Fisheries of the Northeastern United States; Atlantic Coastal Fisheries Cooperative Management Act Provisions; American Lobster Fishery, 43379-43387 [2014-17533]

Download as PDF emcdonald on DSK67QTVN1PROD with PROPOSALS Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Proposed Rules prohibition on CQEs’ transferring and holding blocks of QS of less than a minimum size may contribute to their low participation in the CQE Program. Given these factors, the Council and NMFS determined it was appropriate to relieve the prohibitions on CQEs’ transferring or holding small blocks of QS. The Council adopted Amendment 96 on April 6, 2013. Amendment 96 would remove the restriction on CQEs’ transferring and holding small blocks of QS and allow all CQEs to transfer any size block of sablefish QS to hold for use by eligible community members. The objectives of Amendment 96 are to provide CQE communities in the GOA with increased opportunity to transfer and hold QS, and sustain participation of CQE community residents in the IFQ fisheries. In proposing Amendment 96, the Council and NMFS considered the current participation of CQE and nonCQE QS holders in the IFQ fishery, and the potential changes in access to QS, effects on the QS market, and social and economic tradeoffs. Given the reasons for low participation in the CQE Program described above, the Council and NMFS determined it is unlikely that CQEs would transfer the maximum amount of QS made available by Amendment 96. Thus, small block halibut QS would continue to be available to non-CQE participants in the IFQ sablefish fishery. The Council and NMFS determined that removing the small block restriction from the CQE Program could improve the ability of CQEs to obtain the most affordable blocks of QS without negatively impacting the ability of non-CQE fishery participants to obtain the similar size blocks of QS. An RIR/IRFA was prepared for Amendment 96 that describes the CQE Program, the purpose and need for this action, the management alternatives evaluated to address this action, the economic and socioeconomic effects of the alternatives, and the potential adverse economic impacts on small entities directly regulated by the proposed rule (see ADDRESSES). Amendment 96 and its proposed implementing regulations are designed to comply with the Magnuson-Stevens Act, the national standards, and other applicable law. The proposed amendment and implementing regulations particularly address National Standard 8, which provides that conservation and management programs shall, consistent with the conservation requirements of the Act, take into account the importance of fishery resources to communities in VerDate Mar<15>2010 18:28 Jul 24, 2014 Jkt 232001 order to provide for the sustained participation of such communities, and to the extent practicable, minimize adverse economic impacts on such communities. The IFQ Program for Pacific halibut is implemented under the authority of the Northern Pacific Halibut Act of 1982. The Council does not have a halibut fishery management plan. The Council and Secretary, however, consider the impacts of all the IFQ management measures on fishery-dependent communities. If Amendment 96 is approved, then regulations affecting the halibut and sablefish IFQ Program would be implemented in one rule. Amendment 96 is intended to promote the goals and objectives of the Magnuson-Stevens Act, the GOA FMP, and other applicable laws. Public comments are being solicited on proposed Amendment 96 to the GOA FMP through the end of the comment period stated in this notice of availability (see DATES). A proposed rule that would implement Amendment 96 will be published in the Federal Register for public comment, following NMFS’s evaluation of the proposed rule under the Magnuson-Stevens Act. Public comments, whether specifically directed to the amendment or the proposed rule, must be received, not just postmarked or otherwise transmitted, by 5 p.m., A.l.t., on the last day of the comment period (see DATES). Comments received by the end of the comment period will be considered in the approval/disapproval decision on Amendment 96. Comments received after that date will not be considered in the decision to approve or disapprove Amendment 96. Authority: 16 U.S.C. 1801 et seq. Dated: July 22, 2014. Alan D. Risenhoover, Director, Office of Sustainable Fisheries, National Marine Fisheries Service. [FR Doc. 2014–17556 Filed 7–24–14; 8:45 am] BILLING CODE 3510–22–P PO 00000 Frm 00099 Fmt 4702 Sfmt 4702 43379 DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 50 CFR Part 697 [Docket No. 130705590–4600–02] RIN 0648–BD45 Fisheries of the Northeastern United States; Atlantic Coastal Fisheries Cooperative Management Act Provisions; American Lobster Fishery National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Proposed rule; request for comments. AGENCY: Based on Atlantic States Marine Fisheries Commission recommendations, we publish this proposed rule to request public comment on potential changes to Federal American lobster regulations for Lobster Conservation Management Areas 2, 3, 4, and 5, including trap reductions in Areas 2 and 3, and broodstock measures is Areas 2, 3, 4, and 5. The proposed measures aim to reduce fishing exploitation and reduce latent effort in the trap fishery to scale the fishery to the size of the Southern New England lobster stock. This action is necessary to ensure fishery regulations for the lobster fishery in Federal waters remain consistent with the intent of the Atlantic Coastal Fisheries Cooperative Management Act. DATES: Comments must be received on or before August 25, 2014. ADDRESSES: You may submit comments on this document, identified by NOAA– NMFS–2013–0110, by any of the following methods: • Electronic Submission: Submit all electronic public comments via the Federal e-Rulemaking Portal. Go to www.regulations.gov/ #!docketDetail;D=NOAA-NMFS-20130110, click the ‘‘Comment Now!’’ icon, complete the required fields, and enter or attach your comments. • Mail: Submit written comments to John K. Bullard, Regional Administrator, NMFS, Northeast Regional Office, 55 Great Republic Drive, Gloucester, MA 01930. Mark the outside of the envelope: ‘‘Comments on American Lobster Proposed Rule.’’ Instructions: Comments sent by any other method, to any other address or individual, or received after the end of the comment period, may not be considered by NMFS. All comments received are a part of the public record SUMMARY: E:\FR\FM\25JYP1.SGM 25JYP1 43380 Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Proposed Rules and will generally be posted for public viewing on www.regulations.gov without change. All personal identifying information (e.g., name, address, etc.), confidential business information, or otherwise sensitive information submitted voluntarily by the sender will be publicly accessible. NMFS will accept anonymous comments (enter ‘‘N/ A’’ in the required fields if you wish to remain anonymous). Attachments to electronic comments will be accepted in Microsoft Word, Excel, or Adobe PDF file formats only. Standards set forth in section 301 of the Magnuson-Stevens Act. Purpose and Need for Management SUPPLEMENTARY INFORMATION: The purpose of the proposed action is to manage the American lobster fishery in a manner that maximizes resource sustainability, recognizing that Federal management occurs in consort with state management, and thus, that compatibility between state and Federal measures is crucial to the overall success of American lobster management. To achieve this purpose, we are responding to recently-approved state management measures to address poor stock conditions and persistent recruitment failure of the Southern New England (SNE) American lobster stock. Statutory Authority Background The proposed regulations would modify Federal lobster fishery management measures in the Exclusive Economic Zone (EEZ) under the authority of section 803(b) of the Atlantic Coastal Fisheries Cooperative Management Act (Atlantic Coastal Act) (16 U.S.C. 5101 et seq.), which states, in the absence of an approved and implemented Fishery Management Plan under the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act) (16 U.S.C. 1801 et seq.) and, after consultation with the appropriate fishery management council(s), the Secretary of Commerce may implement regulations to govern fishing in the EEZ, from 3 to 200 nautical miles (nm) offshore. The regulations must be: (1) Compatible with the effective implementation of an Interstate Fishery Management Plan (ISFMP) developed by the Atlantic States Marine Fisheries Commission; and (2) consistent with the National The American lobster fishery is managed by the Commission under Amendment 3 to the ISFMP for American Lobster. Since 1997, the Commission has coordinated the efforts of the states and Federal Government toward sustainable management of the American lobster fishery. We manage the portion of the fishery conducted in Federal waters from 3 to 200 miles offshore, based on management recommendations made by the Commission. The American lobster management unit is divided between three lobster stocks and seven Lobster Conservation Management Areas. Recent data indicate that the SNE American lobster stock, which includes all or part of six Areas, is at a low level of abundance and is experiencing persistent recruitment failure, caused by a combination of environmental factors and continued fishing mortality. To address the poor condition of the SNE stock, the FOR FURTHER INFORMATION CONTACT: Allison Murphy, Sector Policy Analyst, (978) 281–9122. Commission adopted Addendum XVII to Amendment 3 of the ISFMP in February of 2012. The measures in Addendum XVII are intended to reduce fishing exploitation to the SNE lobster stock by 10 percent. To further address stock rebuilding of the SNE lobster stock, Addendum XVIII was adopted in August 2012, to reduce latent effort in the trap fishery and scale the fishery to the diminished size of the SNE stock, through a series of annual trap reductions in Areas 2 and 3. For trap limits to be effective in reducing harvest and rebuilding the stock, latent effort must be addressed to prevent this effort from coming back into the fishery as the stock grows and catch rates increase. Copies of the Addenda are available on the Commission’s Web site at: https:// www.asmfc.org. Proposed Measures To achieve a 10-percent reduction in fishing exploitation of the SNE American lobster stock under Addendum XVII, the Commission recommended several effort control measures for Areas 2, 3, 4, 5, and 6 to protect broodstock and reduce the amount of American lobsters harvested from these Areas. These measures were reviewed by the Commission’s scientific Technical Committee, which found that these measures would likely achieve the desired 10-percent reduction in exploitation. This rule proposes to implement the Commission’s recommended measures, including: Minimum carapace length increases; mandatory v-notching of egg-bearing female lobsters; and seasonal fishery closures. Table 1 contains the specific measures adopted by the Commission and proposed for Federal implementation. TABLE 1—ADDENDUM XVII MANAGEMENT MEASURE CHANGES Management measures Area 2 Area 3 Area 4 V-Notching * ................................ Mandatory for legal-sized eggbearing females. n/a ......................... n/a ......................... n/a ......................... Mandatory for legal-sized eggbearing females. Mandatory for legal-sized eggbearing females. 317⁄32 in (8.97 cm) n/a ......................... n/a ............................................. February 1–March 31 ............... n/a. February 1–March 31. New Minimum Size .................... Seasonal Closure ....................... Area 5 emcdonald on DSK67QTVN1PROD with PROPOSALS * If v-notching is deemed insufficient to meet the conservation objectives, additional seasonal closures may be adopted by the Commission. While the harvest of lobsters from Areas 4 and 5 is proposed to be prohibited from February 1 through March 31, annually, we propose to allow additional time to remove and set gear during the closures. Permit holders will have a 2-week period (i.e., through February 14) to remove all lobster traps from the water. In addition, permit holders may begin to set lobster traps 1 VerDate Mar<15>2010 18:28 Jul 24, 2014 Jkt 232001 week prior to the end of the area closure (i.e., March 25). We are not proposing measures recommended by the Commission for Area 6 (mandatory vnotching and a seasonal closure) because Area 6 is contained entirely within state waters, and is therefore outside of Federal jurisdiction. Under Addendum XVIII, the Commission approved trap reductions PO 00000 Frm 00100 Fmt 4702 Sfmt 4702 for Areas 2 and 3, following separate trap reduction schedules. Consistent with the Commission’s ISFMP and in response to the Commission’s recommendations for complementary management measures to address the needs of the SNE stock, we propose to reduce qualified Area 2 trap allocations for Federal lobster permit holders by 25 percent on April 30, 2015, the last day E:\FR\FM\25JYP1.SGM 25JYP1 43381 Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Proposed Rules of fishing year (FY) 2014. Area 2 allocations would then be reduced by 5 percent at the end of each subsequent FY for 5 years, as prescribed by the Commission. Similarly, we propose to reduce Area 3 trap allocations by 5 percent on April 30, 2014, the last day of FY 2014. Area 3 allocations would then be reduced by 5 percent at the end of each subsequent FY for 4 years, as prescribed by the Commission. Table 2 includes a schedule of trap reductions, and the resulting trap allocations based on an initial trap allocation of 800 traps. TABLE 2—AREA 2 AND 3 TRAP REDUCTION SCHEDULE AND EXAMPLE ALLOCATIONS Area 2 reductions (percent) Effective year FY 2014 (present) (percent) .................................................... End of FY 2014 (Year 1) ......................................................... End of FY 2015 (Year 2) ......................................................... End of FY 2016 (Year 3) ......................................................... End of FY 2017 (Year 4) ......................................................... End of FY 2018 (Year 5) ......................................................... End of FY 2019 (Year 6) ......................................................... Depending on the timing of these actions and the readiness of the Commission’s Trap Transfer Database, Federal permit holders could transfer traps during the 2014 fishing year, with transferable allocations accounting for the first year of the trap cuts. The resulting allocations based on the firstyear reductions and any trap transfers would become effective at the start of FY 2015, or May 1, 2015. Area 2 example allocation NA 25 5 5 5 5 5 Area 3 reductions 800 600 570 542 515 490 466 Related Actions and Implementation Options In addition to these upcoming measures, we recently published a final rule (79 FR 19015; April 7, 2014), based on Commission recommendations, establishing a limited access program in two lobster conservation management areas, Area 2 and the Outer Cape Area, and implementing a lobster Trap Transfer Program in Areas 2 and 3, and the Outer Cape Area. Because the Trap Transfer Program may ease economic impacts of trap reductions and provide Area 3 example allocation NA 5 5 5 5 5 NA 800 760 722 686 652 620 NA added additional business flexibility, we propose to implement trap reductions at the same time as the Trap Transfer Program, as recommended by the Commission. Based on the analysis included in the associated draft Environmental Assessment, the order of implementation affects the resulting trap allocations. Table 3 includes an example of the resulting trap allocations for an Area 2 permit currently allocated 800 traps following the scheduled 25percent reduction and transfer in of 200 additional traps. TABLE 3—RESULTING YEAR 1 TRAP ALLOCATIONS BASED ON THE ORDER OF REDUCTIONS AND TRANSFERS Scenario 2 Initial Allocation .................................................. Step 1: ................................................................ 