Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 50979 

water bodies (APHIS 2010, p. 1). A 

review of aerial photos within our files 

shows that the nearest known Leona’s 

little blue butterfly locations are 

separated from rangeland by both forests 

and residential communities. Aerial 

application is of greatest concern for 

pesticide drift (Ghassemi et al. 1982, p. 

510). APHIS has strict requirements 

when conducting aerial applications, 

including a requirement that they must 

not spray when winds exceed 10 miles 

per hour (mph) and that application will 

not occur when it is raining, or foggy, 

when foliage is wet, when there is air 

turbulence, when a temperature 

inversion exists in the project area, or 

when the temperature exceeds 80 

Fahrenheit degrees (26.7 °C) (Mauer 

2010, p. 3). In addition, all boundaries 

and buffers will be clearly marked, all 

airplanes will be equipped with global 

positioning systems to guide the pilots, 

and free flying is not allowed (Mauer 

2010, p. 3). APHIS will also conduct 

monitoring to ensure that they are in 

compliance with the protective 

measures, including dye cards to 

monitor the extent and concentration of 

pesticide drift (Mauer 2010, p. 3 and 

APHIS 2010 Environmental Monitoring 

Plan, p. 3). In order to minimize the risk 

to nontarget terrestrial invertebrate 

species, APHIS uses only diflubenzuron 

spray or carbaryl bait whenever possible 

(APHIS 2009, p. 33). These chemicals 

are only toxic to invertebrates when 

they are in their immature stages 

(APHIS 2009, p. 12). In addition, 

diflubenzuron is normally only applied 

prior to the third week of June, as its 

efficacy decreases by the first week of 

July as a result of grasshopper 

development (APHIS 2009, p. 12). The 

Leona’s little blue butterfly emerges 

from its chrysalis as an adult in midJune through mid-July, and its immature 

stages occur 2 to 6 weeks after the adults 

emerge (mid-July to August) (Ross 2008, 

pp. 1, 4, 8). In addition, a monitoring 

study of carbaryl bait application 

indicated that the maximum particle 

drift was 150 feet (46 meters) in 

crosswinds of 13 mph (APHIS 2010, p. 

7). Therefore, the immature stage of 

Leona’s little blue butterfly is not at risk 

from APHIS’ current diflubenzuron 

application program, because of the 

timing of its development and APHIS’ 

pesticide application methods. 

While information suggests that 

APHIS’ pesticide application methods 

may not harm the Leona’s little blue 

butterfly, we recognize that APHIS’ lowimpact method is a voluntary program 

(APHIS 2009, p. 1). A review of the 

petition and our files does not indicate 

to what extent private landowners near 

the known Leona’s little blue butterfly 

locations and habitat are utilizing 

APHIS’ methods. As a result, the 

impacts of private-rangeland pesticide 

application to the Leona’s little blue 

butterfly are unknown. Therefore, there 

is not substantial information to 

indicate that the petitioned action may 

be warranted due to direct mortality by 

the application of pesticides by the 

KMNWR, APHIS, and private 

landowners in Klamath County, Oregon. 

However, we will further evaluate 

information about this activity’s 

potential impact to the species in our 

status review. 

In summary, we find that the 

information provided in the petition, as 

well as other information in our files, 

presents substantial scientific and 

commercial information indicating that 

the petitioned action may be warranted 

due to other natural and manmade 

factors relating to limited range and 

small population size and vulnerability 

to stochastic events. We will further 

evaluate information relating to events 

and activities addressed under this 

factor in our status review of the 

species. 

Finding 

On the basis of our determination 

under section 4(b)(3)(A) of the Act, we 

find that the petition presents 

substantial scientific or commercial 

information indicating that listing the 

Leona’s little blue butterfly throughout 

its entire range may be warranted. This 

finding is based on information 

provided under Factors A (present or 

threatened destruction, modification, or 

curtailment of the species’ habitat or 

range) and E (other natural or manmade 

factors affecting the species’ continued 

existence). Specifically, we find that the 

following may pose threats to the 

Leona’s little blue butterfly throughout 

all or a significant portion of its range, 

such that the petitioned action may be 

warranted: The encroachment of 

lodgepole pine trees into the Leona’s 

little blue butterfly habitat and the loss 

of habitat and individuals from 

catastrophic fire and stochastic events. 

We determine that the information 

provided under Factors B 

(overutilization for commercial, 

recreational, scientific or educational 

purposes), C (disease or predation), and 

D (the inadequacy of existing regulatory 

mechanisms) is not substantial. 

However, we will further evaluate all 

information related to these factors in 

our status review of the species. 

Because we have found that the 

petition presents substantial 

information indicating that listing the 

Leona’s little blue butterfly may be 

warranted, we are initiating a status 

review to determine whether listing the 

Leona’s little blue butterfly under the 

Act is warranted. 

The ‘‘substantial information’’ 

standard for a 90-day finding differs 

from the Act’s ‘‘best scientific and 

commercial data’’ standard that applies 

to a status review to determine whether 

a petitioned action is warranted. A 90- 

day finding does not constitute a status 

review under the Act. In a 12-month 

finding, we will determine whether a 

petitioned action is warranted after we 

have completed a thorough status 

review of the species, which is 

conducted following a substantial 90- 

day finding. Because the Act’s standards 

for 90-day and 12-month findings are 

different, as described above, a 

substantial 90-day finding does not 

mean that the 12-month finding will 

result in a warranted finding. 

References Cited 

A complete list of references cited is 

available on the Internet at http:// 

www.regulations.gov and upon request 

from the Klamath Falls Fish and 

Wildlife Office (see FOR FURTHER

INFORMATION CONTACT). 

Author 

The primary authors of this notice are 

the staff members of the Klamath Falls 

Fish and Wildlife Office. 

Authority 

The authority for this action is the 

Endangered Species Act of 1973, as 

amended (16 U.S.C. 1531 et seq.). 

Dated: August 4, 2011. 

David Cottingham, 

Acting Director, U.S. Fish and Wildlife 

Service. 

[FR Doc. 2011–20864 Filed 8–16–11; 8:45 am] 

BILLING CODE 4310–55–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 622 

[Docket No. 110606316–1463–01] 

RIN 0648–BB15 

Fisheries of the Caribbean, Gulf of 

Mexico, and South Atlantic; Reef Fish 

Fishery of the Gulf of Mexico; 

Amendment 26 and Amendment 29 

Supplement 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
50980 Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 

ACTION: Proposed rule; request for 

comments. 

SUMMARY: NMFS proposes to 

supplement the regulations 

implementing Amendments 26 and 29 

to the Fishery Management Plan for Reef 

Fish Resources of the Gulf of Mexico 

(FMP), as prepared and submitted by 

the Gulf of Mexico Fishery Management 

Council (Council). Amendment 26 

established an individual fishing quota 

(IFQ) program for the red snapper 

commercial sector of the reef fish 

fishery in the Gulf of Mexico (Gulf) 

exclusive economic zone (EEZ). 

Amendment 29 established a multispecies IFQ program for the grouper and 

tilefish component of the commercial 

sector of the reef fish fishery in the Gulf 

EEZ. If implemented, this rule would 

implement transferability measures for 

the red snapper IFQ program contained 

in Amendment 26 that are required to 

be effective as of January 1, 2012. This 

rule would also require all Gulf IFQ 

applicants and participants to certify 

their status as U.S. citizens or 

permanent resident aliens to meet 

current Gulf IFQ program and 

Magnuson-Stevens Fishery 

Conservation and Management Act 

(Magnuson-Stevens Act) requirements. 

Additionally, this rule would make 

revisions to the codified text to remove 

outdated language specific to the Gulf 

IFQ programs. The intent of this rule is 

to specify the process for the general 

public to participate in the Gulf red 

snapper IFQ program and ensure 

efficient functioning of both IFQ 

programs in the Gulf of Mexico. 

DATES: Written comments on this 

proposed rule must be received no later 

than 5 p.m., eastern time, on 

September 16, 2011. 

ADDRESSES: You may submit comments 

on the proposed rule identified by 

‘‘NOAA–NMFS–2011–0178’’ by any of 

the following methods: 

• Electronic submissions: Submit 

electronic comments via the Federal 

e-Rulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Catherine Bruger, Southeast 

Regional Office, NMFS, 263 13th 

Avenue South, St. Petersburg, FL 33701. 

Instructions: All comments received 

are a part of the public record and will 

generally be posted to http:// 

www.regulations.gov without change. 

All Personal Identifying Information (for 

example, name, address, etc.) 

voluntarily submitted by the commenter 

may be publicly accessible. Do not 

submit Confidential Business 

Information or otherwise sensitive or 

protected information. 

To submit comments through the 

Federal e-rulemaking portal: http:// 

www.regulations.gov, click on ‘‘submit a 

comment,’’ then enter ‘‘NOAA–NMFS– 

2011–0178’’ in the keyword search and 

click on ‘‘search.’’ To view posted 

comments during the comment period, 

enter ‘‘NOAA–NMFS–2011–0178’’ in 

the keyword search and click on 

‘‘search.’’ NMFS will accept anonymous 

comments (enter N/A in the required 

field if you wish to remain anonymous). 

You may submit attachments to 

electronic comments in Microsoft Word, 

Excel, WordPerfect, or Adobe PDF file 

formats only. 

Comments received through means 

not specified in this rule will not be 

considered. 

Electronic copies of Amendments 26 

and 29, which include a final 

environmental impact statement (FEIS), 

a regulatory impact review (RIR), and a 

regulatory flexibility act analysis may be 

obtained from the Southeast Regional 

Office Web site at http:// 

sero.nmfs.noaa.gov/sf/ 

GulfReefFishIFQ.htm. 

Comments regarding the burden-hour 

estimates or other aspects of the 

collection-of-information requirements 

contained in this proposed rule may be 

submitted in writing to Rich 

Malinowski, Southeast Regional Office, 

NMFS, 263 13th Avenue South, St. 

Petersburg, FL 33701; and OMB, by email at OIRASubmission@omb.eop.gov, 

or by fax to 202–395–7285. 

FOR FURTHER INFORMATION CONTACT: 

Catherine Bruger, telephone 727–824– 

5305, e-mail 

Catherine.Bruger@noaa.gov. 

