Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea and Aleutian Islands Crab Rationalization Program, 29979-29983 [E8-11539]

Agencies

• DEPARTMENT OF COMMERCE
• National Oceanic and Atmospheric Administration

[Federal Register Volume 73, Number 101 (Friday, May 23, 2008)]
[Rules and Regulations]
[Pages 29979-29983]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-11539]



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Federal Register / Vol. 73, No. 101 / Friday, May 23, 2008 / Rules 
and Regulations

[[Page 29979]]



DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

15 CFR Part 902

50 CFR Part 680

[Docket No. 070718364-8478-03]
RIN 0648-AV19


Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea 
and Aleutian Islands Crab Rationalization Program

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

ACTION: Final rule.

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

SUMMARY: NMFS issues final regulations implementing Amendment 25 to the 
Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner 
Crabs (FMP) and a provision of the Coast Guard and Maritime 
Transportation Act of 2006 (Coast Guard Act) to amend the Crab 
Rationalization Program. Amendment 25 to the FMP satisfies the 
Magnuson-Stevens Fishery Conservation and Management Reauthorization 
Act of 2006 requirement for the Secretary of Commerce to amend the FMP 
to authorize conversion of catcher vessel owner quota shares and 
processor quota shares to newly created converted catcher processor 
owner quota shares. The Secretary approved Amendment 25 on April 12, 
2007. The Coast Guard Act mandates that the Secretary issue processing 
quota shares to Blue Dutch, LLC, under specific conditions. This action 
is necessary to implement Amendment 25 and the Coast Guard Act. This 
action is intended to promote the goals and objectives of the Magnuson-
Stevens Fishery Conservation and Management Act, the Coast Guard Act, 
the FMP, and other applicable law.

DATES: Effective June 23, 2008.

ADDRESSES: Copies of Amendment 25 and the Regulatory Impact Review 
(RIR) for this action may be obtained from the NMFS Alaska Region, P. 
O. Box 21668, Juneau, AK 99802 or from the Alaska Region website at 
https://www.fakr.noaa.gov.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
final rule may be submitted to NMFS at the above address and by e-mail 
to David_Rostker@omb.eop.gov, or fax to 202-395-7285.

FOR FURTHER INFORMATION CONTACT: Glenn Merrill, 907-586-7228, or 
Gretchen Harrington, 907-586-7228.

SUPPLEMENTARY INFORMATION: The king and Tanner crab fisheries in the 
exclusive economic zone of the Bering Sea/Aleutian Islands (BSAI) are 
managed under the FMP. The FMP was prepared by the North Pacific 
Fishery Management Council (Council) under the Magnuson-Stevens Fishery 
Conservation and Management Act (Magnuson-Stevens Act).

Crab Rationalization Program (Program)

    The Consolidated Appropriations Act of 2004 (Pub. L. 108-199, 
section 801) amended the Magnuson-Stevens Act to mandate that the 
Secretary of Commerce implement the Program as recommended by the 
Council. On March 2, 2005, NMFS published a final rule to implement the 
Program (70 FR 10174).
    To implement the Program, NMFS initially issued processing quota 
shares (PQS), catcher vessel owner quota shares (CVO QS), and catcher 
processor owner quota shares (CPO QS) to eligible applicants. NMFS 
issued PQS and QS for nine crab fisheries in the BSAI. In 2006, NMFS 
initially issued Bristol Bay red king crab (Paralithodes camtschaticus) 
and snow crab (Chionoecetes opilio) PQS to the Blue Dutch, LLC, under 
the requirements of section 417 of the Coast Guard Act.
    CVO QS represents an exclusive but revocable privilege that 
authorizes the holder to receive an annual allocation to harvest a 
specific percentage of the total allowable catch (TAC) from a fishery. 
The annual allocations of TACs, in pounds, are referred to as 
individual fishing quotas (IFQs).
    PQS represents an exclusive but revocable privilege to receive 
deliveries of a specific portion of the annual TAC from a fishery. An 
annual allocation of PQS is referred to as individual processing quotas 
(IPQs) and is expressed in pounds of crab. Harvesters holding CVO IFQ 
must deliver a portion of their IFQ to processors with the same amount 
of IPQ available.
    For most crab fisheries, CVO QS and PQS are designated for specific 
geographic regions. Crab harvested with regionally designated CVO QS is 
required to be delivered to a processor in the designated region. 
Likewise, a processor with regionally designated PQS is required to 
accept delivery of and process crab in the designated region. Two 
regional designations were created for the snow crab and Bristol Bay 
red king crab fisheries. The North Region consists of all areas in the 
Bering Sea north of 56[deg]20' N. latitude. The South Region is all 
other areas. The regional designation of CVO QS and PQS preserves the 
historic geographic distribution of landings in the fisheries.
    CPO QS represents an exclusive but revocable privilege to harvest a 
percentage of the TAC and process that crab onboard. Under the Program, 
CPO QS does not have regional designations and is not required to be 
delivered to a processor holding available IPQ.

