[Federal Register Volume 72, Number 87 (Monday, May 7, 2007)]
[Rules and Regulations]
[Pages 25709-25711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-2270]



[[Page 25709]]

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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 070227048-7091-02; I.D. 020807C]
RIN 0648-AU63


Fisheries of the Northeastern United States; Northeast 
Multispecies Fishery; Total Allowable Catches for Georges Bank Cod, 
Haddock, and Yellowtail Flounder in the U.S./Canada Management Area for 
Fishing Year 2007

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

ACTION: Temporary rule; specifications.

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SUMMARY:  The following Total Allowable Catches (TACs) in the United 
States (U.S.)/Canada Management Area are implemented for the 2007 
fishing year (FY): 494 mt of Georges Bank (GB) cod, 6,270 mt of GB 
haddock, and 900 mt of yellowtail flounder. This action is intended to 
meet the conservation and management requirements of the Magnuson-
Stevens Fishery Conservation and Management Act. These TACs may be 
adjusted during FY 2007, if NMFS determines that the harvest of these 
stocks in FY 2006 exceeded the TACs specified for FY 2006.

DATES:  This rule is effective May 3, 2007, through April 30, 2008.

ADDRESSES:  Copies of the Transboundary Management Guidance Committee's 
(TMGC) 2006 Guidance Document and copies of the Environmental 
Assessment (EA) of the 2007 TACs (including the Regulatory Impact 
Review and Final Regulatory Flexibility Analysis (FRFA)) may be 
obtained from NMFS at One Blackburn Drive, Gloucester, MA 01930; 
telephone (978) 281-9315. NMFS prepared a summary of the FRFA, which is 
contained in the Classification section of this rule.

FOR FURTHER INFORMATION CONTACT:  Tobey Curtis, Fishery Management 
Specialist, (978) 281-9273, fax (978) 281-9135, e-mail 
<a href="/cdn-cgi/l/email-protection#5f0b303d3a26711c2a2d2b362c1f11101e1e71383029"><span class="__cf_email__" data-cfemail="297d464b4c50076a5c5b5d405a6967666868074e465f">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: A proposed rule for this action was 
published on March 12, 2007, (72 FR 10967) with public comments 
accepted though April 11, 2006. A detailed description of the 
administrative process used to develop the TACs was contained in the 
preamble of the proposed rule and is not repeated here.
    For GB cod, the TMGC concluded that the most appropriate combined 
U.S./Canada TAC for FY 2007 is 1,900 mt. The U.S. is entitled to 26 
percent and Canada to 74 percent, resulting in a national quota of 494 
mt of cod for the U.S. and 1,406 mt of cod for Canada. For GB haddock, 
the TMGC concluded that the most appropriate combined U.S./Canada TAC 
for FY 2007 is 19,000 mt. The U.S. is entitled to 33 percent and Canada 
to 67 percent, resulting in a national quota of 6,270 mt of haddock for 
the U.S. and 12,730 mt of haddock for Canada. For GB yellowtail 
flounder, the TMGC concluded that the most appropriate combined U.S./
Canada TAC for FY 2007 is 1,250 mt. The U.S. is entitled to 72 percent 
and Canada to 28 percent, resulting in a national quota of 900 mt of 
yellowtail flounder for the U.S. and 350 mt of yellowtail flounder for 
Canada. On November 16, 2006, the New England Fishery Management 
Council (Council) approved, consistent with the 2006 Guidance Document, 
the following U.S. TACs recommended by the TMGC and recommended their 
adoption to NMFS: 494 mt of GB cod, 6,270 mt of GB haddock, and 900 mt 
of GB yellowtail flounder (Table 1). The 2007 haddock and yellowtail 
flounder TACs represent a decrease from 2006 TAC levels, and the 2007 
cod TAC represents an increase from the 2006 TAC (Tables 1 and 2).

