[Federal Register Volume 76, Number 77 (Thursday, April 21, 2011)]
[Proposed Rules]
[Pages 22345-22350]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-9724]



[[Page 22345]]

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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 110321211-1234-01]
RIN 0648-BA94


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Reef Fish Fishery of the Gulf of Mexico; Gag Grouper Management 
Measures

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

ACTION: Proposed temporary rule; request for comments.

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SUMMARY: This proposed temporary rule would replace a temporary rule 
made effective January 1, 2011, and implement interim measures to 
reduce overfishing of gag in the Gulf of Mexico (Gulf). This rule would 
reduce the commercial quota for gag and, thus, the combined commercial 
quota for shallow-water grouper species (SWG), and establish a 2-month 
recreational season for gag. This rule would also suspend red grouper 
multi-use allocation in the Gulf grouper and tilefish individual 
fishing quota (IFQ) program, as recommended by the Gulf of Mexico 
Fishery Management Council (Council). The intended effect of this 
proposed rule is to reduce overfishing of the gag resource in the Gulf.

DATES: Written comments must be received on or before May 6, 2011.

ADDRESSES: You may submit comments on the proposed rule identified by 
NOAA-NMFS-2011-0072 by any of the following methods:
    <bullet> Electronic submissions: Submit electronic comments via the 
Federal e-Rulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    <bullet> Mail: Peter Hood, Southeast Regional Office, NMFS, 263 
13th Avenue South, St. Petersburg, FL 33701.
    Instructions: All comments received are a part of the public record 
and will generally be posted to http://www.regulations.gov without 
change. All Personal Identifying Information (for example, name, 
address, etc.) voluntarily submitted by the commenter may be publicly 
accessible. Do not submit Confidential Business Information or 
otherwise sensitive or protected information.
    NMFS will accept anonymous comments (enter N/A in the required 
field if you wish to remain anonymous). You may submit attachments to 
electronic comments in Microsoft Word, Excel, WordPerfect, or Adobe PDF 
file formats only.
    Comments received through means not specified in this rule will not 
be considered.
    Copies of documents supporting this proposed rule, which include a 
draft environmental assessment and an initial regulatory flexibility 
analysis (IRFA), may be obtained from Peter Hood, Southeast Regional 
Office, NMFS, 263 13th Avenue South, St. Petersburg, FL 33701 or on the 
Southeast Regional Office Web site at http://sero.nmfs.noaa.gove/sf/pdfs/draft_EA_2011_gag_interim_rule.pdf.

FOR FURTHER INFORMATION CONTACT: Peter Hood, telephone: 727-824-5305 or 
e-mail: <a href="/cdn-cgi/l/email-protection#b9e9dccddccb97f1d6d6ddf9d7d6d8d897ded6cf"><span class="__cf_email__" data-cfemail="a4f4c1d0c1d68aeccbcbc0e4cacbc5c58ac3cbd2">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: The reef fish fishery of the Gulf of Mexico 
is managed under the Fishery Management Plan for the Reef Fish 
Resources of the Gulf of Mexico (FMP). The FMP was prepared by the 
Council and is implemented through regulations at 50 CFR part 622 under 
the authority of the Magnuson-Stevens Fishery Conservation and 
Management Act (Magnuson-Stevens Act).

