[Federal Register Volume 76, Number 161 (Friday, August 19, 2011)]
[Proposed Rules]
[Pages 52148-52207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-20454]



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Vol. 76

Friday,

No. 161

August 19, 2011

Part IV





Department of Commerce





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National Oceanic and Atmospheric Administration





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50 CFR Part 679





Fisheries of the Exclusive Economic Zone Off Alaska; Groundfish of the 
Gulf of Alaska; Amendment 88; Proposed Rule

Federal Register / Vol. 76 , No. 161 / Friday, August 19, 2011 / 
Proposed Rules

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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 110314196-1432-01]
RIN 0648-BA97


Fisheries of the Exclusive Economic Zone Off Alaska; Groundfish 
of the Gulf of Alaska; Amendment 88

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 proposes regulations to implement Amendment 88 to the 
Fishery Management Plan for Groundfish of the Gulf of Alaska (FMP), 
which regulates the Central Gulf of Alaska Rockfish Program. This 
proposed Rockfish Program would allocate exclusive harvest privileges 
to a specific group of license limitation program license holders who 
used trawl gear to target Pacific ocean perch, pelagic shelf rockfish, 
and northern rockfish during particular qualifying years. It would 
retain the conservation, management, safety, and economic gains 
realized under the Rockfish Pilot Program and resolve identified issues 
in the management and viability of the rockfish fisheries. This action 
is necessary to replace particular Rockfish Pilot Program regulations 
that are scheduled to expire at the end of 2011. This action is 
intended to promote the goals and objectives of the Magnuson-Stevens 
Fishery Conservation and Management Act, the FMP, and other applicable 
law.

DATES: Comments must be received no later than September 19, 2011.

ADDRESSES: Send comments to Glenn Merrill, Assistant Regional 
Administrator, Sustainable Fisheries Division, Alaska Region, NMFS, 
Attn: Ellen Sebastian. You may submit comments, identified by RIN 0648-
BA97, by any one of the following methods:
    <bullet> Electronic Submissions: Submit all electronic public 
comments via the Federal eRulemaking Portal Web site at http://www.regulations.gov.
    <bullet> Mail: P.O. Box 21668, Juneau, AK 99802.
    <bullet> Fax: 907-586-7557.
    <bullet> Hand delivery to the Federal Building: 709 West 9th 
Street, Room 420A, Juneau, AK.
    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 (e.g., name, address) 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 
fields if you wish to remain anonymous). Attachments to electronic 
comments will be accepted in Microsoft Word, Excel, WordPerfect, or 
Adobe portable document file (pdf) formats only.
    Electronic copies of Amendment 88 to the FMP, and the Environmental 
Assessment (EA), the Regulatory Impact Review (RIR), and the Initial 
Regulatory Flexibility Analysis (IRFA) (collectively, Analysis) 
prepared for this action are available from http://www.regulations.gov 
or from the NMFS Alaska Region Web site at http://alaskafisheries.noaa.gov.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to NMFS at the above address, e-mailed 
to <a href="/cdn-cgi/l/email-protection#bbf4f2e9fae4e8ced9d6d2c8c8d2d4d5fbd4d6d995ded4cb95dcd4cd"><span class="__cf_email__" data-cfemail="622d2b30233d3117000f0b11110b0d0c220d0f004c070d124c050d14">[email protected]</span></a>, or faxed to 202-395-7285.

FOR FURTHER INFORMATION CONTACT: Gwen Herrewig, 907-586-7091.

SUPPLEMENTARY INFORMATION: NMFS manages the groundfish fisheries in the 
exclusive economic zone of the Gulf of Alaska (GOA) under the FMP. The 
North Pacific Fishery Management Council (Council) prepared this FMP 
under the authority of the Magnuson-Stevens Fishery Conservation and 
Management Act (MSA), 16 U.S.C. 1801 et seq. Regulations implementing 
the FMP appear at 50 CFR part 679. General regulations governing U.S. 
fisheries also appear at 50 CFR part 600.
    This proposed rule would implement Amendment 88, the Central GOA 
Rockfish Program (Rockfish Program), to manage the rockfish fisheries 
in the Central GOA, which covers an area from 147[deg] W. long. to 
159[deg] W. long. Rockfish in Federal waters of the Central GOA are 
harvested primarily by trawl vessels, and to a lesser extent by 
longline vessels.
    The Council has submitted Amendment 88 for review by the Secretary 
of Commerce, and a Notice of Availability of this amendment was 
published in the Federal Register on July 28, 2011 (76 FR 45217) with 
comments invited through September 26, 2011. All relevant written 
comments received by the end of the applicable comment period, whether 
specifically directed to the FMP amendment, this proposed rule, or 
both, will be considered in the approval/disapproval decision for 
Amendment 88 and addressed in the response to comments in the final 
decision.
    The Council recommended the Rockfish Program to replace the 
existing Rockfish Pilot Program (Pilot Program) that is scheduled to 
expire December 31, 2011. The proposed Rockfish Program would retain 
the net national conservation, management, safety, and economic 
benefits realized under the Pilot Program as well as resolve identified 
issues in the management and viability of the rockfish fisheries under 
the Pilot Program.
    The Pilot Program and the proposed Rockfish Program are a type of a 
limited access privilege program (LAPP) developed to enhance resource 
conservation and improve economic efficiency in the Central GOA 
rockfish fisheries. LAPPs, also called catch share programs, are 
limited access systems in which Federal permits are issued to harvest a 
quantity of fish representing a portion of the total allowable catch 
(TAC). Under the Pilot Program, and as proposed under the Rockfish 
Program, participants exercise their exclusive harvest privileges when 
they join a rockfish cooperative. The Rockfish Program, like the Pilot 
Program, would benefit Central GOA fishermen, shoreside processors, 
catcher/processors, and communities by (1) providing greater security 
to harvesters in rockfish cooperatives, (2) allowing a slower-paced 
fishery to provide harvesters the ability to choose when to fish, (3) 
providing greater stability for processors by spreading production over 
a longer period of time, (4) allowing for a more stable workforce, (5) 
increasing product quality and diversity, and (6) allowing catcher/
processors greater spatial and temporal flexibility to reduce bycatch 
and develop more stable markets.

Rockfish Pilot Program Overview

    The following section provides a brief overview of the current 
Pilot Program. A detailed description of the Pilot Program is provided 
in the preamble to the Pilot Program's proposed rule (71 FR 33040; June 
7, 2006).
    The Pilot Program was enacted by Congress. Section 802 of the 
Consolidated Appropriations Act of 2004 (Section 802, Pub. L. 108-199) 
required that the Secretary of Commerce, in consultation with the 
Council, establish a program that recognized the historical 
participation of fishing vessels and fish processors in

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the Central GOA rockfish fishery. Section 802 states that the program 
shall (1) include the Central GOA rockfish species of Pacific ocean 
perch, northern rockfish, and pelagic shelf rockfish; (2) recognize 
historical participation of fishing vessels in the Central GOA rockfish 
fisheries from 1996 to 2002; (3) recognize historical participation of 
processors in the Central GOA rockfish fisheries from 1996 to 2000; (4) 
establish catch limits for non-rockfish species and non-target rockfish 
species harvested with the Central GOA rockfish species and base such 
allocations on historical harvesting of these incidentally caught 
species; (5) set aside up to 5 percent of the TAC of the Central GOA 
rockfish fisheries for catcher vessels that are not eligible to 
participate in the program; and (6) have a 2-year duration.
    The Council developed the Pilot Program to meet the requirements of 
Section 802. The Pilot Program was designed to enhance resource 
conservation and improve economic efficiency in the Central GOA 
rockfish fisheries by establishing cooperatives that receive exclusive 
harvest privileges. Following extensive public comment, the Council 
recommended the Pilot Program to the Secretary on June 6, 2005. NMFS 
published regulations implementing the Pilot Program on November 20, 
2006 (71 FR 67210). Fishing began under the Pilot Program on May 1, 
2007.
    Section 802 authorized the Pilot Program for 2 years, from January 
1, 2007, until December 31, 2008. The Magnuson-Stevens Fishery 
Conservation and Management Reauthorization Act of 2006, which became 
public law on January 12, 2007 (Pub. L. 109-479), extended the Pilot 
Program for an additional 3 years, until December 31, 2011. NMFS 
implemented that regulatory extension on November 17, 2008 (73 FR 
67809).
    Prior to 2007, the Central GOA rockfish fisheries were managed 
under the License Limitation Program (LLP). The LLP required harvesters 
to hold an LLP license to participate in GOA fisheries, but did not 
provide specific exclusive harvest privileges to LLP license holders. 
Harvesters with LLP licenses competed with each other to harvest the 
TAC assigned to the fishery. Processors also competed with each other. 
The competition created economic inefficiencies and incentives to 
increase harvesting and processing capacity. Harvesters increased the 
fishing capacity of their vessels and accelerated their rate of fishing 
to outcompete other vessels. Similarly, processors increased their 
processing capacity to outcompete other processors. The rapid pace of 
fishing reduced the ability of harvesters and processors to improve 
product quality and extract more value from the fishery by producing 
high-value products that require additional processing time.
    As anticipated, the Pilot Program provided greater security to 
harvesters through the formation of rockfish cooperatives. The program 
and cooperatives resulted in a slower-paced fishery that provided the 
ability for the harvester to choose when to fish. The Pilot Program 
also provided greater stability for processors by spreading out 
production over a broader period of time. Overall, the Pilot Program 
provided greater benefits to shoreside processors, catcher/processors, 
Central GOA fishermen, and communities than were realized under the LLP 
management scheme. For example, during the Pilot Program, fishermen 
made more rockfish and non-rockfish shoreside deliveries over a more 
extended period of time than under the LLP. This allowed for a more 
stable workforce and slower processing pace than the previous short 
periods of high volume rockfish processing. With a slower processing 
pace, product quality and diversity increased. Central GOA fishermen 
and processors noted fewer conflicts with other fisheries, especially 
the salmon fishery which traditionally overlapped with rockfish 
efforts. Catcher/processors noted greater flexibility in preparation 
and execution of the fishery which resulted in lower bycatch numbers, 
more stable markets, and a more efficient distribution of fishery 
effort.
    The Pilot Program created a structure for fishery participants to 
form cooperatives to efficiently manage harvesting activities. Under 
the Pilot Program, exclusive harvesting and processing privileges were 
allocated for a specific set of rockfish species and for associated 
species harvested incidentally to those rockfish in the Central GOA. 
The primary features of the Pilot Program are described below.
    Rockfish Quota Share. NMFS assigned Rockfish Quota Share (QS) for 
rockfish primary species to an LLP license with a trawl gear 
designation endorsed for the Central GOA. The rockfish primary species 
are northern rockfish, Pacific ocean perch, and pelagic shelf rockfish. 
A person holding an LLP license received rockfish QS if the LLP license 
had a history of rockfish primary species landings during a specific 
time period and the person holding the LLP license met other 
eligibility requirements. The amount of rockfish QS assigned to each 
license was based on the legal landings of these rockfish species 
associated with that LLP license. Rockfish QS assigned to a specific 
LLP license could not be divided or transferred separately from that 
LLP license.
    On an annual basis for the duration of the Pilot Program, the LLP 
license holder assigns the LLP license, and rockfish QS assigned to 
that LLP license, for use in a rockfish cooperative, limited access 
fishery, or opt-out fishery.
    Entry level fishery. Harvesters and processors not eligible to 
receive rockfish QS under the Pilot Program, but that hold an LLP 
license, may participate in a small entry level fishery for Central GOA 
rockfish. Section 802 specifically provided for ``a set-aside of up to 
5 percent for the total allowable catch of such fisheries for catcher 
vessels not eligible to participate in the pilot program'' during the 
1996 through 2002 eligibility time period. The Pilot Program 
implemented this provision by establishing an entry level fishery that 
was allocated 5 percent of the TAC for each of the three rockfish 
primary species. This 5 percent set-aside was further apportioned 
between trawl and longline vessels.
    Rockfish cooperatives. A person holding an LLP license with 
rockfish QS may form a rockfish cooperative with other persons (i.e., 
harvesters) on an annual basis. Each rockfish cooperative receives an 
annual cooperative quota (CQ), which is an amount of rockfish primary 
species and secondary species dedicated to that rockfish cooperative 
for harvest in a given year. Secondary species are those species 
incidentally caught during the harvest of rockfish primary species 
fisheries in the Central GOA. The secondary species for which annual CQ 
are allocated include Pacific cod, rougheye rockfish, shortraker 
rockfish, sablefish, and thornyhead rockfish. The amount of CQ assigned 
to a cooperative is a portion of the annual TAC based on the sum of the 
rockfish QS held by all the harvesters participating in the rockfish 
cooperative.
    Each rockfish cooperative also receives an annual CQ that limits 
the amount of halibut prohibited species catch (PSC) the cooperative 
may use while harvesting its rockfish primary species and secondary 
species CQ. Cooperatives are allocated a portion of the total GOA 
halibut PSC limit, as annually specified under Sec.  679.21, based on 
historic halibut mortality rates in the rockfish primary species 
fisheries. Halibut is incidentally caught and killed in a number of the 
rockfish primary species and secondary species fisheries. However, 
halibut caught as bycatch may

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not be retained or sold commercially under regulations established 
under the authority of the Northern Pacific Halibut Act of 1982, or 
under regulations implementing the FMP at Sec.  679.21. Therefore, the 
Pilot Program provides participants a fixed amount of incidental 
halibut mortality through a halibut CQ allocation.
    A rockfish cooperative can transfer all or part of their CQ to 
other rockfish cooperatives, with some restrictions.
    A rockfish cooperative may form only under specific conditions. A 
person holding an LLP license that allows them to catch and process 
their catch at sea (catcher/processor vessel LLP license) may form a 
rockfish cooperative with other persons holding catcher/processor LLP 
licenses. A person holding an LLP license that allows them only to 
deliver their catch onshore (catcher vessel LLP license) may only form 
a rockfish cooperative with other persons holding catcher vessel LLP 
licenses and only in association with the processor to whom those 
persons have historically delivered most of their catch.
    Cooperatives may associate with processors that NMFS determined met 
eligibility criteria and were allocated an exclusive privilege to 
receive and process the rockfish primary species and secondary species 
allocated to harvesters. Processors cannot process catch outside the 
communities in which they have traditionally processed rockfish primary 
species and associated secondary species.
    Limited access fishery. A person not in a rockfish cooperative, but 
holding an LLP license with rockfish QS, can decide annually to fish in 
a limited access fishery. NMFS does not allocate a specific amount of 
fish to a specific harvester in the limited access fishery. All 
harvesters in the limited access fishery compete with all other such 
harvesters to catch the TAC assigned to the limited access fishery. The 
TAC assigned to the limited access fishery represents the sum of QS 
assigned to all the LLP licenses designated for the limited access 
fishery. No exclusive harvest privilege exists in the limited access 
fishery.
    Opt-out fishery. Each year, holders of catcher/processor LLP 
licenses with rockfish QS can decide to opt-out of the Pilot Program 
for that year, with certain limitations.
    Sideboards. Limitations on the ability of harvesters under the 
Pilot Program to harvest fish in fisheries other than the Central GOA 
rockfish fisheries are commonly called ``sideboards.'' The Pilot 
Program provides certain economic efficiencies to harvesters. 
Harvesters could use their improved economic efficiency to increase 
their participation in other fisheries, adversely affecting the 
harvesters in other fisheries. Sideboards limit the total amount of 
catch in other groundfish fisheries that can be taken by eligible 
harvesters to historic levels, including harvests made in the State of 
Alaska (State) parallel groundfish fisheries. Parallel fisheries are 
fisheries authorized by the State in its waters concurrent with the 
Federal fisheries in which harvest amounts are deducted from the 
Federal TAC. Sideboards limit harvest in specific rockfish fisheries 
and the amount of halibut bycatch that can be used in certain flatfish 
fisheries. General sideboards apply to all vessels and LLP licenses 
with associated legal landings that can be used to generate rockfish 
QS. Additionally, specific sideboards apply to certain catcher/
processor and catcher vessels and LLP licenses.
    Enforcement and monitoring. NMFS implemented provisions to ensure 
that harvesters maintain catches within annual allocations and do not 
exceed sideboard limits.

Proposed Central GOA Rockfish Program

    The Council designed the proposed Rockfish Program to meet the 
requirements for limited access privileges in section 303A of the MSA. 
The Rockfish Program would include similar implementation, management, 
monitoring, and enforcement measures to those developed under the Pilot 
Program. The Rockfish Program would (1) continue to assign QS and CQ to 
participants for primary and secondary species, (2) allow a participant 
holding an LLP license with rockfish QS to form a rockfish cooperative 
with other persons, (3) allow holders of catcher/processor LLP licenses 
to opt-out of rockfish cooperatives for a given year, (4) include an 
entry level longline fishery, (5) establish sideboard limits, and (6) 
include monitoring and enforcement provisions. However, the Council 
also recommended changes to improve the functionality of the Rockfish 
Program relative to the Pilot Program.

Key Differences Between the Pilot Program and the Proposed Rockfish 
Program

    After considering program requirements and issues identified under 
the Pilot Program, in order to ensure that the Rockfish Program 
complies with section 303A of the MSA, the Council decided to modify 
some aspects of the Pilot Program under the proposed Rockfish Program. 
The Council recommended the Rockfish Program based on the analysis of 
rockfish management under the LLP, the Pilot Program, and anticipated 
changes under the proposed Rockfish Program. The rationale underlying 
the Council's decision and details of this analysis are briefly 
discussed in this preamble and are contained in the Analysis prepared 
for this proposed action (see ADDRESSES).
    Some key differences between the Pilot Program and Rockfish Program 
are outlined in Table 1. In summary, the proposed Rockfish Program 
would:
    <bullet> Change the qualifying years for eligibility for QS;
    <bullet> Use a different suite of years to determine the allocation 
of QS and sideboard limits;
    <bullet> Assign to rockfish cooperatives a specific portion of the 
Central GOA TAC of species historically harvested in the rockfish 
fisheries;
    <bullet> Assign a specific amount of halibut PSC to cooperatives 
and conserve a portion of the halibut that will remain unallocated;
    <bullet> Restrict the entry level fishery to longline gear only;
    <bullet> Relax the requirements to form a cooperative;
    <bullet> Specify the location where harvesters in cooperatives may 
deliver rockfish;
    <bullet> Remove the requirement that harvesters in a catcher vessel 
cooperatives deliver to a specific processor;
    <bullet> Discontinue the limited access fishery;
    <bullet> Simplify sideboards, and slightly modify sideboards for 
catcher/processors;
    <bullet> Implement a cost recovery program, except for the entry 
level longline fishery;
    <bullet> Establish a catch monitoring and control plan (CMCP) 
specialist; and
    <bullet> Be authorized for 10 years, from January 1, 2012, until 
December 31, 2021.
BILLING CODE 3510-22-P

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BILLING CODE 3510-22-C

Rockfish Quota Share

    This proposed rule uses the term ``quota share'' to describe the 
Rockfish Program's multi-year exclusive harvest privileges based on 
historic harvest activities, consistent with similar North Pacific 
programs. The Council did not use this term in recommending the 
Rockfish Program. Instead the Council used the terms ``qualifying 
catch,'' and ``catch history'' to describe the harvest privilege that 
is linked to historic harvests attributed to an LLP license. However, 
in implementing this program, NMFS has determined that the use of the 
term ``quota share'' does not alter the original intent of the Council.
    Rockfish QS would be an attribute of the LLP license. Once NMFS 
calculates the amount of QS to allocate to an LLP license, NMFS would 
modify that LLP license and designate that amount on the license. QS 
assigned to an LLP license could not be transferred independent from 
that LLP license, except to comply with the use caps as described below 
under Transfer of

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Rockfish QS. QS assigned to an LLP license would provide a harvest 
privilege, not a right, to its holder and would not confer a guaranteed 
harvest to the holder of that QS.
    QS would be the basis for the annual calculation of the amount of 
fish that could be harvested or used if the QS were assigned to a 
rockfish cooperative. Once QS was assigned to an LLP license, it would 
authorize that LLP license holder to participate in the Rockfish 
Program. If an LLP license holder assigned that LLP license, and its 
associated QS, to a cooperative with other LLP license holders, the sum 
of the QS of all of the eligible harvesters would yield CQ--an 
exclusive annual catch limit of rockfish primary species, secondary 
species, and halibut PSC that could be harvested by the members of the 
rockfish cooperative. Cooperatives would be formed by eligible 
harvesters holding LLP licenses in the same sector, either the catcher/
processor sector or the catcher vessel sector.
    NMFS would not issue separate QS for the rockfish secondary species 
or halibut PSC. Instead, NMFS would use the amount of rockfish primary 
species QS to determine the specific annual catch amount for the 
rockfish secondary species or halibut PSC. The Council recommended that 
NMFS base the annual catch limit of rockfish secondary species and 
halibut PSC on the total historic harvests of rockfish primary species 
attributed to LLP licenses in that sector. NMFS would incorporate this 
recommendation in the annual determination of the catch limit. The 
methods for calculating the annual catch limit for rockfish primary 
species, secondary species, and halibut PSC are discussed below under 
``TAC Apportionment to an Incidental Catch Allowance (ICA), Rockfish 
Cooperative, and Entry Level Fishery.''

Anticipated Changes in the Pelagic Shelf Rockfish Complex

    NMFS notes that the Council's Science and Statistical Committee has 
been amenable to a recent recommendation by the GOA Groundfish Plan 
Team to dissolve the pelagic shelf rockfish complex. The proposed 
Rockfish Program would allocate QS based on harvests of all three 
species in the Pelagic shelf complex--dusky, widow, and yellowtail 
rockfish. Widow and yellowtail rockfish are currently managed with 
dusky rockfish in the pelagic shelf rockfish complex, but do not 
commonly coexist in the same geographic area and habitat. The GOA 
Groundfish Plan Team is considering a plan to rearrange some species in 
the GOA rockfish stock assessments for more precise management of 
yellowtail and widow rockfish. The Council derived the 2011 pelagic 
shelf rockfish TAC from NMFS projection models of acceptable biological 
catch that estimated 91 metric tons (mt) for widow and yellowtail 
rockfish, and 4,663 mt for dusky rockfish. These estimates yield the 
2011 pelagic shelf rockfish TAC (4,754 mt). Observer data shows that 
99.7 percent of pelagic shelf rockfish landed in 2010 were dusky 
rockfish, and the remaining 0.3 percent were widow and yellowtail 
rockfish. It is possible that the relatively large acceptable 
biological catch for pelagic shelf rockfish could be used to 
overharvest the small number of yellowtail and widow rockfish in this 
complex.
    This action would not affect, or change, QS eligibility for primary 
species in the Rockfish Program. The GOA Groundfish Plan Team 
recommendation would remove dusky rockfish from the pelagic shelf 
rockfish complex and place the species into its own category. Dusky 
rockfish would then be a single species target, similar to northern 
rockfish or Pacific ocean perch. The GOA Groundfish Plan Team would 
combine the remaining rockfish species in the pelagic shelf rockfish 
complex (yellowtail and widow) with the Other Slope Rockfish complex 
and rename the complex ``Gulf of Alaska Other Rockfish.'' If the 
Council moves forward with this action, the three primary species of 
the Rockfish Program would then be Pacific ocean perch, northern 
rockfish, and dusky rockfish. If approved by the Secretary, NMFS would 
change every occurrence of ``pelagic shelf rockfish'' that appears in 
the Rockfish Program regulations and tables to ``dusky rockfish.''
    NMFS anticipates this new arrangement would not have an impact on 
the Rockfish Program. If this recommendation would have been 
established in the 2011 season, removing yellowtail and widow rockfish 
from the complex and adopting a TAC based only on dusky rockfish would 
have resulted in a reduction of 91 mt to the pelagic shelf rockfish. 
This reduction is minimal relative to the overall 2011 pelagic shelf 
rockfish TAC of 4,754 mt.

Eligibility for Harvesters

    Eligibility to receive QS would be based on the history of legal 
landings of rockfish primary species in the Central GOA associated with 
an LLP license. A person would be eligible to receive QS under the 
Rockfish Program if (1) that person held a permanent, fully 
transferable LLP license endorsed for Central GOA groundfish with a 
trawl designation at the time of application; (2) a vessel made legal 
landings of rockfish primary species under the authority of that LLP 
license during a specific time period; and (3) that person submitted a 
timely application that is subsequently approved by NMFS. A timely 
application would include a complete application for rockfish QS that 
is received by NMFS not later than 5 p.m. on January 3, 2012, or 
postmarked by that date. The application process and specific 
components required in the application are detailed under Application 
and Appeal Process below.
    The amount of QS allocated to an LLP license would be based on the 
catch history associated with the LLP licenses held by that person at 
the time of application.
    In addition, LLP license holders who would be eligible for rockfish 
QS could choose to be excluded from the Rockfish Program and not 
receive rockfish QS. These LLP license holders would be exempted from 
specific sideboard limitations applicable to LLP licenses that 
participate in the program. See ``Exclusion from the Rockfish Program'' 
for more information.

Legal Landings

    NMFS would assign QS to an LLP license if legal landings of 
rockfish were made under the authority of an LLP license for any of the 
rockfish primary species during the directed fishing seasons described 
in Tables 2 and 3 of this preamble. A legal landing would include fish 
caught, retained, and reported in compliance with State and Federal 
regulations in effect at the time of landing. For catcher vessels, a 
legal landing would include the harvest of rockfish primary species 
from the Central GOA regulatory area that was offloaded and recorded on 
a State fish ticket during the directed fishing season for that 
rockfish primary fishery. For catcher/processors, a legal landing would 
include the harvest of groundfish from the Central GOA regulatory area 
that is recorded on NMFS weekly production reports (WPRs) during the 
directed fishing season for the applicable rockfish primary fisheries.
    The LLP was effective on January 1, 2000 (63 FR 52642); however, 
NMFS did not track the use of an LLP license on a specific vessel 
during the 2000 and 2001 calendar years, which are two of the 
qualifying years for the Rockfish Program. Therefore, NMFS would create 
a presumption that legal landings for 2000 to 2001 were made under 
authority of the LLP license that was used aboard the same vessel whose 
history was the

[[Page 52156]]

basis for the LLP issuance in 2000 at the start of the program (the 
``original qualifying vessel''). In order to refute that presumption an 
applicant for QS would be required to submit written documentation to 
NMFS for review during the application process to establish otherwise.
    Under the LLP program, multiple LLP licenses can be used on a 
vessel. Therefore, landings made by a vessel could have been assigned 
to more than one LLP license. If the same LLP holder or the holders of 
more than one LLP claims the same landing and would like the resulting 
QS to be assigned to more than one LLP license, then NMFS would credit 
each LLP license with that landing. NMFS would credit landings assigned 
to more than one LLP license in another manner only if the applicants 
could provide written documentation of an agreement among the LLP 
license holders establishing an alternative means for distributing the 
landing credit. This written documentation would have to be provided to 
NMFS for review during the application process. Based on experience 
with the Pilot Program, NMFS anticipates very few landings would be 
claimed for more than one LLP license.

Qualifying Years

    The Council recommended two different methodologies for determining 
the amount of rockfish QS assigned to an LLP license, depending on the 
specific fisheries in which an LLP license holder participated. For 
most LLP license holders, QS would be assigned based on rockfish legal 
landings made during the rockfish primary fisheries during 2000 through 
2006. LLP license holders eligible to receive rockfish QS based on 
legal landings from 2000 through 2006 represent those participants 
active in the Central GOA rockfish fisheries from the implementation of 
the LLP through 2006, the last year before the Pilot Program was 
implemented. The Council recommended these years as best representative 
of historic and recent fishery participation, after analysis of a range 
of qualifying years from 1996 through 2006.
    A smaller set of LLP license holders would qualify to receive QS 
based on participation in the entry level trawl fishery during 2007, 
2008, or 2009. LLP license holders would be eligible to receive 
rockfish QS if they demonstrate participation in the Central GOA entry 
level trawl fishery during the first 3 years of the Pilot Program 
(1996, 1997, 1998) and prior to the Council's final action (2007, 2008, 
or 2009). This eligibility would be based on landings data that are 
retained by NMFS. After reviewing a range of options to either maintain 
the existing entry level trawl fishery, or choose alternative methods 
to assign rockfish QS, the Council recommended assigning rockfish QS to 
LLPs held by entry level trawl fishery participants to ensure that 
those participants benefit from catch share management. Assigning QS 
would also reduce the need to establish and manage a separate ``race 
for fish'' fishery that could be exceeded, or remain closed if the 
potential fishing effort in the fishery would likely exceed the limited 
allocation available to the fishery.
    The following sections describe these two methods for determining 
the amount of rockfish QS assigned to an LLP license and the rationale 
supporting those allocation methods.

Assigning QS to LLP Licenses Used During 2000 Through 2006

    NMFS would assign rockfish QS based on legal landings made under 
the authority of an LLP license for the directed fishing season dates 
for each of the rockfish primary species presented in Table 2.

                 Table 2--Season Dates in Each Year for Legal Landings of Rockfish Primary Species Fisheries Under the Rockfish Program
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          Year
   A rockfish legal landing   --------------------------------------------------------------------------------------------------------------------------
           includes                  2000              2001              2002              2003              2004             2005             2006
--------------------------------------------------------------------------------------------------------------------------------------------------------
Northern rockfish that were    July 4-July 26..  July 1-July 23    June 30-July 21.  June 29-July 29.  July 4-July 25.  July 5-July 24.  July 1-July 21.
 harvested in the Central GOA                     and Oct. 1-Oct.
 between.                                         21.
and landed by................  Aug. 2..........  July 30 and Oct.  July 28.........  Aug. 5..........  Aug. 1.........  July 31........  July 28.
                                                  28,
                                                  respectively.
Pelagic shelf rockfish that    July 4-July 26..  July 1-July 23    June 30-July 21.  June 29-July 31.  July 4-July 25.  July 5-July 24,  July 1-July 21
 were harvested in the                            and Oct. 1-Oct.                                                        Sept. 1, Sept    and Oct. 2-
 Central GOA between.                             21.                                                                    4, and Sept. 8-  Oct. 8.
                                                                                                                         Sept. 10.
and landed by................  Aug. 2..........  July 30 and Oct.  July 28.........  Aug. 7..........  Aug. 1.........  July 31, Sept.   July 28 and
                                                  28,                                                                    11, and Sept.    Oct. 15,
                                                  respectively.                                                          17,              respectively.
                                                                                                                         respectively.
Pacific ocean perch that were  July 4-July 15..  July 1-July 12..  June 30-July 8..  June 29-July 8..  July 4-July 12.  July 5-July 14.  July 1-July 6.
 harvested in the Central GOA
 between.
 
and landed by................  July 22.........  July 19.........  July 15.........  July 15.........  July 19........  July 21........  July 13.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Table 2, NMFS would consider legal landings for QS if 
the harvests were made when the directed fishing season was open and 
the landings were reported within 7 days after the end of the season. 
This 7-day extension would accommodate harvesters that caught rockfish 
during the directed fishing season but were not able to deliver that 
catch until after the season ended. Several days may be required for a 
harvesting vessel to reach processing facilities after the end of a 
season, and the 7-day extension would accommodate those harvesters. 
Additionally, this 7-day period would accommodate catcher/processors 
that submitted WPRs in a timely manner. Because the WPR is required on 
a weekly basis, the season could have ended before the WPR submission 
deadline had been reached. A 7-day period after the end of the directed 
fishing season to report landings would

[[Page 52157]]

accommodate catcher/processors submitting WPRs.
    For each fully transferable LLP license under which a rockfish 
legal landing was made for one or more rockfish primary species during 
the season dates described in Table 2, NMFS would calculate the QS for 
each of the three rockfish primary species using the following 
procedures.
    First, NMFS would sum the legal landings of each rockfish primary 
species for each year from 2000 through 2006, including years with zero 
pounds, during the fishery seasons listed in Table 2.
    Second, NMFS would sum the 5 years with highest poundage of legal 
landings for that LLP license for that rockfish primary species 
(referred to as the highest 5 years for that LLP license). The highest 
5 years could vary for each of the three rockfish primary species. This 
amount would yield the QS that would be issued for that LLP license in 
QS units. As with other catch share programs (e.g., Bering Sea and 
Aleutian Islands (BSAI) Crab Rationalization Program), NMFS would 
assign rockfish QS using a subset of qualifying years to accommodate 
the variability in fishing patterns that may occur annually due to a 
range of factors. Using a subset of years would accommodate conditions 
that could adversely affect overall harvests, such as illness, 
mechanical problems, poor market conditions, or other factors. Using a 
subset of the years would allow NMFS to consider these factors without 
undertaking the administratively complicated task of reviewing specific 
landing records for each vessel and LLP license holder and determining 
if specific landings should or should not be included based on specific 
criteria.
    Third, NMFS would sum the highest 5 years for each rockfish primary 
species for each LLP license qualified to receive rockfish QS based on 
rockfish legal landings for all LLP licenses receiving rockfish QS 
based on landings from 2000 through 2006. The result is the sum of all 
highest 5 years for each rockfish primary species.
    Catcher/Processor QS. An LLP license endorsed for Central GOA 
groundfish fisheries with a catcher/processor trawl designation would 
be assigned rockfish QS to participate in the catcher/processor sector 
based on any rockfish legal landings of primary species that were 
harvested by and processed aboard the vessel designated on the LLP 
license during the qualifying periods.
    NMFS would determine the amount of QS units for a rockfish primary 
species that would be assigned to the catcher/processor sector. NMFS 
would determine the percentage of legal landings in the highest 5 years 
for the LLP license used to calculate the QS assigned to the catcher/
processor sector and would multiply the QS units for that license by 
this percentage. This yields the QS units that would be assigned to the 
catcher/processor sector for that LLP license. The total amount of QS 
assigned to the catcher/processor sector would be equal to the sum of 
all QS units assigned to all eligible rockfish harvesters in the 
catcher/processor sector.
    The Council recommended that NMFS assign rockfish QS to the 
catcher/processor sector based on legal landings that were harvested at 
sea and processed onboard a vessel. The Council wanted to ensure that 
rockfish QS could be processed at sea only if the underlying legal 
landings that gave rise to that QS were harvested and processed at sea. 
Allocation of rockfish QS to the catcher/processor sector based on the 
designation on the LLP license alone would create the potential for 
allocations of rockfish QS based on landings that were not harvested 
and processed at sea.
    Each year, the holder of a catcher/processor designated LLP license 
with QS could decide to opt-out of participating in a rockfish 
cooperative. Participants that choose to ``opt-out'' forgo the 
opportunity to fish rockfish primary species. CQ derived from the QS of 
LLP license holders that decide to ``opt-out'' would be reallocated to 
cooperatives within the catcher processor sector.
    Catcher vessel QS. An LLP license endorsed for Central GOA 
groundfish fisheries with a trawl designation with rockfish legal 
landings that were not processed at sea would be assigned rockfish QS 
for the catcher vessel sector. The allocation would be based on any 
legal landings of primary species that were harvested aboard the vessel 
from which that LLP license was derived or used during the qualifying 
periods. The total amount of QS units assigned to the catcher vessel 
sector would be equal to the sum of all QS units assigned to all 
eligible rockfish harvesters in the catcher vessel sector.
    If landings were made on a vessel assigned an LLP license with a 
catcher/processor designation, but the rockfish primary species legally 
landed by that vessel were not caught and processed onboard that 
vessel, NMFS would assign any QS resulting from those legal landings to 
the catcher vessel sector. Based on an initial review of rockfish legal 
landings data, NMFS does not anticipate any such allocations of 
rockfish QS.
    Allocation of Rockfish QS from an interim LLP license. NMFS would 
assign rockfish legal landings and any resulting rockfish QS only to 
permanent and fully transferable LLP licenses, with one exception. NMFS 
would assign rockfish legal landings that were made under the authority 
of an interim LLP license endorsed for Central GOA groundfish with a 
trawl gear designation during the season dates for the rockfish primary 
species, as described in Table 2 of this preamble, provided that (1) 
NMFS has determined that the interim LLP license is ineligible to 
receive a designation as a permanent LLP license endorsed for Central 
GOA groundfish with a trawl gear designation; and (2) a permanent fully 
transferable LLP license endorsed for Central GOA groundfish with a 
trawl gear designation was assigned to the vessel that made legal 
rockfish landings under the authority of an interim LLP license 
endorsed for Central GOA groundfish prior to December 31, 2003, and was 
continuously assigned to that vessel through June 14, 2010.
    The Council recommended this specific exemption to provide an 
opportunity for persons who were active in the Central GOA rockfish 
fisheries but who did not receive a permanent fully transferable LLP 
license to be eligible to receive rockfish QS provided they demonstrate 
a clear intent to remain active in the fishery. This particular 
exemption would apply only to a person who: (1) Held an interim LLP 
license that was determined to be invalid by NMFS prior to December 31, 
2003; and (2) assigned a different permanent LLP license to the same 
vessel that made the rockfish legal landings prior to December 31, 
2003; and (3) maintained the permanent LLP license on that vessel until 
at least June 14, 2010. The Council recommended this provision and the 
December 31, 2003, deadline based on data that demonstrated that at 
least two LLP license holders had been active in the Central GOA 
rockfish fisheries with an interim LLP license prior to December 31, 
2003, but subsequently purchased a fully transferable LLP license 
before December 31, 2003. This provision would ensure that LLP license 
holders who demonstrated participation in the Central GOA rockfish 
fisheries during the qualifying period would continue to be eligible to 
receive rockfish QS from rockfish legal landings made under the 
authority of the interim LLP licenses. The Council also wanted to 
ensure that any permanent LLP license was continuously maintained on 
that vessel from the time it replaced the interim LLP license until the 
date of final

[[Page 52158]]

Council action (June 14, 2010) on the Rockfish Program. The Council 
recommended this requirement to ensure that an LLP license holder was 
continuously active in the Central GOA rockfish fisheries with the 
permanent LLP license and did not reassign that LLP license to another 
vessel while the Rockfish Program was being developed by the Council.
    This proposed rule would, assign rockfish legal landings made under 
the authority of an interim LLP license to the permanent fully 
transferable LLP license assigned to that vessel. NMFS would not assign 
any rockfish legal landings to the permanent fully transferable LLP 
license based on fishing conducted under the authority of the permanent 
fully transferable LLP license before it was assigned to the vessel. 
This method would ensure that the Council's intent that rockfish legal 
landings made during the same time period from more than one LLP 
license would not be assigned rockfish QS. Effectively, a person 
holding the permanent fully transferable LLP license could receive 
rockfish QS for rockfish legal landings made prior to the assignment of 
a permanent LLP license to the vessel that made those landings, and 
rockfish QS based on rockfish legal landings that were made under the 
authority of the permanent LLP license after it was transferred to the 
vessel.
    Rationale for assigning Rockfish QS based on rockfish legal 
landings from 2000 through 2006. During the development of the Rockfish 
Program, the Council considered a range of years that could be used to 
determine the appropriate allocation of rockfish QS to the eligible LLP 
license holders. Originally, the Pilot Program assigned rockfish legal 
landings and rockfish QS based on the specific guidance provided in 
Section 802:

    SEC. 802. GULF OF ALASKA ROCKFISH DEMONSTRATION PROGRAM. The 
Secretary of Commerce, in consultation with the North Pacific 
Fishery Management Council, shall establish a pilot program that 
recognizes the historic participation of fishing vessels (1996 to 
2002, best 5 of 7 years) and historic participation of fish 
processors (1996 to 2000, best 4 of 5 years) for Pacific ocean 
perch, northern rockfish, and pelagic shelf rockfish harvested in 
Central Gulf of Alaska. * * *

    The specific guidance that Congress provided limited the suite of 
years that the Council could consider in the development of the Pilot 
Program. Section 802, however, did not preclude the Council from 
considering additional qualifying periods once the Pilot Program 
expired. Moreover, nothing in Section 802 or the regulations 
implementing the Pilot Program indicates that the Council or NMFS 
should or must consider or adopt the qualifying years of 1996 through 
2002 when developing the Rockfish Program.
    Therefore, the Council examined a broad range of years from the 
first year identified in section 802 (1996) through the last year prior 
to the implementation of the Pilot Program (2006). The Council looked 
at but rejected harvest during the Pilot Program (2007 through 2011) 
because the analysis showed harvests under the Pilot Program 
cooperatives and limited access fishery were made under a combination 
of CQ and limited access fishing that were based on a combination of 
cooperative contract provisions and a race for fish in the limited 
access fishery that are not reflective of the harvest patterns the 
analysis shows likely would have occurred in the absence of the Pilot 
Program.
    The Council considered both historic and recent participation in 
the rockfish fisheries when recommending the appropriate qualifying 
years for assigning rockfish legal landings. In balancing the interests 
of historic and recent participants, the Council considered fishing 
patterns over the 11-year period from 1996 through 2006. Several 
general patterns emerged in the Council's review that is described in 
detail in section 2.3.1 of the Analysis (see ADDRESSES). Participation 
in the rockfish fisheries by catcher/processor vessels has decreased 
substantially since 1999. From 1996 through 1999, 8 to 15 catcher/
processor vessels harvested fish in the Central GOA rockfish fisheries 
annually, and from 2000 through 2006, 5 to 7 catcher/processor vessels 
were active in the fishery annually. The stable participation of 
catcher/processor vessels since 2000 indicates that more recent fishing 
patterns may better reflect dependence and consistent participation in 
the fishery. A more stable pattern is evident in the catcher vessel 
fleet. From 1996 through 1999, 26 to 32 catcher vessels retained catch 
in the Central GOA rockfish fisheries annually, and from 2000 through 
2006, 25 to 33 catcher vessels were active in the fisheries annually. 
Section 2.3.1 of the Analysis also notes that the proportion of catch 
retained by catcher vessels generally increased after 2000.
    The Council also considered the effects of allocating rockfish QS 
based on legal landings prior to the implementation of the LLP in 2000. 
Rockfish legal landings prior to 2000 were made under a different 
management regime than management under the LLP. The LLP limited 
potential increased effort in the Central GOA. Catch patterns prior to 
the implementation of the LLP are not indicative of more recent catch 
patterns. The Council also considered whether catch in 1996 through 
1999 characterizes historic and recent participation given the observed 
changes in fishing patterns and management since 2000. The Council 
noted that using rockfish legal landings from 2000 through 2006 would 
include 3 of the 7 years used in the allocation of rockfish QS under 
the Pilot Program, yet would also consider more recent fishery 
participation patterns from 2003 through 2006.
    The Council also considered the potential effects of modifying the 
qualifying years from 1996 through 2002 on current rockfish Pilot 
Program QS holders. The Council noted that the Pilot Program was a 5-
year program. Congress initially established the Pilot Program as a 2-
year program under section 802 of the Consolidated Appropriations Act 
of 2004, and subsequently extended the duration of the Pilot Program to 
5 years under section 218 of the Magnuson-Stevens Fishery Conservation 
and Management Reauthorization Act of 2007. Given the clear expiration 
dates for the Pilot Program established by Congress, LLP license 
holders should have reasonably assumed that the Council could set 
rockfish QS allocations under the Rockfish Program that could differ 
from those Congress established for the Pilot Program. In fact, the 
Council consistently considered a range of reasonable alternative 
qualifying years other than 1996 through 2002 while developing the 
Rockfish Program. The Council noted throughout the development of the 
Rockfish Program that, given the limited duration of the Pilot Program 
established by Congress, the qualifying years used to allocate rockfish 
QS were subject to change. The Council received public testimony 
through extensive hearings for consideration in determining the 
qualifying years during the deliberation process.
    Given the observed changes in fishing patterns by catcher/processor 
vessels beginning in 2000, the changes in management of the fishery 
with the implementation of the LLP in 2000, and the consideration of 
both historic and more recent fishing patterns, the Council selected 
the qualifying years of 2000 through 2006.