SUPPLEMENTARY INFORMATION: The reef 

fish fishery of the Gulf of Mexico is 

managed under the FMP. The FMP was 

prepared by the Council and is 

implemented through regulations at 50 

CFR part 622 under the authority of the 

Magnuson-Stevens Act. 

Background 

On November 22, 2006, NMFS 

published a final rule (71 FR 67447) to 

implement Amendment 26 to the Reef 

Fish FMP (Amendment 26), which 

established the Gulf of Mexico Red 

Snapper Individual Fishing Quota (IFQ) 

program. The program became effective 

on January 1, 2007. In addition to the 

initial implementation of the Gulf red 

snapper IFQ program, Amendment 26 

implemented a provision to allow 

general public participation within the 

red snapper IFQ program 5 years after 

program implementation. The general 

public participation provision becomes 

effective on January 1, 2012. The intent 

of this provision was to give commercial 

reef fish fishermen the opportunity to 

better understand their individual 

fishing quota’s economic value prior to 

January 1, 2012, and after January 1, 

2012, to allow the general public the 

opportunity to enter the red snapper 

IFQ program and receive transferred 

shares and allocation from current IFQ 

participants, thus expanding the 

transferability of red snapper shares and 

allocation. 

As described in Amendment 26, on 

January 1, 2012, all U.S. citizens and 

permanent resident aliens will be 

eligible to acquire red snapper IFQ 

shares and allocation in the Gulf red 

snapper IFQ program through transfer. 

Prior to January 1, 2012, only 

participants with a valid commercial 

Gulf reef fish permit can establish IFQ 

online accounts and hold red snapper 

quota shares and allocation. Therefore, 

beginning on January 1, 2012, any U.S. 

citizen or permanent resident alien, 

after completing and submitting an 

information collection regarding 

citizenship status, will be eligible to 

acquire red snapper IFQ shares and 

allocation through transfer. However, 

the possession of a valid commercial 

Gulf reef fish permit and applicable red 

snapper IFQ allocation remains a 

requirement to possess, land, or sell 

Gulf IFQ red snapper. This rule would 

specify the process for the general 

public to participate in the Gulf red 

snapper IFQ program beginning on 

January 1, 2012. 

In 2009, NMFS published a final rule 

implementing Amendment 29 to the 

Reef Fish FMP (74 FR 44732, August 31, 

2009), which established the Gulf of 

Mexico IFQ program for groupers and 

tilefishes. The reauthorized MagnusonStevens Act of 2006, requires any 

participant in an IFQ program to be a 

U.S. citizen or permanent resident alien. 

Currently, information regarding an IFQ 

participant’s status as a U.S. citizen or 

permanent resident alien is not 

collected on Federal Gulf reef fish 

permit applications or through the Gulf 

IFQ system. If enacted, this rule would 

require that all Gulf IFQ program 

participants certify their citizenship 

status to participate in a Gulf IFQ 

program. 

Management Measures Contained in 

This Proposed Rule 

This rule would establish an 

information collection to meet the 

January 1, 2012 requirements of the Gulf 

red snapper IFQ program outlined in 

Amendment 26, and meet the 

requirements of the reauthorized 

Magnuson-Stevens Act for the groupertilefish IFQ program. This rule also 

describes the procedures that are 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 50981 

necessary for all qualified entities to 

apply for and maintain an IFQ online 

account. Additionally, this rule would 

make revisions to the codified text to 

remove outdated language for the red 

snapper and grouper-tilefish IFQ 

programs. Specifically, this rule would 

remove regulatory language that was 

applicable to the initial implementation 

of the red snapper and grouper-tilefish 

IFQ programs and is no longer needed 

to be included in the regulations. 

Collection of Information for Gulf IFQ 

Applicants and Participants 

If implemented, this rule would 

require Gulf IFQ program applicants to 

establish an IFQ online account to 

participate in the program. In order to 

establish an IFQ online account and in 

accordance with the regulations 

implemented for Amendments 26 and 

29 to the Reef Fish FMP, information 

about the participants must be collected 

prior to establishing an IFQ online 

account for the applicant. This 

collection-of-information is necessary to 

identify participants for the effective 

monitoring, enforcement, and 

management of the Gulf IFQ programs 

established through Amendments 26 

and 29 to the Reef Fish FMP. 

Specifically, this rule would establish 

the requirement that any new applicant 

and all current participants in a Gulf 

IFQ program must submit an 

application for an IFQ online account, 

certifying their status as either a U.S. 

citizen or permanent resident alien, to 

obtain and maintain an IFQ online 

account. The information requested will 

include contact information (name, 

address, and phone number), date of 

birth, certification of citizenship status, 

tax identification number, and corporate 

shareholder information where 

appropriate. Account holders would be 

required to update and confirm their 

account information every 2 years to 

keep their online IFQ account valid. 

Revision and Reorganization of Gulf IFQ 

Language 

This rule would remove language in 

both the red snapper and the groupertilefish IFQ programs that was 

applicable to the initial implementation 

of these programs and is no longer 

relevant. In addition to the removal of 

obsolete language, §§ 622.16 (red 

snapper IFQ program) and 622.20 

(grouper-tilefish IFQ program) have 

been renumbered and reorganized to 

provide for a more clear and concise 

arrangement of the codified text. 

Classification 

Pursuant to section 304(b)(1)(A) of the 

Magnuson-Stevens Act, the NMFS 

Assistant Administrator has determined 

that this proposed rule is consistent 

with Amendments 26 and 29, other 

provisions of the Magnuson-Stevens 

Act, and other applicable law, subject to 

further consideration after public 

comment. 

This proposed rule has been 

determined to be not significant for 

purposes of Executive Order 12866. 

The Chief Counsel for Regulation of 

the Department of Commerce certified 

to the Chief Counsel for Advocacy of the 

Small Business Administration that this 

rule, if adopted, would not have a 

significant economic impact on a 

substantial number of small entities. 

The factual basis for this determination 

is as follows: 

The purpose of this rule is to establish 

an administrative requirement for the 

collection of information necessary to 

effectively monitor and manage the Gulf 

of Mexico IFQ programs, pertinent to 

the January 1, 2012 requirements. The 

objective of this rule is to maximize the 

net benefits to society of the red snapper 

and grouper-tilefish commercial 

components of the reef fish fishery in 

the Gulf of Mexico. The MagnusonStevens Act provides the statutory basis 

for this action. 

With the exception of one group of 

entities, it is not feasible to identify, 

quantify, or describe all of the small 

entities to which this rule would apply. 

This rule, if implemented, would apply 

to all entities that currently have an IFQ 

online account for participation in a 

Gulf of Mexico IFQ program and any 

entity that is a U.S. citizen or permanent 

resident alien that wishes to acquire red 

snapper IFQ shares or allocation 

through transfer beginning January 1, 

2012. The group of entities that wish to 

acquire red snapper IFQ shares or 

allocation through transfer beginning 

January 1, 2012 consists of an 

unidentifiable and unquantifiable 

number of entities, both small and large. 

Small and large entities, as well as 

individual citizens, may be motivated to 

acquire IFQ shares or allocation for 

short- or long-term economic gain, 

speculation, or environmental 

protection. As a result, prospective 

entities may be businesses, nonprofit 

organizations, or even government 

jurisdictions, particularly if it is 

assumed that the restriction limiting 

IFQ harvest to vessels with valid 

Federal commercial reef fish permits 

will be eliminated at some point in the 

future. As such, prospective entities 

could include marinas, chambers of 

commerce, recreational angler clubs and 

organizations, bait and tackle shops, and 

hotels and motels, in addition to 

environmental groups, student clubs, 

and other groups. Narrowing this list to 

one or a few groups of entities 

reasonably expected to apply for an IFQ 

online account is not possible with 

available information. Most of these 

entities are assumed to be, for the 

purpose of this analysis, small entities. 

The group of entities consisting of 

those who currently have an IFQ online 

account can be identified, quantified, 

and described. Because all commercial 

reef fish permit holders can currently 

establish an IFQ online account, all 

entities that possess a valid or 

renewable commercial reef fish permit 

are assumed to comprise the universe of 

entities with an IFQ online account. On 

May 12, 2011, 927 entities possessed a 

valid or renewable commercial reef fish 

permit. Average annual total revenues 

for vessels with a commercial reef fish 

permit are estimated to be less than 

$100,000 (2008 dollars). 

The Small Business Administration 

has established size criteria for all major 

industry sectors in the U.S., including 

fish harvesters. A business involved in 

fish harvesting is classified as a small 

business if it is independently owned 

and operated, is not dominant in its 

field of operation (including its 

affiliates), and has combined annual 

receipts not in excess of $4.0 million 

(NAICS code 114111, finfish fishing) for 

all its affiliated operations worldwide. 

Based on the average annual gross 

revenue estimate provided above, all 

commercial reef fish vessels expected to 

be directly affected by this proposed 

rule are determined for the purpose of 

this analysis to be small business 

entities. 

This rule would require all entities 

that currently possess an online IFQ 

account, and all entities who wish to 

establish an online IFQ account to 

acquire red snapper IFQ shares or 

allocation beginning January 1, 2012, to 

submit an application containing 

contact information (name, address, and 

phone number), date of birth, 

certification of citizenship status, tax 

identification number, and corporate 

shareholder information, where 

appropriate. Account holders would be 

required to update and confirm their 

account information every 2 years to 

keep their online IFQ account valid. No 

special professional skills would be 

required to prepare and submit the 

application or periodic update. Other 

than the request for information, this 

rule would impose no new 

requirements, obligations, restrictions or 

limits on any of the affected entities. 

No duplicative, overlapping, or 

conflicting Federal rules have been 

identified. 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
50982 Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 

This rule would not be expected to 

significantly reduce the profits of any 

small entities. This rule would establish 

an insignificant administrative 

requirement for current and future 

participants in the red snapper and 

grouper-tilefish IFQ programs. The 

economic burden of this administrative 

requirement would consist of the minor 

time and postage costs of completing 

and submitting a short application, 

estimated to take approximately 10 

minutes to complete. Participants would 

be required to update and confirm their 

IFQ online account information every 2 

years. No application or processing fee 

would be required for the initial 

application or periodic update and 

confirmation. Because the individual 

economic burden would be expected to 

be minor, no substantive costs or 

reduction in profits for any small 

entities is expected to be incurred. 

