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Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Shrimp Fishery of the Gulf of Mexico; Amendment 13
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: April 5, 2006 (Volume 71, Number 65)]
[Proposed Rules]
[Page 17062-17070]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05ap06-32]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 622
[Docket No. 051128312-5312-01; I.D. 111605A]
RIN 0648-AS15
Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic;
Shrimp Fishery of the Gulf of Mexico; Amendment 13
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Proposed rule; request for comments.
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SUMMARY: NMFS issues this proposed rule to implement Amendment 13 to
the Fishery Management Plan for the Shrimp Fishery of the Gulf of
Mexico (Amendment 13), as prepared and submitted by the Gulf of Mexico
Fishery Management Council (Council). This proposed rule would
establish a 10-year moratorium on issuance of Federal Gulf shrimp
vessel permits; require owners of vessels fishing for or possessing
royal red shrimp from the Gulf of Mexico exclusive economic zone (EEZ)
to have a royal red shrimp endorsement; require owners or operators of
all federally permitted Gulf shrimp vessels to report information on
landings and vessel and gear characteristics; and require vessels
selected by NMFS to carry observers and/or install an electronic
logbook provided by NMFS. In addition, Amendment 13 would establish
biological reference points for penaeid shrimp and status determination
criteria for royal red shrimp. The intended effects of this proposed
rule are to provide essential fisheries data, including bycatch data,
needed to improve management of the fishery and to control access to
the fishery.
DATES: Written comments on this proposed rule must be received no later
than 5 p.m., eastern time, on May 22, 2006.
ADDRESSES: You may submit comments on the proposed rule by any of the
following methods:
? E-mail: 0648-AS15.Proposed@noaa.gov. Include in the
subject line of the e-mail comment the following document identifier:
0648-AS15.
? Federal e-Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
? Mail: Steve Branstetter, Southeast Regional Office, NMFS,
263 13\th\ Avenue South, St. Petersburg, FL 33701.
? Fax: 727-824-5308.
Copies of Amendment 13, which includes an Environmental Assessment,
an Initial Regulatory Flexibility Analysis (IRFA), and a Regulatory
Impact Review, may be obtained from the Gulf of Mexico.
Comments regarding the burden-hour estimates or other aspects of
the collection-of-information requirements contained in this proposed
rule may be submitted in writing to Jason Rueter at the Southeast
Regional Office address (above) and to David Rostker, Office of
Management and Budget (OMB), by e-mail at David_Rosker@omb.eop.gov, or
by fax to 202-395-7285.
FOR FURTHER INFORMATION CONTACT: Steve Branstetter, telephone: 727-551-
5796; fax: 727-824-5308; e-mail: Steve.Branstetter@noaa.gov.
SUPPLEMENTARY INFORMATION: The shrimp fishery in the Gulf of Mexico is
managed under the FMP. The FMP was prepared by the Council and is
implemented under the authority of the Magnuson-Stevens Fishery
Conservation and Management Act (Magnuson-Stevens Act) by regulations
at 50 CFR part 622.
Amendment 13
Royal Red Shrimp Permit Endorsements
For a person aboard a vessel to fish for royal red shrimp in the
Gulf of Mexico EEZ or possess royal red shrimp in or from the Gulf of
Mexico EEZ, this rule would require that a valid commercial vessel
permit endorsement for royal red shrimp be issued to the vessel and be
on board. Note that this would be in addition to the requirement to
have a Federal commercial vessel permit for Gulf shrimp.
An owner of a vessel who desires a commercial vessel permit
endorsement for royal red shrimp would be required to obtain a permit
application form from and submit it to the Regional
[[Page 17063]]
Administrator (RA), Southeast Region, NMFS. Information on the
application form would consist of the standard information and
documentation required for commercial vessel permits issued by the RA,
as specified at 50 CFR 622.4(b)(3). There would be no earned income or
landing requirements for these permit endorsements. Royal red shrimp
permit endorsements would be required in the fishery 150 days after any
final rule containing the requirement for permit endorsement is
published. This time period is considered adequate for vessel owners
currently in the fishery to obtain, complete, and submit applications
and for the RA to process the applications and issue permits.
As specified at 50 CFR 622.4(d), a fee, calculated in accordance
with the procedures of the NOAA Finance Handbook, would be charged for
each application for a permit endorsement or written request for
replacement of a permit endorsement. The applicable fee would be
specified on the application form.
Information from permit endorsement applications would provide data
on the universe of vessels in the fishery. Such data, in combination
with the proposed requirement for the submission of catch and effort
reports and the proposed requirement for vessels to carry observers,
when requested, would comprise part of the program to monitor and
assess bycatch, including protected resources, in the Gulf of Mexico
shrimp fisheries.
Commercial Shrimp Vessel Permit Moratorium
There is excess harvesting capacity in the shrimp fishery in the
Gulf of Mexico, and fewer vessels could harvest the available shrimp
resources at a more profitable level. The Gulf shrimp fishery has
recently experienced economic losses leading to an exodus of vessels
from the fishery. The number of vessels in the offshore shrimp fleet is
expected to continue declining, but, at some point, the fishery will
again become profitable for the remaining participants. There is a need
to prevent new effort from then entering the fishery and negating or at
least lessening profitability in the future. Thus, this proposed rule
proposes to establish a 10-year moratorium on the issuance of Federal
commercial shrimp vessel permits for the shrimp fishery in the Gulf EEZ.
The moratorium would begin on the effective date of any final rule
that would implement Amendment 13. Beginning 150 days after the
effective date of any final rule that would implement Amendment 13, the
only valid commercial vessel permits for Gulf shrimp would be those
issued under this proposed moratorium. As of that date, a commercial
vessel moratorium permit for Gulf shrimp would be required to fish for
or possess Gulf shrimp from the EEZ. Permits issued under the
moratorium would be fully transferable, with or without sale of the
vessel, allowing permittees the flexibility to enter or exit the
fishery as they choose.
