Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea and Aleutian Islands Crab Rationalization Program; Amendment 37, 35781-35786 [2011-15324]
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Federal Register / Vol. 76, No. 118 / Monday, June 20, 2011 / Rules and Regulations
(a)(1)(i) of this section that landed less
than 1,212,673 lb (550 mt), in raw
weight equivalents, of Bering Sea snow
crab, and had 20 or more legal landings
of pollock harvested from the GOA
between January 1, 1996, and December
31, 2000; and
(ii) Any LLP license that:
(A) Was initially issued based on the
catch history of a vessel meeting the
criteria in paragraph (a)(4)(i) of this
section; and
(B) Did not generate crab QS based on
legal landings from any vessel other
than the vessel meeting the criteria in
paragraph (a)(4)(i) of this section.
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(d) Determination of GOA groundfish
sideboard ratios. Except for fixed-gear
sablefish, sideboard ratios for each GOA
groundfish species, species group,
season, and area for which annual
specifications are made are established
according to the following formulas:
*
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(2) Pollock. The sideboard ratios for
pollock are calculated by dividing the
aggregate retained catch of pollock by
vessels that are subject to sideboard
directed fishing closures under
paragraph (a)(1) of this section and that
do not meet the criteria in paragraph
(a)(4) of this section by the total retained
catch of pollock by all groundfish
vessels between 1996 and 2000.
(3) Groundfish other than Pacific cod
and pollock. The sideboard ratios for
groundfish species and species groups
other than Pacific cod and pollock are
calculated by dividing the aggregate
landed catch by vessels subject to
sideboard directed fishing closures
under paragraph (a)(1) of this section by
the total landed catch of that species by
all groundfish vessels between 1996 and
2000.
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[FR Doc. 2011–15284 Filed 6–17–11; 8:45 am]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 680
[Docket No. 100723308–1315–02]
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RIN 0648–BA11
Fisheries of the Exclusive Economic
Zone Off Alaska; Bering Sea and
Aleutian Islands Crab Rationalization
Program; Amendment 37
National Marine Fisheries
Service (NMFS), National Oceanic and
AGENCY:
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Atmospheric Administration (NOAA),
Commerce.
ACTION: Final rule.
NMFS issues regulations to
implement Amendment 37 to the
Fishery Management Plan for Bering
Sea/Aleutian Islands King and Tanner
Crabs (FMP). This action amends the
Bering Sea/Aleutian Islands Crab
Rationalization Program by establishing
a process for eligible contract signatories
to request that NMFS exempt holders of
West-designated individual fishing
quota (IFQ) and individual processor
quota (IPQ) in the Western Aleutian
Islands golden king crab fishery from
the West regional delivery requirements.
Federal regulations require Westdesignated golden king crab IFQ to be
delivered to a processor in the West
region of the Aleutian Islands with an
exact amount of unused Westdesignated IPQ. However, sufficient
processing capacity may not be
available each season. This rule is
necessary to prevent disruption to the
Western Aleutian Islands golden king
crab fishery, while providing for the
sustained participation of
municipalities in the region. This action
is intended to promote the goals and
objectives of the Magnuson-Stevens
Fishery Conservation and Management
Act, the FMP, and other applicable law.
DATES: Effective July 20, 2011.
ADDRESSES: Electronic copies of
Amendment 37 to the FMP, the
Regulatory Impact Review (RIR), the
Final Regulatory Flexibility Analysis
(FRFA), the Small Entity Compliance
Guide, and the Categorical Exclusion
prepared for this final action may be
obtained from https://
www.regulations.gov or from the Alaska
Region Web site at https://
alaskafisheries.noaa.gov. The
Environmental Impact Statement, RIR,
FRFA, and Social Impact Assessment
prepared for the Crab Rationalization
Program are available from the NMFS
Alaska Region Web site at https://
alaskafisheries.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, e-mailed to
OIRA_Submission@omb.eop.gov, or
faxed to 202–395–7285.
FOR FURTHER INFORMATION CONTACT:
Seanbob Kelly, 907–586–7228.
SUPPLEMENTARY INFORMATION: The king
and Tanner crab fisheries in the
exclusive economic zone of the Bering
Sea and Aleutian Islands (BSAI) are
managed under the FMP. The FMP was
SUMMARY:
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prepared by the North Pacific Fishery
Management Council (Council) under
the Magnuson-Stevens Fishery
Conservation and Management Act
(Magnuson-Stevens Act) as amended by
the Consolidated Appropriations Act of
2004 (Pub. L. 108–199, section 801).
This final rule implements
Amendment 37 to the FMP. In April
2010, the Council recommended
Amendment 37 to the Secretary of
Commerce. NMFS published a Notice of
Availability of this amendment in the
Federal Register on February 1, 2011
(76 FR 5556), with comments invited
through April 4, 2011. NMFS published
the proposed rule for this action on
February 25, 2011 (76 FR 8700), with
comments invited through April 1,
2011. NMFS approved Amendment 37
on April 25, 2011. NMFS received three
unique comment letters during the
public comment period for Amendment
37 and the proposed rule; however,
these comments did not result in any
modification to the proposed regulation
text. These comments are discussed in
greater detail below.
Background
Amendments 18 and 19 amended the
FMP to include the Bering Sea/Aleutian
Islands Crab Rationalization Program
(Program). Regulations implementing
the Program are located at 50 CFR part
680. NMFS established the Program as
a catch share program for nine crab
fisheries in the BSAI. The IFQ portion
of the Program assigned quota share
(QS) to persons based on their historic
participation in one or more of these
nine BSAI crab fisheries during a
specific time period. Under the
Program, NMFS issued four types of QS:
Catcher vessel owner (CVO) QS was
assigned to holders of License
Limitation Program (LLP) licenses who
delivered their catch onshore or to
stationary floating crab processors;
catcher/processor vessel owner QS was
assigned to LLP holders that harvested
and processed their catch at sea;
captains and crew onboard catcher/
processor vessels were issued catcher/
processor crew QS; and captains and
crew onboard catcher vessels were
issued catcher vessel crew QS. Each
year, a person who holds QS may
receive IFQ, which represents an
exclusive harvest privilege for a portion
of the annual total allowable catch
(TAC). Under the program, QS holders
can form cooperatives to pool the
harvest of the IFQ on fewer vessels to
minimize operational costs.
NMFS also issued processor quota
share (PQS) under the Program. Each
year, PQS yields an exclusive privilege
to receive for processing a portion of the
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IFQ in each of the nine BSAI crab
fisheries. This annual exclusive
processing privilege is called IPQ. A
portion of the QS issued yields IFQ that
is required to be delivered to a processor
with a like amount of unused IPQ. IFQ
derived from CVO QS is subject to
annual designation as either Class A IFQ
or Class B IFQ. Ninety percent of the
IFQ derived from CVO QS for a fishery
and region is designated as Class A IFQ,
and the remaining 10 percent of the IFQ
is designated as Class B IFQ. Class A
IFQ must be matched and delivered to
a processor with IPQ. Class B IFQ is not
required to be delivered to a processor
with IPQ. Each year there is a one-toone match of the total pounds of Class
A IFQ with the total pounds of IPQ
issued in each crab fishery and region.
In most of the crab fisheries
established under the Program, NMFS
implemented regional designations for
QS and PQS to ensure that
municipalities that were historically
active as processing ports continue to
receive socioeconomic benefits from
crab deliveries or to encourage the
development of processing capacity in
specific isolated municipalities. To
accomplish this, the Program imposes
regional delivery requirements to
specific geographic regions based on
historic geographic delivery and
processing patterns.
The Western Aleutian Islands golden
king crab (Lithodes aequispinus) (WAG)
fishery is managed under the Program.