[[Page 52159]]

Assigning QS to LLP Licenses Used During the Rockfish Entry Level Trawl 
Fishery During 2007, 2008, or 2009

    The second method proposed for assigning rockfish QS to LLP 
licenses is based on the use of an LLP license in the entry level trawl 
fishery during any of the first 3 years of the Pilot Program; 2007, 
2008, or 2009. The Council recommended a specific method to assign 
rockfish QS based on the number of years that the LLP license was 
assigned to a vessel that made a rockfish legal landing in the entry 
level trawl fishery in 2007, 2008, or 2009 during directed fishing 
season dates for each of the rockfish primary species presented in 
Table 3. NMFS notes that because only catcher vessels were eligible to 
participate in the entry level trawl fishery, the rockfish QS assigned 
to an eligible LLP license is designated as catcher vessel QS.

   Table 3--Season Dates in Each Year for Legal Landings of Rockfish Primary Species Fisheries Under the Entry
                                               Level Trawl Fishery
----------------------------------------------------------------------------------------------------------------
    A rockfish legal landing
         includes . . .                     2007                       2008                       2009
----------------------------------------------------------------------------------------------------------------
Northern rockfish that were      Sept.1-Nov. 8............  Sept.1-Nov. 15...........  Sept.1-Nov. 15.
 harvested by vessels
 authorized to fish in the
 rockfish entry level trawl
 fishery between . . .
and landed by . . .              Nov. 15..................  Nov. 22..................  Nov. 22.
Pelagic shelf rockfish that      July 4-July 25...........  July 5-July 24...........  July 1-July 21.
 were harvested by vessels
 authorized to fish in the
 rockfish entry level trawl
 fishery between . . .
and landed by . . .              Aug 1....................  July 31..................  July 28.
Pacific ocean perch that were    July 4-July 12...........  July 5-July 14...........  July 1-July 6.
 harvested by vessels
 authorized to fish in the
 rockfish entry level trawl
 fishery between . . .
and landed by . . .              July 19..................  July 21..................  July 13.
----------------------------------------------------------------------------------------------------------------

    As shown in Table 3, NMFS would consider legal landings for QS if 
the harvests were made when the directed fishing season was open and 
the landings were reported within 7 days after the end of the season. 
For each LLP license that made a rockfish legal landing for one or more 
rockfish primary species during the season dates established in Table 
3, NMFS would calculate the QS for each of the three rockfish primary 
species for each fully transferable LLP license held by an eligible 
rockfish harvester using the following procedures.
    First, NMFS would assign one Rockfish Landing Unit to an LLP 
license for each year a legal landing of any rockfish primary species 
was made under the authority of an LLP license during the season dates 
for the entry level trawl fishery in 2007, 2008, or 2009 as established 
in Table 3 of this preamble. This would yield the Rockfish Landing 
Units for that LLP license.
    Second, NMFS would sum the Rockfish Landing Units of all eligible 
LLP licenses.
    Third, NMFS would divide the Rockfish Landing Units for an LLP 
license by the sum of all Rockfish Landing Units of all LLP licenses. 
This calculation would result in the Percentage of the Total Entry 
Level Trawl Fishery Transition Rockfish QS pool that would be assigned 
to that LLP license.
    Fourth, NMFS would determine the Total Entry Level Trawl Fishery 
Transition Rockfish QS pool for each rockfish primary species. NMFS 
would divide the sum of all highest 5 years for each rockfish primary 
species that was calculated for the LLP licenses receiving rockfish QS 
based on rockfish legal landings from 2000 through 2006, divide that 
amount by 97.5 percent, and then subtract the sum of the highest 5 
years for that rockfish primary species. This calculation would yield 
the Total Entry Level Trawl Fishery Transition Rockfish QS pool for 
that rockfish primary species. This calculation is summarized in the 
calculation below. In this equation ``s'' represents the rockfish 
primary species.

([sum] All Highest Five Years<INF>s</INF>/0.975) - [sum] All Highest 
Five Years<INF>s</INF> = Total Entry Level Trawl Fishery Transition 
Rockfish QS pool<INF>s</INF>

    This calculation ensures that 2.5 percent of the total rockfish QS 
pool for each rockfish primary species is established as a QS pool that 
would then be apportioned to each LLP license holder based on the 
number of years that the LLP license holder made a rockfish legal 
landing during the directed fishery season as defined in Table 3 of 
this preamble. This is consistent with the 2.5 percent of the combined 
TAC for the three rockfish fisheries assigned to trawl catcher vessels 
in the entry level fishery.
    Fifth, NMFS would assign a portion of the Total Entry Level Trawl 
Fishery Transition Rockfish QS pool to each LLP license holder by 
multiplying the Percentage of the Total Entry Level Trawl Fishery 
Transition Rockfish QS pool for each LLP license, by the Total Entry 
Level Trawl Fishery Transition Rockfish QS pool for each rockfish 
primary species. This would yield the number of rockfish QS units for 
that LLP license for that rockfish primary species.
    Rationale for assigning Rockfish QS based on rockfish legal 
landings in 2007, 2008, or 2009. NMFS noted throughout the development 
of the Pilot Program that the small allocations of TAC that were likely 
to be available to trawl catcher vessels could preclude the ability for 
NMFS to open the fishery if fishery effort was likely to exceed the 
allocation available. This concern was noted in the response to public 
comment section of the final rule implementing the Pilot Program.

    NMFS' ability to open an entry level fishery would only be 
curtailed if large numbers of participants with sufficient harvest 
capacity register to fish for the fishery. Under alternative methods 
of management (i.e., IFQ fishing), small allocations may be more 
manageable, however, the entry level fishery was designed to provide 
an opportunity to persons not otherwise eligible for the Program, 
and not to institute complex quota-based management for a small 
amount of TAC for a two-year Program. NMFS does not anticipate that 
large numbers of participants will choose to participate in the 
entry level fishery due to the small amount of TAC available for 
harvest. (71 FR 67228; November 20, 2006).

    Under the Pilot Program, NMFS assigned TAC of northern rockfish, 
pelagic shelf rockfish, and Pacific ocean perch to the entry level 
fishery so that 50 percent (or 2.5 percent of the combined TAC for the 
three rockfish fisheries) was assigned to trawl catcher vessels and 50 
percent (2.5 percent of the combined TAC for the three rockfish 
fisheries) was assigned for longline catcher vessels. Historically, 
Pacific ocean perch has been harvested almost exclusively with trawl 
gear. Northern rockfish and pelagic shelf rockfish have been harvested 
by longline vessels to a

[[Page 52160]]

limited degree. Rather than allocate Pacific ocean perch equally 
between the trawl and longline vessels, resulting in Pacific ocean 
perch remaining unharvested by longline vessels, NMFS allocated Pacific 
ocean perch to entry level trawl vessels first. NMFS allocated any 
remaining pounds up to the combined 2.5 percent TAC for the three 
rockfish species from the TAC that would be assigned to northern 
rockfish and pelagic shelf rockfish. NMFS made unharvested northern 
rockfish, pelagic shelf rockfish, or Pacific ocean perch available for 
harvest by trawl and longline on September 1. Any unharvested rockfish 
in either the longline or trawl gear allocations could be harvested by 
trawl and longline vessels beginning September 1.
    During the Pilot Program, NMFS staff and entry level trawl fishery 
participants continued to express concerns about the potential for more 
than a limited number of participants to register for, and participate 
in, the entry level trawl fishery. Given the small amount of TAC 
assigned to the entry level trawl fishery (e.g., approximately 400 mt 
in 2010), if more than two or three vessels participated in the 
fishery, NMFS may need to close the fishery as a precautionary measure 
to avoid exceeding the entry level trawl allocation. Given these 
concerns, the Council recommended eliminating the entry level trawl 
fishery, yet providing an opportunity for those LLP license holders to 
receive rockfish QS for their participation in the years prior to the 
Council's final action in June 2010 (e.g., 2007, 2008, or 2009). 
Allocating rockfish QS to participants in the entry level trawl fishery 
would recognize the participation of entry level trawl participants and 
ensure that those participants received the benefits of catch share 
management (e.g., avoid a competitive and potentially wasteful race for 
fish, tailor fishing operations to specific catch limits to improve 
economic efficiency, and have the ability and incentive to adopt 
fishing practices with reduced bycatch).
    The Council considered a variety of alternative methods to assign 
rockfish QS to entry level trawl participants. Through public 
testimony, the Council was made aware of some specific concerns and 
complexities that could arise if rockfish QS were allocated based on 
the amount of rockfish legal landings during 2007, 2008, and 2009. In 
all these years, the entry level fishery received an allocation of 5 
percent of the Pacific ocean perch available to the Pilot Program or 
346 mt per year in 2007 and 2008, and 339 mt in 2009. No allocation of 
northern rockfish or pelagic shelf rockfish was made to the trawl entry 
level fishery. Perhaps most problematic is a pending enforcement 
investigation concerning all catches from the fishery in 2008. At the 
extreme, the investigation could result in most catches from the 2008 
entry level trawl fishery being determined to have been illegal, which 
would prevent their consideration for determining rockfish QS 
allocations under the Rockfish Program.
    Section 2.4.1 of the Analysis (see ADDRESSES) notes that assigning 
rockfish QS to the trawl sector based on rockfish legal landings during 
2007, 2008, or 2009, could result in some LLP licenses receiving a 
relatively large amount of rockfish QS compared to the total amount of 
rockfish QS issued to the catcher vessel sector. Under one allocation 
scenario considered, one LLP license could have received an allocation 
of Pacific ocean perch QS equal to roughly 10 percent of the available 
catcher vessel Pacific ocean perch QS. On the other hand, it is 
possible that an entry level participant could receive a very small 
allocation of northern rockfish or pelagic shelf rockfish QS, if that 
entry level participant recorded little or no landings of those 
species.
    The Council considered an alternative approach to allocating 
rockfish QS to ensure that the initial allocation of rockfish QS more 
closely aligned with the years of participation in the entry level 
fishery rather than total catches, and to address concerns raised about 
the potential uncertainty about the legality of including catches from 
2008 to allocate rockfish QS. Under the alternative approach, the 
Council considered assigning from 1.5 to 5 percent of the total 
rockfish QS to entry level trawl participants. This rockfish QS would 
be assigned to LLP licenses based on the proportion of the total number 
of years that rockfish legal landings were made under authority of the 
LLP licenses during 2007, 2008, or 2009. The Council ultimately chose 
to allocate 2.5 percent of the total rockfish QS to entry level trawl 
participants that apply for QS. This allocation is consistent with the 
proportion of the TAC that was initially assigned to entry level trawl 
vessels during the Pilot Program.

The Official Rockfish Program Record

    NMFS would determine the amount of an eligible applicant's QS, or a 
person's eligibility as a processor, based on a review of the Official 
Rockfish Program Record (Official Record). NMFS would produce the 
Official Record from the best available data including State fish 
tickets, NMFS WPRs, and other relevant information. NMFS would presume 
the Official Record is correct and an applicant would have the burden 
of establishing otherwise through an evidentiary appeals process.

Exclusion From the Rockfish Program

    The Council recommended a specific provision to allow an eligible 
LLP license holder to choose to be excluded permanently from the 
Rockfish Program and not receive rockfish QS. An LLP license holder 
eligible for this exclusion would be one who would qualify for rockfish 
legal landings made under the authority of an LLP license both during 
2000 through 2006 and in the entry level trawl fishery during 2007, 
2008, or 2009. If the LLP license were excluded from receiving rockfish 
QS, it would be exempted from specific sideboard limits that would 
otherwise apply to that LLP license.
    The Council recommended this specific provision to recognize a 
situation in which a limited number of LLP licenses, possibly no more 
than one LLP license based on a review of the available information, 
had limited participation in Central GOA rockfish fisheries during 2000 
through 2006, and during the entry level trawl fishery in 2007, 2008, 
or 2009. This license had also participated in rockfish fisheries in 
the West Yakutat District or the Western GOA in recent years. The one 
LLP license holder who had participated in the Central GOA rockfish 
fisheries during this time period testified that given the limited 
allocation of rockfish QS that would likely result from the Rockfish 
legal landings associated with that LLP license, the LLP license holder 
would prefer to have the option to forego an allocation of rockfish QS 
in order to continue to participate in the West Yakutat District and 
Western GOA rockfish fisheries consistent with recent participation 
patterns. NMFS would require that an LLP license holder submit an 
application for rockfish QS affirming their exclusion from the Rockfish 
Program and permanently forgo their rockfish QS. This requirement would 
ensure that an LLP license holder would have a one-time limited 
opportunity to be excluded from the Rockfish Program consistent with 
the Council's clear intent to provide a limited timeframe in which to 
seek an exclusion.

Application and Appeal Process

    To receive rockfish QS, a potentially eligible LLP license holder 
must submit an application to participate in the Rockfish Program that 
is received by

[[Page 52161]]

NMFS by 5 p.m. on January 3, 2012, or postmarked by that date. The 
application form would be available on the NMFS Alaska Region Web site 
http://alaskafisheries.noaa.gov. Interested persons could contact NMFS 
to request an application package. Further and based on the official 
record, NMFS would mail an application package to all potentially 
eligible LLP license holders based on the address on record at the time 
the application period opens. An application could be submitted by 
mail, fax, or hand delivery. The proposed regulatory text (see Sec.  
679.81(f)) provides addresses and delivery locations. NMFS would 
determine if an application received by hand delivery or carrier is 
timely based on the receiving date of signature by NMFS staff. If the 
application is submitted by facsimile, the receiving date of the 
application is the date stamped received by NMFS. NMFS would not 
consider an application to have been received by the deadline if the 
applicant cannot provide objective written evidence that NMFS Alaska 
Region received it. Objective written evidence of timely application 
(e.g., fax confirmation sheet, registered mail receipt) would be 
considered as proof of a timely application. This proposed regulation 
would serve to stress for participants that proof of filing should be 
maintained. Applicants who keep records of filing would effectively 
resolve any dispute prior to an administrative finding that an 
application was not filed. Adopting a practice of maintaining records 
of filings would aid applicants should NMFS dispute the timely filing 
of an application. Any application that is submitted by mail and 
postmarked, or submitted by hand delivery or fax, after the last day of 
the application period will be denied.
    NMFS would require an application to participate in the Rockfish 
Program, or to be excluded, for potentially eligible processors and 
harvesters. Briefly, the application would contain the following 
elements:
    <bullet> Identification and contact information for the applicant;
    <bullet> Harvester information, including vessel identification and 
LLP licenses used on a vessel;
    <bullet> Whether the applicant wishes to receive rockfish QS based 
on rockfish legal landings from 2000 through 2006, or during the entry 
level trawl fishery in 2007, 2008, or 2009, if eligible for both;
    <bullet> If an applicant is choosing to exclude an LLP license from 
the Rockfish Program;
    <bullet> Any other information deemed necessary by NMFS. NMFS may 
request additional information to clarify the application and determine 
if an applicant's LLP license is qualified to receive QS, or if an 
applicant is an eligible rockfish processor; and
    <bullet> The applicant's signature and certification.
    NMFS would evaluate applications submitted during the specified 
application period and compare all claims in an application with the 
information in the Official Record. NMFS would accept claims in an 
application it determines to be consistent with information in the 
Official Record. NMFS would not accept inconsistent claims in the 
applications, unless verified by documentation. An applicant who 
submits inconsistent claims, or an applicant who fails to submit 
information supporting his or her claims with their application, would 
be provided a single 30-day evidentiary period to submit the specified 
information, submit evidence to verify his or her inconsistent claims, 
or submit a revised application with claims consistent with information 
in the Official Record. An applicant who submits claims that are 
inconsistent with information in the Official Record would have the 
burden of proving that the submitted claims are correct.
    NMFS would evaluate additional information or evidence to support 
an applicant's inconsistent claims submitted prior to or within the 30-
day evidentiary period. If NMFS were to determine that the additional 
information or evidence met the applicant's burden of proving that the 
inconsistent claims in his or her application were correct, NMFS would 
amend the Official Record with that information or evidence. NMFS would 
use this information or evidence to determine the applicant's 
eligibility. However, if NMFS were to determine that the additional 
information or evidence did not meet the applicant's burden of proof 
that the inconsistent claims in his or her application were correct, 
NMFS would deny the inconsistent claims. NMFS would notify the 
applicant that the additional information or evidence did not meet the 
burden of proof to change the information in the Official Record 
through an initial administrative determination (IAD).
    NMFS would prepare and send an IAD to the applicant following the 
expiration of the 30-day evidentiary period if NMFS were to determine 
that the information or evidence provided by the applicant failed to 
support the applicant's claims and was insufficient to rebut the 
presumption that the Official Record is correct. NMFS' IAD would 
indicate the deficiencies and discrepancies in the application, or 
revised application, including any deficiencies in the information, or 
the evidence submitted in support of the information. NMFS' IAD would 
indicate which claims could not be approved based on the available 
information or evidence. An applicant could appeal an IAD. The appeals 
process is described under 50 CFR 679.43. An applicant who appeals an 
IAD would not receive contested landing data until the appeal was 
resolved in the applicant's favor.
    If an application is denied by final agency action, then all 
rockfish QS that would have been assigned to that applicant based on 
that LLP license would be redistributed among all other eligible 
rockfish harvesters in proportion to the amount of their rockfish 
primary species QS. If an LLP license holder applied to receive 
rockfish QS based on rockfish legal landings from 2000 through 2006 and 
that application is subsequently denied, NMFS would redistribute any 
rockfish QS that would have been assigned to that LLP license to all 
other eligible LLP licenses that applied to receive rockfish QS based 
on rockfish legal landings from 2000 through 2006. Similarly, if an LLP 
license holder applied to receive rockfish QS based on rockfish legal 
landings during the entry level trawl fishery in 2007, 2008, or 2009, 
NMFS would redistribute any rockfish QS that would have been assigned 
to that LLP license to all other eligible LLP licenses held by persons 
who applied to receive rockfish QS based on rockfish legal landings 
during the entry level trawl fishery in 2007, 2008, or 2009. This 
redistribution of rockfish QS would ensure that the total amount of 
rockfish QS assigned to LLP licenses eligible to receive rockfish QS 
from 2000 through 2006, and during the entry level trawl fishery in 
2007, 2008, or 2009 is maintained at a constant proportion of 97.5 
percent and 2.5 percent, respectively. The initial rockfish QS pool is 
the sum of the rockfish QS issued to all eligible LLP licenses.

Transfer of Rockfish QS and Excessive Share Caps

    With one exception, rockfish QS would not be severable from an LLP 
license. The rockfish QS and LLP license would be subject to the LLP 
license transfer under 50 CFR 679.4(k)(7).
    The exception recommended by the Council and proposed in this rule 
is intended to ensure that use caps apply to all persons except initial 
QS recipients. The Council recommended that an LLP license that is 
initially

[[Page 52162]]

assigned an amount of rockfish QS that exceeds the use caps can be 
transferred only if the amount of rockfish QS that exceeds the rockfish 
QS use cap is transferred to another LLP license so the LLP license 
would be transferred with a total amount of QS that is under the use 
cap. The excess QS could be transferred only to an LLP that has already 
been assigned rockfish QS of the same sector. For example, catcher/
processor designated rockfish QS could only be transferred to an LLP 
license that is already assigned catcher/processor designated rockfish 
QS. Once the total amount of rockfish QS assigned to an LLP license is 
under the applicable use cap, it could be transferred under the LLP 
license transfer provisions. NMFS would require that, when transferring 
rockfish QS from one LLP license to another LLP license, the transferor 
and transferee submit an application to NMFS.

Rockfish Cooperatives

    Holders of Rockfish QS may annually choose to be a member of a 
rockfish cooperative. The Rockfish Program would regulate the formation 
of rockfish cooperatives and the use of CQ. NMFS would issue a CQ 
permit to each rockfish cooperative that specified how much CQ it could 
harvest. This amount would be based on the sum of the QS of the 
cooperative members and any CQ that the rockfish cooperative 
subsequently receives by transfer from another rockfish cooperative.
    The Council provided numerous recommendations on the specific 
requirements to form a rockfish cooperative under the Rockfish Program. 
The Council recommended carrying over from the Pilot Program many of 
the basic administrative requirements to form a harvesting cooperative. 
Provisions for cooperatives include requiring registration as a U.S. 
corporation, meeting the applicable monitoring and requirements, and 
adhering to applicable antitrust restrictions when undertaking price 
and delivery negotiations. These provisions have been consistently 
applied in other North Pacific cooperative programs. The Council 
recommended their application in the proposed Rockfish Program.
    The Council did recommend several key changes in the proposed 
Rockfish Program from the Pilot Program. These include recommendations 
concerning (1) the requirements to form a cooperative, (2) the 
interests of traditional shorebased rockfish processing companies, (3) 
CQ transfer requirements, and (4) reporting requirements.
    The Council relaxed the requirements to form a rockfish 
cooperative. The Council sought to balance the desire to encourage 
cooperative formation and the flexibility for LLP license holders to 
coordinate with whomever they wished. Ultimately, the Council 
recommended there would be no minimum number of LLP licenses with 
affixed rockfish QS required to form a cooperative. The Council did 
recommend, however, that if a cooperative wished to receive CQ by 
transfer the CQ would need to be assigned to a minimum of two LLP 
licenses. This limitation would encourage cooperative formation among 
LLP license holders by providing them greater flexibility to transfer 
CQ to meet operational demands.
    The Council also recommended modifying the requirement of the Pilot 
Program that LLP license holders with rockfish QS designated for the 
catcher vessel sector form a cooperative only with the processor to 
whom a majority of their catch was delivered during 1996 through 2000. 
The Council modified this requirement because the specific requirement 
and authority provided in section 802 will expire with the Pilot 
Program, and this specific provision was not necessary to meet the 
goals of the Rockfish Program.

Eligibility for Processors

    Unlike the Pilot Program, processors would not be required to meet 
historical eligibility requirements to receive primary or secondary 
species fish harvested by rockfish cooperatives. For the Rockfish 
Program, the Council recommended that a catcher vessel cooperative can 
only form if a ``rockfish processor'' is an ``associate'' of the 
rockfish cooperative and is designated on the application for CQ. A 
rockfish processor would be any shoreside processor with a Federal 
processor permit that receives groundfish harvested under the authority 
of a rockfish CQ permit. In order to receive rockfish CQ, that 
shorebased processor would also need to be located within the 
boundaries of the City of Kodiak and have an approved CMCP as described 
in the ``Monitoring and Enforcement'' section of this preamble. This 
requirement would not limit a catcher vessel cooperative to only one 
processor, and it would not obligate the cooperative to deliver catch 
to that specific processor. The association requirement only indicates 
that a processor may be willing to receive the catch. A catcher vessel 
cooperative could form an association with any qualified processor, 
whether old or new, that meets the requirements to receive rockfish CQ. 
The processor is not required to be in business at the effective date 
of this rule to qualify to receive rockfish CQ. The association between 
a catcher vessel cooperative and processor is a requirement and must be 
submitted to NMFS by the cooperative in the application for CQ. A 
catcher vessel rockfish cooperative may not receive rockfish CQ unless 
a shoreside processor eligible to receive rockfish CQ has indicated in 
the annual application for CQ that it may be willing to receive 
rockfish CQ from that cooperative. The proposed requirement would 
encourage harvesters and processors to discuss and possibly coordinate 
fishing plans as part of the application process to form a rockfish 
cooperative, but without the specific mandate established under the 
Pilot Program. Membership agreements must specify that processor 
affiliated cooperative members cannot participate in price setting 
negotiations except as permitted by antitrust laws.
    The Council also sought to address concerns raised by processors 
that allocation of exclusive harvest privileges would provide an undue 
competitive advantage for harvesters and could reduce the incentive for 
harvesters to continue to deliver to the traditional port of Kodiak. 
The Council recommended a requirement that all primary and rockfish 
secondary species CQ in the catcher vessel sector be delivered to a 
shorebased processor operating within the geographic boundaries of the 
City of Kodiak. The port delivery requirement is intended to protect 
the fishing community of Kodiak and the traditional shorebased 
processors from changes in the location of shorebased processing 
activities that could occur under the Rockfish Program. This provision 
would ensure that Kodiak processors and the community continue to 
benefit from the fishery. During the 2000 through 2006 period, all 
catch was delivered within Kodiak to shorebased processors; therefore, 
this provision does not represent a change from traditional harvest 
patterns. This proposed rule would define the boundaries of the City of 
Kodiak using the boundary specified by the State of Alaska on the date 
that a final rule, if approved, were published. This method for 
determining the boundary would ensure that the specific geographic 
limits are based on the official source of municipal boundaries and 
that those boundaries would be established on a specific date and would 
not vary over time. Changes in municipal boundaries could complicate 
enforcement of processing provisions.

[[Page 52163]]

    During the development of the Rockfish Program, the Council 
reviewed and considered a range of options to address concerns raised 
by shorebased processors about potential consolidation of processing 
capacity under catch share management and the effects of catch share 
allocations on processing operations. The Council considered management 
measures that included the linkage between shorebased processors and 
catcher vessel cooperatives required under the Pilot Program, regional 
landing requirements, allocations of harvest shares to processors, 
annual cooperative/processor linkages (which may be changed, without 
penalty or forfeiture), and caps on the amount of landings that may be 
processed by any single processor. Ultimately, the Council chose to 
recommend a specific landing requirement within the City of Kodiak and 
processing caps to preserve flexibility for harvesters to deliver to 
multiple markets. The Council's recommendation sought to maintain the 
traditional shorebased processing activity within Kodiak and limit the 
consolidation of processing effort among rockfish processors that could 
be detrimental to existing processors and harvesters.
    Overall, the Council's recommendations were intended to meet goals 
of the Rockfish Program, which include stabilization of the processing 
work force, increasing shoreside deliveries of rockfish, and removing 
of processing conflicts with GOA salmon production. The Council did not 
consider linkages, or allocation of harvesting quota to processors as 
necessary or appropriate to meet the overall goals the Council 
established for the Rockfish Program. The demonstrated ability of 
cooperatives to coordinate with processors under the Pilot Program 
would be expected to continue under the Rockfish Program. These 
relationships have reduced processing capacity conflicts with the 
salmon fishery that is active during summer months, and have provided a 
stable processing workforce by ensuring rockfish deliveries during 
months when other fisheries are less active. Section 2.4.6 of the 
Analysis describes the likely benefits to processing operations under 
the Rockfish Program.

Requirements for Rockfish Cooperatives

    Table 4 details the key requirements of a rockfish cooperative.

      Table 4--Requirements for a Rockfish Cooperative and the Limitations on the Use of CQ by the Rockfish
                                                   Cooperative
----------------------------------------------------------------------------------------------------------------
                                                                                       Catcher/processor vessel
               Requirement                           Catcher vessel sector                      sector
----------------------------------------------------------------------------------------------------------------
(i) Who may join a rockfish cooperative?   Only persons who hold rockfish QS may join a rockfish cooperative.
----------------------------------------------------------------------------------------------------------------
(ii) What is the minimum number of LLP     No minimum requirement.
 licenses that must be assigned to form a
 rockfish cooperative?
----------------------------------------------------------------------------------------------------------------
(iii) Is an association with a rockfish    Yes. By a cooperative. A rockfish QS      No.
 processor required?                        holder may only be a member of a
                                            rockfish cooperative formed in
                                            association with a rockfish processor.
----------------------------------------------------------------------------------------------------------------
(iv) Is a Rockfish cooperative member      No.                                       N/A.
 required to deliver catch to the
 rockfish processor with whom the
 rockfish cooperative is formed?
----------------------------------------------------------------------------------------------------------------
(v) Is there a minimum amount of rockfish  No.
 QS that must be assigned to a rockfish
 cooperative for it to be allowed to
 form?
----------------------------------------------------------------------------------------------------------------
(vi) What is allocated to the rockfish     CQ for rockfish primary species, rockfish secondary species, and
 cooperative?                               rockfish halibut PSC, based on the rockfish QS assigned to all of
                                            the LLP licenses that are assigned to the cooperative.
----------------------------------------------------------------------------------------------------------------
(vii) Is this CQ an exclusive harvest      Yes, the members of the rockfish cooperative have an exclusive
 privilege?                                 harvest privilege to collectively catch this CQ, or a cooperative
                                            can transfer all or a portion of this CQ to another rockfish
                                            cooperative.
----------------------------------------------------------------------------------------------------------------
(viii) Is there a season during which      Yes, any vessel designated to catch CQ for a rockfish cooperative is
 designated vessels may catch CQ?           limited to catching CQ during the season beginning at 1200 hours,
                                            A.l.t. on May 1 through 1200 hours A.l.t. on November 15.
----------------------------------------------------------------------------------------------------------------
(ix) Can any vessel catch a rockfish       No, only vessels that are named on the application for CQ for that
 cooperative's CQ?                          rockfish cooperative can catch the CQ assigned to that rockfish
                                            cooperative. A vessel may be assigned to only one rockfish
                                            cooperative in a calendar year.
----------------------------------------------------------------------------------------------------------------
(x) Can the member of a rockfish           No, only the rockfish cooperative's designated representative, and
 cooperative transfer CQ individually to    not individual members, may transfer its CQ to another rockfish
 another rockfish cooperative without the   cooperative. Any such transfer must be approved by NMFS.
 approval of the other members of the
 rockfish cooperative?
----------------------------------------------------------------------------------------------------------------
(xi) Can a rockfish cooperative in the     N/A.                                      No, sideboard limits
 catcher/processor sector transfer its                                                assigned to a rockfish
 sideboard limit?                                                                     cooperative in the catcher/
                                                                                      processor sector is a
                                                                                      limit applicable to a
                                                                                      specific rockfish
                                                                                      cooperative, and may not
                                                                                      be transferred between
                                                                                      rockfish cooperatives.
----------------------------------------------------------------------------------------------------------------

[[Page 52164]]

 
(xii) Is there a hired master              No, there is no hired master requirement.
 requirement?
----------------------------------------------------------------------------------------------------------------
(xiii) Can an LLP license be assigned to   No. An LLP license can only be assigned to one rockfish cooperative
 more than one rockfish cooperative in a    in a calendar year. A person holding multiple LLP licenses with
 calendar year?                             associated rockfish QS may assign different LLP licenses to
                                            different rockfish cooperatives subject to any other restrictions
                                            that may apply.
----------------------------------------------------------------------------------------------------------------
(xiv) Can a rockfish processor be          Yes.                                      N/A.
 associated with more than one rockfish
 cooperative?
----------------------------------------------------------------------------------------------------------------
(xv) Can an opt-out vessel harvest a       No. An opt-out vessel is any vessel
 rockfish cooperative's CQ?                 named on an LLP license with QS that is
                                            not assigned to a rockfish cooperative.
                                            Opt-out vessels cannot harvest rockfish
                                            primary species or rockfish secondary
                                            species CQ.
----------------------------------------------------------------------------------------------------------------
(xvi) Which members may harvest the rock-  That is determined by the rockfish
 fish cooperative's CQ?                     cooperative contract signed by its
                                            members. Any violations of this
                                            contract by one cooperative member may
                                            be subject to private civil claims by
                                            other members of the rockfish
                                            cooperative. NMFS will not enforce the
                                            cooperative contracts among its
                                            members.
----------------------------------------------------------------------------------------------------------------
(xvii) Does a rockfish cooperative need a  Yes, a rockfish cooperative must have a
 contract?                                  membership agreement, or contract, that
                                            specifies how the rockfish cooperative
                                            intends to harvest its CQ. A copy of
                                            this agreement or contract must be
                                            submitted to NMFS with the
                                            cooperative's application for CQ.
----------------------------------------------------------------------------------------------------------------
(xviii) What happens if the rockfish       A rockfish cooperative is not authorized
 cooperative exceeds its CQ amount?         to catch fish in excess of its CQ.
                                            Exceeding a CQ is a violation of the
                                            Rockfish Program regulations. Each
                                            member of the rockfish cooperative is
                                            jointly and severally liable for any
                                            violations of the Rockfish Program
                                            regulations while fishing under
                                            authority of a CQ permit. This
                                            liability extends to any persons who
                                            are hired to catch or receive CQ
                                            assigned to a rockfish cooperative.
                                            Each member of a rockfish cooperative
                                            is responsible for ensuring that all
                                            members of the rockfish cooperative
                                            comply with all regulations applicable
                                            to fishing under the Rockfish Program.
----------------------------------------------------------------------------------------------------------------
(xix) It there a limit on how much CQ a    Yes, see the Use Cap section of the
 rockfish cooperative may hold or use?      preamble and the proposed regulations
                                            for the provisions that apply.
----------------------------------------------------------------------------------------------------------------
(xx) Is there a limit on how much CQ a     Yes, see the Use Cap section of the
 vessel may harvest?                        preamble and the proposed regulations
                                            for the provisions that apply.
----------------------------------------------------------------------------------------------------------------
(xxi) Is there a requirement that a        Yes, see the Cost Recovery section of
 rockfish cooperative pay rockfish cost     the preamble for the provisions that
 recovery fees?                             apply.
----------------------------------------------------------------------------------------------------------------

[[Page 52165]]

 
(xxii) If my vessel is fishing in a        (A) Any vessel fishing under the
 directed flatfish fishery in the Central   authority of a rockfish CQ permit must
 GOA and I catch groundfish and halibut     count any catch of rockfish primary
 PSC, does that count against the rock-     species, rockfish secondary species, or
 fish cooperative's CQ?                     rockfish halibut PSC against that
                                            rockfish cooperative's CQ from May 1
                                            until November 15, or until the
                                            effective date of a rockfish
                                            cooperative termination of fishing
                                            declaration that has been approved by
                                            NMFS.
                                           (B) Groundfish harvests would not be
                                            debited against the rockfish
                                            cooperative's CQ if the vessel is not
                                            fishing under the authority of a
                                            rockfish CQ permit. In this case, any
                                            catch of halibut would be attributed to
                                            the halibut PSC limit for that directed
                                            target fishery and gear type.
----------------------------------------------------------------------------------------------------------------
(xxiii) Can my rockfish cooperative        The rockfish cooperatives formed under
 negotiate prices for me?                   the Rockfish Program are intended to
                                            conduct and coordinate harvest
                                            activities for their members. Rockfish
                                            cooperatives formed under the Rockfish
                                            Program are subject to antitrust laws.
                                            Collective price negotiation by a
                                            rockfish cooperative must be conducted
                                            in accordance with existing antitrust
                                            laws.
----------------------------------------------------------------------------------------------------------------
(xxiv) Are there any special reporting     Yes. A rockfish cooperative must submit
 requirements?                              an annual rockfish cooperative report
                                            to NMFS by December 15 of each year.
----------------------------------------------------------------------------------------------------------------
(xxv) What is required in the annual       The annual rockfish cooperative report
 rockfish cooperative report?               must include at a minimum:
                                           (A) The rockfish cooperative's CQ,
                                            sideboard limit (if applicable), and
                                            any rockfish sideboard fishery harvests
                                            made by the vessels in the rockfish
                                            cooperative on a vessel-by- vessel
                                            basis;
                                           (B) The rockfish cooperative's actual
                                            retained and discarded catch of CQ, and
                                            sideboard limit on an area-by-area and
                                            vessel-by-vessel basis;
                                           (C) A description of the method used by
                                            the rockfish cooperative to monitor
                                            fisheries in which rockfish cooperative
                                            vessels participated;
                                            (D) A description of any private civil
                                            actions taken by the rockfish
                                            cooperative in response to any members
                                            that exceeded their allowed catch.
----------------------------------------------------------------------------------------------------------------

Transfer of CQ

    A rockfish cooperative could transfer rockfish QS to another 
rockfish cooperative in the same sector. For example, a catcher vessel 
rockfish cooperative could not transfer CQ to a rockfish cooperative in 
the catcher/processor sector. The Council recommended this restriction 
during the development of the Pilot Program to addresses concerns about 
the potential losses of shorebased processing, as well as potential 
employment and tax revenue if catcher/processor rockfish cooperatives 
could receive rockfish harvested with CQ from catcher vessel rockfish 
cooperatives that historically delivered to shoreside processors. The 
Council also recommended that a catcher/processor rockfish cooperative 
could not transfer rougheye or shortraker rockfish CQ to a catcher 
vessel rockfish cooperative. Rougheye and shortraker are managed under 
a maximum retainable amount (MRA) for catcher vessels.
    Transfer of CQ would be valid only during the calendar year of the 
transfer. There would be no restrictions on the number or size of post 
delivery transfers. All post delivery transfers would need to be 
completed by December 31. Vessels in a cooperative could not begin a 
new fishing trip for that cooperative unless the cooperative holds 
unused CQ for all rockfish primary species and secondary species. At 
the end of the calendar year a cooperative could not have a negative 
balance of CQ for any species for which CQ is assigned.
    To standardize the reporting of information, transfers would have 
to be completed using an electronic online transfer application 
available on the

[[Page 52166]]

NMFS Alaska Region Web site at http://alaskafisheries.noaa.gov. A 
rockfish cooperative could only transfer CQ if:
    <bullet> The rockfish cooperative identified the amount and type of 
CQ transferred and the rockfish cooperative and rockfish cooperative 
member to which that CQ was transferred. CQ received by a rockfish 
cooperative would have to be attributed to a member of that rockfish 
cooperative to apply the use caps. See Use Caps section for more 
detail;
    <bullet> The transfer would not cause the receiving rockfish 
cooperative to exceed its use cap limitations. The rockfish cooperative 
would be responsible for ensuring that any transfer does not exceed 
rockfish cooperative use cap provisions; and
    <bullet> All information was certified by the transferor and 
transferee as true, correct, and complete.

Participation in a Rockfish Cooperative or Opt-Out

    Each year, an LLP license holder with rockfish QS would be required 
to assign all the QS associated with that LLP license to a specific 
rockfish cooperative to fish for rockfish primary species. A holder of 
a designated catcher/processor LLP license assigned rockfish QS could 
decide to opt-out of participating in a rockfish cooperative on an 
annual basis.
    An LLP license holder could not assign portions of rockfish QS to 
different rockfish cooperatives within the same sector. Once an LLP 
license and its associated QS are assigned for a year, the LLP license 
holder could not reassign the LLP license or QS to a different 
cooperative during that year. The Council limited the LLP license 
holder to participating in only one cooperative per year to ensure that 
the catch derived from a specific LLP license could be reliably tracked 
and that the applicable cooperative management measures related to 
monitoring and enforcement, any voluntary codes of conduct, and the 
cost recovery requirements would be met.
    Each year, an LLP license holder would be required to apply to use 
the LLP license and its associated QS to participate in a rockfish 
cooperative, or opt-out of participating in rockfish cooperative. 
Applications would be available on the NMFS Web site http://www.alaskafisheries.noaa.gov, or NMFS would mail applications to the 
applicant upon request. Applications would have to be submitted to NMFS 
by mail, fax, or hand delivery (see ADDRESSES). Applications would have 
to be submitted by a designated representative of the cooperative by 
March 1 each year. An eligible rockfish harvester could apply to 
participate in only one cooperative per year with an LLP license and 
its associated QS. The CQ issued under a NMFS approved application 
would be valid for 1 year. The contents of the specific applications 
are described below.