Eligibility for a Moratorium Permit
Under the proposed moratorium, eligibility for a commercial vessel
moratorium permit for Gulf shrimp would be limited to a person who--
(1) Owns a vessel that was issued a Federal commercial vessel
permit for Gulf shrimp on or before December 6, 2003; or
(2) On or before December 6, 2003, owned a vessel that was issued a
Federal commercial vessel permit for Gulf shrimp and, prior to the date
of publication of any final rule that implements Amendment 13, owns a
vessel with a Federal commercial permit for Gulf shrimp that is
equipped for offshore shrimp fishing and is at least 5 net tons (4.54
metric tons).
NMFS' permit records are the sole basis for determining eligibility
based on permit history. An applicant who believes he/she meets the
permit eligibility criteria based on ownership of a vessel under a
different name, e.g., as may have occurred when ownership has changed
from individual to corporate or vice versa, must document his/her
continuity of ownership.
December 6, 2003, is the date the Council previously established
(68 FR 22667, April 29, 2003) as a possible control date if access to
the fishery was limited at a future date. Eligibility criterion (1)
above addresses a current owner of a vessel that was permitted in the
Gulf shrimp fishery on or prior to the control date. Eligibility
criterion (2) above addresses a person who on or prior to the control
date owned a vessel issued a Federal commercial vessel permit for Gulf
shrimp; who may have subsequently lost ownership or use of the vessel
through sale, repossession, sinking or major damage, etc.; and who
obtains an appropriately permitted vessel prior to publication of the
final rule that would implement the proposed moratorium.
NMFS estimates approximately 2,951 vessels have been issued Gulf
shrimp permits to date, and 285 of those would not meet the December 6,
2003, qualifying criterion; thus, the number of permitted vessels under
the moratorium would be 2,666. However, only approximately 45 of these
excluded vessels are anticipated to be significantly impacted by the
proposal. At least 126 of the 285 vessels were not known to be active
in the fishery since 2002. In addition, 87 of the active vessels were
identified as operating entirely in state waters, and 27 of the
remaining, active, non-qualifying vessels are small and potentially
could continue fishing profitably in state waters.
Moratorium Permit Requirement and Application Procedures
A commercial vessel moratorium permit for Gulf shrimp would be
required beginning 150 days after the effective date of any final rule
that implements Amendment 13, and on that date, all previously issued
open access commercial vessel permits for Gulf shrimp would be invalid.
After that date, a person could not fish for or possess shrimp from the
Gulf of Mexico EEZ without first obtaining a commercial vessel
moratorium permit for Gulf shrimp.
A person who desires a commercial vessel moratorium permit for Gulf
shrimp would be required to submit an application to the RA, Southeast
Region, NMFS, postmarked or hand delivered no later than the date one
year after the effective date of any final rule implementing Amendment
13. After that date, no applications for additional commercial vessel
moratorium permits for Gulf shrimp would be accepted. This 1-year
period for receiving applications is longer than normal but is
intended, in part, to provide additional time for potential applicants
who may have been adversely affected by recent hurricanes in the Gulf
of Mexico to apply. Application forms would be available from the RA.
Failure to apply in a timely manner would preclude permit issuance even
when the applicant otherwise meets the permit eligibility criteria.
To facilitate the application process, NMFS will send preprinted
applications to known qualifiers for which NMFS would have a valid
address, i.e., current owners of vessels permitted on or prior to
December 6, 2003. All other applicants must obtain an application from
the RA. Ultimately, it is the applicant's responsibility to ensure that
an application is obtained and submitted to NMFS prior to the
application deadline. A person who believes he/she qualifies for a
permit but does not receive an application from NMFS within 45 days
after the date of publication of any final rule
[[Page 17064]]
implementing Amendment 13 should request an application from the RA.
As specified at 50 CFR 622.4(d), a fee, calculated in accordance
with the procedures of the NOAA Finance Handbook, would be charged for
each application for a permit or written request for transfer or
replacement of a permit. The applicable fee would be specified on the
application form.
Recordkeeping and Reporting and Observer Requirements
The proposed rule would change the existing reporting requirements
for the Gulf of Mexico shrimp fishery. Current regulations at 50 CFR
622.5(a)(1)(iii) require the owner or operator of a vessel that fishes
for shrimp in the Gulf of Mexico EEZ or in adjoining state waters, or
that lands shrimp in an adjoining state, must provide information for
any fishing trip, as requested by the Science and Research Director
(SRD), Southeast Fisheries Science Center, NMFS, including, but not
limited to, vessel identification, gear, effort, amount of shrimp
caught by species, shrimp condition (heads on/heads off), fishing areas
and depths, and person to whom sold.
The proposed rule would revise these regulations to require all
owners or operators of permitted vessels, in contrast to those selected
by the SRD, to report annually their landings and their vessel and gear
characteristics. An owner or operator of a vessel with a Federal
commercial vessel permit for Gulf shrimp would be required to submit an
annual Gulf Shrimp Vessel and Gear Characterization Form at the time of
application for and renewal of a Gulf shrimp permit. Such owner or
operator must also report the permitted vessel's total annual shrimp
landings and value, by species, on a form provided by the SRD.
By requiring all vessels to report landings and vessel/gear
information, NMFS and the Council would be better able to estimate
effort and bycatch and stratify the universe of vessels' catches into
different classes or categories should the need arise in the future to
cap or reduce fishing effort. Compliance with the proposed reporting
requirements would be a condition for renewing a Federal shrimp vessel
permit, and submission of the Gulf Shrimp Vessel and Gear
Characterization Form would also be a requirement for issuance of a
Federal shrimp vessel permit. NMFS would provide the Gulf Shrimp Vessel
and Gear Characterization Form with all permit applications or renewal
applications.