Background

    The Magnuson-Stevens Act requires NMFS and regional fishery 
management councils to prevent overfishing and achieve, on a continuing 
basis, the optimum yield (OY) from federally managed fish stocks. These 
mandates are intended to ensure fishery resources are managed for the 
greatest overall benefit to the nation, particularly with respect to 
providing food production and recreational opportunities, and 
protecting marine ecosystems.
    Through Amendment 30B to the FMP and its implementing regulations, 
which became effective on May 18, 2009 (74 FR 17603, April 16, 2009), 
the Council and NMFS set the commercial quota for gag at 1.49 million 
lb (0.68 million kg), and the SWG quota at 7.65 million lb (4.47 
million kg). That rule also established annual catch limits and 
accountability measures for commercial and recreational gag, red 
grouper and SWG; increased the commercial quota for red grouper; 
removed the commercial closed season for SWG; established an incidental 
bycatch allowance trip limit for gag and red grouper; reduced the 
commercial minimum size limit for red grouper; reduced the gag bag 
limit and aggregate grouper bag limit; increased the red grouper bag 
limit; extended the closed season for recreational SWG; eliminated the 
end date for the Madison-Swanson and Steamboat Lumps marine reserves; 
and required that federally permitted reef fish vessels comply with the 
more restrictive of Federal or state reef fish regulations when fishing 
in state waters.
    In 2009, the Southeast Data, Assessment, and Review (SEDAR) process 
updated the stock assessment for gag. Based on that update assessment, 
NMFS informed the Council, in a letter dated August 11, 2009, that gag 
are overfished and undergoing overfishing. In response to the update 
assessment, the Council began developing Amendment 32 to the FMP, which 
includes measures to end overfishing of gag and establish a rebuilding 
plan for the gag stock.
    In the course of developing management measures for Amendment 32, 
the Council and NMFS discovered potential inconsistencies in the 
commercial and recreational estimates of gag discards, and how these 
data were used in the update assessment. Therefore, the Council 
requested NMFS implement interim measures for gag while it reassessed 
the gag update. Accordingly, NMFS published a temporary rule on 
December 1, 2010 (75 FR 74650), which became effective January 1, 2011. 
That temporary rule, effective through May 31, 2011, reduced the 
commercial quota for gag to 100,000 lb (45,359 kg), reduced the 
commercial SWG quota to 4.83 million lb (2.19 million kg), suspended 
red grouper multi-use allocation in the Gulf grouper and tilefish 
individual fishing quota (IFQ) program, and prohibited the recreational 
harvest of gag.
    This proposed temporary rule would replace the existing temporary 
rule, and is based on the results of the rerun of the update 
assessment. This rule would (based on the original quotas implemented 
through Amendment 30B to the FMP) reduce the commercial quota for gag 
from 1.49 million lb (0.68 million kg) to 430,000 lb (195,045 kg), 
reduce the commercial SWG quota from 7.65 million lb (3.47 million kg) 
to 5.16 million lb (2.34 million kg), suspend red grouper multi-use 
allocation in the Gulf grouper and tilefish IFQ program, and implement 
a recreational fishing season for gag from September 16 through 
November 15, with a 2-fish daily bag limit. If implemented, these 
measures would remain in effect for 180 days, with the possibility of 
extending them for another 186 days, unless amended by subsequent 
rulemaking.
    In relation to the temporary rule currently in effect, this 
proposed temporary rule would increase the commercial quota for gag by 
330,000 lb (149,685 kg), increase the commercial

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SWG quota by 330,000 lb (149,685 kg), continue the suspension of red 
grouper multi-use shares in the Gulf grouper and tilefish IFQ program, 
and implement a 2-month recreational fishing season for gag.

Status of Stock

    The rerun of the update assessment for gag was completed by the 
SEDAR update assessment review panel in December 2010. This rerun 
assessment addressed the problems the previous assessment had with gag 
discards, and was reviewed by the Council's Scientific and Statistical 
Committee (SSC) in January 2011. The rerun of the update assessment 
indicated the gag stock is still undergoing overfishing.
    Based on the results of the rerun assessment, the SSC recommended 
an acceptable biological catch (ABC) for 2011 of 1.58 million lb (0.72 
million kg), which is greater than the ABC recommended by the SSC after 
the 2009 update assessment. OY for 2011 would be the yield associated 
with F<INF>OY</INF> (the fishing mortality at OY), or 1.28 million lb 
(0.58 million kg). Given the allocation for gag is 39 percent for the 
commercial sector and 61 percent for the recreational sector, the 
commercial and recreational annual catch targets (ACTs) would be 
reduced to 500,000 lb (226,796 kg) and 780,000 lb (353,802 kg), 
respectively, from their values implemented through the last Amendment, 
Amendment 30B to the FMP (74 FR 17603, April 16, 2009).

Grouper and Tilefish IFQ Program

    The commercial sector is currently managed under an IFQ program 
implemented in January 2010. Under this program, each qualifying 
fisherman is allocated IFQ shares based on historical participation in 
the grouper and tilefish component of the Gulf reef fish fishery. To 
allow for flexibility and to reduce bycatch, at the beginning of each 
fishing year, a percentage of each fisherman's gag and red grouper 
allocations are designated as multi-use allocations. The IFQ program 
designates 4 percent of red grouper allocation and 8 percent of gag 
allocation to multi-use allocation. Red grouper multi-use allocation 
may be used to harvest red grouper after all of an IFQ account holder's 
(shareholder or allocation holder's) red grouper allocation has been 
used or transferred, and to harvest gag after both gag and gag multi-
use allocation has been used or transferred. However, the use of all 
the current red grouper multi-use allocations to harvest gag would 
account for approximately 40 percent of the proposed gag quota and 
would likely lead to overfishing of gag. Accordingly, NMFS proposes to 
suspend red grouper multi-use allocation in the IFQ program.