Existing regulations for the WAG fishery
require that 50 percent of the catcher
vessel Class A IFQ be delivered in the
West region (west of 174° W. Long.).
The remaining 50 percent of the Class
A IFQ is not subject to a regional
delivery requirement. The purpose of
the delivery requirement is to support
the development of processing facilities
in Adak and Akta, two isolated
municipalities in the West region. The
only shore-based processing facility
capable of processing WAG in this
region is located in the City of Adak;
however, processing capacity in the
West region may not be available each
season.
In response to a lack of processing
capacity in the West region, the Council
recommended, and NMFS
implemented, an emergency action to
exempt West-designated IFQ and Westdesignated IPQ for the WAG fishery
from the West regional designation
(February 18, 2010, 75 FR 7205). NMFS
extended the emergency action on
August 17, 2010 (75 FR 50716). The
emergency rule extension expired on
February 20, 2011.
At its April 2010 meeting, the Council
adopted Amendment 37 to the FMP to
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address the lack of processing capacity
in the West region. Amendment 37
establishes a process for QS holders,
PQS holders, and the cities of Adak and
Atka to request that NMFS exempt the
WAG fishery from the West regional
delivery requirements. The Council and
NMFS recognize that the regional
delivery requirements are untenable if
processing capacity is not available in
the region, potentially resulting in
unutilized TAC. Amendment 37
establishes a means to enhance stability
in the fishery, while continuing to
promote the sustained participation of
the municipalities intended to benefit
from the West regional delivery
requirements.
The RIR/FRFA prepared for this
action describes the costs and benefits
of Amendment 37 (see ADDRESSES). All
of the directly regulated entities are
expected to benefit from this action
relative to the status quo because
Amendment 37 provides an additional
opportunity for landings of crab from
the WAG fishery, in the event that
parties are unable to reasonably access
processing in the West region of the
fishery.
Actions Implemented by This Rule
This rule modifies or adds regulations
at 50 CFR 680.4(o), 680.7(a)(2), and
680.7(a)(4). These changes apply as
described in the following sections of
this preamble.
With this rule, NMFS implements
Amendment 37 to the FMP. This rule
establishes in regulations, at § 680.4(o),
a process for eligible contract signatories
in the WAG fishery to apply for an
exemption to the West regional delivery
requirements. If granted, an annual
exemption will apply to all Westdesignated IFQ and IPQ holders. This
rule allows eligible contract signatories
to complete an application to NMFS
requesting an annual exemption from
the West regional delivery requirements.
Eligible participants can submit an
application to NMFS at any time during
the crab fishing year. Upon approval of
a completed application, NMFS will
exempt all West-designated Class A IFQ
and IPQ from the West regional delivery
requirements for the remainder of the
crab fishing year. This exemption allows
all West-designated Class A IFQ and
IPQ holders to deliver and receive WAG
crab at processing facilities outside of
the West region (§ 680.7(a)(2) and (a)(4)).
This exemption is intended to promote
the full utilization of the TAC.
NMFS will continue to annually issue
WAG Class A IFQ and IPQ with a West
regional delivery requirement but will
exempt West-designated IFQ holders
and IPQ holders from the West regional
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delivery requirements if the required
parties apply for and are granted an
annual exemption. This rule removes
the delivery requirements only if
eligible contract signatories, who are
composed of QS holders, PQS holders,
and the cities of Adak and Atka, agree
to apply for an exemption.
In some years, it may not be possible
for fishery participants to predict the
availability of West region processing
capacity. Therefore, this action provides
the flexibility necessary for eligible
contract signatories to request an
exemption at any point during a crab
fishing year. In order to fully utilize the
TAC in a given year, it may be necessary
for fishery participants to respond
quickly to unforeseen disruptions in
processing capacity. From the date an
exemption is approved by NMFS, all
West-designated WAG IFQ could be
delivered east of 174° W. long. until the
end of that crab fishing year.
The rationale and effects of this action
are described in detail in the preamble
to the proposed rule, sections 2 and 3
of the EA/RIR/FRFA prepared to
support this rule (see ADDRESSES), and
are briefly summarized in this preamble.
For additional detail, please see the
proposed rule preamble.
Eligible Contract Signatories
This rule establishes regulations that
identify the eligible contract signatories
as those QS holders, PQS holders, and
municipalities who are eligible to apply
for an exemption from the West regional
delivery requirements: (1) Any person
or company that holds in excess of 20
percent of the West-designated WAG
QS; (2) any person or company that
holds in excess of 20 percent of the
West-designated WAG PQS; and (3) the
cities of Adak and Atka. Participants in
the WAG fishery that hold QS or PQS
are able to verify their portion relative
to other QS or PQS holders by accessing
the Alaska Region Web site at https://
alaskafisheries.noaa.gov. In addition,
NMFS will post the QS and PQS
holdings on its Web site following the
end of the transfer application period
(August 1) and prior to the start of the
WAG fishery (August 15).
Participants holding 20 percent or less
of either share type have no direct input
into the contract negotiations or
applications; however, once granted, an
exemption applies to all Westdesignated IFQ and IPQ holders. Once
granted, the exemption does not obligate
an IFQ or IPQ holder who is not a
contract signatory to deliver outside of
the West region, but does provide that
flexibility.
This action ensures that the
municipalities intended to benefit from
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the regional delivery requirements
participate in any agreement to deliver
West-designated WAG east of 174° W.
Long. This action requires the
unanimous consent of all eligible
contract signatories, to ensure that the
interest of the cities of Adak and Atka
are protected. The inclusion of the cities
of Adak and Atka as required signatories
continues to promote the development
of consistent processing capacity in the
West region because these
municipalities would likely withhold
consent to an exemption to foster local
deliveries. NMFS recognizes the
importance of the West regional
delivery requirements and requires the
unanimous agreement of all eligible
contract signatories on an annual basis
to exempt the WAG Class A IFQ from
the West regional delivery requirements.
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Application
This rule adds regulations at
§ 680.4(o) to establish the process for
eligible participants to request an
exemption for all West-designated IFQ
and IPQ from the West region delivery
requirements. All eligible contract
signatories must submit a completed
application before NMFS will approve
an exemption for all IFQ and IPQ
holders from the West regional delivery
requirements in the WAG fishery. This
action requires that all applicants sign
and date an affidavit affirming that all
information provided on the application
is true, correct, and complete to the best
of his or her knowledge. Additional
documents supporting eligibility may be
attached to an application to facilitate
approval, including documentation
supporting the authority of a
representative to sign the affidavit on
behalf of the eligible contract signatory.
Approval of Exemption
To be approved, all parties meeting
the eligibility requirements at the time
the application is submitted must
signify their agreement to the exemption
on the application. NMFS will grant an
exemption to the regional delivery
requirements if all eligible contract
signatories submit a completed
application form, including an affidavit
affirming that a master contract has been
signed by all eligible contract
signatories. NMFS approval of an
annual exemption from the WAG West
regional delivery requirements will be
made publicly available at the NMFS
Web site at https://
alaskafisheries.noaa.gov.
The evaluation of an application for
an annual exemption requires a
decision-making process that is subject
to administrative appeal. Applications
not meeting the requirements will not
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be approved, and NMFS will issue an
initial administrative determination
(IAD) to indicate the deficiencies and
discrepancies in the information (or the
evidence submitted in support of the
application) and provide information on
how an applicant could appeal an IAD.
The appeals process is described under
§ 679.43. However, if an application is
denied, eligible contract signatories can
reapply immediately or at any time
during a crab fishing year. This program
is designed to be flexible and includes
no deadlines for submission or limits on
the number of times applications could
be submitted to NMFS.
