S. bushel of in-shell scallops, for qualification purposes.
    NMFS landings data from dealer reports would be used to determine a 
vessel's eligibility for an IFQ scallop permit, a qualified IFQ scallop 
vessel's best year of scallop landings, and years active in the general 
category scallop fishery. The NMFS permit database would be used to 
determine permit criteria eligibility for all LAGC scallop permits. 
Applicants would be allowed to dispute the denial of an LAGC permit, or 
contribution factor (based on best year and years active), through the 
eligibility appeals process described below.
3. Confirmation of Permit History (CPH)
    A person who does not currently own a fishing vessel, but who has 
owned a qualifying vessel that has sunk, or been destroyed, or 
transferred to another person, would be required to apply for and 
receive a CPH if the fishing and permit history of such vessel has been 
retained lawfully by the applicant. Such an application would have to 
be made within 90 days of the effective date of the final regulations 
for Amendment 11. The CPH provides a benefit to a vessel owner by 
securing limited access eligibility through a registration system when 
the individual does not currently own a vessel. To be eligible to 
obtain a CPH, the applicant would have to show that the qualifying 
vessel meets the eligibility requirements for the applicable LAGC 
permit, and that all other permit restrictions described below are 
satisfied. Issuance of a valid CPH would preserve the eligibility of 
the applicant to apply for an LAGC permit for a replacement vessel 
based on the qualifying LAGC scallop vessel's fishing and permit 
history at a subsequent time. A CPH would have to be applied for in 
order for the applicant to preserve the LAGC scallop permit eligibility 
of the qualifying vessel.

[[Page 71317]]

Vessel owners who were issued a CPH could obtain a vessel permit for a 
replacement vessel based upon the previous vessel's history that would 
utilize the CPH. IFQ associated with a CPH would count toward a vessel 
owner's overall ownership of IFQ, and would be restricted under the 5-
percent ownership cap.
4. Permit Transfers
    An LAGC scallop permit and fishery history would be presumed to 
transfer with a vessel at the time it is bought, sold, or otherwise 
transferred from one owner to another, unless it is retained through a 
written agreement signed by both parties in the vessel sale or 
transfer.
5. Permit Splitting
    Amendment 11 adopts the permit splitting provision currently in 
effect for other limited access fisheries in the region. Therefore, an 
LAGC scallop permit may not be issued to a vessel if the vessel's 
permit or fishing history has been used to qualify another vessel for a 
limited access permit. This means all limited access permits, including 
LAGC scallop permits, must be transferred as a package when a vessel is 
replaced or sold. However, Amendment 11 explicitly states that the 
permit-splitting provision would not apply to the transfer/sale of 
general category scallop fishing history prior to the implementation of 
Amendment 11, if any limited access permits were issued to the subject 
vessel. Thus, vessel owners who sold vessels with limited access 
permits and retained the general category scallop fishing history with 
the intention of qualifying a different vessel for the LAGC scallop 
permit would be allowed to do so under Amendment 11. This differs from 
the current permit splitting provisions of other limited access fishery 
regulations, and specifically the Atlantic herring limited access 
permit splitting provision recently implemented under Amendment 1 to 
the Atlantic Herring FMP. A vessel with an existing limited access 
scallop permit (i.e., full-time, part-time, or occasional) that also 
qualifies for an LAGC scallop permit could not split the LAGC scallop 
permit from the existing limited access scallop permit.
6. Qualification Restriction
    Consistent with previous limited access programs, no more than one 
vessel would be able to qualify, at any one time, for a limited access 
permit or CPH based on that or another vessel's fishing and permit 
history, unless more than one owner has independently established 
fishing and permit history on the vessel during the qualification 
period and has either retained the fishing and permit history, as 
specified above, or owns the vessel at the time of initial application 
under Amendment 11. If more than one vessel owner claimed eligibility 
for a limited access permit or CPH, based on a vessel's single fishing 
and permit history, the NMFS Regional Administrator would determine who 
is entitled to qualify for the permit or CPH.
7. Appeal of Permit Denial
    Amendment 11 specifies an appeals process for applicants who have 
been denied an LAGC scallop permit. Such applicants would be able to 
appeal in writing to the Regional Administrator within 30 days of the 
denial, and any such appeal would have to be based on the grounds that 
the information used by the Regional Administrator was incorrect.
    The appeals process would allow an opportunity for a hearing before 
a hearing officer designated by the Regional Administrator. The owner 
of a vessel denied an LAGC scallop permit could fish for scallops under 
the applicable general category scallop regulations, provided that the 
denial has been appealed, the appeal is pending, and the vessel has on 
board a letter from the Regional Administrator authorizing the vessel 
to fish under the LAGC scallop permit category. The Regional 
Administrator would issue such a letter for the pendency of any appeal. 
If the appeal was ultimately denied, the Regional Administrator would 
send a notice of final denial to the vessel owner; and the authorizing 
letter would become invalid 5 days after receipt of the notice of 
denial, but no longer than 10 days after the date that the denial 
letter is sent.
8. Vessel Upgrades
    A vessel issued an LAGC scallop permit would not be limited by 
vessel size upgrade restrictions if the owner wished to modify or 
replace the vessel. However, if that vessel has also been issued 
limited access permits under Sec.  648.4 that have upgrade restrictions 
(i.e., all other limited access permits issued in accordance with Sec.  
648.4), the upgrade restrictions for that fishery would apply to any 
modification or replacement, unless the permit with the restrictions 
were permanently relinquished as specified under ``voluntary 
relinquishment of eligibility,'' below.
9. Vessel Baselines
    A vessel's baseline refers to those specifications (length overall, 
gross registered tonnage net tonnage, and horsepower) from which any 
future vessel size change is measured. Because there are no vessel size 
upgrade restrictions, a vessel issued an LAGC scallop permit would not 
have baseline size and horsepower specifications. However, if that 
vessel has also been issued limited access permits under Sec.  648.4 
that have upgrade restrictions, any size change would be restricted by 
those baseline specification requirements, unless those permits were 
permanently relinquished as specified in ``Voluntary relinquishment of 
eligibility'' below.
10. Vessel Replacements
    The term vessel replacement (vessel replacement), in general, 
refers to replacing an existing limited access vessel with another 
vessel. This rule would require that the same entity must own both the 
LAGC scallop vessel (or fishing history) that is being replaced, and 
the replacement vessel. Unlimited upgrades of vessel size and 
horsepower through a vessel replacement would be allowed, unless the 
vessel to be replaced is restricted on upgrades because it has been 
issued other limited access permits pursuant to Sec.  648.4.
11. Ownership Cap
    A vessel issued an IFQ scallop permit could not be allocated more 
than 2 percent of the TAC allocated to the fleet of vessels issued IFQ 
scallop permits. In addition, an individual could not have ownership 
interest in more than 5 percent of the TAC allocated to the fleet of 
vessels issued IFQ scallop permits. The only exceptions to these 
ownership cap provisions are if a vessel's initial contribution factor 
results in the ownership of more than 2 percent of the overall TAC 
initially upon initial application for the IFQ scallop permit, or if 
the vessel owner owns more than 5 percent of the overall TAC initially 
upon initial application for the IFQ scallop permits. This restriction 
would not apply to existing limited access scallop vessels that also 
have been issued an IFQ scallop permit since such vessels are already 
subject to the 5-percent ownership cap for limited access permits and 
because such vessels would not be permitted to transfer IFQ between 
vessels.
12. Voluntary Relinquishment of Eligibility
    A vessel owner could voluntarily exit the LAGC fishery by 
permanently relinquishing the permit. In some