Management Measures Contained in This Proposed Rule

    At its April 2011 meeting, the Council requested that NMFS propose 
a new temporary rule to replace the existing temporary rule. This 
request was made after the State of Florida's Fish and Wildlife 
Conservation Commission (FWC) voted at its April 2011 meeting to adopt 
compatible regulations with NMFS. This is because the management 
measures contained in this proposed temporary rule would only meet the 
reductions needed to reduce overfishing of gag if the State of 
Florida's FWC adopts compatible regulations in state waters on June 1, 
2011.
    To account for discard mortality, this temporary rule would reduce 
the commercial quota for gag to 430,000 lb (195,045 kg), which provides 
a 14-percent buffer from the 500,000-lb (226,796-kg) ACT. The 
additional quota of 330,000 lb (149,685 kg) from what fishermen were 
allocated at the beginning of the fishing year through the temporary 
rule currently in effect 100,000 lb (45,359 kg), would be released to 
IFQ participants on the effective date of the temporary rule. IFQ 
participants would have the opportunity to fish their additional 
allocation through the rest of the fishing year.
    In order to harmonize the commercial quota for SWG with the 
commercial quota for gag, this proposed rule would set the commercial 
SWG quota at 5.16 million lb (2.34 million kg).
    This temporary rule would also suspend red grouper multi-use 
allocations to ensure the gag commercial quota is not exceeded. This 
action does not reduce the overall red grouper allocation, but will 
prohibit the conversion of red grouper multi-use allocation that could 
lead to additional gag landings. Red grouper multi-use allocation will 
be addressed further in Amendment 32 to the FMP.
    This temporary rule would establish a recreational gag fishing 
season from September 16 through November 15, 2011. The needed 
reductions in gag are between 48 and 62 percent to end overfishing, and 
between 58 to 69 percent to reduce the harvest consistent with 
F<INF>OY</INF>. The Southeast Regional Office developed a decision 
model to evaluate different management scenarios. This model allowed 
the Council to vary season length and evaluate the effects of trip 
type, effort shifting, size limits, bag limits, release mortality 
rates, and Florida state regulation compatibility. To end overfishing 
of gag, the Council recommended a 2-month fall recreational fishing 
season, with no change to the bag limit (2 fish daily) or size limit 
(22 inches (56 cm)). The Council considered other seasons; however, 
these seasons were either shorter in length, would result in additional 
dead discards, or did not meet the needed reductions in gag mortality.

Future Action

    NMFS has determined that this proposed temporary rule is necessary 
to reduce overfishing of gag in the Gulf of Mexico. NMFS will consider 
all public comments received on this proposed rule in determining 
whether to proceed with a final rule and, if so, whether any revisions 
would be appropriate in the final rule. If NMFS issues a final rule, it 
would be effective for not more than 180 days after publication, as 
authorized by section 305(c) of the Magnuson-Stevens Act. The final 
rule could be extended for an additional 186 days, provided that the 
public has had an opportunity to comment on the rule.
    NMFS acknowledges the need to continue monitoring all sources of 
gag mortality to determine the appropriate level of future actions 
necessary to ensure progress consistent with the stock rebuilding plan 
over the long term.

Classification

    Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the 
NMFS Assistant Administrator has determined that this proposed 
temporary rule is consistent with the Magnuson-Stevens Act and other 
applicable law, subject to further consideration after public comment.
    This proposed temporary rule has been determined to be not 
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 that this proposed rule, if adopted, would have on 
small entities. A description of the action, why it is being 
considered, and the objectives of, and 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 copy of the full analysis is 
available from NMFS (see ADDRESSES). A summary of the IRFA follows.
    The Magnuson-Stevens Act provides the statutory basis for this 
proposed temporary rule. No duplicative, overlapping, or conflicting 
Federal rules have been identified. The preamble of this proposed rule 
provides a statement