Duration of Exemption
This rule retains regulations that
require the West regional delivery
requirements unless NMFS annually
approves an application for an
exemption. Regulations at § 680.4(o)(3)
establish the effective date of the
exemption as the date the completed
application is approved by NMFS.
Exemptions expire at the end of that
crab fishing year (June 30) regardless of
when they are approved.
Public Comment
NMFS received three unique letters
during the public comment period for
Amendment 37 and the proposed rule.
One comment letter provided a general
criticism of fishery management, and
was not relevant to Amendment 37 or
the proposed rule. The second comment
letter noted that the Bureau of Land
Management has no jurisdiction or
authority as it pertains to Amendment
37. The third comment letter generally
praised Amendment 37 and contained
one substantive comment, responded to
below. No modifications were made
from proposed to final rule.
Comment 1: Regulations at § 680.4(o)
would impose an unnecessary logistical
burden on the applicants applying for
an exemption from the West regional
delivery requirements. As proposed,
NMFS would require applicants to
submit a single application signed by all
parties. NMFS should revise the
regulations to allow contract signatories
to sign and submit multiple counterpart
applications.
Response: Due to the logistic issues
described by the commenter, NMFS
Restricted Access Management Program
(RAM) allows parties that submit
applications for quota or license
transfers to submit separate
‘‘counterparty’’ paperwork. Although
NMFS permits the submission of
multiple counterpart paperwork, this
practice is not explicitly described in
regulation. In response to the comment,
NMFS clarifies that it will accept
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multiple counterpart applications for an
exemption from the West regional
delivery requirements. However, NMFS
cannot act on any application until all
required information, and an
application(s) including signatures from
all contract signatories, has been
received by NMFS. It is the
responsibility of the applicants to
ensure that RAM receives a complete
application package.
Public comment letters received by
NMFS for this action may be obtained
from https://www.regulations.gov (see
ADDRESSES).
Classification
The Administrator, Alaska Region,
NMFS, determined that Amendment 37
is necessary for the conservation and
management of the WAG fishery and
that it is consistent with the MagnusonStevens Act and other applicable laws.
The Assistant Administrator for
Fisheries, NOAA, has determined that
this rule is consistent with Amendment
37 to the FMP, the Magnuson-Stevens
Act, and other applicable laws.
This final rule has been determined to
be not significant for purposes of
Executive Order 12866.
A FRFA was prepared for this rule, as
required by section 604 of the
Regulatory Flexibility Act. Copies of the
FRFA prepared for this final rule are
available from NMFS (see ADDRESSES).
The FRFA incorporates the IRFA, a
summary of the significant issues raised
by the public comments in response to
the IRFA, NMFS responses to those
comments, and a summary of the
analyses completed to support the
action. A summary of the FRFA follows.
The FRFA for this action explains the
need for, and objectives of, the rule;
notes that no public comments on the
initial regulatory flexibility analysis
were submitted; describes and estimates
the number of small entities to which
the rule will apply; describes projected
reporting, recordkeeping, and other
compliance requirements of the rule;
and describes the steps the agency has
taken to minimize the significant
economic impact on small entities,
including a statement of the factual,
policy, and legal reasons for selecting
the alternative adopted in the final rule
and why each one of the other
significant alternatives to the rule
considered by the agency that affect the
impact on small entities was rejected.
The need for and objectives of this
action; a summary of the comments and
responses; a description of the action,
its purpose, and its legal basis; and a
statement of the factual, policy, and
legal reasons for selecting the alternative
implemented by this action are
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described elsewhere in this preamble
and are not repeated here.
more generally. No changes were made
in the final rule from the proposed rule.
Number and Description of Affected
Small Entities
Steps Taken To Minimize Economic
Impact
During the development of this
action, the Council considered and
rejected alternatives that would have
required the consent of holders of less
than 20 percent of the pools of QS and
PQS, and the consent of shore-based
processors in Adak or Atka that
processed over a threshold (i.e., 5
percent, 10 percent, or 20 percent) of the
West-designated shares in the year
preceding the exemption. The Council
elected not to select these options, as
the large share holders could more
efficiently process the exemption, and
the small share holders would be
adequately represented by the required
parties to the exemption (including the
communities of Adak and Atka). The
inclusion of shareholders with less
economic incentive to harvest or
process West-designated WAG could
impede effective negotiations by
withholding participation in an
exemption to extract more favorable
terms from larger entities with greater
economic incentive to fully harvest and
process the IFQ and IPQ. IFQ and IPQ
holders that are substantially invested
in the fishery are more likely to act
quickly to ensure that TAC is fully
utilized. Similarly, holders of significant
amounts of PQS are only likely to
support an exemption in years when
processing capacity is unavailable in the
West region, thereby facilitating the
processing needs of all IPQ holders.
The Council also considered a variety
of other approaches to address the
problem identified in the purpose and
need statement. One approach
considered was an exemption that
would be available only after a factual
finding of the absence of processing
capacity. This provision could be
administered either directly by NMFS or
by an arbitrator selected by the
interested parties. The Council elected
not to advance this alternative, as
factual findings of the absence of
processing capacity may be
administratively unworkable. With
mobile processing platforms, capacity
availability can change in a relatively
short time period. Determinations of the
availability of capacity may not be
possible, given the potential for shortterm changes in capacity. Small entities
that are IFQ or IPQ holders would be
disadvantaged by this alternative, since
the exemption may be unavailable in
circumstances when it might be
appropriate.
The Council also considered a
provision under the preferred
The Council’s preferred alternative for
this action, as implemented by this final
rule, will regulate certain QS holders,
IFQ holders, PQS holders, IPQ holders,
the communities of Adak and Atka, and
possibly certain shore-based processors
in those two communities. The fishery
has 16 QS holders, of which 14 are
estimated to be small entities. One of
these entities is a community
development quota (CDQ) group; one is
a wholly owned subsidiary of a CDQ
group; and the others do not exceed the
$4.0 million threshold. In the 2009/2010
season, the fishery had three holders of
West region IFQ, two of which are
estimated to be small entities. One of
these is a wholly owned subsidiary of a
CDQ group, and the other is estimated
to have annual receipts below the $4.0
million threshold.
The fishery had six holders of West
region PQS, of which four are estimated
to be small entities. One entity is a CDQ
group; another is a wholly owned
subsidiary of a CDQ group, and two
have fewer than 500 employees. In the
2009/2010 season, the fishery had six
holders of West region IPQ, three of
which are estimated to be small entities.
One entity is a CDQ group; another is
a wholly owned subsidiary of a CDQ
group, and the third has fewer than 500
employees. Both the communities of
Adak and Atka qualify as small entities,
as neither has more than 50,000
residents.
As noted above, all or most of the
entities that are directly impacted by
this regulation are small entities. This
action likely will not have a significant
adverse impact on some of these entities
relative to the status quo alternative.
The RIR/FRFA (see ADDRESSES)
prepared for this action notes that these
changes are not likely to have a
significant economic impact on an LLP
license holder.
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Public Comments on Initial Regulatory
Flexibility Analysis
The proposed rule for this action was
published in the Federal Register on
February 15, 2011 (76 FR 8700). An
Initial Regulatory Flexibility Analysis
(IRFA) was prepared for the proposed
rule and described in the classification
section of the preamble to the proposed
rule. The public comment period ended
on April 1, 2011. NMFS received three
unique comment letters; however, no
comments were received on the IRFA or
on the economic impacts of the rule
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alternative that would have prohibited
any party required to consent to the
exemption from unreasonably
withholding consent to the exemption.
The proposed provision would have
been administered by an arbitrator
jointly selected by the required parties.