[[Page 71318]]

circumstances, it could allow vessel owners to choose between different 
permits with different restrictions without being bound by the more 
restrictive requirement (e.g., lobster permit holders may choose to 
relinquish their other Northeast Region limited access permits to avoid 
being subject to the reporting requirements associated with those other 
permits). If a vessel's LAGC scallop permit or CPH is voluntarily 
relinquished to the Regional Administrator, no LAGC scallop permit 
could ever be reissued or renewed based on that vessel's permit and 
fishing history.
13. Permit Renewals and CPH Issuance
    A vessel owner must maintain the limited access permit status for 
an eligible vessel by renewing the permits on an annual basis or 
applying for issuance of a CPH. All LAGC scallop permits must be issued 
on an annual basis by the last day of the fishing year for which the 
permit is required, unless a CPH has been issued. However, as a 
condition of the permit, the vessel may not fish for, catch, possess, 
or land, in or from Federal or state waters, any species of fish 
authorized by the permit, unless and until the permit has been issued 
or renewed in any fishing year, or the permit either has been 
voluntarily relinquished or otherwise forfeited, revoked, or 
transferred from the vessel. A complete application for such permits 
must be received no later than 30 days before the last day of each 
fishing year. A CPH does not need to be renewed annually. Once a CPH 
has been issued to an individual who has retained the LAGC scallop 
permit and fishing history of a vessel, it remains valid until it is 
replaced by a vessel permit through the vessel replacement process.
    A vessel's LAGC scallop permit history would be cancelled due to 
the failure to renew, in which case, no LAGC scallop permit could ever 
be reissued or renewed based on that vessel's permit and fishing 
history.
    Amendment 11 would implement a cost recovery program, with the 
payment procedures and details to be established in Framework 19. Under 
the IFQ program, vessels would be required to pay up to 3 percent of 
their revenue from scallop landings to offset the cost of managing, 
enforcing, and implementing the IFQ program, as required by the 
Magnuson-Stevens Act. Failure to pay cost recovery fees by the 
specified due date would result in NMFS action invalidating the IFQ 
scallop permit. If the invalidation of the IFQ scallop permit due to 
failure to pay for cost recovery fees is not resolved in the course of 
the applicable fishing year, no IFQ scallop permit could ever be 
reissued or renewed based on that vessel's permit and fishing history.

Limited Access Scallop Vessels Fishing Under General Category Rules

    A vessel issued one of the existing limited access scallop permits 
(i.e., a full-time, part-time, or occasional scallop permit) may also 
be eligible to be issued a LAGC scallop permit if it meets the 
qualification criteria described above. Such a vessel would be allowed 
to fish under general category regulations when not fishing under the 
scallop DAS or Area Access programs. Existing limited access scallop 
vessels were not required to be issued a general category scallop 
permit. Therefore, to be issued an Incidental or NGOM scallop permit, 
the limited access vessel would have to have been issued a valid 
limited access scallop permit as of November 1, 2004. To be issued the 
IFQ scallop permit, an existing limited access scallop vessel would 
have to have been issued a valid limited access scallop permit during 
the period March 1, 2000, through November 1, 2004, and have documented 
landings of at least 1,000 lb (454 kg) of scallop meats when not 
fishing under the DAS or Area Access programs, as verified by NMFS 
records or documentation through dealer receipts. A limited access 
scallop vessel that does not qualify for a LAGC scallop permit could 
not fish for, possess, or retain scallops when not fishing under the 
scallop DAS and Area Access programs. Limited access scallop vessels 
that also qualify for an IFQ scallop permit would not be permitted to 
transfer IFQ. Therefore, the general category maximum allocation 
restriction or the maximum percentage ownership restriction for general 
category TAC would not apply. The limited access general category 
permit and IFQ scallop permit could not be split from the limited 
access scallop permit.