                   Table 1: 2007 U.S./Canada TACs (mt) and percentage shares (in parentheses)
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                                                                                                  GB Yellowtail
                                                                    GB Cod         GB Haddock        flounder
----------------------------------------------------------------------------------------------------------------
Total Shared TAC                                                        1,900           19,000            1,250
U.S. TAC                                                             494 (26)       6,270 (33)         900 (72)
Canada TAC                                                         1,406 (74)      12,730 (67)         350 (28)
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                   Table 2: 2006 U.S./Canada TACs (mt) and percentage shares (in parentheses)
----------------------------------------------------------------------------------------------------------------
                                                                                                  GB Yellowtail
                                                                    GB Cod         GB Haddock        flounder
----------------------------------------------------------------------------------------------------------------
Total Shared TAC                                                        1,700           22,000            3,000
U.S. TAC                                                             374 (22)       7,480 (34)       2,070 (69)
Canada TAC                                                         1,326 (78)      14,520 (66)         930 (31)
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    The 2007 TACs are based upon stock assessments conducted in July 
2006 by the Transboundary Resource Assessment Committee (TRAC). The 
TACs are consistent with the results of the TRAC and the TMGC's harvest 
strategy.
    The regulations for the U.S./Canada Management Understanding, 
implemented by Amendment 13, at Sec.  648.85(a)(2)(ii), state the 
following: ``Any overages of the GB cod, haddock, or yellowtail 
flounder TACs that occur in a given fishing year will be subtracted 
from the respective TAC in the following fishing year.'' Therefore, 
should an analysis of the catch of the shared stocks by U.S. vessels 
indicate that an overage occurred during FY 2006, the pertinent TAC 
will be adjusted downward in order to be consistent with the 
regulations. Although it is very unlikely, it is possible that a very 
large overage could result in an adjusted TAC of zero. If an adjustment 
to one of the 2007 TACs for cod, haddock, or yellowtail flounder is 
necessary, the public will be notified through publication in the 
Federal Register and through a letter to permit holders.

Comments and Responses

    No comments relevant to the proposed rule were received by the 
close of business on April 11, 2007.

[[Page 25710]]

