Federal Register / Vol. 70, No. 224 / Tuesday, November 22, 2005 / Proposed Rules 70575 

between the development of the 

proposed standards and the publication 

of this proposed rule, the potential need 

to upgrade the data content of the 

specifications or the use of Release 2 of 

the Clinical Document Architecture 

(CDA), numerous members of the 

industry and professional associations 

have requested more time to analyze the 

potential impact and consequences of 

the proposed rule. Thus, we have 

decided to extend the comment period 

for an additional 60 days. This 

document announces the extension of 

the public comment period to January 

23, 2006. 

Authority: Secs. 1173 and 1175 of the 

Social Security Act (42 U.S.C. 1302d–2 and 

1320d–4). 

Dated: November 9, 2005. 

Mark B. McClellan, 

Administrator, Centers for Medicare & 

Medicaid Services. 

Dated: November 17, 2005. 

Michael O. Leavitt, 

Secretary. 

[FR Doc. 05–23077 Filed 11–21–05; 8:45 am] 

BILLING CODE 4120–01–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 622 

[Docket No. 051114298–5298–01; I.D. 

110105C] 

RIN 0648–AT12 

Fisheries of the Caribbean, Gulf of 

Mexico, and South Atlantic; Gulf of 

Mexico Commercial Grouper Fishery; 

Trip Limit 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Proposed rule; request for 

comments. 

SUMMARY: NMFS issues this proposed 

rule to implement a regulatory 

amendment to the Fishery Management 

Plan for the Reef Fish Resources of the 

Gulf of Mexico (FMP) prepared by the 

Gulf of Mexico Fishery Management 

Council (Council). This proposed rule 

would establish a 6,000–lb (2,722–kg) 

commercial trip limit for shallow-water 

and deep-water grouper, combined, in 

the exclusive economic zone of the Gulf 

of Mexico. The intended effect of this 

proposed rule is to minimize the effects 

of derby fishing and prolong the fishing 

season. 

DATES: Written comments on the 

proposed rule must be received no later 

than 5 p.m., eastern time, on December 

7, 2005. 

ADDRESSES: You may submit comments 

on the proposed rule by any of the 

following methods: 

• E-mail: 0648–

AT12.Proposed@noaa.gov. Include in 

the subject line the following document 

identifier: 0648–AT12. 

• Federal e-Rulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Andy Strelcheck, Southeast 

Regional Office, NMFS, 263 13th 

Avenue South, St. Petersburg, FL 33701. 

• Fax: 727–824–5308; Attention: Andy 

Strelcheck. 

Copies of the regulatory amendment, 

which includes a Regulatory Impact 

Review (RIR), an Initial Regulatory 

Flexibility Analysis (IRFA), and an 

Environmental Assessment (EA), may be 

obtained from the Gulf of Mexico 

Fishery Management Council, 2203 N. 

Lois Avenue, Suite 1100, Tampa, FL 

33607; telephone: 813–348–1630; fax: 

813–348–1711; e-mail: 

gulfcouncil@gulfcouncil.org. Copies of 

the regulatory amendment may also be 

downloaded from the Council’s website 

at www.gulfcouncil.org. 

FOR FURTHER INFORMATION CONTACT: 

Andy Strelcheck, telephone: 727–824–

5374; fax: 727–824–5308; e-mail: 

andy.stelcheck@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 under the authority of the 

Magnuson-Stevens Fishery 

Conservation and Management Act 

(Magnuson-Stevens Act) by regulations 

at 50 CFR part 622. 

On July 15, 2004 (69 FR 33315, June 

15, 2004), NMFS implemented 

Secretarial Amendment 1 to the FMP to 

establish a red grouper rebuilding plan, 

including a 5.31 million-lb (2.42 

million-kg), gutted weight, commercial 

quota and a 1.25 million-lb (0.57 

million-kg), gutted weight, recreational 

target catch level for red grouper. 

Secretarial Amendment 1 also reduced 

the commercial quotas for deep-water 

grouper (i.e., speckled hind and 

yellowedge, misty, warsaw, and snowy 

grouper) and shallow-water grouper 

(i.e., all grouper other than deep-water 

grouper, goliath grouper, and Nassau 

grouper and including scamp before the 

quota for shallow-water grouper is 

reached). In 2004, the commercial deepwater grouper and shallow-water 

grouper quotas were reached prior to the 

end of the fishing year, and the fisheries 

were closed on July 15, 2004 (69 FR 

41433, July 9, 2004), and November 15, 

2004 (69 FR 65092, November 10, 2004), 

respectively. In November 2004, the 

Council, at the request of 

representatives of the commercial 

grouper fishing industry, asked NMFS 

to develop an emergency or interim rule 

establishing trip limits for the 

commercial grouper fishery in 2005. 