800 traps .......................................................... 25% trap reduction ........................................... Resulting Allocation ........................................... Step 2 ................................................................. Final Allocation in Year 1 ................................... emcdonald on DSK67QTVN1PROD with PROPOSALS Scenario 1 (preferred) 600 traps .......................................................... Trap transfer allowed, purchased 200 traps .... 800 traps .......................................................... 800 traps. Unable to transfer in traps, already at maximum. 800 traps. 25% trap reduction. 600 traps. Note that NMFS would cut 200 traps in either scenario, but that only in Scenario 1 would fishers have the potential to immediately mitigate the trap-cut impacts using trap transfers. Under Scenario 1, where trap reductions are scheduled for all allocations just prior to trap transfers, the permit holder’s potential allocation (assuming participation in the Trap Transfer Program) would result in significantly more traps than under Scenario 2, where trap transfers would not be allowed if the permit holder is at the maximum trap limit prior to trap reductions. We propose to schedule trap reductions to be effective at 11:59 p.m. on April 30, 2015, just ahead of trap transfers that have been negotiated and approved during FY 2014, but which will not become effective until 12:01 a.m. on May 1, 2015, consistent with Scenario 1. Permit holders would be able to transfer traps, based on the first round of trap cuts, during the 2014 fishing year, and the revised allocations resulting from the transfers of cut allocations would become effective at the start of the 2015 Federal fishing year on May 1, 2015. We are specifically requesting comment on this approach. VerDate Mar<15>2010 18:52 Jul 24, 2014 Jkt 232001 The effectiveness of the proposed trap cuts is dependent upon and impacted by the availability of the Trap Transfer Program identified in our recent final rule (79 FR 19015; April 7, 2014). Specifically, both industry and the Commission indicated that a trap transfer program was a necessary precursor to any trap cut program so that lobster fishers could replace their cut traps with transferred traps. In order to maintain lobster business viability, industry and the Commission sought to PO 00000 Frm 00101 Fmt 4702 Sfmt 4702 have trap cuts and trap transferability occur contemporaneously so that businesses did not have to fish at cut levels for an extended time period while waiting for trap transfers to take effect. The timing of the trap cuts and trap transfer programs, therefore, is critical. The timing of the recently approved Trap Transfer Program has not yet been set and will be dependent upon the completion and effectiveness of the Commission’s Trap Tag Database. If the Database is not completed and ready until fall 2014 (the Area 2 and Outer Cape Cod qualification and allocation program will not be completed until then and thus, we will not be able to populate the Database with final trap allocations until then), then trap transfers will not be able to be completed until sometime after that. This will compress the time schedule E:\FR\FM\25JYP1.SGM 25JYP1 43382 Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Proposed Rules within which to complete trap transfers and may impact the ability of buyers and sellers to conduct trap transfers in anticipation of the trap cuts that this rule proposes to occur at the close of the FY 2014. Given the novelty of the Trap Transfer Program, it is unclear how much time will be needed for trap sellers and buyers to meet and propose transfers, for Federal and state agencies to meet, reconcile, and approve the proposed transfers, and for permits and trap tag orders to reflect the approved transfer. Consequently, it might prove challenging for all permit holders to participate and complete their desired trap transfer transactions in this first year, which might take on added importance given the proposed trap reductions on April 30, 2015. Therefore, we request comment on the proposed April 30, 2015, trap cut date and whether alternative dates, including later dates, such as a 1-year delay, might better advance lobster management objectives. emcdonald on DSK67QTVN1PROD with PROPOSALS Comments and Responses To help determine the scope of issues to be addressed and to identify significant issues related to this action, we solicited written comments on an advanced notice of proposed rulemaking (ANPR), published on August 20, 2013 (78 FR 51131). The comment period closed on September 19, 2013. In addition to requesting comment on the Commission’s measures, we requested comment on the timing of American lobster actions currently under development. In total, four letters were submitted in response to the ANPR, three of which were applicable to these proposed measures and are responded to below. The fourth letter was not applicable to the proposed measures and is not discussed further. Comment 1: The Atlantic Offshore Lobstermen’s Association (AOLA), the Commission, and Connecticut Department of Environmental Protection (CT DEP) all commented in support of management measures being proposed. Response: We agree that implementing mandatory v-notching, a minimum carapace size increase, and seasonal closures will help to address the low level of abundance and persistent recruitment failure of the SNE American lobster stock. In addition, trap reductions are proposed to address rebuilding of the lobster stock by scaling the fishery to size of the SNE stock. For these reasons, we are proposing the full suite of measures approved by the Commission in Addenda XVII and XVIII. VerDate Mar<15>2010 18:52 Jul 24, 2014 Jkt 232001 Comment 2: The AOLA expressed their support for maintaining economic flexibility, noting that trap reductions and the Trap Transfer Program should be implemented ‘‘on an identical time schedule.’’ Response: We agree that trap reductions and the Trap Transfer Program should be implemented at the same time to mitigate any potential negative effects of trap reductions, and maintain a viable fleet, but functionally, one needs to be implemented before the other, even if mere moments before the other, simply to better account for and administer trap transfers. We are proposing to implement trap reductions to all Area 2 and 3 allocations for the end of FY 2014 (April 30, 2015, at 11:59 p.m.), followed by any trap transfers, consistent with the process discussed in our recent final rule (79 FR 19015; April 7, 2014), but would like comment on the order of implementation. Comment 3: The CT DEP recommended that the trap transfer process be conducted in a manner that allows for the fair participation of all citizens and should be done in an open forum and in conjunction with a fully functional Trap Transfer Database. Response: As explained in our recent final rule (79 FR 19015; April 7, 2014), NMFS intends to implement an open and accessible Trap Transfer Program to all eligible lobster permit holders. The Program, however, is new and we cannot predict participant behavior and response at this point. NMFS does not want to introduce variables that would engineer market behavior in response to a problem that may not exist. NMFS intends to monitor its Trap Transfer Program and agrees with the commenter that the agency should work with the Commission to investigate ways to make available transferable trap allocations known and accessible to participants. Classification This proposed rule has been determined to be not significant for the purposes of Executive Order (E.O.) 12866. This proposed rule does not contain policies with federalism implications as defined in E.O. 13132. The proposed measures are based upon the American Lobster ISFMP that was created by and is overseen by the states. The proposed measures are a result of Addenda XVII and XVIII, which was approved by the states, recommended by the states through the Commission for Federal adoption, and is in place at the state level. Consequently, NMFS has consulted with the states in the creation of the ISFMP, which makes recommendations for Federal action. PO 00000 Frm 00102 Fmt 4702 Sfmt 4702 Additionally, these proposed measures would not pre-empt state law and would do nothing to directly regulate the states. This proposed rule does not contain a collection of information requirement subject to review and approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act (PRA). The Regulatory Flexibility Act (RFA), 5 U.S.C. 601–612, requires agencies to assess the economic impacts of their proposed regulations on small entities. The objective of the RFA is to consider the impacts of a rulemaking on small entities, and the capacity of those affected by regulations to bear the direct and indirect costs of regulation. We prepared an Initial Regulatory Flexibility Analysis (IRFA) as required by section 603 of the RFA. The IRFA describes the economic impact this proposed rule, if adopted, would have on small entities. The proposed management measures would affect small entities engaged in several different aspects of the lobster fishery. The affected entities include Federal lobster permit holders fishing in SNE, specifically Areas 2, 3, 4 and 5. Description of the Reasons Why Action By NMFS Is Being Considered Recent data indicate that the SNE American lobster stock, which includes all or part of six Areas, is at a low level of abundance and is experiencing persistent recruitment failure, caused by a combination of environmental factors and continued fishing mortality. To address the poor condition of the SNE stock, the Commission adopted Addenda XVII and XVIII to Amendment 3 of the ISFMP, approving a combination of trap cuts and broodstock measures. The Commission Lobster Board’s Plan Development Team has confirmed that the affected states have already issued regulations that are compliant with Addendum XVII measures. To the extent practicable, we aim to implement regulations consistent with Commission recommendations, and those promulgated by our partner states. The Objectives and Legal Basis for the Proposed Action The objective of the proposed action is to reduce fishing exploitation and reduce latent effort in the trap fishery to scale the fishery to the size of the Southern New England (SNE) lobster stock. The legal basis for the proposed action is the ISFMP for American lobster and promulgating regulations at 50 CFR part 697. E:\FR\FM\25JYP1.SGM 25JYP1 43383 Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Proposed Rules emcdonald on DSK67QTVN1PROD with PROPOSALS Description and Estimate of the Number of Small Entities to Which the Proposed Rule Would Apply The RFA requires agencies to assure that decision makers consider disproportionate and/or significant adverse economic impacts of their proposed regulations on small entities. This section provides an assessment and discussion of the potential economic impacts of the proposed action, as required of the RFA. The IRFA is designed to assess the impacts that various regulatory alternatives would have on small entities, including small businesses, and to determine ways to minimize adverse impacts. Under the RFA, an agency does not need to conduct an IRFA or Final Regulatory Flexibility Analysis (FRFA) if a certification can be made that the proposed rule, if adopted, will not have a significant adverse economic impact on a substantial number of small entities. The purpose of the RFA is to inform the agency, as well as the public, of the expected economic impacts of the various alternatives contained in the proposed rulemaking and to ensure that the agency considers alternatives that minimize the expected impacts while meeting the goals and objectives of the regulatory documents and applicable statutes. The recent addition of vessel owner information to the permit data allows us to better define fishing ‘‘businesses.’’ The vessel ownership data identifies all the individual people who own fishing vessels. Vessels can be grouped together according to common owners, which can then be treated as a fishing business, for purposes of RFA analyses. Revenues summed across all vessels in the group and the activities that generate those revenues form the basis for determining whether the entity is a large or small business. Ownership data are available for the potentially impacted by the proposed action from 2010 onward. The RFA recognizes and defines three kinds of small entities: Small businesses; small organizations; and small governmental jurisdictions. The Small Business Administration (SBA) size standards define whether a business entity is small and, thus, eligible for Government programs and preferences reserved for ‘‘small business’’ concerns. Size standards have been established (and recently modified) for all for-profit economic activities or industries in the North American Industry Classification System (NAICS). Designations of large and small entities were attached based on each entity’s three-year average VerDate Mar<15>2010 18:28 Jul 24, 2014 Jkt 232001 landings. For entities landing a plurality of revenue in shellfish (NAICS 111412), the threshold for ‘‘large’’ is $5.0 million. For entities landing a plurality of revenue in finfish (NAICS 111411), the threshold for ‘‘large’’ is $19.0 million. The number of directly regulated entities for purposes of analyzing the economic impacts and describing those that are small businesses is selected based on permits held. Since this proposed regulation applies only to the businesses which hold permits in 4 areas managed by the conservation measures being amended, only those business entities are evaluated. Business entities that do not own vessels with directly regulated permits are not described. There are 379 distinct entities identified as directly regulated entities in this action, those that held permits in Areas 2, 3, 4 or 5, or some combination. There were 373 entities that were classified as ‘‘small,’’ while the remaining 6 were classified as ‘‘large.’’ All 6 of the large businesses were designated as shellfish. Until further guidance is provided, for RFA analyses, business entities are classified into the SBA defined categories based on which activity, in the most recent year, produced the greatest gross revenue. An advantage of this approach is that entities are defined as large or small one time for the duration of a year, maintaining action to action consistency. As far as determining whether a business is large or small, once its major activity is determined (based on 2012) the average total revenue from all activities over the most recent three years (2010–2012) is applied against the appropriate threshold. Of the 373 small entities, 180 are considered a shellfish business, 121 are considered a finfish business, 3 are considered a for-hire business, and 69 could not be identified as either because even though they had a lobster permit (in Areas 1, 2, 3 or 4) they had no earned revenue from fishing activity. Because they had no revenue in the last 3 years, they would be considered small by default, but would also be considered as latent effort. The entity definition used by the Social Sciences Branch uses only unique combinations of owners. That is, entities are not combined if they have a shared owner. Section 3 of the SBA defines affiliation as: Affiliation may arise among two or more persons with an identity of interest. Individuals or firms that have identical or substantially identical business or economic interests (such as family members, individuals or firms with common investments, or PO 00000 Frm 00103 Fmt 4702 Sfmt 4702 firms that are economically dependent through contractual or other relationships) may be treated as one party with such interests aggregated (13 CFR 121.103(f)). TABLE 4—ESTIMATE OF THE NUMBER OF SMALL ENTITIES Entity type Number of entities Shellfish ......... Finfish ............ No revenue ... For-hire .......... 180 121 69 3 Total ........... Average entity revenue $429,000. $363,000. 0. confidential. 373 Table 4 describes the number of regulated small entities and all known revenue from all fishing related activity. Many of these ownership entities maintain diversified harvest portfolios, obtaining gross sales from many fisheries and not dependent on any one. However, not all are equally diversified. Those that depend most heavily on sales from harvesting species impacted directly by the proposed action are most likely to be affected. By defining dependence as deriving greater than 50percent of gross sales from sales of lobster, we are able to identify those ownership groups most likely to be impacted by the proposed regulations. Using this threshold, we find that of the 373 small regulated entities, 180 of them are lobster-dependent. A person who does not currently own a fishing vessel, but who has owned a qualifying vessel that has sunk, been destroyed, or transferred to another person, must apply for and receive a ‘‘confirmation of history’’ (CPH) if the fishing and permit history of such vessel has been retained lawfully by the applicant. Issuance of a valid CPH preserves the eligibility of the applicant to apply for a permit for a replacement vessel based on the qualifying vessel’s fishing and permit history at a subsequent time. The ownership data based on the permits held does not contain information on CPH permits. A total of 23 CPH’s exist for lobster Areas 2, 3, and 4: 8 for Area 1, 9 for Area 3, and 6 for Area 4. One CPH qualifies for a permit in Area 2 and 3, while one CPH qualifies in all 3 of these areas. While considering the number of affected entities, it is also worth noting that the vast majority of permit holders are either dually permitted (i.e., issued both a federal and state permit) or otherwise subject to a state’s lobster regulations. Accordingly, most all Federal permit holders will be required to comply with the proposed measures E:\FR\FM\25JYP1.SGM 25JYP1 43384 Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Proposed Rules emcdonald on DSK67QTVN1PROD with PROPOSALS even if NMFS does not implement these measures. In other words, these federal permit holders will be obligated to comply with these measures and responsibilities attendant to their state permit regardless of whether these same measures are also required under their Federal permit. Descriptions of Significant Alternatives Which Minimize Any Significant Economic Impact of Proposed Action on Small Entities Due to the expected high rate of dual permitting and that the states are already compliant with broodstock measures, the majority of Federal vessels must already abide by these requirements, and therefore have already been impacted. For those vessels not dually permitted, broodstock measures can be expected to have a limited economic impact to permit holders. Because the proposed regulations are consistent with Commission recommendations and current state regulations, developing alternative measures would likely create inconsistencies and regulatory disconnects with the states and would therefore, likely worsen potential economic impacts. Therefore, no alternatives to broodstock measures are considered. Because the Trap Transfer Program may ease economic impacts of trap reductions and provide added additional business flexibility, we propose to implement trap reductions at roughly the same time, or as close as possible, as the Trap Transfer Program, as recommended by the Commission. In other words, we have timed the trap reductions so that fishers will be able to activate their transferred traps moments after their allocation is reduced. In this way, fishers will not have to fish with reduced traps while waiting for their transferred traps to become allocated. This could mitigate the impacts of the trap reductions because fishers would be able to transfer traps based on their reduced allocation, prior to the cuts becoming effective. They could buy traps before the cuts take effect and minimize the impacts to their businesses resulting from the trap reductions. To further mitigate trap reductions, a permit holder could also choose to tend his or her remaining traps more often in an attempt to harvest more lobsters and recover income lost from the trap reductions. When considered in conjunction with trap transferability, permit holders remaining in the fishery may be able to transfer in traps up to their original trap cap (i.e., transfer in traps to make up for traps lost through trap reductions). VerDate Mar<15>2010 18:28 Jul 24, 2014 Jkt 232001 Though this will require capital, the ability to acquire additional traps may help another set of permit holders compensate for trap reductions. Finally, the permit holders who elect to leave the fishery and transfer out traps will be compensated immediately by those fishers purchasing traps. Given the novelty of trap transferability, it is unclear how much time will be needed for trap sellers and buyers to meet and propose transfers, for Federal and state agencies to meet, reconcile, and approve the proposed transfers, and for permits and trap tag orders to reflect the approved transfer. Consequently, it might prove challenging for all permit holders to participate and complete their desired trap transfer transactions in this first year, which might take on added importance given the proposed trap reductions on April 30, 2015. On the other hand, a delay could exacerbate the condition of the poor stock which could also result in losses in revenue over time. Therefore, we are requesting comment on the proposed April 30, 2015, trap cut date and whether alternative dates, including later dates, such as a 1-year delay, might better advance lobster management objectives. Should the Commission and our state partners suggest a delay and/or alternative approach, we would develop an alternative formally analyzing these impacts. At present, however, such an alternative fails to accomplish the stated objectives of the rule insofar as unilateral divergence from the Commission’s recommendations would create regulatory disconnects with the states and potentially undermine the Lobster Plan. As discussed in greater detail in the EA, we considered, but rejected two other alternatives, where trap reductions are theoretically approved out-of-sync (i.e., either 5–6 months before or 5–6 months after) with trap transfers. Under either of these scenarios, some permit holders would be prevented from participating in the Trap Transfer Program following trap cuts, resulting in potential loss of economic opportunity, until additional traps could be required. For permit holders whose business model is predicated on fishing at the trap cap, they would be forced to fish at reduced and presumably unprofitable levels for nearly half the fishing year. Because these alternatives may increase economic impacts, the measures proposed in this action are the alternatives which minimize any significant economic impact. PO 00000 Frm 00104 Fmt 4702 Sfmt 4702 Reporting, Recordkeeping and Other Compliance Requirements This action contains no new collection-of-information, reporting, or recordkeeping requirements. Duplication, Overlap or Conflict With Other Federal Rules This action does not duplicate, overlap, or conflict with any other Federal Laws. List of Subjects in 50 CFR Part 697 Fisheries, fishing. Dated: July 21, 2014. Samuel D. Rauch III, Deputy Assistant Administrator for Regulatory Programs, National Marine Fisheries Service. For the reasons set out in the preamble, 50 CFR, part 697 is proposed to be amended as follows: PART 697—ATLANTIC COASTAL FISHERIES COOPERATIVE MANAGEMENT 1. The authority citation for part 697 continues to read as follows: ■ Authority: 16 U.S.C. 5101 et seq. 2. In § 697.2, the definitions of ‘‘Federal Area 1 Limited Access Program,’’ ‘‘Federal Area 2 Limited Access Program,’’ ‘‘Federal Area 3 Limited Access Program,’’ ‘‘Federal Area 4 Limited Access Program,’’ ‘‘Federal Area 5 Limited Access Program,’’ and ‘‘Federal Outer Cape Area Limited Access Program’’ are added in alphabetical order to read as follows: ■ § 697.2 Definitions. * * * * * Federal Area 1 Limited Access Program means the limited access program restricts trap fishing in Area 3 to those federal lobster permits with qualified and allocated Area 1 traps, as identified in these regulations at § 697.4(a)(7)(ii). Federal Area 2 Limited Access Program means the limited access program restricts trap fishing in Area 3 to those federal lobster permits with qualified and allocated Area 2 traps, as identified in these regulations at § 697.4(a)(7)(ii). Federal Area 3 Limited Access Program means the limited access program restricts trap fishing in Area 3 to those federal lobster permits with qualified and allocated Area 3 traps, as identified in these regulations at § 697.4(a)(7)(ii). Federal Area 4 Limited Access Program means the limited access program restricts trap fishing in Area 3 E:\FR\FM\25JYP1.SGM 25JYP1 Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Proposed Rules to similarly remove their lobster gear from the other designated management areas. (4) Transiting Outer Cape Area. Federal lobster permit holders may possess lobster traps on their vessels in the Outer Cape Area during the seasonal closure only if: (i) The trap gear is stowed; and (ii) The vessel is transiting the Outer Cape Area. For the purposes of this section, transiting shall mean passing through the Outer Cape Area without stopping to reach a destination outside the Outer Cape Area. (5) The Regional Administrator may authorize a permit holder or vessel owner to haul ashore lobster traps from the Outer Cape Area during the seasonal closure without having to engage in the exempted fishing process in § 697.22, if the permit holder or vessel owner can establish the following: § 697.7 Prohibitions (i) That the lobster traps were not able * * * * * to be hauled ashore before the seasonal (c) * * * closure due to incapacity, vessel/ (1) * * * (xxx) Seasonal Closures The following mechanical inoperability, and/or poor weather; and areas are closed seasonally to lobster (ii) That all lobsters caught in the fishing. (A) Outer Cape Area seasonal closure. subject traps will be immediately returned to the sea. The Federal waters of the Outer Cape (iii) The Regional Administrator may Area shall be closed to lobster fishing condition this authorization as with traps by Federal lobster permit appropriate in order to maintain the holders from January 15 through March overall integrity of the closure. 15. (B) Area 4 seasonal closure. The (1) Lobster fishing with traps is Federal waters of Area 4 shall be closed prohibited in the Outer Cape Area to lobster fishing from February 1 during this seasonal closure. Federal through March 31. trap fishers are prohibited from (1) Lobster fishing is prohibited in possessing or landing lobster taken from the Outer Cape Area during the seasonal Area 4 during this seasonal closure. Federal lobster permit holders are closure. prohibited from possessing or landing (2) All lobster traps must be removed lobster taken from Area 4 during the from Outer Cape Area waters before the start of the seasonal closure and may not seasonal closure. (2) All lobster traps must be removed be re-deployed into Area waters until from Area 4 waters before the start of after the seasonal closure ends. Federal the seasonal closure and may not be retrap fishers are prohibited from setting, deployed into Area waters until after the hauling, storing, abandoning or in any seasonal closure ends. Federal trap way leaving their traps in Outer Cape fishers are prohibited from setting, Area waters during this seasonal hauling, storing, abandoning or in any closure. Federal lobster permit holders way leaving their traps in Area 4 waters are prohibited from possessing or during this seasonal closure. The carrying lobster traps aboard a vessel in following exceptions apply to the Area Outer Cape Area waters during this 4 seasonal closure: seasonal closure unless the vessel is (i) Lobster fishers will have a 2-week transiting through the Outer Cape Area grace period from February 1 to pursuant to paragraph (c)(1)(xxx)(A)(4) February 14 to remove all lobster gear of this section. from the closed area. During this grace (3) The Outer Cape Area seasonal period, any hauled trap must not be reclosure relates only to the Outer Cape set and must be removed from the area. Area. The restrictive provisions of § 697.3 and § 697.4(a)(7)(v) do not apply Any lobsters taken from traps during this grace period must be returned to the to this closure. Federal lobster permit sea immediately and any Federal lobster holders with an Outer Cape Area permit holder retrieving Area 4 traps designation and another Lobster during this grace period is prohibited Management Area designation on their from possessing on board any lobster Federal lobster permits would not have emcdonald on DSK67QTVN1PROD with PROPOSALS to those federal lobster permits with qualified and allocated Area 4 traps, as identified in these regulations at § 697.4(a)(7)(ii). Federal Area 5 Limited Access Program means the limited access program restricts trap fishing in Area 3 to those federal lobster permits with qualified and allocated Area 5 traps, as identified in these regulations at § 697.4(a)(7)(ii). Federal Outer Cape Cod Area Limited Access Program means the limited access program restricts trap fishing in Area 3 to those federal lobster permits with qualified and allocated Outer Cape Cod Area traps, as identified in these regulations at § 697.4(a)(7)(ii). * * * * * ■ 3. In § 697.7, revise paragraphs (c)(1)(xxx) and (c)(3)(iii), to read as follows: VerDate Mar<15>2010 18:28 Jul 24, 2014 Jkt 232001 PO 00000 Frm 00105 Fmt 4702 Sfmt 4702 43385 regardless of the area from which the lobster may have been harvested. (ii) Lobster fishers have a 1-week grace period from