63786 Federal Register / Vol. 75, No. 200 / Monday, October 18, 2010 / Proposed Rules 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 622 

[Docket No. 100806332–0491–01] 

RIN 0648–BA02 

Fisheries of the Caribbean, Gulf of 

Mexico, and South Atlantic; Reef Fish 

Fishery of the Gulf of Mexico; Gag 

Grouper Management Measures 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Proposed temporary rule; 

request for comments. 

SUMMARY: NMFS issues this proposed 

temporary rule that would implement 

interim measures to reduce overfishing 

of gag in the Gulf of Mexico (Gulf). This 

proposed rule would reduce the 

commercial quota for gag and, thus, the 

combined commercial quota for 

shallow-water grouper species (SWG), 

prohibit recreational harvest of gag, and 

suspend red grouper multi-use 

allocation in the Gulf grouper and 

tilefish individual fishing quota (IFQ) 

program, as requested by the Gulf of 

Mexico Fishery Management Council 

(Council). The intended effect of this 

proposed rule is to reduce overfishing of 

the gag resource in the Gulf. 

DATES: Written comments must be 

received on or before November 2, 2010. 

ADDRESSES: You may submit comments 

on the proposed rule identified by 

NOAA–NMFS–2010–0168 by any of the 

following methods: 

• Electronic submissions: Submit 

electronic comments via the Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Peter Hood, Southeast 

Regional Office, NMFS, 263 13th 

Avenue South, St. Petersburg, FL 33701. 

Instructions: No comments will be 

posted for public viewing until after the 

comment period has closed. All 

comments received are a part of the 

public record and will generally be 

posted to http://www.regulations.gov 

without change. All Personal Identifying 

Information (for example, name, 

address, etc.) voluntarily submitted by 

the commenter may be publicly 

accessible. Do not submit Confidential 

Business Information or otherwise 

sensitive or protected information. 

NMFS will accept anonymous 

comments (enter N/A in the required 

field if you wish to remain anonymous). 

You may submit attachments to 

electronic comments in Microsoft Word, 

Excel, WordPerfect, or Adobe PDF file 

formats only. 

Comments received through means 

not specified in this rule will not be 

considered. 

Copies of documents supporting this 

proposed rule, which include an 

environmental assessment and an initial 

regulatory flexibility analysis (IRFA), 

may be obtained from Peter Hood, 

Southeast Regional Office, NMFS, 263 

13th Avenue South, St. Petersburg, FL 

33701. 

FOR FURTHER INFORMATION CONTACT: 

Peter Hood, telephone: 727–824–5305 or 

e-mail: Peter.Hood@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 Fishery 

Conservation and Management Act 

(Magnuson-Stevens Act). 

Background 

The Magnuson-Stevens Act requires 

NMFS and regional fishery management 

councils to prevent overfishing and 

achieve, on a continuing basis, the 

optimum yield (OY) from Federally 

managed fish stocks. These mandates 

are intended to ensure fishery resources 

are managed for the greatest overall 

benefit to the nation, particularly with 

respect to providing food production 

and recreational opportunities, and 

protecting marine ecosystems. To 

further this goal, the Magnuson-Stevens 

Act requires fishery managers to end 

overfishing of stocks while achieving, 

on a continuing basis, the OY from each 

fishery, and to minimize bycatch and 

bycatch mortality to the extent 

practicable. 

In a letter dated August 11, 2009, 

NMFS informed the Council that gag are 

overfished and undergoing overfishing. 

Under section 304(e) of the MagnusonStevens Act, after a Council has been 

notified of a stock’s overfishing status, 

a fishery management plan or plan 

amendment must be developed and 

implemented within two years of 

notification, to end overfishing and 

rebuild the stock. The Council is 

currently developing Amendment 32 to 

the FMP which includes measures to 

end overfishing of gag and establish a 

rebuilding plan for the gag stock. 

However, because Amendment 32, if 

approved, would not likely be 

implemented until late 2011 or the 

beginning of 2012, this temporary rule 

contains management measures 

intended to address overfishing of gag 

on an interim basis. NMFS proposes a 

reduced commercial quota for gag of 

100,000 lb (45,359 kg), a reduced 

commercial SWG quota of 4.83 million 

lb (2.19 million kg), a suspension of red 

grouper multi-use shares in the Gulf 

grouper and tilefish IFQ program, and a 

prohibition on the recreational harvest 

of gag. These measures will remain in 

effect for 180 days, with the possibility 

of extending for another 186 days, 

unless amended by subsequent 

rulemaking. 

Status of Stock 

The Southeast Data, Assessment, and 

Review (SEDAR) update assessment for 

gag was conducted in April 2009, with 

the objective of updating the 2006 

SEDAR 10 gag benchmark assessment. 

Data sources for the update assessment 

included both fishery-dependent and 

fishery-independent data through 2008. 

The Council’s Scientific and Statistical 

Committee (SSC) recommended a model 

that allows the natural mortality rate 

from 2005, a year when there was an 

extensive red tide event along the West 

Florida Shelf, to adjust above the base 

natural mortality rate. This corresponds 

to an 18-percent mortality rate. The SSC 

recommended an acceptable biological 

catch (ABC) of 1.17 million lb (0.53 

million kg) which is the 2011 yield 

estimated by the fishing mortality rate 

(F) needed to rebuild the stock in 10 

years. 