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of the need for and objectives of this rule, and it is not repeated 
here.
    This proposed temporary rule is expected to directly affect 
commercial harvesting and for-hire operations. The Small Business 
Administration (SBA) has established size criteria for all major 
industry sectors in the U.S., including fish harvesters. A business 
involved in fish harvesting is classified as a small business if it is 
independently owned and operated, is not dominant in its field of 
operation (including its affiliates), and has combined annual receipts 
not in excess of $4.0 million (NAICS code 114111, finfish fishing) for 
all its affiliated operations worldwide. For for-hire vessels, the 
other qualifiers apply and the receipts threshold is $7.0 million 
(NAICS code 713990, recreational industries).
    This proposed temporary rule is expected to directly affect 
commercial fishing vessels whose owners possess gag fishing quota 
shares and for-hire fishing vessels that harvest gag. As of October 1, 
2009, 970 entities owned a valid commercial Gulf reef fish permit and 
thus were eligible for initial shares and allocation in the grouper and 
tilefish IFQ program. Of these 970 entities, 908 entities initially 
received shares and allocation of grouper or tilefish, and 875 entities 
specifically received gag shares and an initial allocation of the 
commercial sector's gag quota in 2010. These 875 entities are expected 
to be directly affected by the actions to reduce the commercial quota 
for gag and prohibit the conversion of red grouper allocation to multi-
use allocation.
    Of the 875 entities that initially received gag shares, 215 were 
not commercially fishing in 2008 or 2009, and thus had no commercial 
fishing revenue during these years. On average, these 215 entities 
received an initial allocation of 874 lb (397 kg) of gag in 2010. Eight 
of these 215 entities also received a bottom longline endorsement in 
2010. These 8 entities received a much higher initial allocation of gag 
in 2010, with an average of 3,139 lb (1,427 kg).
    The other 660 entities that initially received gag shares and 
allocations in 2010 were active in commercial fisheries in 2008 or 
2009. The maximum annual commercial fishing revenue in 2008 or 2009 by 
an individual vessel with commercial gag fishing quota shares was 
approximately $606,000 (2008 dollars).
    The average charterboat is estimated to earn approximately $88,000 
(2008 dollars) in annual revenue, while the average headboat is 
estimated to earn approximately $461,000 (2008 dollars). Based on these 
values, all commercial and for-hire fishing vessels expected to be 
directly affected by this proposed temporary rule are determined for 
the purpose of this analysis to be small business entities.
    Of the 660 commercial fishing vessels with commercial landings in 
2008 or 2009, 139 vessels did not have any gag landings in 2008 or 
2009. Their average annual gross revenue in these 2 years was 
approximately $50,800 (2008 dollars). The vast majority of these 
vessels' commercial fishing revenue is from a combination of snapper, 
mackerel, dolphin, and wahoo landings. On average, in 2010, these 
vessels received an initial allocation of 540 lb (245 kg) of gag quota.
    The remaining 521 commercially active fishing vessels did have 
landings of gag in 2008 or 2009. Over that 2-year period, these vessels 
averaged approximately $71,000 (2008 dollars) in annual gross revenue 
from commercial fishing. On average, these vessels had 2,375 lb (1,080 
kg) and 1,300 lb (591 kg) of gag landings in 2008 and 2009, 
respectively, or 1,835 lb (834 kg) between the 2 years. Gag landings 
accounted for approximately 8 percent of these vessels' annual average 
gross revenue, and thus they are somewhat, though not significantly, 
dependent on revenue from gag landings. These vessels' average initial 