The proposed rule would also establish a standardized method to
regularly monitor, report, and estimate the bycatch in the shrimp
fishery of the Gulf of Mexico, in compliance with Sec. 303(a)(11) of
the Magnuson-Stevens Act. The proposed rule would require owners and
operators of permitted vessels, if selected by the SRD, to install
electronic logbooks (ELBs) provided by NMFS, and to carry NMFS-approved
observers on trips selected by the SRD.
The ELB automatically records vessel position information over time
from which conclusions can be drawn regarding vessel activity, e.g.,
the vessel is trawling, stopped, or transiting. The ELB program would
be initiated by the SRD sending letters to selected owners or operators
of permitted shrimp vessels advising them of their obligation to
participate in the ELB program. In cooperation with the selected owner
or operator, NMFS would arrange to meet at the selected vessel to allow
NMFS staff or an authorized representative to install the ELB on the
vessel and to collect basic vessel and gear information (e.g., size and
number of shrimp trawls and type of bycatch reduction device and turtle
excluder device) that would later be correlated with the ELB
information. At intervals determined by the SRD, the ELB memory unit
would be removed and provided to the SRD. The owner or operator could
either mail the memory unit to the SRD or arrange for a NMFS or state
port agent to collect the unit. The ELB program would supplement
existing post-trip interview data and is intended to better estimate
the amount and location of effort occurring during a trip.
Bycatch in the fishery would then be estimated from a second
sampling program placing observers aboard selected shrimp vessels. NMFS
would use total effort estimates based on best available scientific
information to extrapolate observer-collected data into overall
estimates of total annual finfish and invertebrate bycatch.
Non-Regulatory Actions Contained in Amendment 13
In addition to the regulatory actions described above, Amendment 13
contains non-regulatory actions establishing or revising biological
reference points (BRPs) and stock determination criteria (SDCs). The
Magnuson-Stevens Act requires each FMP to define BRPs in the form of
maximum sustainable yield (MSY) and optimum yield (OY), and to specify
objective and measurable criteria for identifying when the fishery is
overfished and/or undergoing overfishing. These SDCs include a minimum
stock size threshold (MSST) and a maximum fishing mortality threshold
(MFMT). Together, these four parameters (MSY, OY, MSST, and MFMT) are
intended to provide fishery managers with the tools to measure the
status and performance of each stock in the fishery management unit.
The overfishing and overfished definitions for penaeid (brown, white,
and pink) shrimp stocks, and the MSY and OY definitions for the royal
red shrimp stock, were approved by NMFS in January 2000 as part of the
Council's Generic Sustainable Fisheries Act Amendment. Appropriate
definitions of overfishing and the overfished condition for royal red
shrimp, as well as MSY and OY definitions for the penaeid shrimp stocks
are needed. Approval of Amendment 13 would give effect to the following
actions.
Biological Reference Points (BRPs) for Penaeid Shrimp
MSY is considered to be the largest long-term average catch that
can be taken continuously from a stock under prevailing ecological and
environmental conditions. Current data gaps preclude the estimation of
biomass at MSY (BMSY). However, in accordance with the
Magnuson-Stevens Act's National Standard Guidelines, for annual stocks
like penaeid shrimp, it is appropriate to establish an MSY control rule
based on maintaining a constant level of escapement (parent stock) each
year that will produce sufficient recruits to maintain harvest at its
historical levels. This approach relates MSY in terms of catch to a
quantifiable level of escapement in each stock, where a proxy for
BMSY is established as the minimum parent stock size known
to have produced MSY the following year. MFMT, as a fishing mortality
that drives the stock below BMSY in a given year when
exceeded, would indicate overfishing. MSST, or the overfished level,
would represent a biomass level lower than 0.5*BMSY (i.e.,
one-half the parent stock size or other proxy). In other words, this
would be an MSY control rule that relied on constant escapement of
BMSY. The Council's approved definitions of the overfishing
level for each of the penaeid species in terms of a parent stock level
are as follows, and an overfished condition is one-half of these parent
stock levels:
? Brown Shrimp - 125 million individuals, age 7+ months
during the November through February period.
? White Shrimp - 330 million individuals, age 7+ months
during the May through August period.
[[Page 17065]]
? Pink Shrimp - 100 million individuals, age 5+ months
during the July through June year.
Based on these approved definitions, Amendment 13 proposes to
revise the definitions of MSY and OY for penaeid shrimp, reflecting the
yield that will maintain parent stock levels above MSST. MSY for the
penaeid shrimp stocks would be defined by the lowest and highest
landings taken annually from 1990-2000 not resulting in recruitment
overfishing. OY would be defined as a yield equal to MSY. MSY for the
brown shrimp stock would be 67 to 104 million lb (30.4 to 47.2 million
kg) of tails. MSY for the white shrimp stock would be 35 to 71 million
lb (15.9 to 32.2 million kg) of tails. MSY for the pink shrimp stock
would be 6 to 19 million lb (2.7 to 8.6 million kg) of tails.
Stock Status Determination Criteria for Royal Red Shrimp
The Council's approved definition of MSY and OY for royal red
shrimp is a catch between 392,000 and 650,000 lb (177,808 and 294,835
kg) of tails, annually. Based on these existing BRPs, the Council is
proposing new definitions for overfishing (MFMT) and the overfished
condition (MSST). MFMT for royal red shrimp would be defined as a
fishing mortality rate (F) resulting in an annual catch exceeding MSY
for 2 consecutive years. The royal red shrimp stock would be considered
overfished when its spawning stock biomass is less than 50 percent of
BMSY. Specific data, such as the parent stock data available
for penaeid shrimp, are not available for the royal red shrimp fishery.