Because this rule, if implemented, is 

not expected to have a direct adverse 

economic impact on any small entities, 

an initial regulatory flexibility analysis 

is not required and none has been 

prepared. 

Notwithstanding any other provision 

of law, no person is required to respond 

to, nor shall a person be subject to a 

penalty for failure to comply with, a 

collection-of-information subject to the 

requirements of the Paperwork 

Reduction Act (PRA), unless that 

collection-of-information displays a 

currently valid Office of Management 

and Budget (OMB) control number. 

This proposed rule contains a 

collection-of-information requirement 

subject to the PRA applicable to 

participants in the Gulf IFQ programs, 

namely, a requirement to complete and 

submit an IFQ Online Application to 

certify a participant’s U.S. citizenship 

status and to update and confirm their 

application every 2 years. 

This requirement has been submitted 

to OMB for approval. The public 

reporting burden for this collection-ofinformation is estimated to average 10 

minutes per applicant/participant every 

2 years. This estimate of the public 

reporting burden includes the time for 

reviewing instructions, 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 will 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 collectionof-information, including through the 

use of automated collection techniques 

or other forms of information 

technology. Send comments regarding 

the burden estimate or any other aspect 

of the collection-of-information 

requirement, including suggestions for 

reducing the burden, to NMFS and to 

OMB (see ADDRESSES). 

List of Subjects in 50 CFR Part 622 

Fisheries, Fishing, Puerto Rico, 

Reporting and recordkeeping 

requirements, Virgin Islands. 

Dated: August 12, 2011. 

Samuel D. Rauch III, 

Deputy Assistant Administrator for 

Regulatory Programs, National Marine 

Fisheries Service. 

For the reasons set out in the 

preamble, 50 CFR part 622 is proposed 

to be amended as follows: 

PART 622—FISHERIES OF THE 

CARIBBEAN, GULF, AND SOUTH 

ATLANTIC 

1. The authority citation for part 622 

continues to read as follows: 

Authority: 16 U.S.C. 1801 et seq. 

2. Revise § 622.16 to read as follows: 

§ 622.16 Gulf red snapper individual 

fishing quota (IFQ) program. 

(a) General. This section establishes 

an IFQ program for the commercial red 

snapper component of the Gulf reef fish 

fishery. Shares determine the amount of 

Gulf red snapper IFQ allocation, in 

pounds gutted weight, a shareholder is 

initially authorized to possess, land, or 

sell in a given calendar year. As of 

January 1, 2012, IFQ shares and 

allocation can only be transferred to 

U.S. citizens and permanent resident 

aliens. See § 622.16(b)(9) regarding 

eligibility to participate in the Gulf red 

snapper IFQ program as of January 1, 

2012. Shares and annual IFQ allocation 

are transferable. See § 622.4(a)(2)(ix) 

regarding a requirement for a vessel 

landing red snapper subject to this IFQ 

program to have a Gulf red snapper IFQ 

vessel account. See § 622.4(a)(4)(ii) 

regarding a requirement for a Gulf IFQ 

dealer endorsement. Details regarding 

eligibility, applicable landings history, 

account setup and transaction 

requirements, constraints on 

transferability, and other provisions of 

this IFQ system are provided in the 

following paragraphs of this section. 

(1) Scope. The provisions of this 

section regarding the harvest and 

possession of Gulf IFQ red snapper 

apply to Gulf red snapper in or from the 

Gulf EEZ and, for a person aboard a 

vessel with a Gulf red snapper IFQ 

vessel account as required by 

§ 622.4(a)(2)(ix) or for a person with a 

Gulf IFQ dealer endorsement as 

required by § 622.4(a)(4)(ii), these 

provisions apply to Gulf red snapper 

regardless of where harvested or 

possessed. 

(2) Duration. The IFQ program 

established by this section will remain 

in effect until it is modified or 

terminated; however, the program will 

be evaluated by the Gulf of Mexico 

Fishery Management Council every 5 

years. 

(3) Electronic system requirements. (i) 

The administrative functions associated 

with this IFQ program, e.g., registration 

and account setup, landing transactions, 

and transfers, are designed to be 

accomplished online; therefore, a 

participant must have access to a 

computer and Internet access and must 

set up an appropriate IFQ online 

account to participate. The computer 

must have browser software installed, 

e.g., Internet Explorer or Mozilla 

Firefox; as well as the software Adobe 

Flash Player version 9.0 or greater, 

which may be downloaded from the 

Internet for free. Assistance with online 

functions is available from IFQ 

Customer Service by calling 1–866–425– 

7627 Monday through Friday between 

8 a.m. and 4:30 p.m. eastern time. 

(ii) The RA mailed initial 

shareholders and dealers with Gulf reef 

fish dealer permits information and 

instructions pertinent to setting up an 

IFQ online account. Other eligible 

persons who desire to become IFQ 

participants by purchasing IFQ shares or 

allocation or by obtaining a Gulf red 

snapper IFQ dealer endorsement must 

first contact IFQ Customer Service at 

1–866–425–7627 to obtain information 

necessary to set up the required IFQ 

online account. As of January 1, 2012, 

all U.S. citizens and permanent resident 

aliens are eligible to establish an IFQ 

online account. As of January 1, 2012, 

all current IFQ participants must 

complete and submit the application for 

an IFQ Online Account to certify their 

citizenship status and ensure their 

account information (e.g., mailing 

address, corporate shareholdings, etc.) is 

up to date. See § 622.16(b)(9) regarding 

requirements for the application for an 

IFQ Online Account. Each IFQ 

participant must monitor his/her online 

account and all associated messages and 

comply with all IFQ online reporting 

requirements. 

(iii) During catastrophic conditions 

only, the IFQ program provides for use 

of paper-based components for basic 

required functions as a backup. The RA 

will determine when catastrophic 

conditions exist, the duration of the 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 50983 

catastrophic conditions, and which 

participants or geographic areas are 

deemed affected by the catastrophic 

conditions. The RA will provide timely 

notice to affected participants via 

publication of notification in the 

Federal Register, NOAA weather radio, 

fishery bulletins, and other appropriate 

means and will authorize the affected 

participants’ use of paper-based 

components for the duration of the 

catastrophic conditions. NMFS will 

provide each IFQ dealer the necessary 

paper forms, sequentially coded, and 

instructions for submission of the forms 

to the RA. The paper forms will also be 

available from the RA. The program 

functions available to participants or 

geographic areas deemed affected by 

catastrophic conditions will be limited 

under the paper-based system. There 

will be no mechanism for transfers of 

IFQ shares or allocation under the 

paper-based system in effect during 

catastrophic conditions. Assistance in 

complying with the requirements of the 

paper-based system will be available via 

IFQ Customer Service 1–866–425–7627 

Monday through Friday between 8 a.m. 

and 4:30 p.m. eastern time. 

(4) IFQ allocation. IFQ allocation is 

the amount of Gulf red snapper, in 

pounds gutted weight, an IFQ 

shareholder or allocation holder is 

authorized to possess, land, or sell 

during a given fishing year. IFQ 

allocation is derived at the beginning of 

each year by multiplying a shareholder’s 

IFQ share times the annual commercial 

quota for Gulf red snapper. If the quota 

is increased after the beginning of the 

fishing year, then IFQ allocation is 

derived by multiplying a shareholder’s 

IFQ share at the time of the quota 

increase by the amount the annual 

commercial quota for red snapper is 

increased. 

(5) Initial shareholder IFQ account 

setup information. As soon as possible 

after an IFQ Online Account is 

established, the RA will provide IFQ 

account holders information pertinent 

to the IFQ program. This information 

will include: 

(i) General instructions regarding 

procedures related to the IFQ online 

system; and 

(ii) A user identification number—the 

personal identification number (PIN) 

was provided in a subsequent letter. 

(6) Dealer notification and IFQ 

account setup information. As soon as 

possible after November 22, 2006, the 

RA mailed each dealer with a valid Gulf 

reef fish dealer permit information 

pertinent to the IFQ program. Any such 

dealer is eligible to receive a Gulf IFQ 

dealer endorsement, which can be 

downloaded from the IFQ Web site at 

https://ifq.sero.nmfs.noaa.gov once an 

IFQ account has been established. The 

information package included general 

information about the IFQ program and 

instructions for accessing the IFQ Web 

site and establishing an IFQ dealer 

account. 

(b) IFQ operations and 

requirements—(1) IFQ Landing and 

transaction requirements. (i) Gulf red 

snapper subject to this IFQ program can 

only be possessed or landed by a vessel 

with a Gulf red snapper IFQ vessel 

account with allocation at least equal to 

the pounds of red snapper on board, 

except as provided in paragraph 

(b)(1)(ii) of this section. Such red 

snapper can only be received by a dealer 

with a Gulf IFQ dealer endorsement. 

(ii) A person on board a vessel with 

an IFQ vessel account landing the 

shareholder’s only remaining allocation, 

can legally exceed, by up to 10 percent, 

the shareholder’s allocation remaining 

on that last fishing trip of the fishing 

year, i.e., a one-time per fishing year 

overage. Any such overage will be 

deducted from the shareholder’s 

applicable allocation for the subsequent 

fishing year. From the time of the 

overage until January 1 of the 

subsequent fishing year, the IFQ 

shareholder must retain sufficient 

shares to account for the allocation that 

will be deducted the subsequent fishing 

year. Share transfers that would violate 

this requirement will be prohibited. 

(iii) The dealer is responsible for 

completing a landing transaction report 

for each landing and sale of Gulf red 

snapper via the IFQ Web site at 

https://ifq.sero.nmfs.noaa.gov at the 

time of the transaction in accordance 

with the reporting form(s) and 

instructions provided on the Web site. 

This report includes, but is not limited 

to, date, time, and location of 

transaction; weight and actual ex-vessel 

price of red snapper landed and sold; 

and information necessary to identify 

the fisherman, vessel, and dealer 

involved in the transaction. The 

fisherman must validate the dealer 

transaction report by entering his 

unique PIN number when the 

transaction report is submitted. After 

the dealer submits the report and the 

information has been verified, the Web 

site will send a transaction approval 

code to the dealer and the allocation 

holder. 