March 24 to March 31 to re-set gear in the closed area. During this grace period, re-set traps may not be re-hauled and any Federal lobster permit holder re-setting Area 4 traps during this grace period is prohibited from possessing on board any lobster regardless of the area from which the lobster may have been harvested. (3) Federal lobster permit holders are prohibited from possessing or carrying lobster traps aboard a vessel in Area 4 waters during this seasonal closure unless the vessel operating subject to the grace period identified in paragraph (ii) or is transiting through Area 4 pursuant to paragraph (c)(1)(xxx)(B)(5) of this section. (4) The Area 4 seasonal closure relates only to Area 4. The restrictive provisions of § 697.3 and § 697.4(a)(7)(v) do not apply to this closure. Federal lobster permit holders with an Area 4 designation and another Lobster Management Area designation on their Federal lobster permits would not have to similarly remove their lobster gear from the other designated management areas. (5) Transiting Area 4. Federal lobster permit holders may possess lobster traps on their vessels in Area 4 during the seasonal closure only if: (i) The trap gear is stowed; and (ii) The vessel is transiting the Area 4. For the purposes of this section, transiting shall mean passing through Area 4 without stopping, to reach a destination outside Area 4. (6) The Regional Administrator may authorize a permit holder or vessel owner to haul ashore lobster traps from Area 4 during the seasonal closure without having to engage in the exempted fishing process in § 697.22, if the permit holder or vessel owner can establish the following: (i) That the lobster traps were not able to be hauled ashore before the seasonal closure due to incapacity, vessel/ mechanical inoperability, and/or poor weather; and (ii) That all lobsters caught in the subject traps will be immediately returned to the sea. (iii) The Regional Administrator may condition this authorization as appropriate in order to maintain the overall integrity of the closure. (C) Area 5 seasonal closure. The Federal waters of Area 5 shall be closed to lobster fishing from February 1 through March 31. (1) Lobster fishing is prohibited in Area 5 during this seasonal closure. Federal lobster permit holders are E:\FR\FM\25JYP1.SGM 25JYP1 emcdonald on DSK67QTVN1PROD with PROPOSALS 43386 Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Proposed Rules prohibited from possessing or landing lobster taken from Area 5 during the seasonal closure. (2) All lobster traps must be removed from Area 5 waters before the start of the seasonal closure and may not be redeployed into Area waters until after the seasonal closure ends. Federal trap fishers are prohibited from setting, hauling, storing, abandoning or in any way leaving their traps in Area 5 waters during this seasonal closure. The following exceptions apply to the Area 5 seasonal closure: (i) Lobster fishers will have a 2-week grace period from February 1 to February 14 to remove all lobster gear from the closed area. During this grace period, any hauled trap must not be reset and must be removed from the area. Any lobsters taken from traps during this grace period must be returned to the sea immediately and any Federal lobster permit holder retrieving Area 4 traps during this grace period is prohibited from possessing on board any lobster regardless of the area from which the lobster may have been harvested. (ii) Lobster fishers have a 1-week grace period from March 24 to March 31 to re-set gear in the closed area. During this grace period, re-set traps may not be re-hauled and any Federal lobster permit holder re-setting Area 5 traps during this grace period is prohibited from possessing on board any lobster regardless of the area from which the lobster may have been harvested. (3) Federal lobster permit holders are prohibited from possessing or carrying lobster traps aboard a vessel in Area 5 waters during this seasonal closure unless the vessel operating subject to the grace period identified in paragraph (ii) or is transiting through Area 5 pursuant to paragraph (c)(1)(xxx)(C)(5) of this section. (4) The Area 5 seasonal closure relates only to Area 5. The restrictive provisions of § 697.3 and § 697.4(a)(7)(v) do not apply to this closure. Federal lobster permit holders with an Area 5 designation and another Lobster Management Area designation on their Federal lobster permits would not have to similarly remove their lobster gear from the other designated management areas. (5) Transiting Area 5. Federal lobster permit holders may possess lobster traps on their vessels in Area 5 during the seasonal closure only if: (i) The trap gear is stowed; and (ii) The vessel is transiting the Area 5. For the purposes of this section, transiting shall mean passing through Area 5 without stopping, to reach a destination outside Area 5. VerDate Mar<15>2010 18:28 Jul 24, 2014 Jkt 232001 (6) The Regional Administrator may authorize a permit holder or vessel owner to haul ashore lobster traps from Area 5 during the seasonal closure without having to engage in the exempted fishing process in § 697.22, if the permit holder or vessel owner can establish the following: (i) That the lobster traps were not able to be hauled ashore before the seasonal closure due to incapacity, vessel/ mechanical inoperability, and/or poor weather; and (ii) That all lobsters caught in the subject traps will be immediately returned to the sea. (iii) The Regional Administrator may condition this authorization as appropriate in order to maintain the overall integrity of the closure. * * * * * (c) * * * (3) * * * (iii) The possession of egg-bearing female lobsters in violation of the requirements set forth in § 697.20(d), vnotched female American lobsters in violation of the v-notch requirements set forth in § 697.20(g), American lobsters that are smaller than the minimum sizes set forth in § 697.20(a), American lobsters that are larger than the maximum carapace sizes set forth in § 697.20(b), or lobster parts, possessed at or prior to the time when the aforementioned lobsters or parts are received by a dealer, will be prima facie evidence that such American lobsters or parts were taken or imported in violation of these regulations. A preponderance of all submitted evidence that such American lobsters were harvested by a vessel not holding a permit under this part and fishing exclusively within state or foreign waters will be sufficient to rebut the presumption. * * * * * ■ 4. In § 697.19, revise paragraphs (b) through (k) and add (l) to read as follows: § 697.19 Trap limits and trap tag requirements for vessels fishing with lobster traps. * * * * * (b) Area 2 trap limits. The Area 2 trap limit is 800 traps. Federally permitted lobster fishing vessels may only fish with traps that have been previously qualified and allocated into Area 2 by the Regional Administrator, as part of the Federal Area 2 Limited Access Program. This allocation may be modified by trap cuts and/or trap transfers, but in no case shall the allocation exceed the trap limit. (c) Area 3 trap limits. The Area 3 trap limit is 1,945 traps. Federally permitted PO 00000 Frm 00106 Fmt 4702 Sfmt 4702 lobster fishing vessels may only fish with traps that have been previously qualified and allocated into Area 3 by the Regional Administrator, as part of the Federal Area 3 Limited Access Program. This allocation may be modified by trap cuts and/or trap transfers, but in no case shall the allocation exceed the trap limit. (d) Area 4 trap limits. The Area 4 trap limit is 1,440 traps. Federally permitted lobster fishing vessels may only fish with traps that have been previously qualified and allocated into Area 4 by the Regional Administrator, as part of the Federal Area 4 Limited Access Program. This allocation may be modified by trap cuts and/or trap transfers, but in no case shall the allocation exceed the trap limit. (e) Area 5 trap limits. The Area 5 trap limit is 1,440 traps, unless the vessel is operating under an Area 5 Trap Waiver permit issued under § 697.26. Federally permitted lobster fishing vessels may only fish with traps that have been previously qualified and allocated into Area 5 by the Regional Administrator, as part of the Federal Area 5 Limited Access Program. This allocation may be modified by trap cuts and/or trap transfers, but in no case shall the allocation exceed the trap limit. (f) Outer Cape Area. The Outer Cape Area trap limit is 800 traps. Federally permitted lobster fishing vessels may only fish with traps that have been previously qualified and allocated into the Outer Cape Area by the Regional Administrator, as part of the Federal Outer Cape Cod Area Limited Access Program. This allocation may be modified by trap cuts and/or trap transfers, but in no case shall the allocation exceed the trap limit. (g) Trap Cuts. Trap allocations shall be reduced in the following Areas as set forth below: (1) Area 2 allocations shall be reduced according to the following schedule: Area 2 reductions (percent) Effective year of trap reduction April April April April April April 30, 30, 30, 30, 30, 30, 2015, 2016, 2017, 2018, 2019, 2020, 11:59 11:59 11:59 11:59 11:59 11:59 p.m. p.m. p.m. p.m. p.m. p.m. .... .... .... .... .... .... 25 5 5 5 5 5 (2) Area 3 allocations shall be reduced according to the following schedule: Effective year of trap reduction April 30, 2015, 11:59 p.m. .... April 30, 2016, 11:59 p.m. .... E:\FR\FM\25JYP1.SGM 25JYP1 Area 3 reductions (percent) 5 5 Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Proposed Rules or haul back lobster traps in any portion of any lobster management area that do not have a valid, federally recognized trap tag permanently attached to the April 30, 2017, 11:59 p.m. .... 5 trap bridge or central cross-member. April 30, 2018, 11:59 p.m. .... 5 (k) Maximum lobster trap tags April 30, 2019, 11:59 p.m. .... 5 authorized for direct purchase. In any fishing year, the maximum number of (h) Lobster trap limits for vessels tags authorized for direct purchase by fishing or authorized to fish in more each permit holder is the applicable trap than one EEZ management area. A limit specified in paragraphs (a) through vessel owner who elects to fish in more (f) of this section plus an additional 10 than one EEZ Management Area is percent to cover trap loss. restricted to the lowest cap limit of the (l) EEZ Management Area 5 trap areas and may not fish with, deploy in, waiver exemption. Any vessel issued an possess in, or haul back from any of Area 5 Trap Waiver permit under those elected management areas more § 697.4(p) is exempt from the provisions lobster traps than the lowest number of of this section. lobster traps allocated to that vessel for * * * * * any one elected management area. ■ 5. In § 697.20, revise paragraphs (a)(5) (i) Conservation equivalent trap limits through (a)(8), (b)(5) and (b)(6), (d)(1) in New Hampshire state waters. and (d)(2), (g)(3) and (g)(4), and remove Notwithstanding any other provision, paragraphs (b)(7) and (b)(8) and (g)(5) any vessel with a Federal lobster permit through (g)(8) to read as follows: and a New Hampshire Full Commercial * * * * * Lobster license may fish up to a maximum of 1,200 lobster traps in New § 697.20 Size, harvesting and landing Hampshire state waters, to the extent requirements. authorized by New Hampshire lobster (a) * * * fishery regulations. However, such (5) Through April 30, 2015, the vessel may not fish, possess, deploy, or minimum carapace length for all haul back more than 800 lobster traps in American lobsters harvested in or from the Federal waters of EEZ Nearshore the Offshore Management Area 3 is 31⁄2 Management Area 1, and may not fish inches (8.89 cm). more than a combined total of 1,200 (6) Through April 30, 2015, the lobster traps in the Federal and New minimum carapace length for all Hampshire state waters portions of EEZ American lobsters landed, harvested or Nearshore Management Area 1. possessed by vessels issued a Federal (j) Trap Tag Requirements for vessels limited access American lobster permit fishing with lobster traps. All lobster fishing in or electing to fish in EEZ traps in Federal waters must have a Offshore Management Area 3 is 31⁄2 valid Federal lobster trap tag inches (8.89 cm). permanently attached to the trap bridge (7) Effective May 1, 2015, the or central cross-member. Federal lobster minimum carapace length for all permit holders are eligible to receive American lobsters harvested in or from Area 1 trap tags only if the Regional the Offshore Management Area 3 is Administrator has qualified the permit 317⁄32 inches (8.97 cm). (8) Effective May 1, 2015, the to fish in Area 1 as part of the Federal minimum carapace length for all Area 1 Limited Entry Program. Federal American lobsters landed, harvested, or lobster permit holders are eligible to receive Area 2, 3, 4, 5 and/or Outer Cape possessed by vessels issued a Federal limited access American lobster permit Cod Area trap tags only if the Regional fishing in or electing to fish in EEZ Administrator has allocated those traps as part of the Federal Area 2, 3, 4, 5 and/ Offshore Management Area 3 is 317⁄32 or Outer Cape Cod Area Limited Access inches (8.97 cm). Program. Any vessel with a Federal * * * * * lobster permit may not possess, deploy, (b) * * * emcdonald on DSK67QTVN1PROD with PROPOSALS Effective year of trap reduction VerDate Mar<15>2010 18:28 Jul 24, 2014 Area 3 reductions (percent) Jkt 232001 PO 00000 Frm 00107 Fmt 4702 Sfmt 9990 43387 (5) The maximum carapace length for all American lobster harvested in or from EEZ Offshore Management Area 3 or the Outer Cape Lobster Management Area is 63⁄4 inches (17.15 cm). (6) The maximum carapace length for all American lobster landed, harvested, or possessed by vessels issued a Federal limited access American lobster permit fishing in or electing to fish in EEZ Offshore Management Area 3 or the Outer Cape Lobster Management Area is 63⁄4 inches (17.15 cm). (d) * * * (1) Any berried female lobster harvested in or from the EEZ must be returned to the sea immediately. If any berried female lobster is harvested in or from the EEZ Nearshore Management Areas 1, 2, 4, or 5, or in or from the EEZ Offshore Management Area 3, north of 42° 30′ North latitude, it must be vnotched before being returned to sea immediately. (2) Any berried female lobster harvested or possessed by a vessel issued a Federal limited access lobster permit must be returned to the sea immediately. If any berried female lobster is harvested in or from the EEZ Nearshore Management Areas 1, 2, 4, or 5, or in or from the EEZ Offshore Management Area 3, north of 42°30′ North latitude, it must be v-notched before being returned to sea immediately. * * * * * (g) * * * (3) No person may possess any female lobster possessing a standard v-shaped notch harvested in or from the EEZ Nearshore Management Area 2, 4, 5, 6, Outer Cape Area or the EEZ Offshore Management Area 3. (4) No vessel, owner, or operator issued a Federal limited access American lobster permit fishing in or electing to fish in the EEZ Nearshore Management Area 2, 4, 5, 6, Outer Cape Area or the EEZ Offshore Management Area 3 may land, harvest or possess any female lobster possessing a standard vshaped notch. [FR Doc. 2014–17533 Filed 7–24–14; 8:45 am] BILLING CODE 3510–22–P E:\FR\FM\25JYP1.SGM 25JYP1