Allocation of the Total Annual Projected Scallop Catch to the General 
Category Fishery under the IFQ Program

    Once the IFQ program is implemented, 5 percent of the total 
projected annual scallop catch would be allocated to vessels with IFQ 
scallop permits. This would be calculated by taking the total projected 
annual scallop catch, then deducting estimated catch by incidental 
catch general category vessels and the total allowable catch (TAC) in 
the NGOM. Five percent of the resultant catch would then be allocated 
to the IFQ scallop fishery. IFQs for IFQ scallop vessels would be 
derived from the 5-percent TAC allocation. The 5-percent allocation 
would not apply to current limited access vessels that also have IFQ 
scallop permits. Limited access scallop vessels with IFQ scallop 
permits would be allocated 0.5 percent of the total projected annual 
scallop catch after deduction of incidental catch and the NGOM TAC. 
IFQs for these vessels would be derived from the 0.5-percent TAC 
allocation. The remaining 94.5 percent of the total projected annual 
scallop catch, after deduction of incidental catch and the NGOM TAC, 
would be allocated for harvest by the current limited access scallop 
fishery.

IFQs for Limited Access General Category Scallop Vessels

    A vessel issued an IFQ scallop permit would be allocated a 
percentage of the TAC allocated to the IFQ scallop fishery based on the 
vessel's ``contribution factor.'' The contribution factor for each 
vessel would be determined by multiplying a vessel's best fishing year 
of landings during the March 1, 2000, through November 1, 2004, 
qualification period by an index factor based on the number of years 
the vessel was active in the scallop fishery during the qualification 
period. A vessel would be determined to be active in the scallop 
fishery if it landed at least 1 lb (0.45 kg) of scallops. The index 
factors for varying levels of participation during the qualification 
period are: 0.75 for 1year; 0.875 for 2 years; 1.0 for 3 years; 1.125 
for 4 years; and 1.25 for 5 years. The index factor is intended to 
provide more weight in calculating the allocation for vessels that have 
been participating in the general category fishery for a longer period 
of time. A vessel's contribution percentage will be determined by 
dividing its contribution factor by the sum of the contribution factors 
of all vessels issued a limited access general category scallop permit. 
A vessel's IFQ would be determined by multiplying the TAC for IFQ 
scallop vessels by the vessel's contribution percentage. IFQ would be 
issued to owners of CPHs since that vessel's contibution would be 
included in the determination of IFQs as described below. IFQ 
associated with CPHs would be transferable.
    The following is an example of how a vessel's IFQ would be 
determined using hypothetical values: A vessel landed 48,550 lb (22,023 
kg) of scallops in its best year, and was active in the general 
category scallop fishery for 5 years. The vessel's contribution factor 
would be equal to 48,550 lb (22,023 kg)*1.25 = 60,687 lb (27,527 kg). 
For this example, the highest total scallop landings is assumed to be 
3.8 million lb (1,724 mt), and the number of qualifying vessels is 
assumed to be 380. The sum

[[Page 71319]]

of the contribution factors for limited access general category scallop 
vessels is assumed to be 4.18 million lb (1,896 mt). The contribution 
percentage of the above vessel would therefore be 1.45 percent (60,687 
lb (27,527 kg) / 4.18 million lb (1,896 mt) = 1.45 percent). The 
vessel's IFQ would be the vessel's contribution percentage (1.45 
percent) multiplied by the TAC allocated to all IFQ scallop vessels. 
Assuming a TAC equal to 2.5 million lb (1,134 mt), the vessel's IFQ 
would be 36,250 lb (16,443 kg) (1.45 percent x 2.5 million lb (1,134 
mt)).
    The IFQ program cannot be implemented until all IFQ scallop permits 
and CPHs have been issued because the calculation of the IFQ shares 
requires the contribution factors for all qualified IFQ scallop vessels 
to be totaled. However, eligibility, best year, and the contribution 
factor for each vessel would be determined upon initial application for 
a limited access general category scallop permit. This issue is 
discussed under the ``Measures for the transition period to IFQ'' 
description below.

IFQ Transfers

    IFQ scallop vessel and CPH owners would be allowed to transfer IFQ 
on a temporary or permanent basis. A temporary IFQ transfer (or lease) 
would allow one IFQ scallop vessel to combine IFQs to increase fishing 
opportunity for a single fishing year. A permanent IFQ transfer would 
permanently move the IFQ from one vessel to another. Since a permanent 
IFQ transfer would require the vessel to transfer the IFQ scallop 
permit (and any other permits) to the transferee, the transferring 
vessel would not be eligible to enter into an agreement to transfer IFQ 
back to the vessel, unless the vessel replaced another IFQ scallop 
vessel. Each IFQ allocation would have to be transferred in full before 
it is utilized, and a vessel that used IFQ in a fishing year could not 
transfer its IFQ during that fishing year. An IFQ transfer would not be 
approved if it would result in the receiving IFQ scallop vessel having 
a share of more than 2 percent of the total TAC allocation to the IFQ 
fishery. IFQ transfers would not be permitted for existing limited 
access scallop vessels that also have been issued an IFQ scallop 
permit.

IFQ Cost Recovery

    The Magnuson-Stevens Act requires any IFQ program to include a cost 
recovery program, whereby NMFS would collect up to 3 percent of ex-
vessel value of landed product to cover actual costs directly related 
to enforcement and management of an IFQ program. The authority and 
procedures for collection of cost recovery fees would be established in 
this rule. Further details of the cost recovery program will be 
proposed in Framework 19, in which TACs would be established for LAGC 
scallop vessels. As recommended in Amendment 11, the IFQs would be 
rounded up to the nearest 10-lb unit. The cost recovery fee for an IFQ 
that was temporarily transferred to another IFQ scallop vessel would be 
the responsibility of the owner of the transferring IFQ scallop vessel, 
not the owner of the receiving IFQ scallop vessel.