Application for Rockfish CQ

    A designated representative of a rockfish cooperative that submits 
an application that is approved by NMFS would receive a CQ permit. The 
CQ permit would contain the rockfish cooperative's CQ of rockfish 
primary and secondary species and halibut PSC, based on the collective 
QS of the LLP licenses held by the cooperative members. The CQ permit 
also would identify the members of the rockfish cooperative and the 
vessels authorized to harvest the CQ. NMFS would consider a vessel 
named on a CQ permit as actively engaged in fishing the CQ for that 
rockfish cooperative and would be subject to all observers, permitting, 
and reporting requirements applicable to vessels when fishing under the 
cooperative's CQ permit. A rockfish cooperative would be required to 
submit an amended application for CQ to add or remove a vessel eligible 
to harvest the CQ assigned to that cooperative. NMFS would approve any 
amendments to the list of eligible vessels to the application for CQ 
unless otherwise prohibited. NMFS' issuance of a CQ permit to a 
rockfish cooperative, however, would not be a determination that the 
rockfish cooperative was formed or was operating in compliance with 
antitrust laws.
    A complete application would be required to contain the following 
information:
    <bullet> Identification and contact information of the rockfish 
cooperative;
    <bullet> Names of the rockfish cooperative members, including 
information on the LLP licenses assigned to the rockfish cooperative;
    <bullet> A copy of the business license and articles of 
incorporation or partnership agreement signed by the rockfish 
cooperative members;
    <bullet> Processor associates of the cooperative (if a cooperative 
formed with catcher vessel designated rockfish QS), and a requirement 
that LLP license holders affiliated with a processor could not 
participate in price setting negotiations except as permitted by 
general antitrust law;
    <bullet> The proposed fishing plan to be used by members of the 
cooperative, including any proposed cooperative specific monitoring 
procedures and any voluntary codes of conduct that would apply to the 
members of the cooperative, if applicable; and
    <bullet> Signature and certification of applicant(s).

Application to Opt-Out of Rockfish Cooperatives

    An LLP license holder with catcher/processor designated rockfish QS 
would be required to submit an application to opt-out of participating 
in a rockfish cooperative for a fishing year. An application would 
include the following information:
    <bullet> Identification and contact information of the eligible 
rockfish harvester;
    <bullet> Information on the LLP license(s) and vessels that would 
opt-out; and
    <bullet> Applicant's signature and certification.

Removal of the Limited Access Fishery

    The Council recommended eliminating the limited access fishery for 
the catcher vessel sector in the Rockfish Program because almost all QS 
holders joined cooperatives. The very few QS holders that did not join 
catcher vessel cooperatives received very limited amounts of QS. The 
amount of TAC available to the catcher vessel limited access fishery 
was very small in relation to potential harvest capacity during the 
Pilot Program and NMFS has never opened the limited access fishery.
    The Council recommended eliminating the limited access fishery for 
the catcher/processor sector in the Rockfish Program because the 
Analysis showed the limited access fishery created incentives for the 
catcher/processor sector to avoid joining a cooperative. The Central 
GOA limited access fishery under the Pilot Program opened in the 
beginning of July, and then closed when participants were estimated to 
have fully harvested the target rockfish allocations in that fishery. 
The differences in sideboard limitations between catcher/processor 
cooperatives and the limited access fishery as well as the management 
of shortraker rockfish, and the halibut PSC mortality allowance may 
have affected a participant's decision to either join a catcher/
processor cooperative or take part in the limited access fishery. The 
Council discussed an alternative that would keep the limited access 
fishery in the Rockfish Program but ease the management burden with a 
downward adjustment of the MRAs to limit the incentive for participants 
to target secondary species and maintain catch at a level below the 
allocation. But the Council also noted that participants with small 
allocations of QS could choose to fish in the limited access

[[Page 52167]]

fishery and attempt to take a share of the catch greater than their 
individual historical allocation.
    Based on the analysis, the Council recognized that under the Pilot 
Program the limited access fishery functioned more like a cooperative 
than the way it was intended to function as a limited access fishery 
for individual catcher/processor participants. A review of the data 
showed that many participants registered for the limited access 
fishery, but then consolidated onto a few vessels in a cooperative-like 
system. This system of fishing would not be required to follow the 
constraining management provisions (e.g., sideboard limitations and 
secondary species management) that are intended to apply to 
cooperatives. Furthermore, participation in the limited access fishery 
could not be predicted from year to year and the possibility of a 
``race for the fish'' was recognized along with concern that the 
fishery would exceed the TAC before the season could be closed. 
Ultimately the Council opted to discontinue the limited access fishery 
and require catcher/processors to either join a cooperative or opt-out.

TAC Apportionment to an Incidental Catch Allowance (ICA), Rockfish 
Cooperatives, and Entry Level Fishery

    Annually, NMFS would determine the amount of primary species, 
secondary species, and halibut PSC that would be allocated to each 
fishery based on the total amount of QS assigned to each fishery.

Rockfish Primary Species Allocation

    NMFS would calculate the amount of rockfish primary species TAC 
that would be assigned to the Rockfish Program on an annual basis. 
Before NMFS would calculate annual cooperatives allocations for primary 
species within the sectors, NMFS would first deduct the incidental 
catch allowance (ICA). The ICA subtracts from the TAC for that fishery 
an incidental catch of rockfish primary species harvested in fisheries 
other than the Rockfish Program. The ICA accounts for rockfish primary 
species that are incidentally harvested in other fisheries (e.g., trawl 
flatfish fisheries) and NMFS must set aside some bycatch amount for 
those fisheries. On an annual basis, the Regional Administrator 
determines how much ICA is required in other non-target fisheries.
    After deducting the ICA, NMFS would set aside a percentage of the 
TAC for the entry level longline fishery, which allows catcher vessels 
who are not eligible to participate in the Rockfish Program an 
opportunity to harvest rockfish. The amount set aside would be equal to 
the amounts described in Table 10 in the ``Entry Level Longline 
Fishery'' section of this preamble, depending on the year and whether 
90 percent or more of the species was harvested by entry level fishery 
participants the year before.
    Then, for each rockfish primary species, the TAC would be 
apportioned between the catcher/processor sector and the catcher vessel 
sector. The amount of TAC assigned to the catcher/processor sector 
would be determined by multiplying the TAC by the ratio of QS units 
assigned to all LLP licenses that receive QS in the catcher/processor 
sector divided by the QS pool for that primary rockfish fishery. The 
amount of TAC assigned to the catcher vessel sector would be determined 
by multiplying the TAC by the ratio of QS units assigned to all LLP 
licenses that receive QS in the catcher vessel sector divided by the QS 
pool for that primary rockfish fishery.
    LLP licenses assigned to a rockfish cooperative would yield CQ that 
would be based on the sum of all QS units associated with all LLP 
licenses assigned to the rockfish cooperative for a specific rockfish 
primary species. The annual CQ issued to a cooperative would be equal 
to the TAC assigned to that rockfish primary fishery in that sector 
multiplied by the QS units assigned to that cooperative divided by the 
QS pool for that sector in that fishery.
    Opt-out: In the catcher/processor sector, an adjustment to the CQ 
assigned to rockfish cooperatives would be made to account for LLP 
licenses with QS that are not assigned to a rockfish cooperative. The 
QS assigned to LLP licenses that are opting-out in the catcher/
processor sector would not yield any CQ for that LLP holder. Instead, 
the TAC would be assigned to rockfish cooperatives in the catcher/
processor sector. See Table 4 for more information on the use of the CQ 
by a rockfish cooperative.

Rockfish Secondary Species Allocation

    The proposed rule would define rockfish secondary species by 
listing the species that were historically harvested during the Central 
GOA directed rockfish fisheries. Secondary species would be allocated 
as an exclusive harvest privilege only to rockfish cooperatives. 
Rockfish cooperatives would receive CQ for specific secondary species. 
Secondary species allocated as CQ to rockfish cooperatives would be 
allocated differently between cooperatives in the catcher vessel and 
catcher/processor sectors. For participants in a rockfish cooperative, 
NMFS would issue secondary species CQ in relation to the amount of QS 
allocated to an LLP license.
    The secondary species would be treated differently in the catcher/
processor and catcher vessel sectors based on the previous harvest 
patterns in those sectors. Historically, harvesters in both sectors 
tended to retain all sablefish harvested with trawl gear and thornyhead 
rockfish caught in conjunction with rockfish harvests because they were 
high value species. Traditionally, catcher vessels retained Pacific cod 
during the course of their rockfish harvests; however, this was less 
common among catcher/processors. Consequently, the Council recommended 
managing Pacific cod in the catcher/processor sector using an MRA that 
would reflect historic harvest rates but provide more flexibility for 
the fleet than a fixed ``hard cap'' allocation of CQ might provide. 
Similarly, catcher/processors typically had markets for rougheye and 
shortraker rockfish and tended to retain these species in greater 
proportion than catcher vessels, and the Council recommended an 
allocation of these species to catcher/processors. However, the Council 
recommended an MRA for shortraker and rougheye rockfish for the catcher 
vessel fleet that would require the discarding of all shortraker or 
rougheye rockfish if the aggregate shortraker/rougheye MRA limit was 
exceeded. The MRA percentages recommended for the catcher vessel sector 
for shortraker and rougheye rockfish would provide some flexibility for 
the harvesters in these sectors yet maintain harvests within historic 
levels.
    Rockfish cooperative allocations: The Council recommended 
specifying the percentage of the Central GOA TAC for each rockfish 
secondary species in regulation to provide clear allocations. For most 
species, these allocations are based on the average proportion of the 
Central GOA TAC harvested by vessels that were assigned LLP licenses 
during 2000 through 2006 that would be eligible to receive rockfish QS 
in each sector. For catcher/processors, 43.2 percent of the Central GOA 
TAC of shortraker rockfish was harvested using 2000 through 2006 
qualifying years. The Council recommended slightly reducing the 
percentage of the TAC to 40 percent of the Central GOA TAC to provide 
slightly more harvest opportunities for vessels in the catcher vessel 
sector and non-Rockfish Program participants. The Council expressed 
concern that under an average percentage allocation, if all catcher/
processors joined cooperatives, catches by Rockfish Program catcher

[[Page 52168]]

vessels and non-Rockfish Program fisheries could need to be constrained 
to prevent overharvest of the shortraker rockfish TAC.
    The Council also recommended retaining the Pilot Program allocation 
of 58.87 percent of Central GOA TAC for rougheye rockfish. Although 
34.3 percent of the rougheye rockfish catch was retained by vessels 
assigned an eligible catcher/processor LLP license from 2000 through 
2006, the Council sought to ensure that rougheye rockfish catch would 
not unduly constrain catcher/processor cooperatives if a vessel were to 
unintentionally catch relatively large amounts of rougheye rockfish 
while targeting rockfish primary species. The Council determined that 
the allocation percentage available under the Pilot Program had not 
unduly constrained catcher/processor cooperatives and had not resulted 
in overharvest of the stock. These percentages and the details of this 
analysis are contained in section 2.4.1 of the Analysis (see 
ADDRESSES). Table 5 shows the specific secondary species that would be 
allocated as CQ to rockfish cooperatives in the catcher vessel sector 
and catcher/processor sector.

  Table 5--Secondary Species Allocated to Rockfish Cooperatives in the
                      Central GOA by Fishery Sector
------------------------------------------------------------------------
                                    Rockfish              Rockfish
                               cooperatives in the   cooperatives in the
      Secondary species          catcher vessel      catcher/ processor
                                     sector                sector
------------------------------------------------------------------------
Pacific cod.................  3.81% of the Central  Not allocated.
                               GOA TAC.              Managed under an
                                                     MRA of 4.0% per
                                                     trip.
Rougheye rockfish...........  Not allocated.        58.87% of the
                               Managed under an      Central GOA TAC.
                               MRA of combined
                               rougheye/shortraker
                               rockfish up to 2.0%
                               per trip.
Sablefish allocated to trawl  6.78% of the Central  3.51% of the Central
 gear.                         GOA TAC.              GOA TAC.
Shortraker rockfish.........  Not allocated.        40.0% of the Central
                               Managed under an      GOA TAC.
                               MRA of combined
                               rougheye/shortraker
                               rockfish up to 2.0%
                               per trip. A maximum
                               of 9.72% of the
                               shortraker TAC on
                               an annual basis may
                               be retained.
Thornyhead rockfish.........  7.84% of the Central  26.50% of the
                               GOA TAC.              Central GOA TAC.
------------------------------------------------------------------------

     ``Hard cap'' management of shortraker and rougheye rockfish: The 
Council directed that allocations of shortraker and rougheye rockfish 
should be managed as a ``hard cap'' for the catcher/processor sector. 
NMFS has interpreted this provision to mean that NMFS should manage to 
limit the maximum amount of harvests to this amount for all 
participants in that sector. If the catcher/processor sector as a whole 
exceeded either 40.0 percent of the TAC for shortraker rockfish, or 
58.87 percent of the TAC for rougheye rockfish, then NMFS would 
prohibit retention of that species for all catcher/processor vessels in 
the Rockfish Program. This prohibition would include any vessels 
operating in a rockfish cooperative even if that cooperative still had 
unused CQ. The Council also recommended that if the harvest of 
shortraker by the catcher vessel sector exceeded 9.72 percent of the 
TAC (the historic proportion of the shortraker TAC harvested by catcher 
vessels), then NMFS would prohibit further retention for the catcher 
vessel sector. These provisions are intended to ensure that the 
relatively small TACs assigned to these stocks are not subject to 
overharvest. Shortraker and rougheye rockfish would not be allocated to 
the entry level longline fishery, but would be limited to an MRA to 
minimize harvests and the incentive to ``top off'' on these species.
    Entry level longline fishery: QS assigned to the entry level 
longline fishery would not result in an annual exclusive allocation. 
Instead, secondary species would be managed according to an MRA in the 
entry level fishery. A person directed fishing in the rockfish entry 
level longline fishery may harvest secondary species up to the amounts 
of the MRAs for those species.
    Opt-out: LLP license holders that opt-out of participating in a 
rockfish cooperative would not receive exclusive harvest privileges for 
secondary species but vessels fishing under an opt-out license would be 
able to retain secondary species in non-Rockfish Program fisheries, 
subject to an MRA limit. The MRA for the opt-out vessels would be the 
same as MRAs currently applicable in the GOA directed fisheries. Opt-
out vessels could not target Central GOA rockfish; therefore, a lowered 
MRA in the Central GOA is not necessary. Opt-out vessels would not be 
able to use Central GOA rockfish as a source for basis species against 
which to ``top-off'' secondary species.

Maximum Retainable Amounts and Fishing Non-Allocated Groundfish Species

    Some other non-allocated species of groundfish would be encountered 
while fishing under the Rockfish Program and caught as incidental 
catch. All non-allocated secondary species harvested by rockfish 
cooperative vessels would be managed by an MRA. These non-allocated 
species include arrowtooth flounder, deep-water flatfish, shallow-water 
flatfish, flathead sole, rex sole, pollock, the other species category, 
Atka mackerel, other rockfish, aggregated forage fish, and skates. 
Pacific cod would also be managed by an MRA for the catcher/processor 
sector, as well as shortraker and rougheye rockfish for the catcher 
vessel sector. See the section Rockfish Secondary Species Allocation 
for a discussion of Pacific cod, shortraker rockfish, and rougheye 
rockfish MRA management.
    The MRA of an incidental catch species would be calculated as a 
proportion of the basis species, or allocated primary and secondary 
species, retained onboard the vessel by using the percentages described 
in Table 6. The MRA would be a percentage of the total retained 
rockfish primary species and rockfish secondary species onboard the 
vessel.

[[Page 52169]]



    Table 6--Non-Allocated Secondary Species for Rockfish Cooperative
   Vessels in the Catcher Vessel and Catcher/Processor Sectors Fishing
                       Under a Rockfish CQ Permit
------------------------------------------------------------------------
                                                MRA as a percentage of
                                                total retained rockfish
          Incidental catch species                primary species and
                                              rockfish secondary species
                                                          (%)
------------------------------------------------------------------------
Pollock.....................................                       20.0
Deep-Water flatfish.........................                       20.0
Rex Sole....................................                       20.0
Flathead Sole...............................                       20.0
Shallow-water flatfish......................                       20.0
Arrowtooth..................................                       35.0
Other Rockfish..............................                       15.0
Atka Mackerel...............................                       20.0
Aggregated forage fish......................                        2.0
Skates......................................                       20.0
Other Species...............................                       20.0
------------------------------------------------------------------------

    The MRA for groundfish harvested in the Central GOA by a catcher/
processor vessel fishing under a rockfish CQ permit would be calculated 
at the end of each weekly reporting period and is based on the basis 
species harvested since the previous weekly reporting period. If a 
vessel was taking part in another fishery and checked-out of the 
rockfish fishery for some time by a cooperative representative, the MRA 
would be based on the basis species harvested for any portion of a 
weekly reporting period that a vessel fished under a rockfish 
cooperative's CQ permit. The MRA would apply to catcher/processors 
fishing in an area closed to directed fishing for a species or species 
group for the duration of the fishing trip.
    The MRA for catcher vessels fishing in areas closed to directed 
fishing is the lowest MRA applicable in any area, and this MRA would be 
applied at all times and to all areas for the duration of the fishing 
trip.
    To calculate an individual retainable amount, one would multiply 
the retainable percentage for the incidental catch species (Table 6) by 
the basis species onboard the vessel. The MRA for that specific 
incidental catch species would be the sum of the individual retainable 
amount.

Halibut PSC Apportionment to Rockfish Cooperatives

    Under the Rockfish Program, rockfish cooperatives would be 
allocated CQ for halibut PSC that could be used while fishing for 
rockfish primary species or secondary species. Halibut PSC CQ would 
represent the amount of halibut, in metric tons, that could be 
incidentally caught and killed by a rockfish cooperative. Under current 
regulations, halibut can only be harvested and retained commercially 
under the Halibut Individual Fishing Quota (IFQ) and the Western Alaska 
Community Development Quota Program; in all other fisheries halibut is 
considered a prohibited species and must be discarded at sea with a 
minimum of injury.
    NMFS uses the halibut mortality rates established by the 
International Pacific Halibut Commission (IPHC) and observer data to 
estimate the amount of mortality of discarded halibut. The IPHC 
determines the halibut mortality rate for various gears and target 
fisheries based on data from prior years. These halibut mortality rates 
are published in the annual harvest specifications and the 
justification for these rates is published in Appendix A of the annual 
Stock Assessment and Fishery Evaluation Reports. NMFS estimates the 
amount of halibut that is killed in the various groundfish fisheries 
based on data from onboard observers and applies the mortality rate to 
the unobserved portion of the fleet. NMFS then apportions the available 
halibut mortality among fisheries. As halibut is caught, NMFS 
multiplies the estimated halibut caught by the mortality rates to 
produce a halibut bycatch mortality amount.
    NMFS would allocate halibut PSC CQ to rockfish cooperatives within 
a sector based on the QS of LLP licenses assigned to the rockfish 
cooperatives. Halibut PSC CQ would be allocated only to participants in 
rockfish cooperatives.
    Opt-out vessels would continue to be subject to the aggregate 
halibut PSC limits that NMFS establishes for that gear type and target 
fishery.
    Assigning sector Halibut PSC CQ. The Council recommended allocating 
halibut PSC to each sector based on the average total halibut PSC used 
from 2000 through 2006, with a slight reduction in that amount. The 
Analysis (section 2.4.1, see ADDRESSES) shows that participants in 
rockfish cooperatives modified their fishing patterns and reduced 
halibut mortality during the Pilot Program. The Council sought to 
balance the need to provide adequate halibut PSC for use by rockfish 
cooperatives, recognize patterns of reduced halibut PSC use once 
exclusive harvest privileges are established, and meet broader goals to 
reduce halibut mortality. From 2000 through 2006, average halibut PSC 
mortality averaged 84.7 mt in the catcher vessel sector, and 134.1 mt 
in the catcher/processor sector.
    The Council considered a range of alternative approaches that would 
have reduced total halibut PSC CQ assigned to each sector. Ultimately, 
the Council recommended reducing the amount of halibut PSC assigned to 
each sector to 87.5 percent of the 2000 through 2006 average annual 
usage. A total of 117.3 mt would be assigned as CQ to the catcher/
processor sector, and 74.1 mt would be assigned to catcher vessel 
sector. The remaining 27.4 mt (16.8 mt from the catcher vessel sector 
and 10.6 mt from the catcher/processor sector) that would otherwise 
have been allocated using the 2000 through 2006 average use of halibut 
PSC would not be assigned as CQ or as halibut PSC for use by any other 
non-Rockfish Program fishery, and would not be made available for use 
by the halibut IFQ fishery. This 27.4 mt would remain ``in the water'' 
and contribute to the halibut biomass. The Council combined this 
reduction in the amount of halibut CQ initially available to rockfish 
cooperatives with other measures detailed later in this preamble to 
reduce the amount of halibut PSC that can be reassigned to non-Rockfish 
Program fisheries. Combined, these measures effectively reduce total 
halibut mortality in the Rockfish Program.
    NMFS would assign each sector's portion of the halibut PSC among 
the rockfish cooperatives within that sector.

[[Page 52170]]

To determine the CQ assigned to a rockfish cooperative, NMFS would 
multiply the sector's assignment of halibut PSC TAC by the percentage 
of the aggregate rockfish primary species QS held by that cooperative 
in that sector.

Reassignment of Halibut PSC to Non-Rockfish Program Fisheries

    The Rockfish Program would modify a provision from the Pilot 
Program to allow a rockfish cooperative to submit a Cooperative 
Termination of Fishing Declaration prior to the end of the fishing 
season. Once submitted, the primary and secondary rockfish CQ assigned 
to that cooperative would be set to zero, and the cooperative could not 
receive any CQ by transfer after NMFS has approved the termination of 
fishing declaration. NMFS would allow a portion of the halibut PSC CQ 
that was assigned to that rockfish cooperative to become available to 
trawl and non-trawl vessels during the last halibut PSC apportionment 
period of the year (currently November 1 through December 31). Under 
the Rockfish Program, up to 55 percent of any halibut PSC CQ remaining 
in a cooperative's account once a Termination of Fishing Declaration 
has been submitted, or after November 15, whichever occurs first, could 
be reassigned for any vessel to use while fishing during the last PSC 
apportionment period of the year.
    The Council recommended reducing the amount of halibut PSC that 
could be reassigned to the last apportionment period to meet its 
overall goals of reducing halibut mortality, yet provide an incentive 
for participants in rockfish cooperatives to continue to operate in 
ways that minimized halibut mortality. Some of the participants 
eligible for the Rockfish Program are also active in a number of 
flatfish trawl fisheries that occur after November 1. Vessel operators 
that are active in rockfish cooperatives and these flatfish fisheries 
have consistently undertaken efforts to conserve their halibut PSC CQ 
while fishing in a rockfish cooperative to provide additional halibut 
PSC during the latter portion of the year. The Council recognized the 
importance of the reassigned halibut PSC to provide additional harvest 
opportunities in these flatfish fisheries. Typically, most flatfish 
fisheries are not fully harvested relative to their TAC. The Council 
reviewed a range of restrictions on the reassignment of halibut PSC and 
ultimately chose to recommend that no more than 55 percent of any 
unused halibut PSC be reassigned. The Council assessed the amount of 
halibut PSC that is typically used after November 1 and concluded that 
even with a limitation on the maximum amount of halibut PSC that could 
be reassigned, the fleet would continue to have an incentive to 
conserve halibut PSC CQ and have additional harvest opportunities in 
flatfish fisheries. The 45 percent of the unused halibut PSC CQ that is 
not reassigned is not made available as halibut PSC or to the 
commercial halibut IFQ fishery. This amount of halibut is conserved and 
contributes to the halibut biomass. The Rockfish Program would limit 
halibut mortality both by limiting the amount of halibut PSC that is 
initially allocated as halibut PSC CQ and by limiting the amount of 
halibut PSC that may be reassigned. NMFS cannot precisely predict the 
amount of halibut PSC that would be conserved because the amount of 
halibut PSC CQ reassigned would depend on fishing operations during a 
year, and those operations could vary from year-to-year.

Joint and Several Liability

    A rockfish cooperative would not be authorized to harvest fish in 
excess of its CQ. Exceeding a CQ would be a violation. Each member of 
the rockfish cooperative would be jointly and severally liable for any 
violations of the Rockfish Program regulations while fishing under 
authority of a CQ permit. This liability extends to any persons who are 
hired to harvest or receive CQ assigned to a rockfish cooperative. Each 
member of a rockfish cooperative would be responsible for ensuring that 
all members of the rockfish cooperative comply with all regulations 
applicable to fishing under the Rockfish Program.

Use Caps

    The Rockfish Program would apply use caps to limit the amount of 
rockfish QS and CQ that may be harvested by harvesters and processors. 
As with other rationalization programs, the intent of the use caps 
under the Rockfish Program is to limit the degree of consolidation that 
could occur in the Central GOA rockfish fisheries. These use caps would 
balance the goals of improving economic efficiency, maintaining 
employment opportunities for vessel crew, and providing financially 
affordable access opportunities for new participants. NMFS would 
require eligible rockfish harvesters, cooperatives, processors, and 
catcher/processor vessel operators to submit information through the 
annual applications, cooperative transfers, and annual catch reports. 
NMFS would use the information to enforce the use cap provisions, to 
track rockfish primary species QS use, and dissuade eligible rockfish 
harvesters from forming corporate arrangements that would frustrate the 
goal of the use caps. The use caps under the Rockfish Program would 
apply to the rockfish primary species. Use caps would not apply to the 
use of secondary species or halibut PSC.
    There would be four types of use caps: (1) A cap on the amount of 
QS an eligible rockfish harvester could hold; (2) a cap on the amount 
of rockfish primary species CQ that a rockfish cooperative could hold; 
(3) a cap on the amount of rockfish primary species CQ that a vessel 
could harvest; and (4) a limit on the amount of rockfish primary 
species an eligible rockfish processor could receive and process. 
Different use caps would apply depending on whether the QS or CQ are 
for use in the catcher vessel sector or the catcher/processor sector. 
For example, if an eligible rockfish harvester holds an LLP license 
with QS in the catcher vessel sector, then that harvester would be 
subject to a use cap that applies to the holding of QS in that sector. 
If that same eligible rockfish harvester holds a different LLP license 
with QS in the catcher/processor sector, then that holder would have a 
different use cap that would apply to the holding of QS in that sector.

QS Use Caps

    QS use caps would limit the amount of aggregate primary species 
rockfish QS that could be held by an eligible rockfish harvester. These 
QS use caps would be based on the aggregate initial QS pool assigned to 
each sector. An eligible rockfish harvester could not hold more than 4 
percent of the aggregate rockfish primary species QS assigned to the 
catcher vessel sector, or more than 40 percent of the aggregate 
rockfish primary species QS assigned to the catcher/processor sector. 
The Council acknowledged that allowing the fleet to consolidate may 
enable the remaining companies to operate more efficiently. The Council 
also recognized that harvests may be liberally redistributed among 
vessels in cooperatives, and it is likely that gains in efficiency may 
be achieved without further ownership concentration of share in the 
fishery. Consolidation by license transfers may also be limited by the 
caps that apply to the Amendment 80 Program.
    The Council considered that LLP license holders who want to leave 
the fishery would presumably prefer more liberal use caps, which would 
allow them to sell their holdings to the buyer willing to pay the most 
for the harvest privileges. Restrictive caps would

[[Page 52171]]

exclude some buyers from the market, which may reduce sale prices 
relative to the prices that might be possible under more liberal use 
caps. In the catcher vessel sector, up to 7 of the 32 eligible rockfish 
harvesters would exceed the 4 percent use cap based on the 2000 to 2006 
qualifying years. These license holders would not be allowed to 
purchase additional harvest privileges, as long as their holdings 
exceed the cap. In the catcher/processor sector, seven companies hold 
licenses qualifying them for the sector. Depending on the initial 
distribution of QS, it is possible that half of the companies might be 
able to consolidate their QS holdings under a 40 percent cap, before 
the cap would be binding.
    The Official Record would indicate the relative percentage of the 
legal landings in the catcher vessel sector and the catcher/processor 
sector. NMFS would not be able to determine the exact amount of the 
initial QS pool that would be assigned to each sector until the 
applications to participate in the Rockfish Program were processed. 
Therefore, NMFS would determine the number of QS units for the catcher 
vessel sector and catcher/processor sector QS use caps once the 
applications are processed. The QS use cap would be based on a 
percentage of the initial QS pool. NMFS would establish a QS use cap 
that would not fluctuate with the changes in the QS pool that could 
occur due to the resolution of appeals or other operations of law that 
would modify the QS pool. This would provide stability to QS holders.
    NMFS would calculate the amount of QS held by an eligible rockfish 
harvester using the ``individual and collective rule.'' This method is 
similar to one used in the Halibut and Sablefish IFQ Program. NMFS 
would include the sum of all QS held individually by an eligible 
rockfish harvester and the percentage of any holdings used collectively 
by that eligible rockfish harvester through a corporation, partnership, 
or other entity.

CQ Use Caps

    NMFS would apply CQ use caps to eligible rockfish harvesters, 
rockfish cooperatives, and processors. NMFS would apply CQ use caps to 
limit the amount of CQ derived from the QS held by an eligible rockfish 
harvester. For example, an eligible rockfish harvester could not 
harvest an amount of CQ greater than the amount derived from 4 percent 
of the aggregate initial QS pool in the catcher vessel sector, or 40 
percent of the aggregate initial QS pool in the catcher/processor 
sector. An eligible rockfish harvester would be considered to use CQ if 
he or she assigns QS to a rockfish cooperative that results in CQ for 
use by that rockfish cooperative. The amount of CQ that is used by an 
eligible rockfish harvester also would include any CQ a rockfish 
cooperative receives by transfer that is attributed to an eligible 
rockfish harvester. All CQ received by transfer would have to be 
assigned to an eligible rockfish harvester who is a member of that 
cooperative for purposes of calculating use caps. This would limit 
cooperatives to use no more CQ than the maximum amount of CQ that could 
be derived from the maximum amount of QS that could be held by all of 
its members. Therefore, the total CQ usage by an eligible rockfish 
harvester would be the sum of the CQ derived from QS held by that 
eligible rockfish harvester and all CQ attributed to that eligible 
rockfish harvester as a result of a CQ transfer.
    CQ use caps would limit the maximum amount of CQ that could be 
assigned to any one cooperative. NMFS would apply CQ use caps only to 
rockfish cooperatives in the catcher vessel sector. NMFS would apply 
the catcher vessel cooperative use cap as a percentage of the aggregate 
initial QS pool assigned to the catcher vessel sector. Catcher vessel 
rockfish cooperatives would each be limited to harvesting not more than 
30 percent of the CQ allocated to the catcher vessel sector.
    The amount of CQ used by an eligible rockfish harvester would be 
calculated using the ``individual and collective rule.'' An eligible 
rockfish harvester's holding of CQ would include all CQ attributed to 
that individual and the percentage of any CQ attributed to that 
individual through a corporation, partnership, or other entity. 
Therefore, CQ use would include all CQ derived from an eligible 
rockfish harvester's QS holdings, either individually or through 
corporate ownership, and all CQ attributed to an individual as a result 
of an inter-cooperative transfer of CQ.
    NMFS would not apply CQ use caps to cooperatives in the catcher/
processor sector. Although NMFS would not apply a CQ use cap to 
catcher/processor cooperatives, NMFS would limit the maximum amount of 
CQ that could be used on any one catcher/processor vessel.

Vessel Use Caps

    NMFS would limit a vessel participating in the catch vessel sector 
from harvesting more than 8 percent of the CQ of rockfish primary 
species during a calendar year. This cap would ensure that harvest 
activity would not exceed the specified threshold and that a certain 
number of vessels remain active in the fishery. Historically, only a 
few vessels have exceeded the 8 percent cap. As with the Pilot Program, 
NMFS would also limit a vessel participating in the catcher/processor 
sector from harvesting more than 60 percent of the CQ of rockfish 
primary species during a calendar year.

Processing Use Caps

    Processors would be subject to CQ use caps, similar to the Pilot 
Program. NMFS would limit an eligible rockfish processor from receiving 
or processing more than 30 percent of the aggregate rockfish primary 
species harvested with CQ that would be allocated to the catcher vessel 
sector during a calendar year. NMFS would also limit an eligible 
rockfish processor from receiving or processing more than 30 percent of 
Pacific cod and 30 percent of sablefish harvested with CQ assigned to 
the catcher vessel sector during a calendar year. NMFS would apply the 
use cap calculation to all rockfish primary species, Pacific cod, and 
sablefish received by an eligible processor and all fish received by 
any other eligible rockfish processor in which that eligible rockfish 
processor has a 10 percent or greater direct or indirect ownership 
interest. NMFS would apply this more stringent provision to dissuade 
eligible rockfish processors from forming corporate arrangements that 
would further consolidate the already limited number of distinct 
processors and counteract the goal of the use cap, which is to limit 
the degree of consolidation in the fishery.
    Table 7 describes the use cap amounts and limits that would apply 
to eligible rockfish harvesters, rockfish cooperatives, and eligible 
rockfish processors.

                Table 7--Use Caps in the Rockfish Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Entity..........................  Primary species aggregate QS and CQ
                                   use cap based on the initial QS pool
                                   assigned to each sector
                                 ---------------------------------------

[[Page 52172]]

 
                                  Catcher vessel      Catcher/processor
                                   sector              sector
------------------------------------------------------------------------
Eligible rockfish harvester.....  4.0%                40.0%
                                 ---------------------------------------
                                  Primary species aggregate CQ use cap
                                   based on the initial QS pool assigned
                                   to each sector
                                 ---------------------------------------
                                  Catcher vessel      Catcher/processor
                                   sector              sector
                                 ---------------------------------------
Rockfish cooperative............  30.0%               N/A
------------------------------------------------------------------------


Processor.........................      Primary         Pacific cod          Sablefish      N/A
                                        species
                                   --------------------------------------------------------
                                         30.0%             30.0%               30.0%
----------------------------------------------------------------------------------------------------------------
Vessel............................                            8%                            60.0%

Use Cap Exemptions, Grandfather Provisions

    As with other catch share programs in the North Pacific, the 
Rockfish Program would allow those persons whose initial allocation of 
QS and resulting CQ is in excess of the use caps to retain that amount. 
Commonly called ``grandfather provisions,'' these provisions would 
accommodate participants who historically had greater participation in 
the fishery than the use caps would allow. Any person eligible for the 
grandfather provisions would be limited to their initial holdings. If a 
grandfathered eligible rockfish harvester or processor, or owner of a 
catcher/processor vessel transferred an LLP license and its associated 
QS, then the transferee would be limited to the use cap. The 
grandfather provisions would apply only to persons that held QS in 
excess of the use caps prior to the date of final Council action, June 
14, 2010. This provision would reduce the incentive for QS holders to 
further consolidate their holdings after Council action and before the 
implementation of a final rule, if approved. This provision has been 
applied in other North Pacific catch share programs to reduce 
consolidation and ensure adherence to specific use caps. Table 8 
defines the requirements that would apply for qualifying for a 
grandfather provision.

        Table 8--Eligibility Criteria for a Grandfather Provision
------------------------------------------------------------------------
                                   meets the grandfather eligibility
      This entity . . .                  requirements if . . .
------------------------------------------------------------------------
Eligible rockfish harvester..   (1) he or she held LLP license(s) at the
                                time of application to participate in
                                the Rockfish Program that would result
                                in QS or CQ in excess of the use caps;
                                and (2) the LLP license(s) were held by
                                that eligible rockfish harvester prior
                                to June 14, 2010 (the time of final
                                Council action on the Rockfish Program).
Catcher vessel rockfish        it is comprised of members who include
 cooperative.                   eligible rockfish harvesters that meet
                                the grandfather eligibility
                                requirements.
Processor....................  it receives and processes CQ derived from
                                a rockfish cooperative that meets the
                                grandfather eligibility requirements.
Catcher/processor vessel.....  an LLP license used on that vessel prior
                                to June 14, 2010, is assigned QS that
                                results in CQ in excess of the use cap,
                                and the CQ derived from that LLP license
                                is used on that vessel.
------------------------------------------------------------------------

Information Collection and Review Process

    Section 303A(c)(1)(J) of the MSA notes that LAPPs should provide 
for the establishment of an information collection and review process 
to collect the information necessary to determine if any illegal acts 
of anticompetitive practice, antitrust, or related conduct, have 
occurred among persons receiving limited access program privileges. 
NMFS would establish a catch accounting system in the Rockfish Program 
that would allow for the collection of ownership, use caps, and 
landings information. These data can then be used to track and ensure 
that excessive consolidation among the fleet has not occurred and 
participants continue to deliver to different processors. In other 
LAPPs, NMFS has consulted with other federal agencies, including the 
Department of Justice Antitrust Division and the Federal Trade 
Commission, in identifying information that would be helpful in 
detecting antitrust and anticompetitive conduct among privilege 
holders, and would do so here, as well.

Sideboard Provisions

    NMFS expects the Rockfish Program to improve the economic 
efficiency of eligible rockfish harvesters, primarily by encouraging a 
degree of consolidation through the use of rockfish cooperatives. NMFS 
anticipates that rockfish cooperatives would be likely to use fewer 
vessels to harvest the same amount of fish with less cost, resulting in 
greater net profits for rockfish cooperative members. NMFS also 
anticipates that some harvesters could use their vessels and LLP 
licenses to participate in other groundfish fisheries, particularly 
cod, flatfish, and rockfish fisheries in the West Yakutat District and 
Western GOA. With the added economic efficiency likely to be created by 
the Rockfish Program, harvesters could use this economic efficiency to 
offset operational costs in other fisheries, or expand into new 
fisheries. This could economically disadvantage harvesters in these 
other fisheries.
    The Council recommended Rockfish Program elements that would limit 
the ability of rockfish harvesters to expand into other fisheries. 
These types of limitations are included in many of the North Pacific 
rationalization programs and are commonly called ``sideboards.''

[[Page 52173]]

Sideboards would limit the total amount of harvest by eligible rockfish 
harvesters in other fisheries. Sideboards would limit the amount of 
halibut PSC that may be used in certain directed groundfish fisheries. 
Some of the specific sideboard measures in the Rockfish Program would 
prohibit directed fishing for certain groundfish fisheries. Sideboard 
measures would be in effect only during the month of July. 
Traditionally, the Central GOA rockfish fishery was open in July, and 
therefore the sideboards would restrict fishing in other groundfish 
fisheries during the historic timing of the rockfish fishery, but allow 
eligible rockfish harvesters to participate in fisheries before or 
after the historic rockfish season.
    A sideboard would limit both the LLP license with QS assigned to it 
and the vessel on which legal landings were made that could generate 
QS. This provision would restrict an LLP license holder from assigning 
an LLP license to a rockfish cooperative, and using the vessel that 
generated the QS to target other fisheries. Sideboards would apply to 
Federally permitted vessels fishing in Federal waters and waters 
adjacent to the Central GOA when the harvest of rockfish primary 
species by that vessel is deducted from the Federal TAC. The opening of 
a State water fishery in concurrence with the Federal fishing season is 
commonly known as a parallel fishery. The State opens a parallel 
fishery to accommodate harvesters as they target fish stocks that 
freely move between State and Federal jurisdictions. The State opens 
the parallel fisheries through emergency order by adopting the 
groundfish seasons, bycatch limits, and allowable gear types that apply 
in the adjacent Federal fisheries.
    Specific sideboards would apply to specific fishery components in 
the Rockfish Program. The Council recommended a suite of sideboard 
measures to meet two broad, potentially competing, goals: To constrain 
eligible rockfish harvesters from expanding their harvesting capacity 
in other non-Rockfish Program fisheries; and to provide an opportunity 
for harvesters, particularly in the catcher/processor sector, to 
continue to participate in other fisheries they have historically 
fished. Sideboards would fall into two broad categories: Sideboard 
limits that constrain the amount of harvest in specific regions and 
fisheries during July; and directed fishery closures that prohibit 
fishing in specific fisheries and regions during July. The Rockfish 
Program would include three types of sideboards: (1) Catcher vessel 
sideboards, (2) catcher/processor rockfish cooperative sideboards, and 
(3) catcher/processor opt-out sideboards. In addition, if an LLP 
license holder chooses to be exempted from the Rockfish Program, that 
LLP license on which the legal landings were made that could generate 
QS would be exempted from sideboard restrictions.
    The Council reviewed the suite of sideboard measures that were 
applied during the Pilot Program and modified the sideboards that would 
apply under this proposed rule to address changes in fishery management 
measures that have occurred since the implementation of the Pilot 
Program. Specifically, the Council recommended that sideboard measures 
applicable to the catcher vessel sector in this Rockfish Program should 
be simplified to prohibit fishing in specific rockfish fisheries in the 
West Yakutat District and Western GOA, and certain fisheries in the 
deep-water complex. The Council recommended that sideboard measures 
applicable to the catcher/processor cooperative sector in the Rockfish 
Program should be slightly modified from those applicable in the Pilot 
Program.