Coast Guard Act

    Section 417 of the Coast Guard Act (Pub. L. 109-241) contains a 
provision mandating the Secretary of Commerce to issue PQS for the 
Bristol Bay red king crab and the Bering Sea snow crab fisheries to 
Blue Dutch, LLC, under two specific conditions.
    First, NMFS must issue Blue Dutch PQS equal to 0.75 percent of the 
total number of PQS units. NMFS issued an initial administrative 
determination on July 31, 2006, to issue Blue Dutch 3,015,229 units of 
Bristol Bay red king crab PQS and 7,516,253 units of snow crab PQS. 
NMFS assigned a regional designation to the PQS units issued to Blue 
Dutch according to the procedures established in the regulations at 50 
CFR 680.40(b)(2)(iv).
    Second, NMFS must issue IPQ for that PQS whenever the TAC for that 
fishery is more than 2 percent higher than the most recent TAC in 
effect for that

[[Page 29980]]

fishery prior to September 15, 2005. Accordingly, NMFS determined that 
it will issue Bristol Bay red king crab IPQ to Blue Dutch when the TAC 
for that fishery is greater than 15,732,480 lb (7,136.1 mt). NMFS will 
issue snow crab IPQ to Blue Dutch when the TAC for that fishery is 
greater than 21,350,640 lb (9,684.5 mt).
    This final rule specifies in regulations the statutory thresholds 
for annually issuing IPQ to Blue Dutch and prohibits the transfer of 
the PQS units issued under the provisions of the Coast Guard Act.