Only catch and limited effort information is available. However, with
the proposed limited entry program and reporting requirements of this
amendment and rule, a time series of data regarding the royal red
shrimp fishery would be compiled. Until those data are robust enough to
be used in further modifying the BRPs and SDCs, the Council has
proposed to revise its existing SDCs based on catch, in accordance with
Technical Guidelines recommendations.
Changes Proposed by NMFS
In 50 CFR 622.4(g)(1), NMFS is proposing to modify the procedures
for transfers of all permits, licenses, and endorsements to require
that the seller have the appropriate transfer documents notarized. This
proposed revision is intended to strengthen verification of the
authenticity of changes in ownership related to transfers of permits,
licenses, and endorsements.
Classification
At this time, NMFS has not determined that Amendment 13 is
consistent with the Magnuson-Stevens Act and other applicable laws.
NMFS, in making that determination, will take into account the data,
views, and comments received during the comment periods on Amendment 13
and this proposed rule.
This proposed rule has been determined to be significant for
purposes of Executive Order 12866.
NMFS prepared an IRFA, as required by section 603 of the Regulatory
Flexibility Act, for this proposed rule. The IRFA describes the
economic impact this proposed rule, if adopted, would have on small
entities. A description of the action, why it is being considered, and
the legal basis for this action are contained at the beginning of this
section in the preamble and in the SUMMARY section of the preamble. A
summary of the IRFA follows.
This proposed rule would: (1) Require participants in the royal red
shrimp fishery to obtain a royal red shrimp endorsement to the existing
commercial shrimp vessel permit; (2) define biological reference points
and status determination criteria for the royal red and penaeid shrimp
stocks; (3) establish a standardized bycatch reporting methodology by
requiring a sample of permitted vessels to carry electronic logbooks
(ELBs) and/or observers upon request; (4) require all permitted vessels
to submit a vessel and gear characterization form on an annual basis;
(5) establish a moratorium on the issuance of new Federal Gulf shrimp
vessel permits based on the December 6, 2003, control date; and (6)
require all permitted vessels to report and certify their landings.
The purpose of the proposed rule is to: Establish status
determination criteria for penaeid (brown, white, and pink) and royal
red shrimp stocks; enhance the collection of information; improve
estimates of effort and bycatch in the fishery; and promote economic
stability by reducing permit speculation and increasing vessel owners'
flexibility to enter and exit the Gulf shrimp fishery.
No duplicative, overlapping, or conflicting Federal rules have been
identified.
It is estimated that 2,951 small entities will be affected by the
proposed rule. This estimate represents the number of vessels that
obtained a Gulf shrimp permit with an effective date on or before May
2, 2005. Certain actions would apply to all permitted vessels, while
others would only apply to a subset of those permitted vessels. The
actions specific to the royal red shrimp fishery would affect 15 small
entities at most, though all but one of these entities is included in
the larger group of 2,951.
The average annual gross revenue per permitted vessel is estimated
to be $100,477, with a range of $0 to $473,564. This wide range
illustrates a high degree of heterogeneity between permitted vessels
with respect to their gross revenues. Further, gross revenue earned
from the various fisheries these entities operate in differs
considerably between vessels. On average, permitted vessels rely on the
Gulf food shrimp fishery for nearly 79 percent of their gross revenues.
Therefore, most permitted vessels have a relatively high degree of
dependency on the Gulf food shrimp fishery. However, some permitted
vessels are inactive or ``latent'' and appear to have no reliance on
the Gulf food shrimp fishery. ``Small'' vessels (vessels less than 60
ft (18.3 m) in length) generate lower gross revenues on average
($30,568) relative to ``large'' vessels (vessels of 60 ft (18.3 m) or
more in length) ($132,890). The range of gross revenues for large
vessels is $0 and $473,564, while that of small vessels is $0 and
$246,391. All royal red shrimp vessels fall into the ``large'' vessel
category.
The fleet of permitted vessels is much more homogeneous with
respect its physical characteristics, though some differences do exist.
On average, small vessels are smaller in regards to almost all of their
physical attributes (e.g., they use smaller crews and fewer and smaller
nets, have less engine horsepower and fuel capacity, etc.). Small
vessels are also older on average. Large vessels also tend to be steel-
hulled. Conversely, fiberglass hulls are most prominent among small
vessels, although steel and wood hulls are also common. Nearly two-
thirds of the large vessels have freezing capabilities, while few small
vessels have such equipment. Small vessels rely on ice for
refrigeration and storage, although more than one-third of large
vessels also rely on ice. Some vessels are so small that they rely on
live wells for storage.
An important difference between large and small vessels is with
respect to their dependency on the food shrimp fishery. The percentage
of gross revenues from food shrimp landings is nearly 87 percent for
large vessels, but only slightly more than 61 percent for small
vessels. Thus, on average, large vessels are more dependent than their
smaller counterparts on the food shrimp fishery. However, dependency on
food shrimp is much more variable within the small vessel sector than
the large
[[Page 17066]]
vessel sector. That is, many small vessels are quite dependent on food
shrimp landings, while others show little, if any, dependency.
When examining the distribution of gross revenues across vessels,
of the 2,951 permitted vessels, 554 vessels did not have any verifiable
Gulf food shrimp landings in 2002. Large and small vessels comprised
approximately 75 percent and 25 percent of the active group. Small
vessels represented a majority (53 percent) of the inactive group. If
inactive or ``latent'' vessels are removed from consideration, for the
permitted group as a whole, dependency on Gulf shrimp revenues
increases to more than 97 percent. For large vessels, dependency on
Gulf shrimp revenues increased to nearly 98 percent. Consistent with
the statistics above, when the inactive vessels are removed from
consideration, the change in dependency on Gulf shrimp revenues is most
dramatic for the small vessels, with nearly 94 percent of their gross
revenues coming from Gulf shrimp landings.