Catcher Vessel Sideboards

    The Rockfish Program recommended by the Council provides for 
specific sideboard measures for catcher vessels. These sideboard 
measures include prohibitions on catcher vessels engaging in directed 
fishing in specific groundfish fisheries in the GOA. The prohibition on 
directed fishing in the West Yakutat District and the Western GOA 
Pacific ocean perch, northern rockfish, and pelagic shelf rockfish 
during July is based on a review of past participation by the catcher 
vessel fleet. Catcher vessels would be prohibited from directed fishing 
on these rockfish species in these areas because they have not 
historically harvested these species. The Council also recommended that 
catcher vessels would be prohibited from directed fishing in any target 
fishery in the deep-water complex in the month of July (except for 
Central GOA Rockfish). This limitation would prohibit catcher vessels 
from directed fishing in the Arrowtooth flounder, deep water flatfish, 
and rex sole fisheries from July 1 through 31. The Council recommended 
these restrictions to limit the ability of catcher vessels in these 
fisheries because they have not historically harvested these species in 
July.
    The Council also recommended two exemptions from sideboards. The 
first would apply to catcher vessels and LLP licenses that (1) 
generated rockfish legal landings during 2000 through 2006 and in the 
entry level trawl fishery in the Pilot Program during 2007, 2008, or 
2009; and (2) applied to be permanently exempted from the Rockfish 
Program and forego the ability to receive rockfish QS. This limited 
exemption would allow LLP license holders and catcher vessel operators 
who permanently forego their ability to participate in the Rockfish 
Program to be exempted from sideboard restrictions. The Council 
identified at least one vessel operator and LLP license holder who had 
limited participation during the qualifying years for the Rockfish 
Program but who were active in the West Yakutat District and Western 
GOA Rockfish fisheries and, to a limited extent, other flatfish 
fisheries. This exemption would allow the vessel operator and LLP 
license holder to choose either to participate in the Rockfish Program, 
receive rockfish QS, and be subject to sideboard limitations, or to 
forego participation in the Rockfish Program and participate in other 
GOA fisheries without sideboard restrictions.
    The Council recommended a specific exemption from catcher vessels 
that would be otherwise subject to sideboard restrictions in the GOA 
under the American Fisheries Act (AFA). Based on a review of AFA 
sideboard limitations applicable to AFA vessels in the GOA, the Council 
believed the catcher vessels did not need further limits under this 
proposed rule. The Council reviewed AFA sideboard limits during the 
development of the Pilot Program and the proposed Rockfish Program and 
determined that those sideboard limitations effectively constrained AFA 
catcher vessels from expanding their ability to harvest in other 
fisheries. The Council considered that additional sideboard limitations 
under the Pilot Program and this proposed Rockfish Program were 
duplicative. This exemption to sideboard limits is the same as that 
currently applicable under the Pilot Program.

Catcher/Processor Cooperative Sideboards

    The Council recommended sideboard limitations on cooperatives that 
are similar to those in place under the Pilot Program. The Council 
considered public testimony and catch data from the Pilot Program in 
its recommendation. The Council recommended these sideboard limitations 
to minimize potential adverse competition on non-Rockfish Program 
participants and potential conflicts among rockfish cooperatives in the 
Western GOA and West Yakutat District rockfish fisheries, as well as 
specific GOA flatfish fishermen.
    Catcher/processor cooperatives would be subject to a sideboard 
limit in the Western GOA and West Yakutat District rockfish fisheries, 
and a limit on the

[[Page 52174]]

maximum amount of halibut PSC that could be used by that cooperative 
during the month of July.
    The sideboard limit on participants in the Western GOA and West 
Yakutat District rockfish fisheries would be based on the historic 
share of catch for a specific rockfish fishery by catcher/processor 
vessels that generated legal landings that could generate QS under the 
Rockfish Program. The sideboard would be determined by measuring catch 
by these vessels during July from 2000 through 2006, as compared to the 
total harvests by all vessels during this period in the particular 
directed groundfish fishery. This would yield a percentage of the total 
harvests in that directed groundfish fishery. On an annual basis, this 
percentage would be multiplied by the TAC for that directed groundfish 
fishery. This amount would be the sideboard limit. This sideboard 
provision would apply only to Pacific ocean perch, pelagic shelf 
rockfish, and northern rockfish (see ADDRESSES). Other groundfish 
species would not be subject to specific sideboard limits, but would be 
subject to existing management measures such as MRAs. Sideboards are 
intended to limit rockfish participants from exceeding their historic 
levels of participation in a fishery. The Council did not apply 
sideboard limits for other rockfish species because those species were 
not traditionally harvested in July so additional management measures 
were not needed.
    NMFS would establish the sideboard limit for Pacific ocean perch, 
pelagic shelf rockfish, and northern rockfish using the percentage of 
historic harvests of that rockfish species for that sector based on 
calculations in the Analysis prepared for this action. Table 9 displays 
the percentage of the annual TAC assigned as a sideboard limit in the 
Western GOA and West Yakutat District based on the information provided 
in section 2.5 of the Analysis. NMFS would not establish a sideboard 
limit for northern rockfish in the West Yakutat District because the 
fishery was not open for directed fishing during 2000 through 2006.

    Table 9--Catcher/Processor Sideboard Limits by Sector for West Yakutat District and Western GOA Rockfish
----------------------------------------------------------------------------------------------------------------
                                                                        Catcher/processor sector (percent of the
            Management area                         Fishery                               TAC)
----------------------------------------------------------------------------------------------------------------
West Yakutat District.................  Pelagic shelf rockfish........  (Not released due to confidentiality
                                                                         requirements on fish ticket data
                                                                         established by the State of Alaska.)
                                        Pacific ocean perch...........   (Not released due to confidentiality
                                                                         requirements on fish ticket data
                                                                         established by the State of Alaska.)
Western GOA...........................  Pelagic shelf rockfish........  72.3 percent of the TAC.
                                        Pacific ocean perch...........  50.6 percent of the TAC.
                                        Northern rockfish.............  74.3 percent of the TAC.
----------------------------------------------------------------------------------------------------------------

    The sideboard limits would limit the maximum amount of fish that 
the catcher/processor sector could harvest. A specific subset of this 
fixed percentage would be assigned to rockfish cooperatives in the 
catcher/processor sector only. Cooperatives in the catcher/processor 
sector would receive a sideboard limit equal to the percentage of 
rockfish sideboard limit assigned to that cooperative multiplied by the 
total sideboard limit assigned to the catcher/processor sector for a 
species in a specific management area. For example, if 72.3 percent of 
the Western GOA TAC for pelagic shelf rockfish were assigned to the 
catcher/processor sector, and a rockfish cooperative was assigned 10 
percent of the total Pelagic shelf rockfish sideboard limit in the 
Western GOA, NMFS would assign that cooperative 10 percent of 72.3 
percent, or 7.23 percent of the Western GOA TAC for pelagic shelf 
rockfish as a sideboard limit.
    A sideboard limit specified for a catcher/processor cooperative 
would limit only that cooperative. This sideboard limit could not be 
transferred to another cooperative. Table 9 indicates that rockfish in 
the West Yakutat District have been harvested by a limited number of 
vessels, and data on the specific TAC percentage cannot be released due 
to the confidential nature of the catch. Cooperative-specific 
sideboards for the catcher/processor sector would reduce the incentive 
for cooperatives within the catcher/processor sector to race to catch 
the maximum amount allowed under a sideboard limit and potentially 
exceed the TAC established for these species.
    NMFS would also establish a sideboard limit on the amount of 
halibut PSC that could be used in the month of July. The halibut PSC 
sideboard would indirectly limit the harvests of specific groundfish 
flatfish species, primarily flatfish species, that historically have 
been limited not by their TAC, but by halibut PSC.
    NMFS would base the specific halibut PSC sideboard limit, the limit 
on the pounds of halibut PSC allocated to vessels fishing subject to a 
sideboard, on the historic use of halibut PSC in July by vessels in 
each sector. NMFS would establish distinct halibut PSC sideboards for a 
shallow-water species complex and a deep-water complex. Because halibut 
PSC limits in the GOA are established based on fishery complexes based 
on the depth of the targeted groundfish species, the halibut PSC 
sideboard limit for the shallow water complex would be based on average 
halibut PSC by vessels subject to sideboards in the shallow-water 
flatfish and flathead sole fisheries. The halibut PSC sideboard limit 
for the deep-waters species complex would be based on average halibut 
PSC by vessels subject to sideboards in the arrowtooth flounder, deep-
water flatfish, rex sole, and rockfish fisheries.
    NMFS proposes to establish the sideboard limits for the shallow-
water fishery complex and the deep-water fishery complex for the 
catcher/processor sector based on the historic halibut PSC usage 
calculated in the Analysis prepared for this proposed action. The 
percentage assigned as a sideboard limit would be equal to the annual 
average halibut PSC by vessels and LLP licenses subject to the 
sideboard limit during July from 2000 through 2006 in that sector 
divided by the total average halibut mortality assigned to the GOA 
trawl sector during 2000 through 2006. During this time period, the 
average annual halibut PSC was equal to 2,000 mt. Based on these data, 
the deep-water halibut PSC limit assigned to the catcher/processor 
sector is equal to 2.5 percent of the GOA trawl PSC limit established 
in the harvest specifications. The shallow-water halibut PSC limit 
assigned to the catcher/processor sector is equal to 0.1 percent of the 
GOA trawl PSC limit established in the harvest specifications. A 
discussion of the data and analytic process used in the development of 
the

[[Page 52175]]

sideboard amounts is provided in section 2.5 of the Analysis.
    As with the rockfish sideboard limits, NMFS would establish a 
specific subset of the halibut PSC limit to rockfish cooperatives in 
the catcher/processor sector only. Cooperatives in the catcher/
processor sector would receive a portion of the catcher/processor 
sideboard limit equal to the percentage of QS assigned to that 
cooperative in the catcher/processor sector multiplied by the halibut 
PSC limit. For example, if 2.5 percent of the annual GOA Halibut PSC 
trawl limit is assigned to the catcher/processor sector, and a rockfish 
cooperative is assigned 10 percent of the total rockfish QS in the 
catcher/processor sector (i.e., 10 percent of the aggregate rockfish QS 
for Pacific ocean perch, pelagic shelf rockfish, and northern 
rockfish), NMFS would assign that cooperative 10 percent of 2.5 
percent, or 0.25 percent of the GOA halibut PSC trawl limit. A 
sideboard limit specified for a catcher/processor cooperative would 
limit that cooperative. This sideboard limit could not be transferred 
to another cooperative. NMFS would not establish similar sideboard 
limits for cooperatives in the catcher vessel sector.

Catcher/Processor Opt-Out Sideboards

    In addition to the catcher/processor cooperative sideboards, NMFS 
would prohibit any vessel fishing under a catcher/processor LLP license 
with QS that decided to opt-out of participating in a rockfish 
cooperative from (1) directed fishing in any of the primary rockfish 
fisheries in the Central GOA during the calendar year; and (2) directed 
fishing in any GOA groundfish fishery from July 1 through July 14, in 
which that vessel or LLP license does not have prior participation, 
except fixed gear sablefish. Fishing in the first two weeks of July 
would be prohibited because participants would have historically 
participated in the rockfish fisheries during that time.
    The Rockfish Program would define prior participation as having at 
least one landing in a directed GOA groundfish fishery during any 2 
years from 2000 through 2006 during specific time periods in early 
July. This provision is intended to prevent participants with multiple 
licenses and substantial history from opting out of the program with 
one license and entering other fisheries in which the license holder 
has no history. This specific time period during the qualifying years 
corresponds with the weeks in which participants were historically 
active. The specific time periods for each year during which a landing 
could be made are (1) July 9, 2000, through July 15, 2000, (2) July 1, 
2001, through July 7, 2001, (3) June 30, 2002, through July 6, 2002, 
(4) June 29, 2003, through July 5, 2003, (5) July 4, 2004, through July 
10, 2004, (6) July 3, 2005, through July 9, 2005, and (7) July 2, 2006, 
through July 8, 2006.
    For species other than flatfish in a management area (e.g., Western 
GOA or West Yakutat District rockfish), the target fisheries are 
defined based on the specific species that is being targeted. For 
flatfish, the Council recommended a broader definition of a flatfish 
target to accommodate the common practice of catcher/processor vessels 
switching between specific species within the deep-water or shallow 
water complexes within the same weekly reporting period. For example, 
it is common for catcher/processors to target both rex sole and 
arrowtooth flounder, which are species in the deep-water complex, 
during the same weekly reporting period. The Council recommended that 
participation in flatfish fisheries should be based on meeting a 
minimum of 2 years of participation in either the deep-water complex or 
the shallow-water complex fisheries during the 2000 through 2006 weekly 
reporting periods. Specifically, a vessel and its associated LLP 
license would be considered to have participated in the arrowtooth 
flounder, deep water flatfish, and rex sole fisheries if that vessel 
participated in a directed groundfish fishery for any of these three 
fisheries during any 2 years during the 2000 through 2006 qualifying 
periods. Similarly, a vessel and its associated LLP license would be 
considered to have participated in the flathead sole and shallow-water 
flatfish fishery if that vessel participated in a directed groundfish 
fishery for any of these two fisheries during any two years during the 
2000 through 2006 qualifying periods.
    If a sideboarded LLP license or vessel made a landing in a directed 
fishery in any 2 years during these time periods, it could continue to 
directed fish in that groundfish fishery during July 1 through July 14. 
If the vessel or LLP license did not meet these criteria, it could not 
directed fish in that groundfish fishery during July 1 through July 
14--except the fixed-gear sablefish fishery that is managed under the 
existing IFQ program.

Catcher/Processor Sideboards for Non-Amendment 80 Vessels

    General sideboard restrictions under the Pilot Program prohibit 
directed fishing for rockfish primary species in Western GOA, West 
Yakutat District, and adjacent waters to the Central GOA during the 
month of July. The Council motion for the Rockfish Program removes 
sideboard limits for Western GOA and West Yakutat District rockfish 
primary species for all catcher/processor vessels, except for non-
Amendment 80 vessels. The Council initially included this option for 
consideration because of nearly identical sideboard restrictions on 
most eligible license holders from the Amendment 80 program. 
Implemented in 2008, the Amendment 80 program allows eligible members 
of the trawl catcher/processor sector to form cooperatives in the BSAI. 
To limit Amendment 80 vessels to their historical catch in the GOA from 
January 1 through December 31, the Amendment 80 program included 
sideboards for GOA pollock, Pacific cod, Pacific ocean perch, northern 
rockfish, pelagic shelf rockfish, and halibut PSC for Amendment 80 
catcher/processor vessels. Amendment 80 sideboards are based on the 
retained catch of the rockfish species during the entire calendar year, 
while the sideboards for the Pilot Program are based on retained catch 
during the month of July.
    The Council noted that if the Western GOA and West Yakutat rockfish 
sideboards were to be included in the proposed Rockfish Program, 
rockfish eligible license holders that were also Amendment 80 qualified 
would be limited in their catch of Western GOA and West Yakutat 
District rockfish during the month of July by both Rockfish Program 
sideboards and Amendment 80 sideboards. This duplication of Western GOA 
and West Yakutat District rockfish sideboards from the two programs 
would increase the management cost for NMFS and the industry and the 
complexity of these sideboarded fisheries. If the Western GOA and West 
Yakutat rockfish sideboards for the catcher/processor sector in the 
Rockfish Program were removed, most, but not all, of the eligible 
license holders would be limited to their historical catch of rockfish 
primary species during the month of July from Amendment 80 sideboard 
limits. However, two eligible catcher/processor participants in the 
Pilot Program do not qualify for the Amendment 80 program, and 
therefore would not be restricted by Amendment 80 sideboard limits, if 
the Council removed these sideboards in the proposed Rockfish Program. 
So, they would have no sideboards. Historically, the two eligible 
license holders have had very limited catch history in West Yakutat 
rockfish fisheries and no catch history in Western GOA rockfish 
fisheries during the month of July. The licenses do not have Western 
GOA

[[Page 52176]]

endorsements and the limited history in West Yakutat rockfish fisheries 
by these licenses was likely due to the small TACs, which corresponds 
with small sideboard limits of rockfish species in this area.
    NMFS cannot predict whether these two eligible license holders 
would fish in West Yakutat District in the future. Despite the lack of 
history in the West Yakutat and Western GOA rockfish fisheries, these 
eligible licenses could be used to target West Yakutat and Western GOA 
rockfish during the month of July. To limit these participants from 
increasing their effort in Western GOA and West Yakutat rockfish 
fisheries, the Council included a sideboard limit for non-Amendment 80 
licenses. Given these eligible licenses have little or no catch history 
in West Yakutat rockfish fisheries and no history in the Western GOA 
rockfish fisheries, the Council decided the simplest approach was to 
prohibit non-Amendment 80 catcher/processors from participating in the 
West Yakutat and Western GOA fisheries during the month of July. This 
would simplify management by eliminating the need to publish the annual 
sideboard limits for these fisheries and then a closure notice for 
these sideboard fisheries given there would not be a sufficient amount 
of catch available to conduct a directed fishery.

Assigning Sideboards

    If NMFS determines that a specific sideboard limit for a directed 
fishery is small and insufficient to support any retained catch, then 
NMFS may set the directed fishing allowance for that sideboard fishery 
to zero for a particular sector, fishery, or area. This determination 
would be made based on the estimated harvest rates in the fishery, the 
size of the sideboard limit, and whether that limit can support a 
directed fishery. The notification of the directed fishing allowance 
would be established in the harvest specifications that define the 
allocations to the various fishery components.
    After NMFS determines which vessels and LLP licenses would be 
subject to sideboards, NMFS would inform each vessel owner and LLP 
license holder in writing of the type of sideboard limitation, provide 
an opportunity to challenge these findings, and issue a revised Federal 
fisheries permit and/or LLP license that displays the limitation on the 
face of the permit or license.
    A vessel owner or LLP license holder who believes that NMFS has 
incorrectly identified his or her vessel or LLP license as meeting the 
criteria for a sideboard limitation could request reconsideration. All 
requests for reconsideration would have to be submitted in writing to 
NMFS, together with any documentation or evidence supporting the 
request. If the request for reconsideration were denied, NMFS would 
notify the vessel owner or LLP license holder through an IAD. NMFS' IAD 
would indicate discrepancies or deficiencies in the information 
submitted with the evidence or supporting documentation. Affected 
persons could appeal that decision using existing appeals procedures 
(see Sec.  679.43 for additional details). Until final agency action on 
the appeal, NMFS would not reissue that person an LLP license with 
associated QS. This would limit a person from assigning that LLP 
license to a rockfish cooperative.

Management of the Sideboards

    NMFS would manage the sideboards to meet the intent of the Council, 
which is to limit rockfish harvests and halibut PSC during the month of 
July. NMFS would review the sideboard limits for specific fisheries, 
sectors, and regions in the Rockfish Program and would not open a 
fishery if a sideboard limit was not adequate to support harvests. NMFS 
would close fisheries for vessels subject to a sideboard if harvests in 
those fisheries result in the harvest of sideboard species in excess of 
the sideboard limit. NMFS would use the following standards and require 
the necessary monitoring to ensure adequate accounting:
    First, NMFS would require any Rockfish Program vessel subject to 
sideboard limitations operating in the Central GOA, Western GOA, and 
West Yakutat District from July 1 until July 31 to adhere to all catch 
monitoring requirements. This would allow NMFS to assess harvest rates, 
and monitor harvests in that fishery (see the Monitoring and 
Enforcement section of the preamble for more information).
    Second, NMFS would require all vessels subject to a sideboard limit 
to retain all rockfish caught during July 1 through July 31 in the 
Western GOA and the West Yakutat District. NMFS would require vessels 
to retain rockfish regardless of the specific target fishery. The goal 
of the sideboard limit would be to ensure historic harvest levels are 
not exceeded. NMFS would require retention of rockfish harvested 
incidental to other directed fisheries (e.g., Western GOA arrowtooth 
flounder) with Rockfish Program vessel participation, and debit them 
against the sideboard limit applicable to that cooperative. NMFS would 
prohibit vessels from directed fishing in a specific rockfish fishery 
in a specific area for a specific sector, if that sideboard limit is 
reached.
    Third, NMFS would debit all halibut PSC in a sector attributed to 
the shallow-water species complex or deep-water species complex in the 
GOA in July against the shallow-water halibut PSC sideboard or deep-
water halibut PSC sideboard limit, as appropriate, for a cooperative. 
This would ensure that all halibut PSC caught in July is debited 
against the sideboard limit established for the appropriate complex and 
cooperative.
    NMFS would close directed fishing by cooperatives for non-rockfish 
fisheries in specific species complexes once the halibut PSC sideboard 
limit is reached. Specifically, if the halibut PSC limit for the deep-
water complex in a management area is reached, NMFS would close 
directed fishing for arrowtooth flounder, deep-water flatfish, and rex 
sole in that management area. If the halibut PSC sideboard limit for 
the shallow-water complex in a management area is reached, NMFS would 
close directed fishing for flathead sole and shallow water flatfish in 
that management area.
    Fourth, the sideboard limits recommended by the Council that are 
proposed by this action are intended to limit harvests by vessels that 
are harvesting fish allocated under a TAC. NMFS would account for all 
catch by federally licensed vessels in Federal waters and the State 
parallel fishery against the sideboard limit. Additionally, federally 
permitted vessels would be precluded from fishing in the parallel 
fishery during July if the sideboard limit for that fishery is reached 
or the sideboarded fishery is not open. NMFS would not manage the 
activities of non-federally permitted vessels in the parallel fishery 
or in other state-managed fisheries.

Example of Annual Allocations

    The following example details the allocation of TAC and halibut PSC 
within the catcher/processor sector. The calculation method would be 
similar for the catcher vessel sector except that catcher vessels would 
not be able to opt-out of participating in rockfish cooperatives.
    First, an ICA amount would be deducted for bycatch needs in other 
fisheries.
    Second, a percentage of the TAC would be set aside for the entry 
level fishery. This percent may change annually up to the capped amount 
depending on whether 90 percent or more of the entry level TAC was 
caught for each species the previous year. See Table 10.

[[Page 52177]]

    Third, the remaining TAC of each of the three allocated rockfish 
species, Pacific ocean perch, pelagic shelf rockfish, and northern 
rockfish would be allocated to rockfish cooperatives. To simplify the 
example, assume that half the aggregate QS of the three allocated 
rockfish species would be allocated to the catcher/processor sector, 
and half to the catcher vessel sector. Fifty (50) percent of the 
remaining TAC of each of the three allocated rockfish species would be 
allocated to the catcher/processor sector and the other 50 percent of 
the remaining TAC for each of the three species would be allocated to 
the catcher vessel sector.
    Fourth, assume that there are 10 LLP licenses, each with 10 percent 
of the QS assigned to the catcher/processor sector for the three 
allocated rockfish species. Two eligible rockfish harvesters holding 
three LLP licenses would assign those licenses to two different 
rockfish cooperatives. Based on these LLP licenses, each cooperative 
would be assigned 30 percent of the total rockfish primary species QS 
in the catcher/processor sector based on these LLP licenses. Other 
eligible rockfish harvesters holding four LLP licenses would decide to 
opt-out. This represents 40 percent of the total rockfish primary 
species QS in the catcher/processor sector.
    Fifth, NMFS would reassign 100 percent of the TAC assigned to the 
catcher/processor sector to the rockfish cooperatives. This means that 
because each cooperative would be assigned an equal amount of QS, the 
TAC assigned to the catcher/processor sector would be assigned equally 
to each cooperative. The vessels that have opted-out would not be 
assigned any TAC for the rockfish primary species and would be 
prohibited from directed fishing for those species in the Central GOA.
    Sixth, NMFS would determine the amount of CQ for secondary species 
and halibut PSC that would be allocated to the rockfish cooperatives. 
The allocation of CQ for secondary species and halibut PSC would be 
based on the percentage of the primary species QS allocation that would 
be assigned to the rockfish cooperatives in a sector--in the example, 
50 percent of the total QS in the sector. NMFS would allocate each 
rockfish cooperative 50 percent of the total CQ of secondary species 
and halibut PSC that could be allocated to the catcher/processor 
sector.

Entry Level Longline Fishery

    The entry level fishery would continue for harvesters who would be 
directed fishing for rockfish primary species using longline gear only. 
The industry and the Council commonly uses the term ``fixed gear'' to 
describe this fishery. However, NMFS notes that the regulatory text 
under Pilot Program as well as the proposed regulatory text for the 
Rockfish Program refer to the entry level ``longline'' fishery, not 
fixed gear, but is meant to be the same non-trawl fishery. Longline 
gear includes hook-and-line, jig, troll, and handline. Any vessel or 
gear type exempt from Central GOA LLP requirements (vessels that do not 
exceed 26 feet in length overall in the GOA or vessels that are using 
jig gear with less than 5 jigging machines, no more than 30 hooks per 
line and 150 hooks in total), or any holder of a Central GOA longline 
LLP license may enter a vessel in the entry level longline fishery. The 
start date for the entry level longline fishery would be January 1 of 
each year, and participants would not be required to apply annually. 
The Council discussed whether to require an annual application as was 
previously required under the Pilot Program when the entry level 
fishery included trawl and longline gear, but determined that the lack 
of registration may actually improve entry into these fisheries by 
removing an application deadline that would prevent a vessel from 
entering the fishery mid-season. Therefore, participants in the entry 
level longline fishery would not be required to submit an annual 
application in order to take part in the fishery. If a longline gear 
participant targets rockfish primary species in the Central GOA, then 
the catch would be deducted from the entry level longline TAC. If the 
longline participant is not directed fishing for rockfish primary 
species, and instead targets a different species such as Pacific cod, 
then the catch would be deducted from the ICA.
    The entry level longline fishery would have a smaller initial TAC 
than was initially allocated in the Pilot Program. The smaller TAC 
allocation would be more in line with historical catch rates among the 
longline sector in the entry level fishery, since the sector has had 
minimal participation in the fisheries. Under the Pilot Program, 
longline harvests never exceeded one percent of the TAC for any of the 
target species during the qualifying years. Some longline fishermen who 
have small vessels and do not qualify for the Rockfish Program continue 
to express an interest in prosecuting the entry level fishery. Most 
have testified to the Council that they would participate primarily in 
the summer months when the weather is the best, allowing the fleet to 
more safely target these offshore rockfish. If some participants are 
successful in the fishery, additional entry can be expected, but NMFS 
cannot predict the potential success of these efforts.
    The TAC for the entry level longline fishery would increase in a 
following year if most or all of the apportioned TAC in the fishery is 
caught. The set aside allocation for the entry level longline fishery 
would allow for a predetermined amount of rockfish primary species for 
the 2012 season that would increase incrementally each season if the 
sector harvests 90 percent or more of the allocation of a species. The 
incremental increase would continue each year until it reaches the cap 
set for the maximum percent of the TAC for that species. Table 10 shows 
the 2012 initial allocations for each rockfish primary species, the 
incremental increase for future seasons, and the cap for the entry 
level longline fishery.

                                Table 10--Entry Level Longline Fishery Allocation
----------------------------------------------------------------------------------------------------------------
                                                                      Incremental increase per
        Rockfish primary species           2012 Initial allocation      season if  >= 90% of     Up to maximum %
                                                                       allocation is harvested        of TAC
----------------------------------------------------------------------------------------------------------------
Pacific ocean perch....................  5 metric tons.............  5 metric tons.............               1%
Northern rockfish......................  5 metric tons.............  5 metric tons.............               2%
Pelagic shelf rockfish.................  30 metric tons............  20 metric tons............               5%
----------------------------------------------------------------------------------------------------------------

    The mechanism expressed in Table 10 increases the annual 
allocations as the sector grows. If the sector does not catch 90 
percent or more of the TAC, then the allocation for the next year would 
be the same as the previous year. This process could help prevent 
unharvested portions of the TAC, which would occur

[[Page 52178]]

if the allocation to the longline sector was disproportionate to their 
catches.
    Catcher vessels fishing under a CQ permit would be allowed to 
participate in the entry level longline fishery as long as the catcher 
vessel cooperative's designated representative submits a check-out 
report for the vessel. (see Application of Monitoring Requirements for 
Vessels for information on check-out procedures). Unlike catcher 
vessels fishing in cooperatives, participants in the entry level 
longline fishery may deliver their harvest to any shorebased processing 
facility in any community and are not restricted to delivery to a 
Kodiak processor. The Council noted that a requirement to deliver 
within the boundaries of Kodiak might discourage potential participants 
from attempting to develop the entry level longline fishery. The 
longline sector consists of relatively small vessels and the Central 
GOA extends to areas that are distant from Kodiak, but close to other 
ports such as Homer and Seward. Requiring entry level participants to 
comply with a landing requirement within the boundaries of Kodiak might 
present too great of an expense for the participants and expose 
participants to unacceptable safety risks.

Monitoring and Enforcement

    Monitoring provisions would be necessary for accurate catch 
accounting and to monitor compliance with the Rockfish Program to 
ensure that rockfish QS holders maintain catches with annual rockfish 
CQ allocations, rockfish sideboard limits, and use caps. Monitoring and 
enforcement in the proposed Rockfish Program would be similar to 
monitoring and enforcement under the Pilot Program. The primary tools 
for monitoring would include (1) requiring observers aboard vessels 
operating in a rockfish cooperative or a rockfish sideboard fishery, 
(2) requiring that vessels participating in a rockfish cooperative or a 
rockfish sideboard fishery carry and use a NMFS-approved vessel 
monitoring system (VMS) transmitter, (3) requiring that catcher/
processors in a rockfish cooperative or rockfish sideboard fishery 
follow specified catch handling procedures prior to processing, (4) 
requiring the weighing of all catch from rockfish cooperatives on NMFS 
or State approved scales, and (5) requiring that shoreside processors 
receiving rockfish CQ operate under NMFS approved CMCPs. Vessels 
participating in the entry level longline fishery would not be subject 
to specific Rockfish Program monitoring requirements, but would be 
subject to any applicable requirements as a result of participation in 
other fisheries. NMFS welcomes comment on any of the monitoring aspects 
of the Rockfish Program.

Application of Monitoring Requirements for Vessels

    NMFS would require that owners and operators of all catcher vessels 
and catcher/processors harvesting under a cooperative CQ permit comply 
with the applicable observer and VMS requirements while fishing. In 
addition, NMFS would require that all vessels harvesting under a CQ 
permit or operating under a catcher/processor rockfish sideboard while 
fishing in July meet catch handling and catch weighing procedures to 
ensure proper accounting of catch.
    Similar to the current Pilot Program, NMFS is proposing to 
establish a check-in designation procedure for a vessel that will fish 
under the authority of a CQ permit. This procedure would be necessary 
because vessels fish in the Rockfish Program fisheries, and non-
Rockfish Program fisheries (e.g., pollock, Pacific cod, and various 
flatfish fisheries) that do not require the same catch monitoring 
provisions. The designated representative of a rockfish cooperative 
would be required to designate any vessel that intends to fish under 
the rockfish cooperative's CQ permit through a check-in procedure 
before that vessel may fish under that CQ permit. The designated 
representative for a rockfish cooperative must submit a check-in form 
for a vessel to NMFS at least 48 hours prior to the time the vessel 
would begin a fishing trip under a CQ permit. This check-in would 
provide adequate time for NMFS to properly track and account for catch 
against a cooperative CQ permit. A check-in designation for a vessel is 
effective at the beginning of the first fishing trip after the 
designation has been submitted.
    NMFS would require that the designated representative of a rockfish 
cooperative specify any vessel that is no longer fishing under a CQ 
permit for that rockfish cooperative through a check-out procedure. A 
check-out report would need to be submitted within 6 hours after the 
effective date and time the rockfish cooperative ends the vessel's 
authority to fish under the CQ permit. A check-out designation would be 
effective at the end of a complete offload. If the vessel were fishing 
under a CQ permit for a catcher/processor cooperative, a check-out 
designation would be effective on the date at the end of the week as 
reported in a production report, or the end of a complete offload, 
whichever occurs first.
    The proposed Rockfish Program includes several changes to the 
check-in and check-out procedures of the current Pilot Program. First, 
NMFS would require that the designated representative of the rockfish 
cooperative submit a vessel check-in or check-out report 
electronically, rather than by fax or email. The designated 
representative would need to certify that all information is true, 
correct, and complete. This procedure would ensure more timely 
collection of information. Second, NMFS would no longer limit or cap 
the number of check-in or check-out procedures for a vessel allowed in 
a season. NMFS would not need to limit check-in or check-out status to 
track vessels because the proposed electronic submission of the check-
in and check-out report would efficiently facilitate tracking of vessel 
status.
    NMFS would not require vessel operators to meet the monitoring 
provisions applicable to rockfish cooperatives once NMFS approves a 
Declaration of Termination of Fishing. Once this declaration is made, 
the CQ issued to that rockfish cooperative would be set to zero for all 
rockfish primary species, secondary species, and halibut PSC, and that 
cooperative could no longer receive CQ by transfer. This declaration 
procedure could occur after the cooperative has transferred its CQ to 
another cooperative, thereby limiting the loss of any unused CQ. A 
portion of any unused halibut CQ could be reassigned for use in other 
non-Rockfish groundfish fisheries as described under the Transfer of CQ 
section of this preamble.

Observer Coverage for Rockfish Cooperatives

    Observers would be required aboard vessels participating in the 
Rockfish Program to adequately account for catch and bycatch in the 
fishery. NMFS must maintain timely and accurate records of harvest in 
fisheries with small allocations that are harvested by a fleet with a 
potentially high harvest rate. Ensuring adequate observer coverage 
would be particularly important for monitoring the complex suite of 
NMFS-managed quota allocations. Observer coverage would be essential to 
monitor halibut mortality rates in the fishery and ensure that a 
rockfish cooperative does not exceed its halibut PSC allocation.
    Observer coverage issues were outlined in the Analysis prepared to 
support this action (see ADDRESSES for more information). NMFS would 
require 100-percent observer coverage for vessels fishing under a 
catcher vessel CQ permit. For catcher/processors, the level and type of 
observer coverage

[[Page 52179]]

proposed under the Rockfish Program follows models that have been 
developed for monitoring catcher/processor vessels under the Amendment 
80, American Fisheries Act (AFA), and Community Development Quota 
programs. Catcher/processors fishing under the authority of a rockfish 
CQ permit would be required to carry two observers, and at least one of 
these observers must be lead level 2 certified. This proposed rule 
would mirror the observer coverage requirements established under the 
Pilot Program. The specific level of observer coverage required for 
catcher/processor vessels and catcher vessels is detailed in Table 11. 
Generally, observer coverage is greater for catcher/processors than 
catcher vessels due to the nature of shipboard operations and the 
difficulty for one observer to adequately monitor catch. Unless noted, 
the Rockfish Program would not affect existing observer coverage 
requirements that may apply to a vessel or processor when they are 
engaged in non-Rockfish Program fisheries.
    Observer coverage under the Rockfish Program would maintain 
existing standards for observer workload restrictions for catcher/
processors (see Sec.  679.50 for more details on workload regulations). 
Additionally, regulations would clarify that observer coverage for 
catcher vessels required to monitor harvests would be separate from 
observer requirements in other fisheries. This provision would ensure 
that observer coverage necessary to meet the catch accounting and 
monitoring for the Rockfish Program would not affect observer coverage 
applicable for other non-Rockfish Program fisheries.

Observer Coverage for Sideboard Fisheries

    NMFS would require observers on all catcher/processors subject to 
sideboard limits during July. This would help to ensure that vessels do 
not exceed the sideboard limits. Cather/processors assigned to a 
rockfish cooperative would receive a rockfish cooperative specific 
sideboard limit that could not be exceeded. NMFS proposes observer 
coverage that would ensure that these vessels do not exceed their 
specific limit. The sideboard limits established for a rockfish 
cooperative for the Western GOA and West Yakutat District rockfish 
fisheries are likely to be small relative to potential harvest rates 
and would need to be intensively managed to ensure adequate catch 
accounting and avoid exceeding sideboard limits. Additionally, the 
sideboard limits that would be established for halibut PSC in the deep-
water and shallow-water fishery complex would need to be managed based 
on data gathered by observers. These halibut PSC limits are small 
relative to potential halibut PSC rates. NMFS would not require 
additional observer coverage for managing sideboard limits in the West 
Yakutat District, Central GOA, or Western GOA after July 31. Vessels 
fishing under a CQ permit in the Central GOA after July 31 would still 
be subject to any applicable additional observer requirements 
established under the Rockfish Program.
    Catcher/processor opt-out vessels would be subject to less 
restrictive sideboard limits. Opt-out vessels would be assigned a 
Western Yakutat District, and Western GOA rockfish and GOA halibut PSC 
sideboard limit that would be managed by NMFS. This would allow NMFS to 
close a sideboard limit to these vessels if it appeared that the 
sideboard limit would not support directed fishing, therefore catch may 
be monitored with less observer coverage than applicable to catcher/
processors assigned a cooperative-specific sideboard limit.

Observer Communication System

    To ensure timely collection of data, NMFS would require that 
catcher vessels less than 125 feet (metric equiv.) length overall 
install and maintain a computer for use by an observer when the vessel 
is required to meet observer coverage requirements for the Rockfish 
Program. This would include all catcher vessels fishing under a 
rockfish CQ permit. Alternatively, vessels that already have computers 
meeting NMFS specifications could provide the observer access to that 
computer. NMFS would install custom software on each of these 
computers. This software would allow the vessel's observer to enter and 
edit data that could be transferred to a disk and sent electronically 
to NMFS from a shore based computer. These requirements mirror 
regulations already in place for catcher vessels in the Pilot Program.
    Currently, all vessels that carry an observer 100 percent of the 
time as well as all shoreside and stationary floating processors 
required to have an observer present are required to maintain a 
computer for use by an observer as part of the Observer Communication 
System (OCS). The OCS was implemented in 1995 and is comprised of (1) 
electronic hardware that meets NMFS specifications and is supplied by 
the vessel, shoreside, or stationary floating processor, and (2) 
dedicated software provided by NMFS. This hardware and software allow 
observers to communicate with, and transmit data to, NMFS.
    Although a component of the OCS allows observers to communicate 
with and transmit data directly to NMFS, all participating catcher 
vessels that are not currently required to carry an observer 100 
percent of the time (those less than 125 feet length overall) would 
only be required to provide the computer component of the OCS. This is 
because these vessels make short duration trips and, at this time, the 
costs of requiring communications equipment outweigh the benefits of 
increased timeliness of data transmission.
    NMFS anticipates that enabling observers to enter and send their 
data electronically would result in significant reductions in the time 
required to provide data to NMFS and rockfish cooperative managers. 
Under the Rockfish Program, vessels and rockfish cooperatives would be 
required to monitor their catch and stop fishing when target and PSC 
allocations are reached. For catcher vessels, target species would be 
required to be retained and delivered to a shore based processor where 
they can be weighed and accounted for on a trip by trip basis. 
Information on these species would be available within 2 to 3 days of 
delivery. However, halibut would be required to be returned to the sea 
with minimal injury and catch accounting would be based on expanded 
observer samples. Observer data from vessels are faxed to NMFS, 
keypunched by NMFS staff, and typically made available within a few 
days of receipt. However, observers are often not able to fax their 
data from the current trip. Rather, NMFS staff typically receives data 
from the previous trip. Altogether, delays with faxing data could 
result in up to 2 weeks' delay in making data available to rockfish 
cooperative and NMFS managers. When seasonal catch amounts are near 
allocation limits, vessels' departures could be delayed until halibut 
PSC data become available.
    Data entered electronically by observers also result in significant 
improvements to overall data quality. Custom software provided by NMFS 
has several built-in data checking functions that will not allow some 
erroneous information to be entered and automatically checks for likely 
keypunch errors. Additionally, NMFS staff that identifies data errors 
may be able to resolve these errors quickly by working with the 
observer. This could result in improved management decisions by 
rockfish cooperatives and NMFS managers. The computer hardware and 
software requirements are specified in Sec.  679.50.

[[Page 52180]]

    Table 11 summarizes the observer requirements for the Rockfish 
Program. Unless noted, the Rockfish Program would not affect existing 
observer coverage that may apply to a vessel or processor that is 
engaged in non-Rockfish Program fisheries, for example, directed 
Pollock fishery.