In the course of developing 

management alternatives for gag, 

potential inconsistencies in commercial 

and recreational estimates of discards 

were discovered. Preliminary estimates 

of commercial gag discards provided by 

NOAA’s Southeast Fisheries Science 

Center (SEFSC) indicated commercial 

discards were two orders of magnitude 

greater when estimated using reef fish 

observer data compared with methods 

used in the SEDAR update assessment 

for the stock. Additionally, size and age 

distributions computed for recreational 

discards in the update assessment 

indicated most discards were close to 

the minimum size limit in more recent 

years. However, Mote Marine 

Laboratory tagging data and headboat 

and Florida Fish and Wildlife 

Conservation Commission observer data 

indicated a broader size range for 

discarded fish. The Council discussed 

these discrepancies at their August 2010 

meeting and agreed that another review 

of the gag assessment would be 

conducted in the fall or winter of 2010 

to address these discrepancies. 

Therefore, NMFS anticipates a 

subsequent rulemaking after the review 


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Federal Register / Vol. 75, No. 200 / Monday, October 18, 2010 / Proposed Rules 63787 

has been completed based on revised 

assessment information. 

A red grouper update assessment was 

conducted at same time as the gag 

update assessment. Because of the 

difference in how recreational discard 

size distributions were estimated 

between the assessments, the 

discrepancies in discard information 

did not trigger the same concerns for red 

grouper. Therefore, the Council did not 

make a similar request for the red 

grouper assessment to be reviewed. 

However, the Council did recognize the 

effects discard estimation could have on 

the assessment and, therefore, requested 

the SEFSC to review observer discard 

information to determine the magnitude 

of these effects for red grouper. 

Grouper and Tilefish IFQ Program 

The commercial sector is currently 

managed under an IFQ program 

implemented in January 2010. Under 

this program, each qualifying fisherman 

was allocated IFQ shares based on 

historical participation in the grouper 

and tilefish component of the Gulf reef 

fish fishery. Each year, fishermen 

receive allocation based on the current 

quota and the amount of shares each 

holds. To allow for flexibility and to 

reduce bycatch, at the beginning of each 

fishing year, a percentage of each 

fisherman’s gag and red grouper 

allocations are designated as multi-use 

allocations. The IFQ program designates 

4 percent of red grouper allocation and 

8 percent of gag allocation to multi-use 

allocation. Red grouper multi-use 

allocation is allocation that may be used 

to harvest red grouper after all of an IFQ 

account holder’s (shareholder or 

allocation holder’s) red grouper 

allocation has been used or transferred; 

and to harvest gag after both gag and gag 

multi-use allocation has been used or 

transferred. Gag multi-use allocation is 

allocation that may be used to harvest 

gag after all of an IFQ account holder’s 

(shareholder or allocation holder’s) gag 

allocation has been used or transferred; 

and to harvest red grouper after both red 

grouper and red grouper multi-use 

allocation has been used or transferred. 

However, using all of the current red 

grouper multi-use allocations to harvest 

gag, alone could result in gag 

commercial landings exceeding the 

quota. This action does not reduce the 

overall red grouper allocation but will 

prohibit the conversion of red grouper 

multi-use allocation that could lead to 

additional gag landings. 

Management Measures Contained in 

This Proposed Rule 

This interim rule would reduce the 

commercial quota for gag to 100,000 lb 

(45,359 kg). This quota would be 

released at the beginning of the 2011 

fishing year so IFQ participants would 

have the opportunity to fish their 

allocation throughout the year. 

The SSC had previously 

recommended a commercial gag quota 

of 390,000 lb (176,901 kg). However, 

because of the method by which dead 

discards were calculated in the gag 

update assessment, the review of the 

update assessment could result in a 

lower allowable harvest. This lower 

harvest would be implemented through 

Amendment 32 to the FMP. If NMFS 

were to prohibit commercial harvest 

completely through this interim rule, 

then any gag incidentally caught when 

fisherman target other reef fish would 

result in discards. Therefore, the 

Council requested, and NMFS proposes 

a quota of 100,000 lb (45,359 kg), which 

would allow a minimum level of 

incidentally caught gag to be retained 

and counted against the commercial 

quota. 

Because of the proposed reduction in 

the gag commercial quota, the 

commercial quota for SWG is proposed 

to be reduced to 4.83 million lb (2.19 

million kg). Within the SWG quota are 

separate quotas for gag and red grouper. 

The other SWG species included in this 

combined quota include black grouper, 

scamp, yellowfin grouper, rock hind, 

red hind, and yellowmouth grouper. 

Additionally, for the purposes of the 

IFQ program for Gulf groupers and 

tilefishes in § 622.20(b)(2)(v), speckled 

hind and warsaw grouper are 

considered SWG species under certain 

circumstances. After all of an IFQ 

account holder’s deep-water grouper 

(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 speckled hind and warsaw 

grouper. In this interim rule, the 

reduction of the SWG quota directly 

corresponds to the amount of the 

reduction in the commercial quota for 

gag. 