Although such a provision might be
desirable, as it would prevent persons
from barring the exemption without
reason, the provision would also likely
be unadministerable. Even with an
arbitrator, NMFS would be required to
provide the interested parties with the
opportunity to appeal any arbitrator
decision. Under the appeal, NMFS
would be required to make a de novo
finding (i.e., an original finding without
deference to the arbitrator’s decision).
As a result, the use of an arbitrator may
delay the granting of the exemption. In
addition, NMFS may be unable to
expeditiously process any claim, if
factual matters are disputed. To
accommodate time constraints
associated with contesting a party’s
withholding consent to an exemption, a
timeline for application for the
exemption would need to be developed.
This timeline would limit flexibility and
could prevent the exemption from
achieving its intended purpose.
Although IFQ holders and IPQ holders
that are small entities may benefit from
the exemption in some circumstances, it
might be denied because of another
party’s unreasonable decision to
withhold consent. Since the provision is
generally unworkable, it is unlikely that
this alternative would have provided
any benefit to these small entities. In
addition, the provision might lead small
entities to pursue administrative
proceedings to challenge another
required party’s withholding of consent,
which could be costly to small entities.
The Council also elected not to
advance an alternative to remove the
West regional delivery requirements
altogether. Since the West regional
delivery requirements are intended to
induce the development of processing
in the region, when such development
is feasible, removal of the exemption
would be inappropriate. Although this
alternative would have removed the
burden of the West regional delivery
requirements from small entities
holding QS, PQS, IFQ, and IPQ, the
alternative would have removed any
regulatory inducement to process in the
West region. The potential future benefit
of those requirements would therefore
be denied to the communities of Adak
and Atka. Although the exemption
created by the preferred alternative
could reduce the potential for the
development of processing capacity in
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Adak and Atka, it will provide these
two small entities with the ability to
withhold consent, as a means of
inducing PQS and IPQ holders to
develop processing capacity in the West
region.
Compared with the status quo, the
preferred alternative, and the associated
suite of options composing the preferred
alternative, best minimizes adverse
economic impacts on small entities,
while providing the most benefits to the
directly regulated small entities. The
action provides greater economic
benefits for participants in the WAG
fishery by providing additional
processing opportunities when
processing capacity is not available in
the West region. The Council chose to
recommend the preferred alternative
because this action best meets the goals
of this action. This action minimizes the
potential negative impacts to small
entities directly, such as unharvested
TAC, when compared to the other
options, while promoting stability in a
region that has traditionally benefited
from the regional delivery requirements.
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Small Entity Compliance Guide
Section 212 of the Small Business
Regulatory Enforcement Fairness Act of
1996 states that, for each rule or group
of related rules for which an agency is
required to prepare a FRFA, the agency
shall publish one or more guides to
assist small entities in complying with
the rule, and shall designate such
publications as ‘‘small entity
compliance guides.’’ The agency shall
explain the actions a small entity is
required to take to comply with a rule
or group of rules. As part of this
rulemaking process, the Small Entity
Compliance Guide includes the
preambles to the proposed and final
rules, and is included in the BSAI Crab
Rationalization frequently asked
questions, which may be obtained from
the Alaska Region Web site at https://
alaskafisheries.noaa.gov/
sustainablefisheries/crab/rat/
progfaq.htm. Copies of the proposed
rule, and final rule also are available
upon request from the Alaska Regional
Office (See ADDRESSES).
Collection-of-Information
This final rule contains a collectionof-information requirement subject to
the Paperwork Reduction Act and
which has been approved by Office of
Management and Budget (OMB) under
Control Number 0648–0514. Public
reporting burden per response is
estimated to average 2 hours for the
Application for Annual Exemption from
the Western Aleutian Islands Golden
King Crab West Regional Delivery
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Requirements, and 4 hours for the
appeal letter if the application is denied,
including the time for reviewing
instructions, searching existing data
sources, gathering and maintaining the
data needed, and completing and
reviewing the collection 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), by e-mail to
OIRA_Submission@omb.eop.gov, or fax
to 202–395–7285. Notwithstanding any
other provision of the law, no person is
required to respond to, nor shall any
person be subject to a penalty for failure
to comply with, a collection-ofinformation subject to the requirements
of the Paperwork Reduction Act, unless
that collection-of-information displays a
currently valid OMB control number.
List of Subjects in 50 CFR Part 680
Alaska, Fisheries, Reporting and
recordkeeping requirements.
Dated: June 15, 2011.
John Oliver,
Deputy Assistant Administrator for
Operations, National Marine Fisheries
Service.
For the reasons set out in the
preamble, 50 CFR part 680 is amended
as follows:
PART 680—SHELLFISH FISHERIES OF
THE EXCLUSIVE ECONOMIC ZONE
OFF ALASKA
1. The authority citation for 50 CFR
part 680 continues to read as follows:
■
Authority: 16 U.S.C. 1862; Pub. L. 109–
241; Pub. L. 109–479.
2. In § 680.4, add paragraph (o) to read
as follows:
■
§ 680.4
Permits.
*
*
*
*
*
(o) Exemption from Western Aleutian
Islands golden king crab West regional
delivery requirements—(1) Request for
an Annual Exemption from Western
Aleutian Islands golden king crab West
regional delivery requirements. The
eligible contract signatories (see
qualifications at § 680.4(o)(2)(i)) may
submit an application to NMFS to
request that NMFS exempt West
designated IFQ and West designated
IPQ for the Western Aleutian Islands
golden king crab (WAG) fishery from the
West regional delivery requirements at
§ 680.7(a)(2) and (a)(4). All eligible
contract signatories must submit one
completed copy of the application form.
The application must be submitted to
NMFS using one of the following
methods:
PO 00000
Frm 00065
Fmt 4700
Sfmt 4700
35785
(i) Mail: Regional Administrator, c/o
Restricted Access Management Program,
NMFS, P.O. Box 21668, Juneau, AK
99802–1668; or
(ii) Fax: 907–586–7354; or
(iii) Hand delivery or carrier: NMFS,
Room 713, 709 West 9th Street, Juneau,
AK 99801.
(2) Application form. The application
form is available on the NMFS Alaska
region Web site (https://
alaskafisheries.noaa.gov) or from NMFS
at the address in paragraph (o)(1)(i) of
this section. All information fields on
the application form must be accurately
completed, including—
(i) Identification of eligible contract
signatories. Full name of each eligible
contract signatory; NMFS person ID;
and appropriate information that
documents the signatories meet the
requirements. If the application is
completed by an individual who is the
authorized representative, then
documentation demonstrating the
authorization must accompany the
application. Eligible contract signatories
are—
(A) QS holders: Any person that holds
in excess of 20 percent of the West
designated WAG QS at the time the
contract was signed, or their authorized
representative.
(B) PQS holders: Any person that
holds in excess of 20 percent of the
West designated WAG PQS at the time
the contract was signed, or their
authorized representative.
(C) Municipalities: designated officials
from both the City of Adak and the City
of Atka or an authorized representative.
(ii) Affidavit affirming master contract
has been signed. Each eligible contract
signatory, as described in paragraph
(o)(2)(i) of this section, must sign and
date an Affidavit affirming that a master
contract has been signed to authorize
the completion of the application to
request that NMFS exempt West
designated IFQ and West designated
IPQ for the WAG fishery from the West
regional delivery requirements. The
eligible contract signatories must affirm
on the Affidavit that all information is
true, correct, and complete to the best of
his or her knowledge and belief.
(3) Effective date. A completed
application must be approved by NMFS
before any person may use WAG IFQ or
IPQ with a West regional designation
outside of the West region during a crab
fishing year. If approved, the effective
date of the exemption is the date the
application was approved by NMFS.
Any delivery of WAG IFQ or IPQ with
a West regional designation outside of
the West region prior to the effective
date of the exemption is prohibited
under § 680.7(a)(2) and (a)(4).