Classification

    NMFS has determined that this final rule is consistent with the FMP 
and is consistent with the Magnuson-Stevens Fishery Conservation and 
Management Act and other applicable laws.
    This final rule is published pursuant to 50 CFR part 648 and has 
been determined to be not significant for purposes of Executive Order 
12866.
    NMFS prepared a FRFA, which incorporates the IRFA and this final 
rule, and describes the economic impact that this action may have on 
small entities. No comments on the economic impacts of the TACs were 
received.
    The specification of hard TACs for the U.S./Canada shared stocks of 
Eastern GB cod, Eastern GB haddock, and GB yellowtail flounder is 
necessary in order to ensure that the fishing mortality levels for 
these shared stocks are achieved in the U.S./Canada Management Area 
(the geographic area on GB defined to facilitate management of stocks 
of cod, haddock, and yellowtail flounder that are shared with Canada). 
A full description of the objectives and legal basis for the TACs is 
contained in the preamble of the proposed rule. A summary of the 
analysis follows. A copy of this analysis is available from NMFS (see 
ADDRESSES).
    The specification of hard TACs is necessary in order to ensure that 
the agreed upon U.S./Canada fishing mortality levels for these shared 
stocks of fish are achieved in the U.S./Canada Management Area. A 
description of the objectives and legal basis for these TACs is 
contained in the SUMMARY of the proposed rule.
    Under the Small Business Administration (SBA) size standards for 
small fishing entities ($3.5 million), all permitted and participating 
vessels in the groundfish fishery are considered to be small entities 
and, therefore, there are no differential impacts between large and 
small entities. Gross sales by any one entity (vessel) do not exceed 
this threshold. The maximum number of small entities that could be 
affected by the TACs is approximately 1,000 vessels, i.e., those with 
limited access NE multispecies days-at-sea (DAS) permits that have an 
allocation of Category A or B DAS. Realistically, however, the number 
of vessels that choose to fish in the U.S./Canada Management Area, and 
that therefore would be subject to the associated restrictions, 
including hard TACs, would be substantially less.
    From May 2005 through April 2006 (i.e., FY 2005), 184 individual NE 
multispecies DAS vessels fished in the U.S./Canada Management Area. 
Because the regulatory regime in FY 2007 will be similar to that in 
place in FY 2005, it is likely that the number of vessels that choose 
to fish in the area during FY 2007 will be similar to the number of 
vessels that fished in the area during FY 2005.
    The economic impacts of these TACs are difficult to predict due to 
several factors, but are based on the amount of catch, as well as the 
price of the fish. Furthermore, the economic impacts are difficult to 
predict due to the relative newness of these regulations (May 2004; 
Amendment 13 to the FMP). Therefore, there are relatively few historic 
data, and little is known about the specific fishing patterns or market 
impacts that may be caused by this hard TAC management system. In 
general, the rate at which yellowtail flounder is caught in the Eastern 
and Western U.S./Canada Management Area and the rate at which cod is 
caught in the Eastern U.S./Canada Area will determine the length of 
time the Eastern U.S./Canada Area will remain open. The length of time 
the Eastern U.S./Canada Area is open will determine the amount of 
haddock that is caught. During the 2004 and 2005 fishing years, the 
TACs were not fully utilized, and inseason changes to the regulations 
impacted the fishery. Two of the three specified TACs are being reduced 
(haddock and yellowtail flounder), and could, under certain 
circumstances, constrain fishing opportunity on cod (for which the TAC 
is increasing).
    The amount of GB cod, haddock, and yellowtail flounder landed and 
sold will not be equal to the sum of the TACs, but will be reduced as a 
result of discards (discards are counted against the hard TAC), and may 
be further reduced by limitations on access to stocks that may result 
from the associated rules. Reductions to the value of the fish may 
result from fishing derby behavior and the potential impact on markets. 
The overall economic impact of the proposed 2007 U.S./Canada TACs will 
likely be different from the economic impacts of the 2006 TACs due to 
the reduced yellowtail flounder TAC, and may result in reduced revenue. 
Although the 2007 cod TAC represents an increase from 2006, the 2007 
haddock and yellowtail flounder TACs represent decreases from 2006. For 
yellowtail flounder, the decrease is substantial. Based on the 
estimates in the EA, revenues from cod caught in the Eastern U.S./
Canada Area may increase from 2006 to 2007 by approximately 32 percent, 
and revenue from haddock and yellowtail flounder in the U.S./Canada 
Management Area may decline by 16 percent and 57 percent, respectively. 
According to the analysis, the overall change in revenue from 2006 to 
2007 for the 3 species combined could amount to a 33-percent decline 
(or approximately $ 3.5 million), although it is difficult to predict 
future fishing patterns, and there are factors that may mitigate the 
decline in overall revenue. For example, there could be an increase in 
yellowtail flounder price, as well as the potential for increased 
opportunity to harvest haddock from the Eastern U.S./Canada Area. If 
the larger GB cod TAC results in a longer period of time that the 
Eastern U.S./Canada Area is open, and if vessels attempt to, and are 
successful in avoidance of cod, the Eastern Area may be open for a 
longer period of time, resulting in additional revenue from haddock.
    Although unlikely, a downward adjustment to the TACs specified for 
FY 2007 could occur after the start of the fishing year, if it is 
determined that the U.S. catch of one or more of the shared stocks 
during the 2006 fishing year exceeded the relevant TACs specified for 
FY 2006. The economic effects of this downward adjustment would likely 
result in a short term loss of revenue proportional to the magnitude of 
the adjustment.
    Three alternatives were considered for FY 2007: The proposed TACs, 
the status quo TACs, and the no action alternative. No additional set 
of TACs are proposed because the process involving the TMGC and the 
Council yields only one proposed set of TACs. Accordingly, NMFS chooses 
to either accept or reject the recommendation of the Council. The TACs 
implemented through this action would have a similar economic impact as 
the FY 2006 TACs. Adoption of the status quo TACs, however, would not 
be consistent with the FMP because the status quo TACs do not represent 
the best available scientific information incorporated from the most 
recent TRAC. The status quo TACs are based on stock assessments 
conducted in 2005, and are therefore outdated and do not reflect the 
most recent status of the stocks determined during the 2006 
assessments. Although the no action alternative (no TACs) would not 
constrain catch in the U.S./Canada Management Area, and therefore would 
likely provide some additional fishing opportunity, the no action 
alternative is not a reasonable alternative because it is inconsistent 
with the FMP in both the short and long term. On the short term, the no 
action alternative would not prevent overfishing, and in the long term, 
the no action alternative would not rebuild the stocks and consistently 
attain optimum yield for the fishery.