Agencies

[Federal Register Volume 79, Number 143 (Friday, July 25, 2014)]
[Proposed Rules]
[Pages 43379-43387]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-17533]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 697

[Docket No. 130705590-4600-02]
RIN 0648-BD45


Fisheries of the Northeastern United States; Atlantic Coastal 
Fisheries Cooperative Management Act Provisions; American Lobster 
Fishery

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

ACTION: Proposed rule; request for comments.

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

SUMMARY: Based on Atlantic States Marine Fisheries Commission 
recommendations, we publish this proposed rule to request public 
comment on potential changes to Federal American lobster regulations 
for Lobster Conservation Management Areas 2, 3, 4, and 5, including 
trap reductions in Areas 2 and 3, and broodstock measures is Areas 2, 
3, 4, and 5. The proposed measures aim to reduce fishing exploitation 
and reduce latent effort in the trap fishery to scale the fishery to 
the size of the Southern New England lobster stock. This action is 
necessary to ensure fishery regulations for the lobster fishery in 
Federal waters remain consistent with the intent of the Atlantic 
Coastal Fisheries Cooperative Management Act.

DATES: Comments must be received on or before August 25, 2014.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2013-0110, by any of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to 
www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2013-0110, click the 
``Comment Now!'' icon, complete the required fields, and enter or 
attach your comments.
     Mail: Submit written comments to John K. Bullard, Regional 
Administrator, NMFS, Northeast Regional Office, 55 Great Republic 
Drive, Gloucester, MA 01930. Mark the outside of the envelope: 
``Comments on American Lobster Proposed Rule.''
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period, 
may not be considered by NMFS. All comments received are a part of the 
public record

[[Page 43380]]

and will generally be posted for public viewing on www.regulations.gov 
without change. All personal identifying information (e.g., name, 
address, etc.), confidential business information, or otherwise 
sensitive information submitted voluntarily by the sender will be 
publicly accessible. NMFS will accept anonymous comments (enter ``N/A'' 
in the required fields if you wish to remain anonymous). Attachments to 
electronic comments will be accepted in Microsoft Word, Excel, or Adobe 
PDF file formats only.

FOR FURTHER INFORMATION CONTACT: Allison Murphy, Sector Policy Analyst, 
(978) 281-9122.

SUPPLEMENTARY INFORMATION: 

Statutory Authority

    The proposed regulations would modify Federal lobster fishery 
management measures in the Exclusive Economic Zone (EEZ) under the 
authority of section 803(b) of the Atlantic Coastal Fisheries 
Cooperative Management Act (Atlantic Coastal Act) (16 U.S.C. 5101 et 
seq.), which states, in the absence of an approved and implemented 
Fishery Management Plan under the Magnuson-Stevens Fishery Conservation 
and Management Act (Magnuson-Stevens Act) (16 U.S.C. 1801 et seq.) and, 
after consultation with the appropriate fishery management council(s), 
the Secretary of Commerce may implement regulations to govern fishing 
in the EEZ, from 3 to 200 nautical miles (nm) offshore. The regulations 
must be: (1) Compatible with the effective implementation of an 
Interstate Fishery Management Plan (ISFMP) developed by the Atlantic 
States Marine Fisheries Commission; and (2) consistent with the 
National Standards set forth in section 301 of the Magnuson-Stevens 
Act.

Purpose and Need for Management

    The purpose of the proposed action is to manage the American 
lobster fishery in a manner that maximizes resource sustainability, 
recognizing that Federal management occurs in consort with state 
management, and thus, that compatibility between state and Federal 
measures is crucial to the overall success of American lobster 
management. To achieve this purpose, we are responding to recently-
approved state management measures to address poor stock conditions and 
persistent recruitment failure of the Southern New England (SNE) 
American lobster stock.

Background

    The American lobster fishery is managed by the Commission under 
Amendment 3 to the ISFMP for American Lobster. Since 1997, the 
Commission has coordinated the efforts of the states and Federal 
Government toward sustainable management of the American lobster 
fishery. We manage the portion of the fishery conducted in Federal 
waters from 3 to 200 miles offshore, based on management 
recommendations made by the Commission.
    The American lobster management unit is divided between three 
lobster stocks and seven Lobster Conservation Management Areas. Recent 
data indicate that the SNE American lobster stock, which includes all 
or part of six Areas, is at a low level of abundance and is 
experiencing persistent recruitment failure, caused by a combination of 
environmental factors and continued fishing mortality. To address the 
poor condition of the SNE stock, the Commission adopted Addendum XVII 
to Amendment 3 of the ISFMP in February of 2012. The measures in 
Addendum XVII are intended to reduce fishing exploitation to the SNE 
lobster stock by 10 percent. To further address stock rebuilding of the 
SNE lobster stock, Addendum XVIII was adopted in August 2012, to reduce 
latent effort in the trap fishery and scale the fishery to the 
diminished size of the SNE stock, through a series of annual trap 
reductions in Areas 2 and 3. For trap limits to be effective in 
reducing harvest and rebuilding the stock, latent effort must be 
addressed to prevent this effort from coming back into the fishery as 
the stock grows and catch rates increase. Copies of the Addenda are 
available on the Commission's Web site at: https://www.asmfc.org.

Proposed Measures

    To achieve a 10-percent reduction in fishing exploitation of the 
SNE American lobster stock under Addendum XVII, the Commission 
recommended several effort control measures for Areas 2, 3, 4, 5, and 6 
to protect broodstock and reduce the amount of American lobsters 
harvested from these Areas. These measures were reviewed by the 
Commission's scientific Technical Committee, which found that these 
measures would likely achieve the desired 10-percent reduction in 
exploitation. This rule proposes to implement the Commission's 
recommended measures, including: Minimum carapace length increases; 
mandatory v-notching of egg-bearing female lobsters; and seasonal 
fishery closures. Table 1 contains the specific measures adopted by the 
Commission and proposed for Federal implementation.

                                Table 1--Addendum XVII Management Measure Changes
----------------------------------------------------------------------------------------------------------------
       Management measures              Area 2              Area 3              Area 4              Area 5
----------------------------------------------------------------------------------------------------------------
V-Notching *....................  Mandatory for       n/a...............  Mandatory for       Mandatory for
                                   legal-sized egg-                        legal-sized egg-    legal-sized egg-
                                   bearing females.                        bearing females.    bearing females.
New Minimum Size................  n/a...............  3\17/32\ in (8.97   n/a...............  n/a.
                                                       cm).
Seasonal Closure................  n/a...............  n/a...............  February 1-March    February 1-March
                                                                           31.                 31.
----------------------------------------------------------------------------------------------------------------
* If v-notching is deemed insufficient to meet the conservation objectives, additional seasonal closures may be
  adopted by the Commission.

    While the harvest of lobsters from Areas 4 and 5 is proposed to be 
prohibited from February 1 through March 31, annually, we propose to 
allow additional time to remove and set gear during the closures. 
Permit holders will have a 2-week period (i.e., through February 14) to 
remove all lobster traps from the water. In addition, permit holders 
may begin to set lobster traps 1 week prior to the end of the area 
closure (i.e., March 25). We are not proposing measures recommended by 
the Commission for Area 6 (mandatory v-notching and a seasonal closure) 
because Area 6 is contained entirely within state waters, and is 
therefore outside of Federal jurisdiction.
    Under Addendum XVIII, the Commission approved trap reductions for 
Areas 2 and 3, following separate trap reduction schedules. Consistent 
with the Commission's ISFMP and in response to the Commission's 
recommendations for complementary management measures to address the 
needs of the SNE stock, we propose to reduce qualified Area 2 trap 
allocations for Federal lobster permit holders by 25 percent on April 
30, 2015, the last day

[[Page 43381]]

of fishing year (FY) 2014. Area 2 allocations would then be reduced by 
5 percent at the end of each subsequent FY for 5 years, as prescribed 
by the Commission. Similarly, we propose to reduce Area 3 trap 
allocations by 5 percent on April 30, 2014, the last day of FY 2014. 
Area 3 allocations would then be reduced by 5 percent at the end of 
each subsequent FY for 4 years, as prescribed by the Commission. Table 
2 includes a schedule of trap reductions, and the resulting trap 
allocations based on an initial trap allocation of 800 traps.

                      Table 2--Area 2 and 3 Trap Reduction Schedule and Example Allocations
----------------------------------------------------------------------------------------------------------------
                                      Area 2 reductions    Area 2 example                        Area 3 example
           Effective year                 (percent)          allocation     Area 3 reductions      allocation
----------------------------------------------------------------------------------------------------------------
FY 2014 (present) (percent).........                 NA                800                 NA                800
End of FY 2014 (Year 1).............                 25                600                  5                760
End of FY 2015 (Year 2).............                  5                570                  5                722
End of FY 2016 (Year 3).............                  5                542                  5                686
End of FY 2017 (Year 4).............                  5                515                  5                652
End of FY 2018 (Year 5).............                  5                490                  5                620
End of FY 2019 (Year 6).............                  5                466                 NA                 NA
----------------------------------------------------------------------------------------------------------------

    Depending on the timing of these actions and the readiness of the 
Commission's Trap Transfer Database, Federal permit holders could 
transfer traps during the 2014 fishing year, with transferable 
allocations accounting for the first year of the trap cuts. The 
resulting allocations based on the first-year reductions and any trap 
transfers would become effective at the start of FY 2015, or May 1, 
2015.

Related Actions and Implementation Options

    In addition to these upcoming measures, we recently published a 
final rule (79 FR 19015; April 7, 2014), based on Commission 
recommendations, establishing a limited access program in two lobster 
conservation management areas, Area 2 and the Outer Cape Area, and 
implementing a lobster Trap Transfer Program in Areas 2 and 3, and the 
Outer Cape Area. Because the Trap Transfer Program may ease economic 
impacts of trap reductions and provide added additional business 
flexibility, we propose to implement trap reductions at the same time 
as the Trap Transfer Program, as recommended by the Commission. Based 
on the analysis included in the associated draft Environmental 
Assessment, the order of implementation affects the resulting trap 
allocations. Table 3 includes an example of the resulting trap 
allocations for an Area 2 permit currently allocated 800 traps 
following the scheduled 25-percent reduction and transfer in of 200 
additional traps.

    Table 3--Resulting Year 1 Trap Allocations Based on the Order of
                        Reductions and Transfers
------------------------------------------------------------------------
                                      Scenario 1
                                      (preferred)         Scenario 2
------------------------------------------------------------------------
Initial Allocation..............  800 traps.........  800 traps.
Step 1:.........................  25% trap reduction  Unable to transfer
                                                       in traps, already
                                                       at maximum.
Resulting Allocation............  600 traps.........  800 traps.
Step 2..........................  Trap transfer       25% trap
                                   allowed,            reduction.
                                   purchased 200
                                   traps.
Final Allocation in Year 1......  800 traps.........  600 traps.
------------------------------------------------------------------------


    Note that NMFS would cut 200 traps in either scenario, but that 
only in Scenario 1 would fishers have the potential to immediately 
mitigate the trap-cut impacts using trap transfers. Under Scenario 1, 
where trap reductions are scheduled for all allocations just prior to 
trap transfers, the permit holder's potential allocation (assuming 
participation in the Trap Transfer Program) would result in 
significantly more traps than under Scenario 2, where trap transfers 
would not be allowed if the permit holder is at the maximum trap limit 
prior to trap reductions. We propose to schedule trap reductions to be 
effective at 11:59 p.m. on April 30, 2015, just ahead of trap transfers 
that have been negotiated and approved during FY 2014, but which will 
not become effective until 12:01 a.m. on May 1, 2015, consistent with 
Scenario 1. Permit holders would be able to transfer traps, based on 
the first round of trap cuts, during the 2014 fishing year, and the 
revised allocations resulting from the transfers of cut allocations 
would become effective at the start of the 2015 Federal fishing year on 
May 1, 2015. We are specifically requesting comment on this approach.