Amendment 25

    Section 122(a) of the Magnuson-Stevens Fishery Conservation and 
Management Reauthorization Act of 2006 (MSRA, Pub. L. 109-479) requires 
the Secretary of Commerce, not later than 90 days after the date of 
enactment of that act, to amend the FMP to modify the Program to 
authorize conversion of North CVO QS and North PQS to newly created 
converted CPO QS.
    Amendment 25 to the FMP complies with MSRA by amending the FMP to 
include the statutory language from section 122(a) that authorizes an 
eligible entity and its affiliates to combine North PQS and North CVO 
QS and exchange these shares for newly created converted CPO QS.
    NMFS published the notice of availability for Amendment 25 on 
February 5, 2007 (72 FR 5255), with a public comment period that closed 
on April 6, 2007. NMFS received one public comment on Amendment 25. The 
Secretary of Commerce approved Amendment 25 on April 12, 2007. NMFS 
published the proposed rule for this action on February 15, 2008 (73 FR 
8838), with a public comment period that closed on March 17, 2008. NMFS 
received no public comments on the proposed rule.
    To implement Amendment 25, this final rule authorizes two types of 
quota share conversions and defines the entities eligible to make those 
conversions.
    First, an eligible entity holding PQS, along with its affiliates, 
can combine its North CVO QS for Bristol Bay red king crab or snow crab 
with its North PQS for that fishery and exchange these shares for 
converted CPO QS on an annual basis. Entities can do this under the 
following two conditions: (1) If NMFS initially issued the entity both 
CPO QS and PQS under the Program, and that PQS, in combination with the 
PQS of its affiliates, is less than 7 percent of the total PQS pool for 
that year; or (2) if NMFS initially issued the entity CPO QS under the 
Program and PQS under the Coast Guard Act. An eligible entity would be 
limited to converting only the PQS that it, along with its affiliates, 
was initially issued by NMFS.
    Second, an eligible entity holding CVO QS, along with its 
affiliates, can combine its North PQS for Bristol Bay red king crab or 
snow crab with its North CVO QS for that fishery and exchange these 
shares for converted CPO QS on an annual basis. The only entity that 
can do this would be an entity to which NMFS initially issued CPO QS 
and PQS under the Program, and that PQS, in combination with the PQS of 
its affiliates, is more than 7 percent of the total PQS pool for that 
year. This eligible entity is limited to converting only the CVO QS 
that it, along with its affiliates, was initially issued by NMFS.
    According to the NMFS Official Record, three individual entities 
are eligible for these new provisions. Yardarm Knot, Inc., and Blue 
Dutch, LLC, would be eligible for the first type of conversion. Trident 
Seafoods, Inc., would be eligible for the second type of conversion. 
These entities may elect on an annual basis whether to receive 
converted CPO QS and the amount of North CVO QS and North PQS they wish 
to convert by completing the annual application for converted CPO QS/
IFQ permit and submitting that application along with the annual 
application for crab IFQ/IPQ permit. NMFS must receive the applications 
by August 1 for that crab fishing year.
    Entities applying for a converted CPO QS permit and resulting CPO 
IFQ will be required to provide information on any person who is 
affiliated, as the term ``affiliation'' is defined at Sec.  680.2, to 
that entity and indicate the amount of PQS and CVO QS in either the 
Bristol Bay red king crab or snow crab QS fishery with a North Region 
designation for issuance as converted CPO QS. The MSRA does not 
specifically define which fisheries are subject to this provision. 
However, under this final rule, converted CPO QS will be created for 
only the snow crab and Bristol Bay red king crab fisheries because 
these were the only fisheries for which the eligible entities were 
initially issued North PQS and North CVO QS.
    The final rule specifies a number of provisions for converted CPO 
QS/IFQ to conform with section 122(a) of the MSRA and the Program's 
implementing regulations. Converted CPO QS and the resulting CPO IFQ 
would not be transferable. This restriction on transfers is consistent 
with the MSRA eligibility standards for which entities are eligible to 
receive converted CPO QS. However, the final rule provides that CPO IFQ 
derived from converted CPO QS may be issued to a cooperative.
    The final rule specifies that (1) eligible entities would receive 
one unit of North CPO QS in exchange for one unit of North CVO QS and 
0.9 units of North PQS and (2) the amount of IFQ derived from the 
converted CPO QS issued to each entity could not exceed one million 
pounds per fishery during any calendar year.
    Additionally, the final rule would implement the area of validity 
described in section 122(a)(4) of the MSRA by requiring that any crab 
harvested under a CPO IFQ permit derived from converted CPO QS must be 
offloaded in the North Region.
    Converting PQS and CVO QS to converted CPO QS will allow entities 
to harvest and process crab onboard a catcher processor. Conversion may 
reduce each eligible entity's operating costs associated with 
purchasing crab, processing crab on land or at a stationary floating 
crab processor, and complying with the Program's arbitration system. 
NMFS can not predict the amount of converted CPO QS that would be 
annually issued because the participants annually elect to exercise 
this provision and need not request conversion of all CVO QS and PQS 
held.
    Sections 122(b) and (c) of the MSRA include additional requirements 
for fees and off-loading for converted CPO QS; however, the statute 
does not require the Secretary of Commerce to implement these 
requirements and therefore they are not part of Amendment 25 and will 
not be implemented by Federal rulemaking. Section 122(b) of the MSRA 
requires the holder of converted CPO QS to pay a fee of five percent of 
the ex-vessel value of the crab harvested with those shares to any 
local governmental entities in the North Region, if the PQS used to 
produce the converted CPO QS was originally derived from the processing 
activities that occurred in a community under the jurisdiction of those 
local governmental entities. Section 122(c) of the MSRA allows the 
State of Alaska to collect from the holder of the converted CPO QS a 
fee of one percent of the ex-vessel value of the crab harvested with 
those shares. Additionally, section 122(c) of the MSRA specifies that 
crab harvested with converted CPO QS shall be off-loaded in those 
communities receiving the local governmental entity's fee revenue.
    Section 122(d) of the MSRA also provides that, as part of its 
periodic review of the Program, the North Pacific Fishery Management 
Council may review the effects on communities in