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(4) Duration. An exemption from
West regional delivery requirements is
only valid for the remainder of the crab
fishing year during which the
application was approved by NMFS.
The exemption expires at the end of the
crab fishing year (June 30).
(5) Approval—(i) NMFS will approve
a completed application for the
exemption from Western Aleutian
Islands golden king crab West regional
delivery requirements if all eligible
contract signatories meet the
requirements specified in paragraph
(o)(2)(i) of this section.
(ii) The Regional Administrator will
not consider an application to have been
received if the applicant cannot provide
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objective written evidence that NMFS
Alaska Region received it.
(iii) NMFS approval of an annual
exemption from the Western Aleutian
Islands golden king crab West regional
delivery requirements will be made
publicly available at the NMFS Web site
at https://alaskafisheries.noaa.gov.
2. In § 680.7, revise paragraphs (a)(2)
and (a)(4) to read as follows:
■
§ 680.7
Prohibitions
*
*
*
*
*
(a) * * *
(2) Receive CR crab harvested under
an IFQ permit in any region other than
the region for which the IFQ permit is
PO 00000
Frm 00066
Fmt 4700
Sfmt 9990
designated, unless deliveries of West
designated WAG IFQ are received
pursuant to a NMFS-approved
exemption from the regional delivery
requirements, as described under
§ 680.4(o).
*
*
*
*
*
(4) Use IPQ in any region other than
the region for which the IPQ is
designated, unless West designated
WAG IPQ is used pursuant to a NMFSapproved exemption from the regional
delivery requirements, as described
under § 680.4(o).
*
*
*
*
*
[FR Doc. 2011–15324 Filed 6–17–11; 8:45 am]
BILLING CODE 3510–22–P
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Agencies
[Federal Register Volume 76, Number 118 (Monday, June 20, 2011)]
[Rules and Regulations]
[Pages 35781-35786]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-15324]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 680
[Docket No. 100723308-1315-02]
RIN 0648-BA11
Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea
and Aleutian Islands Crab Rationalization Program; Amendment 37
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: NMFS issues regulations to implement Amendment 37 to the
Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner
Crabs (FMP). This action amends the Bering Sea/Aleutian Islands Crab
Rationalization Program by establishing a process for eligible contract
signatories to request that NMFS exempt holders of West-designated
individual fishing quota (IFQ) and individual processor quota (IPQ) in
the Western Aleutian Islands golden king crab fishery from the West
regional delivery requirements. Federal regulations require West-
designated golden king crab IFQ to be delivered to a processor in the
West region of the Aleutian Islands with an exact amount of unused
West-designated IPQ. However, sufficient processing capacity may not be
available each season. This rule is necessary to prevent disruption to
the Western Aleutian Islands golden king crab fishery, while providing
for the sustained participation of municipalities in the region. This
action is intended to promote the goals and objectives of the Magnuson-
Stevens Fishery Conservation and Management Act, the FMP, and other
applicable law.
DATES: Effective July 20, 2011.
ADDRESSES: Electronic copies of Amendment 37 to the FMP, the Regulatory
Impact Review (RIR), the Final Regulatory Flexibility Analysis (FRFA),
the Small Entity Compliance Guide, and the Categorical Exclusion
prepared for this final action may be obtained from https://www.regulations.gov or from the Alaska Region Web site at https://alaskafisheries.noaa.gov. The Environmental Impact Statement, RIR,
FRFA, and Social Impact Assessment prepared for the Crab
Rationalization Program are available from the NMFS Alaska Region Web
site at https://alaskafisheries.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, e-mailed to OIRA_Submission@omb.eop.gov, or faxed
to 202-395-7285.
FOR FURTHER INFORMATION CONTACT: Seanbob Kelly, 907-586-7228.
SUPPLEMENTARY INFORMATION: The king and Tanner crab fisheries in the
exclusive economic zone of the Bering Sea and 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) as amended by
the Consolidated Appropriations Act of 2004 (Pub. L. 108-199, section
801).
This final rule implements Amendment 37 to the FMP. In April 2010,
the Council recommended Amendment 37 to the Secretary of Commerce. NMFS
published a Notice of Availability of this amendment in the Federal
Register on February 1, 2011 (76 FR 5556), with comments invited
through April 4, 2011. NMFS published the proposed rule for this action
on February 25, 2011 (76 FR 8700), with comments invited through April
1, 2011. NMFS approved Amendment 37 on April 25, 2011. NMFS received
three unique comment letters during the public comment period for
Amendment 37 and the proposed rule; however, these comments did not
result in any modification to the proposed regulation text. These
comments are discussed in greater detail below.
Background
Amendments 18 and 19 amended the FMP to include the Bering Sea/
Aleutian Islands Crab Rationalization Program (Program). Regulations
implementing the Program are located at 50 CFR part 680. NMFS
established the Program as a catch share program for nine crab
fisheries in the BSAI. The IFQ portion of the Program assigned quota
share (QS) to persons based on their historic participation in one or
more of these nine BSAI crab fisheries during a specific time period.
Under the Program, NMFS issued four types of QS: Catcher vessel owner
(CVO) QS was assigned to holders of License Limitation Program (LLP)
licenses who delivered their catch onshore or to stationary floating
crab processors; catcher/processor vessel owner QS was assigned to LLP
holders that harvested and processed their catch at sea; captains and
crew onboard catcher/processor vessels were issued catcher/processor
crew QS; and captains and crew onboard catcher vessels were issued
catcher vessel crew QS. Each year, a person who holds QS may receive
IFQ, which represents an exclusive harvest privilege for a portion of
the annual total allowable catch (TAC). Under the program, QS holders
can form cooperatives to pool the harvest of the IFQ on fewer vessels
to minimize operational costs.
NMFS also issued processor quota share (PQS) under the Program.
Each year, PQS yields an exclusive privilege to receive for processing
a portion of the
[[Page 35782]]
IFQ in each of the nine BSAI crab fisheries. This annual exclusive
processing privilege is called IPQ. A portion of the QS issued yields
IFQ that is required to be delivered to a processor with a like amount
of unused IPQ. IFQ derived from CVO QS is subject to annual designation
as either Class A IFQ or Class B IFQ. Ninety percent of the IFQ derived
from CVO QS for a fishery and region is designated as Class A IFQ, and
the remaining 10 percent of the IFQ is designated as Class B IFQ. Class
A IFQ must be matched and delivered to a processor with IPQ. Class B
IFQ is not required to be delivered to a processor with IPQ. Each year
there is a one-to-one match of the total pounds of Class A IFQ with the
total pounds of IPQ issued in each crab fishery and region.
In most of the crab fisheries established under the Program, NMFS
implemented regional designations for QS and PQS to ensure that
municipalities that were historically active as processing ports
continue to receive socioeconomic benefits from crab deliveries or to
encourage the development of processing capacity in specific isolated
municipalities. To accomplish this, the Program imposes regional
delivery requirements to specific geographic regions based on historic
geographic delivery and processing patterns.
The Western Aleutian Islands golden king crab (Lithodes
aequispinus) (WAG) fishery is managed under the Program. Existing
regulations for the WAG fishery require that 50 percent of the catcher
vessel Class A IFQ be delivered in the West region (west of 174[deg] W.
Long.). The remaining 50 percent of the Class A IFQ is not subject to a
regional delivery requirement. The purpose of the delivery requirement
is to support the development of processing facilities in Adak and
Akta, two isolated municipalities in the West region. The only shore-
based processing facility capable of processing WAG in this region is
located in the City of Adak; however, processing capacity in the West
region may not be available each season.
In response to a lack of processing capacity in the West region,
the Council recommended, and NMFS implemented, an emergency action to
exempt West-designated IFQ and West-designated IPQ for the WAG fishery
from the West regional designation (February 18, 2010, 75 FR 7205).