This interim rule would also suspend 

red grouper multi-use allocation to 

ensure the gag commercial quota is not 

exceeded. Red grouper multi-use 

allocation will be addressed further in 

Amendment 32 to the FMP. 

This interim rule would prohibit the 

recreational harvest of gag by setting the 

recreational bag limit for gag to zero. 

However, it is the intent of the Council 

to allow a 2011 recreational harvest of 

gag, likely in a limited gag fishing 

season, through management measures 

to be implemented through Amendment 

32. Although gag landings may be 

reduced through more restrictive bag 

limits, proportional reductions in gag 

discards and associated discard 

mortality are not likely based on high 

levels of gag bycatch and bycatch 

mortality within other components of 

the Gulf reef fish fishery. 

At its August 2010 Council meeting, 

the Council indicated a preference for a 

summer recreational fishing season for 

gag based on projections from the 2009 

gag stock assessment, and expressed its 

intent to implement such a recreational 

season in Amendment 32. 

The rationale for prohibiting gag 

recreational harvest is based on the high 

rate of gag regulatory discards. Most of 

the recreational effort occurs in the 

coastal and nearshore waters where 

juvenile gag typically reside. Although 

the average estimated recreational 

discard mortality rates are lower than 

the commercial discard mortality rates 

(32 percent for the recreational sector 

and 67 percent for the commercial 

sector), the total number of dead 

discards within the recreational sector 

may still be comparatively high given 

the high encounter rate in the 

recreational sector. Therefore, to meet 

the Council’s intent to allow a 

recreational gag season later in 2011, it 

is important to reduce the number of 

recreational dead discards through this 

temporary rule to allow for the longest 

season length possible through 

Amendment 32. 

For the commercial sector, the 

encounter rate of regulatory discards is 

lower than that for the recreational 

sector because commercial fishing effort 

primarily occurs in offshore waters 

where adult gag typically reside. 

However, with a higher discard rate, the 

likelihood of a gag surviving after 

capture in the commercial sector is 

much lower because of the effects of 

barotrauma that occur during 

commercial harvest of gag in deeper 

waters. 

Therefore, the Council requested a 

minimal commercial gag quota to 

account for gag that are caught 

incidentally during the targeting of 

other reef fish species and allow those 

incidental gag to be counted against the 

commercial quota rather than be 

discarded dead. 

Future Action 

NMFS has determined that this 

proposed rule is necessary to reduce 

overfishing of gag in the Gulf of Mexico. 

NMFS will consider all public 

comments received on this proposed 

rule in determining whether to proceed 

with a final rule and, if so, whether any 

revisions would be appropriate in the 

final rule. If NMFS issues a final rule, 

it would be effective for not more than 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
63788 Federal Register / Vol. 75, No. 200 / Monday, October 18, 2010 / Proposed Rules 

180 days after publication, as authorized 

by section 305(c) of the MagnusonStevens Act. The final rule could be 

extended for an additional 186 days, 

provided that the public has had an 

opportunity to comment on the rule. 

NMFS acknowledges the need to 

continue monitoring all sources of gag 

mortality to determine the appropriate 

level of future actions necessary to 

ensure progress consistent with the 

stock rebuilding plan over the long 

term. 

Classification 

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

Magnuson-Stevens Act, the NMFS 

Assistant Administrator has determined 

that this proposed rule is consistent 

with the regulatory amendment, 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. 

NMFS prepared an IRFA, as required 

by section 603 of the Regulatory 

Flexibility Act, for this proposed rule. 

The IRFA describes the economic 

impact that this proposed rule, if 

adopted, would have on small entities. 

A description of the action, why it is 

being considered, and the objectives of, 

and legal basis for this action are 

contained at the beginning of this 

section in the preamble and in the 

SUMMARY section of the preamble. A 

copy of the full analysis is available 

from the Council (see ADDRESSES). A 

summary of the IRFA follows. 

The Magnuson-Stevens Act provides 

the statutory basis for the proposed rule. 

The proposed temporary rule would 

reduce the commercial quota for gag, 

reduce the combined commercial SWG 

quota, prohibit recreational harvest of 

gag, and suspend red grouper multi-use 

allocation in the Gulf grouper and 

tilefish IFQ program. The purpose of 

this proposed temporary rule is to 

reduce overfishing of the gag resource in 

the Gulf. 

No duplicative, overlapping, or 

conflicting Federal rules have been 

identified. 

This proposed temporary rule is 

expected to directly affect commercial 

harvesting and for-hire operations. The 

Small Business Administration (SBA) 

has established size criteria for all major 

industry sectors in the U.S. including 

fish harvesters. A business involved in 

fish harvesting is classified as a small 

business if it is independently owned 

and operated, is not dominant in its 

field of operation (including its 

affiliates), and has combined annual 

receipts not in excess of $4.0 million 

(NAICS code 114111, finfish fishing) for 

all its affiliated operations worldwide. 

For for-hire vessels, the other qualifiers 

apply and the receipts threshold is $7.0 

million (NAICS code 713990, 

recreational industries). 