[[Page 29981]]

the North Region of allowing the conversion to CPO QS. Under this 
section, if the Council determines that Amendment 25 adversely affects 
the communities, the Council may recommend to the Secretary of 
Commerce, and the Secretary may approve, changes to the Program 
necessary to mitigate those adverse effects. The MSRA does not require 
the Secretary of Commerce to implement this requirement and therefore 
it is not part of Amendment 25 and will not be implemented by Federal 
rulemaking.
    Section 122(e) of the MSRA requires an additional FMP amendment and 
rulemaking to modify the use caps for processing North Region snow 
crab. Under this section, custom processing arrangements do not count 
against any use cap for the processing of snow crab in the North Region 
by a shore-based crab processor. NMFS issued an enforcement policy on 
January 19, 2007, that provides guidance to the industry on NMFS' 
enforcement and interpretation of this section, which is effective 
until superseded by future rulemaking. At its December meeting, the 
Council adopted Amendment 27 to the FMP that would implement this MSRA 
provision. NMFS intends to publish a proposed rule for Amendment 27 in 
the spring of 2008.

Changes from the Proposed Rule

    NMFS made a few changes to the proposed regulatory text in this 
final rule to clarify regulatory language or correct minor mistakes in 
the proposed rule.
    NMFS modified the regulations describing the information that is 
required to be submitted in the annual application for a converted CPO 
QS/IFQ permit. These changes provide additional clarity to the public 
and do not substantively modify the information that is required to be 
submitted. First, NMFS modified regulations in Sec.  
680.4(n)(2)(iii)(B) to clarify the phrase ``that person'' referred to 
in this paragraph refers to ``the affiliate'' of either Entity A or B. 
This change provides clarity to the affiliate of Entity A of B in the 
application. Second, NMFS modified regulations in Sec.  
680.4(n)(2)(iv)(C) to clarify that in the annual application for 
converted CPO QS/IFQ permit the amount of CVO QS that may be designated 
for conversion to CPO QS must have been initially issued to the 
affiliate of Entity C. This change is consistent with regulations in 
Sec.  680.40(c)(5)(vi)(C) and section 122(a) of the MSRA that clearly 
limit the amount of CVO QS that may be assigned for conversion to CPO 
QS to the amount of CVO QS initially issued to Entity C and any 
affiliates of Entity C. This change provides clarity to the affiliate 
of Entity C in the application. Third, NMFS modified regulations in 
Sec.  680.4(n)(2)(iv)(C) to clarify the phrase ``that person'' referred 
to in this paragraph refers to ``the affiliate'' of Entity C. This 
change provides clarity to the affiliate of Entity C in the 
application. Other minor editorial changes were made throughout the 
rule that NMFS determine have no substantive effect.