(iv) If there is a discrepancy regarding 

the landing transaction report after 

approval, the dealer or vessel account 

holder (or his or her authorized agent) 

must initiate a landing transaction 

correction form to correct the landing 

transaction. This form is available via 

the IFQ Web site at https:// 

ifq.sero.nmfs.noaa.gov. The dealer must 

then print out the form, both parties 

must sign it, and the form must be 

mailed to NMFS. The form must be 

received by NMFS no later than 15 days 

after the date of the initial landing 

transaction. 

(2) IFQ cost recovery fees. As required 

by section 304(d)(2)(A)(i) of the 

Magnuson-Stevens Act, the RA will 

collect a fee to recover the actual costs 

directly related to the management and 

enforcement of the Gulf red snapper IFQ 

program. The fee cannot exceed 3 

percent of the ex-vessel value of Gulf 

red snapper landed under the IFQ 

program as described in the MagnusonStevens Act. Such fees will be deposited 

in the Limited Access System 

Administration Fund (LASAF). Initially, 

the fee will be 3 percent of the actual 

ex-vessel price of Gulf red snapper 

landed per trip under the IFQ program, 

as documented in each landings 

transaction report. The RA will review 

the cost recovery fee annually to 

determine if adjustment is warranted. 

Factors considered in the review 

include the catch subject to the IFQ cost 

recovery, projected ex-vessel value of 

the catch, costs directly related to the 

management and enforcement of the 

IFQ program, the projected IFQ balance 

in the LASAF, and expected nonpayment of fee liabilities. If the RA 

determines that a fee adjustment is 

warranted, the RA will publish a 

notification of the fee adjustment in the 

Federal Register. 

(i) Payment responsibility. The IFQ 

allocation holder specified in the 

documented red snapper IFQ landing 

transaction report is responsible for 

payment of the applicable cost recovery 

fees. 

(ii) Collection and submission 

responsibility. A dealer who receives 

Gulf red snapper subject to the IFQ 

program is responsible for collecting the 

applicable cost recovery fee for each IFQ 

landing from the IFQ allocation holder 

specified in the IFQ landing transaction 

report. Such dealer is responsible for 

submitting all applicable cost recovery 

fees to NMFS on a quarterly basis. The 

fees are due and must be submitted, 

using pay.gov via the IFQ system at the 

end of each calendar-year quarter, but 

no later than 30 days after the end of 

each calendar-year quarter. Fees not 

received by the deadline are delinquent. 

(iii) Fee payment procedure. For each 

IFQ dealer, the IFQ system will post, on 

individual message boards, an end-ofquarter statement of cost recovery fees 

that are due. The dealer is responsible 

for submitting the cost recovery fee 

payments using pay.gov via the IFQ 

system. Authorized payments methods 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
50984 Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 

are credit card, debit card, or automated 

clearing house (ACH). Payment by 

check will be authorized only if the RA 

has determined that the geographical 

area or an individual(s) is affected by 

catastrophic conditions. 

(iv) Fee reconciliation process— 

delinquent fees. The following 

procedures apply to an IFQ dealer 

whose cost recovery fees are delinquent. 

(A) On or about the 31st day after the 

end of each calendar-year quarter, the 

RA will send the dealer an electronic 

message via the IFQ Web site and 

official notice via mail indicating the 

applicable fees are delinquent, and the 

dealer’s IFQ account has been 

suspended pending payment of the 

applicable fees. 

(B) On or about the 91st day after the 

end of each calendar-year quarter, the 

RA will refer any delinquent IFQ dealer 

cost recovery fees to the appropriate 

authorities for collection of payment. 

(3) Measures to enhance IFQ program 

enforceability—(i) Advance notice of 

landing. For the purpose of this 

paragraph, landing means to arrive at a 

dock, berth, beach, seawall, or ramp. 

The owner or operator of a vessel 

landing IFQ red snapper is responsible 

for ensuring that NMFS is contacted at 

least 3 hours, but no more than 12 

hours, in advance of landing to report 

the time and location of landing, 

estimated red snapper landings in 

pounds gutted weight, vessel 

identification number (Coast Guard 

registration number or state registration 

number), and the name and address of 

the IFQ dealer where the red snapper 

are to be received. The vessel landing 

red snapper must have sufficient IFQ 

allocation in the IFQ vessel account, at 

least equal to the pounds in gutted 

weight of red snapper on board (except 

for any overage up to the 10 percent 

allowed on the last fishing trip) from the 

time of the advance notice of landing 

through landing. Authorized methods 

for contacting NMFS and submitting the 

report include calling IFQ Customer 

Service at 1–866–425–7627, completing 

and submitting to NMFS the notification 

form provided through the VMS unit, or 

providing the required information to 

NMFS through the web-based form 

available on the IFQ Web site at 

https://ifq.sero.nmfs.noaa.gov. As new 

technology becomes available, NMFS 

will add other authorized methods for 

complying with the advance notification 

requirement, via appropriate 

rulemaking. Failure to comply with this 

advance notice of landing requirement 

is unlawful and will preclude 

authorization to complete the landing 

transaction report required in paragraph 

(b)(1)(iii) of this section and, thus, will 

preclude issuance of the required 

transaction approval code. 

(ii) Time restriction on offloading. For 

the purpose of this paragraph, 

offloading means to remove IFQ red 

snapper from a vessel. IFQ red snapper 

may be offloaded only between 6 a.m. 

and 6 p.m., local time. 

(iii) Restrictions on transfer of IFQ red 

snapper. At-sea or dockside transfer of 

IFQ red snapper from one vessel to 

another vessel is prohibited. 

(iv) Requirement for transaction 

approval code. If IFQ red snapper are 

offloaded to a vehicle for transportation 

to a dealer or are on a vessel that is 

trailered for transport to a dealer, on-site 

capability to accurately weigh the fish 

and to connect electronically to the 

online IFQ system to complete the 

transaction and obtain the transaction 

approval code is required. After a 

landing transaction has been completed, 

a transaction approval code verifying a 

legal transaction of the amount of IFQ 

red snapper in possession and a copy of 

the dealer endorsement must 

accompany any IFQ red snapper from 

the landing location through possession 

by a dealer. This requirement also 

applies to IFQ red snapper possessed on 

a vessel that is trailered for transport to 

a dealer. 

(v) Approved landing locations. 

Landing locations must be approved by 

NMFS Office for Law Enforcement prior 

to landing or offloading at these sites. 

Proposed landing locations may be 

submitted online via the IFQ Web site 

at https://ifq.sero.nmfs.noaa.gov, or by 

calling IFQ Customer Service at 1–866– 

425–7627, at any time; however, new 

landing locations will be approved only 

at the end of each calendar-year quarter. 

To have a landing location approved by 

the end of the calendar-year quarter, it 

must be submitted at least 45 days 

before the end of the calendar-year 

quarter. NMFS will evaluate the 

proposed sites based on, but not limited 

to, the following criteria: 

(A) Landing locations must have a 

street address. If there is no street 

address on record for a particular 

landing location, global positioning 

system (GPS) coordinates for an 

identifiable geographic location must be 

provided. 

(B) Landing locations must be 

publicly accessible by land and water, 

and must satisfy the following criteria: 

(1) Vehicles must have access to the 

site via public roads; 

(2) Vessels must have access to the 

site via navigable waters; 

(3) No other condition may impede 

free and immediate access to the site by 

an authorized law enforcement officer. 

Examples of such conditions include, 

but are not limited to: A locked gate, 

fence, wall, or other barrier preventing 

24-hour access to the site; a gated 

community entry point; a guard animal; 

a posted sign restricting access to the 

site; or any other physical deterrent. 

(4) Transfer of IFQ shares and 

allocation. Until January 1, 2012, IFQ 

shares and allocations can be transferred 

only to a person who holds a valid 

commercial vessel permit for Gulf reef 

fish; thereafter, IFQ shares and 

allocations can be transferred only to a 

U.S. citizen or permanent resident alien. 

However, a valid commercial permit for 

Gulf reef fish, a Gulf red snapper IFQ 

vessel account, and Gulf red snapper 

IFQ allocation are required to possess 

(at and after the time of the advance 

notice of landing), land or sell Gulf red 

snapper subject to this IFQ program. 

(i) Share transfers. Share transfers are 

permanent, i.e., they remain in effect 

until subsequently transferred. Transfer 

of shares will result in the 

corresponding allocation being 

automatically transferred to the person 

receiving the transferred share 

beginning with the fishing year 

following the year the transfer occurred. 

However, within the fishing year the 

share transfer occurs, transfer of shares 

and associated allocation are 

independent—unless the associated 

allocation is transferred separately, it 

remains with the transferor for the 

duration of that fishing year. A share 

transfer transaction that remains in 

pending status, i.e., has not been 

completed and verified with a 

transaction approval code, after 30 days 

from the date the shareholder initiated 

the transfer will be cancelled, and the 

pending shares will be re-credited to the 

shareholder who initiated the transfer. 

(ii) Share transfer procedures. Share 

transfers must be accomplished online 

via the IFQ Web site. An IFQ 

shareholder must initiate a share 

transfer request by logging onto the IFQ 

Web site at https:// 

ifq.sero.nmfs.noaa.gov. Following the 

instructions provided on the Web site, 

the shareholder must enter pertinent 

information regarding the transfer 

request including, but not limited to, 

amount of shares to be transferred, 

which must be a minimum of 0.0001 

percent; name of the eligible transferee; 

and the value of the transferred shares. 

An IFQ shareholder who is subject to a 

sanction under 15 CFR part 904 is 

prohibited from initiating a share 

transfer. An IFQ shareholder who is 

subject to a pending sanction under 15 

CFR part 904 must disclose in writing 

to the prospective transferee the 

existence of any pending sanction at the 

time of the transfer. For the first 5 years 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 50985 

this IFQ program is in effect, an eligible 

transferee is a person who has a valid 

commercial vessel permit for Gulf reef 

fish; is in compliance with all reporting 

requirements for the Gulf reef fish 

fishery and the red snapper IFQ 

program; is not subject to sanctions 

under 15 CFR part 904; and who would 

not be in violation of the share cap as 

specified in paragraph (b)(6) of this 

section. Thereafter, share transferee 

eligibility will only include U.S. 

citizens and permanent resident aliens 

who are otherwise in compliance with 

the provisions of this section. The 

online system will verify the transfer 

information entered. If the information 

is not accepted, the online system will 

send the shareholder an electronic 

message explaining the reason(s) why 

the transfer request cannot be 

completed. If the information is 

accepted, the online system will send 

the transferee an electronic message of 

the pending transfer. The transferee 

must approve the share transfer by 

electronic signature. If the transferee 

approves the share transfer, the online 

system will send a transaction approval 

code to both the transferor and 

transferee confirming the transaction. 