According to the most recent projections, on average, both small
and large vessels are experiencing significant economic losses, ranging
from a -27 percent rate of return in the small vessel sector to a -36
percent rate of return in the large vessel sector, or -33 percent on
average for the fishery as a whole. Therefore, almost any but the most
minor additional financial burden would be expected to generate a
significant adverse impact on directly affected vessels and potentially
hasten additional exit from the fishery.
The Small Business Administration defines a small business that
engages in commercial fishing as a firm that is independently owned and
operated, is not dominant in its field of operation, and has annual
receipts up to $3.5 million per year. There are insufficient data
regarding potential ownership affiliation between vessels to identify
whether an individual entity controls sufficient numbers of vessels to
achieve large entity status. Therefore, it is assumed that each vessel
represents a separate business entity and, based on the revenue
profiles provided above, all entities in the Gulf of Mexico shrimp
fishery are assumed to be small entities. Because all permitted vessels
would be directly affected by one or more of the proposed actions in
this proposed rule, and because all vessels are considered to be small
entities, the proposed rule will affect a substantial number of small
entities. However, as explained below, the vast majority of these
vessels will not be impacted under the most significant actions.
The determination of significant economic impact can be ascertained
by examining two issues: disproportionality and profitability. The
disproportionality question is: will the regulations place a
substantial number of small entities at a significant competitive
disadvantage to large entities? Even though there is considerable
diversity among the permitted vessels with respect to physical and
operational characteristics, all entities are considered to be small
entities, and therefore disproportionality of impacts between large and
small entities is not an issue.
The profitability question is: will the regulations significantly
reduce profit for a substantial number of small entities? According to
the most recent projections, on average, both small and large vessels
are experiencing significant economic losses, ranging anywhere from a -
27 percent rate of return in the small vessel sector to a -36 percent
rate of return in the large vessel sector, or -33 percent on average
for the fishery as a whole. Therefore, almost any but the most minor
additional financial burden would be expected to significantly reduce
profit because profits are negative, on average, throughout the fishery.
The royal red shrimp endorsement requirement would result in an
additional cost of $20 to the vessels operating in this fishery. This
is a minimal cost and would not significantly reduce profit for the
vessels operating in this fishery.
The actions, which define biological reference points and establish
status determination criteria definitions for the royal red and penaeid
shrimp stocks, require a sample of permitted vessels to carry
electronic logbooks (ELBs) and/or observers upon request, require all
permitted vessels to submit a vessel and gear characterization form on
an annual basis, and require all permitted vessels to report and
certify their landings, would not affect vessel profitability because
they impose no direct financial costs. NMFS expects to cover all direct
financial costs associated with the ELB and observer programs.
However, it should be noted that the reporting requirements will
likely impose a minimal opportunity cost by imposing time burdens.
Specifically, the requirement for all permitted vessel owners to submit
a vessel and gear characterization form will generate a time burden of
approximately 30 minutes per permitted vessel. According to the Bureau
of Labor Statistics (BLS), the average wage of first line supervisors/
managers in the fishing, forestry, and farming industries was $18.14
per hour as of May 2003, which is the most currently available
information. Therefore, the form would create an annual opportunity
cost of approximately $9 per vessel. Additionally, all permitted
vessels will be required to submit their landings information to NMFS.
This information could be included on either the vessel and gear
characterization form or the existing permit application form without
any significant increase in the estimated time burdens associated with
either form.
The single action that could impose significant costs and, thereby,
significantly reduce the profitability of the affected small entities
is the permit moratorium. The proposed rule limits participation to
those vessels meeting the December 6, 2003, control date. Of the 2,951
permitted vessels, 285 vessels did not obtain their permits by the
control date and, therefore, would not be issued a moratorium permit.
However, according to the best available data, of those 285 vessels,
126 were not active in the Gulf shrimp fishery (EEZ or state waters),
and an additional 87 vessels were determined to operate exclusively in
state waters. It is, therefore, concluded that these 213 vessels will
not experience direct and adverse financial impacts as a result of
losing their permits. The remaining 72 vessels, of which 45 are large
and 27 are small, were active in the EEZ and therefore would experience
direct and adverse financial impacts.
Assuming these 72 vessels would only lose their shrimp landings and
gross revenues from the EEZ (i.e., they continue their shrimping
operations in state waters), they would face revenue losses ranging
between 0.8 percent and 100.0 percent of their gross revenues, with an
average loss of 49.3 percent per vessel. The large vessels will face a
larger revenue loss on average (54.3 percent) than the small vessels
(29.6 percent). However, if the small vessels shift their effort
entirely into state waters and the large vessels exit the Gulf shrimp
fishery instead, then only the 45 large vessels would experience a loss
in landings and gross revenues, although that loss would be 100 percent
of their gross revenues. On the other hand, because the permits would
be fully transferable under the proposed rule, these 72 vessels may be
able and willing to purchase a permit from a permitted vessel in order
to continue current operations. Given an estimated permit purchase
price of $5,000, this cost would represent 5.7 percent of these
vessels' average gross revenues. Thus, in the current, adverse economic
climate in the Gulf shrimp fishery,
[[Page 17067]]
regardless of which behavioral assumptions are made, profits would be
significantly reduced for the 45 to 72 directly affected vessels that
would not qualify for a moratorium permit under the proposed rule.
