[Federal Register Volume 59, Number 188 (Thursday, September 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24136]
[[Page Unknown]]
[Federal Register: September 29, 1994]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 676
[Docket No. 940845-4245; I.D. 081794A]
RIN 0648-AG98
Limited Access Management of Federal Fisheries In and Off of
Alaska
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 a proposed rule to implement a regulatory
amendment affecting the Pacific halibut and sablefish fisheries in and
off the State of Alaska (Alaska or State). This action explains the
methodology used to calculate Community Development Quota (CDQ)
compensation for the Pacific halibut and sablefish individual fishing
quota (IFQ) program and would codify a systematic procedure for CDQ
compensation.
DATES: Comments must be received no later than November 14, 1994.
ADDRESSES: Comments may be sent to Ronald J. Berg, Chief, Fisheries
Management Division, Alaska Region, NMFS, 709 W. 9th, Room 453, Juneau,
AK 99801, or P.O. Box 21668, Juneau, AK 99802, Attention: Lori J.
Gravel. Copies of this proposed rule and the Regulatory Impact Review
(RIR) may be obtained from the North Pacific Fishery Management
Council, P.O. Box 103136, Anchorage, AK 99510.
FOR FURTHER INFORMATION CONTACT: John Lepore, 907-586-7228.
SUPPLEMENTARY INFORMATION:
Background
The Pacific halibut and sablefish CDQ program was designed to
assist in the revitalization of rural communities in Western Alaska by
providing those communities with access to fishery resources within
their geographical proximity. The CDQ program was developed under the
authority, and is consistent with the management objectives, of the
Magnuson Fishery Conservation and Management Act (Magnuson Act) and the
Northern Pacific Halibut Act (Halibut Act).
CDQ Compensation Formula
The CDQ compensation formula would compensate persons for
reductions in the amount of Pacific halibut and sablefish available for
harvest with IFQ in CDQ areas resulting from allocations of those
fishery resources to the CDQ program. Compensated persons would be
those who are initially issued quota share (QS) in CDQ areas. This one-
time compensation adjustment would be in the form of QS in each of the
non-CDQ areas.
The CDQ compensation formula would affect all persons who are
initially issued QS, including those persons who did not participate
historically in the Pacific halibut or sablefish fisheries in CDQ
areas. The North Pacific Fishery Management Council (Council) intended
that all persons who are initially issued QS share the burden of
compensating persons for reductions in the amount of Pacific halibut
and sablefish available for harvest with IFQ in CDQ areas. This would
be accomplished by distributing the compensation burden among all
persons who would be initially issued QS by reducing their harvest
privilege by a fixed percentage. Even persons who receive compensation
would share the burden.
The amount of compensation QS a person receives would equal the
reduction in the QS amount of harvestable fishery resources that person
would receive in a CDQ area, minus the fixed percentage reduction
shared by all persons who would be initially issued QS. Persons
eligible for compensation would receive a portion of the total amount
of compensation QS in each non-CDQ area. The compensation QS in each
non-CDQ area would be proportional to the size of the QS pool of that
area. For example, a person who would be eligible for compensation QS
for halibut would receive the greatest amount of compensation QS in
area 3A, which has the largest QS pool, and the least amount in area
4A, which has the smallest QS pool.
CDQ Compensation Formula Methodology
The following describes how the CDQ compensation formula operates.
All total allowable catch (TAC) amounts are the TAC average for the
years 1988-1994. First, (1) add the CDQ, based on the TAC average, from
all management areas for that species to calculate total CDQ for that
species, (2) add the TAC from all management areas for that species to
calculate total TAC for that species, and (3) divide the total CDQ by
the total TAC. This provides the proportion (percentage) of the total
TAC going to the CDQ program for each species.
Second, multiply the proportion (percentage) of the total TAC going
to the CDQ program (calculated above) by the TAC for each management
area. This provides the total pounds of fish that will be used for CDQ
compensation in that management area.
Third, divide the original QS (quota share pool) for each
management area by the part of the TAC that will not be used for
compensation in that area. This provides the QS per pound of non-
compensating TAC.