Measures for the Transition Period to IFQ

    Amendment 11 recognizes that it would take between 12 to 24 months 
to determine the universe of qualified vessels that would be issued an 
IFQ scallop permit. The time is necessary to accommodate applicants who 
pursue permits through the appeals process. As a result, it would not 
be possible to implement an IFQ program at the same time that NMFS is 
in the process of determining eligibility and contribution factors. 
Recognizing the problem, Amendment 11 specifies measures for a 
transition period. The transition measures include a quarterly TAC 
equal to 10 percent of the total projected scallop catch. Vessels that 
qualify for an IFQ scallop permit and vessels under appeal for an IFQ 
scallop permit would be authorized to fish for scallops, subject to the 
quarterly TAC, with all landings counted toward the TAC. When the TAC 
is projected to be attained, the general category fishery would close 
for the remainder of the quarter. Any underage or overage of the first 
quarter would be applied to the third quarter, and any underage or 
overage of the second quarter would be applied to the fourth quarter. 
The quarterly TACs for the 2008 fishing year, beginning March 1, 2008, 
will be specified in Framework 19. A quarterly TAC is proposed rather 
than an annual TAC due to concerns about derby fishing. This quarterly 
distribution of TAC is intended to reduce the negative effects of a 
race to take the TAC. The 10-percent allocation would result in a TAC 
that would be consistent with recent projections for scallop mortality 
from the general category fishery and would account for additional 
effort expected from vessels under the appeals process.

Mechanism to Allow Voluntary Sectors in the General Category Fishery

    The proposed action includes a mechanism to allow the owners of IFQ 
scallop vessels to form voluntary sectors that would manage their own 
fishing activity as a group. This rule outlines the procedures that 
would be used to form a sector, and the sector program requirements. 
The sector provision includes: Restrictions on participation; 
definition and requirements for operations plans; specifications for 
the review, approval, and revocation process; allocation of TAC to 
sectors; sector share determination; restrictions on sector membership 
changes; restrictions on interaction between sectors; monitoring and 
enforcement provisions for sectors; a prohibition on trading of 
allocation between sectors; restrictions on vessel movement between 
sectors; a 20-percent maximum total allocation for a single sector. The 
400-lb (181.44-kg) possession limit would be maintained for vessels in 
a sector. The formation of sectors is intended to provide greater 
flexibility for participants and create outcomes that are more socially 
and economically relevant for fishing groups within the biological 
limitations of the fishery (TACs). The 20-percent cap on a sector's 
share of the IFQ is intended to prevent one sector from controlling an 
excessive percentage of the general category allocation. Unlike the 
sector program for the Northeast multispecies fishery, Amendment 11 
would not allow sectors to be exempt from any scallop regulations, 
except that participating vessels would not be restricted by their 
IFQs.

NGOM Scallop Management Area

    The NGOM scallop management area would be waters north of 
42[deg]20' N. Lat. The NGOM scallop management area would be managed 
separately, because the Council concluded that it has unique 
characteristics such as smaller vessels and sporadic fishable resource. 
The NGOM scallop management area would establish scallop fishing 
controls appropriate for the fishery while protecting the resource in 
the area from overharvest, if and when scallops are present in the 
area. Measures include the separate NGOM general category scallop 
permit and qualification criteria; a TAC based on historical landings 
from Federal waters in the NGOM; a possession limit of 200 lb (90.72 
kg) of scallops per trip, with one trip per calendar day allowed; a 
provision that an IFQ vessel fishing in the NGOM scallop management 
area would have scallop landings deducted from its IFQ

[[Page 71320]]

and the NGOM scallop management area TAC; and a prohibition on 
possession of scallops by any vessel, once the NGOM scallop management 
area TAC is harvested. Amendment 11 does not include specific 
restrictions for vessels fishing under scallop DAS in the NGOM, except 
that such vessels could not continue fishing in the NGOM once the TAC 
for the area has been reached.

Monitoring

    All LAGC scallop vessels would be required to install and operate a 
VMS unit and would be required to declare a general category trip or 
other fishing activity code, as appropriate. In addition, IFQ and NGOM 
scallop vessels would be required report scallop landings through VMS. 
This provision would improve monitoring of an IFQ program by requiring 
vessels to report their catch, approximate time of landing, and port of 
landing before crossing the VMS demarcation line in order to enhance 
enforcement of the IFQ program and NGOM scallop fishery. The report 
submitted through VMS would include the VTR serial number, amount of 
scallops on-board, the port of landing, and the approximate time of 
arrival in port. This monitoring requirement would enable NMFS to 
monitor the TAC and IFQs on a more real-time basis.

Change Issuance Date of General Category Permit

    The issuance date of general category permits would be changed from 
May 1 to March 1 of each year to be consistent with the scallop fishing 
year. Synchronizing the issuance of general category scallop permits 
with the scallop fishing year would make this permit consistent with 
the existing limited access scallop permit issuance date.