This proposed temporary rule is 

expected to directly affect commercial 

fishing vessels whose owners possess 

gag fishing quota shares and for-hire 

fishing vessels that harvest gag. As of 

October 1, 2009, 970 entities owned a 

valid commercial Gulf reef fish permit 

and thus were eligible for initial shares 

and allocation in the grouper and 

tilefish IFQ program. Of these 970 

entities, 908 entities initially received 

shares and allocation of grouper or 

tilefish, and 875 entities specifically 

received gag shares and an initial 

allocation of the commercial sector’s gag 

quota in 2010. These 875 entities are 

expected to be directly affected by the 

proposed actions to reduce the 

commercial quota for gag and disallow 

the conversion of red grouper allocation 

to multi-use allocation. 

Of the 875 entities that initially 

received gag shares, 215 were not 

commercially fishing in 2008 or 2009 

and thus had no commercial fishing 

revenue during these years. On average, 

these 215 entities received an initial 

allocation of 874 lb (397 kg) of gag in 

2010. Eight of these 215 entities also 

received a bottom longline endorsement 

in 2010. These 8 entities received a 

much higher initial allocation of gag in 

2010, with an average of 3,139 lb (1,427 

kg). 

The other 660 entities that initially 

received gag shares and allocations in 

2010 were active in commercial 

fisheries in 2008 or 2009. The maximum 

annual commercial fishing revenue in 

2008 or 2009 by an individual vessel 

with commercial gag fishing quota 

shares was approximately $606,000 

(2008 dollars). 

The average charterboat is estimated 

to earn approximately $88,000 (2008 

dollars) in annual revenue, while the 

average headboat is estimated to earn 

approximately $461,000 (2008 dollars). 

Based on these values, all commercial 

and for-hire fishing vessels expected to 

be directly affected by this proposed 

temporary rule are determined for the 

purpose of this analysis to be small 

business entities. 

Of the 660 commercial fishing vessels 

with commercial landings in 2008 or 

2009, 139 vessels did not have any gag 

landings in 2008 or 2009. Their average 

annual gross revenue in these 2 years 

was approximately $50,800 (2008 

dollars). The vast majority of these 

vessels’ commercial fishing revenue is 

from a combination of snapper, 

mackerel, dolphin, and wahoo landings. 

On average, in 2010, these vessels 

received an initial allocation of 540 lb 

(245 kg) of gag quota. 

The remaining 521 commercially 

active fishing vessels did have landings 

of gag in 2008 or 2009. Their average 

annual gross revenue from commercial 

fishing was approximately $71,000 

(2008 dollars) between the two years. 

On average, these vessels had 2,375 lb 

(1,080 kg) and 1,300 lb (591 kg) of gag 

landings in 2008 and 2009 respectively, 

or 1,835 lb (834 kg) between the 2 years. 

Gag landings accounted for 

approximately 8 percent of these 

vessels’ annual average gross revenue, 

and thus they are somewhat though not 

significantly dependent on revenue 

from gag landings. These vessels’ 

average initial gag allocation in 2010 

was 2,121 lb (964 kg). Therefore, on 

average, their 2008 gag landings were 

very near their 2010 gag allocation, but 

their 2009 gag landings were 

considerably less than their 2010 

allocation. 

Of these 521 vessels, 52 vessels also 

received a bottom longline endorsement 

in 2010. These particular vessels’ 

average annual revenue was 

approximately $156,000 (2008 dollars) 

in 2008 and 2009. Revenue from gag 

landings fell from approximately 

$15,900 to $8,400 in 2009 and thus they 

became relatively less dependent on gag 

landings. These vessels are highly 

dependent on revenue from red grouper 

landings, which accounted for 54 

percent and 47 percent of their gross 

revenue in 2008 and 2009 respectively. 

Revenue from deep-water grouper 

(DWG) landings decreased only slightly, 

from approximately $36,000 in 2008 to 

$31,000 in 2009, and thus these vessels 

became relatively more dependent on 

revenue from DWG landings. Their 

average initial 2010 allocation of gag 

was approximately 5,507 lb (2,503 kg) 

while their average gag landings were 

3,933 lb (1,788 kg) and 2,204 lb (1,002 

kg) in 2008 and 2009 respectively. Thus, 

vessels that now have a bottom longline 

endorsement have been harvesting well 

within that allocation in recent years, 

particularly in 2009. 