Fourth, multiply the part of the TAC in each area that will be used
for compensation by the QS per pound of noncompensating TAC for that
area. This provides the QS created and used for compensation in that
area.
Fifth, for each person with QS in a CDQ area, (1) total the IFQ
lost by that person to CDQ in all areas and then (2) multiply that
total by the quantity one minus the sum of the proportion of the total
TAC going to the CDQ program for each species. This provides the pounds
used to determine the amount of compensation QS a person will receive
for that species.
Sixth, sum the pounds used to determine the amount of compensation
QS each person will receive for that species. This provides the total
pounds used to determine the compensation QS for all persons for that
species.
Seventh, divide the pounds used to determine the amount of
compensation QS each person will receive for a species (from step 5) by
the total pounds used to determine the compensation QS for all persons
for a species (from step 6). This provides the proportion of new QS in
each area that a person should receive as compensation.
Eighth, and finally, multiply the proportion of the new QS in each
area that the person should receive as compensation by the new QS
available for compensation in each area (calculated in step 4). This
provides the QS a person would receive as compensation in each area.
Example
If a person was initially issued 5,000 QS for Pacific halibut in
regulatory Area 4E, that person would have all 5,000 QS transferred
into CDQ compensation QS. This is because 100 percent of the TAC of
Pacific halibut in regulatory Area 4E is allocated to the CDQ program.
To calculate how much CDQ compensation QS the person would receive in
one of the non-CDQ areas (Area 2C is used in this example):
1. Add CDQ from all areas for Pacific halibut (based on the 1988-
1994 TAC average). The resulting sum is 1,038,571 lb (471.09 mt).
2. Add the TAC from all areas for Pacific halibut (based on the
1988-1994 average). The resulting sum is 50,581,429 lb (22,943.35 mt).
3. Divide the resulting sum from step 1 by the resulting sum in
step 2. The resulting quotient is 0.0205 (or 2.05 percent) and is the
proportion of the total TAC allocated to the CDQ program for Pacific
halibut.
4. Multiply the resulting quotient in step 3 by the 1988-1994 TAC
average for Pacific halibut in area 2C, which is 9,700,000 lb (4,399.85
mt). The resulting product is 198,850 lb (90.20 mt) and is the total
pounds of Pacific halibut that will be used as CDQ compensation from
area 2C.
5. Divide the QS pool for area 2C, 57,575,315, by the TAC in that
area that will not be used as compensation, 9,501,150 lb (4,309.65 mt).
The resulting quotient, 6.06, is the QS per pound of noncompensating
TAC.
6. Multiply the total pounds of Pacific halibut that will be used
as compensation from area 2C, 198,850 lb (90.2 mt), by the QS per pound
of non-compensating TAC, which is 6.06. The resulting product,
1,205,031, is how many QS will be created in area 2C to use as
compensation.
7. Multiply the proportion of the total TAC going to the CDQ
program for Pacific halibut, 0.0205, by the amount of IFQ the person
loses to the CDQ program in area 4E, which is 3,239 lb (1.5 mt). The
resulting product is 66.
8. Subtract the resulting product in step 7 from the amount of IFQ
the person loses to the CDQ program in area 4E, which is 3,239 lb (1.5
mt). The resulting difference is 3,173 lb (1.4 mt).
9. Multiply the proportion of the total TAC going to the CDQ
program for Pacific halibut, 0.0205, by the total lost IFQ to CDQ in
all areas for Pacific halibut, which is 1,038,571 lb (471.1 mt). The
resulting product is 21,291 lb (9.7 mt).
10. Subtract the resulting product in step 9 from the total lost
IFQ to CDQ in all areas for Pacific halibut, which is 1,038,571 lb
(471.1 mt). The resulting difference is 1,017,280 lb (9.7 mt).
11. Divide the resulting difference in step 8 by the resulting
difference in step 10. The resulting quotient, 0.0031, is the
proportion of new QS in area 2C the person will receive as
compensation.
12. Multiply the resulting quotient in step 11 by the amount of new
QS created in area 2C to be used as compensation, which is 1,205,031.
The resulting product, 3,736, is the amount of QS the person will
receive as compensation in area 2C.