gag allocation in 2010 was 2,121 lb (964 kg). Therefore, on average, 
their 2008 gag landings were very near their 2010 gag allocation, but 
their 2009 gag landings were considerably less than their 2010 
allocation.
    Of these 521 vessels, 52 vessels also received a bottom longline 
endorsement in 2010. These particular vessels' average annual revenue 
was approximately $156,000 (2008 dollars) in 2008 and 2009. Revenue 
from gag landings decreased from approximately $15,900 to $8,400 in 
2009, and thus they became relatively less dependent on gag landings. 
These vessels, however, are highly dependent on revenue from red 
grouper landings, which accounted for 54 percent and 47 percent of 
their gross revenue in 2008 and 2009, respectively. Revenue from deep-
water grouper (DWG) landings decreased only slightly, from 
approximately $36,000 in 2008 to $31,000 in 2009, and thus these 
vessels became relatively more dependent on revenue from DWG landings. 
Their average initial 2010 allocation of gag was approximately 5,507 lb 
(2,503 kg), while their average gag landings were 3,933 lb (1,788 kg) 
and 2,204 lb (1,002 kg) in 2008 and 2009, respectively. Thus, vessels 
that now have a bottom longline endorsement have been harvesting well 
below that allocation in recent years, particularly in 2009.
    The for-hire fleet is comprised of charter vessels, which charge a 
fee on a vessel basis, and headboats, which charge a fee on an 
individual angler (head) basis. The harvest of gag in the exclusive 
economic zone (EEZ) by for-hire vessels requires a charter vessel/
headboat permit for Gulf reef fish. On March 23, 2010, there were 1,376 
valid or renewable for-hire Gulf reef fish permits. A valid permit is a 
non-expired permit. Expired reef fish for-hire permits may not be 
actively fished, but are renewable for up to 1 year after expiration. 
Because of the extended permit renewal period, numerous permits may be 
expired but still renewable at any given time of the year during the 
renewal period after the permit's expiration. The majority (823, or 
approximately 60 percent) of the 1,376 valid or renewable permits were 
registered with Florida addresses. The registration address for the 
Federal permit does not restrict operation to Federal waters off that 
state; however, vessels would be subject to any applicable state 
permitting requirements. Although the permit does not distinguish 
between headboats and charter vessels, it is estimated that 79 
headboats operate in the Gulf. The majority of these vessels (43, or 
approximately 54 percent) operate from Florida ports. Given that nearly 
99 percent of target effort for gag and 97 percent of the economic 
impacts from the recreational sector for gag in the Gulf reef fish 
fishery are in west Florida, it is assumed that the 823 for-hire 
vessels (780 charter vessels and 43 headboats) in Florida are expected 
to be directly affected by the proposed action to establish a 
recreational gag fishing season of September 16, 2011 through November 
15, 2011.
    The 215 entities with gag shares that did not participate in 
commercial fishing in 2008 or 2009 have no commercial fishing revenue 
and did not earn profit from commercial fishing in those 2 years. The 
action to decrease the commercial quota for gag from 1.49 million lb 
(0.68 million kg) to 0.43 million lb (0.20 million kg) would reduce 
these vessels' average allocation of gag in 2011 from 952 lb (433 kg) 
to 275 lb (125 kg), or by approximately 677 lb (308 kg). Using the 
average 2008 price of $3.52 per pound, this loss in allocation could 
potentially represent a loss of nearly $2,400 (2008 dollars) in gross 
revenue per entity. Using the 2010 average price of $1.00 per pound of 
gag allocation, this loss in allocation could potentially represent a 
loss of $670 (2008 dollars) in net revenue per entity.