The for-hire fleet is comprised of 

charter vessels, which charge a fee on a 

vessel basis, and headboats, which 

charge a fee on an individual angler 

(head) basis. The harvest of gag in the 

EEZ by for-hire vessels requires a 

charter vessel/headboat permit for Gulf 

reef fish. On March 23, 2010, there were 

1,376 valid or renewable for-hire Gulf 

reef fish permits. A valid permit is a 

non-expired permit. Expired reef fish 

for-hire permits may not be actively 


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Federal Register / Vol. 75, No. 200 / Monday, October 18, 2010 / Proposed Rules 63789 

fished, but are renewable for up to 1 

year after expiration. Because of the 

extended renewal period, numerous 

permits may be expired but renewable 

at any given time of the year during the 

renewal period after the permit’s 

expiration. The majority (823, or 

approximately 60 percent) of the 1,376 

valid or renewable permits were 

registered with Florida addresses. The 

registration address for the Federal 

permit does not restrict operation to 

Federal waters off that State; however, 

vessels would be subject to any 

applicable State permitting 

requirements. Although the permit does 

not distinguish between headboats and 

charter vessels, it is estimated that 79 

headboats operate in the Gulf. The 

majority of these vessels (43, or 

approximately 54 percent) operate from 

Florida ports. Given that nearly 99 

percent of target effort for gag and 97 

percent of the economic impacts from 

the recreational sector for gag in the 

Gulf reef fish fishery are in west Florida, 

it is assumed that the 823 for-hire 

vessels (780 charter vessels and 43 

headboats) in Florida are expected to be 

directly affected by the proposed action 

to reduce the recreational bag limit for 

gag to zero. 

The 215 entities with gag shares that 

did not participate in commercial 

fishing in 2008 or 2009 have no 

commercial fishing revenue and did not 

earn profit from commercial fishing in 

those 2 years. Under the proposed 

action to decrease the commercial quota 

for gag, their allocation of gag in 2011 

would be reduced, on average, from 874 

lb (397 kg) to 61 lb (28 kg), or by 

approximately 813 lb (370 kg). Using the 

2008 average price of $3.52 per lb, this 

loss in allocation could potentially 

represent an annual loss of nearly 

$2,900 in gross revenue per entity. For 

the eight entities with gag shares that 

also possess longline endorsements, 

their average annual allocation of gag 

would be reduced from 3,139 lb (1,427 

kg) to 220 lb (100 kg), or by 2,919 lb 

(1,327 kg). Thus, their potential loss in 

gross revenue, estimated to be nearly 

$10,280, could be much higher. 

However, in general, this potential loss 

in gross revenue could only reduce 

profit if these entities not only become 

active in commercial fishing, but 

specifically intend to harvest gag in 

2011 and at a level above their reduced 

allocation. Alternatively, these potential 

losses in gross revenue could be due to 

these entities’ inability to sell the 

allocations they are losing under the 

proposed action, though this possibility 

presumes that a demand for these 

allocations exists. Regardless, the 

significance of this potential loss in 

gross revenue to these 215 entities 

cannot be evaluated given the lack of 

information on potential gross revenue 

and profit from commercial fishing in 

general and specifically for gag. 

Profit estimates are not currently 

available for the 139 entities with gag 

shares that participated in commercial 

fisheries other than gag. However, since 

these vessels did not have any gag 

landings, none of their gross revenue 

and thus none of their profit were the 

result of gag harvests. Under the 

proposed action to decrease the 

commercial quota for gag, their average 

allocation of gag in 2011 would be 

reduced from 540 lb (245 kg) to 38 lb 

(17 kg), or by approximately 502 lb (228 

kg). Using the 2008 average price of 

$3.52 per pound, this loss in allocation 

could potentially represent an annual 

loss of nearly $1,800 in gross revenue 

per entity. However, this potential loss 

in gross revenue could only lead to a 

loss in profit if these entities intend to 

become active in the gag component of 

the Gulf reef fish fishery in 2011 and at 

a level above their reduced allocation. 

Thus, for example, assuming these 

vessels intend to harvest gag in 2011 at 

a level equivalent to their 2010 

allocation, and this harvest was in 

addition to, rather than in place of, their 

recent commercial fishing activities, the 

reduction in allocation could lead to a 

maximum loss of approximately three 

percent in gross revenue which could in 

turn reduce profit. Alternatively, these 

losses in gross revenue could be due to 

these entities’ inability to sell the 

allocations they are losing under the 

proposed action, though this possibility 

presumes that a demand for these 

allocations exists. 

Profit estimates are not currently 

available for the 521 entities with gag 

shares that participated in the 

commercial gag sector of the Gulf reef 

fish fishery in 2008 or 2009. Under the 

proposed action to decrease the 

commercial gag quota, these vessels’ gag 

allocations would be reduced from 

2,121 lb (964 kg) to 148 lb (67 kg), or 

by approximately 1,973 lb (897 kg) on 

average. As these vessels have been 

harvesting at levels near their 2010 

allocation in recent years on average, 

this reduction in gag allocation is likely 

to lead to a future reduction in gag 

landings and therefore gross revenue. 

Using the average 2008 price of $3.52 

per pound, it is estimated that these 

vessels could lose nearly $6,950, or 

approximately 10 percent, in average 

annual gross revenue. A loss in gross 

revenue of this magnitude would likely 

lead to a reduction in profit. 

However, for the 52 vessels with gag 

shares that were active in the gag 

component of the Gulf reef fish fishery 

and also received a bottom longline 

endorsement in 2010, their allocation of 

gag in 2011 would decrease from 5,707 

lb (2,594 kg) to 400 lb (182 kg), or by 

approximately 5,307 lb (2,412 kg) under 

the proposed action. This loss in 

landings is estimated to be valued at 

approximately $18,700 in gross revenue, 

or 12 percent of their average annual 

gross revenue. Such a loss in gross 

revenue would likely reduce their 

profit. 