Classification

    The Acting Administrator, Alaska Region, NMFS, determined that the 
FMP Amendment 25 is necessary for the conservation and management of 
the BSAI crab fisheries and that it is consistent with the Magnuson-
Stevens Fishery Conservation and Management Act and other applicable 
laws.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    An Environmental Impact Statement/Regulatory Impact Review/Initial 
Regulatory Flexibility Analysis/Social Impact Assessment was prepared 
for the Program that describes the management background, the purpose 
and need for the Program, the management alternatives, and the 
environmental, social, and economic impacts (see ADDRESSES). With this 
final rule, NMFS is continuing to implement the Program.
    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration during the proposed rule stage that this action would 
not have a significant economic impact on a substantial number of small 
entities. The factual basis for the certification was published in the 
proposed rule and is not repeated here. No comments were received 
regarding this certification. As a result, a regulatory flexibility 
analysis was not required and none was prepared.
    A Regulatory Impact Review was prepared to assess all costs and 
benefits of available regulatory alternatives. The Regulatory Impact 
Review describes the potential size, distribution, and magnitude of the 
economic impacts that this action may be expected to have. Copies of 
the RIR prepared for this rule are available from NMFS (see ADDRESSES).

Small Entity Compliance Guide

    NMFS has posted a small entity compliance guide on the Internet at 
https://www.fakr.noaa.gov/sustainablefisheries/crab/crfaq.htm to satisfy 
the Small Business Regulatory Enforcement Fairness Act of 1996, which 
requires a plain language guide to assist small entities in complying 
with this rule. Contact NMFS to request a hard copy of the guide (see 
ADDRESSES).

Collection-of-Information

    This final rule contains a collection-of-information requirement 
subject to the Paperwork Reduction Act (PRA) and which has been 
approved by OMB under Control Number 0648-0576. Public reporting burden 
for annual application for converted CPO QS and CPO IFQ permit is 
estimated to average 30 minutes or 0.5 hours per individual response, 
including the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and completing and 
reviewing the collection of information. Send comments regarding this 
burden estimate or any other aspect of this data collection, including 
suggestions for reducing the burden, to NMFS (see ADDRESSES) 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.

List of Subjects

15 CFR Part 902

    Recordkeeping and reporting requirements.

50 CFR Part 680

    Alaska, Fisheries, Recordkeeping and reporting requirements.

    Dated: May 16 2008.
Samuel D. Rauch III
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

0
For the reasons set out in the preamble, NMFS amends 15 CFR part 902 
and 50 CFR part 680 as follows:



TITLE 15--[AMENDED]

CHAPTER IX

PART 902--NOAA INFORMATION COLLECTION REQUIREMENTS UNDER THE 
PAPERWORK REDUCTION ACT: OMB CONTROL NUMBERS

0
1. The authority citation for part 902 continues to read as follows:

    Authority: 44 U.S.C. 3501 et seq.

0
2. In Sec.  902.1, the table in paragraph (b) under the entry ``50 
CFR'':

[[Page 29982]]

0
a. Remove the entry for ``680.4''; and
0
b. Add new entries for ``680.4(a), (b)(2), and (c) through (m)'', 
``680.4(b)(1)'', and ``680.4(b)(3) and (n)'' in alphanumeric order to 
read as follows:


Sec.  902.1  OMB control numbers assigned pursuant to the Paperwork 
Reduction Act.

* * * * *
    (b) * * *

------------------------------------------------------------------------
                                                  Current OMB control
  CFR part or section where the information    number (all numbers begin
      collection requirement is located               with 0648-)
------------------------------------------------------------------------
* * * * * * *
------------------------------------------------------------------------
50 CFR
------------------------------------------------------------------------
* * * * * * *
------------------------------------------------------------------------
680.4(a), (b)(2), and (c) through (m)          -0514
------------------------------------------------------------------------
680.4(b)(1)                                    -0514, -0576
------------------------------------------------------------------------
680.4(b)(3) and (n)                            -0576
------------------------------------------------------------------------
* * * * * * *
------------------------------------------------------------------------



TITLE 50--[AMENDED]

CHAPTER VI

PART 680--SHELLFISH FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF 
ALASKA

0
3. The authority citation for 50 CFR part 680 is revised to read as 
follows:

    Authority: 16 U.S.C. 1862; Pub. L. 109-241; Pub. L. 109-479.

0
4. In Sec.  680.2, add the definition of ``Converted CPO QS'' in 
alphabetical order to read as follows:


Sec.  680.2  Definitions.