Other Measures

    This action would clarify that vessels that are fishing under a 
Northeast multispecies or monkfish DAS would not be restricted to the 
144-ft (43.9-m) net sweep restriction at Sec.  648.52 that currently 
specifies that a vessel using a net with a sweep greater than 144 ft 
(43.9 m) cannot fish for, possess, retain, or land more than 40 lb 
(18.14 kg) of shucked or 5 bu (1.76 hL) of in-shell scallops. The 
Council recommended this change because the 144-ft (43.9-m) restriction 
was not intended to apply to vessels fishing for other species that 
would have an incidental catch of scallops, provided the vessel is 
issued the appropriate LAGC scallop permit.
    Amendment 11 proposes to allow an IFQ scallop vessel to possess up 
to 100 bu (35.24 hL) of in-shell scallops seaward of the VMS 
demarcation line only. Once shoreward of the VMS demarcation line, a 
vessel could possess only 50 bu (17.62 hL) of in-shell scallops. This 
measure is proposed because scallop vessel owners and operators 
testified that it often takes more than 50 bu (17.62 hL) of in-shell 
scallops to yield 400 lb (181.44 kg) of scallop meats. NMFS notes that 
similar increases were not specified by the Council for the NGOM 
possession limits of 200 lb (90.72 kg) of shucked or 25 bu (8.8 hL) in-
shell scallops or the 40 lb (18.14 kg) of shucked or 5 bu (1.76 hL) of 
in-shell scallops. However, given the rationale for the increased 
possession limit, it would be inconsistent to apply the increased 
possession limit for only one LAGC scallop permit category or declared 
fishing activity. Therefore, this proposed rule specifies that vessels 
fishing for scallops up to 200 lb (90.72 kg) or 25 bu (8.80 hL), or up 
to 40 lb (18.14 kg) or 5 bu (1.76 hL), could possess up to 50 bu (17.62 
hL) or 10 bu (3.52 hL), respectively, seaward of the VMS Demarcation 
Line.
    Finally, this proposed rule would clarify the ownership cap 
restriction on current limited access vessels specified at Sec.  
648.4(a)(2)(i)(M). The ownership cap restriction was implemented 
through Amendment 4 (59 FR 2757, January 19, 1994). Currently, the 
regulation states that an individual may not own, or have an ownership 
interest in, more than 5 percent of limited access scallop vessels. The 
provision in Amendment 4 is as follows: ``No entity or individual may 
have ownership interest in more than 5 percent of the total number of 
scallop permits issued at implementation and through the appeal 
process.'' However, the current regulations are not clear whether this 
cap applies to CPHs. Provisions for CPH were implemented in 1995 (60 FR 
62224, December 5, 1995), after the 5-percent cap provision in 
Amendment 4 was implemented. The current regulation does not mention 
CPHs, which represent sunken or destroyed vessels, or vessels that were 
sold without fishing and permit history, that are eligible for limited 
access scallop permits. In terms of future ownership, a CPH is 
equivalent to a limited access permit. Since it is clear that the 
Council intended the ownership cap to restrict an owner to having an 
ownership interest in no more than 5 percent of all limited access 
scallop permits, this proposed rule would clarify that an individual 
cannot own more than 5 percent of the limited access permit 
eligibilities in the form of a limited access permit or CPH. This 
clarification would make the regulations consistent with the Council's 
original intent under Amendment 4.
    Public comments are solicited on Amendment 11 and its incorporated 
documents through the end of the comment period, January 29, 2008, 
stated in the NOA for Amendment 11 (72 FR 67691, November 30, 2007). 
Public comments on this proposed rule must be received by January 29, 
2008, the end of the comment period specified in the NOA for Amendment 
11, to be considered in the approval/disapproval decision on the 
amendment. All comments received by January 29, 2008, whether 
specifically directed to Amendment 11 or the proposed rule, will be 
considered in the approval/disapproval decision on Amendment 11. 
Comments received after that date will not be considered in the 
decision to approve or disapprove Amendment 11, but will be responded 
to in the final rule.

Classification

    At this time, NMFS has not determined that the amendment this 
proposed rule would implement is consistent with the national standards 
of the Magnuson-Stevens Fishery Conservation and Management Act and 
other applicable laws. NMFS, in making that determination, will take 
into account the data, views, and comments received during the comment 
period.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    The Council prepared an FSEIS for Amendment 11; an NOA was 
published on October 19, 2007. The FSEIS describes the impacts of the 
proposed Amendment 11 measures on the environment. Since most of the 
measures would determine whether or not fishers can continue fishing 
for scallops, and at what level in the future, the majority of the 
impacts are social and economic. Although the impacts may be negative 
in the short term, particularly at an individual fisher level, the 
long-term benefits of a sustainable scallop fishery would be positive. 
Elimination of the open access fishery is expected to have positive 
impacts on the biological and physical environment.
    This proposed rule contains collection-of-information requirements 
subject to review and approval by OMB under the Paperwork Reduction Act 
(PRA). Public reporting burden for these collections of information are 
estimated to average as follows:
    1. Initial application for an IFQ scallop permit - 30 min per 
response;

[[Page 71321]]

    2. Initial application for an NGOM or Incidental scallop permit - 
15 min per response;
    3. Completion of ownership cap form for IFQ scallop vessel owners - 
5 min per response;
    4. Appeal for an LAGC scallop permit and IFQ scallop vessel 
contribution factor - 2 hr per response;
    5. Application for a vessel replacement or confirmation of permit 
history - 3 hr per response;
    6. Purchase and installation of a VMS unit for general category 
scallop vessels--2 hr per response;
    7. IFQ scallop vessel VMS trip notification requirements--2 min per 
response;
    8. NGOM scallop fishery VMS trip notification requirements--2 min 
per response;
    9. Incidental catch vessel VMS trip notification requirements--2 
min per response;
    10. Pre-landings VMS notification requirements--5 min per response;
    11. Application for an IFQ transfer--10 min per response;
    12. Electronic payment of cost recovery payment--2 hr per response;
    13. LAGC scallop fishery sector applications--150 hr per response; 
and
    14. Sector operations plans--100 hr per response.
    These estimates include the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection information.
    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. Send comments on 
these or any other aspects of the collection of information to the 
Regional Administrator as specified in ADDRESSES above, and by e-mail 
to David--Rostker@omb.eop.gov or fax to (202) 395-7285.
    Notwithstanding any other provision of the law, no person is 
required to respond to, and no person shall be subject to penalty for 
failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB control number.
    An IRFA was prepared, as required by section 603 of the Regulatory 
Flexibility Act (RFA). The IRFA describes the economic impact this 
proposed rule, if adopted, would have on small entities, with data 
analyzed on a fishing year basis (March 1 through February 28/29). A 
description of the action, why it is being considered, and the legal 
basis for this action are contained at the beginning of this section of 
the preamble and in the SUMMARY. A summary of the IRFA follows:

Description and Estimate of Number of Small Entities to Which the Rule 
Would Apply

    The vessels in the Atlantic sea scallop fishery are considered 
small business entities because all of them grossed less than $4.5 
million according to the dealer's data for the 2004 and 2005 fishing 
years. Therefore, there are no differential impacts between large and 
small entities. According to this information, annual total revenue 
averaged about $940,065 per limited access vessel in 2004, and over $1 
million per limited access vessel in 2005. Total revenues per vessel, 
including revenues from species other than scallops, exceeded these 
amounts, but were less than $4.5 million per vessel. Average scallop 
revenue per general category vessel was $35,090 in 2004 and $88,702 in 
2005 fishing years. Average total revenue per general category vessel 
was higher, exceeding $240,000 in 2004 and 2005. According to the 
preliminary estimates, average revenues per vessel were lower in the 
first 11 months of 2006 for all permit categories, because of lower 
scallop landings and prices.
    The measures proposed in Amendment 11 would affect vessels with 
limited access scallop and general category permits. Section 4.4 
(Fishery-related businesses and communities) of the Amendment 11 
document provides extensive information on the number and size of 
vessels and small businesses that will be affected by the proposed 
regulations, by port and state. These affected entities are the owners 
of 318 vessels that were issued full-time permits in 2006, (including 
55 small-dredge and 14 scallop trawl permits); 32 part-time; and 1 
occasional limited access permit. In addition, 2,501 permits were 
issued to vessels in the open access General Category, and more than 
500 of these vessels landed scallops during the last 2 years.

Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    This action contains several new collection-of-information, 
reporting, and recordkeeping requirements. The following describes 
these requirements.
1. Application Process
    NMFS estimates that there would be 500 applicants for an IFQ 
scallop permit, 200 applicants for a NGOM scallop permit, and 500 
applicants for an Incidental scallop permit. Each IFQ scallop permit 
application would take approximately 30 min per application, while each 
NGOM and Incidental scallop permit application would take approximately 
15 min to process. Consequently, the total time burden for the initial 
applications would be 425 hr. Amendment 11 estimates that 370 IFQ 
scallop permit, 190 NGOM scallop permit, and 465 Incidental scallop 
vessels are expected to qualify and consequently renew their 
application each year. Permit renewal is estimated to take 15 min per 
application, on average, for a total burden of 256 hr per year. The 3-
year average total public time burden for IFQ, NGOM, and Incidental 
scallop permit initial applications, and permits renewals would be 312 
hr. The labor cost, at an hourly rate of $15, would be $4,680.
    To implement the 5-percent IFQ ownership cap, vessel owners would 
be required to submit an ownership form with each permit renewal. Since 
there would be an estimated 370 IFQ permits, there would be 370 
ownership forms each year. NMFS estimates that it would take 5 min to 
complete each ownership form; therefore, the annual reporting burden 
would be 31 hr, or 21 hr, averaged over the first 3 years. At an hourly 
rate of $15, the annualized time burden would be approximately $315.
    About 80 applicants are expected to appeal the denial of their 
permit application over the course of the 3-month application period. 
The appeals process is estimated to take 2 hr per appeal, on average, 
for a total burden of 160 hr. The burden of this one-time appeal, 
annualized over three years, would be 54 hr. At an hourly rate of $15, 
the time burden would be approximately $810.

2. Vessel Replacement, Upgrade, and Permit History Applications

    A standard form for vessel replacements, upgrades, and permit 
history applications (RUPH application) would be used for LAGC scallop 
permits, although vessel upgrades would not apply for LAGC scallop 
vessels unless the vessel is issued other limited access fishery 
permits that have upgrade restrictions. With the exception of upgrade 
restrictions, LAGC scallop vessels would be subject to similar 
replacement and permit history

[[Page 71322]]

restrictions as other Northeast Region limited access fisheries. 
Completion of an RUPH application requires an estimated 3 hr per 
response. It is estimated that 100 RUPH applications would be received 
annually. The resultant burden would be up to 300 hr. At an hourly rate 
of $15 per hour, the total public cost burden for RUPH applications 
would be $4,500 per year.

3. New VMS Requirements

    This action would require vessels issued any of the LAGC scallop 
permits to install VMS. Most vessels that qualify for an IFQ scallop 
permit would have been participating in the directed general category 
scallop fishery, which already has VMS requirements prior to the 
implementation of Amendment 11. Therefore, it is likely that most 
vessels that will qualify for an IFQ permit already have VMS. Vessels 
that qualify for an Incidental or NGOM scallop permit would not likely 
be participating in the directed general category scallop fishery. 
However, vessels that qualify for an Incidental or NGOM scallop permit 
may already have VMS reporting requirements through other fisheries, 
particularly the Northeast multispecies fishery. It is possible that 
some new permit holders would decide to purchase and install new VMS 
units in order to participate in one of these fisheries. Therefore, 
NMFS estimates that up to 10 vessels would purchase and install VMS 
units as a result of Amendment 11. NMFS estimates that it would take 2 
hr to purchase each unit, for a total time burden of 20 hr; annualized 
over 3 years, the burden would be about 7 hr per year. NMFS anticipates 
that a vessel owner would hire a VMS technician to install the VMS 
unit; therefore there would be no installation time burden for the 
vessel owner. At an hourly rate of $15 per hour, the total public cost 
burden for VMS purchases would be $105 per unit. Since position polling 
is automated, there is no associated time burden with this reporting 
requirement.