Trip limits, which began at 10,000 lb 

(4,536 kg) and stepped down to 7,500 lb 

(3,402 kg) and then to 5,500 lb (2,495 

kg) at defined trigger points, were 

implemented by NMFS through an 

emergency rule that was effective from 

March 3 through August 16, 2005 (70 FR 

8037, February 17, 2005). NMFS 

extended the emergency rule and trip 

limits for an additional 180 days 

effective August 17, 2005, through 

February 12, 2006 (70 FR 48323, August 

17, 2005). These trip limits were 

implemented to prolong the shallowwater grouper and deep-water grouper 

fishing seasons in 2005 and to reduce 

the adverse effects associated with 

derby fishing. However, the emergency 

trip limits were not restrictive enough to 

achieve the intended objectives. In fact, 

the deep-water and shallow-water 

grouper fisheries closed earlier in 2005 

(June 23, 2005, and October 10, 2005, 

respectively) than they had in 2004. 

The Council prepared a regulatory 

amendment to evaluate alternatives and 

establish more permanent trip limits for 

the commercial grouper fishery. After 

considering the effectiveness of existing 

trip limits, management alternatives, 

and public testimony, the Council 

adopted a 6,000–lb (2,722–kg) 

commercial trip limit for shallow-water 

grouper and deep-water grouper, 

combined. This proposed rule would 

implement the 6,000–lb (2,722–kg) trip 

limit. To maximize the effectiveness of 

this more restrictive trip limit, the 

Council and NMFS have agreed the 

existing trip limits implemented via 

emergency rule (70 FR 48323, August 

17, 2005) would terminate upon 

implementation of the 6,000–lb (2,722–

kg) trip limit proposed in this rule. 

Classification 

NMFS has determined that the 

proposed rule is consistent with the 

FMP and preliminarily determined that 

the rule is consistent with the 

Magnuson-Stevens Fishery 

Conservation and Management Act and 

other applicable laws. 

This proposed rule has been 

determined to be not significant for 

purposes of Executive Order 12866. 

NMFS prepared an IRFA as required 

by section 603 of the Regulatory 

Flexibility Act. The IRFA describes the 

70576 Federal Register / Vol. 70, No. 224 / Tuesday, November 22, 2005 / Proposed Rules 

economic impact this proposed rule, if 

adopted, would have on small entities. 

A description of the action, why it is 

being considered, and the legal basis for 

this action are contained at the 

beginning of this section in the 

preamble and in the SUMMARY section of 

the preamble. A summary of the 

analysis follows. 

This proposed rule would establish a 

6,000–lb (2,722–kg) trip limit for the 

commercial grouper fishery in the Gulf 

of Mexico. The purpose for this 

regulatory amendment is to reduce the 

adverse socioeconomic effects of derby 

fishing in the commercial sector and 

prolong the fishing season. The 

Magnuson-Stevens Fishery 

Conservation and Management Act 

provides the statutory basis for the 

proposed rule. 

No duplicative, overlapping, or 

conflicting Federal rules have been 

identified. 

An estimated 1,129 vessels were 

permitted to engage in commercial 

fishing for Gulf reef fish (which include 

grouper) in early 2004, down from 1,718 

vessels in 1993. Although a permit 

moratorium has limited access in this 

fishery since 1992, transfer of permits is 

not restricted. Those seeking to enter the 

fishery can purchase a permit from 

those seeking to exit the fishery, 

provided they meet income and other 

requirements. However, total 

participation in terms of both the 

number of permits and the number of 

vessels landing Gulf reef fish has 

consistently declined since 1993. 

An estimated 1,157 vessels had 

permits to fish commercially for Gulf 

reef fish from 2002–2004, and 1,021 

vessels had historical, logbook-reported 

landings of Gulf reef fish. This total 

includes 928 vessels with landings of 

Gulf grouper, for which the median 

estimated gross revenue for all reported 

landings of fish was approximately 

$20,000 per vessel per year, and for 

which the maximum revenue ranged 

from $478,000-$543,000. For the 

longline fleet (162 vessels per year, on 

average), the median annual gross 

revenue ranged from $96,000-$102,000 

(84–90 percent from grouper). The 

handline fleet (765 vessels per year, on 

average) had median annual gross 

revenue of under $17,000 (44–48 

percent from grouper). Some vessels use 

both gears, so the numbers of vessels 

cannot be added across gear types. 