* * * * *
    Converted CPO QS means CPO QS for the BBR and BSS crab QS fisheries 
that is issued to the entities defined in Sec.  680.40(c)(5)(ii), 
(c)(5)(iii), or (c)(5)(iv) based on the procedures established in Sec.  
680.40(c)(5).
* * * * *

0
5. In Sec.  680.4, revise paragraph (b)(1) and add paragraphs (b)(3) 
and (n) to read as follows:


Sec.  680.4  Permits.

* * * * *
    (b) * * *
    (1) Crab QS is issued by the Regional Administrator to persons who 
qualify for an initial allocation under Sec.  680.40 or receive QS by 
transfer under Sec.  680.41. Once issued, a crab QS permit is valid 
until modified under paragraph (b)(2) or (b)(3) of this section, or by 
transfer under Sec.  680.41; or until the permit is revoked, suspended, 
or modified pursuant to Sec.  679.43 of this chapter or under 15 CFR 
part 904. To qualify for a crab QS permit, the applicant must be a U.S. 
citizen.
* * * * *
    (3) A converted CPO QS permit is valid until the end of the crab 
fishing year for which the permit is issued.
* * * * *
    (n) Contents of annual application for converted CPO QS/IFQ permit. 
(1)(i) A complete application must be received by NMFS no later than 
August 1 of the crab fishing year for which a person or crab harvesting 
cooperative is applying to receive converted CPO QS and the IFQ derived 
from that converted CPO QS. If a complete application is not received 
by NMFS by this date, that person or crab harvesting cooperative will 
not receive converted CPO QS and the IFQ derived from that converted 
CPO QS for that crab fishing year.
    (ii) To receive converted CPO QS/IFQ this application must be 
accompanied by a timely and complete application for crab IFQ/IPQ 
described at paragraph (f) of this section or a timely and complete 
application for a crab harvesting cooperative IFQ permit described at 
paragraph (m) of this section.
    (2) For the application to be considered complete, all fees 
required by NMFS must be paid, and any EDR required under Sec.  680.6 
must be submitted to the DCA. In addition, the applicant must include 
the following information (see paragraphs (n)(2)(i) through (v) of this 
section):
    (i) Entity identification. Indicate the entity (Entity A, B, or C) 
described in Sec.  680.40(c)(5)(ii) through (c)(5)(iv) for which you 
are applying to receive converted CPO QS.
    (ii) Applicant information. Enter applicant's name and NMFS Person 
ID; applicant's permanent business mailing address and any temporary 
mailing address the applicant wishes to use; and applicant's business 
telephone number, facsimile number, and e-mail address.
    (A) For Entity A or B:
    (1) Identify the amount of CVO QS in either the BBR or BSS crab QS 
fishery with a North Region designation for issuance as converted CPO 
QS; and
    (2) Identify the amount of PQS in either the BBR or BSS crab QS 
fishery initially issued to you by NMFS with a North Region designation 
for issuance as converted CPO QS.
    (B) For Entity C:
    (1) Identify the amount of CVO QS in either the BBR or BSS crab QS 
fishery initially issued to you by NMFS with a North Region designation 
for issuance as converted CPO QS; and
    (2) Identify the amount of PQS in either the BBR or BSS crab QS 
fishery with a North Region designation for issuance as converted CPO 
QS.
    (iii) Affiliate information for Entities A and B. (A) For Entities 
A and B described in Sec.  680.40(c)(5)(ii) and (c)(5)(iii), indicate 
the permanent business mailing address and any temporary mailing 
address, business telephone number, facsimile number, and e-mail 
address of any person who is affiliated with you based on information 
provided in an annual application for IFQ/IPQ that is approved by the 
Regional Administrator for that crab fishing year
    (B) Indicate the amount of PQS in either the BBR or BSS crab QS 
fishery initially issued to that person with a North Region designation 
for issuance as converted CPO QS.
    (C) Indicate the amount of CVO QS in either the BBR or BSS crab QS 
fishery with a North Region designation held by the affiliate for 
issuance as converted CPO QS.
    (iv) Affiliate information for Entity C. (A) For Entity C described 
in Sec.  680.40(c)(5)(iv), indicate the permanent business mailing 
address and any temporary mailing address, business telephone number, 
facsimile number, and e-mail address of any person who is affiliated 
with you based on information provided in an annual application for 
IFQ/IPQ that is approved by the Regional Administrator for that crab 
fishing year.
    (B) Indicate the amount of PQS in either the BBR or BSS crab QS 
fishery with a North Region designation for issuance as converted CPO 
QS.
    (C) Indicate the amount of CVO QS in either the BBR or BSS crab QS 
fishery initially issued to the affiliate with a North Region 
designation for issuance as converted CPO QS.
    (v) Certification of applicant and affiliates. The applicant and 
any persons who are affiliated with the applicant and named on the 
application must sign and date the application certifying that all 
information is true, correct, and complete to the best of his/her 
knowledge and belief. If the application is completed by an authorized 
representative, proof of authorization must accompany the application.