All share transfers must be completed 

and the transaction approval code 

received prior to December 31 at 6 p.m. 

eastern time each year. 

(iii) Allocation transfers. An 

allocation transfer is valid only for the 

remainder of the fishing year in which 

it occurs; it does not carry over to the 

subsequent fishing year. Any allocation 

that is unused at the end of the fishing 

year is void. Allocation may be 

transferred to a vessel account from any 

IFQ account. Allocation held in a vessel 

account, however, may only be 

transferred back to the IFQ account 

through which the vessel account was 

established. 

(iv) Allocation transfer procedures. 

Allocation transfers must be 

accomplished online via the IFQ Web 

site. An IFQ account holder must 

initiate an allocation transfer by logging 

onto the IFQ Web site at https:// 

ifq.sero.nmfs.noaa.gov, entering the 

required information, including but not 

limited to, name of an eligible transferee 

and amount of IFQ allocation to be 

transferred and price, and submitting 

the transfer electronically. An IFQ 

allocation holder who is subject to a 

sanction under 15 CFR part 904 is 

prohibited from initiating an allocation 

transfer. An IFQ allocation holder who 

is subject to a pending sanction under 

15 CFR part 904 must disclose in 

writing to the prospective transferee the 

existence of any pending sanction at the 

time of the transfer. If the transfer is 

approved, the online system will 

provide a transaction approval code to 

the transferor and transferee confirming 

the transaction. 

(5) Restricted transactions during the 

20-hour online maintenance window. 

All electronic IFQ transactions must be 

completed by December 31 at 6 p.m. 

Eastern Time each year. Electronic IFQ 

functions will resume again on January 

1 at 2 p.m. Eastern Time the following 

fishing year. The remaining 6 hours 

prior to the end of the fishing year, and 

the 14 hours at the beginning of the next 

fishing year, are necessary to provide 

NMFS time to reconcile IFQ accounts, 

adjust allocations for the upcoming year 

if the commercial quotas for Gulf red 

snapper have changed, and update 

shares and allocations for the upcoming 

fishing year. No electronic IFQ 

transactions will be available during 

these 20 hours. An advance notice of 

landing may still be submitted during 

the 20-hour maintenance window by 

using the vessel’s VMS unit or calling 

IFQ Customer Service at 1–866–425– 

7627. 

(6) IFQ share cap. No person, 

including a corporation or other entity, 

may individually or collectively hold 

IFQ shares in excess of 6.0203 percent 

of the total shares. For the purposes of 

considering the share cap, a 

corporation’s total IFQ share is 

determined by adding the applicable 

IFQ shares held by the corporation and 

any other IFQ shares held by a 

corporation(s) owned by the original 

corporation prorated based on the level 

of ownership. An individual’s total IFQ 

share is determined by adding the 

applicable IFQ shares held by the 

individual and the applicable IFQ 

shares equivalent to the corporate share 

the individual holds in a corporation. 

Initially, a corporation must provide the 

RA the identity of the shareholders of 

the corporation and their percent of 

shares in the corporation, and provide 

updated information to the RA within 

30 days of when changes occur. This 

information must also be provided to 

the RA any time a commercial vessel 

permit for Gulf reef fish is renewed or 

transferred and at the time of renewal of 

the application for an IFQ Online 

Account. 

(7) Redistribution of shares resulting 

from permanent revocation. If a 

shareholder’s IFQ shares have been 

permanently revoked, the RA will 

redistribute the IFQ shares held by that 

shareholder proportionately among 

remaining shareholders (subject to cap 

restrictions) based upon the amount of 

shares each held just prior to the 

redistribution. During December of each 

year, the RA will determine the amount 

of revoked shares, if any, to be 

redistributed, and the shares will be 

distributed at the beginning of the 

subsequent fishing year. 

(8) Annual recalculation and 

notification of IFQ shares and 

allocation. On or about January 1 each 

year, IFQ shareholders will be notified, 

via the IFQ Web site at https:// 

ifq.sero.nmfs.noaa.gov, of their IFQ 

share and allocation for the upcoming 

fishing year. These updated share values 

will reflect the results of applicable 

share transfers and any redistribution of 

shares (subject to cap restrictions) 

resulting from permanent revocation of 

applicable shares. Updated allocation 

values will reflect any change in IFQ 

share, any change in the annual 

commercial quota for Gulf red snapper, 

and any debits required as a result of 

prior fishing year overages as specified 

in paragraph (b)(1)(ii) of this section. 

IFQ participants can monitor the status 

of their shares and allocation 

throughout the year via the IFQ Web 

site. 

(9) Eligibility to participate in the Gulf 

red snapper IFQ program as of January 

1, 2012. The provisions of paragraph 

(b)(9) of this section apply to all eligible 

participants for the Gulf red snapper 

IFQ program beginning January 1, 2012. 

In addition to eligible participants who 

already participate in the Gulf red 

snapper IFQ program, as of January 1, 

2012, all U.S. citizens and permanent 

resident aliens who are in compliance 

with the provisions of this section are 

eligible and may participate in the Gulf 

red snapper IFQ program as 

shareholders and allocation holders. 

The requirements to meet the definition 

of a U.S. citizen are described in the 

Immigration and Nationality Act of 

1952, as amended, and permanent 

resident aliens are those individuals 

who have been lawfully accorded the 

privilege of residing permanently in the 

U.S. in accordance with U.S. 

immigration laws. In order to harvest 

and possess Gulf IFQ red snapper, the 

requirements for a Gulf red snapper IFQ 

vessel account, as specified in 

§ 622.4(a)(2)(ix), or a Gulf IFQ dealer 

endorsement, as specified in 

§ 622.4(a)(4)(ii) apply. 

(i) Gulf red snapper IFQ program 

participation for current red snapper 

IFQ account holders. A current 

participant in the red snapper IFQ 

program must complete and submit the 

application for an IFQ Online Account 

that is available on the Web site 

http://sero.nmfs.noaa.gov, to certify 

status as a U.S. citizen or permanent 

resident alien. The IFQ account holder 

must also complete and submit any 

other information on this form that may 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
50986 Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 

be necessary for the administration of 

the IFQ online account. A person with 

an established IFQ online account must 

update and confirm the account 

information every 2 years. IFQ online 

accounts are updated through the 

submission of the application for an IFQ 

Online Account. Accounts must be 

updated prior to the account validity 

date (expiration date of the account) that 

is displayed on each account holder’s 

IFQ online account page. The RA will 

provide each participant who has 

established an online account, with an 

application approximately 2 months 

prior to the account validity date. A 

participant who is not provided an 

application at least 45 days prior to the 

account validity date must contact IFQ 

Customer Service at 1–866–425–7627 

and request an application. Failure to 

submit a completed application prior to 

the account validity date will lead to the 

suspension of the participant’s IFQ 

online account until a completed 

application is submitted. After January 

1, 2012, participants who certify that 

they are either not U.S. citizens or 

permanent resident aliens will be 

ineligible to receive shares or allocation 

through transfer. 

(ii) Gulf red snapper IFQ program 

participation for entities that do not 

currently possess an IFQ online 

account. The following procedures 

apply to U.S. citizens or permanent 

resident aliens who are not otherwise 

described in either paragraphs (a) or 

(b)(9)(i) of this section. 

(A) To establish an IFQ online 

account, a person must first complete 

the application for an IFQ Online 

Account that is available on the Web 

site http://sero.nmfs.noaa.gov. An 

applicant for an IFQ online account 

under this paragraph must provide the 

following; 

(1) Name; address; telephone number; 

date of birth; tax identification number; 

certification of status as either a U.S. 

citizen or permanent resident alien; and 

if a corporation, a list of all officers, 

directors, shareholders, and registered 

agents of the business; and other 

identifying information as specified on 

the application. 

(2) Any other information that may be 

necessary for the establishment or 

administration of the IFQ online 

account. 

(B) Completed applications and all 

required supporting documentation 

must be submitted to the RA. There is 

no fee to access the Web site or establish 

an IFQ online account. An applicant 

that submits an incomplete application 

will be contacted by the RA to correct 

any deficiencies. If an applicant fails to 

correct the deficiency within 30 days of 

being notified of the deficient 

application, the application will be 

considered abandoned. 

(C) After an applicant submits a 

completed application for an IFQ online 

account, the RA will mail the applicant 

general instructions regarding 

procedures related to the IFQ online 

system, including how to set up an 

online account and a user identification 

number—the personal identification 

number (PIN) will be provided in a 

subsequent letter. 

(D) A participant who has established 

an IFQ online account must notify the 

RA within 30 days after there is any 

change in the information submitted 

through the application for an IFQ 

Online Account. The IFQ online 

account is void if any change in the 

application information is not reported 

within 30 days. 

(E) A person who has established an 

IFQ online account must update and 

confirm the account information every 2 

years. IFQ online accounts are updated 

through the submission of the 

application for an IFQ Online Account. 

Accounts must be updated prior to the 

account validity date (expiration date of 

the account) that is displayed on each 

account holder’s IFQ online account 

page. The RA will mail each participant 

who has established an online account 

an application approximately 2 months 

prior to the Account Validity Date. A 

participant who does not receive an 

application at least 45 days prior to the 

Account Validity Date must contact IFQ 

Customer Service at 1–866–425–7627 

and request an application. Failure to 

submit a completed application prior to 

the account validity date will lead to the 

suspension of the IFQ online account 

until a completed application is 

submitted. 

(F) For information regarding transfer 

of IFQ shares and allocation, the IFQ 

share cap, and the annual recalculation 

and notification of IFQ shares and 

allocation, see paragraphs (b)(4), (b)(6), 

and (b)(8) of this section, respectively. 

(G) Participation in the Gulf red 

snapper IFQ program beyond 

transferring IFQ shares and allocation is 

explained in paragraphs (a) through 

(b)(8) of this section. 

3. Revise § 622.20 to read as follows: 

§ 622.20 Individual fishing quota (IFQ) 

program for Gulf groupers and tilefishes. 