NMFS extended the emergency action on August 17, 2010 (75 FR 50716).
The emergency rule extension expired on February 20, 2011.
At its April 2010 meeting, the Council adopted Amendment 37 to the
FMP to address the lack of processing capacity in the West region.
Amendment 37 establishes a process for QS holders, PQS holders, and the
cities of Adak and Atka to request that NMFS exempt the WAG fishery
from the West regional delivery requirements. The Council and NMFS
recognize that the regional delivery requirements are untenable if
processing capacity is not available in the region, potentially
resulting in unutilized TAC. Amendment 37 establishes a means to
enhance stability in the fishery, while continuing to promote the
sustained participation of the municipalities intended to benefit from
the West regional delivery requirements.
The RIR/FRFA prepared for this action describes the costs and
benefits of Amendment 37 (see ADDRESSES). All of the directly regulated
entities are expected to benefit from this action relative to the
status quo because Amendment 37 provides an additional opportunity for
landings of crab from the WAG fishery, in the event that parties are
unable to reasonably access processing in the West region of the
fishery.
Actions Implemented by This Rule
This rule modifies or adds regulations at 50 CFR 680.4(o),
680.7(a)(2), and 680.7(a)(4). These changes apply as described in the
following sections of this preamble.
With this rule, NMFS implements Amendment 37 to the FMP. This rule
establishes in regulations, at Sec. 680.4(o), a process for eligible
contract signatories in the WAG fishery to apply for an exemption to
the West regional delivery requirements. If granted, an annual
exemption will apply to all West-designated IFQ and IPQ holders. This
rule allows eligible contract signatories to complete an application to
NMFS requesting an annual exemption from the West regional delivery
requirements. Eligible participants can submit an application to NMFS
at any time during the crab fishing year. Upon approval of a completed
application, NMFS will exempt all West-designated Class A IFQ and IPQ
from the West regional delivery requirements for the remainder of the
crab fishing year. This exemption allows all West-designated Class A
IFQ and IPQ holders to deliver and receive WAG crab at processing
facilities outside of the West region (Sec. 680.7(a)(2) and (a)(4)).
This exemption is intended to promote the full utilization of the TAC.
NMFS will continue to annually issue WAG Class A IFQ and IPQ with a
West regional delivery requirement but will exempt West-designated IFQ
holders and IPQ holders from the West regional delivery requirements if
the required parties apply for and are granted an annual exemption.
This rule removes the delivery requirements only if eligible contract
signatories, who are composed of QS holders, PQS holders, and the
cities of Adak and Atka, agree to apply for an exemption.
In some years, it may not be possible for fishery participants to
predict the availability of West region processing capacity. Therefore,
this action provides the flexibility necessary for eligible contract
signatories to request an exemption at any point during a crab fishing
year. In order to fully utilize the TAC in a given year, it may be
necessary for fishery participants to respond quickly to unforeseen
disruptions in processing capacity. From the date an exemption is
approved by NMFS, all West-designated WAG IFQ could be delivered east
of 174[deg] W. long. until the end of that crab fishing year.
The rationale and effects of this action are described in detail in
the preamble to the proposed rule, sections 2 and 3 of the EA/RIR/FRFA
prepared to support this rule (see ADDRESSES), and are briefly
summarized in this preamble. For additional detail, please see the
proposed rule preamble.
Eligible Contract Signatories
This rule establishes regulations that identify the eligible
contract signatories as those QS holders, PQS holders, and
municipalities who are eligible to apply for an exemption from the West
regional delivery requirements: (1) Any person or company that holds in
excess of 20 percent of the West-designated WAG QS; (2) any person or
company that holds in excess of 20 percent of the West-designated WAG
PQS; and (3) the cities of Adak and Atka. Participants in the WAG
fishery that hold QS or PQS are able to verify their portion relative
to other QS or PQS holders by accessing the Alaska Region Web site at
https://alaskafisheries.noaa.gov. In addition, NMFS will post the QS and
PQS holdings on its Web site following the end of the transfer
application period (August 1) and prior to the start of the WAG fishery
(August 15).
Participants holding 20 percent or less of either share type have
no direct input into the contract negotiations or applications;
however, once granted, an exemption applies to all West-designated IFQ
and IPQ holders. Once granted, the exemption does not obligate an IFQ
or IPQ holder who is not a contract signatory to deliver outside of the
West region, but does provide that flexibility.
This action ensures that the municipalities intended to benefit
from
[[Page 35783]]
the regional delivery requirements participate in any agreement to
deliver West-designated WAG east of 174[deg] W. Long. This action
requires the unanimous consent of all eligible contract signatories, to
ensure that the interest of the cities of Adak and Atka are protected.
The inclusion of the cities of Adak and Atka as required signatories
continues to promote the development of consistent processing capacity
in the West region because these municipalities would likely withhold
consent to an exemption to foster local deliveries. NMFS recognizes the
importance of the West regional delivery requirements and requires the
unanimous agreement of all eligible contract signatories on an annual
basis to exempt the WAG Class A IFQ from the West regional delivery
requirements.
Application
This rule adds regulations at Sec. 680.4(o) to establish the
process for eligible participants to request an exemption for all West-
designated IFQ and IPQ from the West region delivery requirements. All
eligible contract signatories must submit a completed application
before NMFS will approve an exemption for all IFQ and IPQ holders from
the West regional delivery requirements in the WAG fishery. This action
requires that all applicants sign and date an affidavit affirming that
all information provided on the application is true, correct, and
complete to the best of his or her knowledge. Additional documents
supporting eligibility may be attached to an application to facilitate
approval, including documentation supporting the authority of a
representative to sign the affidavit on behalf of the eligible contract
signatory.
Approval of Exemption
To be approved, all parties meeting the eligibility requirements at
the time the application is submitted must signify their agreement to
the exemption on the application. NMFS will grant an exemption to the
regional delivery requirements if all eligible contract signatories
submit a completed application form, including an affidavit affirming
that a master contract has been signed by all eligible contract
signatories. NMFS approval of an annual exemption from the WAG West
regional delivery requirements will be made publicly available at the
NMFS Web site at https://alaskafisheries.noaa.gov.
The evaluation of an application for an annual exemption requires a
decision-making process that is subject to administrative appeal.
Applications not meeting the requirements will not be approved, and
NMFS will issue an initial administrative determination (IAD) to
indicate the deficiencies and discrepancies in the information (or the
evidence submitted in support of the application) and provide
information on how an applicant could appeal an IAD. The appeals
process is described under Sec. 679.43. However, if an application is
denied, eligible contract signatories can reapply immediately or at any
time during a crab fishing year. This program is designed to be
flexible and includes no deadlines for submission or limits on the
number of times applications could be submitted to NMFS.
Duration of Exemption
This rule retains regulations that require the West regional
delivery requirements unless NMFS annually approves an application for
an exemption. Regulations at Sec. 680.4(o)(3) establish the effective
date of the exemption as the date the completed application is approved
by NMFS. Exemptions expire at the end of that crab fishing year (June
30) regardless of when they are approved.
Public Comment
NMFS received three unique letters during the public comment period
for Amendment 37 and the proposed rule. One comment letter provided a
general criticism of fishery management, and was not relevant to
Amendment 37 or the proposed rule. The second comment letter noted that
the Bureau of Land Management has no jurisdiction or authority as it
pertains to Amendment 37. The third comment letter generally praised
Amendment 37 and contained one substantive comment, responded to below.
No modifications were made from proposed to final rule.