0
6. In Sec.  680.7, add paragraph (c)(6) to read as follows:


Sec.  680.7  Prohibitions.

* * * * *
    (c) * * *
    (6) For any person who is not an entity defined in Sec.  
680.40(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) to:

[[Page 29983]]

    (i) Hold converted CPO QS.
    (ii) Use the CPO IFQ derived from that converted CPO QS outside of 
a crab harvesting cooperative.
* * * * *

0
7. In Sec.  680.40, add paragraphs (c)(5), (c)(6), (e)(3), and (j)(4) 
to read as follows:


Sec.  680.40  Quota Share (QS), Processor QS (PQS), Individual Fishing 
Quota (IFQ), and Individual Processor Quota (IPQ) issuance.

* * * * *
    (c) * * *
    (5) Issuance of converted CPO QS. (i) For each crab fishing year, 
the Regional Administrator may issue converted CPO QS for the BBR or 
BSS crab QS fishery with a North Region designation to an entity 
described in paragraph (c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) of this 
section if NMFS has approved an application for converted CPO QS/IFQ 
for that crab fishing year.
    (ii) Entity A is comprised only of Yardarm Knot, Inc. (NMFS ID 
 675).
    (iii) Entity B is comprised only of Blue Dutch, LLC (NMFS ID 
 3163).
    (iv) Entity C is comprised only of Trident Seafoods, Inc. (NMFS ID 
 8184).
    (v) NMFS will issue Entity A, B, or C, described in paragraphs 
(c)(5)(ii) through (c)(5)(iv) of this section, one unit of converted 
CPO for each unit of CVO QS and 0.9 units of PQS indicated in an 
approved application for converted CPO QS/IFQ.
    (vi) For each crab fishing year, the Regional Administrator will 
not issue CPO QS for the BBR or BSS crab QS fishery:
    (A) To Entity A described in paragraph (c)(5)(ii) of this section 
that is greater than the amount of converted CPO QS that may be derived 
from the amount of PQS units with a North Region designation initially 
issued by NMFS to Yardarm Knot, Inc. (NMFS ID  675), and any 
affiliates of Yardarm Knot, Inc., as listed on an annual application 
for converted CPO QS/IFQ for that crab fishing year;
    (B) To Entity B described in paragraph (c)(5)(iii) of this section 
that is greater than the amount of converted CPO QS that may be derived 
from the amount of PQS units with a North Region designation initially 
issued by NMFS to Blue Dutch, LLC, (NMFS ID  3163) under 
paragraph (e)(3) of this section and any affiliates of Blue Dutch, LLC, 
as listed on an annual application for annual application for converted 
CPO QS/IFQ for that crab fishing year; and
    (C) To Entity C described in paragraph (c)(5)(iv) of this section 
that is greater than the amount of converted CPO QS that may be derived 
from the amount of CVO QS units with a North Region designation 
initially issued by NMFS to Trident Seafoods, Inc. (NMFS ID  
8184), and any affiliates of Trident Seafoods, Inc., as listed on an 
annual application for converted CPO QS/IFQ for that crab fishing year;
    (vii) CPO IFQ derived from converted CPO QS may be issued to a crab 
harvesting cooperative only if the entity described in paragraph 
(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) of this section holding the 
converted CPO QS is a member of that crab harvesting cooperative.
    (6) Offloading requirements for CPO IFQ derived from converted CPO 
QS. Any crab harvested under a CPO IFQ permit derived from converted 
CPO QS must be offloaded in the Bering Sea subarea north of 56[deg]20' 
N. lat.
* * * * *
    (e) * * *
    (3) PQS issued to Blue Dutch, LLC. (i) Pursuant to Public Law 109-
241, NMFS issued 3,015,229 units of PQS for the BBR crab QS fishery and 
7,516,253 units of PQS for the BSS crab QS fishery.
    (ii) PQS units issued to Blue Dutch, LLC, under paragraph (e)(3)(i) 
of this section were assigned a regional designation according to the 
procedures established in paragraph (b)(2)(iv) of this section.
    (iii) PQS units issued to Blue Dutch, LLC, under paragraph 
(e)(3)(i) of this section may not be transferred to any other person.
* * * * *
    (j) * * *
    (4) IPQ issued to Blue Dutch, LLC--(i) BBR IPQ. For each crab 
fishing year that the total allowable catch for BBR CR crab is greater 
than 15,732,480 lb (7,136.2 mt), NMFS will issue IPQ for the 3,015,229 
units of PQS issued to Blue Dutch, LLC, pursuant to Public Law 109-241.
    (ii) BSS IPQ. For each crab fishing year that the total allowable 
catch for BSS CR crab is greater than 21,350,640 lb (9,684.6 mt), NMFS 
will issue IPQ for the 7,516,253 units of PQS issued to Blue Dutch, 
LLC, pursuant to Public Law 109-241.
* * * * *