(a) General. This section establishes 

an IFQ program for the commercial 

components of the Gulf reef fish fishery 

for groupers (including DWG, red 

grouper, gag, and other SWG) and 

tilefishes (including goldface tilefish, 

blackline tilefish, anchor tilefish, 

blueline tilefish, and tilefish). For the 

purposes of this IFQ program, DWG 

includes yellowedge grouper, misty 

grouper, warsaw grouper, snowy 

grouper, and speckled hind, and scamp, 

but only as specified in paragraph 

(b)(2)(vi) of this section. For the 

purposes of this IFQ program, other 

SWG includes black grouper, scamp, 

yellowfin grouper, rock hind, red hind, 

and yellowmouth grouper, and warsaw 

grouper and speckled hind, but only as 

specified in paragraph (b)(2)(v) of this 

section. Under the IFQ program, the RA 

initially will assign eligible participants 

IFQ shares, in five share categories. 

These IFQ shares are equivalent to a 

percentage of the annual commercial 

quotas for DWG, red grouper, gag, and 

tilefishes, and the annual commercial 

catch allowance (meaning the SWG 

quota minus gag and red grouper) for 

other SWG species, based on their 

applicable historical landings. Shares 

determine the amount of IFQ allocation 

for Gulf groupers and tilefishes, in 

pounds gutted weight, a shareholder is 

initially authorized to possess, land, or 

sell in a given calendar year. Shares and 

annual IFQ allocation are transferable. 

See § 622.4(a)(2)(ix) regarding a 

requirement for a vessel landing 

groupers or tilefishes subject to this IFQ 

program to have an IFQ vessel account 

for Gulf groupers and tilefishes. See 

§ 622.4(a)(4)(ii) regarding a requirement 

for a Gulf IFQ dealer endorsement. 

Details regarding eligibility, applicable 

landings history, account setup and 

transaction requirements, constraints on 

transferability, and other provisions of 

this IFQ system are provided in the 

following paragraphs of this section. 

(1) Scope. The provisions of this 

section apply to Gulf groupers and 

tilefishes in or from the Gulf EEZ and, 

for a person aboard a vessel with an IFQ 

vessel account for Gulf groupers and 

tilefishes as required by § 622.4(a)(2)(ix) 

or for a person with a Gulf IFQ dealer 

endorsement as required by 

§ 622.4(a)(4)(ii), these provisions apply 

to Gulf groupers and tilefishes 

regardless of where harvested or 

possessed. 

(2) Duration. The IFQ program 

established by this section will remain 

in effect until it is modified or 

terminated; however, the program will 

be evaluated by the Gulf of Mexico 

Fishery Management Council every 5 

years. 

(3) Electronic system requirements. (i) 

The administrative functions associated 

with this IFQ program, e.g., registration 

and account setup, landing transactions, 

and transfers, are designed to be 

accomplished online; therefore, a 

participant must have access to a 

computer and Internet access and must 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 50987 

set up an appropriate IFQ online 

account to participate. The computer 

must have browser software installed, 

e.g. Internet Explorer or Mozilla Firefox; 

as well as the software Adobe Flash 

Player version 9.0 or greater, which may 

be downloaded from the Internet for 

free. Assistance with online functions is 

available from IFQ Customer Service by 

calling 1–866–425–7627 Monday 

through Friday between 8 a.m. and 

4:30 p.m. eastern time. 

(ii) The RA will mail initial 

shareholders and dealers with Gulf reef 

fish dealer permits information and 

instructions pertinent to setting up an 

IFQ online account. Other eligible 

persons who desire to become IFQ 

participants by purchasing IFQ shares or 

allocation or by obtaining a Gulf IFQ 

dealer endorsement must first contact 

IFQ Customer Service at 1–866–425– 

7627 to obtain information necessary to 

set up the required IFQ online account. 

All current IFQ participants must 

complete and submit the application for 

an IFQ Online Account to certify their 

citizenship status and ensure their 

account information (e.g., mailing 

address, corporate shareholdings, etc.) is 

up to date. See § 622.20(b)(9) regarding 

requirements for the application for an 

IFQ Online Account. Each IFQ 

participant must monitor his/her online 

account and all associated messages and 

comply with all IFQ online reporting 

requirements. 

(iii) During catastrophic conditions 

only, the IFQ program provides for use 

of paper-based components for basic 

required functions as a backup. The RA 

will determine when catastrophic 

conditions exist, the duration of the 

catastrophic conditions, and which 

participants or geographic areas are 

deemed affected by the catastrophic 

conditions. The RA will provide timely 

notice to affected participants via 

publication of notification in the 

Federal Register, NOAA weather radio, 

fishery bulletins, and other appropriate 

means and will authorize the affected 

participants’ use of paper-based 

components for the duration of the 

catastrophic conditions. NMFS will 

provide each IFQ dealer the necessary 

paper forms, sequentially coded, and 

instructions for submission of the forms 

to the RA. The paper forms will also be 

available from the RA. The program 

functions available to participants or 

geographic areas deemed affected by 

catastrophic conditions will be limited 

under the paper-based system. There 

will be no mechanism for transfers of 

IFQ shares or allocation under the 

paper-based system in effect during 

catastrophic conditions. Assistance in 

complying with the requirements of the 

paper-based system will be available via 

IFQ Customer Service 1–866–425–7627 

Monday through Friday between 8 a.m. 

and 4:30 p.m. eastern time. 

(4) IFQ allocation. IFQ allocation is 

the amount of Gulf groupers and 

tilefishes, in pounds gutted weight, an 

IFQ shareholder or allocation holder is 

authorized to possess, land, or sell 

during a given fishing year. IFQ 

allocation for the five respective share 

categories is derived at the beginning of 

each year by multiplying a shareholder’s 

IFQ share times the annual commercial 

quota for gag, red grouper, DWG, and 

tilefishes; and times the annual 

commercial catch allowance for other 

SWG. If a quota is increased after the 

beginning of the fishing year, then IFQ 

allocation is derived by multiplying a 

shareholder’s IFQ share at the time of 

the quota increase by the amount the 

annual commercial quota is increased. 

(5) Red grouper and gag multi-use 

allocation—(i) Red grouper multi-use 

allocation. At the beginning of each 

fishing year, 4 percent of each 

shareholder’s initial red grouper 

allocation will be converted to red 

grouper multi-use allocation. Red 

grouper multi-use allocation may be 

used to possess, land, or sell either red 

grouper or gag under certain conditions. 

Red grouper multi-use allocation may be 

used to possess, land, or sell red grouper 

only after an IFQ account holder’s 

(shareholder or allocation holder’s) red 

grouper allocation has been landed and 

sold, or transferred; and to possess, 

land, or sell gag, only after both gag and 

gag multi-use allocation have been 

landed and sold, or transferred. 

(ii) Gag multi-use allocation. At the 

beginning of each fishing year, 8 percent 

of each shareholder’s initial gag 

allocation will be converted to gag 

multi-use allocation. Gag multi-use 

allocation may be used to possess, land, 

or sell either gag or red grouper under 

certain conditions. Gag multi-use 

allocation may be used to possess, land, 

or sell gag only after an IFQ account 

holder’s gag allocation has been landed 

and sold, or transferred; and possess, 

land or sell red grouper, only after both 

red grouper and red grouper multi-use 

allocation have been landed and sold, or 

transferred. Multi-use allocation transfer 

procedures and restrictions are specified 

in paragraph (b)(4)(iv) of this section. 

(6) Warsaw grouper and speckled 

hind classification. Warsaw grouper and 

speckled hind are considered DWG 

species and under certain circumstances 

SWG species. For the purposes of the 

IFQ program for Gulf groupers and 

tilefishes, once all of an IFQ account 

holder’s DWG allocation has been 

landed and sold, or transferred, or if an 

IFQ account holder has no DWG 

allocation, then other SWG allocation 

may be used to land and sell warsaw 

grouper and speckled hind. 

(7) Scamp classification. Scamp is 

considered a SWG species and under 

certain circumstances a DWG. For the 

purposes of the IFQ program for Gulf 

groupers and tilefishes, once all of an 

IFQ account holder’s other SWG 

allocation has been landed and sold, or 

transferred, or if an IFQ account holder 

has no SWG allocation, then DWG 

allocation may be used to land and sell 

scamp. 

(8) Initial shareholder and IFQ 

account setup information. On or about 

October 1, 2009, the RA mailed each 

Gulf reef fish commercial vessel 

permittee with grouper and tilefish 

landings history during the qualifying 

years, information pertinent to the IFQ 

program. This information included: 

(i) Gulf grouper and tilefish landings 

associated with the Gulf reef fish 

commercial vessel permit during each 

year of the applicable landings history; 

(ii) The highest average annual 

grouper and tilefish landings, in each of 

the five share categories, based on the 

permittee’s best 5 out of 6 years of 

applicable landings history; 

(iii) The permittee’s initial IFQ share, 

in each of the five share categories, 

based on the highest average annual 

landings associated with the permittee’s 

best 5 out of 6 years of applicable 

landings history; 

(iv) The initial IFQ allocation, in each 

of the five share categories, as well as 

their total IFQ allocation; 

(v) Instructions for appeals; 

(vi) General instructions regarding 

procedures related to the IFQ online 

system, including how to set up an 

online account; and 

(vii) A user identification number; 

and a personal identification number 

(PIN) that was provided in a subsequent 

letter. 

(9) Dealer notification and IFQ 

account setup information. On or about 

October 1, 2009, the RA mailed each 

dealer with a valid Gulf reef fish dealer 

permit information pertinent to the IFQ 

program. Any such dealer is eligible to 

receive a Gulf IFQ dealer endorsement, 

which can be downloaded from the IFQ 

Web site at https:// 

ifq.sero.nmfs.noaa.gov once an IFQ 

account has been established. The 

information package included general 

information about the IFQ program and 

instructions for accessing the IFQ Web 

site and establishing an IFQ dealer 

account. 

(b) IFQ operations and 

requirements—(1) IFQ Landing and 

transaction requirements. (i) Gulf 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
50988 Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 

groupers and tilefishes subject to this 

IFQ program can only be possessed or 

landed by a vessel with a IFQ vessel 

account for Gulf groupers and tilefishes. 