Comment 1: Regulations at Sec. 680.4(o) would impose an
unnecessary logistical burden on the applicants applying for an
exemption from the West regional delivery requirements. As proposed,
NMFS would require applicants to submit a single application signed by
all parties. NMFS should revise the regulations to allow contract
signatories to sign and submit multiple counterpart applications.
Response: Due to the logistic issues described by the commenter,
NMFS Restricted Access Management Program (RAM) allows parties that
submit applications for quota or license transfers to submit separate
``counterparty'' paperwork. Although NMFS permits the submission of
multiple counterpart paperwork, this practice is not explicitly
described in regulation. In response to the comment, NMFS clarifies
that it will accept multiple counterpart applications for an exemption
from the West regional delivery requirements. However, NMFS cannot act
on any application until all required information, and an
application(s) including signatures from all contract signatories, has
been received by NMFS. It is the responsibility of the applicants to
ensure that RAM receives a complete application package.
Public comment letters received by NMFS for this action may be
obtained from https://www.regulations.gov (see ADDRESSES).
Classification
The Administrator, Alaska Region, NMFS, determined that Amendment
37 is necessary for the conservation and management of the WAG fishery
and that it is consistent with the Magnuson-Stevens Act and other
applicable laws. The Assistant Administrator for Fisheries, NOAA, has
determined that this rule is consistent with Amendment 37 to the FMP,
the Magnuson-Stevens Act, and other applicable laws.
This final rule has been determined to be not significant for
purposes of Executive Order 12866.
A FRFA was prepared for this rule, as required by section 604 of
the Regulatory Flexibility Act. Copies of the FRFA prepared for this
final rule are available from NMFS (see ADDRESSES). The FRFA
incorporates the IRFA, a summary of the significant issues raised by
the public comments in response to the IRFA, NMFS responses to those
comments, and a summary of the analyses completed to support the
action. A summary of the FRFA follows.
The FRFA for this action explains the need for, and objectives of,
the rule; notes that no public comments on the initial regulatory
flexibility analysis were submitted; describes and estimates the number
of small entities to which the rule will apply; describes projected
reporting, recordkeeping, and other compliance requirements of the
rule; and describes the steps the agency has taken to minimize the
significant economic impact on small entities, including a statement of
the factual, policy, and legal reasons for selecting the alternative
adopted in the final rule and why each one of the other significant
alternatives to the rule considered by the agency that affect the
impact on small entities was rejected. The need for and objectives of
this action; a summary of the comments and responses; a description of
the action, its purpose, and its legal basis; and a statement of the
factual, policy, and legal reasons for selecting the alternative
implemented by this action are
[[Page 35784]]
described elsewhere in this preamble and are not repeated here.
Number and Description of Affected Small Entities
The Council's preferred alternative for this action, as implemented
by this final rule, will regulate certain QS holders, IFQ holders, PQS
holders, IPQ holders, the communities of Adak and Atka, and possibly
certain shore-based processors in those two communities. The fishery
has 16 QS holders, of which 14 are estimated to be small entities. One
of these entities is a community development quota (CDQ) group; one is
a wholly owned subsidiary of a CDQ group; and the others do not exceed
the $4.0 million threshold. In the 2009/2010 season, the fishery had
three holders of West region IFQ, two of which are estimated to be
small entities. One of these is a wholly owned subsidiary of a CDQ
group, and the other is estimated to have annual receipts below the
$4.0 million threshold.
The fishery had six holders of West region PQS, of which four are
estimated to be small entities. One entity is a CDQ group; another is a
wholly owned subsidiary of a CDQ group, and two have fewer than 500
employees. In the 2009/2010 season, the fishery had six holders of West
region IPQ, three of which are estimated to be small entities. One
entity is a CDQ group; another is a wholly owned subsidiary of a CDQ
group, and the third has fewer than 500 employees. Both the communities
of Adak and Atka qualify as small entities, as neither has more than
50,000 residents.
As noted above, all or most of the entities that are directly
impacted by this regulation are small entities. This action likely will
not have a significant adverse impact on some of these entities
relative to the status quo alternative. The RIR/FRFA (see ADDRESSES)
prepared for this action notes that these changes are not likely to
have a significant economic impact on an LLP license holder.
Public Comments on Initial Regulatory Flexibility Analysis
The proposed rule for this action was published in the Federal
Register on February 15, 2011 (76 FR 8700). An Initial Regulatory
Flexibility Analysis (IRFA) was prepared for the proposed rule and
described in the classification section of the preamble to the proposed
rule. The public comment period ended on April 1, 2011. NMFS received
three unique comment letters; however, no comments were received on the
IRFA or on the economic impacts of the rule more generally. No changes
were made in the final rule from the proposed rule.
Steps Taken To Minimize Economic Impact
During the development of this action, the Council considered and
rejected alternatives that would have required the consent of holders
of less than 20 percent of the pools of QS and PQS, and the consent of
shore-based processors in Adak or Atka that processed over a threshold
(i.e., 5 percent, 10 percent, or 20 percent) of the West-designated
shares in the year preceding the exemption. The Council elected not to
select these options, as the large share holders could more efficiently
process the exemption, and the small share holders would be adequately
represented by the required parties to the exemption (including the
communities of Adak and Atka). The inclusion of shareholders with less
economic incentive to harvest or process West-designated WAG could
impede effective negotiations by withholding participation in an
exemption to extract more favorable terms from larger entities with
greater economic incentive to fully harvest and process the IFQ and
IPQ. IFQ and IPQ holders that are substantially invested in the fishery
are more likely to act quickly to ensure that TAC is fully utilized.
Similarly, holders of significant amounts of PQS are only likely to
support an exemption in years when processing capacity is unavailable
in the West region, thereby facilitating the processing needs of all
IPQ holders.
The Council also considered a variety of other approaches to
address the problem identified in the purpose and need statement. One
approach considered was an exemption that would be available only after
a factual finding of the absence of processing capacity. This provision
could be administered either directly by NMFS or by an arbitrator
selected by the interested parties. The Council elected not to advance
this alternative, as factual findings of the absence of processing
capacity may be administratively unworkable. With mobile processing
platforms, capacity availability can change in a relatively short time
period. Determinations of the availability of capacity may not be
possible, given the potential for short-term changes in capacity. Small
entities that are IFQ or IPQ holders would be disadvantaged by this
alternative, since the exemption may be unavailable in circumstances
when it might be appropriate.
The Council also considered a provision under the preferred
alternative that would have prohibited any party required to consent to
the exemption from unreasonably withholding consent to the exemption.
The proposed provision would have been administered by an arbitrator
jointly selected by the required parties. Although such a provision
might be desirable, as it would prevent persons from barring the
exemption without reason, the provision would also likely be
unadministerable. Even with an arbitrator, NMFS would be required to
provide the interested parties with the opportunity to appeal any
arbitrator decision. Under the appeal, NMFS would be required to make a
de novo finding (i.e., an original finding without deference to the
arbitrator's decision). As a result, the use of an arbitrator may delay
the granting of the exemption. In addition, NMFS may be unable to
expeditiously process any claim, if factual matters are disputed. To
accommodate time constraints associated with contesting a party's
withholding consent to an exemption, a timeline for application for the
exemption would need to be developed. This timeline would limit
flexibility and could prevent the exemption from achieving its intended
purpose. Although IFQ holders and IPQ holders that are small entities
may benefit from the exemption in some circumstances, it might be
denied because of another party's unreasonable decision to withhold
consent. Since the provision is generally unworkable, it is unlikely
that this alternative would have provided any benefit to these small
entities. In addition, the provision might lead small entities to
pursue administrative proceedings to challenge another required party's
withholding of consent, which could be costly to small entities.