Two alternatives, including the no action alternative, were
considered to the proposed requirement for a royal red shrimp
endorsement to the Gulf shrimp permit. One alternative would have
created a separate royal red shrimp permit. Although the direct cost of
a separate royal red shrimp permit would be the same as for a royal red
shrimp endorsement to the Gulf shrimp permit, at least for participants
that also possess a Gulf shrimp permit ($20), this alternative would
have eliminated the relationship between participation in the royal red
shrimp fishery and possession of a Gulf shrimp permit. As a result,
vessels that did not qualify under the proposed permit moratorium
action and vessels from other fisheries would be able to obtain royal
red shrimp permits, though at a higher cost of $50 per permit, and,
thereby, potentially introduce greater instability in the royal red
shrimp fishery. Stable participation is particularly important in the
royal red shrimp fishery because it is managed under a hard quota of
392,000 lb (177,808 kg). The no action alternative would not have met
the Council's objective of creating a readily available means to
identify participants and operations in the royal red shrimp fishery.
A total of nine alternatives, including three no action
alternatives, were considered for the establishment of a standardized
bycatch reporting methodology portion of the proposed rule. In general,
the alternatives not included in the proposed rule would have either
not met required mandates, imposed greater reporting and record keeping
burdens, or not met the Council's objectives.
Two alternatives to the proposed rule would have required paper
logbooks. Paper logbooks can impose significant impacts on small
entities. Assuming a time burden of 10 minutes per daily form, and an
average of 182 days at sea per vessel per year, the average annual time
burden per vessel would be approximately 30.33 hours. From an economic
perspective, even though there is no direct cash expense from a paper
logbook program, there is an opportunity cost associated with any time
burden created by additional reporting requirements. As previously
noted, opportunity cost is approximated using the average wage or
salary of the affected persons, who in this case would be the vessel
owners and captains as they would be responsible for submitting the
logbook forms. Using the average wage of first line supervisors/
managers in the fishing, forestry, and farming industries, which was
$18.14 as of May 2003 according to the BLS, the average annual
opportunity cost per vessel of a paper logbook reporting requirement
would be approximately $550.19 ($18.14/hour * 30.33 hours). If only a
sample of vessels were selected to report, which was also considered
but not proposed, then the opportunity cost would be proportionally
less and dependent on the chosen sampling rate for the fishery as a
whole, but still $550.19 annually per vessel.
An alternative to the proposed ELB requirement would have required
all permitted vessels to use ELBs rather than a statistically valid
sample. Requiring all vessels to use ELBs would have increased the
costs and burden of the program relative to the proposed rule. Given
that the proposed rule does not require paper logbooks, selecting the
no action alternative for ELBs would have resulted in the Council's
objective of improving estimates of effort and bycatch in the Gulf
shrimp fishery not being met.
An alternative to the proposed observer program would have utilized
the existing voluntary observer program. However, such a system does
not provide for a statistically valid sample of the fishery and
provides no authority to ensure adequate representation. Thus, this
alternative would not meet the Council's objective of improving
estimates of effort and bycatch in the Gulf shrimp fishery. Given that
Section 303(a)(11) of the Magnuson-Stevens Act requires the
establishment of a standardized bycatch reporting methodology, and
bycatch data can only be practically collected by observers in this
fishery, the no action alternative would cause the Council to not be in
compliance and, thus, was not proposed.
Two alternatives, including the no action alternative, were
considered to the proposed vessel and gear characterization form
requirement. The no action alternative and the alternative to require
only a sample of permitted vessels to submit the vessel and gear
characterization form would have reduced the minimal opportunity cost
associated with the form. However, because ELBs do not collect gear
information, and the ELB and observer programs require certain census
level information to ensure that statistically valid samples are
selected, both alternatives would not have met the Council's objective
of improving estimates of effort and bycatch in the Gulf shrimp fishery.
One alternative was considered to the requirement for all vessels
to report and certify their landings to NMFS. This alternative would
have continued NMFS' current practice of only having selected vessels
as opposed to all vessels individually report their landings
information. Maintaining this current practice would severely limit the
Council's ability to determine whether permitted vessels are active in
the fishery and the extent of that participation. In turn, this lack of
information would significantly hamper the Council's ability to
potentially develop alternatives for long-term effort management in the
fishery in the future, which is inconsistent with the Council's objectives.
Including the no action alternative, three alternatives were
considered to the proposed permit moratorium. The no action alternative
would not achieve the Council's objective of promoting economic
stability by reducing permit speculation and increasing vessel owners'
flexibility to enter and exit the Gulf shrimp fishery.
Another alternative would have used a qualification date of May 18,
2004, rather than a December 6, 2003, control date. Under this
alternative, the number of non-qualifying vessels would be 161, which
is 124 fewer vessels than under the proposed rule. Of those 161
vessels, 68 vessels were not active in the Gulf shrimp fishery and 46
operated in state waters only according to the best available data.
Thus, it is concluded that these 114 vessels' profits would not have
been affected under this alternative. Assuming that the remaining 47
vessels would lose all their landings and gross revenues from the EEZ,
losses per vessel would range between 0.9 percent and 100.0 percent of
their gross revenues, with an average loss in gross revenues of 48.4
percent. Contrariwise, if it is assumed that small vessels shift their
operations into state waters and large vessels exit the fishery, then
only the 26 large vessels would be directly impacted. For these
vessels, they would lose 100 percent of their gross revenues. However,
because the permits would be fully transferable under this alternative,
the 47 vessels that have been active in the EEZ may be able and willing
to purchase a permit from a qualifying vessel in order to continue
current operations. Given an estimated permit purchase price of $5,000,
this cost would represent 5.2 percent of these vessels' average gross
revenues. Although this alternative would generate somewhat less
adverse economic impacts relative to the
[[Page 17068]]
proposed action, it would also allow for a higher number of latent or
speculative permit holders, which is contrary to the Council's objectives.
Another alternative would have allowed all vessels that possessed a
valid permit within one year of the publication date of the final rule
implementing these actions to qualify for a moratorium permit. Because
the date of the final rule's publication is presently unknown, it was
assumed that all vessels that possessed a permit on at least one day
during the current calendar year would qualify under this alternative.