For the 928 vessels with reported 

landings of Gulf grouper, historical 

fishery performance resulted in 

estimated annual average gross revenue 

of $46 million for all logbook-reported 

fish in 2002–2004. This includes gross 

revenue of $39 million for all fish on 

trips with grouper landings ($25 million 

from red grouper). The net revenue for 

these trips was approximately $29 

million (annual averages per vessel for 

928 vessels are $41,000 for gross 

revenue and $31,000 for net revenue). 

Net revenue for the commercial fishing 

sector, computed as trip revenue minus 

trip costs, includes returns to all labor 

and capital. 

Simulation of fishery performance 

under status quo conditions produced 

estimates that are slightly lower than 

historical fishery performance: gross 

revenue of approximately $37 million 

for all fish on trips with grouper 

landings and $27 million for net 

revenue (annual averages per vessel for 

922 vessels are $40,000 for gross 

revenue and $29,000 for net revenue). 

Projected net revenue is approximately 

$10.7 million for the longline fleet 

(average, $66,000 per vessel per year for 

161 vessels), and $14.5 million for the 

vertical line fleet (average, $19,000 per 

vessel per year for 748 vessels). 

Between 1997–2000, there were on 

average 123 reef fish dealers actively 

buying and selling in the grouper 

market. Of these, 101 dealers (82 

percent) sold more than $30,000 per 

year worth of domestic grouper on a 

regular basis. These dealers may hold 

multiple types of permits. Because the 

extent of business operation for these 

dealers is unknown, it is not possible to 

determine what percentage of their 

business comes from grouper. Average 

employment information per reef fish 

dealer is not known, but total 

employment in 1997 for reef fish 

processors in the Southeast was 

estimated at approximately 700 

individuals, both part and full time. It 

is assumed that all processors must be 

dealers, yet a dealer need not be a 

processor. Therefore, total dealer 

employment is expected to be slightly 

more than 700 individuals. Since none 

of the reef fish processors meet the SBA 

employment threshold, it is unlikely 

that any of the dealers will meet that 

threshold. 

The proposed rule would not change 

current reporting, recordkeeping, and 

other compliance requirements under 

the FMP. These requirements include 

qualification criteria for the commercial 

permits, landing reports for vessels with 

commercial permits, and participation 

in additional data collection programs if 

selected by NMFS. All of the 

information elements required for these 

requirements are standard elements 

essential to the successful operation of 

a fishing business and should, therefore, 

already be collected and maintained as 

standard operating practice by the 

business. The requirements do not 

require professional skills and, 

therefore, are deemed not to be onerous. 

The Small Business Administration 

defines a small business in the 

commercial fishery sector as a firm that 

is independently owned and operated, 

is not dominant in its field of operation, 

and has annual receipts up to $3.5 

million per year. For support industries, 

the appropriate thresholds are a firm 

with fewer than 500 employees in the 

case of fish processors, or fewer than 

100 employees in the case of fish 

dealers. Given the profiles presented 

above, it is determined that all 

commercial fishing entities and dealers 

that will be affected by the proposed 

action are small business entities. 

Because all said entities would be 

potentially affected, it is determined 

that the proposed action will affect a 

substantial number of small entities. 

The outcome of ‘‘significant economic 

impact’’ can be ascertained by 

examining two issues: 

disproportionality and profitability. The 

disproportionality question is do the 

regulations place a substantial number 

of small entities at a significant 

competitive disadvantage to large 

entities? All the commercial fishing or 

dealer entities affected by the proposed 

rule are considered small entities, so the 

issue of disproportionality does not 

arise in the present case. The 

profitability question is do the 

regulations significantly reduce profit 

for a substantial number of small 

entities? The proposed rule is projected 

to reduce net revenues by $760,000 to 

$1.09 million for the bottom longline 

sector. Compared with projected annual 

net revenue of $10.7 million for this 

sector under the status quo ($66,000 per 

vessel per year for 161 vessels), the 

projected net revenue reduction equates 

to approximately $4,700-$6,700, or 

approximately 7–10 percent, per vessel 

per year, on average. 