    Table 11--Proposed Observer Requirements in the Rockfish Program
------------------------------------------------------------------------
          Component                Requirement         When applicable
------------------------------------------------------------------------
A catcher/processor fishing   Must have aboard at   This coverage
 in a rockfish cooperative .   least two observers   requirement would
 ..                            for each day that     begin on May 1 for
                               the vessel is used    all vessels
                               to harvest,           harvesting CQ for a
                               process, or take      rockfish
                               deliveries from a     cooperative and end
                               catcher vessel        on November 15, or
                               under a CQ permit.    upon NMFS approval
                               At least one of       of a Declaration of
                               these observers       Termination of
                               must be endorsed as   Fishing by the
                               a lead level 2        rockfish
                               observer. More than   cooperative.
                               two observers are
                               required if
                               observer workload
                               restrictions would
                               preclude adequate
                               sampling.
A catcher/processor assigned  Must have aboard at   This coverage
 to a rockfish cooperative     least two observers   requirement would
 and subject to sideboard      for each day that     begin on July 1 for
 limits during the month of    the vessel is used    all vessels
 July.                         to harvest,           participating in
                               process, or take      groundfish
                               deliveries from a     fisheries except
                               catcher vessel. At    fixed gear
                               least one of these    sablefish in the
                               observers must be     West Yakutat
                               endorsed as a lead    District, Central
                               level 2 observer.     GOA, and Western
                               More than two         GOA and end on July
                               observers would be    31.
                               required if
                               observer workload
                               restrictions would
                               preclude adequate
                               sampling.
A catcher/processor opt-out   Must have aboard at   This coverage
 vessel that is subject to     least one observer    requirement would
 sideboard limits during the   for each day that     begin on July 1 for
 month of July . ..            the vessel is used    all vessels
                               to harvest,           participating in
                               process, or take      groundfish
                               deliveries from a     fisheries except
                               catcher vessel.       fixed gear
                                                     sablefish in the
                                                     West Yakutat
                                                     District, Central
                                                     GOA, and Western
                                                     GOA and end on July
                                                     31.
A catcher vessel fishing in   Must have an          This coverage
 a rockfish cooperative . ..   observer aboard at    requirement would
                               all times the         begin on May 1 for
                               vessel is used to     all vessels
                               harvest fish under    harvesting CQ for a
                               a CQ permit. The      rockfish
                               vessel must provide   cooperative and end
                               a computer for use    on November 15, or
                               by the observer for   upon NMFS approval
                               electronic data       of a Declaration of
                               entry.                Termination of
                                                     Fishing by the
                                                     rockfish
                                                     cooperative.
------------------------------------------------------------------------
A catcher vessel fishing in    No additional requirements established by
 the entry level longline      the Rockfish Program. Subject to observer
 fishery.                             provisions at 50 CFR 679.50.
------------------------------------------------------------------------

Vessel Monitoring System (VMS)

    As is required for many other rationalization programs in the North 
Pacific, most vessels participating in the Rockfish Program would be 
required to install, maintain, and operate a VMS while fishing. A VMS 
allows NMFS to track a vessel's location, providing useful enforcement 
information and safety benefits by providing additional information 
during search and rescue operations. Currently, a VMS is required for 
any vessel with a Federal fisheries permit endorsed for Pacific cod, 
pollock, or Atka mackerel that is operating in any reporting area off 
Alaska when the fishery for which the vessel is endorsed is open. VMS 
is also required for vessels operating in the AFA fishery and BSAI Crab 
Rationalization Program. The Rockfish Program would extend existing VMS 
coverage to any vessel with a Federal fisheries permit endorsed for a 
Rockfish Program fishery and would require that those vessels have a 
transmitting VMS on board at all times when operating off Alaska when 
the Rockfish Program fishery for which they are endorsed is open. Non-
trawl vessels participating only in the entry level longline fishery, 
for example longline vessels targeting Pacific ocean perch, would be 
exempted from the new VMS requirements but would still be required to 
use a VMS if endorsed for other species/gear combinations for which VMS 
is required. For example, vessels that participate in cooperatives and 
the entry-level longline fishery would still be required to use VMS 
because VMS is required for vessels participating in a cooperative. The 
existing VMS requirements are detailed in Sec.  679.28(f).
    The Rockfish Program would require that all vessels operating in a 
rockfish catcher vessel or catcher/processor cooperative use a VMS. The 
Analysis prepared for this action (see ADDRESSES) indicated that all 
the vessels that have legal landings in the Central GOA rockfish 
fishery are currently required to use a VMS. A VMS would not be 
required for vessels fishing in the longline portion of the entry level 
fishery. The Analysis prepared for the Rockfish Program indicates that 
there is likely to be relatively little participation by longline 
vessels in the entry level fishery. The Council recommended that 
longline entry level vessels would be exempt from the VMS requirements 
that apply to other vessels in the Rockfish Program. This exemption is 
applicable only to the Rockfish Program. If entry level vessels are 
required to use VMS for other fisheries in the GOA, then those VMS 
requirements would continue to apply.

Special Catch Handling Requirements for Catcher/Processors

    NMFS recognizes that there would be a strong incentive for Rockfish 
Program participants to under report the amount of halibut caught as 
bycatch. Halibut PSC may not be retained by the vessel and thus has no 
economic value. However, it is quite possible that the lack of 
sufficient halibut PSC could limit the amount of rockfish primary 
species and rockfish secondary species harvested by Rockfish Program 
participants and under reported halibut PSC could potentially allow the 
under reporting vessel or rockfish cooperative to harvest a larger 
amount of target species. Lack of sufficient halibut PSC CQ could limit 
the ability of rockfish cooperatives to fully harvest their CQ for 
rockfish primary species and

[[Page 52181]]

secondary species. The special catch handling requirements proposed 
under the Rockfish Program mirror those implemented under the Pilot 
Program and those already established for catcher/processors operating 
under the Amendment 80 Program.
    Both catcher vessels and catcher/processor vessels would be 
monitored to ensure proper compliance with all reporting requirements. 
However, the opportunity to under report halibut PSC would be greater 
on catcher/processor vessels than catcher vessels due to the placement 
of observer sampling stations and construction of the vessels. These 
factors reduce the ability for observers to adequately monitor the 
passage of fish, particularly halibut PSC, from the net through the 
processing facilities. In order to ensure proper catch accounting on 
catcher/processors, NMFS has developed a set of special catch handling 
requirements for catcher/processors assigned to a rockfish cooperative. 
The procedures proposed for the Rockfish Program are similar to those 
currently required for the Pilot Program with some modifications to 
accommodate a CMCP specialist at shorebased facilities. In brief, these 
special catch handling requirements would require the vessel owner or 
operator to ensure:
    <bullet> No fish remain on deck unless an observer is present, 
except for fish that spilled outside the codend;
    <bullet> The vessel has no more than one operational line or other 
conveyance for the mechanized movement of catch between the scale used 
to weigh the catch bins and the area where the observer collects 
species composition samples; and
    <bullet> All crew activities within any bin or tank are observed 
and monitored prior to the observer sampling unsorted catch.
    A vessel owner or operator of a catcher/processor may facilitate 
observation and monitoring of crew activities within a bin or tank by 
one of three options:
    1. Prohibit crew members from entering bins unless the observer is 
able to monitor all crew activities within the bin;
    2. Install viewing ports in the bins; or
    3. Install video monitoring system in the bins.
    Each vessel participating in a Program fishery must choose one of 
these options.
    Vessel owners or operators who choose the first option would need 
to ensure that crew members do not enter a bin when fish are moving out 
of the bin, unless the observer has been given a chance to observe the 
activities of the crew inside the bin. However, NMFS acknowledges that 
a crew member may be required to be inside the bin to facilitate the 
movement of fish from the bin. For that reason, crew members would be 
allowed inside bins if the flow of fish has been stopped between the 
tank and the location where the observer collects unsorted catch, all 
catch has been cleared from all locations between the tank and the 
location where the observer collects unsorted catch, and the observer 
has been given notice that the vessel crew must enter the tank. When 
informed by an observer that all sampling has been completed for a 
given haul, crew would be able to enter a tank containing fish from 
that haul without stopping the flow of fish or clearing catch between 
the tank and the observer sampling station. Vessel operators may be 
able to use water to facilitate the movement of fish in some fisheries. 
However, industry members have indicated that water may degrade the 
quality of fish, which could decrease the value of these fish. 
Therefore, NMFS has developed the proposed options to allow a person to 
see inside the bin while fish are exiting the bin, and ensure that 
presorting activities are not occurring.
    Vessel owners or operators who choose the second option would be 
required to provide a view into the bin. The observer must be able to 
see all actions of the crew member inside the bin from the same 
position where they are conducting their normal sampling duties. For 
example, while the observer is sorting catch at the observer sample 
station table, crew member activities inside the bin must be viewable 
by the observer from the sample station table. This option would be 
acceptable for vessels that may not need a crew member in the bin 
frequently or have uniformly shaped bins and an observer sampling 
station in proximity to the bin area.
    Vessels owners or operators who choose the third option would be 
required to develop and install a digital video monitoring system. The 
system would include a sufficient number of cameras to view all 
activities of anyone inside the bin. Video cameras would be required to 
record images in color and in low light conditions. To ensure that an 
observer can monitor crew member activities in the bin while sampling, 
a color monitor would be required to be located in the observer 
sampling station. An observer would be given the opportunity to review 
any video data at any time during a trip. Each video system would be 
required to provide enough storage capacity to store all video data for 
an entire trip. Because NMFS may not be aware of potential presorting 
violations until after an observer disembarks the vessel and is 
debriefed, the vessel must retain all data for a minimum of 120 days 
from the beginning of each trip unless notified by NMFS that the data 
may be removed. Specific requirements for cameras, resolution, 
recording formats, and other technical information is detailed in 50 
CFR 679.28(i).
    If at any time during a trip, the line of sight or video options do 
not allow an observer to monitor crew activities within the fish bin or 
do not meet the required specifications, the vessel must revert to the 
first option and prohibit crew from entering the bin. The use of any of 
these three options would be approved by NMFS during the vessel's 
annual observer sampling station inspection as described at Sec.  
679.28(d).

Weighing of Catch

    Catcher/processor vessels catching fish under the authority of a 
rockfish CQ permit or in sideboard fishery would be required to weigh 
all groundfish on a NMFS-approved scale in compliance with the scale 
requirements at 50 CFR 679.28(b). Each haul would need to be weighed 
separately, and all catch would need to be made available for sampling 
by an observer. This requirement would apply to any vessel assigned to 
a rockfish cooperative and fishing in a rockfish sideboard fishery, but 
not to opt-out vessels or vessels fishing in the entry level longline 
fishery. This requirement would ensure that all catch is properly 
accounted for and debited from either the cooperative's CQ account or 
sideboard fishery limit, as applicable. Vessels fishing under an LLP 
license that has opted-out of participating in a rockfish cooperative 
would not need to weigh catch from the opt-out sideboard fisheries in 
July given the reduced need for precision in catch accounting necessary 
for NMFS to manage the opt-out sideboard limits. Shoreside processors 
receiving catch from vessels fishing under the authority of a rockfish 
CQ permit would need to weigh all catch as specified in the CMCP 
described below.

Catch Monitoring and Control Plan (CMCP)

    The owner and manager of a shoreside processor receiving groundfish 
harvested under the authority of a rockfish CQ permit would have to 
ensure that the facility is operating under an approved CMCP whenever 
receiving CQ allocated under the Rockfish Program. An acceptable CMCP 
describes how landings can be monitored effectively by a single 
individual authorized by NMFS, how

[[Page 52182]]

scales will be tested and used, and ensures that adequate facilities 
are made available for individuals authorized by NMFS (see Sec.  
679.28(g) for more details). CMCP requirements apply to the AFA and the 
Pilot Program. NMFS would not modify these requirements but merely 
extend their applicability to processing facilities participating in 
this proposed Rockfish Program.

CMCP Specialist

    NMFS would use a portion of the cost recovery fees collected under 
the Rockfish Program to hire personnel to monitor rockfish landings to 
provide impartial verification of a processor's adherence to its CMCP. 
NMFS would distinguish the duties between the rockfish CMCP specialist 
and a fishery observer so their respective functions or duties do not 
overlap. The rockfish CMCP specialist would only monitor program 
deliveries and would not be trained as an observer or requested to 
complete any observer duties such as verifying non-rockfish fish 
tickets, assisting vessel observers, or collecting biological or 
scientific data. The duties of the rockfish CMCP specialist would be to 
monitor rockfish deliveries to ensure compliance with the CMCP of any 
processor receiving program landings, to assist processors with 
rockfish species identification to ensure accurate catch sorting and 
quota accounting, and to report the findings to NMFS. A shoreside 
processor would be required to include a description in the CMCP of how 
the CMCP specialist would be notified of rockfish CQ deliveries. The 
CMCP specialist would establish a monitoring schedule so most (if not 
all) deliveries would be monitored. In the event of conflicting 
deliveries, the CMCP specialist would determine which program 
deliveries will be monitored. Because cost recovery fees would not be 
available at the start of the Rockfish Program, NMFS would be required 
to fund the CMCP specialist position(s) until cost recovery fees are 
available.

Cost Recovery

    The MSA requires that NMFS collect fees for the limited access 
programs established under section 303A of the MSA. The Rockfish 
Program would be established under the provisions of section 303A of 
the MSA. Section 304(d)(2) of the MSA requires that NMFS collect fees 
for the Rockfish Program equal to the actual costs directly related to 
the management, enforcement and data collection (management costs). 
Section 304(d)(2) of the MSA also limits the cost recovery fee so that 
it may not exceed 3 percent of the ex-vessel value of the fish 
harvested under the Rockfish Program. NMFS would assess a fee on the 
ex-vessel value of rockfish primary species and rockfish secondary 
species CQ harvested by rockfish cooperatives in the Central GOA and 
waters adjacent to the Central GOA when rockfish primary species caught 
by that vessel is deducted from the Federal TAC. Halibut PSC CQ would 
not be subject to a cost recovery fee because that halibut cannot be 
retained for sale and, therefore, does not have an ex-vessel value. The 
entry level longline fishery and opt-out vessels are not subject to 
cost recovery fees.
    An effective fee collection program would require collecting data 
on rockfish primary species and rockfish secondary species CQ ex-vessel 
value, assessing management costs, assigning the appropriate fee to 
each rockfish cooperative, and ensuring that rockfish cooperatives 
comply with the fee collection requirements. The primary components of 
the fee collection program that would require submissions from Rockfish 
Program participants are (1) a requirement that shoreside processors 
receiving rockfish CQ submit an annual Rockfish Ex-vessel Volume and 
Value Report that details the ex-vessel value of harvests; and (2) a 
cost recovery fee liability statement from each rockfish CQ holder--
effectively each rockfish cooperative.
    NMFS would rely on the Rockfish Ex-vessel Volume and Value Report 
to provide information on the ex-vessel value and the price paid of 
rockfish primary and secondary species. Each shoreside processor 
receiving fish harvested under a rockfish CQ permit would be required 
to submit this report to NMFS for receipt by NMFS no later than 
December 1 of each year. This would allow NMFS to collect price data 
from the rockfish cooperative season which extends from May 1 through 
November 15 of each year. Shoreside processors would need to provide 
landing and price data for each primary and rockfish secondary species 
by month. These data would allow NMFS to generate a standard ex-vessel 
price for each rockfish primary and secondary species on a monthly 
basis and determine the average price paid per pound for all shoreside 
processors receiving rockfish primary and secondary species CQ. NMFS 
would scale the average price in proportion to the amount of landings 
receiving that price during the month. This method is the same used to 
calculate a standard price in the BSAI crab rationalization and halibut 
and sablefish IFQ cost recovery programs. NMFS would publish the 
standard ex-vessel price per month for each rockfish primary and 
secondary species in the Federal Register in the first quarter of the 
year following the year the landings were made to provide rockfish 
cooperatives with information necessary to assess their fee liability. 
For example, in 2012, each shoreside processor receiving rockfish 
primary and secondary species CQ would need to submit a Rockfish Ex-
vessel Volume and Value Report so it was received by NMFS by December 
1, 2012, and then NMFS would publish the standard ex-vessel price per 
species and per month in early 2013.
    This standard ex-vessel price would apply to all rockfish primary 
and secondary CQ landings made in 2012. NMFS would use a standard ex-
vessel price rather than specific actual price data provided by each 
rockfish CQ holder. Use of a standard ex-vessel price is allowed under 
sections 303A and 304(d)(2) of the MSA. The use of an actual ex-vessel 
price would require that the rockfish CQ holder document all landings 
and prices. Based on experience with the halibut and sablefish IFQ 
program, where IFQ holders may use either standard ex-vessel prices 
generated by NMFS or actual ex-vessel prices, very few IFQ holders 
subject to fee collection have used actual prices. The BSAI crab fee 
collection program does not provide for the use of actual ex-vessel 
price and NMFS applies a standard price to crab landings on a monthly 
basis. NMFS proposes to extend the use of standard ex-vessel price in 
the Rockfish Program. Standard ex-vessel prices would need to be 
applied to the catcher/processor rockfish cooperatives because catcher/
processor vessels process catch at sea and do not use ex-vessel pricing 
to establish the value of catch because there is no processor receiving 
the catch and paying the harvester. NMFS has used the standard ex-
vessel prices estimated from shorebased deliveries to assign an ex-
vessel value to catcher/processor vessels in its cost recovery programs 
and would continue to do the same under this proposed action. Each 
year, NMFS would determine the total value of the rockfish fisheries 
subject to fee collection by summing the total value for all rockfish 
primary and rockfish secondary species harvest by all rockfish 
cooperatives during the previous year using the standard ex-vessel 
prices.
    NMFS would also publish the rockfish fee percentage in the Federal 
Register that would determine the total fee, up to 3 percent of the 
total ex-vessel value of the fishery, required from all rockfish 
cooperatives based on landings

[[Page 52183]]

of rockfish primary and secondary species CQ made in the previous year. 
The fee percentage is the total percentage of ex-vessel value due for 
each pound of rockfish primary and secondary species CQ made by a 
cooperative during the previous year. With the halibut and sablefish 
IFQ cost recovery program, NMFS has published the standard ex-vessel 
prices and the rockfish fee percentage in the same Federal Register 
notice in the first quarter of the year, and NMFS anticipates using the 
same process for the Rockfish Program. The fee percentage is the amount 
of the ex-vessel value that is due to NMFS based on the standard ex-
vessel value of the rockfish primary and secondary species CQ debited 
from all rockfish CQ accounts relative to the actual costs directly 
related to the management, enforcement and data collection of the 
Rockfish Program.
    NMFS would determine the fee percentage that applies to landings 
made in the previous year by dividing the total value of the rockfish 
primary species and rockfish secondary species for all rockfish 
cooperatives made during the previous year by the total actual costs 
during the previous year. NMFS tracks expenditures and reports the 
actual costs of managing cost recovery program(s) applicable to the 
crab rationalization program and the halibut and sablefish IFQ program. 
NMFS would perform a similar function for the Rockfish Program fee 
collection as well. NMFS would capture the actual cost of managing the 
fishery through an established accounting system that allows staff to 
track labor, travel and procurement. Once the actual costs for the 
previous year are identified, a portion of that amount is recovered 
from all rockfish CQ holders in the fishery. NMFS would adjust the 
total management costs, annually, to account for any adjustments or 
payments received during the previous year. For example, if payments 
received by rockfish cooperatives in 2013 were slightly greater than 
the actual costs accrued during the previous year (2012), then NMFS 
would adjust the total management costs, which would then slightly 
lower the fee percentage in 2013. Some slight adjustment in the total 
management costs to account for rounding, slight overpayment, or 
corrections to actual costs after the fee liability is due, or for 
other reasons, is anticipated and NMFS would accommodate these factors 
on an annual basis. If applying a 3-percent fee would recover revenues 
in excess of those needed, the percentage will be set at less than 3 
percent. The fee percentage could not be set at an amount higher than 3 
percent of ex-vessel value even if the actual costs for the previous 
year exceeded 3 percent of the standard ex-vessel value for the 
rockfish primary and secondary CQ landings.
    NMFS would inform each rockfish cooperative of the fee percentage 
applied to the previous year's landings and the total amount due (fee 
liability) through a letter sent to the address of record for each 
rockfish cooperative. NMFS advises rockfish cooperatives to inform NMFS 
if their contact information has changed. This fee liability letter 
would be sent to rockfish cooperative designated representatives during 
the first quarter of the year after the fee was incurred. The fee 
liability letter would be provided before fees are due on February 15 
of each year. The letter would include a summary explaining the fee 
liability determination including the current fee percentage, details 
of rockfish primary species and rockfish secondary species CQ pounds 
debited from rockfish CQ allocations by permit, species, date, and 
prices.
    Because fees are assessed based on landings made during the 
previous year, NMFS advises rockfish cooperatives to ensure that 
adequate funds are retained on an annual basis to ensure that the fee 
liability can be paid. For example, during 2012, it may be advisable 
for rockfish cooperatives to retain up to 3 percent of the value of ex-
vessel prices paid to the rockfish cooperative members for rockfish 
primary and secondary species CQ throughout the year. This would ensure 
that the rockfish cooperative could pay the required fees for fishing 
during 2012 when the fee for rockfish primary and secondary species CQ 
is due on February 15, 2013.
    NMFS would require that all payments be submitted electronically in 
U.S. dollars by automated clearing house, credit card, or electronic 
check drawn on a U.S. bank account. Electronic payment and submission 
of the fee collection would reduce administrative costs that would have 
to be borne by industry. All the rockfish cooperatives operating under 
the Pilot Program are familiar with, and regularly use, electronic 
submissions of various forms under the Pilot Program, and NMFS would 
extend this common practice to fee submission for the Rockfish Program. 
Instructions for electronic payment would be made available on the 
payment Web site and through a fee liability summary letter NMFS would 
mail to the rockfish CQ permit holder.
    Failure to pay on time would result in the permit holder's QS 
becoming non-transferable and the person would be ineligible to receive 
any additional QS by transfer. In addition, cooperative members would 
not receive any rockfish CQ the following year until full payment of 
the fee liability is received by NMFS. This is because CQ may not be 
issued until NMFS receives a complete application, which includes the 
full payment of an applicant's complete rockfish cost recovery fee 
liability. Communication with NMFS by using the contact information 
provided in the fee liability letter would provide ample opportunity 
for rockfish CQ permit holders to reconcile accounts. However, if the 
account is not reconciled and the individual does not pay, NMFS would 
send an IAD to the rockfish CQ permit holder. The IAD would state that 
the rockfish CQ permit holder's estimated fee liability due from the 
rockfish CQ permit holder had not been paid. Any such formal 
determination may be appealed. The appeals process is described under 
50 CFR 679.43. An applicant who appeals an IAD would not receive any 
rockfish CQ derived from their rockfish QS until the appeal was 
resolved in the applicant's favor.
    After 30 days, the agency may pursue collection of the unpaid fees 
if the formal determination is not appealed and the account remains 
unpaid or under-paid. The Regional Administrator may continue to 
prohibit issuance of a rockfish CQ permit for any subsequent calendar 
years until NMFS receives the unpaid fees. Upon issuance of final 
agency action, any overpayment of fees would be returned to the 
rockfish CQ permit holder unless the permit holder requests that the 
agency put the credit toward future cost recovery fees. NMFS notes that 
some payment processing fees may be deducted from any fees returned to 
the rockfish CQ permit holder. Currently for the 2011 fishing season, 
the processing fee is set at $30, but the fee may change from year to 
year.

Rockfish Program Duration and Review

    The Rockfish Program would be authorized for 10 years, from January 
1, 2012, until December 31, 2021. In making its recommendation, the 
Council considered the various consequences that a sunset date could 
have on the Rockfish Program. The Council discussed administrative and 
analytical burdens that would be caused by an in-depth review of the 
Rockfish Program prior to its expiration. Mandating a Council 
recommendation to extend the Rockfish Program would substantially 
increase Council and staff

[[Page 52184]]

workloads, as a formal extension of the program would be required if 
the Council follows the normal process for amending its FMPs. In 
addition, the Council recognized that uncertainty over the future 
management of the fishery would affect the rockfish industry and how it 
operates within the Rockfish Program. The sunset date would likely 
affect the value of LLP licenses that qualify for the Rockfish Program 
because the timeframe of the fishing privilege associated with the 
licenses would be uncertain. This limited duration may also affect 
planning by both sectors as well as future investments by the sectors 
that may be beneficial under the Rockfish Program management, but less 
useful under LLP management. Ultimately, the Council recommended an 
extension of the duration of the Rockfish Program to 10 years, which is 
5 years longer than the duration of the Pilot Program, to allow for the 
opportunity to reevaluate the program's effectiveness in the future. 
The Council reviewed and considered the duration of the permits under 
Section 303A. All permits would expire after 10 years but be renewed 
unless the Council takes action to discontinue the Rockfish Program. 
Section 303A(f)(1) of the MSA states that permits are renewable unless 
revoked, limited, or modified. NMFS notes that the entire Rockfish 
Program, and not specifically the permits, would be subject to the ten 
year expiration date.
    A formal review of the proposed Rockfish Program by the Council 
would take place 3 years after the implementation of the program. An 
early review of the Rockfish Program would help the Council determine 
if the program is functioning as intended. The review process would 
allow for a full evaluation of the program's successes or challenges, 
and provide the Council with details on unanticipated consequences. The 
Council determined that a formal review process was essential to the 
Rockfish Program as a key tool to assess whether the Rockfish Program 
was achieving the goals of the MSA and the problem statement as 
identified in the Analysis (ADDRESSES). This review and evaluation by 
the Council would include an assessment of the program objectives. 
Specifically, the Council would review whether the allocation of 
rockfish and associated incidental harvests were fair and equitable 
given participation in the fishery, historical investments in and 
dependence upon the fishery, and employment in the harvesting and 
processing sectors. The Council would also assess changes in annual 
cooperative formation, changes in product value, the number and 
distribution of processing facilities, and stability or use of annual 
processor associations among catcher vessels. The Council would focus 
on the impact of this action on the harvesting and processing sectors, 
as well as on fishery dependent communities. The Council would also 
assess whether the needs for management and enforcement, as well as 
data collection and analysis, were adequately met. Because the Council 
would undertake this review, and not NMFS, regulatory language 
requiring this review is not required or included in this proposed 
rule.
    If the Council recommends an extension of the Rockfish Program 
beyond the 10-year duration, permits would be renewed before the 
expiration date unless they have been revoked, limited, or modified. 
NMFS would have full discretion in determining which permits would be 
subject to revocation, limitation, or modification. If the Council 
would not recommend a continuation of the Rockfish Program, then 
rockfish management would revert back to management under the LLP. If 
this should happen, all Rockfish Program permits would expire 10 years 
after the implementation of the Rockfish Program and not be renewed.

Classification

    Pursuant to sections 304(b)(1)(A) of the MSA, the NMFS Assistant 
Administrator has determined that this proposed rule is consistent with 
the FMP, other provisions of the MSA, and other applicable law, subject 
to further consideration after public comment.
    This proposed rule has been determined to be not significant for 
the purposes of Executive Order 12866.

Regulatory Flexibility Act

    A Regulatory Impact Review (RIR) and Initial Regulatory Flexibility 
Analysis (IRFA) were prepared for this action. The RIR assesses all 
costs and benefits of available regulatory alternatives. The RIR 
considers all quantitative and qualitative measures. The Rockfish 
Program was chosen based on those measures that maximize net benefits 
to affected participants in the Central GOA rockfish fisheries. The 
IRFA was prepared, as required by section 603 of the Regulatory 
Flexibility Act (RFA). 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 in the preamble. Copies of the RIR and IRFA 
prepared for this proposed rule are available from NMFS (see 
ADDRESSES). A summary of these analyses follows.

Description of Significant Alternatives Considered

    The Council considered an extensive and elaborate series of 
alternatives, options, and suboptions as it designed and evaluated the 
potential for the continued rationalization of the Central GOA rockfish 
fisheries, including the ``no action'' alternative. The RIR presents 
the complete set of alternatives, in various combinations with the 
complex suite of options. Status Quo/No Action (Alternative 1); current 
entry level management under the Pilot Program (Alternative 2); and an 
entry level fishery for longline gear only (Alternative 3). The third 
alternative was selected. Three alternatives for catcher/processors 
also were considered: Status Quo/No Action (Alternative 1); a rockfish 
cooperative program where allocations are based on harvest history of 
sector members (Alternative 2); and the existing Pilot Program 
management (Alternative 3). Alternative 2 was selected. Four 
alternatives for the catcher vessel sector were considered: Status Quo/
No Action (Alternative 1); a rockfish cooperative program where 
allocations are based on harvest history of sector members (Alternative 
2); a rockfish cooperative program where allocations are divided 
between historical harvesters and processing participants (Alternative 
3); and a cooperative program where a harvester must join in 
association with a processor where associations are severable 
(Alternative 4). Alternative 4 was selected.
    These alternatives constitute the suite of ``significant 
alternatives,'' under this proposed action, for purposes of the RFA. 
Based upon the best available scientific data, and consideration of the 
objectives of this action, it appears that there are no alternatives to 
the proposed action that have the potential to accomplish the stated 
objectives of the MSA and any other applicable statutes and that have 
the potential to minimize any significant adverse economic impact of 
the proposed rule on small entities. After public process, the Council 
concluded that the proposed Rockfish Program would best accomplish the 
stated objectives articulated in the problem statement and applicable 
statutes, and minimize to the extent practicable adverse economic 
impacts on the universe of directly regulated small entities.

[[Page 52185]]

Reasons Action Is Being Considered and the Objectives of, and Legal 
Basis for, the Proposed Rule

    The IRFA describes in detail the reasons why this action is being 
proposed, describes the objectives and legal basis for the proposed 
rule, and discusses both small and large regulated entities to 
adequately characterize the fishery participants. Section 303A and 
other authorities from the MSA provide the legal basis for the proposed 
rule. This rule is meant to retain the conservation, management, 
safety, and economic gains realized under the Pilot Program.

Number and Description of Small Entities Regulated by the Proposed 
Action

    The IRFA contains a description and estimate of the number of small 
entities to which the proposed rule would apply. The IRFA estimates 
that none of the 12 catcher/processors eligible for the Rockfish 
Program and regulated by this action are small entities, as defined by 
the RFA. Thirty-two catcher vessels eligible for the Rockfish Program 
were either members of cooperatives and, as such, are not considered 
small entities for the purpose of the RFA, or had annual gross revenues 
of at least $4 million. The remaining 14 eligible catcher vessels are 
all considered small entities. It is likely that some of the eligible 
14 catcher vessels are affiliated through partnerships with other 
entities, and would be considered large entities for the purpose of 
this action, but in the absence of complete ownership information, 
these affiliations cannot be definitively determined.
    In addition to the main program, this action also creates an 
``entry level'' fishery for the longline sector. Since participation in 
that fishery is voluntary, the number of small entities participating 
cannot be predicted. It is likely that a substantial portion of the 
entry level longline fishery participants will be small entities. These 
impacts are analyzed in the RIR prepared for this action (see 
ADDRESSES).

Projected Reporting, Recordkeeping and Other Compliance Requirements

    Implementation of the Rockfish Program would continue the overall 
reporting structure and recordkeeping requirements of the Pilot Program 
for participants in the Central GOA rockfish fisheries. The regulations 
proposed are not expected to increase the recordkeeping and reporting 
requirements for any small entities in the fishery.

Federal Rules Which May Duplicate, Overlap or Conflict With the 
Proposed Rule

    No Federal rules that may duplicate, overlap, or conflict with this 
proposed action have been identified.

Collection-of-Information Requirements

    This proposed rule contains collection-of-information requirements 
subject to review and approval by the Office of management and Budget 
(OMB) under the Paperwork Reduction Act (PRA). These requirements have 
been submitted to OMB for approval. The collections are listed below by 
OMB control number.
OMB Control No. 0206
    The Federal Fisheries Permit and Federal Processor Permit are 
mentioned in this proposed rule; however, the public reporting burden 
for this collection-of-information is not directly affected by this 
proposed rule.
OMB Control No. 0213
    Public reporting burden per response is estimated to average 30 
minutes for Catcher/processor Trawl Gear Daily Cumulative Production 
Logbook; 35 minutes for Catcher/processor trawl gear ELB.
OMB Control No. 0330
    Scale, catch weighing, and monitoring requirements are mentioned in 
this rule; however, the public reporting burden for this collection-of-
information is not directly affected by this proposed rule.
OMB Control No. 0334
    LLP requirements are mentioned in this proposed rule; however, the 
public reporting burden for this collection-of-information is not 
directly affected by this proposed rule.
OMB Control No. 0445
    The VMS requirements are mentioned in this proposed rule; however, 
the public reporting burden for this collection-of-information is not 
directly affected by this proposed rule.
OMB Control No. 0515
    Elandings is mentioned in this proposed rule; however, the public 
reporting burden for this collection-of-information is not directly 
affected by this proposed rule.
OMB Control No. 0545
    Public reporting burden per response is estimated to average 2 
hours for Application for Rockfish Cooperative Quota; 15 minutes for 
Cooperative Termination of Fishing Declaration; 2 hours for Application 
for Rockfish Limited Access Fishery (this application is removed with 
this action); 30 minutes for Rockfish Cooperative Vessel Check-in and 
Check-out Report; 2 hours for Rockfish Ex-vessel Volume and Value 
Report; 4 hours for appeal of a NMFS decision; 2 hours for Application 
for Rockfish Quota Share; 2 hours for Application to Transfer Rockfish 
Quota Share; 2 hours for Application to Opt-out of Rockfish 
Cooperatives; 2 hours for Application for Inter-cooperative Transfer of 
Rockfish Cooperative Quota; 2 hours for Application for Rockfish Entry 
Level Longline Fishery; and 4 hours for the annual Rockfish Cooperative 
Report.
    Public reporting burden includes the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    Public comment is sought regarding: Whether this proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; the accuracy of the burden estimate; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways to minimize the burden of the collection of 
information, including through the use of automated collection 
techniques or other forms of information technology. Send comments on 
these or any other aspects of the collection of information to NMFS at 
the ADDRESSES above, and e-mail to <a href="/cdn-cgi/l/email-protection#d7989e85968884a2b5babea4a4beb8b997b8bab5f9b2b8a7f9b0b8a1"><span class="__cf_email__" data-cfemail="9bd4d2c9dac4c8eef9f6f2e8e8f2f4f5dbf4f6f9b5fef4ebb5fcf4ed">[email protected]</span></a>, or fax 
to 202-395-7285.
    Notwithstanding any other provision of the law, no person is 
required to respond to, and no person shall be subject to a penalty for 
failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB control number.

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: August 8, 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 679 is 
proposed to be amended as follows:

PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA

    1. The authority citation for part 679 continues to read as 
follows:


[[Page 52186]]


    Authority: 16 U.S.C. 773 et seq., 1801 et seq., 3631 et seq.; 
and Pub. L. 108-447.

    2. In Sec.  679.2,
    a. Remove the definitions for ``Affiliation for the purpose of 
defining AFA entities'', ``Eligible rockfish harvester'', ``Eligible 
rockfish processor'', ``Halibut PSC sideboard limit'', ``Initial 
rockfish QS pool'', ``Legal rockfish landing for purpose of qualifying 
for the Rockfish Program'', ``Official Rockfish Program record'', 
``Opt-out fishery'', ``Primary rockfish species'', ``Rockfish entry 
level fishery'', ``Rockfish entry level processor'', ``Rockfish limited 
access fishery'', ``Secondary species'', ``Sector for purposes of the 
Rockfish Program'', ``Sideboard limit for purposes of the Rockfish 
Program'', and ``Ten percent or greater direct or indirect ownership 
interest for purposes of the Amendment 80 Program and the Rockfish 
Program'';
    b. Revise the definitions of ``Affiliates'', ``Basis species'', 
``Cooperative quota (CQ)'', ``Rockfish cooperative'', ``Rockfish entry 
level harvester'', ``Rockfish Program'', ``Rockfish Program 
fisheries'', ``Rockfish Program species'', ``Rockfish Quota Share 
(QS)'', ``Rockfish QS pool'', ``Rockfish QS unit'', and ``Rockfish 
sideboard fisheries''; and
    c. Add definitions for ``Affiliation for the purpose of defining 
AFA and the Rockfish Program'', ``Rockfish (Catch Monitoring Control 
Plan) CMCP specialist'', ``Rockfish CQ (See CQ)'', ``Rockfish CQ 
equivalent pound(s)'', ``Rockfish eligible harvester'', ``Rockfish 
entry level longline fishery'', ``Rockfish entry level trawl fishery'', 
``Rockfish fee liability'', ``Rockfish fee percentage'', ``Rockfish 
legal landings'', ``Rockfish processor'', ``Rockfish Program official 
record'', ``Rockfish sector'', ``Rockfish sideboard limit'', ``Rockfish 
sideboard ratio'', ``Rockfish standard ex-vessel value'', ``Rockfish 
standard price'', and ``Ten percent or greater direct or indirect 
ownership interest for purposes of the Amendment 80 Program'' in 
alphabetical order to read as follows:


Sec.  679.2.  Definitions.