This process would be repeated for each non-CDQ area by using the
appropriate numbers for that area. (NOTE: This example uses data that
may be changed before the CDQ compensation QS adjustment. For example,
the QS pools, and therefore the resulting CDQ compensation QS, may be
different than in this calculation once all applications have been
received by NMFS and the initial QS pool is set on October 17, 1994.
Although the eventual calculation may employ different numbers, the
methodology of the calculation is accurately demonstrated.)
The CDQ compensation formula would be included in the regulations
for the IFQ program at Sec. 676.24(i)(3). The formula would replace the
current language contained in this paragraph that established January
31 of the first year of fishing under the IFQ program as the date for
determining the QS pool for purposes of establishing compensation for
CDQ allocations. Eliminating January 31 from this paragraph would
permit the issuance of compensation QS at an earlier date. Furthermore,
under proposed regulations implementing Amendment 31 to the Fishery
Management Plan (FMP) for the Groundfish Fisheries of the Bering Sea
and Aleutian Islands Area and Amendment 35 to the FMP for Groundfish of
the Gulf of Alaska, October 17, 1994, is being established as the
specific date to determine the quota share pools. Proposed regulations
to implement Amendments 31 and 35 were published in the Federal
Register June 28, 1994 (59 FR 33272). Using October 17, 1994, rather
than January 31, as the date to establish the QS pools would relieve a
restriction by allowing persons who are initially issued QS more time
to transfer QS prior to the first IFQ season. Also, using a specific
date ensures that all persons are treated in a similar manner. NMFS
would be particularly interested in receiving public comment on
relieving this restriction.
Classification
The RIR prepared for this rule incorporates by reference the final
regulatory flexibility analysis (FRFA) prepared for the IFQ program,
the program for which the CDQ compensation formula was designed. The
FRFA supports the determination that the IFQ program may have a
significant impact on a substantial number of small entities. Further
information on the FRFA can be obtained by referring to the final rule
for the IFQ program, published in the Federal Register November 9, 1993
(58 FR 59375). The RIR and the FRFA are available for review (see
ADDRESSES).
A collection of information for the IFQ program was approved by the
Office of Management and Budget, OMB control number 0648-0272. This
action will not affect the collection-of-information requirements
already approved for the IFQ program.
This proposed rule has been determined to be not significant for
purposes of E.O. 12866.
List of Subjects in 50 CFR Part 676
Fisheries, Reporting and recordkeeping requirements.
Dated: September 23, 1994.
Samuel W. McKeen,
Acting Program Management Officer, National Marine Fisheries Service.
For the reasons set out in the preamble, 50 CFR part 676 is
proposed to be amended as follows:
PART 676--LIMITED ACCESS MANAGEMENT OF FEDERAL FISHERIES IN AND OFF
OF ALASKA
1. The authority citation for 50 CFR part 676 continues to read as
follows:
Authority: 16 U.S.C. 773 et seq. and 1801 et seq.
2. Section 676.24 is amended by revising paragraph (i)(3) to
read as follows:
Sec. 676.24 Western Alaska Community Development Quota Program.
* * * * *
(i) * * *
(3) Compensation of halibut and sablefish QS foregone due to the
CDQ program will occur only in the first year of fishing under the IFQ
program and will be calculated for each CDQ area using the following
formula:
QN = (QC x QSPN x RATE) / (SUMCDQ-
[RATE x SUMTAC])([1-RATE] -TAC)(QSPC x [CDQPCT-RATE])
where:
QN=quota share in non-CDQ area
QC=quota share in CDQ area
QSPN=quota share pool in non-CDQ area
RATE=SUMCDQ/total allowable catch for all CDQ and non-CDQ
areas
TAC=total allowable catch (average of the TAC for 1988-1994) for
CDQ area
QSPC=quota share pool in CDQ area
CDQPCT=CDQ percentage for CDQ area
SUMCDQ=sum [total allowable catch for CDQ
area x CDQPCT] (based on average TAC)
SUMTAC=sum [total allowable catch for CDQ area] (based on
average TAC)
* * * * *
[FR Doc. 94-24136 Filed 9-28-94; 8:45 am]
BILLING CODE 3510-22-W