Under the proposed action to suspend 

the conversion of red grouper allocation 

into multi-use allocation valid toward 

the harvest of red grouper or gag, 

minimal adverse economic effects are 

expected as a result of commercial 

fishing entities not being allowed to 

convert 4 percent of their red grouper 

allocation into multi-use allocation. 

Multi-use allocation that has been 

converted from red grouper allocation 

can only be used to possess, land, or sell 

gag after an entity’s gag and gag multiuse allocation has been landed, sold, or 

transferred. Given the proposed 

reduction in the commercial gag quota, 

it is likely these entities will exhaust 

their gag and gag multi-use allocations 

relatively early in 2011. Revenue from 

gag landings is greater than revenue 

from an equivalent amount of red 

grouper landings since gag commands a 

relatively higher market price. Thus, 

total commercial fishing revenue and, 

therefore, profit per vessel could be 

slightly less than if the multi-use 

conversion were allowed to continue. 

Net operating revenues (NOR) are 

assumed to be representative of profit 

for for-hire vessels. It is assumed that 

823 for-hire vessels, 780 charter vessels 

and 43 headboats, participate in the 

recreational gag component of the Gulf 

reef fish fishery. Estimates of NOR from 

recreational fisheries other than gag and 

thus across all fisheries in which these 

charter vessels and headboats 

participate are not currently available. 

However, on average, NOR for charter 

vessels from trips targeting gag are 

estimated to be approximately $1.34 

million per year while NOR for 

headboats from trips targeting gag are 

estimated to be $81,000 per year. Thus, 

NOR for all trips targeting gag is 

estimated to be approximately $1.35 

million per year. The average annual 

NOR from trips targeting gag is 

estimated to be $1,716 per charter vessel 

and $1,881 per headboat. 

When the length of the gag season is 

reduced by setting the recreational bag 

limit for gag at zero, some trips that 

formerly targeted gag will instead target 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
63790 Federal Register / Vol. 75, No. 200 / Monday, October 18, 2010 / Proposed Rules 

other species while other trips that 

formerly targeted gag will be cancelled. 

Assuming the NOR per trip is constant 

regardless of the species targeted, forhire operators will only lose NOR from 

trips cancelled as a result of the 

shortened season length. Information 

regarding the number of trips cancelled 

as a result of the shortened season is not 

currently available. Thus, this analysis 

assumes that all of the current for-hire 

trips targeting gag will be cancelled. 

Because some of these trips would 

probably not be cancelled, this 

assumption is expected to overestimate 

the actual reduction in NOR associated 

with a shorter season. Thus, the 

following estimates of losses in NOR 

and profit for charter vessels and 

headboats should be considered 

maximum values. 

Under the proposed action to set the 

gag recreational bag limit for gag at zero, 

the losses in NOR from trips targeting 

gag for charter vessels and headboats are 

estimated to be approximately $750,000 

and $43,000, respectively, if the 

proposed temporary rule is not 

extended for up to 186 days as allowed 

under the Magnuson-Stevens Act for 

interim measures. Thus, the losses in 

NOR from trips targeting gag are 

estimated to be $962 and $1,000 per 

charter vessel and headboat, 

respectively. These NOR losses 

represent a loss in profit from trips 

targeting gag of approximately 56 

percent and 53 percent per charter 

vessel and headboat, respectively. 

However, if the proposed temporary 

rule is extended, the losses in NOR for 

charter vessels and headboats are 

estimated to be approximately $1.34 

million and $81,000, respectively. Thus, 

the losses in NOR are estimated to be 

$1,716 and $1,881 per charter vessel 

and headboat, respectively. These losses 

in NOR represent a loss in profit from 

trips targeting gag of 100 percent per 

charter vessel and headboat, 

respectively. The proposed action is not 

expected to affect profit for charter 

vessels and headboats from trips not 

targeting gag. Vessel dependence on 

fishing for individual species cannot be 

determined with available data. 

Although some vessels are likely more 

dependent on trips that target gag than 

other vessels, overall, about three 

percent of for-hire anglers are estimated 

to target gag. As a result, while the 

proposed action would be expected to 

substantially affect the NOR derived 

from gag trips, overall, gag trips do not 

comprise a substantial portion of total 

for-hire trips nor would they, by 

extension, be expected to account for a 

substantial portion of total for-hire NOR. 

No additional economic effects would 

be expected to result from the revised 

SWG quota because the updated SWG 

quota simply reflects the proposed 

reduction in the commercial gag quota, 

the effects of which have already been 

discussed. 

Three alternatives, including the 

status quo, were considered for the 

action to reduce the commercial quota 

for gag from 1.49 million lb (0.68 

million kg) to 100,000 lb (45,359 kg) in 

2011. The first alternative, the status 

quo, would have maintained the 

commercial quota for gag at 1.49 million 

lb (0.68 million kg) in 2011. This 

alternative is not consistent with the 

goals and objectives of the Council’s 

plan to manage gag to achieve the 

mandates of the Magnuson-Stevens Act. 