    The effectiveness of the proposed trap cuts is dependent upon and 
impacted by the availability of the Trap Transfer Program identified in 
our recent final rule (79 FR 19015; April 7, 2014). Specifically, both 
industry and the Commission indicated that a trap transfer program was 
a necessary precursor to any trap cut program so that lobster fishers 
could replace their cut traps with transferred traps. In order to 
maintain lobster business viability, industry and the Commission sought 
to have trap cuts and trap transferability occur contemporaneously so 
that businesses did not have to fish at cut levels for an extended time 
period while waiting for trap transfers to take effect. The timing of 
the trap cuts and trap transfer programs, therefore, is critical.

    The timing of the recently approved Trap Transfer Program has not 
yet been set and will be dependent upon the completion and 
effectiveness of the Commission's Trap Tag Database. If the Database is 
not completed and ready until fall 2014 (the Area 2 and Outer Cape Cod 
qualification and allocation program will not be completed until then 
and thus, we will not be able to populate the Database with final trap 
allocations until then), then trap transfers will not be able to be 
completed until sometime after that. This will compress the time 
schedule

[[Page 43382]]

within which to complete trap transfers and may impact the ability of 
buyers and sellers to conduct trap transfers in anticipation of the 
trap cuts that this rule proposes to occur at the close of the FY 2014. 
Given the novelty of the Trap Transfer Program, it is unclear how much 
time will be needed for trap sellers and buyers to meet and propose 
transfers, for Federal and state agencies to meet, reconcile, and 
approve the proposed transfers, and for permits and trap tag orders to 
reflect the approved transfer. Consequently, it might prove challenging 
for all permit holders to participate and complete their desired trap 
transfer transactions in this first year, which might take on added 
importance given the proposed trap reductions on April 30, 2015. 
Therefore, we request comment on the proposed April 30, 2015, trap cut 
date and whether alternative dates, including later dates, such as a 1-
year delay, might better advance lobster management objectives.

Comments and Responses

    To help determine the scope of issues to be addressed and to 
identify significant issues related to this action, we solicited 
written comments on an advanced notice of proposed rulemaking (ANPR), 
published on August 20, 2013 (78 FR 51131). The comment period closed 
on September 19, 2013. In addition to requesting comment on the 
Commission's measures, we requested comment on the timing of American 
lobster actions currently under development.
    In total, four letters were submitted in response to the ANPR, 
three of which were applicable to these proposed measures and are 
responded to below. The fourth letter was not applicable to the 
proposed measures and is not discussed further.
    Comment 1: The Atlantic Offshore Lobstermen's Association (AOLA), 
the Commission, and Connecticut Department of Environmental Protection 
(CT DEP) all commented in support of management measures being 
proposed.
    Response: We agree that implementing mandatory v-notching, a 
minimum carapace size increase, and seasonal closures will help to 
address the low level of abundance and persistent recruitment failure 
of the SNE American lobster stock. In addition, trap reductions are 
proposed to address rebuilding of the lobster stock by scaling the 
fishery to size of the SNE stock. For these reasons, we are proposing 
the full suite of measures approved by the Commission in Addenda XVII 
and XVIII.
    Comment 2: The AOLA expressed their support for maintaining 
economic flexibility, noting that trap reductions and the Trap Transfer 
Program should be implemented ``on an identical time schedule.''
    Response: We agree that trap reductions and the Trap Transfer 
Program should be implemented at the same time to mitigate any 
potential negative effects of trap reductions, and maintain a viable 
fleet, but functionally, one needs to be implemented before the other, 
even if mere moments before the other, simply to better account for and 
administer trap transfers. We are proposing to implement trap 
reductions to all Area 2 and 3 allocations for the end of FY 2014 
(April 30, 2015, at 11:59 p.m.), followed by any trap transfers, 
consistent with the process discussed in our recent final rule (79 FR 
19015; April 7, 2014), but would like comment on the order of 
implementation.
    Comment 3: The CT DEP recommended that the trap transfer process be 
conducted in a manner that allows for the fair participation of all 
citizens and should be done in an open forum and in conjunction with a 
fully functional Trap Transfer Database.
    Response: As explained in our recent final rule (79 FR 19015; April 
7, 2014), NMFS intends to implement an open and accessible Trap 
Transfer Program to all eligible lobster permit holders. The Program, 
however, is new and we cannot predict participant behavior and response 
at this point. NMFS does not want to introduce variables that would 
engineer market behavior in response to a problem that may not exist. 
NMFS intends to monitor its Trap Transfer Program and agrees with the 
commenter that the agency should work with the Commission to 
investigate ways to make available transferable trap allocations known 
and accessible to participants.

Classification

    This proposed rule has been determined to be not significant for 
the purposes of Executive Order (E.O.) 12866.
    This proposed rule does not contain policies with federalism 
implications as defined in E.O. 13132. The proposed measures are based 
upon the American Lobster ISFMP that was created by and is overseen by 
the states. The proposed measures are a result of Addenda XVII and 
XVIII, which was approved by the states, recommended by the states 
through the Commission for Federal adoption, and is in place at the 
state level. Consequently, NMFS has consulted with the states in the 
creation of the ISFMP, which makes recommendations for Federal action. 
Additionally, these proposed measures would not pre-empt state law and 
would do nothing to directly regulate the states.
    This proposed rule does not contain a collection of information 
requirement subject to review and approval by the Office of Management 
and Budget (OMB) under the Paperwork Reduction Act (PRA).
    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires 
agencies to assess the economic impacts of their proposed regulations 
on small entities. The objective of the RFA is to consider the impacts 
of a rulemaking on small entities, and the capacity of those affected 
by regulations to bear the direct and indirect costs of regulation. We 
prepared an Initial Regulatory Flexibility Analysis (IRFA) as required 
by section 603 of the RFA. The IRFA describes the economic impact this 
proposed rule, if adopted, would have on small entities. The proposed 
management measures would affect small entities engaged in several 
different aspects of the lobster fishery. The affected entities include 
Federal lobster permit holders fishing in SNE, specifically Areas 2, 3, 
4 and 5.

Description of the Reasons Why Action By NMFS Is Being Considered

    Recent data indicate that the SNE American lobster stock, which 
includes all or part of six Areas, is at a low level of abundance and 
is experiencing persistent recruitment failure, caused by a combination 
of environmental factors and continued fishing mortality. To address 
the poor condition of the SNE stock, the Commission adopted Addenda 
XVII and XVIII to Amendment 3 of the ISFMP, approving a combination of 
trap cuts and broodstock measures. The Commission Lobster Board's Plan 
Development Team has confirmed that the affected states have already 
issued regulations that are compliant with Addendum XVII measures. To 
the extent practicable, we aim to implement regulations consistent with 
Commission recommendations, and those promulgated by our partner 
states.

The Objectives and Legal Basis for the Proposed Action

    The objective of the proposed action is to reduce fishing 
exploitation and reduce latent effort in the trap fishery to scale the 
fishery to the size of the Southern New England (SNE) lobster stock. 
The legal basis for the proposed action is the ISFMP for American 
lobster and promulgating regulations at 50 CFR part 697.

[[Page 43383]]

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

    The RFA requires agencies to assure that decision makers consider 
disproportionate and/or significant adverse economic impacts of their 
proposed regulations on small entities. This section provides an 
assessment and discussion of the potential economic impacts of the 
proposed action, as required of the RFA.
    The IRFA is designed to assess the impacts that various regulatory 
alternatives would have on small entities, including small businesses, 
and to determine ways to minimize adverse impacts. Under the RFA, an 
agency does not need to conduct an IRFA or Final Regulatory Flexibility 
Analysis (FRFA) if a certification can be made that the proposed rule, 
if adopted, will not have a significant adverse economic impact on a 
substantial number of small entities.
    The purpose of the RFA is to inform the agency, as well as the 
public, of the expected economic impacts of the various alternatives 
contained in the proposed rulemaking and to ensure that the agency 
considers alternatives that minimize the expected impacts while meeting 
the goals and objectives of the regulatory documents and applicable 
statutes.
    The recent addition of vessel owner information to the permit data 
allows us to better define fishing ``businesses.'' The vessel ownership 
data identifies all the individual people who own fishing vessels. 
Vessels can be grouped together according to common owners, which can 
then be treated as a fishing business, for purposes of RFA analyses. 
Revenues summed across all vessels in the group and the activities that 
generate those revenues form the basis for determining whether the 
entity is a large or small business. Ownership data are available for 
the potentially impacted by the proposed action from 2010 onward.
    The RFA recognizes and defines three kinds of small entities: Small 
businesses; small organizations; and small governmental jurisdictions. 
The Small Business Administration (SBA) size standards define whether a 
business entity is small and, thus, eligible for Government programs 
and preferences reserved for ``small business'' concerns. Size 
standards have been established (and recently modified) for all for-
profit economic activities or industries in the North American Industry 
Classification System (NAICS). Designations of large and small entities 
were attached based on each entity's three-year average landings. For 
entities landing a plurality of revenue in shellfish (NAICS 111412), 
the threshold for ``large'' is $5.0 million. For entities landing a 
plurality of revenue in finfish (NAICS 111411), the threshold for 
``large'' is $19.0 million. The number of directly regulated entities 
for purposes of analyzing the economic impacts and describing those 
that are small businesses is selected based on permits held. Since this 
proposed regulation applies only to the businesses which hold permits 
in 4 areas managed by the conservation measures being amended, only 
those business entities are evaluated. Business entities that do not 
own vessels with directly regulated permits are not described.
    There are 379 distinct entities identified as directly regulated 
entities in this action, those that held permits in Areas 2, 3, 4 or 5, 
or some combination. There were 373 entities that were classified as 
``small,'' while the remaining 6 were classified as ``large.'' All 6 of 
the large businesses were designated as shellfish. Until further 
guidance is provided, for RFA analyses, business entities are 
classified into the SBA defined categories based on which activity, in 
the most recent year, produced the greatest gross revenue. An advantage 
of this approach is that entities are defined as large or small one 
time for the duration of a year, maintaining action to action 
consistency. As far as determining whether a business is large or 
small, once its major activity is determined (based on 2012) the 
average total revenue from all activities over the most recent three 
years (2010-2012) is applied against the appropriate threshold.
    Of the 373 small entities, 180 are considered a shellfish business, 
121 are considered a finfish business, 3 are considered a for-hire 
business, and 69 could not be identified as either because even though 
they had a lobster permit (in Areas 1, 2, 3 or 4) they had no earned 
revenue from fishing activity. Because they had no revenue in the last 
3 years, they would be considered small by default, but would also be 
considered as latent effort.
    The entity definition used by the Social Sciences Branch uses only 
unique combinations of owners. That is, entities are not combined if 
they have a shared owner. Section 3 of the SBA defines affiliation as: 
Affiliation may arise among two or more persons with an identity of 
interest. Individuals or firms that have identical or substantially 
identical business or economic interests (such as family members, 
individuals or firms with common investments, or firms that are 
economically dependent through contractual or other relationships) may 
be treated as one party with such interests aggregated (13 CFR 
121.103(f)).

            Table 4--Estimate of the Number of Small Entities
------------------------------------------------------------------------
                                      Number of
            Entity type               entities    Average entity revenue
------------------------------------------------------------------------
Shellfish.........................           180  $429,000.
Finfish...........................           121  $363,000.
No revenue........................            69  0.
For-hire..........................             3  confidential.
                                   --------------
  Total...........................           373  ......................
------------------------------------------------------------------------

    Table 4 describes the number of regulated small entities and all 
known revenue from all fishing related activity. Many of these 
ownership entities maintain diversified harvest portfolios, obtaining 
gross sales from many fisheries and not dependent on any one. However, 
not all are equally diversified. Those that depend most heavily on 
sales from harvesting species impacted directly by the proposed action 
are most likely to be affected. By defining dependence as deriving 
greater than 50-percent of gross sales from sales of lobster, we are 
able to identify those ownership groups most likely to be impacted by 
the proposed regulations. Using this threshold, we find that of the 373 
small regulated entities, 180 of them are lobster-dependent.
    A person who does not currently own a fishing vessel, but who has 
owned a qualifying vessel that has sunk, been destroyed, or transferred 
to another person, must apply for and receive a ``confirmation of 
history'' (CPH) if the fishing and permit history of such vessel has 
been retained lawfully by the applicant. Issuance of a valid CPH 
preserves the eligibility of the applicant to apply for a permit for a 
replacement vessel based on the qualifying vessel's fishing and permit 
history at a subsequent time. The ownership data based on the permits 
held does not contain information on CPH permits. A total of 23 CPH's 
exist for lobster Areas 2, 3, and 4: 8 for Area 1, 9 for Area 3, and 6 
for Area 4. One CPH qualifies for a permit in Area 2 and 3, while one 
CPH qualifies in all 3 of these areas.
    While considering the number of affected entities, it is also worth 
noting that the vast majority of permit holders are either dually 
permitted (i.e., issued both a federal and state permit) or otherwise 
subject to a state's lobster regulations. Accordingly, most all Federal 
permit holders will be required to comply with the proposed measures

[[Page 43384]]

even if NMFS does not implement these measures. In other words, these 
federal permit holders will be obligated to comply with these measures 
and responsibilities attendant to their state permit regardless of 
whether these same measures are also required under their Federal 
permit.