The Council also elected not to advance an alternative to remove
the West regional delivery requirements altogether. Since the West
regional delivery requirements are intended to induce the development
of processing in the region, when such development is feasible, removal
of the exemption would be inappropriate. Although this alternative
would have removed the burden of the West regional delivery
requirements from small entities holding QS, PQS, IFQ, and IPQ, the
alternative would have removed any regulatory inducement to process in
the West region. The potential future benefit of those requirements
would therefore be denied to the communities of Adak and Atka. Although
the exemption created by the preferred alternative could reduce the
potential for the development of processing capacity in
[[Page 35785]]
Adak and Atka, it will provide these two small entities with the
ability to withhold consent, as a means of inducing PQS and IPQ holders
to develop processing capacity in the West region.
Compared with the status quo, the preferred alternative, and the
associated suite of options composing the preferred alternative, best
minimizes adverse economic impacts on small entities, while providing
the most benefits to the directly regulated small entities. The action
provides greater economic benefits for participants in the WAG fishery
by providing additional processing opportunities when processing
capacity is not available in the West region. The Council chose to
recommend the preferred alternative because this action best meets the
goals of this action. This action minimizes the potential negative
impacts to small entities directly, such as unharvested TAC, when
compared to the other options, while promoting stability in a region
that has traditionally benefited from the regional delivery
requirements.
Small Entity Compliance Guide
Section 212 of the Small Business Regulatory Enforcement Fairness
Act of 1996 states that, for each rule or group of related rules for
which an agency is required to prepare a FRFA, the agency shall publish
one or more guides to assist small entities in complying with the rule,
and shall designate such publications as ``small entity compliance
guides.'' The agency shall explain the actions a small entity is
required to take to comply with a rule or group of rules. As part of
this rulemaking process, the Small Entity Compliance Guide includes the
preambles to the proposed and final rules, and is included in the BSAI
Crab Rationalization frequently asked questions, which may be obtained
from the Alaska Region Web site at https://alaskafisheries.noaa.gov/sustainablefisheries/crab/rat/progfaq.htm. Copies of the proposed rule,
and final rule also are available upon request from the Alaska Regional
Office (See ADDRESSES).
Collection-of-Information
This final rule contains a collection-of-information requirement
subject to the Paperwork Reduction Act and which has been approved by
Office of Management and Budget (OMB) under Control Number 0648-0514.
Public reporting burden per response is estimated to average 2 hours
for the Application for Annual Exemption from the Western Aleutian
Islands Golden King Crab West Regional Delivery Requirements, and 4
hours for the appeal letter if the application is denied, including the
time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing
the collection 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), by e-mail to OIRA_Submission@omb.eop.gov, or
fax to 202-395-7285. Notwithstanding any other provision of the law, no
person is required to respond to, nor shall any person be subject to a
penalty for failure to comply with, a collection-of-information subject
to the requirements of the Paperwork Reduction Act, unless that
collection-of-information displays a currently valid OMB control
number.
List of Subjects in 50 CFR Part 680
Alaska, Fisheries, Reporting and recordkeeping requirements.
Dated: June 15, 2011.
John Oliver,
Deputy Assistant Administrator for Operations, National Marine
Fisheries Service.
For the reasons set out in the preamble, 50 CFR part 680 is amended
as follows:
PART 680--SHELLFISH FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF
ALASKA
0
1. The authority citation for 50 CFR part 680 continues to read as
follows:
Authority: 16 U.S.C. 1862; Pub. L. 109-241; Pub. L. 109-479.
0
2. In Sec. 680.4, add paragraph (o) to read as follows:
Sec. 680.4 Permits.
* * * * *
(o) Exemption from Western Aleutian Islands golden king crab West
regional delivery requirements--(1) Request for an Annual Exemption
from Western Aleutian Islands golden king crab West regional delivery
requirements. The eligible contract signatories (see qualifications at
Sec. 680.4(o)(2)(i)) may submit an application to NMFS to request that
NMFS exempt West designated IFQ and West designated IPQ for the Western
Aleutian Islands golden king crab (WAG) fishery from the West regional
delivery requirements at Sec. 680.7(a)(2) and (a)(4). All eligible
contract signatories must submit one completed copy of the application
form. The application must be submitted to NMFS using one of the
following methods:
(i) Mail: Regional Administrator, c/o Restricted Access Management
Program, NMFS, P.O. Box 21668, Juneau, AK 99802-1668; or
(ii) Fax: 907-586-7354; or
(iii) Hand delivery or carrier: NMFS, Room 713, 709 West 9th
Street, Juneau, AK 99801.
(2) Application form. The application form is available on the NMFS
Alaska region Web site (https://alaskafisheries.noaa.gov) or from NMFS
at the address in paragraph (o)(1)(i) of this section. All information
fields on the application form must be accurately completed,
including--
(i) Identification of eligible contract signatories. Full name of
each eligible contract signatory; NMFS person ID; and appropriate
information that documents the signatories meet the requirements. If
the application is completed by an individual who is the authorized
representative, then documentation demonstrating the authorization must
accompany the application. Eligible contract signatories are--
(A) QS holders: Any person that holds in excess of 20 percent of
the West designated WAG QS at the time the contract was signed, or
their authorized representative.
(B) PQS holders: Any person that holds in excess of 20 percent of
the West designated WAG PQS at the time the contract was signed, or
their authorized representative.
(C) Municipalities: designated officials from both the City of Adak
and the City of Atka or an authorized representative.
(ii) Affidavit affirming master contract has been signed. Each
eligible contract signatory, as described in paragraph (o)(2)(i) of
this section, must sign and date an Affidavit affirming that a master
contract has been signed to authorize the completion of the application
to request that NMFS exempt West designated IFQ and West designated IPQ
for the WAG fishery from the West regional delivery requirements. The
eligible contract signatories must affirm on the Affidavit that all
information is true, correct, and complete to the best of his or her
knowledge and belief.
(3) Effective date. A completed application must be approved by
NMFS before any person may use WAG IFQ or IPQ with a West regional
designation outside of the West region during a crab fishing year. If
approved, the effective date of the exemption is the date the
application was approved by NMFS. Any delivery of WAG IFQ or IPQ with a
West regional designation outside of the West region prior to the
effective date of the exemption is prohibited under Sec. 680.7(a)(2)
and (a)(4).
[[Page 35786]]
(4) Duration. An exemption from West regional delivery requirements
is only valid for the remainder of the crab fishing year during which
the application was approved by NMFS. The exemption expires at the end
of the crab fishing year (June 30).
(5) Approval--(i) NMFS will approve a completed application for the
exemption from Western Aleutian Islands golden king crab West regional
delivery requirements if all eligible contract signatories meet the
requirements specified in paragraph (o)(2)(i) of this section.
(ii) The Regional Administrator will not consider an application to
have been received if the applicant cannot provide objective written
evidence that NMFS Alaska Region received it.
(iii) NMFS approval of an annual exemption from the Western
Aleutian Islands golden king crab West regional delivery requirements
will be made publicly available at the NMFS Web site at https://alaskafisheries.noaa.gov.
0
2. In Sec. 680.7, revise paragraphs (a)(2) and (a)(4) to read as
follows:
Sec. 680.7 Prohibitions
* * * * *
(a) * * *
(2) Receive CR crab harvested under an IFQ permit in any region
other than the region for which the IFQ permit is designated, unless
deliveries of West designated WAG IFQ are received pursuant to a NMFS-
approved exemption from the regional delivery requirements, as
described under Sec. 680.4(o).
* * * * *
(4) Use IPQ in any region other than the region for which the IPQ
is designated, unless West designated WAG IPQ is used pursuant to a
NMFS-approved exemption from the regional delivery requirements, as
described under Sec. 680.4(o).
* * * * *
[FR Doc. 2011-15324 Filed 6-17-11; 8:45 am]
BILLING CODE 3510-22-P