Specifically, selection of this alternative 

would be inconsistent with current 

National Standard 1 guidance because 

this quota would be above the ABC 

recommended by the Council’s SSC of 

1.17 million lb (0.53 million kg) for 

2011. In addition, this alternative would 

promote overfishing and slow recovery 

of the stock. 

The second alternative would have set 

the commercial quota for gag at 390,000 

lb (0.18 million kg), with one option to 

release the entire quota on January 1, 

2011 and a second option to release 50 

percent of the quota on January 1, 2001 

and the remaining 50 percent on July 1, 

2011. This quota is based on projected 

FOY yield streams, 1.01 million lb (0.46 

million kg) for 2011, and is consistent 

with the methods used by the Council 

in Amendment 30B for setting the 

annual catch target. This harvest level 

corresponds with the Council’s initial 

request for an interim rule at its June 

2010 meeting. The commercial quota for 

gag under this alternative is less than 

what the quota would be if based on the 

SSC’s ABC recommendation (FRebuild

yield stream) of 1.17 million lb (0.53 

million kg). Based on the SSC’s 

recommendation, selecting this 

alternative would have a less than 50 

percent chance of overfishing by the 

commercial sector and would provide a 

greater than 50 percent chance of 

rebuilding the stock if this yield stream 

is adhered to in future actions. 

However, recent discrepancies with the 

estimation of dead discards could affect 

how the assessment projects the status 

of the stock. If these discrepancies show 

a more pessimistic condition of the 

stock when the assessment is rerun, 

then selecting this alternative could 

result in harvest levels inconsistent with 

rebuilding the stock within the time 

frames outlined in the MagnusonStevens Act. Should these discrepancies 

result in a more optimistic condition of 

the stock, then the commercial quota for 

gag could be increased in subsequent 

actions. 

The third alternative is the most 

conservative and would set the 

commercial quota for gag equal to zero. 

Under this alternative, any addition to 

the quota would be initiated through 

Amendment 32 or some other 

rulemaking vehicle. Closure of the 

commercial sector to gag would benefit 

the stock by ending overfishing as well 

as halt gag fishing during the primary 

gag spawning season. However, this 

alternative would not allow gag 

allocation holders to land gag that might 

be caught incidentally when fishing for 

other species. Instead, these fish would 

have to be released. Because the 

commercial sector generally operates in 

relatively deep waters, a large 

proportion of these fish would likely die 

from barotrauma and handling. Release 

mortality has been estimated to be 67 

percent on average for commercial 

discards. This high rate of discard 

mortality would contribute to overall 

mortality, thereby slowing recovery of 

the stock and thus is contrary to the 

Council’s objectives. 

Two alternatives, including the status 

quo, were considered for the action to 

suspend the ability of allocation holders 

to convert red grouper allocation into 

multi-use allocation valid toward the 

harvest of red grouper or gag. The first 

alternative, the status quo, would 

continue to allow 4 percent of the red 

grouper allocation to be converted into 

multi-use allocation. This alternative is 

expected to result in gag harvests that 

would exceed specified annual catch 

limits, promote overfishing, and 

therefore slow recovery of the stock, 

contrary to the Council’s objectives. 

Further, this alternative is also expected 

to result in greater adverse economic 

effects stemming from the corrective 

measures that would be implemented to 

address the over-harvesting of gag. 

The second alternative would allow a 

smaller percentage (1.6 percent) of red 

grouper allocation to be converted into 

multi-use allocation based on the buffer 

existing between the commercial annual 

catch limit (ACL) and quota for gag. 

This alternative is consistent with a gag 

commercial ACL of 1.76 million lb (0.8 

million kg) and a 1.49 million lb (0.68 

million kg) commercial quota for gag. 

Since the proposed commercial quota 

for gag is only 100,000 lb (45,359 kg), 

the percentage of red grouper allocation 

that could be converted to multi-use 

allocation is too high under this 

alternative as it is expected to result in 

gag harvests that would exceed 

specified ACLs, promote overfishing, 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
Federal Register / Vol. 75, No. 200 / Monday, October 18, 2010 / Proposed Rules 63791 

and therefore slow recovery of the stock, 

contrary to the Council’s objectives. 

Two alternatives, including the status 

quo, were considered for the action to 

set the recreational bag limit at zero. 

The first alternative, the status quo, 

would maintain the recreational catch 

target at 2.20 million lb (1 million kg) 

as defined in Amendment 30B and thus 

maintain the current recreational bag 

limit of 2 gag within the 4-fish aggregate 

grouper bag limit. Selection of this 

alternative would be inconsistent with 

current National Standard 1 guidance 

because this level of harvest would be 

above the ABC recommended by the 

Council’s SSC of 1.17 million lb (0.53 

million kg) for 2011. In addition, this 

alternative would promote overfishing 

and slow recovery of the stock. 