4. Trip Notification Requirements

    Each time a LAGC scallop vessel leaves port or is moved from the 
dock or mooring, the operator must submit a VMS trip declaration code 
to notify NMFS of the vessel's fishing activity.
    According to 2007 VMS trip declaration data for 1B scallop vessels, 
approximately 40 percent of the time general category 1B vessels 
declare a general category scallop trip; the remainder are codes for 
other activities (if a vessel leaves port, general category regulations 
require it to declare a trip, regardless of the fishing activity). The 
2008 scallop harvest specifications have not yet been finalized, but 
the proposed IFQ quota is 2.5 million lb (1,134 mt). Assuming each trip 
harvests the 400-lb (181.4-kg) possession limit, there would be an 
estimated 6,250 IFQ trip declarations per year, with an additional 
9,375 trip declarations for some activity other than scallop fishing, 
for a total of 15,625 trip declarations. Following each trip, NMFS 
assumes that the vessel operator would submit a power-down code to 
reduce polling costs and conserve battery power. NMFS estimates that it 
takes approximately 2 min to submit a trip declaration or power-down 
code. NMFS estimates that the IFQ fleet would submit 31,250 VMS 
declaration codes (15,625 trip declarations and 15,625 corresponding 
power-down code submissions); therefore, the annual IFQ trip 
declaration time burden would be 1,042 hr per year. At an hourly rate 
of $15, this burden would be $15,630.

5. NGOM Notification Requirements

    The proposed NGOM TAC is expected to be 64,000 to 100,030 lb 
(29,030 to 45,373 kg) each year. Assuming each trip lands the 200-lb 
(90.72-kg) possession limit, and using the upper limit of the proposed 
TAC, it is projected that there would be up to 500 NGOM trip 
declarations per year. For economic purposes it is unlikely that a 
vessel owner would incur the cost of a VMS unit solely to have a NGOM 
permit. Therefore, assuming these vessels already have VMS reporting 
requirements for other fisheries, VMS declaration reporting 
requirements for activities other than NGOM activity have already been 
accounted for in other PRA collections. The increased reporting burden 
resulting from the NGOM permit category would be approximately 500 trip 
declarations and 500 power-down declarations. Assuming each declaration 
takes approximately 2 min, the annual NGOM trip declaration time burden 
would be approximately 34 hr. At an hourly rate of $15, this burden 
would be $510.

6. Incidental Scallop Vessel VMS Notification Requirements

    In 2004 and 2005, dealer data indicated that the percent of 
scallops landed in quantities of 40 lb (18.14 kg) or less was 0.02% and 
0.06%, respectively, of the total scallop landings. The average scallop 
landings on these trips in 2004 and 2005 was 19,363 lb (8,783 kg). 
Using this average, NMFS estimates that there were approximately 500 
general category trips that landed scallops incidental to other 
fishing. Assuming this rate would remain approximately the same, there 
would be an estimated 500 Incidental trip declarations made annually. 
As previously noted, for economic purposes it is unlikely that a vessel 
owner would incur the cost of a VMS unit solely to have an Incidental 
scallop permit. Therefore, assuming these vessels already have VMS 
reporting requirements for other fisheries, VMS declaration reporting 
requirements for activities other than Incidental scallop permit 
activity have already been accounted for in other PRA collections. The 
increased reporting burden resulting from the Incidental scallop permit 
category would be approximately 500 trip declarations and 500 power-
down declarations. Assuming each trip declaration takes approximately 2 
min, the annual Incidental scallop trip declaration time burden would 
be approximately 34 hr. At an hourly rate of $15, this burden would be 
$510.

7. Pre-landing Notification Requirements

    VMS pre-landing notification forms would be required for each IFQ 
and NGOM scallop trip. Therefore, there would be 6,250 IFQ and 500 NGOM 
scallop vessel pre-landing notification forms submitted annually. NMFS 
estimates that it would take 5 min for each of the 6,750 reports, for 
an annual pre-landing notification time burden of 563 hr. At an hourly 
rate of $15, this burden would be $8,445.

8. State Waters Exemption Program Requirements

    The state waters exemption program enrollment form is estimated to 
take 5 min to submit through the VMS, the same amount of time as it has 
taken to enroll through interactive voice response system currently 
used. State waters exemption program trip declaration requirements are 
already accounted for in an approved collection under OMB Control No. 
0648-0202. Therefore, this burden would not increase the cost to vessel 
owners declaring into the state waters exemption program.