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For eight of these 215 entities that also possess longline 
endorsements, their average allocation of gag in 2011 would be reduced 
from 3,418 lb (1,554 kg) to 987 lb (449 kg), or by 2,431 lb (1,105 kg). 
Thus, their potential loss in gross revenue and net revenue, estimated 
to be nearly $8,600 and $2,500 (2008 dollars), respectively, are 
expected to be somewhat higher.
    However, in general, these potential losses in gross revenue and 
net revenue would only be realized if these 215 entities not only 
become active in commercial fishing, but also specifically intend to 
harvest gag in 2011 at a level above their reduced allocation. That is, 
a reduction in allocation can only lead to a reduction in landings, and 
thus gross revenue, if these entities intend to harvest at levels above 
their reduced allocation. Alternatively, these losses in gross and net 
revenue could be due to these entities' inability to sell the 
allocations they are losing under the proposed action, though this 
possibility presumes that a demand for these allocations exists. 
Regardless, the significance of these potential losses in gross and net 
revenue to these 215 entities cannot be evaluated given the lack of 
information on potential gross revenue, net revenue, and profits from 
commercial fishing in general and specifically for gag.
    Similarly, the 139 entities with gag shares that participated in 
commercial fisheries other than gag earned approximately $50,800 in 
annual gross revenue on average in 2008 and 2009. Profit estimates for 
these vessels are not currently available. However, because they did 
not have any gag landings, none of their gross revenue and thus none of 
their potential profits were the result of gag harvests. Under the 
proposed action, their average allocation of gag in 2011 would be 
reduced from 588 lb (267 kg) to 170 lb (77 kg), or by 418 lb (190 kg). 
Using the average 2008 price of $3.52 per pound, this loss in 
allocation could potentially represent a loss of nearly $1,500 (2008 
dollars) in gross revenue per entity. Using the 2010 average price of 
$1.00 per pound of gag allocation, this loss in allocation could 
potentially represent a loss of approximately $410 (2008 dollars) in 
net revenue per entity.
    However, these potential losses in gross and net revenue could only 
lead to a loss in profits if these 139 entities intend to commercially 
harvest gag in 2011 at a level above their reduced allocation. That is, 
a reduction in allocation can only lead to a reduction in landings if 
these entities intend to harvest at levels above their reduced 
allocation. Thus, for example, if these vessels intended to harvest gag 
in 2011 at a level equivalent to their 2011 allocation, and this 
harvest was in addition to, rather than in place of, their recent 
commercial fishing activities, the reduction in allocation could lead 
to a maximum loss of approximately 3 percent in gross revenue, which 
could in turn reduce net revenue and profits. Alternatively, losses in 
gross and net revenue could be due to these entities' inability to sell 
the allocations being lost under the proposed action, though this 
possibility presumes that a demand for these allocations exists.
    The 521 entities with gag shares that commercially harvested gag in 
2008 or 2009 earned approximately $71,000 (2008 dollars) in annual 
gross revenue on average in 2008 and 2009. Profit estimates for these 
vessels are not currently available. However, gag landings accounted 
for approximately 8 percent of these vessels' annual average gross 
revenue, and thus they are somewhat but not significantly dependent on 
revenue from gag landings. Under the proposed action, these vessels' 
gag allocations would be reduced from 2,310 lb (1,050 kg) to 667 lb 
(303 kg), or 1,643 lb (747 kg) on average. As these vessels have been 
harvesting at levels near their 2010 allocation in recent years on 
average, this reduction in gag allocation is likely to lead to an 
equivalent reduction in gag landings and therefore gross revenue. Using 
the average 2008 price of $3.52 per pound, it is estimated that these 
vessels could lose nearly $5,800 (2008 dollars), or approximately 8 
percent, in annual gross revenue on average. Using the 2010 average 
price of $1.00 per pound of gag allocation, under the proposed 
temporary rule these vessels would lose approximately $1,600 (2008 
dollars) in net revenue per entity. Since net revenue is assumed to be 
representative of profits for commercial vessels, these vessels are 
expected to experience a reduction in profits.
    However, 52 of these 521 vessels also received a bottom longline 
endorsement in 2010. These particular vessels' average annual gross 
revenue was approximately $156,000 (2008 dollars) in 2008 and 2009, 
with gag landings accounting for approximately 8 percent of that gross 
revenue. These vessels are highly dependent on revenue from red grouper 
rather than gag landings. Under the proposed action, their allocation 
of gag in 2011 would decrease from 6,215 lb (2,825 kg) to 1,953 lb (888 
kg), or by 4,262 lb (1,937 kg). As these vessels have been harvesting 
at levels near their 2010 allocation in recent years on average, this 
reduction in gag allocation is likely to lead to an equivalent 
reduction in gag landings and therefore gross revenue. Using the 
average 2008 price of $3.52 per pound, it is estimated that these 
vessels could lose $15,000 (2008 dollars), or nearly 10 percent, in 
annual gross revenue on average. Using the 2010 average price of $1.00 
per pound of gag allocation, these vessels would lose approximately 
$4,200 (2008 dollars) in net revenue per entity. Since net revenue is 
assumed to be representative of profits for commercial vessels, these 
vessels are expected to experience a reduction in profits.
    No additional economic effects would be expected to result from the 
revised SWG quota because the updated SWG quota simply reflects the 
reduction in the commercial gag quota, the effects of which have 
already been discussed.
    Under the action to suspend the conversion of red grouper 
allocation into multi-use allocation valid toward the harvest of red 
grouper or gag, minimal adverse economic effects are expected as a 
result of commercial fishing entities not being allowed to convert 4 
percent of their red grouper allocation into multi-use allocation. 
Multi-use allocation that has been converted from red grouper 
allocation can only be used to possess, land, or sell gag after an 
entity's gag and gag multi-use allocation has been landed, sold, or 
transferred. As a result of the proposed reduction in the commercial 
gag quota, it is likely these entities will exhaust their gag and gag 
multi-use allocations relatively quickly. Gross revenue from gag 
landings is greater than gross revenue from an equivalent amount of red 
grouper landings, since gag commands a relatively higher market price. 
Thus, gross revenue from commercial fishing revenue and, therefore, 
profit per vessel could be slightly less than if the multi-use 
conversion were allowed to continue.
    Net operating revenues (NOR) are assumed to be representative of 
profit for for-hire vessels. It is assumed that 823 for-hire vessels, 
780 charter vessels, and 43 headboats, participate in the recreational 
gag component of the Gulf reef fish fishery. Estimates of NOR from 
recreational fisheries other than gag, and thus across all fisheries in 
which these charter vessels and headboats participate, are not 
currently available. However, on average, NOR for charter vessels from 
trips targeting gag are estimated to be approximately $1.56 million per 
year, while NOR for headboats from trips targeting gag are estimated to 
be $91,300 per year. NOR for all trips targeting gag are estimated to 
be approximately $1.65 million per year. The average annual NOR from 
trips targeting gag are estimated to be