Such groupers and tilefishes can only be 

received by a dealer with a Gulf IFQ 

dealer endorsement. The vessel landing 

groupers or tilefishes must have 

sufficient IFQ allocation in the IFQ 

vessel account, at least equal to the 

pounds in gutted weight of grouper or 

tilefish species to be landed, from the 

time of advance notice of landing 

through landing, except as provided in 

paragraph (b)(1)(ii) of this section. 

(ii) A person on board a vessel with 

an IFQ vessel account landing the 

shareholder’s only remaining allocation 

from among any of the grouper or 

tilefish share categories, can legally 

exceed, by up to 10 percent, the 

shareholder’s allocation remaining on 

that last fishing trip of the fishing year, 

i.e., a one-time per fishing year overage. 

Any such overage will be deducted from 

the shareholder’s applicable allocation 

for the subsequent fishing year. From 

the time of the overage until January 1 

of the subsequent fishing year, the IFQ 

shareholder must retain sufficient 

shares to account for the allocation that 

will be deducted the subsequent fishing 

year. Share transfers that would violate 

this requirement will be prohibited. 

(iii) The dealer is responsible for 

completing a landing transaction report 

for each landing and sale of Gulf 

groupers and tilefishes via the IFQ Web 

site at https://ifq.sero.nmfs.noaa.gov at 

the time of the transaction in 

accordance with reporting form and 

instructions provided on the Web site. 

This report includes, but is not limited 

to, date, time, and location of 

transaction; weight and actual ex-vessel 

price of groupers and tilefishes landed 

and sold; and information necessary to 

identify the fisherman, vessel, and 

dealer involved in the transaction. The 

fisherman must validate the dealer 

transaction report by entering the 

unique PIN number for the vessel 

account when the transaction report is 

submitted. After the dealer submits the 

report and the information has been 

verified by NMFS, the online system 

will send a transaction approval code to 

the dealer and the allocation holder. 

(iv) If there is a discrepancy regarding 

the landing transaction report after 

approval, the dealer or vessel account 

holder (or his or her authorized agent) 

must initiate a landing transaction 

correction form to correct the landing 

transaction. This form is available via 

the IFQ Web site at https:// 

ifq.sero.nmfs.noaa.gov. The dealer must 

then print out the form, both parties 

must sign it, and the form must be 

mailed to NMFS. The form must be 

received by NMFS no later than 15 days 

after the date of the initial landing 

transaction. 

(2) IFQ cost recovery fees. As required 

by the Magnuson-Stevens Act, the RA 

will collect a fee to recover the actual 

costs directly related to the management 

and enforcement of the IFQ program for 

Gulf groupers and tilefishes. The fee 

cannot exceed 3 percent of the ex-vessel 

value of Gulf groupers and tilefishes 

landed under the IFQ program as 

described in the Magnuson-Stevens Act. 

Such fees will be deposited in the 

Limited Access System Administration 

Fund (LASAF). Initially, the fee will be 

3 percent of the actual ex-vessel price of 

Gulf groupers and tilefishes landed per 

trip under the IFQ program, as 

documented in each landings 

transaction report. The RA will review 

the cost recovery fee annually to 

determine if adjustment is warranted. 

Factors considered in the review 

include the catch subject to the IFQ cost 

recovery, projected ex-vessel value of 

the catch, costs directly related to the 

management and enforcement of the 

IFQ program, the projected IFQ balance 

in the LASAF, and expected nonpayment of fee liabilities. If the RA 

determines that a fee adjustment is 

warranted, the RA will publish a 

notification of the fee adjustment in the 

Federal Register. 

(i) Payment responsibility. The IFQ 

account holder specified in the 

documented IFQ landing transaction 

report for Gulf groupers and tilefishes is 

responsible for payment of the 

applicable cost recovery fees. 

(ii) Collection and submission 

responsibility. A dealer who receives 

Gulf groupers or tilefishes subject to the 

IFQ program is responsible for 

collecting the applicable cost recovery 

fee for each IFQ landing from the IFQ 

account holder specified in the IFQ 

landing transaction report. Such dealer 

is responsible for submitting all 

applicable cost recovery fees to NMFS 

on a quarterly basis. The fees are due 

and must be submitted, using pay.gov 

via the IFQ system, at the end of each 

calendar-year quarter, but no later than 

30 days after the end of each calendaryear quarter. Fees not received by the 

deadline are delinquent. 

(iii) Fee payment procedure. For each 

IFQ dealer, the IFQ system will post, in 

individual IFQ dealer accounts, an endof-quarter statement of cost recovery 

fees that are due. The dealer is 

responsible for submitting the cost 

recovery fee payments using pay.gov via 

the IFQ system. Authorized payment 

methods are credit card, debit card, or 

automated clearing house (ACH). 

Payment by check will be authorized 

only if the RA has determined that the 

geographical area or an individual(s) is 

affected by catastrophic conditions. 

(iv) Fee reconciliation process— 

delinquent fees. The following 

procedures apply to an IFQ dealer 

whose cost recovery fees are delinquent. 

(A) On or about the 31st day after the 

end of each calendar-year quarter, the 

RA will send the dealer an electronic 

message via the IFQ Web site and 

official notice via mail indicating the 

applicable fees are delinquent, and the 

dealer’s IFQ account has been 

suspended pending payment of the 

applicable fees. 

(B) On or about the 91st day after the 

end of each calendar-year quarter, the 

RA will refer any delinquent IFQ dealer 

cost recovery fees to the appropriate 

authorities for collection of payment. 

(3) Measures to enhance IFQ program 

enforceability—(i) Advance notice of 

landing. For the purpose of this 

paragraph, landing means to arrive at a 

dock, berth, beach, seawall, or ramp. 

The owner or operator of a vessel 

landing IFQ groupers or tilefishes is 

responsible for ensuring that NMFS is 

contacted at least 3 hours, but no more 

than 12 hours, in advance of landing to 

report the time and location of landing, 

estimated grouper and tilefish landings 

in pounds gutted weight for each share 

category (gag, red grouper, DWG, other 

SWG, tilefishes), vessel identification 

number (Coast Guard registration 

number or state registration number), 

and the name and address of the IFQ 

dealer where the groupers or tilefishes 

are to be received. The vessel landing 

groupers or tilefishes must have 

sufficient IFQ allocation in the IFQ 

vessel account, and in the appropriate 

share category or categories, at least 

equal to the pounds in gutted weight of 

all groupers and tilefishes on board 

(except for any overage up to the 10 

percent allowed on the last fishing trip) 

from the time of the advance notice of 

landing through landing. Authorized 

methods for contacting NMFS and 

submitting the report include calling 

IFQ Customer Service at 1–866–425– 

7627, completing and submitting to 

NMFS the notification form provided 

through the VMS unit, or providing the 

required information to NMFS through 

the Web-based form available on the 

IFQ Web site at https:// 

ifq.sero.nmfs.noaa.gov. As new 

technology becomes available, NMFS 

will add other authorized methods for 

complying with the advance notification 

requirement, via appropriate 

rulemaking. Failure to comply with this 

advance notice of landing requirement 

is unlawful and will preclude 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 50989 

authorization to complete the landing 

transaction report required in paragraph 

(b)(1)(iii) of this section and, thus, will 

preclude issuance of the required 

transaction approval code. 

(ii) Time restriction on offloading. For 

the purpose of this paragraph, 

offloading means to remove IFQ 

groupers and tilefishes from a vessel. 

IFQ groupers or tilefishes may be 

offloaded only between 6 a.m. and 

6 p.m., local time. 

(iii) Restrictions on transfer of IFQ 

groupers and tilefishes. At-sea or 

dockside transfer of IFQ groupers or 

tilefishes from one vessel to another 

vessel is prohibited. 

(iv) Requirement for transaction 

approval code. If IFQ groupers or 

tilefishes are offloaded to a vehicle for 

transport to a dealer, on-site capability 

to accurately weigh the fish and to 

connect electronically to the online IFQ 

system to complete the transaction and 

obtain the transaction approval code is 

required. After a landing transaction has 

been completed, a transaction approval 

code verifying a legal transaction of the 

amount of IFQ groupers and tilefishes in 

possession and a copy of the dealer 

endorsement must accompany any IFQ 

groupers or tilefishes from the landing 

location through possession by a dealer. 

This requirement also applies to IFQ 

groupers and tilefishes possessed on a 

vessel that is trailered for transport to a 

dealer. 

(v) Approved landing locations. 

Landing locations must be approved by 

NMFS Office for Law Enforcement prior 

to landing or offloading at these sites. 

Proposed landing locations may be 

submitted online via the IFQ Web site 

at https://ifq.sero.nmfs.noaa.gov, or by 

calling IFQ Customer Service at 1–866– 

425–7627, at any time; however, new 

landing locations will be approved only 

at the end of each calendar-year quarter. 

To have your landing location approved 

by the end of the calendar-year quarter, 

it must be submitted at least 45 days 

before the end of the calendar-year 

quarter. NMFS will evaluate the 

proposed sites based on, but not limited 

to, the following criteria: 

(A) Landing locations must have a 

street address. If there is no street 

address on record for a particular 

landing location, global positioning 

system (GPS) coordinates for an 

identifiable geographic location must be 

provided. 

(B) Landing locations must be 

publicly accessible by land and water, 

and must satisfy the following criteria: 

(1) Vehicles must have access to the 

site via public roads; 

(2) Vessels must have access to the 

site via navigable water; 

(3) No other condition may impede 

free and immediate access to the site by 

an authorized law enforcement officer. 

Examples of such conditions include, 

but are not limited to: A locked gate, 

fence, wall, or other barrier preventing 

24-hour access to the site; a gated 

community entry point; a guard; animal; 

a posted sign restricting access to the 

site; or any other physical deterrent. 

(4) Transfer of IFQ shares and 

allocation. Until January 1, 2015, IFQ 

shares and allocations can be transferred 

only to a person who holds a valid 

commercial vessel permit for Gulf reef 

fish; thereafter, IFQ shares and 

allocations can be transferred only to a 

U.S. citizen or permanent resident alien. 

However, a valid commercial permit for 

Gulf reef fish, an IFQ vessel account for 

Gulf groupers and tilefishes, and IFQ 

allocation for Gulf groupers or tilefishes 

are required to possess (at and after the 

time of the advance notice of landing), 

land or sell Gulf groupers or tilefishes 

subject to this IFQ program. 