9. IFQ Transfers

    IFQ transfers would apply to IFQ scallop vessels, except that 
current limited access scallop vessels that also have been issued an 
IFQ scallop permit would not be permitted to transfer IFQ. Using the 
Northeast Region's Northeast Multispecies DAS leasing program (OMB 
Control No. 0648-0475) as a proxy for the response rate for the IFQ 
transfer program, NMFS anticipates that there would be approximately 75 
temporary transfers annually. Each

[[Page 71323]]

application would include information from both parties involved in the 
temporary transfer; therefore there would be two responses per 
application. NMFS estimates that it would take 5 min per response, or 
10 min per temporary IFQ transfer application. Therefore, the estimated 
burden would be 13 hr. At an hourly rate of $15 / hour, the total 
public cost burden for temporary IFQ transfer applications would be 
$195.
    The Northeast Multispecies DAS Permanent Transfer Program cannot be 
easily correlated with the general category permanent transfer program 
because the Northeast Multispecies Program has a 20-percent 
conservation tax on all transfers, while there would be no conservation 
tax on scallop IFQ transfers. Although NMFS anticipates that there 
would be more IFQ transfers than DAS transfers, IFQ transfers would be 
restricted by the requirement that no IFQ vessel owner could have an 
ownership interest in more than 5 percent of the total TAC for IFQ 
scallop vessels, and no vessel could have more than 2 percent of the 
total TAC for IFQ scallop vessels at any time. NMFS anticipates that 
there would be approximately 10 permanent IFQ transfers per year. Each 
application would include information from both parties involved in the 
transfer; therefore there would be two responses per application. It is 
estimated that it would take 5 min per response, or 10 min per 
permanent transfer application. Therefore, the estimated permanent IFQ 
transfer burden would be 2 hr. At an hourly rate of $15 per hour, the 
total public cost burden for permanent quota transfer applications 
would be $30.

10. Cost Recovery

    Since cost recovery for the scallop IFQ program is new, and there 
are no other current cost recovery programs in Northeast Region 
fisheries, the burden per response used by the Alaska Region's Alaska 
Individual Fishing Quota Cost-Recovery Program Requirements (OMB 
Control No. 0648-0398) was used as a proxy for the scallop IFQ program. 
Each IFQ permit holder would be required to submit a cost recovery 
payment once annually, which would take 2 hr per response. Therefore, 
370 payments would take 740 hr. At an hourly rate of $15 / hour, the 
total public cost burden for cost recovery would be $11,100.

11. LAGC Sector Program

    NMFS estimates that there could be up to nine sector proposals 
received over the next three years (2008-2009); five in the first year, 
two in the 2nd year, and two in the 3rd year. The earliest that the 
sectors proposed in the 2008 year could be implemented would be the 
2009 fishing year. Therefore, these sectors would be required to submit 
operation plans for the 2010 fishing year.
    Any person could submit a sector allocation proposal for a group of 
LAGC scallop vessels to the Council at least 1 year in advance of 
anticipated start of a sector program, and request that the sector be 
implemented through a framework procedure specified at Sec.  648.55. 
Based upon consultations with the Northeast multispecies sector 
program, it is estimated it would take 150 hr to prepare and submit a 
sector proposal. Therefore, the 3-year average annualized time burden 
for sector proposals would be 450 hr per year. At an hourly rate of $15 
per hour, the total public cost burden for sector proposals would be 
$6,750.
    A sector is required to resubmit its operations plan to the 
Regional Administrator no later than December 1 of each year, whether 
or not the plan has changed. Based upon consultations with the 
Northeast multispecies sector program, each operations plan takes 
approximately 100 hr. The earliest sector operation plans would be 
submitted in 2010 for the proposals submitted in 2008. Therefore, NMFS 
estimates it would take 500 hr to submit 5 operation plans. The 3-year 
average annualized time burden would be 167 hr per year. At an hourly 
rate of $15 per hour, the annual time burden cost would be 
approximately $2,500.

Economic Impacts of the Proposed Action Compared to Significant Non-
Selected Alternatives

1. Summary of the Combined Economic Impacts of the Limited Access 
Measures
    In summary, the proposed limited access program could have negative 
economic impacts in the short-term on the estimated 373 vessels that 
would not qualify for a LAGC scallop permit, with adverse impacts 
compared to 2005 scallop revenue estimated to be less than 5 percent 
for 119 vessels, 5 to 49 percent for 58 vessels, and 50 percent or more 
for 196 vessels. The measures would also have negative impacts on about 
153 out of 369 vessels that are estimated to qualify for the IFQ 
scallop permit, with adverse impacts compared to 2005 scallop revenue 
estimated to be less than 5 percent for 26 of these vessels, 5 to 50 
percent for 70 vessels, and over 50 percent for 57 vessels. Altogether, 
the proposed measures could reduce total revenues of 381 vessels of 
more than 5 percent in the short-term. There are several measures in 
the proposed action, however, to help mitigate and reduce the potential 
negative impacts on these vessels, as discussed above. Qualifying 
vessels would be permitted to stack allocation up to 2 percent of the 
entire general category allocation and to transfer (i.e., lease or buy) 
IFQ on a permanent or temporary basis. This would enable vessel owners 
who do not receive an adequate amount of allocation to increase their 
scallop revenue to mitigate negative impacts. Furthermore, there is a 
provision to allow the formation of voluntary sectors. It may be 
beneficial for a group of vessels from a fishing community, for 
example, to organize and apply for a sector in the general category 
fishery. Negative impacts on some vessel owners may be mitigated if a 
vessel would qualify for a NGOM scallop permit that authorizes it to 
fish for scallops at a reduced level. In addition, many of the vessels 
that would not qualify for the IFQ scallop permit would qualify for an 
Incidental scallop permit that would authorize the vessel to land up to 
40 lb (18.14 kg) of scallops per trip.
    Continuation of the open access fishery under the no action 
alternative would not guarantee that the affected vessel owners would 
get more scallop revenue than they could with the proposed limited 
access program. With continued open access, there would always be the 
risk of more vessels entering the fishery, with the potential for 
overfishing of the scallop resource. Overfishing would likely cause a 
reduction in landings per unit effort, an increase in fishing costs per 
pound of scallops, and dissipation o