[[Page 22349]]

$2,000 per charter vessel and $2,124 per headboat.
    When the length of the recreational gag season is reduced and the 
daily bag limit for gag set at zero, some trips that formerly targeted 
gag will instead target other species, while other trips that formerly 
targeted gag will be cancelled. Assuming the NOR per trip is constant 
regardless of the species targeted, for-hire operators will only lose 
NOR from trips cancelled as a result of the shortened season length. 
Information regarding the number of trips cancelled as a result of the 
shortened season is not currently available. Thus, this analysis 
assumes all of the current for-hire trips targeting gag will be 
cancelled when the recreational sector is closed. Because some of these 
trips would probably not be cancelled, this assumption is expected to 
overestimate the actual reduction in NOR associated with a shorter 
season. Thus, the following estimates of losses in NOR and profit for 
charter vessels and headboats should be considered maximum values.
    Under the proposed action to establish a recreational gag fishing 
season of September 16, 2011-November 15, 2011, the losses in NOR from 
trips targeting gag for charter vessels and headboats are estimated to 
be approximately $435,000 and $28,000, respectively, and thus NOR for 
all trips targeting gag is estimated to be approximately $463,000 if 
this proposed temporary rule is not extended for up to 186 days as 
allowed under the Magnuson-Stevens Act for interim measures. The losses 
in NOR from trips targeting gag are estimated to be $560 and $660 per 
charter vessel and headboat, respectively. These NOR losses represent a 
loss in profit from trips targeting gag of approximately 28 percent and 
31 percent per charter vessel and headboat, respectively. However, if 
this proposed temporary rule is extended, the losses in NOR for charter 
vessels and headboats are estimated to be approximately $1.41 million 
and $81,800, respectively. Thus, the losses in NOR are estimated to be 
$1,808 and $1,902 per charter vessel and headboat, respectively. These 
losses in NOR represent a loss in profit from trips targeting gag of 
approximately 75 percent and 65 percent per charter vessel and 
headboat, respectively.
    This proposed action is not expected to affect profit from trips 
not targeting gag for charter vessels and headboats. For-hire vessel 
dependence on fishing for individual species cannot be determined with 
available data. Although some for-hire vessels are likely more 
dependent on trips that target gag than other for-hire vessels, 
overall, about three percent of for-hire anglers are estimated to 
target gag. As a result, while the action would be expected to 
substantially affect the NOR derived from gag trips, overall, gag trips 
do not comprise a substantial portion of total for-hire trips nor would 
they, by extension, be expected to account for a substantial portion of 
total for-hire NOR.
    Two alternatives, including the status quo, were considered for the 
action to set the gag commercial quota at 430,000 lb (0.20 million kg). 
The first alternative, the status quo, would have maintained the gag 
commercial quota at 1.49 million lb (0.68 million kg). This alternative 
is not consistent with the goals and objectives of the Council's plan 
to manage gag to achieve the mandates of the Magnuson-Stevens Act. 
Specifically, selection of this alternative would be inconsistent with 
current National Standard 1 guidance because the commercial quota would 
be above the commercial ACT of 500,000 lb (226,796 kg), which is based 
on the Council's defined F<INF>OY</INF> yield of 1.28 million lb (0.58 
million kg) for 2011. In addition, this alternative would promote 
overfishing and slow recovery of the stock.
    The second alternative would have set the gag commercial quota at 
100,000 lbs (45,539 kg). This alternative is based on the request made 
by the Council in August 2010 for the interim rule that published 
December 1, 2010, and reflects the uncertainty in the stock status at 
that time due to questions regarding how commercial and recreational 
discards were treated in the assessment update. When this commercial 
quota was recommended, it was unknown how revisions to the treatment of 
discards might influence the rerun of the updated stock assessment. If 
the rerun of the updated assessment yielded a more pessimistic 
condition of the stock, then setting the harvest based on the 
F<INF>OY</INF> yield, estimated then at 390,000 lb (177,273 kg), would 
not reduce overfishing sufficiently to allow the stock to begin to 
recover within the maximum time frame allowed under the Magnuson-
Stevens Act. The 100,000 lb (45.539 kg) commercial quota was 
recommended because some gag are expected be incidentally caught by the 
commercial sector while fishing for other species. Further, most 
discarded gag die after being released due to the high discard 
mortality rate associated with fishing at deeper depths. Rather than 
waste all of these fish, the Council set the quota at a level that 
would allow some fish to be retained and thus would also be counted 
towards the commercial quota.
    As of March 2, 2011, over 65 percent of the gag IFQ shareholders 
have less than 50 lb (23 kg) in allocation still available to them. 
Thus, if the commercial quota is not set at a level above 100,000 lb 
(45,539 kg), commercially caught gag would likely be lost through dead 
discards rather than kept and counted towards the commercial quota as 
fishermen run out of allocation. However, the rerun of the updated 
assessment showed a slight increase in the projected yields under the 
F<INF>OY</INF> if the State of Florida adopted compatible regulations 
for the recreational sector. Because the State of Florida has adopted 
compatible regulations for the recreational sector, a higher commercial 
quota is allowable.
    One alternative was considered for the action to suspend the 
ability of allocation holders to convert red grouper allocation into 
multi-use allocation valid toward the harvest of red grouper or gag. 
This alternative would continue to allow 4 percent of the red grouper 
allocation to be converted into multi-use allocation. This alternative 
is expected to result in gag harvests that would exceed specified 
annual catch limits, promote overfishing, and therefore, slow recovery 
of the stock, contrary to the Council's objectives. Further, this 
alternative is also expected to result in greater adverse economic 
effects stemming from the corrective measures that would be implemented 
to address the over-harvesting of gag.
    Three alternatives, including the status quo, were considered for 
the action to establish a recreational fishing season for gag of 
September 16, 2011, through November 15, 2011. The first alternative, 
the status quo, would maintain the recreational ACT at 2.20 million lb 
(1 million kg) and anglers would be able to harvest the 2-fish daily 
bag limit for gag starting June 1, 2011. Depending on whether 2006-08 
or 2009 is used as the baseline, the estimated reduction in removals 
under this alternative would be between 15 percent and 20 percent, 
which is insufficient to allow the stock to rebuild, and would be 
inconsistent with the stock rebuilding plan being developed by the 
Council. In addition, this alternative is inconsistent with the 
Magnuson-Stevens Act and current National Standard 1 guidance because 
the expected level of harvest would be above the recreational annual 
catch target of 780,000 lb (353,802 kg), which is based on the 
Council's defined F<INF>OY</INF> yield of 1.28 million lb (0.58 million 
kg) for 2011. Further, this alternative would promote overfishing and 
slow recovery of the stock.