[[Page 25711]]

 The FMP requires specification of hard TACs in order to limit catch of 
shared stocks to the appropriate level (i.e., consistent with the 
Understanding and the FMP). As such, the no action alternative would 
likely provide less economic benefits to the industry in the long term 
than the preferred alternative.
    There is good cause under 5 U.S.C. 553(d)(3), to waive the 30-day 
delay in effective date because doing otherwise may compromise full and 
effective management of the FMP. If the 30-day delay in effectiveness 
is not waived, the hard TACs would not be in effect at the beginning of 
the fishing year (May 1, 2007). Such a delay in implementation could 
impact the fishery in several different ways.
    Implementation of the hard TAC after the beginning of the fishing 
year would prevent NMFS from being able to prevent the possible 
overharvest of some or all of the stocks managed by a hard TAC. Most 
notably, in the case of Eastern GB cod and GB yellowtail flounder, 
because the size of the TACs are relatively small, and the possibility 
that the catch rate of cod and yellowtail flounder could be high during 
the month of May, it is likely that the TACs could be reached and 
exceeded during the 30-day delay in effectiveness period. If no TACs 
are in place, the Regional Administrator would be unable to take action 
to stop fishing on these stocks. Failure to stop fishing on the stocks 
when the TAC is caught would undermine the GB cod and yellowtail 
flounder rebuilding schedules of the FMP. Furthermore, any resulting 
TAC overages must be deducted from the following year's TAC, which 
would result in a negative economic impact to the fishery for FY 2007. 
Due to the fact that the TAC specifications originally recommended by 
the TMGC were remanded by the Council, there was a delay of over two 
months in the Council's final recommendation to NMFS for the FY 2007 
TACs on November 16, 2006. This caused subsequent delays in the TAC 
specification process by NMFS, which includes comprehensive 
environmental and socioeconomic analyses, internal review, and rule-
making, thereby resulting in later than normal publication of the 
proposed rule for this action.
    The specified TACs do not modify any collection of information, 
reporting, or recordkeeping requirements. The specified TACs do not 
duplicate, overlap, or conflict with any other Federal rules.
    Section 212 of the Small Business Regulatory Enforcement Fairness 
Act of 1996 states that, for each rule or group of related rules for 
which an agency is required to prepare a FRFA, the agency shall publish 
one or more guides to assist small entities in complying with the rule, 
and shall designate such publications as ``small entity compliance 
guides.'' The agency shall explain the actions a small entity is 
required to take to comply with a rule or group of rules. As part of 
this rulemaking process, a letter to permit holders that also serves as 
a small entity compliance guide (the guide) was prepared. Copies of 
this final rule are available from the Northeast Regional Office, and 
the guide, i.e., permit holder letter, will be sent to all holders of 
limited access DAS permits for the NE multispecies fishery. The guide 
and this final rule will be posted on the NMFS NE Regional Office web 
site at http://www.nero.noaa.gov and will also be available upon 
request.

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

    Dated: May 3, 2007.
William T. Hogarth,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
[FR Doc. 07-2270 Filed 5-3-07; 2:07 pm]
BILLING CODE 3510-22-S


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