* * * * *
    Affiliates, for purposes of subparts E and H to this part, means 
business concerns, organizations, or individuals are affiliates of each 
other if, directly or indirectly, either one controls or has the power 
to control the other, or a third party controls or has the power to 
control both. Indicators of control include, but are not limited to: 
Interlocking management or ownership; identity of interests among 
family members; shared facilities and equipment; common use of 
employees; or a business entity organized following the 
decertification, suspension, or proposed decertification of an observer 
provider that has the same or similar management, ownership, or 
principal employees as the observer provider that was decertified, 
suspended, or proposed for decertification.
    Affiliation for the purpose of defining AFA and the Rockfish 
Program means a relationship between two or more individuals, 
corporations, or other business concerns in which one concern directly 
or indirectly owns a 10 percent or greater interest in another, exerts 
control over another, or has the power to exert control over another; 
or a third individual, corporation, or other business concern directly 
or indirectly owns a 10 percent or greater interest in both, exerts 
control over both, or has the power to exert control over both.
    (1) What is 10 percent or greater ownership? For the purpose of 
determining affiliation, 10 percent or greater ownership is deemed to 
exist if an individual, corporation, or other business concern directly 
or indirectly owns 10 percent or greater interest in a second 
corporation or other business concern.
    (2) What is an indirect interest? An indirect interest is one that 
passes through one or more intermediate entities. An entity's 
percentage of indirect interest in a second entity is equal to the 
entity's percentage of direct interest in an intermediate entity 
multiplied by the intermediate entity's direct or indirect interest in 
the second entity.
    (3) What is control? For the purpose of determining affiliation, 
control is deemed to exist if an individual, corporation, or other 
business concern has any of the following relationships or forms of 
control over another individual, corporation, or other business 
concern:
    (i) Controls 10 percent or more of the voting stock of another 
corporation or business concern;
    (ii) Has the authority to direct the business of the entity that 
owns the fishing vessel or processor. The authority to direct the 
business of the entity does not include the right to simply participate 
in the direction of the business activities of an entity that owns a 
fishing vessel or processor;
    (iii) Has the authority in the ordinary course of business to limit 
the actions of or to replace the chief executive officer, a majority of 
the board of directors, any general partner or any person serving in a 
management capacity of an entity that holds 10 percent or greater 
interest in a fishing vessel or processor. Standard rights of minority 
shareholders to restrict the actions of the entity are not included in 
this definition of control provided they are unrelated to day-to-day 
business activities. These rights include provisions to require the 
consent of the minority shareholder to sell all or substantially all 
the assets, to enter into a different business, to contract with the 
major investors or their affiliates, or to guarantee the obligations of 
majority investors or their affiliates;
    (iv) Has the authority to direct the transfer, operation, or 
manning of a fishing vessel or processor. The authority to direct the 
transfer, operation, or manning of a vessel or processor does not 
include the right to simply participate in such activities;
    (v) Has the authority to control the management of or to be a 
controlling factor in the entity that holds 10 percent or greater 
interest in a fishing vessel or processor;
    (vi) Absorbs all the costs and normal business risks associated 
with ownership and operation of a fishing vessel or processor;
    (vii) Has the responsibility to procure insurance on the fishing 
vessel or processor, or assumes any liability in excess of insurance 
coverage;
    (viii) Has the authority to control a fishery cooperative through 
10 percent or greater ownership or control over a majority of the 
vessels in the cooperative, has the authority to appoint, remove, or 
limit the actions of or replace the chief executive officer of the 
cooperative, or has the authority to appoint, remove, or limit the 
actions of a majority of the board of directors of the cooperative. In 
such instance, all members of the cooperative are considered affiliates 
of the individual, corporation, or other business concern that exerts 
control over the cooperative; or
    (ix) Has the ability through any other means whatsoever to control 
the entity that holds 10 percent or greater interest in a fishing 
vessel or processor.
* * * * *
    Basis species means any species or species group that is open to 
directed fishing that the vessel is authorized to harvest (see Tables 
10, 11, and 30 to this part).
* * * * *
    Cooperative quota (CQ) means:
    (1) For purposes of the Amendment 80 Program means:
    (i) The annual catch limit of an Amendment 80 species that may be 
caught by an Amendment 80 cooperative while fishing under a CQ permit;
    (ii) The amount of annual halibut and crab PSC that may be used by 
an

[[Page 52187]]

Amendment 80 cooperative while fishing under a CQ permit.
    (2) For purposes of the Rockfish Program means:
    (i) The annual catch limit of a rockfish primary species or 
rockfish secondary species that may be harvested by a rockfish 
cooperative while fishing under a CQ permit;
    (ii) The amount of annual halibut PSC that may be used by a 
rockfish cooperative in the Central GOA while fishing under a CQ permit 
(see rockfish halibut PSC in this section).
* * * * *
    Rockfish (Catch Monitoring Control Plan) CMCP specialist, for 
purposes of subpart H to this part, means a designee authorized by the 
Regional Administrator to monitor compliance with catch monitoring and 
control plans or for other purposes of conservation and management of 
marine resources as specified by the Regional Administrator.
    Rockfish cooperative means a group of rockfish eligible harvesters 
who have chosen to form a rockfish cooperative under the requirements 
in Sec.  679.81 in order to combine and harvest fish collectively under 
a CQ permit issued by NMFS.
    Rockfish CQ (See CQ)
    Rockfish CQ equivalent pound(s) means the weight recorded in 
pounds, for a rockfish CQ landing and calculated as round weight.
    Rockfish eligible harvester means a person who is permitted by NMFS 
to hold rockfish QS.
    Rockfish entry level harvester means a person who is harvesting 
fish in the rockfish entry level longline fishery.
    Rockfish entry level longline fishery means the longline gear 
fisheries in the Central GOA conducted under the Rockfish Program by 
rockfish entry level harvesters.
    Rockfish entry level trawl fishery means the trawl gear fisheries 
in the Central GOA conducted under the Rockfish Program by rockfish 
entry level harvesters during 2007 through 2011 only.
    Rockfish fee liability means that amount of money for Rockfish 
Program cost recovery, in U.S. dollars, owed to NMFS by a CQ permit 
holder as determined by multiplying the appropriate standard ex-vessel 
value of his or her rockfish landing(s) by the appropriate rockfish fee 
percentage.
    Rockfish fee percentage means that positive number no greater than 
3 percent (0.03) determined by the Regional Administrator and 
established for use in calculating the rockfish fee liability for a CQ 
permit holder.
* * * * *
    Rockfish legal landings means groundfish caught and retained in 
compliance with state and Federal regulations in effect at that time 
unless harvested and then processed as meal, and--
    (1) For catcher vessels: The harvest of groundfish from the Central 
GOA regulatory area that is offloaded and recorded on a State of Alaska 
fish ticket during the directed fishing season for that rockfish 
primary species as established in Tables 28a and 28b to this part.
    (2) For catcher/processors: The harvest of groundfish from the 
Central GOA regulatory area that is recorded on a weekly production 
report based on harvests during the directed fishing season for that 
rockfish primary species as established in Table 28a to this part.
    Rockfish processor means a shoreside processor with a Federal 
processor permit that receives groundfish harvested under the authority 
of a CQ permit.
    Rockfish Program means the program implemented under subpart G to 
this part to manage Rockfish Program fisheries.
    Rockfish Program fisheries means one of following fisheries under 
the Rockfish Program:
    (1) A rockfish cooperative in the catcher/processor sector;
    (2) A rockfish cooperative in the catcher vessel sector; and
    (3) The rockfish entry level longline fishery.
    Rockfish Program official record means information used by NMFS 
necessary to determine eligibility to participate in the Rockfish 
Program and assign specific harvest privileges or limits to Rockfish 
Program participants.
    Rockfish Program species means the following species that are 
managed under the authority of the Rockfish Program:
    (1) Rockfish primary species means northern rockfish, Pacific ocean 
perch, and pelagic shelf rockfish in the Central GOA regulatory area.
    (2) Rockfish secondary species means the following species in the 
Central GOA regulatory area:
    (i) Sablefish not allocated to the IFQ Program;
    (ii) Thornyhead rockfish;
    (iii) Pacific cod for the catcher vessel sector;
    (iv) Rougheye rockfish for the catcher/processor sector; and
    (v) Shortraker rockfish for the catcher/processor sector.
    (3) Rockfish non-allocated species means all groundfish species 
other than Rockfish Program species.
    Rockfish quota share (QS) means a permit expressed in numerical 
units, the amount of which is based on rockfish legal landings for 
purposes of qualifying for the Rockfish Program and that are assigned 
to an LLP license.
    Rockfish QS pool means the sum of rockfish QS units established for 
the Rockfish Program fishery based on the Rockfish Program official 
record.
    Rockfish QS unit means a measure of QS based on rockfish legal 
landings.
    Rockfish sector means:
    (1) Catcher/processor sector: Those rockfish eligible harvesters 
who hold an LLP license with a catcher/processor designation that is 
assigned at least one rockfish legal landing that could, or does, 
generate rockfish QS.
    (2) Catcher vessel sector: Those rockfish eligible harvesters who 
hold an LLP license without a catcher/processor designation with at 
least one rockfish legal landing that could, or does, generate rockfish 
QS.
    Rockfish sideboard fisheries means fisheries that are assigned a 
rockfish sideboard limit that may be harvested by participants in the 
Rockfish Program.
    Rockfish sideboard limit means:
    (1) The maximum amount of northern rockfish, Pacific ocean perch, 
and pelagic shelf rockfish that may be harvested in the Rockfish 
Program as specified in the sideboard provisions under Sec.  679.82(e), 
as applicable; and
    (2) The maximum amount of halibut PSC that may be used in the 
Rockfish Program as specified in the sideboard provisions under Sec.  
679.82(e), as applicable.
    Rockfish sideboard ratio means a portion of a rockfish sideboard 
limit for a groundfish fishery that is assigned as specified under 
Sec.  679.82(e).
    Rockfish standard ex-vessel value means the total U.S. dollar 
amount of rockfish CQ groundfish landings as calculated by multiplying 
the number of landed rockfish CQ equivalent pounds by the appropriate 
rockfish standard price determined by the Regional Administrator.
    Rockfish standard price means a price, expressed in U.S. dollars 
per rockfish CQ equivalent pound, for landed rockfish CQ groundfish 
determined annually by the Regional Administrator.
* * * * *
    Ten percent or greater direct or indirect ownership interest for 
purposes of the Amendment 80 Program means a relationship between two 
or more persons in which one directly or indirectly owns or controls a 
10 percent or greater interest in, or otherwise controls, another 
person; or a third person which directly or indirectly owns or 
controls, or otherwise controls

[[Page 52188]]

a 10 percent or greater interest in both. For the purpose of this 
definition, the following terms are further defined:
    (1) Person. A person is a person as defined in this section.
    (2) Indirect interest. An indirect interest is one that passes 
through one or more intermediate persons. A person's percentage of 
indirect interest in a second person is equal to the person's 
percentage of direct interest in an intermediate person multiplied by 
the intermediate person's direct or indirect interest in the second 
person.
    (3) Controls a 10 percent or greater interest. A person controls a 
10 percent or greater interest in a second person if the first person:
    (i) Controls a 10 percent ownership share of the second person; or
    (ii) Controls 10 percent or more of the voting or controlling stock 
of the second person.
    (4) Otherwise controls. A person otherwise controls another person, 
if the first person has:
    (i) The right to direct, or does direct, the business of the other 
person;
    (ii) The right in the ordinary course of business to limit the 
actions of, or replace, or does limit or replace, the chief executive 
officer, a majority of the board of directors, any general partner, or 
any person serving in a management capacity of the other person;
    (iii) The right to direct, or does direct, the Rockfish Program 
fishery processing activities of the other person;
    (iv) The right to restrict, or does restrict, the day-to-day 
business activities and management policies of the other person through 
loan covenants;
    (v) The right to derive, or does derive, either directly, or 
through a minority shareholder or partner, and in favor of the other 
person, a significantly disproportionate amount of the economic benefit 
from the processing of fish by that other person;
    (vi) The right to control, or does control, the management of, or 
to be a controlling factor in, the other person;
    (vii) The right to cause, or does cause, the purchase or sale of 
fish processed by the other person;
    (viii) Absorbs all of the costs and normal business risks 
associated with ownership and operation of the other person; or
    (ix) Has the ability through any other means whatsoever to control 
the other person.
* * * * *
    3. In Sec.  679.4,
    a. Remove paragraphs (a)(1)(xii)(C) and (D), and (n)(2)(v), (n)(3);
    b. Revise paragraphs (a)(1)(xii)(A) and (B), (b)(6)(iii), 
(k)(12)(i), (n)(1)(i), (n)(1)(ii), and (n)(2)(i) through (iii); and
    c. Add paragraph (n)(1)(iv) to read as follows:


Sec.  679.4  Permits.

* * * * *
    (a) * * *
    (1) * * *

------------------------------------------------------------------------
                                  Permit is in effect
 If program permit or card type     from issue date         For more
               is:                through the end of:   information, see
                                                             . . .
------------------------------------------------------------------------
 
                              * * * * * * *
(xii) * * *
(A) Rockfish QS.................  Indefinite.........   Sec.   679.80(a)
(B) CQ..........................  Until expiration                  Sec.
                                   date shown on            679.81(e)(4)
                                   permit.
 
                              * * * * * * *
------------------------------------------------------------------------

* * * * *
    (b) * * *
    (6) * * *
    (iii) NMFS will reissue a Federal fisheries permit to any person 
who holds a Federal fisheries permit issued for a vessel if that vessel 
was used to make any rockfish legal landings and is subject to 
sideboard provisions as described under Sec.  679.82(d) through (f).
* * * * *
    (k) * * *
    (12) * * *
    (i) General. In addition to other requirements of this part, a 
license holder must have rockfish QS assigned to his or her groundfish 
LLP license to conduct directed fishing for rockfish primary species 
and rockfish secondary species with trawl gear.
* * * * *
    (n) * * *
    (1) * * *
    (i) A CQ permit is issued annually to a rockfish cooperative if the 
members of that rockfish cooperative have submitted a complete and 
timely application for CQ as described in Sec.  679.81(f) that is 
approved by the Regional Administrator. A CQ permit authorizes a 
rockfish cooperative to participate in the Rockfish Program. The CQ 
permit will indicate the amount of rockfish primary species and 
rockfish secondary species that may be harvested by the rockfish 
cooperative, and the amount of rockfish halibut PSC that may be used by 
the rockfish cooperative. The CQ permit will list the members of the 
rockfish cooperative, the vessels that are authorized to fish under the 
CQ permit for that rockfish cooperative, and the rockfish processor 
with whom that rockfish cooperative is associated, if applicable.
    (ii) A CQ permit is valid only until the end of the calendar year 
for which the CQ permit is issued;
* * * * *
    (iv) After November 15 of the year for which the CQ permit is 
issued, or upon approval of a rockfish cooperative termination of 
fishing declaration described in paragraph (n)(2) of this section:
    (A) A cooperative may only use rockfish primary species and 
rockfish secondary species CQ for transfer;
    (B) A cooperative may not transfer halibut PSC CQ;
    (C) An amount of halibut PSC equal to 55 percent of the unused 
rockfish halibut PSC CQ assigned to all rockfish cooperatives will be 
reapportioned under the provisions described in Sec.  
679.21(d)(5)(iii)(B); and
    (D) The amount of unused halibut PSC not reapportioned under the 
provisions described in Sec.  679.21(d)(5)(iii)(B) will not be 
available for use as halibut PSC by any person for the remainder of 
that calendar year.
    (2) * * *
    (i) A rockfish cooperative may choose to terminate its CQ permit 
through a declaration submitted to NMFS.
    (ii) This declaration may only be submitted to NMFS electronically. 
The rockfish cooperative's designated representative must log into the 
online system and create a request for termination of fishing 
declaration as indicated on the computer screen. By using the rockfish 
cooperative's NMFS ID and password, and submitting the termination of 
fishing declaration request, the designated representative certifies 
that all information is true, correct, and complete.

[[Page 52189]]

    (iii) A rockfish cooperative termination of fishing declaration 
must include the following information:
* * * * *
    4. In Sec.  679.5,
    a. Remove paragraphs (r)(4), (r)(7), and (r)(8)(iv);
    b. Redesignate paragraphs (r)(5), (r)(6) and (r)(8) through (r)(10) 
as (r)(4), (r)(5) and (r)(6) through (r)(8), respectively;
    c. Revise newly redesignated paragraphs (r)(4), (r)(5), (r)(6)(i), 
(r)(8)(i)(A) and (B), and (r)(8)(ii);
    d. Revise paragraphs (r)(1) through (3); and
    e. Add paragraphs (a)(1)(iii)(F), (r)(9), and (r)(10) to read as 
follows:


Sec.  679.5  Recordkeeping and reporting (R&R).

    (a) * * *
    (1) * * *
    (iii) * * *

------------------------------------------------------------------------
                                                           For more
   If harvest made under . . .     Record the . . .   information, see .
             program                                          . .
------------------------------------------------------------------------
 
                                * * * * *
(F) Rockfish Program............  Cooperative number  subpart H to this
                                                       part.
------------------------------------------------------------------------

* * * * *
    (r) * * *
    (1) General. The owners and operators of catcher vessels, catcher/
processors, and shoreside processors authorized as participants in the 
Rockfish Program must comply with the applicable recordkeeping and 
reporting requirements of this section and must assign all catch to a 
rockfish cooperative or rockfish sideboard fishery, as applicable at 
the time of catch or receipt of groundfish. All owners of catcher 
vessels, catcher/processors, and shoreside processors authorized as 
participants in the Rockfish Program must ensure that their designated 
representatives or employees comply with all applicable recordkeeping 
and reporting requirements.
    (2) Logbook--(i) DFL. Operators of catcher vessels equal to or 
greater than 60 ft (18.3 m) LOA participating in a Rockfish Program 
fishery and using trawl gear must maintain a daily fishing logbook for 
trawl gear as described in paragraphs (a) and (c) of this section.
    (ii) ELB. Operators of catcher/processors permitted in the Rockfish 
Program must use a combination of NMFS-approved catcher/processor trawl 
gear ELB and eLandings to record and report groundfish and PSC 
information as described in paragraph (f) of this section to record 
Rockfish Program landings and production.
    (3) eLandings. Managers of shoreside processors that receive 
rockfish primary species or rockfish secondary species in the Rockfish 
Program must use eLandings or NMFS-approved software as described in 
paragraphs (e) and (f) of this section, instead of a logbook and WPR, 
to record Rockfish Program landings and production.
    (4) Production reports. Operators of catcher/processors that are 
authorized as processors in the Rockfish Program must submit a 
production report as described in paragraphs (e)(9) and (10) of this 
section.
    (5) Product transfer report (PTR), processors. Operators of 
catcher/processors and managers of shoreside processors that are 
authorized as processors in the Rockfish Program must submit a PTR as 
described in paragraph (g) of this section.
    (6) Annual rockfish cooperative report--(i) Applicability. A 
rockfish cooperative permitted in the Rockfish Program (see Sec.  
679.4(n)(1)) annually must submit to the Regional Administrator an 
annual rockfish cooperative report detailing the use of the 
cooperative's CQ.
* * * * *
    (8) * * *
    (i) * * *
    (A) Vessel check-in. The designated representative of a rockfish 
cooperative must designate any vessel that is authorized to fish under 
the rockfish cooperative's CQ permit before that vessel may fish under 
that CQ permit through a check-in procedure. The designated 
representative for a rockfish cooperative must submit to NMFS, in 
accordance with (8)(ii), a check-in designation for a vessel:
    (1) At least 48 hours prior to the time the vessel begins a fishing 
trip to fish under a CQ permit; and
    (2) A check-in designation is effective at the beginning of the 
first fishing trip after the designation has been submitted.
    (B) Vessel check-out. The designated representative of a rockfish 
cooperative must designate any vessel that is no longer fishing under a 
CQ permit for that rockfish cooperative through a check-out procedure. 
A check-out report must be submitted to NMFS, in accordance with 
(8)(ii), within 6 hours after the effective date and time the rockfish 
cooperative ends the vessel's authority to fish under the CQ permit.
    (1) If the vessel is fishing under a CQ permit for a catcher vessel 
cooperative, a check-out designation is effective at the end of a 
complete offload;
    (2) If the vessel is fishing under a CQ permit for a catcher/
processor cooperative, a check-out designation is effective at the end 
of the week-ending date as reported in a production report, or the end 
of a complete offload, whichever occurs first.
    (ii) Submittal. The designated representative of the rockfish 
cooperative must submit a vessel check-in or check-out report 
electronically. The rockfish cooperative's designated representative 
must log into the online system and create a vessel check-in or vessel 
check-out request as indicated on the computer screen. By using the 
NMFS ID password and submitting the transfer request, the designated 
representative certifies that all information is true, correct, and 
complete.
* * * * *
    (9) Rockfish CQ cost recovery fee submission (See Sec.  679.85).
    (10) Rockfish Ex-vessel Volume and Value Report--(i) Applicability. 
A rockfish processor that receives and purchases landings of rockfish 
CQ groundfish must submit annually to NMFS a complete Rockfish Ex-
vessel Volume and Value Report, as described in this paragraph (r)(10), 
for each reporting period for which the rockfish processor receives 
rockfish CQ groundfish.
    (ii) Reporting period. The reporting period of the Rockfish Ex-
vessel Volume and Value Report shall extend from May 1 through November 
15 of each year.
    (iii) Due date. A complete Rockfish Ex-vessel Volume and Value 
Report must be received by the Regional Administrator not later than 
December 1 of the year in which the rockfish processor received the 
rockfish CQ groundfish.
    (iv) Information required. (A) The rockfish processor must log in 
using the rockfish processor's password and NMFS person ID to submit a 
Rockfish Ex-vessel Volume and Value Report. The NMFS software autofills 
the rockfish processor's name. The User must review the autofilled 
cells to ensure that they are accurate. A completed application must 
contain the information specified on the Rockfish Ex-vessel Volume and 
Value Report with all applicable fields accurately filled-in.
    (B) Certification. By using the rockfish processor NMFS ID and 
password and submitting the report, the rockfish processor certifies 
that all information is true, correct, and complete to the best of his 
or her knowledge and belief.
    (v) Submittal. The rockfish processor must complete and submit 
online by electronic submission to NMFS the Rockfish Ex-vessel Volume 
and Value Report available at https://alaskafisheries.noaa.gov.

[[Page 52190]]

    5. In Sec.  679.7,
    a. Remove paragraphs (n)(1)(iv) through (viii), (n)(2)(iv), 
(n)(3)(ii) and (iv), and (n)(7);
    b. Redesignate paragraphs (n)(3)(iii) and (n)(8) as (n)(3)(ii) and 
(n)(7) respectively
    c. Revise newly redesignated paragraph (n)(3)(ii);
    d. Revise paragraphs (n)(1)(i) through (iii), (n)(2)(i) through 
(iii), (n)(4) through (n)(6); and
    e. Add paragraph (n)(8) to read as follows:


Sec.  679.7  Prohibitions.

* * * * *
    (n) * * *
    (1) * * *
    (i) Use an LLP license assigned to a rockfish cooperative in any 
other rockfish cooperative other than the rockfish cooperative to which 
that LLP license was initially assigned for that fishing year.
    (ii) Use an LLP license that was excluded from the Rockfish Program 
or that opted out of the Rockfish Program in any rockfish cooperative 
for that calendar year.
    (iii) Operate a vessel assigned to a rockfish cooperative in any 
other rockfish cooperative other than the rockfish cooperative to which 
that vessel was initially assigned for that fishing year.
    (2) Vessel operators participating in the Rockfish Program--(i) 
Operate a vessel that is assigned to a rockfish cooperative and fishing 
under a CQ permit and fail to follow the catch monitoring requirements 
detailed in Sec.  679.84(c) through (e).
    (ii) Operate a vessel that is subject to a sideboard limit detailed 
in Sec.  679.82(e), as applicable, and fail to follow the catch 
monitoring requirements detailed in Sec.  679.84(c) from July 1 until 
July 31, if that vessel is harvesting fish in the West Yakutat 
District, Central GOA, or Western GOA management areas.
    (iii) Operate a catcher/processor opt-out vessel, under Sec.  
679.81(f)(5), that is subject to sideboard provisions detailed in Sec.  
679.82(e) and (f), as applicable, and fail to follow the catch 
monitoring requirements detailed in Sec.  679.84(d) from July 1 until 
July 31, if that vessel is harvesting fish in the West Yakutat 
District, Central GOA, or Western GOA management areas.
    (3) * * *
    (i) * * *
    (ii) Operate a vessel that is subject to a sideboard limit detailed 
in Sec.  679.82(e) and fail to use functioning VMS equipment as 
described in Sec.  679.28(f) at all times when operating in a reporting 
area off Alaska from July 1 until July 31.
    (4) Catcher/processor vessels that opt-out. Operate a vessel that 
has opted-out of participating in a rockfish cooperative to directed 
fish for northern rockfish, Pacific ocean perch, or pelagic shelf 
rockfish in the Central GOA.
    (5) Rockfish processors. (i) Take deliveries of, or process, 
groundfish harvested by a catcher vessel fishing under the authority of 
a rockfish CQ permit unless operating as a shoreside processor.
    (ii) Process any groundfish delivered by a catcher vessel fishing 
under the authority of a CQ permit not weighed on a scale approved by 
the State of Alaska. The scale must meet the requirements specified in 
Sec.  679.28(c).
    (iii) Take deliveries of, or process, groundfish caught by a vessel 
fishing under the authority of a rockfish CQ permit without following 
an approved CMCP as described in Sec.  679.28(g). A copy of the CMCP 
must be maintained at the facility and made available to authorized 
officers or NMFS-authorized personnel upon request.
    (iv) Take deliveries of, or process, groundfish harvested by a 
catcher vessel fishing under the authority of a rockfish CQ permit 
outside of the geographic boundaries of the City of Kodiak as those 
boundaries are established by the State of Alaska on [INSERT THE 
EFFECTIVE DATE OF THIS FINAL RULE].
    (v) Fail to submit a timely and complete Rockfish Ex-vessel Volume 
and Value Report as required under Sec.  679.5(r)(10)
    (6) Rockfish cooperatives--(i) Fail to retain any rockfish primary 
species or rockfish secondary species caught by a vessel when that 
vessel is fishing under the authority of a CQ permit.
    (ii) Harvest rockfish primary species, rockfish secondary species, 
or use halibut PSC assigned to a rockfish cooperative in the Central 
GOA without a valid CQ permit.
    (iii) Begin a fishing trip for any Rockfish Program species with 
any vessel assigned to a rockfish cooperative if the total amount of 
unharvested CQ that is currently held by that rockfish cooperative is 
zero or less for any species for which CQ is assigned.
    (iv) Exceed any sideboard limit assigned to a rockfish cooperative 
in the catcher/processor sector.
    (v) Operate a vessel assigned to a rockfish cooperative to fish 
under a CQ permit unless the rockfish cooperative has notified NMFS 
that the vessel is fishing under a CQ permit as described under Sec.  
679.5(r)(8).
    (vi) Operate a vessel fishing under the authority of a CQ permit in 
the catcher vessel sector and to have any Pacific ocean perch, pelagic 
shelf rockfish, northern rockfish, sablefish, Pacific cod, or 
thornyhead rockfish aboard the vessel unless those fish were harvested 
under the authority of a CQ permit.
    (vii) Catch and process onboard a vessel any rockfish primary 
species or rockfish secondary species harvested under the authority of 
a CQ permit issued to the catcher vessel sector.
    (viii) Have a negative balance in a CQ account for any species for 
which CQ is assigned after the end of the calendar year for which a CQ 
permit was issued.
    (ix) Deliver rockfish primary species and rockfish secondary 
species harvested under the authority of a CQ permit to any processor 
other than a shoreside processor located within the geographic 
boundaries of the City of Kodiak as those boundaries are established by 
the State of Alaska on [INSERT THE EFFECTIVE DATE OF THIS FINAL RULE].
    (x) Fail to submit a timely and complete rockfish CQ cost recovery 
fee submission form as required under Sec.  679.5(r)(9).
    (7) Use caps. Exceed the use caps that apply under Sec.  679.82(a).
    (8) Rockfish entry level longline fishery--(i) Take deliveries of, 
or process, groundfish caught by a catcher vessel directed fishing in 
the rockfish entry level longline fishery unless operating as a 
shoreside processor.
    (ii) Deliver groundfish caught by a catcher vessel directed fishing 
in the rockfish entry level longline fishery to any processor other 
than a shoreside processor.
    (iii) Use any gear other than longline gear to directed fish for a 
rockfish primary species in the rockfish entry level longline fishery.
    (iv) Catch and process onboard a vessel any rockfish primary 
species harvested while directed fishing in the rockfish entry level 
longline fishery.
    (v) Deliver groundfish caught by a catcher vessel directed fishing 
in the rockfish entry level longline fishery fishing after NMFS has 
closed directed fishing to the he rockfish entry level longline fishery 
or November 15 of each calendar year, whichever occurs first.
* * * * *
    6. In Sec.  679.20,
    a. Add paragraph (e)(3)(iv) to read as follows:


Sec.  679.20  General limitations.

* * * * *
    (e) * * *
    (3) * * *
    (iv) The maximum retainable amount for groundfish harvested in the 
Central GOA by a catcher/processor vessel fishing under a rockfish 4CQ 
permit is

[[Page 52191]]

calculated at the end of each weekly reporting period, and is based on 
the basis species defined in Table 30 harvested since the previous 
weekly reporting period, or for any portion of a weekly reporting 
period that vessel was designated under a vessel check-in as specified 
in Sec.  679.5(r)(8).
* * * * *
    7. In Sec.  679.21,
    a. Revise paragraphs (d)(5)(iii)(B) and (d)(5)(iii)(B)(2) to read 
as follows:


Sec.  679.21  Prohibited species bycatch management.

* * * * *
    (d) * * *
    (5) * * *
    (iii) * * *
    (B) An amount not greater than 55 percent of the halibut PSC that 
had been allocated as CQ and that has not been used by a rockfish 
cooperative will be added to the last seasonal apportionment for trawl 
gear during the current fishing year:
    (1) * * *
    (2) After the effective date of a termination of fishing 
declaration according to the provisions set out in Sec.  679.4(n)(2), 
whichever occurs first.
* * * * *
    8. In Sec.  679.28,
    a. Revise paragraph (g)(2)(iii) and
    b. Add paragraph (g)(7)(xi) to read as follows:


Sec.  679.28  Equipment and operational requirements.

* * * * *
    (g) * * *
    (2) * * *
    (iii) Rockfish Program, unless those fish are harvested under the 
rockfish entry level longline fishery as described under Sec.  679.83.
* * * * *
    (7) * * *
    (xi) CMCP specialist notification. For shoreside processors 
receiving deliveries of groundfish harvested under the authority of a 
Rockfish CQ permit, describe how the CMCP specialist will be notified 
of deliveries of groundfish harvested under the authority of a Rockfish 
CQ permit.
* * * * *
    9. In Sec.  679.50,
    a. Remove paragraphs (c)(7)(i)(B) and (d)(7);
    b. Redesignate paragraphs (c)(7)(i)(C) through (F) as (c)(7)(i)(B) 
through (E), respectively;
    c. Revise paragraphs (a)(4), (c)(7)(i) heading, (c)(7)(i)(A) 
introductory text, and (c)(7)(ii);
    d. Revise newly redesignated paragraphs (c)(7)(i)(B) and 
(c)(7)(i)(E); and
    e. Add paragraph (c)(7)(iii) to read as follows:


Sec.  679.50  Groundfish Observer Program.

    (a) * * *

----------------------------------------------------------------------------------------------------------------
                                                                                               Shoreside and
            Program              Catcher/processor   Catcher vessels      Motherships       stationary floating
                                                                                                processors
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
(4) Rockfish Program...........  (c)(7)(i)........  (c)(7)(ii).......  N/A..............  (d)(1) through (4).
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
    (c) * * *
    (7) * * *
    (i) Catcher/processor--(A) Rockfish cooperative. A catcher/
processor that is named on an LLP license that is assigned to a 
rockfish cooperative and is fishing under the authority of a CQ permit 
must have at least two NMFS-certified observers onboard for each day 
that the vessel is used to harvest or process in the Central GOA from 
May 1 through the earlier of:
* * * * *
    (B) Rockfish sideboard fishery for catcher/processors in a rockfish 
cooperative. A catcher/processor that is subject to a sideboard limit 
as described under Sec.  679.82(e) must have at least two NMFS-
certified observers onboard for each day that the vessel is used to 
harvest or process fish in the West Yakutat District, Central GOA, or 
Western GOA management areas from July 1 through July 31.
* * * * *
    (E) Sideboard fishery for catcher/processors not in a rockfish 
cooperative. A catcher/processor vessel that is subject to a sideboard 
limit as described under Sec.  679.82(e) and (f), must have at least 
one NMFS-certified observer onboard for each day that the vessel is 
used to harvest or process in the West Yakutat District, Central GOA, 
or Western GOA management areas from July 1 through July 31.
    (ii) Catcher vessels--rockfish cooperative. A catcher vessel that 
is named on an LLP license that is assigned to a rockfish cooperative 
and fishing under the authority of a CQ permit must have a NMFS-
certified observer onboard at all times the vessel is used to harvest 
fish in the Central GOA from May 1 through the earlier of:
    (A) November 15; or
    (B) The effective date and time of an approved rockfish cooperative 
termination of fishing declaration.
    (iii) Observer coverage limitations. Observer coverage requirements 
under paragraph (c)(7) of this section are in addition to observer 
coverage requirements in other fisheries. Observer coverage of 
groundfish harvested by vessels described under paragraph (c)(7) of 
this section are not counted for purposes of meeting minimum observer 
coverage requirements applicable to any groundfish fishery described 
under paragraphs (c)(2)(i) through (c)(2)(vi) of this section.
* * * * *
    10. Subpart G is revised, to read as follows:

Subpart G--Rockfish Program
Sec.
679.80 Initial allocation of rockfish QS.
679.81 Rockfish Program annual harvester and processor privileges.
679.82 Rockfish Program use caps and sideboard limits.
679.83 Rockfish Program entry level fishery.
679.84 Rockfish Program recordkeeping, permits, monitoring, and 
catch accounting.
679.85 Cost recovery.

Subpart G--Rockfish Program


Sec.  679.80  Allocation and transfer of rockfish QS.

    Additional regulations that implement specific portions of the

[[Page 52192]]

Rockfish Program are set out under: Sec.  679.2 Definitions, Sec.  
679.4 Permits, Sec.  679.5 Recordkeeping and reporting, Sec.  679.7 
Prohibitions, Sec.  679.20 General limitations, Sec.  679.21 Prohibited 
species bycatch management, Sec.  679.28 Equipment and operational 
requirements, and Sec.  679.50 Groundfish Observer Program.
    (a) Applicable areas and duration--(1) Applicable areas. The 
Rockfish Program applies to Rockfish Program fisheries in the Central 
GOA Regulatory Area.
    (2) Duration. The Rockfish Program authorized under this part 679 
expires on December 31, 2021.
    (3) Seasons. The following fishing seasons apply to fishing under 
this subpart subject to other provisions of this part:
    (i) Rockfish entry level longline fishery. Fishing by vessels 
participating in the rockfish entry level longline fishery is 
authorized from 0001 hours, A.l.t., January 1 through 1200 hours, 
A.l.t., November 15.
    (ii) Rockfish cooperative. Fishing by vessels participating in a 
rockfish cooperative is authorized from 1200 hours, A.l.t., May 1 
through 1200 hours, A.l.t., November 15.
    (b) Rockfish legal landings--(1) Eligible LLP licenses. NMFS will 
assign rockfish legal landings to an LLP license only if a vessel made 
those landings:
    (i) Under the authority of a permanent fully transferable LLP 
license endorsed for Central GOA groundfish with a trawl gear 
designation during the season dates for a rockfish primary species as 
established in Table 28a to this part;
    (ii) Under the authority of an interim LLP license endorsed for 
Central GOA groundfish with a trawl gear designation during the season 
dates for that rockfish primary species as established in Table 28a to 
this part; provided that:
    (A) NMFS has determined that interim LLP license is ineligible to 
receive a designation as a permanent LLP license endorsed for Central 
GOA groundfish with a trawl gear designation; and
    (B) A permanent fully transferable LLP license endorsed for Central 
GOA groundfish with a trawl gear designation was assigned to the vessel 
that made legal rockfish landings under the authority of an interim LLP 
license endorsed for Central GOA groundfish prior to December 31, 2003, 
and was continuously assigned to that vessel through June 14, 2010; or
    (iii) Under the authority of a permanent fully transferable LLP 
license endorsed for Central GOA groundfish with a trawl gear 
designation during the season dates for the entry level trawl fishery 
in 2007, 2008, or 2009 for a rockfish primary species as established in 
Table 28b to this part.
    (2) Assigning rockfish legal landings to an LLP license--(i) NMFS 
will assign rockfish legal landings to an LLP license only if the 
holder of the LLP license with those landings submits a timely 
application for Rockfish QS, in paragraph (d) of this section, that is 
approved by NMFS.
    (ii) NMFS will assign rockfish legal landings made under the 
authority of an interim LLP license that meets the requirements in 
paragraph (b)(1)(ii) of this section, to the permanent fully 
transferable LLP license specified in paragraph (b)(1)(ii)(B) of this 
section. NMFS will not assign any legal rockfish landings made under 
the authority of the permanent fully transferable LLP license specified 
in paragraph (b)(1)(ii)(B) of this section prior to the date that 
permanent fully transferable LLP license was assigned to the vessel 
that made legal rockfish landings under the authority of an interim LLP 
license specified in paragraph (b)(1)(i) of this section.
    (3) Rockfish landings assigned to the catcher/processor sector. A 
rockfish legal landing for a rockfish primary species is assigned to 
the catcher/processor sector if:
    (i) The rockfish legal landings of that rockfish primary species 
was harvested and processed onboard a vessel during the season dates 
for that rockfish primary species as established in Table 28a to this 
part; and
    (ii) The rockfish legal landings were made under the authority of 
an eligible LLP license that is endorsed for Central GOA groundfish 
fisheries with trawl gear with a catcher/processor designation.
    (4) Rockfish legal landings assigned to the catcher vessel sector. 
A rockfish legal landing for a rockfish primary species is assigned to 
the catcher vessel sector if:
    (i) The rockfish legal landings of that rockfish primary species 
were harvested and not processed onboard a vessel during the season 
dates for that rockfish primary species as established under Table 28a 
or 28b to this part; and
    (ii) The rockfish legal landings were made under the authority of 
an eligible LLP license that is endorsed for Central GOA groundfish 
fisheries with trawl gear.
    (c) Rockfish Program official record--(1) Use of the Rockfish 
Program official record. The Rockfish Program official record will 
contain information used by the Regional Administrator to determine:
    (i) The amount of rockfish legal landings assigned to an LLP 
license;
    (ii) The amount of rockfish QS resulting from rockfish legal 
landings assigned to an LLP license held by a rockfish eligible 
harvester;
    (iii) Rockfish sideboard ratios assigned to an LLP license;
    (iv) Eligibility to participate in the Rockfish Program and assign 
specific harvest privileges to Rockfish Program participants.
    (2) Presumption of correctness. The Rockfish Program official 
record is presumed to be correct. An applicant to participate in the 
Rockfish Program has the burden to prove otherwise. For the purposes of 
creating the Rockfish Program official record, the Regional 
Administrator will presume the following:
    (i) An LLP license has been used onboard the same vessel from which 
that LLP license was derived during the calendar years 2000 and 2001, 
unless clear and unambiguous written documentation is provided that 
establishes otherwise.
    (ii) If more than one person is claiming the same rockfish legal 
landing, then each LLP license for which the rockfish legal landing is 
being claimed will receive an equal division of credit for the landing 
unless the applicants can provide written documentation that 
establishes an alternative means for distributing the catch history to 
the LLP licenses.
    (3) Documentation. Only rockfish legal landings, as defined in 
Sec.  679.2, shall be used to establish an allocation of rockfish QS.
    (4) Non-severability of rockfish legal landings. Rockfish legal 
landings are non-severable from the LLP license to which those rockfish 
legal landings are assigned according to the Rockfish Program official 
record.
    (d) Application for rockfish QS--(1) Submission of application for 
rockfish QS. A person who wishes to receive rockfish QS to participate 
in the Rockfish Program as a rockfish eligible harvester must submit a 
timely and complete Application for Rockfish Quota Share. This 
application may only be submitted to NMFS using the methods described 
on the application.
    (2) Forms. Forms are available through the internet on the NMFS 
Alaska Region Web site at http://alaskafisheries.noaa.gov, or by 
contacting NMFS at 800-304-4846, Option 2.
    (3) Deadline--(i) A completed Application for Rockfish Quota Share 
must be received by NMFS no later than 1700 hours, A.l.t., on January 
3, 2012, or if sent by U.S. mail, postmarked by that

[[Page 52193]]

time. For applications delivered by hand delivery or carrier only, the 
receiving date of signature by NMFS staff is the date the application 
was received. If the application is submitted by facsimile, the 
receiving date of the application is the date stamped received by NMFS.
    (ii) Objective written evidence of timely application will be 
considered proof of a timely application.
    (4) Contents of application. A completed application must contain 
the information specified on the Application for Rockfish Quota Share 
identifying the applicant and LLP license numbers, with all applicable 
fields accurately filled-in and all required documentation attached.
    (i) Additional documentation--(A) Vessel names, ADF&G vessel 
registration numbers, and USCG documentation numbers of all vessels 
that fished under the authority of each LLP license, including dates 
when landings were made under the authority of an LLP license for 2000 
and 2001;
    (B) Indicate (YES or NO) if the applicant is applying to 
participate in the Rockfish Program based on rockfish legal landings 
made during the rockfish entry level trawl fishery in 2007, 2008, or 
2009; and,
    (C) For an applicant who holds an LLP license that made rockfish 
legal landings during the fishery seasons established in Table 28a to 
this part and during the entry level trawl fishery during 2007, 2008, 
or 2009 established in Table 28b to this part, indicate whether you 
wish to receive rockfish QS based on rockfish legal landings during the 
fishery seasons established in Table 28a or Table 28b to this part.
    (ii) Exclusion from Rockfish Program for LLP licenses with rockfish 
legal landings. A person who holds an LLP license that made rockfish 
legal landings during the fishery seasons established in Table 28a to 
this part and during the entry level trawl fishery during 2007, 2008, 
or 2009 established in Table 28b to this part may choose to be excluded 
from the Rockfish Program and not receive rockfish QS. A person must 
submit an application for rockfish QS affirming exclusion from the 
Rockfish Program and forgo all rockfish QS.
    (iii) Applicant signature and certification. The applicant must 
sign and date the application certifying that all information is true, 
correct, and complete to the best of his or her knowledge and belief. 
If the application is completed by a designated representative, then 
explicit authorization signed by the applicant must accompany the 
application.
    (5) Application evaluation. The Regional Administrator will 
evaluate applications received as specified in paragraph (d)(4) of this 
section and compare all claims in an application with the information 
in the Rockfish Program official record. Application claims that are 
consistent with information in the Rockfish Program official record 
will be approved by the Regional Administrator. Application claims that 
are inconsistent with Rockfish Program official record, unless verified 
by sufficient documentation, will not be approved. An applicant who 
submits inconsistent claims, or an applicant who fails to submit the 
information specified in paragraph (d)(4) of this section, will be 
provided a single 30-day evidentiary period to submit the specified 
information, submit evidence to verify his or her inconsistent claims, 
or submit a revised application with claims consistent with information 
in the Rockfish Program official record. An applicant who submits 
claims that are inconsistent with information in the Rockfish Program 
official record has the burden of proving that the submitted claims are 
correct. Any claims that remain inconsistent or that are not accepted 
after the 30-day evidentiary period will be denied, and the applicant 
will be notified by an initial administrative determination (IAD) of 
his or her appeal rights under Sec.  679.43.
    (6) Appeals. If an applicant is notified by an IAD that claims made 
by the applicant have been denied, that applicant may appeal that IAD 
under the provisions in Sec.  679.43.
    (e) Assigning rockfish QS--(1) General. The Regional Administrator 
will assign rockfish QS only to a person who submits a timely 
application for rockfish QS that is approved by NMFS based on:
    (i) The amount of rockfish legal landings assigned to an LLP 
license as established in paragraph (e)(2) of this section; or
    (ii) The number of years during which a person made a rockfish 
legal landing under the authority of an LLP license in the entry level 
trawl fishery during 2007, 2008, or 2009 as established in paragraph 
(e)(3) of this section.
    (2) Calculation of rockfish QS allocation for LLP licenses. Based 
on the Rockfish Program official record, the Regional Administrator 
shall determine the initial allocation of rockfish QS for each rockfish 
primary species assigned to each LLP license indicated on a timely and 
complete Application for Rockfish QS that is approved by NMFS, and that 
qualifies for an allocation of QS based on rockfish legal landings from 
2000 to 2006 (and that is not assigned rockfish QS under the entry 
level trawl fishery transition allocation under the provisions in 
paragraph (e)(3) of this section), according to the following 
procedure:
    (i) Sum the rockfish legal landings for each rockfish primary 
species ``s'' for each eligible LLP license ``l'' for each year during 
the fishery seasons established in Table 28a to this part. For purposes 
of this calculation, the Regional Administrator will not assign any 
amount of rockfish legal landings to an LLP license that is assigned 
rockfish QS under the provisions in paragraph (e)(3) of this section. 
This yields the Rockfish Total Catch for each rockfish primary species 
for each year.
    (ii) For each rockfish primary species, sum the highest 5 years of 
Rockfish Total Catch for each eligible LLP license described under 
paragraph (e)(2)(i) of this section. This yields the Highest 5 
Years<INF>ls</INF>. This amount is equal to the number of rockfish QS 
units for that LLP license for that rockfish primary species.
    (iii) Sum the Highest 5 Years<INF>ls</INF> in paragraph (e)(2)(ii) 
of this section of all eligible LLP licenses for each rockfish primary 
species. The result is the [sum] Highest 5 Years<INF>ls</INF>. (or All 
Highest 5 Years<INF>s).</INF>
    (3) Calculation of rockfish QS allocation for LLP licenses that 
receive rockfish QS under the entry level trawl fishery transition 
allocation. Based on the Rockfish Program official record, the Regional 
Administrator shall determine the initial allocation of rockfish QS for 
each rockfish primary species assigned to each LLP license indicated on 
a timely and complete application for rockfish QS that is approved by 
NMFS, that qualifies for an allocation of QS based on rockfish legal 
landings from 2007, 2008, or 2009 under the entry level trawl fishery 
transition allocation (and that is not assigned rockfish QS under the 
provisions in paragraph (e)(2) of this section), according to the 
following procedure:
    (i) Assign one Rockfish Landing Unit to an LLP license for each 
year a rockfish legal landing of any rockfish primary species was made 
under the authority of an LLP license during the season dates for the 
entry level trawl fishery in 2007, 2008, or 2009 as established in 
Table 28b to this part. This yields the Rockfish Landing 
Units<INF>l.</INF> For purposes of this calculation, the Regional 
Administrator will not assign any Rockfish Landing Units to an LLP 
license that is assigned rockfish QS under the provisions in paragraph 
(e)(2) of this section.