Descriptions of Significant Alternatives Which Minimize Any Significant 
Economic Impact of Proposed Action on Small Entities

    Due to the expected high rate of dual permitting and that the 
states are already compliant with broodstock measures, the majority of 
Federal vessels must already abide by these requirements, and therefore 
have already been impacted. For those vessels not dually permitted, 
broodstock measures can be expected to have a limited economic impact 
to permit holders. Because the proposed regulations are consistent with 
Commission recommendations and current state regulations, developing 
alternative measures would likely create inconsistencies and regulatory 
disconnects with the states and would therefore, likely worsen 
potential economic impacts. Therefore, no alternatives to broodstock 
measures are considered.
    Because the Trap Transfer Program may ease economic impacts of trap 
reductions and provide added additional business flexibility, we 
propose to implement trap reductions at roughly the same time, or as 
close as possible, as the Trap Transfer Program, as recommended by the 
Commission. In other words, we have timed the trap reductions so that 
fishers will be able to activate their transferred traps moments after 
their allocation is reduced. In this way, fishers will not have to fish 
with reduced traps while waiting for their transferred traps to become 
allocated. This could mitigate the impacts of the trap reductions 
because fishers would be able to transfer traps based on their reduced 
allocation, prior to the cuts becoming effective. They could buy traps 
before the cuts take effect and minimize the impacts to their 
businesses resulting from the trap reductions. To further mitigate trap 
reductions, a permit holder could also choose to tend his or her 
remaining traps more often in an attempt to harvest more lobsters and 
recover income lost from the trap reductions. When considered in 
conjunction with trap transferability, permit holders remaining in the 
fishery may be able to transfer in traps up to their original trap cap 
(i.e., transfer in traps to make up for traps lost through trap 
reductions). Though this will require capital, the ability to acquire 
additional traps may help another set of permit holders compensate for 
trap reductions. Finally, the permit holders who elect to leave the 
fishery and transfer out traps will be compensated immediately by those 
fishers purchasing traps.
    Given the novelty of trap transferability, it is unclear how much 
time will be needed for trap sellers and buyers to meet and propose 
transfers, for Federal and state agencies to meet, reconcile, and 
approve the proposed transfers, and for permits and trap tag orders to 
reflect the approved transfer. Consequently, it might prove challenging 
for all permit holders to participate and complete their desired trap 
transfer transactions in this first year, which might take on added 
importance given the proposed trap reductions on April 30, 2015. On the 
other hand, a delay could exacerbate the condition of the poor stock 
which could also result in losses in revenue over time. Therefore, we 
are requesting comment on the proposed April 30, 2015, trap cut date 
and whether alternative dates, including later dates, such as a 1-year 
delay, might better advance lobster management objectives. Should the 
Commission and our state partners suggest a delay and/or alternative 
approach, we would develop an alternative formally analyzing these 
impacts. At present, however, such an alternative fails to accomplish 
the stated objectives of the rule insofar as unilateral divergence from 
the Commission's recommendations would create regulatory disconnects 
with the states and potentially undermine the Lobster Plan.
    As discussed in greater detail in the EA, we considered, but 
rejected two other alternatives, where trap reductions are 
theoretically approved out-of-sync (i.e., either 5-6 months before or 
5-6 months after) with trap transfers. Under either of these scenarios, 
some permit holders would be prevented from participating in the Trap 
Transfer Program following trap cuts, resulting in potential loss of 
economic opportunity, until additional traps could be required. For 
permit holders whose business model is predicated on fishing at the 
trap cap, they would be forced to fish at reduced and presumably 
unprofitable levels for nearly half the fishing year. Because these 
alternatives may increase economic impacts, the measures proposed in 
this action are the alternatives which minimize any significant 
economic impact.

Reporting, Recordkeeping and Other Compliance Requirements

    This action contains no new collection-of-information, reporting, 
or recordkeeping requirements.

Duplication, Overlap or Conflict With Other Federal Rules

    This action does not duplicate, overlap, or conflict with any other 
Federal Laws.

List of Subjects in 50 CFR Part 697

    Fisheries, fishing.

    Dated: July 21, 2014.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, 50 CFR, part 697 is 
proposed to be amended as follows:

PART 697--ATLANTIC COASTAL FISHERIES COOPERATIVE MANAGEMENT

0
1. The authority citation for part 697 continues to read as follows:

    Authority: 16 U.S.C. 5101 et seq.

0
2. In Sec.  697.2, the definitions of ``Federal Area 1 Limited Access 
Program,'' ``Federal Area 2 Limited Access Program,'' ``Federal Area 3 
Limited Access Program,'' ``Federal Area 4 Limited Access Program,'' 
``Federal Area 5 Limited Access Program,'' and ``Federal Outer Cape 
Area Limited Access Program'' are added in alphabetical order to read 
as follows:


Sec.  697.2  Definitions.

* * * * *
    Federal Area 1 Limited Access Program means the limited access 
program restricts trap fishing in Area 3 to those federal lobster 
permits with qualified and allocated Area 1 traps, as identified in 
these regulations at Sec.  697.4(a)(7)(ii).
    Federal Area 2 Limited Access Program means the limited access 
program restricts trap fishing in Area 3 to those federal lobster 
permits with qualified and allocated Area 2 traps, as identified in 
these regulations at Sec.  697.4(a)(7)(ii).
    Federal Area 3 Limited Access Program means the limited access 
program restricts trap fishing in Area 3 to those federal lobster 
permits with qualified and allocated Area 3 traps, as identified in 
these regulations at Sec.  697.4(a)(7)(ii).
    Federal Area 4 Limited Access Program means the limited access 
program restricts trap fishing in Area 3

[[Page 43385]]

to those federal lobster permits with qualified and allocated Area 4 
traps, as identified in these regulations at Sec.  697.4(a)(7)(ii).
    Federal Area 5 Limited Access Program means the limited access 
program restricts trap fishing in Area 3 to those federal lobster 
permits with qualified and allocated Area 5 traps, as identified in 
these regulations at Sec.  697.4(a)(7)(ii).
    Federal Outer Cape Cod Area Limited Access Program means the 
limited access program restricts trap fishing in Area 3 to those 
federal lobster permits with qualified and allocated Outer Cape Cod 
Area traps, as identified in these regulations at Sec.  
697.4(a)(7)(ii).
* * * * *
0
3. In Sec.  697.7, revise paragraphs (c)(1)(xxx) and (c)(3)(iii), to 
read as follows:


Sec.  697.7  Prohibitions

* * * * *
    (c) * * *
    (1) * * *
    (xxx) Seasonal Closures The following areas are closed seasonally 
to lobster fishing.
    (A) Outer Cape Area seasonal closure. The Federal waters of the 
Outer Cape Area shall be closed to lobster fishing with traps by 
Federal lobster permit holders from January 15 through March 15.
    (1) Lobster fishing with traps is prohibited in the Outer Cape Area 
during this seasonal closure. Federal trap fishers are prohibited from 
possessing or landing lobster taken from the Outer Cape Area during the 
seasonal closure.
    (2) All lobster traps must be removed from Outer Cape Area waters 
before the start of the seasonal closure and may not be re-deployed 
into Area waters until after the seasonal closure ends. Federal trap 
fishers are prohibited from setting, hauling, storing, abandoning or in 
any way leaving their traps in Outer Cape Area waters during this 
seasonal closure. Federal lobster permit holders are prohibited from 
possessing or carrying lobster traps aboard a vessel in Outer Cape Area 
waters during this seasonal closure unless the vessel is transiting 
through the Outer Cape Area pursuant to paragraph (c)(1)(xxx)(A)(4) of 
this section.
    (3) The Outer Cape Area seasonal closure relates only to the Outer 
Cape Area. The restrictive provisions of Sec.  697.3 and Sec.  
697.4(a)(7)(v) do not apply to this closure. Federal lobster permit 
holders with an Outer Cape Area designation and another Lobster 
Management Area designation on their Federal lobster permits would not 
have to similarly remove their lobster gear from the other designated 
management areas.
    (4) Transiting Outer Cape Area. Federal lobster permit holders may 
possess lobster traps on their vessels in the Outer Cape Area during 
the seasonal closure only if:
    (i) The trap gear is stowed; and
    (ii) The vessel is transiting the Outer Cape Area. For the purposes 
of this section, transiting shall mean passing through the Outer Cape 
Area without stopping to reach a destination outside the Outer Cape 
Area.
    (5) The Regional Administrator may authorize a permit holder or 
vessel owner to haul ashore lobster traps from the Outer Cape Area 
during the seasonal closure without having to engage in the exempted 
fishing process in Sec.  697.22, if the permit holder or vessel owner 
can establish the following:
    (i) That the lobster traps were not able to be hauled ashore before 
the seasonal closure due to incapacity, vessel/mechanical 
inoperability, and/or poor weather; and
    (ii) That all lobsters caught in the subject traps will be 
immediately returned to the sea.
    (iii) The Regional Administrator may condition this authorization 
as appropriate in order to maintain the overall integrity of the 
closure.
    (B) Area 4 seasonal closure. The Federal waters of Area 4 shall be 
closed to lobster fishing from February 1 through March 31.
    (1) Lobster fishing is prohibited in Area 4 during this seasonal 
closure. Federal lobster permit holders are prohibited from possessing 
or landing lobster taken from Area 4 during the seasonal closure.
    (2) All lobster traps must be removed from Area 4 waters before the 
start of the seasonal closure and may not be re-deployed into Area 
waters until after the seasonal closure ends. Federal trap fishers are 
prohibited from setting, hauling, storing, abandoning or in any way 
leaving their traps in Area 4 waters during this seasonal closure. The 
following exceptions apply to the Area 4 seasonal closure:
    (i) Lobster fishers will have a 2-week grace period from February 1 
to February 14 to remove all lobster gear from the closed area. During 
this grace period, any hauled trap must not be re-set and must be 
removed from the area. Any lobsters taken from traps during this grace 
period must be returned to the sea immediately and any Federal lobster 
permit holder retrieving Area 4 traps during this grace period is 
prohibited from possessing on board any lobster regardless of the area 
from which the lobster may have been harvested.
    (ii) Lobster fishers have a 1-week grace period from March 24 to 
March 31 to re-set gear in the closed area. During this grace period, 
re-set traps may not be re-hauled and any Federal lobster permit holder 
re-setting Area 4 traps during this grace period is prohibited from 
possessing on board any lobster regardless of the area from which the 
lobster may have been harvested.
    (3) Federal lobster permit holders are prohibited from possessing 
or carrying lobster traps aboard a vessel in Area 4 waters during this 
seasonal closure unless the vessel operating subject to the grace 
period identified in paragraph (ii) or is transiting through Area 4 
pursuant to paragraph (c)(1)(xxx)(B)(5) of this section.
    (4) The Area 4 seasonal closure relates only to Area 4. The 
restrictive provisions of Sec.  697.3 and Sec.  697.4(a)(7)(v) do not 
apply to this closure. Federal lobster permit holders with an Area 4 
designation and another Lobster Management Area designation on their 
Federal lobster permits would not have to similarly remove their 
lobster gear from the other designated management areas.
    (5) Transiting Area 4. Federal lobster permit holders may possess 
lobster traps on their vessels in Area 4 during the seasonal closure 
only if:
    (i) The trap gear is stowed; and
    (ii) The vessel is transiting the Area 4. For the purposes of this 
section, transiting shall mean passing through Area 4 without stopping, 
to reach a destination outside Area 4.
    (6) The Regional Administrator may authorize a permit holder or 
vessel owner to haul ashore lobster traps from Area 4 during the 
seasonal closure without having to engage in the exempted fishing 
process in Sec.  697.22, if the permit holder or vessel owner can 
establish the following:
    (i) That the lobster traps were not able to be hauled ashore before 
the seasonal closure due to incapacity, vessel/mechanical 
inoperability, and/or poor weather; and
    (ii) That all lobsters caught in the subject traps will be 
immediately returned to the sea.
    (iii) The Regional Administrator may condition this authorization 
as appropriate in order to maintain the overall integrity of the 
closure.
    (C) Area 5 seasonal closure. The Federal waters of Area 5 shall be 
closed to lobster fishing from February 1 through March 31.
    (1) Lobster fishing is prohibited in Area 5 during this seasonal 
closure. Federal lobster permit holders are