(i) Share transfers. Share transfers are 

permanent, i.e., they remain in effect 

until subsequently transferred. Transfer 

of shares will result in the 

corresponding allocation being 

automatically transferred to the person 

receiving the transferred share 

beginning with the fishing year 

following the year the transfer occurred. 

However, within the fishing year the 

share transfer occurs, transfer of shares 

and associated allocation are 

independent—unless the associated 

allocation is transferred separately, it 

remains with the transferor for the 

duration of that fishing year. A share 

transfer transaction that remains in 

pending status, i.e., has not been 

completed and verified with a 

transaction approval code, after 30 days 

from the date the shareholder initiated 

the transfer will be cancelled, and the 

pending shares will be re-credited to the 

shareholder who initiated the transfer. 

(ii) Share transfer procedures. Share 

transfers must be accomplished online 

via the IFQ Web site. An IFQ 

shareholder must initiate a share 

transfer request by logging onto the IFQ 

Web site at https:// 

ifq.sero.nmfs.noaa.gov. An IFQ 

shareholder who is subject to a sanction 

under 15 CFR part 904 is prohibited 

from initiating a share transfer. An IFQ 

shareholder who is subject to a pending 

sanction under 15 CFR part 904 must 

disclose in writing to the prospective 

transferee the existence of any pending 

sanction at the time of the transfer. 

Following the instructions provided on 

the Web site, the shareholder must enter 

pertinent information regarding the 

transfer request including, but not 

limited to: amount of shares to be 

transferred, which must be a minimum 

of 0.000001 percent; name of the eligible 

transferee; and the value of the 

transferred shares. For the first 5 years 

this IFQ program is in effect, an eligible 

transferee is a person who has a valid 

commercial vessel permit for Gulf reef 

fish; is in compliance with all reporting 

requirements for the Gulf reef fish 

fishery and the IFQ program for Gulf 

groupers and tilefishes; is not subject to 

sanctions under 15 CFR part 904; and 

who would not be in violation of the 

share or allocation caps as specified in 

paragraph (b)(6) of this section. 

Thereafter, share transferee eligibility 

will only include U.S. citizens and 

permanent resident aliens who are 

otherwise in compliance with the 

provisions of this section. The online 

system will verify the information 

entered. If the information is not 

accepted, the online system will send 

the shareholder an electronic message 

explaining the reason(s). If the 

information is accepted, the online 

system will send the transferee an 

electronic message of the pending 

transfer. The transferee must approve 

the share transfer by electronic 

signature. If the transferee approves the 

share transfer, the online system will 

send a transfer approval code to both 

the shareholder and transferee 

confirming the transaction. All share 

transfers must be completed and the 

transaction approval code received prior 

to December 31 at 6 p.m. eastern time 

each year. 

(iii) Allocation transfers. An 

allocation transfer is valid only for the 

remainder of the fishing year in which 

it occurs; it does not carry over to the 

subsequent fishing year. Any allocation 

that is unused at the end of the fishing 

year is void. Allocation may be 

transferred to a vessel account from any 

IFQ account. Allocation held in a vessel 

account, however, may only be 

transferred back to the IFQ account 

through which the vessel account was 

established. 

(iv) Allocation transfer procedures 

and restrictions—(A) Allocation transfer 

procedures. Allocation transfers must be 

accomplished online via the IFQ Web 

site. An IFQ account holder must 

initiate an allocation transfer by logging 

onto the IFQ Web site at https:// 

ifq.sero.nmfs.noaa.gov, entering the 

required information, including but not 

limited to, the name of an eligible 

transferee and amount of IFQ allocation 

to be transferred and price, and 

submitting the transfer electronically. 

An IFQ allocation holder who is subject 

to a sanction under 15 CFR part 904 is 

prohibited from initiating an allocation 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS
50990 Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Proposed Rules 

transfer. An IFQ allocation holder who 

is subject to a pending sanction under 

15 CFR part 904 must disclose in 

writing to the prospective transferee the 

existence of any pending sanction at the 

time of the transfer. If the transfer is 

approved, the Web site will provide a 

transfer approval code to the transferor 

and transferee confirming the 

transaction. 

(B) Multi-use allocation transfer 

restrictions—(1) Red grouper multi-use 

allocation. Red grouper multi-use 

allocation may only be transferred after 

all an IFQ account holder’s red grouper 

allocation has been landed and sold, or 

transferred. 

(2) Gag multi-use allocation. Gag 

multi-use allocation may only be 

transferred after all an IFQ account 

holder’s gag allocation has been landed 

and sold, or transferred. 

(5) Restricted transactions during the 

20-hour online maintenance window. 

All electronic IFQ transactions must be 

completed by December 31 at 6 p.m. 

Eastern Time each year. Electronic IFQ 

functions will resume again on January 

1 at 2 p.m. Eastern Time the following 

fishing year. The remaining 6 hours 

prior to the end of the fishing year, and 

the 14 hours at the beginning of the next 

fishing year, are necessary to provide 

NMFS time to reconcile IFQ accounts, 

adjust allocations for the upcoming year 

if the commercial quotas or catch 

allowances for Gulf groupers and 

tilefishes have changed, and update 

shares and allocations for the upcoming 

fishing year. No electronic IFQ 

transactions will be available during 

these 20 hours. An advance notice of 

landing may still be submitted during 

the 20-hour maintenance window by 

using the vessel’s VMS unit or calling 

IFQ Customer Service at 1–866–425– 

7627. 

(6) IFQ share and allocation caps. A 

corporation’s total IFQ share (or 

allocation) is determined by adding the 

applicable IFQ shares (or allocation) 

held by the corporation and any other 

IFQ shares (or allocation) held by a 

corporation(s) owned by the original 

corporation prorated based on the level 

of ownership. An individual’s total IFQ 

share is determined by adding the 

applicable IFQ shares held by the 

individual and the applicable IFQ 

shares equivalent to the corporate share 

the individual holds in a corporation. 

An individual’s total IFQ allocation is 

determined by adding the individual’s 

total allocation to the allocation derived 

from the IFQ shares equivalent to the 

corporate share the individual holds in 

a corporation. 

(i) IFQ share cap for each share 

category. No person, including a 

corporation or other entity, may 

individually or collectively hold IFQ 

shares in any share category (gag, red 

grouper, DWG, other SWG, or tilefishes) 

in excess of the maximum share initially 

issued for the applicable share category 

to any person at the beginning of the 

IFQ program, as of the date appeals are 

resolved and shares are adjusted 

accordingly. A corporation must 

provide to the RA the identity of the 

shareholders of the corporation and 

their percent of shares in the 

corporation for initial issuance of IFQ 

shares and allocation, and provide 

updated information to the RA within 

30 days of when changes occur. This 

information must also be provided to 

the RA any time a commercial vessel 

permit for Gulf reef fish is renewed or 

transferred and at the time of renewal of 

the application for an IFQ Online 

Account. 

(ii) Total allocation cap. No person, 

including a corporation or other entity, 

may individually or collectively hold, 

cumulatively during any fishing year, 

IFQ allocation in excess of the total 

allocation cap. The total allocation cap 

is the sum of the maximum allocations 

associated with the share caps for each 

individual share category and is 

calculated annually based on the 

applicable quotas or catch allowance 

associated with each share category. 

(7) Redistribution of shares resulting 

from permanent revocation. If a 

shareholder’s IFQ shares have been 

permanently revoked, the RA will 

redistribute the IFQ shares 

proportionately among remaining 

shareholders (subject to cap restrictions) 

based upon the amount of shares each 

held just prior to the redistribution. 

During December of each year, the RA 

will determine the amount of revoked 

shares, if any, to be redistributed, and 

the shares will be distributed at the 

beginning of the subsequent fishing 

year. 

(8) Annual recalculation and 

notification of IFQ shares and 

allocation. On or about January 1 each 

year, IFQ shareholders will be notified, 

via the IFQ Web site at https://

ifq.sero.nmfs.noaa.gov, of their IFQ 

shares and allocations, for each of the 

five share categories, for the upcoming 

fishing year. These updated share values 

will reflect the results of applicable 

share transfers and any redistribution of 

shares (subject to cap restrictions) 

resulting from permanent revocation of 

IFQ shares. Allocation, for each share 

category, is calculated by multiplying 

IFQ share for that category times the 

annual commercial quota or commercial 

catch allowance for that share category. 

Updated allocation values will reflect 

any change in IFQ share for each share 

category, any change in the annual 

commercial quota or commercial catch 

allowance for the applicable categories; 

and any debits required as a result of 

prior fishing year overages as specified 

in paragraph (c)(1)(ii) of this section. 

IFQ participants can monitor the status 

of their shares and allocation 

throughout the year via the IFQ Web 

site. 

(9) Gulf grouper and tilefish IFQ 

program participation for current 

grouper and tilefish IFQ account 

holders. A current participant in the 

Gulf grouper and tilefish IFQ program 

must complete and submit the 

application for an IFQ Online Account 

that is available on the Web site http://

sero.nmfs.noaa.gov, to certify status as a 

U.S. citizen or permanent resident alien. 

The account holder must also complete 

and submit any other information on 

this form that may be necessary for the 

administration of the IFQ online 

account. A person with an established 

IFQ online account must update and 

confirm the account information every 2 

years. IFQ online accounts are updated 

through the submission of the 

application for an IFQ Online Account. 

Accounts must be updated prior to the 

account validity date (expiration date of 

the account) that is displayed on each 

account holder’s IFQ online account 

page. The RA will provide each 

participant who has established an 

online account an application 

approximately 2 months prior to the 

account validity date. A participant who 

is not provided an application at least 

45 days prior to the account validity 

date must contact IFQ Customer Service 

at 1–866–425–7627 and request an 

application. Failure to submit a 

completed application prior to the 

participant’s account validity date will 

lead to the suspension of the 

participant’s access to his IFQ online 

account until a completed application is 

submitted. Participants who certify that 

they are either not a U.S. citizens or 

permanent resident alien will be 

ineligible to receive shares or allocation 

through transfer. 

[FR Doc. 2011–21000 Filed 8–16–11; 8:45 am] 

BILLING CODE 3510–22–P 


Emcdonald on DSK2BSOYB1PROD with PROPOSALS