For the vertical line sector, the 

proposed rule is projected to increase 

net revenues by $81,000-$112,000 per 

year. Compared with projected annual 

net revenue of $14.5 million for this 

sector under the status quo ($19,000 per 

vessel per year for 748 vessels), the 

projected increase in net revenue 

equates to approximately $100-$150 per 

vessel, or less than a 1 percent increase. 

The proposed commercial trip limits 

are expected to reduce the adverse but 

unquantifiable economic effects of 

derby fishing that are expected to 

develop under the status quo. Although 

the direct impacts of derby fishing 

cannot be quantified using current data 

and models, they are expected to be 

substantial, and reduction of those 

derby effects is expected to mitigate any 

Federal Register / Vol. 70, No. 224 / Tuesday, November 22, 2005 / Proposed Rules 70577 

losses in net revenue to the fishery 

associated with the implementation of 

trip limits. 

Five alternatives, including the status 

quo, were considered relative to the 

proposed commercial action. The status 

quo alternative would eliminate the 

short-term adverse impacts of the 

proposed action but would not address 

the potential development of a derby 

fishery and would not, therefore, 

achieve the Council’s objectives. 

A second alternative to the proposed 

action would establish a step-down trip 

limit consisting of trip limits of 10,000, 

7,500, and 5,500 lb (4,536, 3,402, and 

2,495 kg), gutted weight, based on target 

dates and accumulated landing totals. 

This alternative, while resulting in 

lower short-term reductions in net 

revenues relative to the proposed action, 

does not appear to sufficiently constrain 

commercial landings, as evidenced by 

2005 fishery performance. Therefore, 

this alternative is not sufficient to lessen 

derby conditions and reduce the length 

of the quota closure. 

The third alternative to the proposed 

action would start the commercial trip 

limit at 7,500 lb (3,402 kg) with stepdown to 5,000 lb (2,268 kg). This 

alternative would potentially reduce the 

short-term reduction in net revenues 

relative to the proposed action. 

However, based on preliminary 2005 

fishery performance, the starting limit 

appears insufficient to counter derby 

pressure. 

The fourth alternative would also start 

with an initial trip limit of 7,500 lb 

(3,402 kg) with a step-down to 3,500 lb 

(1,588 kg). The short-term adverse 

impacts of this alternative, however, 

exceed those of the proposed action. 

The fifth alternative to the proposed 

commercial action would begin the 

fishery with a 4,000–lb (1,814–kg) trip 

limit and allow the trip limit to either 

be increased, decreased, or remain the 

same depending upon fishery 

performance. Although this scenario 

cannot be fully analyzed due to the 

absence of a clearly specified step up/ 

down decision rule, the initial limit is 

so low that it is expected to generate 

excessive negative impacts, particularly 

on the bottom longline sector. 

Copies of the IRFA are available from 

the Council (see ADDRESSES). 

List of Subjects in 50 CFR Part 622 

Fisheries, Fishing, Puerto Rico, 

Reporting and recordkeeping 

requirements, Virgin Islands. 

Dated: November 17, 2005. 

John Oliver, 

Deputy Assistant Administrator for 

Operations, 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. In § 622.44, introductory text and 

paragraph (g) are revised to read as 

follows: 

§ 622.44 Commercial trip limits. 

Commercial trip limits are limits on 

the amount of the applicable species 

that may be possessed on board or 

landed, purchased, or sold from a vessel 

per day. A person who fishes in the EEZ 

may not combine a trip limit specified 

in this section with any trip or 

possession limit applicable to state 

waters. A species subject to a trip limit 

specified in this section taken in the 

EEZ may not be transferred at sea, 

regardless of where such transfer takes 

place, and such species may not be 

transferred in the EEZ. For fisheries 

governed by this part, commercial trip 

limits apply as follows (all weights are 

round or eviscerated weights unless 

specified otherwise): 

* * * * * 

(g) Gulf deep-water and shallow-water 

grouper, combined. For vessels 

operating under the quotas in 

§ 622.42(a)(1)(ii) or (a)(1)(iii), the trip 

limit for Gulf deep-water and shallowwater grouper combined is 6,000 lb 

(2,722 kg), gutted weight. However, 

when the quotas in § 622.42(a)(1)(ii) or 

(a)(1)(iii) are reached and the respective 

fishery is closed, the commercial trip 

limit for the species subject to the 

closure is zero. (See § 622.42(a)(1)(ii) 

and (a)(1)(iii) for the species included in 

the deep-water and shallow-water 

grouper categories, respectively.) 

[FR Doc. 05–23102 Filed 11–17–05; 2:58 pm] 

BILLING CODE 3510–22–S