[[Page 22350]]

    The second alternative would set the gag bag limit to zero and 
thereby prohibit the recreational harvest of gag. When the Council 
requested the current temporary rule, it intended to allow some 
recreational harvest of gag in 2011 and establish that level of harvest 
under the long-term management measures being developed in Amendment 
32. However, because the rerun of the updated assessment was not 
completed and reviewed until January 2011, there is insufficient time 
to implement measures from Amendment 32 early enough in 2011 to meet 
the Council's intent.
    The second alternative is the most conservative alternative. This 
alternative would reduce fishing mortality the most out of all the 
considered alternatives and therefore generate the greatest biological 
benefits to the gag stock. Although this alternative would not allow 
the recreational harvest of gag while the proposed interim rule is in 
effect, the number of dead discards would be reduced because no 
recreational fishing trips would be expected to target or be directed 
at gag. Because Florida adopted compatible regulations, this 
alternative would reduce the harvest sufficiently in 2011 to be 
consistent with the Council's rebuilding plan in Amendment 30B, as it 
would reduce removals between 58 percent and 67 percent and, as such, 
end overfishing. If Florida had not adopted compatible regulations, the 
estimated reduction in removals would be between 43 percent and 61 
percent, which would reduce but might not be sufficient to end 
overfishing.
    The third alternative would establish a recreational fishing season 
for gag of July 1, 2011, through August 15, 2011, and thus would allow 
for some recreational harvest of gag in 2011 as the Council intended 
when it requested the current interim rule. This alternative would 
establish a 46-day recreational fishing season, which is less than the 
61-day season under the proposed action. This alternative also 
minimally overlaps with the red snapper season, which begins on June 1. 
This alternative would provide for-hire vessels with a greater number 
of options when marketing summer trips. The expected reduction in 
removals under this alternative is between 49 percent and 60 percent, 
and therefore might be sufficient to end overfishing.
    The Council heard public testimony regarding potential recreational 
seasons for gag at its February 2011 meeting. Participants in the 
recreational sector asked for either a summer or winter season 
depending on their geographic location. In general, recreational 
participants from Texas, southwest Florida, and central Florida favored 
a winter season, while recreational participants from other areas of 
the Gulf favored a summer season. In looking for a compromise, the 
Council recommended the proposed recreational season with no changes to 
the bag limit or size limit. The proposed recreational season would 
cover the end of the summer recreational fishing season and run through 
the beginning of the winter recreational fishing season. In addition, 
the estimated reductions in removals under the proposed recreational 
season are between 50 percent and 54 percent, which might be sufficient 
to end overfishing.
    This proposed temporary rule does not establish any new reporting, 
record-keeping, or other compliance requirements.

List of Subjects in 50 CFR Part 622

    Fisheries, Fishing, Puerto Rico, Reporting and recordkeeping 
requirements, Virgin Islands.

    Dated: April 18, 2011.
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 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.


Sec.  622.20  [Amended]

    2. In Sec.  622.20, paragraph (b)(2)(iv)(A) is suspended.
    3. In Sec.  622.34, paragraph (v) is removed and reserved and 
paragraph (w) is added to read as follows:


Sec.  622.34  Gulf EEZ seasonal and/or area closures.

* * * * *
    (w) Seasonal closure of the recreational sector for gag. The 
recreational sector for gag, in or from the Gulf EEZ, is closed from 
January 1 through September 15 and November 16 through December 31 each 
year. During the closure, the bag and possession limit for gag in or 
from the Gulf EEZ is zero.
    4. In Sec.  622.42, paragraphs (a)(1)(iii)(A)(3) and 
(a)(1)(iii)(B)(3) are suspended and paragraphs (a)(1)(iii)(A)(4) and 
(a)(1)(iii)(B)(4) are added to read as follows:


Sec.  622.42  Quotas.

    (a) * * *
    (1) * * *
    (iii) * * *
    (A) * * *
    (4) For fishing year 2011 and subsequent fishing years--5.16 
million lb (2.34 million kg).
    (B) * * *
    (4) For fishing year 2011 and subsequent fishing years--430,000 lb 
(195,045 kg).
* * * * *
[FR Doc. 2011-9724 Filed 4-20-11; 8:45 am]
BILLING CODE 3510-22-P


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