0
8. In Sec.  680.41:
0
a. Paragraphs (c)(1)(iv) through (c)(1)(vi) are redesignated as 
paragraphs (c)(1)(vi) through (c)(1)(viii), respectively.
0
b. New paragraphs (c)(1)(iv) and (c)(1)(v) are added.
0
c. Paragraph (c)(1)(i) is revised.
    The additions and revision read as follows:


Sec.  680.41  Transfer of QS, PQS, IFQ, and IPQ.

* * * * *
    (c) * * *
    (1) * * *

------------------------------------------------------------------------
                                                        Eligibility
        Quota type             Eligible person          requirements
------------------------------------------------------------------------
(i) PQS not issued under    Any person             None.
 Sec.   680.40(e)(3)(i)
------------------------------------------------------------------------
* * * * * * *               .....................  .....................
------------------------------------------------------------------------
(iv) Converted CPO QS       N/A                    Converted CPO QS may
                                                    not be transferred.
------------------------------------------------------------------------
(v) CPO IFQ derived from    N/A                    CPO IFQ derived from
 Converted CPO QS                                   Converted CPO may
                                                    not be transferred.
------------------------------------------------------------------------
* * * * * * *               .....................  .....................
------------------------------------------------------------------------

* * * * *

0
9. In Sec.  680.42, paragraph (a)(5) is revised, and paragraph (a)(7) 
is added to read as follows:


Sec.  680.42  Limitations on use of QS, PQS, IFQ, and IPQ.

    (a) * * *
    (5) IFQ that is used by a crab harvesting cooperative is not 
subject to the use caps in this paragraph (a) except as provided for in 
paragraph (a)(7) of this section.
* * * * *
    (7) In a calendar year, an entity as described in Sec.  
680.40(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv), may not use more than 
1,000,000 lb (453.6 mt) of IFQ derived from converted CPO QS in the BBR 
or BSS crab QS fisheries.
* * * * *
[FR Doc. E8-11539 Filed 5-22-08; 8:45 am]
BILLING CODE 3510-22-S