[[Page 43386]]

prohibited from possessing or landing lobster taken from Area 5 during 
the seasonal closure.
    (2) All lobster traps must be removed from Area 5 waters before the 
start of the seasonal closure and may not be re-deployed into Area 
waters until after the seasonal closure ends. Federal trap fishers are 
prohibited from setting, hauling, storing, abandoning or in any way 
leaving their traps in Area 5 waters during this seasonal closure. The 
following exceptions apply to the Area 5 seasonal closure:
    (i) Lobster fishers will have a 2-week grace period from February 1 
to February 14 to remove all lobster gear from the closed area. During 
this grace period, any hauled trap must not be re-set and must be 
removed from the area. Any lobsters taken from traps during this grace 
period must be returned to the sea immediately and any Federal lobster 
permit holder retrieving Area 4 traps during this grace period is 
prohibited from possessing on board any lobster regardless of the area 
from which the lobster may have been harvested.
    (ii) Lobster fishers have a 1-week grace period from March 24 to 
March 31 to re-set gear in the closed area. During this grace period, 
re-set traps may not be re-hauled and any Federal lobster permit holder 
re-setting Area 5 traps during this grace period is prohibited from 
possessing on board any lobster regardless of the area from which the 
lobster may have been harvested.
    (3) Federal lobster permit holders are prohibited from possessing 
or carrying lobster traps aboard a vessel in Area 5 waters during this 
seasonal closure unless the vessel operating subject to the grace 
period identified in paragraph (ii) or is transiting through Area 5 
pursuant to paragraph (c)(1)(xxx)(C)(5) of this section.
    (4) The Area 5 seasonal closure relates only to Area 5. The 
restrictive provisions of Sec.  697.3 and Sec.  697.4(a)(7)(v) do not 
apply to this closure. Federal lobster permit holders with an Area 5 
designation and another Lobster Management Area designation on their 
Federal lobster permits would not have to similarly remove their 
lobster gear from the other designated management areas.
    (5) Transiting Area 5. Federal lobster permit holders may possess 
lobster traps on their vessels in Area 5 during the seasonal closure 
only if:
    (i) The trap gear is stowed; and
    (ii) The vessel is transiting the Area 5. For the purposes of this 
section, transiting shall mean passing through Area 5 without stopping, 
to reach a destination outside Area 5.
    (6) The Regional Administrator may authorize a permit holder or 
vessel owner to haul ashore lobster traps from Area 5 during the 
seasonal closure without having to engage in the exempted fishing 
process in Sec.  697.22, if the permit holder or vessel owner can 
establish the following:
    (i) That the lobster traps were not able to be hauled ashore before 
the seasonal closure due to incapacity, vessel/mechanical 
inoperability, and/or poor weather; and
    (ii) That all lobsters caught in the subject traps will be 
immediately returned to the sea.
    (iii) The Regional Administrator may condition this authorization 
as appropriate in order to maintain the overall integrity of the 
closure.
* * * * *
    (c) * * *
    (3) * * *
    (iii) The possession of egg-bearing female lobsters in violation of 
the requirements set forth in Sec.  697.20(d), v-notched female 
American lobsters in violation of the v-notch requirements set forth in 
Sec.  697.20(g), American lobsters that are smaller than the minimum 
sizes set forth in Sec.  697.20(a), American lobsters that are larger 
than the maximum carapace sizes set forth in Sec.  697.20(b), or 
lobster parts, possessed at or prior to the time when the 
aforementioned lobsters or parts are received by a dealer, will be 
prima facie evidence that such American lobsters or parts were taken or 
imported in violation of these regulations. A preponderance of all 
submitted evidence that such American lobsters were harvested by a 
vessel not holding a permit under this part and fishing exclusively 
within state or foreign waters will be sufficient to rebut the 
presumption.
* * * * *
0
4. In Sec.  697.19, revise paragraphs (b) through (k) and add (l) to 
read as follows:


Sec.  697.19  Trap limits and trap tag requirements for vessels fishing 
with lobster traps.

* * * * *
    (b) Area 2 trap limits. The Area 2 trap limit is 800 traps. 
Federally permitted lobster fishing vessels may only fish with traps 
that have been previously qualified and allocated into Area 2 by the 
Regional Administrator, as part of the Federal Area 2 Limited Access 
Program. This allocation may be modified by trap cuts and/or trap 
transfers, but in no case shall the allocation exceed the trap limit.
    (c) Area 3 trap limits. The Area 3 trap limit is 1,945 traps. 
Federally permitted lobster fishing vessels may only fish with traps 
that have been previously qualified and allocated into Area 3 by the 
Regional Administrator, as part of the Federal Area 3 Limited Access 
Program. This allocation may be modified by trap cuts and/or trap 
transfers, but in no case shall the allocation exceed the trap limit.
    (d) Area 4 trap limits. The Area 4 trap limit is 1,440 traps. 
Federally permitted lobster fishing vessels may only fish with traps 
that have been previously qualified and allocated into Area 4 by the 
Regional Administrator, as part of the Federal Area 4 Limited Access 
Program. This allocation may be modified by trap cuts and/or trap 
transfers, but in no case shall the allocation exceed the trap limit.
    (e) Area 5 trap limits. The Area 5 trap limit is 1,440 traps, 
unless the vessel is operating under an Area 5 Trap Waiver permit 
issued under Sec.  697.26. Federally permitted lobster fishing vessels 
may only fish with traps that have been previously qualified and 
allocated into Area 5 by the Regional Administrator, as part of the 
Federal Area 5 Limited Access Program. This allocation may be modified 
by trap cuts and/or trap transfers, but in no case shall the allocation 
exceed the trap limit.
    (f) Outer Cape Area. The Outer Cape Area trap limit is 800 traps. 
Federally permitted lobster fishing vessels may only fish with traps 
that have been previously qualified and allocated into the Outer Cape 
Area by the Regional Administrator, as part of the Federal Outer Cape 
Cod Area Limited Access Program. This allocation may be modified by 
trap cuts and/or trap transfers, but in no case shall the allocation 
exceed the trap limit.
    (g) Trap Cuts. Trap allocations shall be reduced in the following 
Areas as set forth below:
    (1) Area 2 allocations shall be reduced according to the following 
schedule:

------------------------------------------------------------------------
                                                              Area 2
            Effective year of trap  reduction               reductions
                                                             (percent)
------------------------------------------------------------------------
April 30, 2015, 11:59 p.m...............................              25
April 30, 2016, 11:59 p.m...............................               5
April 30, 2017, 11:59 p.m...............................               5
April 30, 2018, 11:59 p.m...............................               5
April 30, 2019, 11:59 p.m...............................               5
April 30, 2020, 11:59 p.m...............................               5
------------------------------------------------------------------------

    (2) Area 3 allocations shall be reduced according to the following 
schedule:

------------------------------------------------------------------------
                                                              Area 3
            Effective year of trap  reduction               reductions
                                                             (percent)
------------------------------------------------------------------------
April 30, 2015, 11:59 p.m...............................               5
April 30, 2016, 11:59 p.m...............................               5

[[Page 43387]]

 
April 30, 2017, 11:59 p.m...............................               5
April 30, 2018, 11:59 p.m...............................               5
April 30, 2019, 11:59 p.m...............................               5
------------------------------------------------------------------------

    (h) Lobster trap limits for vessels fishing or authorized to fish 
in more than one EEZ management area. A vessel owner who elects to fish 
in more than one EEZ Management Area is restricted to the lowest cap 
limit of the areas and may not fish with, deploy in, possess in, or 
haul back from any of those elected management areas more lobster traps 
than the lowest number of lobster traps allocated to that vessel for 
any one elected management area.
    (i) Conservation equivalent trap limits in New Hampshire state 
waters. Notwithstanding any other provision, any vessel with a Federal 
lobster permit and a New Hampshire Full Commercial Lobster license may 
fish up to a maximum of 1,200 lobster traps in New Hampshire state 
waters, to the extent authorized by New Hampshire lobster fishery 
regulations. However, such vessel may not fish, possess, deploy, or 
haul back more than 800 lobster traps in the Federal waters of EEZ 
Nearshore Management Area 1, and may not fish more than a combined 
total of 1,200 lobster traps in the Federal and New Hampshire state 
waters portions of EEZ Nearshore Management Area 1.
    (j) Trap Tag Requirements for vessels fishing with lobster traps. 
All lobster traps in Federal waters must have a valid Federal lobster 
trap tag permanently attached to the trap bridge or central cross-
member. Federal lobster permit holders are eligible to receive Area 1 
trap tags only if the Regional Administrator has qualified the permit 
to fish in Area 1 as part of the Federal Area 1 Limited Entry Program. 
Federal lobster permit holders are eligible to receive Area 2, 3, 4, 5 
and/or Outer Cape Cod Area trap tags only if the Regional Administrator 
has allocated those traps as part of the Federal Area 2, 3, 4, 5 and/or 
Outer Cape Cod Area Limited Access Program. Any vessel with a Federal 
lobster permit may not possess, deploy, or haul back lobster traps in 
any portion of any lobster management area that do not have a valid, 
federally recognized trap tag permanently attached to the trap bridge 
or central cross-member.
    (k) Maximum lobster trap tags authorized for direct purchase. In 
any fishing year, the maximum number of tags authorized for direct 
purchase by each permit holder is the applicable trap limit specified 
in paragraphs (a) through (f) of this section plus an additional 10 
percent to cover trap loss.
    (l) EEZ Management Area 5 trap waiver exemption. Any vessel issued 
an Area 5 Trap Waiver permit under Sec.  697.4(p) is exempt from the 
provisions of this section.
* * * * *
0
5. In Sec.  697.20, revise paragraphs (a)(5) through (a)(8), (b)(5) and 
(b)(6), (d)(1) and (d)(2), (g)(3) and (g)(4), and remove paragraphs 
(b)(7) and (b)(8) and (g)(5) through (g)(8) to read as follows:
* * * * *


Sec.  697.20  Size, harvesting and landing requirements.

    (a) * * *
    (5) Through April 30, 2015, the minimum carapace length for all 
American lobsters harvested in or from the Offshore Management Area 3 
is 3\1/2\ inches (8.89 cm).
    (6) Through April 30, 2015, the minimum carapace length for all 
American lobsters landed, harvested or possessed by vessels issued a 
Federal limited access American lobster permit fishing in or electing 
to fish in EEZ Offshore Management Area 3 is 3\1/2\ inches (8.89 cm).
    (7) Effective May 1, 2015, the minimum carapace length for all 
American lobsters harvested in or from the Offshore Management Area 3 
is 3\17/32\ inches (8.97 cm).
    (8) Effective May 1, 2015, the minimum carapace length for all 
American lobsters landed, harvested, or possessed by vessels issued a 
Federal limited access American lobster permit fishing in or electing 
to fish in EEZ Offshore Management Area 3 is 3\17/32\ inches (8.97 cm).
* * * * *
    (b) * * *
    (5) The maximum carapace length for all American lobster harvested 
in or from EEZ Offshore Management Area 3 or the Outer Cape Lobster 
Management Area is 6\3/4\ inches (17.15 cm).
    (6) The maximum carapace length for all American lobster landed, 
harvested, or possessed by vessels issued a Federal limited access 
American lobster permit fishing in or electing to fish in EEZ Offshore 
Management Area 3 or the Outer Cape Lobster Management Area is 6\3/4\ 
inches (17.15 cm).
    (d) * * *
    (1) Any berried female lobster harvested in or from the EEZ must be 
returned to the sea immediately. If any berried female lobster is 
harvested in or from the EEZ Nearshore Management Areas 1, 2, 4, or 5, 
or in or from the EEZ Offshore Management Area 3, north of 42[deg] 30' 
North latitude, it must be v-notched before being returned to sea 
immediately.
    (2) Any berried female lobster harvested or possessed by a vessel 
issued a Federal limited access lobster permit must be returned to the 
sea immediately. If any berried female lobster is harvested in or from 
the EEZ Nearshore Management Areas 1, 2, 4, or 5, or in or from the EEZ 
Offshore Management Area 3, north of 42[deg]30' North latitude, it must 
be v-notched before being returned to sea immediately.
* * * * *
    (g) * * *
    (3) No person may possess any female lobster possessing a standard 
v-shaped notch harvested in or from the EEZ Nearshore Management Area 
2, 4, 5, 6, Outer Cape Area or the EEZ Offshore Management Area 3.
    (4) No vessel, owner, or operator issued a Federal limited access 
American lobster permit fishing in or electing to fish in the EEZ 
Nearshore Management Area 2, 4, 5, 6, Outer Cape Area or the EEZ 
Offshore Management Area 3 may land, harvest or possess any female 
lobster possessing a standard v-shaped notch.

[FR Doc. 2014-17533 Filed 7-24-14; 8:45 am]
BILLING CODE 3510-22-P
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