[[Page 52194]]

    (ii) Sum the Rockfish Landing Units of all eligible LLP licenses.
    (iii) Divide the Rockfish Landing Units<INF>l</INF> in paragraph 
(e)(3)(i) of this section for an LLP license by the sum of all Rockfish 
Landing Units<INF>l</INF> of all eligible LLP licenses in paragraph 
(e)(3)(ii) of this section. The result is the Percentage of the Total 
Entry Level Trawl Fishery Transition Rockfish QS Pool<INF>l</INF> as 
presented in the following equation:

Rockfish Landing Units<INF>l</INF>/[sum] Rockfish Landing 
Units<INF>l</INF> = Percentage of the Total Entry Level Trawl Fishery 
Transition Rockfish QS pool<INF>l.</INF>

    (iv) Determine the Total Entry Level Trawl Fishery Transition 
Rockfish QS pool for each rockfish primary species ``s'' as presented 
in the following equation:

([sum] All Highest 5 Years<INF>s</INF>/0.975) -[sum] All Highest 5 
Years<INF>s</INF> (as calculated in paragraph (e)(2)(iii) of this 
section) = Total Entry Level Trawl Fishery Transition Rockfish QS 
pool<INF>s</INF>

    (v) Multiply the Percentage of the Total Entry Level Trawl Fishery 
Transition Rockfish QS pool for each LLP license, as calculated in 
paragraph (e)(3)(iii) of this section, by the Total Entry Level Trawl 
Fishery Transition Rockfish QS pool for each rockfish primary species, 
as calculated in paragraph (e)(3)(iv) of this section. This yields the 
number of rockfish QS units for that LLP license for that rockfish 
primary species.
    (vi) All rockfish QS units calculated in paragraph (e)(3)(v) of 
this section are assigned to the catcher vessel sector.
    (4) Rockfish initial QS pool. The rockfish initial QS pool for each 
rockfish primary species, and for each sector, is equal to the sum of 
all QS units assigned to LLP licenses, and in each sector, as 
calculated under paragraphs (e)(2) and (e)(3) of this section as of 
January 31, 2012.
    (5) Non-severability of rockfish QS from an LLP license. Rockfish 
QS assigned to an LLP license is non-severable from that LLP license, 
except as provided for under Sec.  679.80(f)(2).
    (f) Transfer of rockfish QS--(1) Transfer of rockfish QS. A person 
may transfer an LLP license, and any rockfish QS assigned to that LLP 
license under the provisions in Sec.  679.4(k)(7), provided that the 
LLP license is not assigned rockfish QS in excess of the use cap 
specified in Sec.  679.82(a)(2) at the time of transfer.
    (2) Transfer of rockfish QS assigned to LLP licenses that exceeds 
rockfish QS use caps.
    (i) If an LLP license is assigned an initial allocation of 
aggregate rockfish QS that exceeds a use cap specified in Sec.  
679.82(a)(2), the LLP license holder may transfer rockfish QS in excess 
of the use cap specified in Sec.  679.82(a)(2) separate from that LLP 
license and assign it to one or more LLP licenses. On completion of the 
transfer, any LLP license assigned rockfish QS from the LLP license 
that was initially allocated an amount of aggregate rockfish QS in 
excess of the use cap may not exceed the use cap specified in Sec.  
679.82(a)(2).
    (ii) Prior to the transfer of an LLP license that is assigned an 
initial allocation of aggregate rockfish QS that exceeds a use cap 
specified in Sec.  679.82(a)(2), the LLP license holder must transfer 
the rockfish QS that is in excess of the use cap specified in Sec.  
679.82(a)(2), separate from that LLP license, and assign it to one or 
more LLP licenses under paragraph (f)(1)(i) of this section. On 
completion of the transfer of QS, the LLP license that was initially 
allocated an amount of aggregate rockfish QS in excess of the use cap 
may not exceed the use cap specified in Sec.  679.82(a)(2).
    (iii) Any rockfish QS associated with the LLP license that is in 
excess of the use cap may be transferred only if Block C of the 
Application for Transfer License Limitation Program Groundfish/Crab 
License is filled out entirely.
    (iv) Rockfish QS may only be transferred to an LLP license that has 
been assigned rockfish QS with the same sector designation as the 
rockfish QS to be transferred.
    (v) Rockfish QS that is transferred from an LLP license that was 
initially allocated an amount of aggregate rockfish QS in excess of the 
use cap specified in Sec.  679.82(a)(2) and assigned to another LLP 
license may not be severed from the receiving LLP license.


Sec.  679.81  Rockfish Program annual harvester privileges.

    (a) Sector and LLP license allocations of rockfish primary 
species--(1) General. Each calendar year, the Regional Administrator 
will determine the tonnage of rockfish primary species that will be 
assigned to participants in a rockfish cooperative. This amount will be 
assigned to rockfish cooperatives in the catcher/processor sector or 
the catcher vessel sector.
    (2) Calculation--(i) The amount of rockfish primary species ``s'' 
allocated to the Rockfish Program is calculated by deducting the 
incidental catch allowance the Regional Administrator determines is 
required on an annual basis in other non-target fisheries from the TAC. 
The remaining TAC for that rockfish primary species (TAC<INF>s</INF>) 
is assigned for use by the rockfish entry level longline fishery and 
rockfish cooperatives.
    (ii) The allocation of TAC<INF>s</INF> for each rockfish primary 
species to the rockfish entry level longline fishery is established in 
Table 28e to this part.
    (iii) The allocation of TAC<INF>s</INF> to rockfish cooperatives is 
equal to the amount remaining after allocation to the rockfish entry 
level longline fishery (cooperative TACs).
    (b) Allocations of rockfish primary species CQ to rockfish 
cooperatives--(1) Rockfish primary species TACs assigned to the 
catcher/processor and catcher vessel sector. Cooperative TACs assigned 
for a rockfish primary species will be divided between the catcher/
processor sector and the catcher vessel sector. Each sector will 
receive a percentage of cooperative TAC<INF>s</INF> for each rockfish 
primary species equal to the sum of the rockfish QS units assigned to 
all LLP licenses that receive rockfish QS in that sector divided by the 
rockfish QS pool for that rockfish primary species. Expressed 
algebraically for each rockfish primary species ``s'' in paragraphs 
(b)(1)(i) and (ii) of this section:
    (i) Catcher/Processor Sector TAC<INF>s</INF> = [(Cooperative 
TAC<INF>s</INF>) x (Rockfish QS Units in the Catcher/Processor 
Sector<INF>s</INF>/Rockfish QS Pool<INF>s</INF>)].
    (ii) Catcher Vessel Sector TAC<INF>s</INF> = [(Cooperative 
TAC<INF>s</INF>) x (Rockfish QS Units in the Catcher Vessel 
Sector<INF>s</INF>/Rockfish QS Pool<INF>s</INF>)].
    (2) Allocations of rockfish primary species to rockfish 
cooperatives. TAC is assigned to each rockfish cooperative based on the 
rockfish QS assigned to that fishery in each sector according to the 
following procedures:
    (i) Catcher vessel sector rockfish cooperatives. The amount of 
TAC<INF>s</INF> for each rockfish primary species assigned to a catcher 
vessel rockfish cooperative is equal to the amount of rockfish QS units 
assigned to that rockfish cooperative divided by the total rockfish QS 
assigned to rockfish cooperatives in the catcher vessel sector 
multiplied by the catcher vessel TAC<INF>s</INF>. Once TAC<INF>s</INF> 
for a rockfish primary species is assigned to a catcher vessel rockfish 
cooperative, it is issued as CQ specific to that rockfish cooperative. 
The amount of CQ for each rockfish primary species that is assigned to 
a rockfish cooperative is expressed algebraically as follows:

CQ<INF>s</INF> = [(Catcher Vessel Sector TAC<INF>s</INF>) x (Rockfish 
QS assigned to that rockfish cooperative<INF>s</INF>/Rockfish QS Units 
assigned to all rockfish cooperatives in the Catcher Vessel 
Sector<INF>s</INF>)].

    (ii) Catcher/processor sector rockfish cooperatives. The amount of 
TAC<INF>s</INF> for

[[Page 52195]]

each rockfish primary species assigned to a catcher/processor rockfish 
cooperative is equal to the amount of rockfish QS units assigned to 
that rockfish cooperative divided by the sum of the rockfish QS units 
assigned to rockfish cooperatives in the catcher/processor sector 
multiplied by the catcher/processor TAC<INF>s</INF>. Once TAC for a 
rockfish primary species is assigned to a catcher/processor rockfish 
cooperative, it is issued as CQ specific to that rockfish cooperative. 
The amount of CQ for each rockfish primary species that is assigned to 
a rockfish cooperative is expressed algebraically as follows:

CQ = [(Catcher/Processor Sector TAC<INF>s</INF>) x (Rockfish QS Units 
assigned to that rockfish cooperative/Rockfish QS Units assigned to all 
rockfish cooperatives in the Catcher/Processor Sector)].

    (c) Allocations of rockfish secondary species CQ to rockfish 
cooperatives-- (1) General. Each calendar year, the Regional 
Administrator will determine the tonnage of rockfish secondary species 
that may be assigned to the rockfish cooperatives as rockfish CQ. This 
amount will be assigned to the rockfish cooperatives in the catcher/
processor sector and the catcher vessel sector.
    (2) Amount of rockfish secondary species tonnage assigned. The 
amount of rockfish secondary species tonnage that may be assigned to 
the catcher/processor sector and the catcher vessel sector is specified 
in Table 28c to this part.
    (3) Assignment of rockfish secondary species. Rockfish secondary 
species will be assigned only to rockfish cooperatives.
    (4) Determining the amount of rockfish secondary species CQ 
assigned to a rockfish cooperative. The amount of CQ for each rockfish 
secondary species that is assigned to each rockfish cooperative is 
determined according to the following procedures:
    (i) CQ assigned to rockfish cooperatives in the catcher/processor 
sector. The CQ for a rockfish secondary species that is assigned to a 
catcher/processor rockfish cooperative is equal to the amount of that 
rockfish secondary species allocated to the catcher/processor sector in 
the Rockfish Program as specified in Table 28c to this part, multiplied 
by the sum of the rockfish QS units for all rockfish primary species 
assigned to that catcher/processor rockfish cooperative divided by the 
sum of the rockfish QS units assigned to rockfish cooperatives for all 
rockfish primary species in the catcher/processor sector. Expressed 
algebraically in the following equation:

    CQ for that Secondary Species = Amount of that rockfish secondary 
species allocated to the catcher/processor sector in the Rockfish 
Program x ([sum] Rockfish QS units for all rockfish primary species 
assigned to that rockfish cooperative/[sum] Rockfish QS units for all 
rockfish primary species assigned to all rockfish cooperatives in the 
catcher/processor sector).

    (ii) CQ assigned to rockfish cooperatives in the catcher vessel 
sector. The CQ for a rockfish secondary species that is assigned to a 
catcher vessel rockfish cooperative is equal to the amount of that 
rockfish secondary species allocated to the catcher vessel sector in 
the Rockfish Program as specified in Table 28c to this part, multiplied 
by the sum of the rockfish QS units for all rockfish primary species 
assigned to that catcher vessel rockfish cooperative divided by the sum 
of the rockfish QS units assigned to rockfish cooperatives for all 
rockfish primary species in the catcher vessel sector. Expressed 
algebraically in the following equation:

CQ for that Secondary Species = Amount of that rockfish secondary 
species allocated to the catcher vessel sector in the Rockfish Program 
x ([sum] Rockfish QS units for all rockfish primary species assigned to 
that rockfish cooperative/[sum] Rockfish QS units assigned to all 
rockfish cooperatives for all rockfish primary species in the catcher 
vessel sector).

    (d) Allocations of rockfish halibut PSC CQ to rockfish 
cooperatives--(1) General. Each calendar year, the Regional 
Administrator will determine the tonnage of rockfish halibut PSC that 
will be assigned to the Rockfish Program. This amount will be allocated 
appropriately to the catcher/processor sector and the catcher vessel 
sector. The tonnage of rockfish halibut PSC assigned to a sector will 
be further assigned as CQ only to rockfish cooperative(s) within that 
sector.
    (2) Amount of halibut PSC that may be assigned--(i) The amount of 
halibut PSC that may be assigned to the catcher vessel and catcher/
processor sectors is specified in Table 28d to this part.
    (ii) The amount of halibut PSC that is not assigned to the catcher 
vessel and catcher/processor sectors as specified in Table 28d to this 
part will not be assigned for use as halibut PSC or as halibut IFQ.
    (3) Use of rockfish halibut PSC by a rockfish eligible harvester--
(i) Rockfish halibut PSC assigned to a sector will be assigned only to 
rockfish cooperatives within that sector.
    (ii) Rockfish halibut PSC specified in Table 28d is not assigned to 
rockfish opt-out vessels.
    (iii) Rockfish halibut PSC specified in Table 28d is not assigned 
to the rockfish entry level longline fishery.
    (4) Determining the amount of rockfish halibut PSC CQ assigned to a 
rockfish cooperative. The amount of rockfish halibut PSC CQ that is 
assigned to each rockfish cooperative is determined according to the 
following procedures:
    (i) CQ assigned to rockfish cooperatives in the catcher/processor 
sector. The CQ for halibut PSC that is assigned to a catcher/processor 
rockfish cooperative is equal to the amount of halibut PSC allocated to 
the catcher/processor sector in the Rockfish Program as specified in 
Table 28d to this part, multiplied by the sum of the rockfish QS units 
for all rockfish primary species assigned to that catcher/processor 
rockfish cooperative divided by the sum of the rockfish QS units 
assigned to rockfish cooperatives for all rockfish primary species in 
the catcher/processor sector. This is expressed algebraically in the 
following equation:

CQ for rockfish halibut PSC = Amount halibut PSC allocated to the 
catcher/processor sector in the Rockfish Program x ([sum] Rockfish QS 
units assigned to that rockfish cooperative/[sum] Rockfish QS units 
assigned to all rockfish cooperatives in the catcher/processor sector).

    (ii) CQ assigned to rockfish cooperatives in the catcher vessel 
sector. The CQ for halibut PSC that is assigned to a catcher vessel 
rockfish cooperative is equal to the amount of halibut PSC allocated to 
the catcher vessel sector in the Rockfish Program as specified in Table 
28d to this part, multiplied by the sum of the rockfish QS units for 
all rockfish primary species assigned to that catcher vessel rockfish 
cooperative divided by the sum of the rockfish QS units assigned to 
rockfish cooperatives for all rockfish primary species in the catcher 
vessel sector. This is expressed algebraically in the following 
equation:

CQ for rockfish halibut PSC = Amount halibut PSC allocated to the 
catcher vessel sector in the Rockfish Program x ([sum] Rockfish QS 
units assigned to that rockfish cooperative/[sum] Rockfish QS units 
assigned to all rockfish cooperatives in the catcher vessel sector).

    (e) Assigning rockfish QS to a rockfish cooperative--(1) General. 
Each calendar year, a person that is participating in the

[[Page 52196]]

Rockfish Program may assign an LLP license and the rockfish QS assigned 
to that LLP license to a Rockfish cooperative. A rockfish eligible 
harvester assigns rockfish QS to a rockfish cooperative on a complete 
application for CQ that is approved by NMFS and that meets the 
requirements of paragraph (f) of this section.
    (i) An LLP license and rockfish QS may be assigned to a catcher 
vessel cooperative if that rockfish QS is derived from legal rockfish 
landings assigned to the catcher vessel sector.
    (ii) An LLP license and rockfish QS may be assigned to a catcher/
processor cooperative if that rockfish QS is derived from rockfish 
legal landings assigned to the catcher/processor sector.
    (2) Catcher/Processor opt-out. Each calendar year, a person holding 
an LLP license assigned rockfish QS in the catcher/processor sector may 
opt-out of participating in a rockfish cooperative by completing a 
timely Application to Opt-out of Rockfish Cooperative that is approved 
by NMFS. A person may not assign an LLP license assigned rockfish QS in 
the catcher/processor sector to both a rockfish cooperative and opt-out 
of participating in a rockfish cooperative.
    (f) Annual Applications for the Rockfish Program--(1) General. 
Applications to participate in the Rockfish Program are required to be 
submitted each calendar year. To receive rockfish CQ, a designated 
rockfish cooperative representative must submit a complete application 
for rockfish CQ. A person who wishes to opt-out of participating in a 
rockfish cooperative for a calendar year with an LLP license assigned 
rockfish QS must submit an Application to Opt-out of Rockfish 
Cooperative. These applications may only be submitted to NMFS using the 
methods described on the application.
    (2) Application forms. Application forms are available on the NMFS 
Alaska Region Web site at http://alaskafisheries.noaa.gov, or by 
contacting NMFS at 800-304-4846, Option 2.
    (3) Deadline--(i) A completed application must be received by NMFS 
no later than 1700 hours, A.l.t., on March 1 of each year, or if sent 
by U.S. mail, the application must be postmarked by that time. For 
applications delivered by hand delivery or carrier only, the receiving 
date of signature by NMFS staff is the date the application was 
received. If the application is submitted by facsimile, the receiving 
date of the application is the date stamped received by NMFS.
    (ii) Objective written evidence of timely application will be 
considered as proof of a timely application.
    (4) Application for Rockfish Cooperative Fishing Quota (CQ). If a 
designated rockfish cooperative representative submits a complete 
application that is approved by NMFS, the cooperative will receive a CQ 
permit. The CQ permit will list the amount of CQ, by rockfish primary 
species, rockfish secondary species, and halibut PSC held by the 
rockfish cooperative, the members of the rockfish cooperative, LLP 
licenses assigned to that rockfish cooperative, and the vessels that 
are authorized to harvest fish under that CQ permit.
    (i) Contents of the Application--(A) General information. A 
completed application must contain the information specified on the 
Application for Rockfish Cooperative Fishing Quota identifying the 
rockfish cooperative, members of the cooperative, and processor 
associate of a catcher vessel rockfish cooperative, with all applicable 
fields accurately filled-in and all required documentation attached.
    (B) Additional documentation. For the cooperative application to be 
considered complete, the following documents must be attached to the 
application:
    (1) A copy of the business license issued by the state in which the 
rockfish cooperative is registered as a business entity;
    (2) A copy of the articles of incorporation or partnership 
agreement of the rockfish cooperative;
    (3) Provide the names of all persons, to the individual level, 
holding an ownership interest in the LLP license and the percentage 
ownership each person and individual holds in the LLP license;
    (4) A copy of the rockfish cooperative agreement signed by the 
members of the rockfish cooperative (if different from the articles of 
incorporation or partnership agreement of the rockfish cooperative) 
that includes terms that specify that:
    (i) Rockfish QS holders affiliated with rockfish processors cannot 
participate in price setting negotiations except as permitted by 
general antitrust law;
    (ii) The rockfish cooperative must establish a monitoring program 
sufficient to ensure compliance with the Rockfish Program;
    (iii) The proposed fishing plan to be used by members of the 
cooperative, including any proposed cooperative specific monitoring 
procedures and any voluntary codes of conduct that apply to the members 
of the cooperative, if applicable; and
    (iv) Terms and conditions to specify the obligations of rockfish QS 
holders who are members of the rockfish cooperative to ensure the full 
payment of rockfish cost recovery fees that may be due.
    (C) Applicant signature and certification. The applicant, including 
the processor associate of the rockfish cooperative, must sign and date 
the application certifying that all information is true, correct, and 
complete to the best of his or her knowledge and belief. If the 
application is completed by a designated representative, then explicit 
authorization signed by the applicant must accompany the application.
    (ii) Issuance of CQ. NMFS will not issue a CQ permit if an 
application is not complete and approved by NMFS. Issuance by NMFS of a 
CQ permit is not a determination that the rockfish cooperative is 
formed or is operating in compliance with antitrust law.
    (5) Application to Opt-out of Rockfish Cooperative. An LLP license 
holder with a catcher/processor operation type and rockfish QS assigned 
to that LLP license who wishes to opt-out of participating in a 
rockfish cooperative for a calendar year must submit an application.
    (i) General information. A completed application must contain the 
information specified on the application identifying the applicant, 
vessel, and LLP licenses, with all applicable fields accurately filled-
in and all required additional documentation attached. A completed 
application must contain the following additional documentation:
    (ii) Additional documentation--(A) LLP holdership documentation. 
Provide the names of all persons, to the individual level, holding an 
ownership interest in the LLP license and the percentage ownership each 
person and individual holds in the LLP license; and
    (B) Signature and certification. The applicant must sign and date 
the application certifying that all information is true, correct, and 
complete to the best of his or her knowledge and belief. If the 
application is completed by a designated representative, then explicit 
authorization signed by the applicant must accompany the application.
    (6) LLP licenses and rockfish QS not designated on a timely and 
complete application for rockfish CQ. NMFS will prohibit any LLP 
licenses with rockfish QS assigned to that LLP license from fishing in 
the directed rockfish primary fisheries in the Central GOA for a 
calendar year if that LLP license is not designated on a timely and 
complete application for CQ for that calendar year

[[Page 52197]]

that is approved by NMFS. Rockfish sideboard provisions described in 
Sec.  679.82 shall apply to that LLP license, as applicable.
    (g) Application for inter-cooperative transfer of cooperative quota 
(CQ)--(1) Completed application. NMFS will process an application for 
inter-cooperative transfer of CQ provided that an electronic online 
transfer application is completed by the transferor and transferee, 
with all applicable fields accurately filled-in.
    (2) Certification of transferor--(i) The transferor's designated 
representative must log into the online system and create a transfer 
request as indicated on the computer screen. By using the transferor's 
NMFS ID, password, and Transfer Key and submitting the transfer 
request, the designated representative certifies that all information 
is true, correct, and complete.
    (ii) The transferee's designated representative must log into the 
online system and accept the transfer request. By using the 
transferee's NMFS ID, password, and Transfer Key, the designated 
representative certifies that all information is true, correct, and 
complete.
    (h) Maximum retainable amount (MRA) limits--(1) Rockfish 
cooperative. A vessel assigned to a rockfish cooperative and fishing 
under a CQ permit may harvest groundfish species not allocated as CQ up 
to the amounts of the MRAs for those species as established in Table 30 
to this part.
    (2) Opt-out vessels. A rockfish eligible harvester who opted-out of 
participating in a rockfish cooperative is subject to MRAs for rockfish 
primary species and rockfish secondary species as established in Table 
10 to this part.
    (3) Rockfish entry level longline fishery. A person directed 
fishing in the rockfish entry level longline fishery may harvest 
groundfish species other than rockfish primary species up to amounts of 
the MRAs for those species as established in Table 10 to this part.
    (4) Maximum retainable amount (MRA) calculation and limits--catcher 
vessels--(i) The MRA for an incidental catch species for vessels 
fishing under the authority of a CQ permit is calculated as a 
proportion of the total allocated rockfish primary species and rockfish 
secondary species on board the vessel in round weight equivalents using 
the retainable percentage in Table 30 to this part; except that--
    (ii) Once the amount of shortraker rockfish harvested in the 
catcher vessel sector is equal to 9.72 percent of the shortraker 
rockfish TAC in the Central GOA regulatory area, then shortraker 
rockfish may not be retained by any participant in the catcher vessel 
sector while fishing under the authority of a CQ permit.
    (5) Maximum retainable amount (MRA) calculation and limits--
catcher/processor vessels. The MRA for an incidental catch species for 
vessels fishing under the authority of a CQ permit is calculated as a 
proportion of the total allocated rockfish primary species and rockfish 
secondary species on board the vessel in round weight equivalents using 
the retainable percentage in Table 30 to this part as determined under 
Sec.  679.20(e)(3)(iv).
    (i) Rockfish cooperative --(1) General. This section governs the 
formation and operation of rockfish cooperatives. The regulations in 
this section apply only to rockfish cooperatives that have formed for 
the purpose of fishing with CQ issued annually by NMFS.
    (i) Members of rockfish cooperatives should consult legal counsel 
before commencing any activity if the members are uncertain about the 
legality under the antitrust laws of the rockfish cooperative's 
proposed conduct.
    (ii) Membership in a rockfish cooperative is voluntary. No person 
may be required to join a rockfish cooperative.
    (iii) Members may leave a rockfish cooperative, but any CQ 
contributed by the rockfish QS held by that member remains assigned to 
that rockfish cooperative for the remainder of the calendar year.
    (iv) An LLP license, or vessel that has been assigned to a rockfish 
cooperative that leaves a rockfish cooperative continues to be subject 
to the sideboard provisions established for that rockfish cooperative 
under Sec.  679.82(d) and (e), as applicable, for that calendar year.
    (v) If a person becomes the holder of an LLP license that had been 
previously assigned to a rockfish cooperative, then that person may 
join that rockfish cooperative upon receipt of that LLP license, but 
may not assign that LLP license to another rockfish cooperative during 
that calendar year.
    (2) Legal and organizational requirements. A rockfish cooperative 
must meet the following legal and organizational requirements before it 
is eligible to receive CQ:
    (i) Each rockfish cooperative must be formed as a partnership, 
corporation, or other legal business entity that is registered under 
the laws of one of the 50 states or the District of Columbia;
    (ii) Each rockfish cooperative must appoint an individual as 
designated representative to act on the rockfish cooperative's behalf 
and serve as contact point for NMFS for questions regarding the 
operation of the rockfish cooperative. The designated representative 
must be an individual, and may be a member of the rockfish cooperative, 
or some other individual designated by the rockfish cooperative;
    (iii) Each rockfish cooperative must submit a complete and timely 
application for CQ.
    (3) General requirements. The following table describes the 
requirements to form a rockfish cooperative in the catcher vessel or 
catcher/processor sector.

----------------------------------------------------------------------------------------------------------------
               Requirement                           Catcher vessel sector             Catcher/Processor sector
----------------------------------------------------------------------------------------------------------------
(i) Who may join a rockfish cooperative?     Only persons who hold rockfish QS may join a rockfish cooperative.
----------------------------------------------------------------------------------------------------------------
(ii) What is the minimum number of LLP                            No minimum requirement.
 licenses that must be assigned to form a
 rockfish cooperative?
----------------------------------------------------------------------------------------------------------------
(iii) Is an association with a rockfish    Yes, a rockfish QS holder may only be a   No.
 processor required?                        member of a rockfish cooperative formed
                                            in association with a rockfish
                                            processor. The rockfish cooperative may
                                            not receive rockfish CQ unless a
                                            shoreside processor eligible to receive
                                            rockfish CQ has indicated that it may
                                            be willing to receive rockfish CQ from
                                            that cooperative in the application for
                                            CQ, as described under Sec.   679.81,
                                            that is submitted by that cooperative.

[[Page 52198]]

 
(iv) Is a rockfish cooperative member      No.                                       N/A.
 required to deliver catch to the
 rockfish processor with whom the
 rockfish cooperative is associated?
(v) Is there a minimum amount of rockfish  No.                                       No.
 QS that must be assigned to a rockfish
 cooperative for it to be allowed to
 form?
----------------------------------------------------------------------------------------------------------------
(vi) What is allocated to the rockfish        CQ for rockfish primary species, rockfish secondary species, and
 cooperative?                                 rockfish halibut PSC, based on the rockfish QS assigned to all of
                                                   the LLP licenses that are assigned to the cooperative.
----------------------------------------------------------------------------------------------------------------
(vii) Is this CQ an exclusive harvest      Yes, the members of the rockfish cooperative have an exclusive
 privilege?                                 harvest privilege to collectively catch this CQ, or a cooperative
                                            may transfer all or a portion of this CQ to another rockfish
                                            cooperative.
----------------------------------------------------------------------------------------------------------------
(viii) Is there a season during which      Yes, any vessel designated to catch CQ for a rockfish cooperative is
 designated vessels may catch CQ?           limited to catching CQ during the season beginning on 1200 hours,
                                            A.l.t., on May 1 through 1200 hours, A.l.t., on November 15.
----------------------------------------------------------------------------------------------------------------
(ix) Can any vessel catch a rockfish       No, only vessels that are named on the application for CQ for that
 cooperative's CQ?                          rockfish cooperative may catch the CQ assigned to that rockfish
                                            cooperative. A vessel may be assigned to only one rockfish
                                            cooperative in a calendar year.
----------------------------------------------------------------------------------------------------------------
(x) Can a member of a rockfish             No, only the rockfish cooperative's designated representative, and
 cooperative transfer CQ individually to    not individual members, may transfer its CQ to another rockfish
 another rockfish cooperative without the   cooperative. Any such transfer must be approved by NMFS as
 approval of the other members of the       established under paragraph (i)(4)(ii) of this section.
 rockfish cooperative?
----------------------------------------------------------------------------------------------------------------
(xi) Can a rockfish cooperative in the     N/A.                                      No, a sideboard limit
 catcher/processor sector transfer its                                                assigned to a rockfish
 sideboard limit?                                                                     cooperative in the catcher/
                                                                                      processor sector is a
                                                                                      limit applicable to a
                                                                                      specific rockfish
                                                                                      cooperative, and may not
                                                                                      be transferred between
                                                                                      rockfish cooperatives.
----------------------------------------------------------------------------------------------------------------
(xii) Is there a hired master              No, there is no hired master requirement.
 requirement?
----------------------------------------------------------------------------------------------------------------
(xiii) Can an LLP license be assigned to   No, an LLP license may only be assigned to one rockfish cooperative
 more than one rockfish cooperative in a    in a calendar year. A person holding multiple LLP licenses with
 calendar year?                             associated rockfish QS may assign different LLP licenses to
                                            different rockfish cooperatives subject to any other restrictions
                                            that may apply.
----------------------------------------------------------------------------------------------------------------
(xiv) Can a rockfish processor be          Yes.                                      N/A.
 associated with more than one rockfish
 cooperative?
----------------------------------------------------------------------------------------------------------------
(xv) Can an LLP license be assigned to a   N/A.                                      No, each calendar year an
 rockfish cooperative and opt-out of                                                  LLP license must either be
 participating in a rockfish cooperative?                                             assigned to a rockfish
                                                                                      cooperative or opt-out.
----------------------------------------------------------------------------------------------------------------
(xvi) Which members may harvest the        That is determined by the rockfish cooperative contract signed by its
 rockfish cooperative's CQ?                 members. Any violations of this contract by one cooperative member
                                            may be subject to civil claims by other members of the rockfish
                                            cooperative.
----------------------------------------------------------------------------------------------------------------
(xvii) Does a rockfish cooperative need a  Yes, a rockfish cooperative must have a membership agreement or
 contract?                                  contract that specifies how the rockfish cooperative intends to
                                            harvest its CQ. A copy of this agreement or contract must be
                                            submitted to NMFS with the cooperative's application for CQ.
----------------------------------------------------------------------------------------------------------------
(xviii) What happens if the rockfish       A rockfish cooperative is not authorized to catch fish in excess of
 cooperative exceeds its CQ amount?         its CQ and must not exceed its CQ amount at the end of the calendar
                                            year. Exceeding a CQ is a violation of the Rockfish Program
                                            regulations. Each member of the rockfish cooperative is jointly and
                                            severally liable for any violations of the Rockfish Program
                                            regulations while fishing under authority of a CQ permit. This
                                            liability extends to any persons who are hired to catch or receive
                                            CQ assigned to a rockfish cooperative. Each member of a rockfish
                                            cooperative is responsible for ensuring that all members of the
                                            rockfish cooperative comply with all regulations applicable to
                                            fishing under the Rockfish Program.
----------------------------------------------------------------------------------------------------------------
(xix) Is there a limit on how much CQ a    Yes, see Sec.   679.82(a) for the provisions that apply.
 rockfish cooperative may hold or use?
----------------------------------------------------------------------------------------------------------------
(xx) Is there a limit on how much CQ a     Yes, see Sec.   679.82(a) for the provisions that apply.
 vessel may harvest?
----------------------------------------------------------------------------------------------------------------
(xxi) Is there a requirement that a        Yes, see Sec.   679.85 for the provisions that apply.
 rockfish cooperative pay rockfish cost
 recovery fees?
----------------------------------------------------------------------------------------------------------------

[[Page 52199]]

 
(xxii) When does catch count against my    Any vessel fishing checked-in (and therefore fishing under the
 CQ permit?                                 authority of a CQ permit must count any catch of rockfish primary
                                            species, rockfish secondary species, or rockfish halibut PSC against
                                            that rockfish cooperative's CQ from May 1 until November 15, or
                                            until the effective date of a rockfish cooperative termination of
                                            fishing declaration that has been approved by NMFS.)
----------------------------------------------------------------------------------------------------------------
(xxiii) If my vessel is checked-out and    No. If you are fishing in a directed flatfish fishery and checked-out
 fishing in a directed flatfish fishery     of the Rockfish Program fisheries, you are not fishing under the
 in the Central GOA and I catch             authority of a CQ permit. Groundfish harvests would not be debited
 groundfish and halibut PSC, does that      against the rockfish cooperative's CQ permit. In this case, any
 count against the rockfish cooperative's   catch of halibut would be attributed to the halibut PSC limit for
 CQ?                                        that directed target fishery and gear type and any applicable
                                            sideboard limit.
----------------------------------------------------------------------------------------------------------------
(xxiv) Can my rockfish cooperative         The rockfish cooperatives formed under the Rockfish Program are
 negotiate prices for me?                   intended to conduct and coordinate harvest activities for their
                                            members. Rockfish cooperatives formed under the Rockfish Program are
                                            subject to existing antitrust laws. Collective price negotiation by
                                            a rockfish cooperative must be conducted in accordance with existing
                                            antitrust laws.
----------------------------------------------------------------------------------------------------------------
(xxv) Are there any special reporting      Yes, each year a rockfish cooperative must submit an annual rockfish
 requirements?                              cooperative report to NMFS by December 15 of that year. See Sec.
                                            679.5(r)(6) for the reporting requirements.
----------------------------------------------------------------------------------------------------------------
(xxvi) What is required in the annual      The annual rockfish cooperative report must include at a minimum:
 rockfish cooperative report?
                                           (A) The rockfish cooperative's CQ, sideboard limit (if applicable),
                                            and any rockfish sideboard fishery harvests made by the vessels in
                                            the rockfish cooperative on a vessel-by-vessel basis;
                                           (B) The rockfish cooperative's actual retained and discarded catch of
                                            CQ, and sideboard limit on an area-by-area and vessel-by-vessel
                                            basis;
                                           (C) A description of the method used by the rockfish cooperative to
                                            monitor fisheries in which rockfish cooperative vessels
                                            participated; and
                                           (D) A description of any civil actions taken by the rockfish
                                            cooperative in response to any members that exceeded their allowed
                                            catch.
----------------------------------------------------------------------------------------------------------------

     (4) Additional requirements--(i) Restrictions on fishing CQ 
assigned to a rockfish cooperative. A person fishing CQ assigned to a 
rockfish cooperative must maintain a copy of the CQ permit onboard any 
vessel that is being used to harvest any rockfish primary species, or 
rockfish secondary species, or that uses any rockfish halibut PSC CQ.
    (ii) Transfer of CQ between rockfish cooperatives. Rockfish 
cooperatives may transfer CQ during a calendar year with the following 
restrictions:
    (A) A rockfish cooperative may only transfer CQ to another rockfish 
cooperative;
    (B) A rockfish cooperative may only receive CQ from another 
rockfish cooperative;
    (C) A rockfish cooperative may transfer or receive rockfish CQ only 
if that cooperative has been assigned at least two LLP licenses with 
rockfish QS assigned to those LLP licenses;
    (D) A rockfish cooperative in the catcher vessel sector may not 
transfer any CQ to a rockfish cooperative in the catcher/processor 
sector;
    (E) A rockfish cooperative in the catcher/processor sector may not 
transfer any rougheye rockfish CQ or shortraker rockfish CQ to a 
rockfish cooperative in the catcher vessel sector.
    (F) A rockfish cooperative receiving rockfish primary species CQ by 
transfer must assign that rockfish primary species CQ to a member(s) of 
the rockfish cooperative for the purposes of applying the use caps 
established under Sec.  679.82(a). NMFS will not approve a transfer if 
that member would exceed the use cap as a result of the transfer. 
Rockfish secondary species or halibut PSC CQ is not assigned to a 
specific member of a rockfish cooperative;
    (G) A rockfish cooperative in the catcher/processor sector may not 
transfer any sideboard limit assigned to it; and
    (H) A rockfish cooperative may not receive any CQ by transfer after 
NMFS has approved a rockfish cooperative termination of fishing 
declaration that was submitted by that rockfish cooperative.
    (5) Use of CQ--(i) A rockfish cooperative in the catcher vessel 
sector may not use a rockfish primary species CQ in excess of the 
amounts specified in Sec.  679.82(a).
    (ii) For purposes of CQ use cap calculation, the total amount of CQ 
held or used by a person is equal to all tons of CQ derived from the 
rockfish QS held by that person and assigned to the rockfish 
cooperative and all tons of CQ assigned to that person by the rockfish 
cooperative from approved transfers.
    (iii) The amount of rockfish QS held by a person, and CQ derived 
from that rockfish QS is calculated using the individual and collective 
use cap rule established in Sec.  679.82(a).
    (6) Successors-in-interest. If a member of a rockfish cooperative 
dies (in the case of an individual) or dissolves (in the case of a 
business entity), the LLP license(s) and associated rockfish QS held by 
that person will be transferred to the legal successor-in-interest 
under the procedures described in Sec.  679.4(k)(6)(iv)(A). However, 
the CQ derived from that rockfish QS and assigned to the rockfish 
cooperative for that year from that person remains under the control of 
the rockfish cooperative for the duration of that calendar year. Each 
rockfish cooperative is free to establish its own internal procedures 
for admitting a successor-in-interest during the fishing season to 
reflect the transfer of an LLP license and associated rockfish QS.


Sec.  679.82  Rockfish Program use caps and sideboard limits.