Thus, using this assumption, 347 vessels would be denied a moratorium
permit under this alternative according to currently available
information. Of those 347 vessels, 88 were not active in the Gulf
shrimp fishery, and 72 only operated in state waters. Thus, it is
concluded that these 160 vessels' profits would not have been affected
under this alternative. The other 187 vessels were active in the EEZ
and thus would have been directly impacted. Specifically, assuming
these vessels would lose all their landings and gross revenues from the
EEZ, the percentage losses in gross revenues would range from 0.2
percent to 100.0 percent, with an average loss of 71.8 percent. If it
is assumed that small vessels shift their operations into state waters
and large vessels exit the fishery, then only the 168 large vessels
would be directly impacted. These 168 large vessels would lose 100
percent of their gross revenues. However, because the permits would be
fully transferable under this alternative, the 187 vessels active in
the EEZ may be able and willing to purchase a permit from a qualifying
vessel in order to continue current operations. Given an estimated
permit purchase price of $5,000, this cost would represent 4.3 percent
of these vessels' average gross revenues. However, if all the owners of
these 187 vessels were to renew their permits prior to the publication
of the final rule, then none of these vessels would be impacted under
this alternative. Although this alternative could potentially generate
less adverse economic impacts than the proposed rule, based on
currently available information, it is more likely that it would
generate greater adverse economic impacts. Furthermore, because this
alternative would continue to allow individuals to apply for and
receive valid permits until the publication of the final rule, it could
also lead to a considerably higher number of latent or speculative
permit holders, which is contrary to the Council's objectives.
This proposed rule contains collection-of-information requirements
subject to the PRA--namely, requirements for: (1) Application for a
royal red shrimp endorsement; (2) electronic logbook installation and
data downloads; (3) notification for observer placement prior to a
trip; (4) vessel and gear characterization form; and (5) submission of
landings data. These requirements have been submitted to OMB for
approval. The public reporting burdens for these collections of
information are estimated to average 20 minutes, 31 minutes, 4 minutes,
20 minutes, and 5 minutes per response for items (1), (2), (3), (4),
and (5), respectively. These estimates of the public reporting burdens
include the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and
reviewing the collections of information. Public comment is sought
regarding: Whether these proposed collections of information are
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; the
accuracy of the burden estimates; ways to enhance the quality, utility,
and clarity of the information to be collected; and ways to minimize
the burden of the collections of information, including through the use
of automated collection techniques or other forms of information
technology. Send comments regarding the burden estimates or any other
aspect of the collection-of-information requirements, including
suggestions for reducing the burden, to NMFS and to OMB (see ADDRESSES).
Notwithstanding any other provision of law, no person is required
to respond to, nor shall a person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements
of the Paperwork Reduction Act (PRA), unless that collection of
information displays a currently valid OMB control number.
List of Subjects in 50 CFR Part 622
Fisheries, Fishing, Puerto Rico, Reporting and recordkeeping
requirements, Virgin Islands.
Dated: March 30, 2006.
James W. Balsiger,
Acting Deputy Assistant Administrator for Regulatory Programs, National
Marine Fisheries Service.
For the reasons set out in the preamble, 50 CFR part 622 is
proposed to be amended as follows:
PART 622--FISHERIES OF THE CARIBBEAN, GULF, AND SOUTH ATLANTIC
1. The authority citation for part 622 continues to read as follows:
Authority: 16 U.S.C. 1801 et seq.
2. In Sec. 622.4, paragraphs (a)(2)(xi) and (g)(1) are revised,
and paragraph (s) is added to read as follows:
Sec. 622.4 Permits and fees.
(a) * * *
(2) * * *
(xi) Gulf shrimp fisheries--(A) Gulf shrimp permit. For a person
aboard a vessel to fish for shrimp in the Gulf EEZ or possess shrimp in
or from the Gulf EEZ, a commercial vessel permit for Gulf shrimp must
have been issued to the vessel and must be on board. See paragraph (s)
of this section regarding a moratorium on commercial vessel permits for
Gulf shrimp and the associated provisions. See the following paragraph,
(a)(2)(xi)(B) of this section, regarding an additional endorsement
requirement related to royal red shrimp.
(B) Gulf royal red shrimp endorsement. Effective 150 days after the
effective date of the final rule implementing the moratorium under
paragraph (s) of this section, for a person aboard a vessel to fish for
royal red shrimp in the Gulf EEZ or possess royal red shrimp in or from
the Gulf EEZ, a commercial vessel permit for Gulf shrimp with a Gulf
royal red shrimp endorsement must be issued to the vessel and must be
on board.
* * * * *
(g) * * *
(1) Vessel permits, licenses, and endorsements and dealer permits.
A vessel permit, license, or endorsement or a dealer permit issued
under this section is not transferable or assignable, except as
provided in paragraph (m) of this section for a commercial vessel
permit for Gulf reef fish, in paragraph (n) of this section for a fish
trap endorsement, in paragraph (o) of this section for a king mackerel
gillnet permit, in paragraph (p) of this section for a red snapper
license, in paragraph (q) of this section for a commercial vessel
permit for king mackerel, in paragraph (r) of this section for a
charter vessel/headboat permit for Gulf coastal migratory pelagic fish
or Gulf reef fish, in paragraph (s) of this section for a commercial
vessel moratorium permit for Gulf shrimp, in Sec. 622.17(c) for a
commercial vessel permit for golden crab, in Sec. 622.18(e) for a
commercial vessel permit for South Atlantic snapper-grouper, or in
Sec. 622.19(e) for a commercial vessel permit for South
[[Page 17069]]
Atlantic rock shrimp. A person who acquires a vessel or dealership who
desires to conduct activities for which a permit, license, or
endorsement is required must apply for a permit, license, or
endorsement in accordance with the provisions of this section. If the
acquired vessel or dealership is currently permitted, the application
must be accompanied by the original permit and a copy of a signed bill
of sale or equivalent acquisition papers. In those cases where a
permit, license, or endorsement is transferable, the seller must sign
the back of the permit, license, or endorsement and have the signed
transfer document notarized.