The second alternative would set the 

gag bag limit to zero on the date when 

620,000 lb (0.28 million kg) of gag is 

projected to be landed by the 

recreational sector in 2011. This harvest 

level is consistent with the fishing 

mortality rate associated with the OY 

used by the Council in Amendment 30B 

to set the recreational annual catch 

target. Under certain assumptions 

regarding the disposition of discards, 

this alternative is expected to result in 

a fishing season of 83 days. Given the 

closure of the shallow water grouper 

(SWG) recreational sector annually from 

February 1 to March 31, fishing would 

be allowed for the month of January and 

from April 1 to May 22. However, this 

fishing season is dependent on 

achieving the same percentage 

reduction in dead discards as obtained 

from the harvest. If these levels of 

reduction are not met, then harvesting 

this amount of fish could exceed the 

reductions needed for the stock to 

recover under the rebuilding plan being 

developed in Amendment 32 which, in 

turn, could require deeper cuts in future 

harvests than those projected by the 

current assessment update. 

Although by regulation, the actions in 

this proposed temporary rule do not 

need to end overfishing, they do need to 

reduce overfishing. This alternative 

could limit the types of long-term 

measures developed by the Council in 

Amendment 32 that could be applied to 

the 2011 fishing year since the 620,000 

lb (0.28 million kg) catch target would 

likely be achieved before rulemaking 

from Amendment 32 is implemented. 

Therefore, the harvest for the rest of the 

fishing year could be zero and any longterm measures developed in 

Amendment 32 would not apply until 

2012. 

Further, recent discrepancies with the 

estimation of dead discards could affect 

how the assessment projects the status 

of the stock. If these discrepancies show 

a more pessimistic condition of the 

stock when the assessment is rerun, 

then selecting this alternative could 

result in harvest levels inconsistent with 

rebuilding the stock within the time 

frames outlined in the MagnusonStevens Act. This is particularly 

important for the recreational sector 

which harvests a greater proportion of 

the gag total catch than the commercial 

sector. Conversely, should these 

discrepancies result in a more 

optimistic condition of the stock, the 

recreational catch target and bag limit 

could be increased in subsequent 

actions. 

This proposed temporary rule does 

not establish any new reporting, recordkeeping, or other compliance 

requirements. 

List of Subjects in 50 CFR Part 622 

Fisheries, Fishing, Puerto Rico, 

Reporting and recordkeeping 

requirements, Virgin Islands. 

Dated: October 12, 2010. 

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. 

§ 622.20 [Amended] 

2. In § 622.20, paragraph (b)(2)(iv)(A) 

is suspended. 

3. In § 622.34, paragraph (v) is added 

to read as follows: 

§ 622.34 Gulf EEZ seasonal and/or area 

closures. 

* * * * * 

(v) Closure of the recreational sector 

for gag. The recreational sector for gag 

in the Gulf EEZ is closed. During the 

closure, all recreational harvest and 

possession of gag grouper in or from the 

Gulf EEZ is prohibited. Such fish caught 

in the Gulf EEZ must be released 

immediately with a minimum of harm. 

4. In § 622.39, paragraph (b)(1)(ii) is 

suspended, and paragraph (b)(1)(viii) is 

added, to read as follows: 

§ 622.39 Bag and possession limits. 

* * * * * 

(b) * * * 

(1) * * * 

(viii) Groupers, combined, excluding 

goliath grouper, Nassau grouper, and 

gag—4 per person per day, but not to 

exceed 1 speckled hind or 1 warsaw 

grouper per vessel per day, or 2 red 

grouper per person per day. However, 

no grouper may be retained by the 

captain or crew of a vessel operating as 

a charter vessel or headboat. The bag 

limit for such captain and crew is zero. 

* * * * * 

5. In § 622.42, paragraphs 

(a)(1)(iii)(A)(3) and (a)(1)(iii)(B)(3) are 

suspended, and paragraphs 

(a)(1)(iii)(A)(4) and (a)(1)(iii)(B)(4) are 

added, to read as follows: 

§ 622.42 Quotas. 

(a) * * * 

(1) * * * 

(iii) * * * 

(A) * * * 

(4) For fishing year 2011 and 

subsequent fishing years—4.83 million 

lb (2.19 million kg). 

(B) * * * 

(4) For fishing year 2011 and 

subsequent fishing years—100,000 lb 

(45,359 kg). 

* * * * * 

[FR Doc. 2010–26198 Filed 10–15–10; 8:45 am] 

BILLING CODE 3510–22–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 648 

[Docket No. 080513659–0476–01] 

RIN 0648–AW75 

Fisheries of the Northeastern United 

States; Atlantic Herring Fishery; 

Amendment 4 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Proposed rule; request for 

comments. 

SUMMARY: NMFS proposes regulations to 

implement measures in Amendment 4 

to the Atlantic Herring (Herring) Fishery 

Management Plan (FMP). Amendment 4 

was developed by the New England 

Fishery Management Council (Council) 

to bring the FMP into compliance with 

new Magnuson-Stevens Fishery 

Conservation and Management Act 

(Magnuson-Stevens Act) requirements 

by: Revising definitions and the 

specifications-setting process, consistent 

with annual catch limit (ACL) 

requirements; and establishing fishery 

closure thresholds, a haddock incidental 

catch cap, and overage paybacks as 


jlentini on DSKJ8SOYB1PROD with PROPOSALS