    (a) Use caps--(1) General. (i) Use caps limit the amount of 
rockfish QS that may be held or used by a rockfish eligible harvester 
and the amount of CQ that may be held or used by a rockfish 
cooperative, harvested by a vessel, or received or processed by a 
rockfish processor.
    (ii) Use caps do not apply to halibut PSC CQ.
    (iii) Use caps may not be exceeded unless the entity subject to the 
use cap is specifically allowed to exceed a cap according to the 
criteria established

[[Page 52200]]

under this paragraph (a), or by an operation of law.
    (iv) All rockfish QS use caps are based on the aggregate rockfish 
primary species initial rockfish QS pool established by NMFS in Table 
29 to this part.
    (v) Sablefish and Pacific cod CQ processing use caps are based on 
the amount of CQ assigned to the catcher vessel sector during a 
calendar year.
    (2) Rockfish QS use cap. A person may not individually or 
collectively hold or use more than:
    (i) Four (4.0) percent of the aggregate rockfish primary species QS 
initially assigned to the catcher vessel sector and resulting CQ unless 
that rockfish eligible harvester qualifies for an exemption to this use 
cap under paragraph (a)(6) of this section;
    (ii) Forty (40.0) percent of the aggregate rockfish primary species 
QS initially assigned to the catcher/processor sector and resulting CQ 
unless that rockfish eligible harvester qualifies for an exemption to 
this use cap under paragraph (a)(6) of this section.
    (3) Catcher vessel cooperative rockfish CQ use cap. A catcher 
vessel rockfish cooperative may not hold or use an amount of rockfish 
primary species CQ during a calendar year that is greater than an 
amount resulting from 30.0 percent of the aggregate rockfish primary 
species QS initially assigned to the catcher vessel sector.
    (4) Vessel use cap--(i) A catcher vessel may not harvest an amount 
of rockfish primary species CQ greater than 8.0 percent of the 
aggregate rockfish primary species CQ issued to the catcher vessel 
sector during a calendar year.
    (ii) A catcher/processor vessel may not harvest an amount of 
rockfish primary species CQ greater than 60.0 percent of the aggregate 
rockfish primary species CQ issued to the catcher/processor sector 
during a calendar year.
    (5) Use cap for rockfish processors--(i) A rockfish processor may 
not receive or process an amount of rockfish primary species harvested 
with CQ assigned to the catcher vessel sector greater than 30.0 percent 
of the aggregate rockfish primary species CQ assigned to the catcher 
vessel sector during a calendar year.
    (ii) A rockfish processor may not receive or process an amount of 
Pacific cod harvested with CQ assigned to the catcher vessel sector 
greater than 30.0 percent of Pacific cod CQ issued to the catcher 
vessel sector during a calendar year.
    (iii) A rockfish processor may not receive or process an amount of 
sablefish harvested with CQ assigned to the catcher vessel sector 
greater than 30.0 percent of sablefish CQ issued to the catcher vessel 
sector during a calendar year.
    (iv) The amount of aggregate rockfish primary species, Pacific cod, 
or sablefish CQ assigned to the catcher vessel sector that is received 
by a rockfish processor is calculated based on the sum of all landings 
made with CQ received or processed by that rockfish processor and the 
CQ received or processed by any person affiliated with that rockfish 
processor as that term is defined in Sec.  679.2.
    (6) Use cap exemptions--(i) Rockfish QS. A rockfish QS holder may 
receive an initial allocation of aggregate rockfish QS in excess of the 
use cap in that sector only if that rockfish QS is assigned to LLP 
license(s) held by that rockfish eligible harvester prior to June 14, 
2010, and continuously through the time of application for Rockfish QS.
    (ii) Transfer limitations. A rockfish eligible harvester that 
receives an initial allocation of aggregate rockfish QS that exceeds 
the use cap listed in paragraph (a)(2) of this section shall not 
receive any rockfish QS by transfer (except by operation of law) unless 
and until that harvester's holdings of aggregate rockfish QS in that 
sector are reduced to an amount below the use cap specified in 
paragraph (a)(2) of this section.
    (b) Opt-out. An LLP license holder who submits an Application to 
Opt-out of Rockfish Cooperative that is subsequently approved by NMFS, 
may not fish with any vessel named on the opted-out LLP license during 
that fishing year in any directed fishery for any rockfish primary 
species in the Central GOA and waters adjacent to the Central GOA when 
the rockfish primary species caught by that vessel is deducted from the 
Federal TAC specified under Sec.  679.20.
    (c) Sideboard limitations--General. The regulations in this section 
restrict the vessels and holders of LLP licenses with rockfish legal 
landings that could generate rockfish QS from using the increased 
flexibility provided by the Rockfish Program to expand their level of 
participation in other GOA groundfish fisheries. These limitations are 
commonly known as ``sideboards.''
    (1) Classes of sideboard restrictions. Three types of sideboard 
restrictions apply under the Rockfish Program:
    (i) Catcher vessel sideboard restrictions as described under 
paragraph (d) of this section;
    (ii) Catcher/processor rockfish sideboard restrictions as described 
under paragraph (e) of this section; and,
    (iii) Opt-out sideboard restrictions as described under paragraphs 
(e) and (f) of this section.
    (2) Notification of affected vessel owners and LLP license holders. 
After NMFS determines which vessels and LLP licenses may be subject to 
sideboard limitations as described in paragraphs (d) through (f) of 
this section, NMFS will inform each vessel owner and LLP license holder 
in writing of the type of rockfish sideboard limitation and issue a 
revised Federal Fisheries Permit and/or LLP license that displays the 
sideboard limitation(s) that may apply to that FFP or LLP on its face.
    (3) Appeals. A vessel owner or LLP license holder who believes that 
NMFS has incorrectly identified his or her vessel or LLP license as 
meeting the criteria for a sideboard limitation, or who disagrees with 
the specific sideboard ratio assigned to that LLP license, may make a 
contrary claim and provide evidence to NMFS. All claims must be 
submitted in writing with any documentation or evidence supporting the 
request within 30 days of being notified by NMFS of the sideboard 
limitation. NMFS will provide instructions for submitting such claims 
with the sideboard notification. An applicant must submit any 
documentation or evidence supporting a claim within 30 days of being 
notified by NMFS of the sideboard limitation. If NMFS finds the claim 
is unsupported, the claim will be denied in an Initial Administrative 
Determination (IAD). The affected persons may appeal this IAD using the 
procedures described in Sec.  679.43.
    (4) Duration of sideboard limits. Unless otherwise specified, all 
sideboard limitations established under paragraphs (e) of this section 
only apply from July 1 through July 31 of each year.
    (d) Sideboard provisions for catcher vessels--(1) Vessels subject 
to catcher vessel sideboard limits. Any vessel not specified in 
paragraph (d)(2) of this section that NMFS has determined meets any of 
the following criteria is subject to the provisions under this 
paragraph (d):
    (i) Any vessel whose rockfish legal landings could be used to 
generate rockfish QS for the catcher vessel sector; and,
    (ii) Any vessel named on an LLP license under whose authority 
rockfish legal landings were made that could be used to generate 
rockfish QS for the catcher vessel sector.
    (2) Applicability of sideboard provisions for specific catcher 
vessels. The following vessels are exempt from

[[Page 52201]]

the sideboard limits in paragraph (d) of this section:
    (i) Any AFA catcher vessel that is not exempt from GOA groundfish 
sideboards under the AFA as specified under Sec.  679.64(b)(2)(ii);
    (ii) Any vessel that made rockfish legal landings during the 
fishery seasons established in Table 28a to this part and during the 
entry level trawl fishery during 2007, 2008, or 2009 established in 
Table 28b to this part and that is designated on an approved 
application for rockfish QS as being excluded from the Rockfish Program 
as specified under Sec.  679.80(d)(4)(ii); and
    (iii) Any vessel named on an LLP license under whose authority 
rockfish legal landings were made during the fishery seasons 
established in Table 28a to this part and during the entry level trawl 
fishery during 2007, 2008, or 2009 established in Table 28b to this 
part if that LLP license is designated on an approved application for 
rockfish QS as being excluded from the Rockfish Program as specified 
under Sec.  679.80(d)(4)(ii).
    (3) Prohibition for directed fishing in the Western GOA and West 
Yakutat District rockfish fishery during July. Vessels subject to the 
provisions in this paragraph (d) may not participate in directed 
fishing in the Western GOA and West Yakutat District for northern 
rockfish, Pacific ocean perch, and pelagic shelf rockfish (or in waters 
adjacent to the Western GOA and West Yakutat District when northern 
rockfish, Pacific ocean perch, and pelagic shelf rockfish by that 
vessel is deducted from the Federal TAC as specified under Sec.  
679.20) from July 1 through July 31.
    (4) Prohibition for directed fishing in the specific GOA flatfish 
fisheries during July. Vessels subject to the provisions in this 
paragraph (d) may not participate in directed fishing for arrowtooth 
flounder, deep-water flatfish, and rex sole in the GOA (or in waters 
adjacent to the GOA when arrowtooth flounder, deep-water flatfish, and 
rex sole caught by that vessel is deducted from the Federal TAC as 
specified under Sec.  679.20) from July 1 through July 31.
    (e) Rockfish and halibut PSC sideboard provisions for catcher/
processor vessels--(1) Vessels subject to catcher/processor sideboard 
limits. Any vessel that NMFS has determined meets any of the following 
criteria is subject to the provisions under this paragraph (e):
    (i) Any vessel whose rockfish legal landings could be used to 
generate rockfish QS for the catcher/processor sector in the Rockfish 
Program; or
    (ii) Any vessel named on an LLP license under whose authority 
rockfish legal landings were made that could be used to generate 
rockfish QS for the catcher/processor sector in the Rockfish Program.
    (2) Prohibition for directed rockfish fishing in the Western GOA 
and West Yakutat District by non-Amendment 80 vessels assigned to the 
catcher/processor sector. Any vessel that meets the criteria 
established in paragraph (e)(1) of this section and that is not an 
Amendment 80 vessel is prohibited from directed fishing for northern 
rockfish, Pacific ocean perch, and pelagic shelf rockfish in the 
Western GOA and West Yakutat District (or in waters adjacent to the 
Western GOA and West Yakutat District when northern rockfish, Pacific 
ocean perch, and pelagic shelf rockfish by that vessel is deducted from 
the Federal TAC as specified under Sec.  679.20) from July 1 through 
July 31.
    (3) Calculation of rockfish and halibut PSC sideboard limits 
assigned to each LLP license in the catcher/processor sector. NMFS will 
determine specific rockfish sideboard ratios for each LLP license 
assigned to the catcher/processor sector that could generate rockfish 
QS. These rockfish sideboard ratios will be noted on the face of an LLP 
license and will be calculated as follows:
    (i) For each rockfish sideboard fishery, divide the retained catch 
of that rockfish sideboard fishery from July 1 through July 31 in each 
year from 2000 through 2006 made under the authority of that LLP 
license, by the total retained catch of that rockfish sideboard fishery 
from July 1 through July 31 in each year from 2000 through 2006 by 
vessels operating under the authority of all eligible LLP licenses in 
the catcher/processor sector.
    (ii) For the deep-water halibut PSC sideboard limit, divide the 
halibut PSC used in the deep-water complex, except in the Central GOA 
rockfish fisheries, from July 1 through July 31 in each year from 2000 
through 2006 under the authority of that LLP license, by the total 
deep-water halibut PSC used from July 1 through July 31 in each year 
from 2000 through 2006 by vessels operating under the authority of all 
LLP licenses in the catcher/processor sector.
    (iii) For the shallow-water halibut PSC sideboard limit, divide the 
halibut PSC used in the shallow-water complex from July 1 through July 
31 in each year from 2000 through 2006 under the authority of that LLP 
license, by the total shallow-water halibut PSC used from July 1 
through July 31 in each year from 2000 through 2006 by vessels 
operating under the authority of all LLP licenses in the catcher/
processor sector.
    (4) Western GOA and West Yakutat District rockfish sideboard 
ratios.
    The rockfish sideboard ratio for each rockfish fishery in the 
Western GOA and West Yakutat District is established in the following 
table:

------------------------------------------------------------------------
                                                         The sideboard
 For the management area of the.    In the directed      limit for the
               . .                 fishery for . . .   catcher/processor
                                                        sector is . . .
------------------------------------------------------------------------
West Yakutat District...........  Pelagic shelf       ** percent of the
                                   rockfish.           TAC.
                                  Pacific ocean       ** percent of the
                                   perch.              TAC.
Western GOA.....................  Pelagic shelf       72.3 percent of
                                   rockfish.           the TAC.
                                  Pacific ocean       50.6 percent of
                                   perch.              the TAC.
                                  Northern rockfish.  74.3 percent of
                                                       the TAC.
------------------------------------------------------------------------

     (5) GOA halibut PSC sideboard ratios--(i) The annual deep-water 
complex halibut PSC sideboard limit in the GOA is 2.5 percent of the 
annual halibut mortality limit.
    (ii) The annual shallow-water complex halibut PSC sideboard limit 
in the GOA is 0.1 percent of the annual halibut mortality limit.
    (6) Assigning a rockfish sideboard limit to a rockfish cooperative. 
Each rockfish cooperative in the catcher/processor sector will be 
assigned a portion of the rockfish sideboard limit for each rockfish 
species established in paragraph (e)(5) of this section according to 
the following formula.
    (i) For each rockfish sideboard fishery specified in paragraph 
(e)(4) of this section, sum the rockfish sideboard ratios of all LLP 
licenses as calculated under paragraph (e)(5) of this section assigned 
to that rockfish cooperative and multiply this result by the amount of 
TAC (in metric tons) assigned to that rockfish sideboard fishery.
    (ii) Once assigned, a catcher/processor rockfish cooperative may 
not exceed any rockfish sideboard limit assigned to

[[Page 52202]]

that cooperative from July 1 through July 31.
    (7) Assigning a rockfish sideboard limit to catcher/processors that 
opt-out of participating in rockfish cooperatives. Holders of catcher/
processor designated LLPs that opt-out of participating in a rockfish 
cooperative will receive the portion of each rockfish sideboard limit 
established in paragraph (e)(3) of this section not assigned to 
rockfish cooperatives.
    (8) Management of a rockfish opt-out sideboard limit--(i) If the 
Regional Administrator determines that an annual rockfish sideboard 
limit for opt-out vessels is sufficient to support directed fishing for 
that rockfish sideboard fishery, the Regional Administrator may 
establish a directed fishing allowance applicable to holders of 
catcher/processor designated LLPs that have opted-out of participating 
in a rockfish cooperative.
    (ii) If the Regional Administrator determines that a sideboard 
limit is insufficient to support a directed fishing allowance for that 
rockfish sideboard fishery, then the Regional Administrator may not 
allow directed fishing and set the allowance to zero for catcher/
processor opt-out vessels from July 1 through July 31.
    (iii) Upon determining that a halibut PSC sideboard limit is or 
will be reached, the Regional Administrator will publish notification 
in the Federal Register prohibiting directed fishing for the rockfish 
sideboard fishery in the regulatory area or district for catcher/
processor opt-out vessels that will be effective from July 1 through 
July 31.
    (9) Assigning deep-water and shallow-water halibut PSC sideboard 
limits to a rockfish cooperative. Each rockfish cooperative in the 
catcher/processor sector will be assigned a percentage of the deep-
water and shallow-water halibut PSC sideboard limits based on the 
following calculation:
    (i) Sum the deep-water ratios of all LLP licenses assigned to that 
rockfish cooperative and multiply this result by the amount set out in 
paragraph (e)(5)(i) of this section; and
    (ii) Sum the shallow-water ratios of all LLP licenses assigned to 
that rockfish cooperative and multiply this result by the amount set 
out in paragraph (e)(5)(ii) of this section; and
    (iii) A rockfish cooperative may not exceed any deep-water or 
shallow-water halibut PSC sideboard limit assigned to that cooperative.
    (10) Assigning a halibut PSC limit to catcher/processor opt-out 
vessels. Catcher/processor opt-out vessels will receive the portion of 
the deep-water and shallow-water halibut PSC sideboard limit not 
assigned to catcher/processor rockfish cooperatives.
    (11) Management of halibut PSC limits assigned to catcher/processor 
opt-out vessels--(i) If the Regional Administrator determines that a 
halibut PSC sideboard limit for opt-out vessels is sufficient to 
support a directed fishing allowance for groundfish in the deep-water 
or shallow-water halibut PSC complex, then the Regional Administrator 
may establish a directed fishing allowance for that species or species 
group applicable to catcher/processor opt-out vessels.
    (ii) If the Regional Administrator determines that a sideboard 
limit is insufficient to support a directed fishing allowance for 
groundfish in the deep-water or shallow-water halibut PSC complex, then 
the Regional Administrator may not allow directed fishing and set the 
allowance to zero for the deep-water or shallow-water halibut PSC 
complex for catcher/processor opt-out vessels from July 1 through July 
31.
    (iii) Upon determining that a halibut PSC sideboard limit is or 
will be reached, the Regional Administrator will publish notification 
in the Federal Register prohibiting directed fishing for the species or 
species in that complex for catcher/processors opt-out vessels that 
will be effective from July 1 through July 31. The following specific 
directed fishing closures will be implemented if a halibut PSC 
sideboard limit is reached:
    (A) If the shallow-water halibut PSC sideboard limit for catcher/
processor opt-out vessels is or will be reached, then NMFS will close 
directed fishing in the GOA for:
    (1) Flathead sole; and
    (2) Shallow-water flatfish.
    (B) If the deep-water halibut PSC sideboard limit is or will be 
reached for catcher/processor opt-out vessels, then NMFS will close 
directed fishing in the GOA for:
    (1) Rex sole;
    (2) Deep-water flatfish; and
    (3) Arrowtooth flounder.
    (iv) Halibut PSC accounting. Any halibut mortality occurring under 
a CQ permit from July 1 through July 31 will not apply against the 
halibut PSC sideboard limits established paragraph (e)(5) of this 
section.
    (f) Sideboard provisions--catcher/processor opt-out provisions--(1) 
Vessels subject to opt-out sideboard provisions. In addition to the 
sideboards for opt-out vessels in paragraph (e)(7) and (e)(10) of this 
section, any catcher/processor opt-out vessel that NMFS has determined 
meets any of the following criteria is subject to the provisions under 
this paragraph (f):
    (i) Any vessel whose legal rockfish landings could be used to 
generate rockfish QS for the catcher/processor sector that is not 
assigned to a rockfish cooperative; or,
    (ii) Any vessel named on an LLP license under whose authority legal 
rockfish landings were made that could be used to generate rockfish QS 
for the catcher/processor sector and that is not assigned to a rockfish 
cooperative.
    (2) Prohibitions on directed fishing in GOA groundfish fisheries 
without previous participation--(i) Any vessel that is subject to the 
opt-out sideboard restriction under paragraph (f) of this section is 
prohibited from directed fishing in any groundfish fishery in the GOA 
and waters adjacent to the GOA when groundfish caught by that vessel is 
deducted from the Federal TAC specified under Sec.  679.20 (except 
sablefish harvested under the IFQ Program) from July 1 through July 14 
of each year if that vessel has not participated in that directed 
groundfish fishery in any 2 years from 2000 through 2006 during the 
following time periods:
    (A) July 9, 2000, through July 15, 2000;
    (B) July 1, 2001, through July 7, 2001;
    (C) June 30, 2002, through July 6, 2002;
    (D) June 29, 2003, through July 5, 2003;
    (E) July 4, 2004, through July 10, 2004;
    (F) July 3, 2005, through July 9, 2005; and
    (G) July 2, 2006, through July 8, 2006.
    (ii) For purposes of determining participation in a directed 
groundfish fishery for paragraph (f)(3)(i) of this section, a vessel 
may participate:
    (A) In the flathead sole and shallow-water flatfish fisheries if 
that vessel participated in a directed groundfish fishery for either of 
these two fisheries during any 2 years during the 2000 through 2006 
qualifying period defined in paragraph (f)(3)(i) of this section; and
    (B) In the arrowtooth flounder, deep-water flatfish, and rex sole 
fisheries if that vessel participated in a directed groundfish fishery 
for any of these three fisheries during any 2 years during the 2000 
through 2006 qualifying period defined in paragraph (f)(3)(i) of this 
section.


Sec.  679.83  Rockfish Program entry level longline fishery.

    (a) Rockfish entry level longline fishery--(1) Rockfish primary 
species allocations. Vessels participating in the rockfish entry level 
longline fishery may collectively harvest an amount not greater than 
the total allocation to the rockfish entry level longline fishery as 
described in Table 28e to this part.

[[Page 52203]]

    (2) Participation. Catcher vessels fishing under a CQ permit must 
first be checked-out of the Rockfish Program by the catcher vessel 
cooperative's designated representative to participate in the entry 
level longline fishery (see Sec.  679.5(r)(8)(i)(B) for check-out 
procedures).
    (3) Rockfish secondary species allocations. Rockfish secondary 
species shall not be allocated to the rockfish entry level longline 
fishery. Rockfish secondary species shall be managed based on an MRA 
for the target species as described in Table 10 to this part.
    (4) Opening of the rockfish entry level longline fishery. The 
Regional Administrator maintains the authority to not open the rockfish 
entry level longline fishery if he or she deems it appropriate for 
conservation or other management measures. Factors such as the total 
allocation, anticipated harvest rates, and number of participants will 
be considered in making any such decision.
    (b) [Reserved].


Sec.  679.84  Rockfish Program recordkeeping, permits, monitoring, and 
catch accounting.

    (a) Recordkeeping and reporting. See Sec.  679.5(r).
    (b) Permits. See Sec.  679.4(n).
    (c) Catch monitoring requirements for catcher/processors assigned 
to a rockfish cooperative. The requirements under paragraphs (c)(1) 
through (10) of this section apply to any catcher/processor vessel 
assigned to a rockfish cooperative at all times when that vessel has 
groundfish onboard that were harvested under a CQ permit, or that were 
harvested by a vessel subject to a rockfish sideboard limit as 
described under Sec.  679.82(c) through (f), as applicable. The vessel 
owner or operator must ensure that:
    (1) Catch weighing. All catch is weighed on a NMFS-approved scale 
in compliance with the scale requirements at Sec.  679.28(b). Each haul 
must be weighed separately and all catch must be made available for 
sampling by a NMFS-certified observer.
    (2) Observer sampling station. An observer sampling station meeting 
the requirements at Sec.  679.28(d) is available at all times.
    (3) Observer coverage requirements. The vessel is in compliance 
with the observer coverage requirements described at Sec.  
679.50(c)(7)(i).
    (4) Operational line. The vessel has no more than one operational 
line or other conveyance for the mechanized movement of catch between 
the scale used to weigh total catch and the location where the observer 
collects species composition samples.
    (5) Fish on deck. No fish are allowed to remain on deck unless an 
observer is present, except for fish inside the codend and fish spilled 
from the codend during hauling and dumping. Fish spilled from the 
codend must be moved to the fish bin.
    (6) Sample storage. The vessel owner or operator provides 
sufficient space to accommodate a minimum of 10 observer sampling 
baskets. This space must be within or adjacent to the observer sample 
station.
    (7) Pre-cruise meeting. The Observer Program Office is notified by 
phone at 1-907-271-1702 at least 24 hours prior to departure when the 
vessel will be carrying an observer who had not previously been 
deployed on that vessel within the last 12 months. Subsequent to the 
vessel's departure notification, but prior to departure, NMFS may 
contact the vessel to arrange for a pre-cruise meeting. The pre-cruise 
meeting must minimally include the vessel operator or manager and any 
observers assigned to the vessel.
    (8) Belt and flow operations. The vessel operator stops the flow of 
fish and clears all belts between the bin doors and the area where the 
observer collects samples of unsorted catch when requested to do so by 
the observer.
    (9) Vessel crew in tanks or bins. The vessel owner or operator must 
comply with the bin monitoring standards specified in Sec.  679.28(i).
    (10) Mixing of hauls. Catch from an individual haul is not mixed 
with catch from another haul prior to sampling by a NMFS-certified 
observer.
    (d) Catch monitoring requirements for catcher/processors opt-out 
vessels. The requirements under paragraphs (c)(1) through (9) of this 
section apply to any catcher/processor opt-out vessels at all times 
when that vessel has groundfish onboard that were harvested by a vessel 
subject to a sideboard limit as described under Sec.  679.82(f), as 
applicable. The vessel owner or operator must ensure that:
    (1) Catch from an individual haul is not mixed with catch from 
another haul prior to sampling by a NMFS-certified observer;
    (2) All catch be made available for sampling by a NMFS-certified 
observer; and
    (3) The requirements in paragraphs (c)(3), (c)(4), (c)(5), (c)(8), 
and (c)(9) of this section are met.
    (e) Catch monitoring requirements for catcher vessels. The owner or 
operator of a catcher vessel must ensure the vessel complies with the 
observer coverage requirements described in Sec.  679.50(c)(7)(ii) at 
all times the vessel is participating in a rockfish cooperative.
    (f) Catch monitoring requirements for shoreside processors--(1) 
Catch monitoring and control plan (CMCP). The owner or operator of a 
shoreside processor receiving deliveries from a catcher vessel 
described in Sec.  679.50(c)(7)(ii) must ensure the shoreside processor 
complies with the CMCP requirements described in Sec.  679.28(g).
    (2) Catch weighing. All groundfish landed by catcher vessels 
described in Sec.  679.50(c)(7)(ii) must be sorted, weighed on a scale 
approved by the State of Alaska as described in Sec.  679.28(c), and be 
made available for sampling by an observer, NMFS staff, or any 
individual authorized by NMFS. Any of these persons must be allowed to 
test any scale used to weigh groundfish to determine its accuracy.
    (g) Catch accounting--(1) Rockfish primary species and rockfish 
secondary species. All rockfish primary species and rockfish secondary 
species harvests (including harvests of those species in waters 
adjacent to the Central GOA that are deducted from the Federal TAC as 
specified under Sec.  679.20) of a vessel, that is named on an LLP 
license that is assigned to a rockfish cooperative and fishing under a 
CQ permit, will be debited against the CQ for that rockfish cooperative 
from May 1:
    (i) Until November 15; or
    (ii) Until that rockfish cooperative has submitted a rockfish 
cooperative termination of fishing declaration that has been approved 
by NMFS.
    (2) Rockfish halibut PSC. All halibut PSC in the Central GOA 
(including halibut PSC in the waters adjacent to the Central GOA when 
rockfish primary species and rockfish secondary species caught by that 
vessel is deducted from the Federal TAC specified under Sec.  679.20) 
used by a vessel, that is named on an LLP license that is assigned to a 
rockfish cooperative and fishing under a CQ permit, will be debited 
against the CQ for that rockfish cooperative from May 1,
    (i) Until November 15; or
    (ii) Until the designated representative of that rockfish 
cooperative has submitted a rockfish cooperative termination of fishing 
declaration that has been approved by NMFS.
    (3) Groundfish sideboard limits. All groundfish harvests (including 
harvests of those species in waters adjacent to the Central GOA that 
are deducted from the Federal TAC a specified under Sec.  679.20) of a 
catcher/processor vessel that is subject to a sideboard limit for that 
groundfish species as described

[[Page 52204]]

under Sec.  679.82(e), except groundfish harvested by a vessel fishing 
under a CQ permit in the Central GOA, will be debited against the 
sideboard limit established for that sector or rockfish cooperative, as 
applicable.
    (4) Halibut sideboard limits. All halibut PSC in the GOA (including 
halibut PSC in the waters adjacent to the GOA when rockfish primary 
species and rockfish secondary species caught by that vessel is 
deducted from the Federal TAC specified under Sec.  679.20) used by a 
catcher/processor vessel, except halibut PSC used by a vessel fishing 
under a CQ permit will be debited against the sideboard limit 
established for the rockfish cooperative or catcher/processor opt-out 
vessel, as applicable from July 1 until July 31.


Sec.  679.85  Cost recovery.

    (a) Cost recovery fees--(1) Responsibility. The person documented 
on the rockfish CQ permit as the permit holder at the time of a 
rockfish CQ landing must comply with the requirements of this section.
    (i) Subsequent transfer of rockfish CQ or rockfish QS held by 
rockfish cooperative members does not affect the rockfish CQ permit 
holder's liability for noncompliance with this section.
    (ii) Non-renewal of a rockfish CQ permit does not affect the CQ 
permit holder's liability for noncompliance with this section.
    (iii) Changes in the membership in a rockfish cooperative, such as 
members joining or departing during the relevant year, or changes in 
the amount of rockfish QS holdings of those members does not affect the 
rockfish CQ permit holder's liability for noncompliance with this 
section.
    (2) Fee collection. All rockfish CQ holders who receive rockfish CQ 
are responsible for submitting the cost recovery payment for all 
rockfish CQ landings made under the authority of their rockfish CQ 
permit.
    (3) Payment--(i) Payment due date. A rockfish CQ permit holder must 
submit any rockfish cost recovery fee liability payment(s) to NMFS at 
the address provided in paragraph (a)(3)(iii) of this section no later 
than February 15 of the year following the calendar year in which the 
rockfish CQ landings were made.
    (ii) Payment recipient. Make electronic payment payable to NMFS.
    (iii) Payment address. Submit payment and related documents as 
instructed on the fee submission form. Payments must be made 
electronically through the NMFS Alaska Region Web site at http://alaskafisheries.noaa.gov. Instructions for electronic payment will be 
made available on both the payment Web site and a fee liability summary 
letter mailed to the CQ permit holder.
    (iv) Payment method. Payment must be made electronically in U.S. 
dollars by automated clearing house, credit card, or electronic check 
drawn on a U.S. bank account.
    (b) Rockfish standard ex-vessel value determination and use--(1) 
General. A CQ permit holder must use the rockfish standard ex-vessel 
value determined by NMFS under paragraph (b)(2) of this section.
    (2) Rockfish standard ex-vessel value--(i) General. Each year the 
Regional Administrator will publish rockfish standard ex-vessel values 
in the Federal Register during the first quarter of each calendar year. 
The standard prices will be described in U.S. dollars per equivalent 
pound, for rockfish primary species and rockfish secondary species 
landings made by rockfish CQ holders during the previous calendar year.
    (ii) Effective duration. The rockfish standard ex-vessel value 
published by NMFS shall apply to all rockfish primary species and 
rockfish secondary species landings made by a rockfish CQ holder during 
the previous calendar year.
    (iii) Determination. NMFS will calculate the rockfish standard ex-
vessel value to reflect, as closely as possible by month, the 
variations in the actual ex-vessel values of landings based on 
information provided in the Rockfish Ex-vessel Volume and Value Report 
as described in Sec.  679.5(r)(10). The Regional Administrator will 
base rockfish standard ex-vessel values on the following types of 
information:
    (A) Landed pounds by rockfish primary species and rockfish 
secondary species landings and month;
    (B) Total ex-vessel value by rockfish primary species and rockfish 
secondary species landings and month; and
    (C) Price adjustments, including retroactive payments.
    (c) Rockfish fee percentage--(1) Established percentage. The 
rockfish fee percentage is the amount as determined by the factors and 
methodology described in paragraph (c)(2) of this section. This amount 
will be announced by publication in the Federal Register in accordance 
with paragraph (c)(3) of this section. This amount must not exceed 3.0 
percent pursuant to 16 U.S.C. 1854(d)(2)(B).
    (2) Calculating fee percentage value. Each year NMFS shall 
calculate and publish the fee percentage according to the following 
factors and methodology:
    (i) Factors. NMFS must use the following factors to determine the 
fee percentage:
    (A) The catch to which the rockfish cost recovery fee will apply;
    (B) The ex-vessel value of that catch; and
    (C) The costs directly related to the management, data collection, 
and enforcement of the Rockfish Program.
    (ii) Methodology. NMFS must use the following equations to 
determine the fee percentage:

100 x DPC/V

where:

DPC = the direct program costs for the Rockfish Program for the 
previous calendar year with any adjustments to the account from 
payments received in the previous year.
V = total of the standard ex-vessel value of the catch subject to 
the rockfish cost recovery fee liability for the current year.

    (3) Publication--(i) General. During the first quarter of the year 
following the calendar year in which the rockfish CQ landings were 
made, NMFS shall calculate the rockfish fee percentage based on the 
calculations described in paragraph (c)(2) of this section.
    (ii) Effective period. The calculated rockfish fee percentage is 
applied to rockfish CQ landings made in the previous calendar year.
    (4) Applicable percentage. The CQ permit holder must use the 
rockfish fee percentage applicable at the time a rockfish primary 
species and rockfish secondary species landing is debited from a 
rockfish CQ allocation to calculate the rockfish cost recovery fee 
liability for any retroactive payments for that rockfish primary 
species and rockfish secondary species.
    (5) Fee liability determination for a rockfish CQ holder. (i) All 
rockfish CQ holders will be subject to a fee liability for any rockfish 
primary species and rockfish secondary species CQ debited from a 
rockfish CQ allocation during a calendar year.
    (ii) The rockfish fee liability assessed to a rockfish CQ holder 
will be based on the proportion of the standard ex-vessel value of 
rockfish primary species and rockfish secondary species debited from a 
rockfish CQ holder relative to all rockfish CQ holders during a 
calendar year as determined by NMFS.
    (iii) NMFS will provide a fee liability summary letter to all CQ 
permit holders during the first quarter of the year following the 
calendar year in which the rockfish CQ landings were made. The summary 
will explain the fee liability determination including the current fee 
percentage, details of rockfish primary species and rockfish secondary 
species

[[Page 52205]]

CQ pounds debited from rockfish CQ allocations by permit, species, 
date, and prices.
    (d) Underpayment of fee liability--(1) Pursuant to Sec.  679.81(f), 
no rockfish CQ holder will receive any rockfish CQ until the rockfish 
CQ holder submits a complete application. A complete application shall 
include full payment of an applicant's complete rockfish cost recovery 
fee liability.
    (2) If a rockfish CQ holder fails to submit full payment for 
rockfish cost recovery fee liability by the date described in paragraph 
(a)(3) of this section, the Regional Administrator may:
    (i) At any time thereafter send an IAD to the CQ permit holder 
stating that the CQ permit holder's estimated fee liability, as 
indicated by his or her own submitted information, is the rockfish cost 
recovery fee liability due from the CQ permit holder.
    (ii) Disapprove any application to transfer rockfish CQ to or from 
the CQ permit holder in accordance with Sec.  679.81(g).
    (3) If a rockfish CQ holder fails to submit full payment by the 
rockfish cost recovery fee liability payment deadline described at 
paragraph (a)(3) of this section:
    (i) No CQ permit will be issued to that rockfish CQ holder for that 
calendar year; and
    (ii) No rockfish CQ will be issued based on the rockfish QS held by 
the members of that rockfish cooperative to any other CQ permit for 
that calendar year.
    (4) Upon final agency action determining that a CQ permit holder 
has not paid his or her rockfish cost recovery fee liability, the 
Regional Administrator may continue to prohibit issuance of a CQ permit 
for any subsequent calendar years until NMFS receives the unpaid fees. 
If payment is not received by the 30th day after the final agency 
action, the agency may pursue collection of the unpaid fees.
    (e) Over payment. Upon issuance of final agency action, payment 
submitted to NMFS in excess of the rockfish cost recovery fee liability 
determined to be due by the final agency action will be returned to the 
CQ permit holder unless the permit holder requests the agency to credit 
the excess amount against the permit holder's future rockfish cost 
recovery fee liability. Payment processing fees may be deducted from 
any fees returned to the CQ permit holder.
    (f) Appeals. A CQ permit holder who receives an IAD for incomplete 
payment of a rockfish fee liability may appeal the IAD pursuant to 50 
CFR 679.43.
    11. Remove Table 28 to part 679 and add Tables 28a through 28e to 
part 679 to read as follows:

                                 Table 28a to Part 679--Qualifying Season Dates for Central GOA Rockfish Primary Species
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          Year
   A Legal Rockfish Landing   --------------------------------------------------------------------------------------------------------------------------
           includes                  2000              2001              2002              2003              2004             2005             2006
--------------------------------------------------------------------------------------------------------------------------------------------------------
Northern rockfish that were    July 4-July 26..  July 1-July 23    June 30-July 21.  June 29-July 29.  July 4-July 25.  July 5-July 24.  July 1-July 21.
 harvested in the Central GOA                     and Oct. 1-Oct.
 between. . .                                     21.
and landed by................  Aug. 2..........  July 30 and Oct.  July 28.........  Aug. 5..........  Aug. 1.........  July 31........  July 28.
                                                  28,
                                                  respectively.
Pelagic shelf rockfish that    July 4-July 26..  July 1-July 23    June 30-July 21.  June 29-July 31.  July 4-July 25.  July 5-July 24,  July 1-July 21
 were harvested in the                            and Oct. 1-Oct.                                                        Sept. 1-Sept.    and Oct. 2-
 Central GOA between. . .                         21.                                                                    4, and Sept. 8-  Oct. 8.
                                                                                                                         Sept. 10.
and landed by................  Aug. 2..........  July 30 and Oct.  July 28.........  Aug. 7..........  Aug. 1.........  July 31, Sept.   July 28 and
                                                  28,                                                                    11, and Sept.    Oct. 15,
                                                  respectively.                                                          17,              respectively.
                                                                                                                         respectively.
Pacific ocean perch that were  July 4-July 15..  July 1-July 12..  June 30-July 8..  June 29-July 8..  July 4-July 12.  July 5-July 14.  July 1-July 6.
 harvested in the Central GOA
 between. . .
and landed by................  July 22.........  July 19.........  July 15.........  July 15.........  July 19........  July 21........  July 13.
--------------------------------------------------------------------------------------------------------------------------------------------------------


             Table 28b to Part 679--Qualifying Season Dates for Central GOA Rockfish Primary Species
----------------------------------------------------------------------------------------------------------------
 A Rockfish Legal Landing includes . .
                   .                              2007                     2008                    2009
----------------------------------------------------------------------------------------------------------------
Northern rockfish that were harvested   Sept.1-Nov. 8..........  Sept.1-Nov. 15.........  Sept.1-Nov. 15.
 by vessels authorized to fish in the
 rockfish entry level trawl fishery
 between. . .
and landed by.........................  Nov. 15................  Nov. 22................  Nov. 22.
Pelagic shelf rockfish that were        July 4-July 25.........  July 5-July 24.........  July 1-July 21.
 harvested by vessels authorized to
 fish in the rockfish entry level
 trawl fishery between. . .
and landed by.........................  Aug 1..................  July 31................  July 28.
Pacific ocean perch that were           July 4-July 12.........  July 5-July 14.........  July 1-July 6.
 harvested by vessels authorized to
 fish in the rockfish entry level
 trawl fishery between. . .
and landed by.........................  July 19................  July 21................  July 13.
----------------------------------------------------------------------------------------------------------------


[[Page 52206]]


     Table 28c to Part 679--Allocation of Rockfish Secondary Species
------------------------------------------------------------------------
                                      The following percentage of the
                                      Central GOA TAC is allocated to
                                    rockfish  cooperatives as CQ . . .
   For the following rockfish    ---------------------------------------
     secondary species . . .        For the catcher    For the catcher/
                                   vessel sector . .   processor  sector
                                           .                 . . .
------------------------------------------------------------------------
Pacific cod.....................               3.81%                 N/A
Sablefish.......................               6.78%               3.51%
Rougheye rockfish...............                 N/A              58.87%
Shortraker rockfish.............                 N/A              40.00%
Thornyhead rockfish.............               7.84%              26.50%
------------------------------------------------------------------------


             Table 28d to Part 679--Allocation of Halibut PSC Under the Central GOA Rockfish Program
----------------------------------------------------------------------------------------------------------------
                                                                                         The following amount of
                                                                        To yield the     halibut is not assigned
   For the following rockfish       The following     Is multiplied   following amount   as rockfish CQ, halibut
         sectors . . .            amount of halibut     by . . .       of halibut PSC    PSC, or halibut IFQ for
                                        . . .                            assigned as     use by any person . . .
                                                                      rockfish CQ . . .
----------------------------------------------------------------------------------------------------------------
Catcher vessel sector..........  134.1 mt..........           0.875  117.3 mt..........  27.4 mt (16.8 mt from
                                                                                          the catcher vessel
                                                                                          sector and 10.6 mt
                                                                                          from the catcher/
                                                                                          processor sector).
----------------------------------------------------                --------------------
Catcher/processor sector.......  84.7 mt...........  ..............  74.1 mt...........
----------------------------------------------------------------------------------------------------------------


                    Table 28e to Part 679--Rockfish Entry Level Longline Fishery Allocations
----------------------------------------------------------------------------------------------------------------
                                                           If the catch of a rockfish
                                                            primary species during a    Except that the maximum
                                                            calendar year exceeds 90       amount of the TAC
                                                            percent of the allocation   assigned to the Rockfish
  The allocation to the rockfish                            for that rockfish primary   Program (after deducting
 entry level longline fishery for   For 2012 will  be . .       species then the          the incidental catch
  the following rockfish primary              .                allocation of that        allowance) that may be
           species . . .                                    rockfish primary species   allocated to the rockfish
                                                            in the following calendar    entry level non-trawl
                                                            year will increase by . .  fishery for each rockfish
                                                                        .               primary species is . . .
----------------------------------------------------------------------------------------------------------------
Northern rockfish.................  5 mt.................  5 mt......................  2 percent.
Pacific ocean perch...............  5 mt.................  5 mt......................  1 percent.
Pelagic shelf rockfish............  30 mt................  20 mt.....................  5 percent.
----------------------------------------------------------------------------------------------------------------

    17. Revise Tables 29 and 30 to part 679 to read as follows:

                                                     Table 29 to Part 679--Initial Rockfish QS Pools
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    Aggregate Primary
              Initial Rockfish QS Pool.                  Northern Rockfish      Pelagic Shelf Rockfish    Pacific Ocean Perch        Species Initial
                                                                                                                                     Rockfish QS Pool
--------------------------------------------------------------------------------------------------------------------------------------------------------
Initial Rockfish QS Pool
Initial Rockfish QS Pool for the Catcher/Processor
 Sector                                                               Based on the Rockfish Program official record on January 31, 2012.
Initial Rockfish QS Pool for the Catcher Vessel
 Sector
--------------------------------------------------------------------------------------------------------------------------------------------------------


             Table 30 to Part 679--Rockfish Program Retainable Percentages (in round wt. equivalent)
----------------------------------------------------------------------------------------------------------------
                                                                                                    MRA as a
                                                                                                 percentage of
                                                                                                 total retained
                Fishery                   Incidental Catch Species            Sector            rockfish primary
                                                                                                  species and
                                                                                                    rockfish
                                                                                               secondary species
----------------------------------------------------------------------------------------------------------------
Rockfish Cooperative Vessels fishing     Pacific cod..............  Catcher/Processor........                4.0
 under a Rockfish CQ permit.             Shortraker/Rougheye        Catcher Vessel...........                2.0
                                          aggregate catch.
                                        ------------------------------------------------------------------------
                                                 See rockfish non-allocated species for ``other species''
----------------------------------------------------------------------------------------------------------------

[[Page 52207]]

 
Rockfish non-allocated species for       Pollock..................  Catcher/Processor and                   20.0
 Rockfish Cooperative vessels fishing    Deep-water flatfish......   Catcher Vessel.                        20.0
 under a Rockfish CQ permit.             Rex sole.................  Catcher/Processor and                   20.0
                                         Flathead sole............   Catcher Vessel.                        20.0
                                                                    Catcher/Processor and
                                                                     Catcher Vessel.
                                                                    Catcher/Processor and
                                                                     Catcher Vessel.
                                         Shallow-water flatfish...  Catcher/Processor and                   20.0
                                                                     Catcher Vessel.
                                         Arrowtooth Flounder......  Catcher/Processor and                   35.0
                                                                     Catcher Vessel.
                                         Other rockfish...........  Catcher/Processor and                   15.0
                                                                     Catcher Vessel.
                                         Atka mackerel............  Catcher/Processor and                   20.0
                                                                     Catcher Vessel.
                                         Aggregated forage fish...  Catcher/Processor and                    2.0
                                                                     Catcher Vessel.
                                         Skates...................  Catcher/Processor and                   20.0
                                                                     Catcher Vessel.
                                         Other species............  Catcher/Processor and                   20.0
                                                                     Catcher Vessel.
----------------------------------------------------------------------------------------------------------------
Longline gear Rockfish Entry Level                              See Table 10 to this part.
 Fishery.
----------------------------------------------------------------------------------------------------------------
Opt-outvessels.........................                         See Table 10 to this part.
----------------------------------------------------------------------------------------------------------------
Rockfish Cooperative Vessels not                                See Table 10 to this part.
 fishing under a CQ permit.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2011-20454 Filed 8-18-11; 8:45 am]
BILLING CODE 3510-22-P


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