* * * * *
(s) Moratorium on commercial vessel permits for Gulf shrimp. The
provisions of this paragraph (s) are applicable through the date that
is 10 years after the effective date of the final rule that implements
this moratorium.
(1) Date moratorium permits are required. Beginning 150 days after
the effective date of the final rule that implements this moratorium,
the only valid commercial vessel permits for Gulf shrimp are those
issued under the moratorium criteria in this paragraph (s).
(2) Initial eligibility for a moratorium permit. Initial
eligibility for a commercial vessel moratorium permit for Gulf shrimp
is limited to a person who
(i) Owns a vessel that was issued a Federal commercial vessel
permit for Gulf shrimp on or before December 6, 2003; or
(ii) On or before December 6, 2003, owned a vessel that was issued
a Federal commercial vessel permit for Gulf shrimp and, prior to the
date of publication of the final rule that implements this moratorium,
owns a vessel with a Federal commercial permit for Gulf shrimp that is
equipped for offshore shrimp fishing, is at least 5 net tons (4.54
metric tons), and is documented by the Coast Guard.
(3) Application deadline and procedures. An applicant who desires a
commercial vessel moratorium permit for Gulf shrimp must submit an
application to the RA postmarked or hand delivered not later than the
date 1 year after the effective date of the final rule implementing
this moratorium. After that date, no applications for additional
commercial vessel moratorium permits for Gulf shrimp will be accepted.
Application forms are available from the RA. Failure to apply in a
timely manner will preclude permit issuance even when the applicant
otherwise meets the permit eligibility criteria.
(4) Determination of eligibility. NMFS' permit records are the sole
basis for determining eligibility based on permit history. An applicant
who believes he/she meets the permit eligibility criteria based on
ownership of a vessel under a different name, as may have occurred when
ownership has changed from individual to corporate or vice versa, must
document his/her continuity of ownership.
(5) Incomplete applications. If an application that is postmarked
or hand-delivered in a timely manner is incomplete, the RA will notify
the applicant of the deficiency. If the applicant fails to correct the
deficiency within 30 days of the date of the RA's notification, the
application will be considered abandoned.
(6) Notification of ineligibility. If the applicant does not meet
the applicable eligibility requirements of paragraph (s)(2) of this
section, the RA will notify the applicant, in writing, of such
determination and the reasons for it.
(7) Permit transferability. Commercial vessel moratorium permits
for Gulf shrimp are fully transferable, with or without the sale of the
vessel. To request that the RA transfer a commercial vessel moratorium
permit for Gulf shrimp, the owner of a vessel that is to receive the
transferred permit must complete the transfer information on the
reverse of the permit and return the permit and a completed application
for transfer to the RA. Transfer documents must be notarized as
specified in paragraph (g)(1) of this section.
(8) Renewal. (i) Renewal of a commercial vessel moratorium permit
for Gulf shrimp is contingent upon compliance with the recordkeeping
and reporting requirements for Gulf shrimp specified in Sec.
622.5(a)(1)(iii).
(ii) A commercial vessel moratorium permit for Gulf shrimp that is
not renewed will be terminated and will not be reissued during the
moratorium. A permit is considered to be not renewed when an
application for renewal, as required, is not received by the RA within
1 year of the expiration date of the permit.
3. In Sec. 622.5, paragraph (a)(1)(iii) is revised to read as follows:
Sec. 622.5 Recordkeeping and reporting.
* * * * *
(a) * * *
(1) * * *
(iii) Gulf shrimp--(A) General reporting requirement. The owner or
operator of a vessel that fishes for shrimp in the Gulf EEZ or in
adjoining state waters, or that lands shrimp in an adjoining state,
must provide information for any fishing trip, as requested by the SRD,
including, but not limited to, vessel identification, gear, effort,
amount of shrimp caught by species, shrimp condition (heads on/heads
off), fishing areas and depths, and person to whom sold.
(B) Electronic logbook reporting. The owner or operator of a vessel
for which a Federal commercial vessel permit for Gulf shrimp has been
issued and who is selected by the SRD must participate in the NMFS-
sponsored electronic logbook reporting program as directed by the SRD.
In addition, such owner or operator must provide information regarding
the size and number of shrimp trawls deployed and the type of BRD and
turtle excluder device used, as directed by the SRD. Compliance with
the reporting requirements of this paragraph (B) is required for permit
renewal.
(C) Vessel and Gear Characterization Form. All owners or operators
of vessels applying for or renewing a commercial vessel moratorium
permit for Gulf shrimp must complete an annual Gulf Shrimp Vessel and
Gear Characterization Form. The form will be provided by NMFS at the
time of permit application and renewal. Compliance with this reporting
requirement is required for permit issuance and renewal.
(D) Landings report. The owner or operator of a vessel for which a
Federal commercial vessel permit for Gulf shrimp has been issued must
annually report the permitted vessel's total annual landings of shrimp
and value, by species, on a form provided by the SRD. Compliance with
this reporting requirement is required for permit renewal.
* * * * *
4. In Sec. 622.8, paragraph (a)(4) is added to read as follows:
Sec. 622.8 At-sea observer coverage.
(a) * * *
(4) Gulf shrimp. A vessel for which a Federal commercial vessel
permit for Gulf shrimp has been issued must carry a NMFS-approved
observer, if the vessel's trip is selected by the SRD for observer
coverage. Vessel permit
[[Page 17070]]
renewal is contingent upon compliance with this paragraph (a)(4).
* * * * *
[FR Doc. 06-3263 Filed 3-31-06; 3:05 pm]
BILLING CODE 3510-22-S