[Federal Register Volume 75, Number 240 (Wednesday, December 15, 2010)]
[Rules and Regulations]
[Pages 78344-78427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30527]



[[Page 78343]]

-----------------------------------------------------------------------

Part II





Department of Commerce





-----------------------------------------------------------------------



National Oceanic and Atmospheric Administration



-----------------------------------------------------------------------



15 CFR Part 902

50 CFR Part 660



Fisheries Off West Coast States; Pacific Coast Groundfish Fishery 
Management Plan; Amendments 20 and 21; Trawl Rationalization Program; 
Final Rule

Federal Register / Vol. 75 , No. 240 / Wednesday, December 15, 2010 / 
Rules and Regulations

[[Page 78344]]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

15 CFR Part 902

50 CFR Part 660

[Docket No. 100212086-0532-05]
RIN 0648-AY68


Fisheries Off West Coast States; Pacific Coast Groundfish Fishery 
Management Plan; Amendments 20 and 21; Trawl Rationalization Program

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: NMFS is implementing Amendments 20 and 21 to the Pacific Coast 
Groundfish Fishery Management Plan (FMP), which were partially approved 
by the Secretary on August 9, 2010. Amendment 20 establishes a trawl 
rationalization program for the Pacific Coast groundfish fishery. 
Amendment 20's trawl rationalization program consists of: An individual 
fishing quota (IFQ) program for the shorebased trawl fleet (including 
whiting and non-whiting sectors); and cooperative (coop) programs for 
the at-sea (whiting only) mothership and catcher/processor trawl 
fleets. Amendment 21 establishes fixed allocations for limited entry 
trawl participants. This final rule supplements the final rule 
published on October 1, 2010 (75 FR 60868), and provides additional 
program details, including: Program components applicable to IFQ gear 
switching, observer programs, retention requirements, equipment 
requirements, catch monitors, catch weighing requirements, coop 
permits, coop agreement requirements, first receiver site licenses, 
quota share (QS) accounts, vessel accounts, further tracking and 
monitoring components, and economic data collection requirements.

DATES: This rule is effective January 1, 2011.

ADDRESSES: Background information and documents, including the final 
environmental impacts statements for Amendment 20 and Amendment 21, are 
available at the Pacific Fishery Management Council's Web site at 
http://www.pcouncil.org/. NMFS prepared a Final Regulatory Flexibility 
Analysis (FRFA), which is summarized in the Classification section of 
this final rule. Copies of the FRFA and the Small Entity Compliance 
Guide are available from William W. Stelle, Jr., Regional 
Administrator, Northwest Region, NMFS, 7600 Sand Point Way, NE., 
Seattle, WA 98115-0070; or by phone at 206-526-6150. Copies of the 
Small Entity Compliance Guide are also available on the Northwest 
Regional Office Web site at http://www.nwr.noaa.gov/.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
final rule may be submitted to William W. Stelle, Jr., Regional 
Administrator, Northwest Region, NMFS, 7600 Sand Point Way, NE., 
Seattle, WA 98115-0070, and to OMB by e-mail to [email protected], or fax to 202-395-7285.

FOR FURTHER INFORMATION CONTACT: Jamie Goen, 206-526-4656; (fax) 206-
526-6736; [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Amendment 20 trawl rationalization program is a limited access 
privilege program under the Magnuson-Stevens Fishery Conservation and 
Management Act (MSA), as reauthorized in 2007. It consists of: (1) An 
IFQ program for the shorebased trawl fleet; and (2) coop programs for 
the mothership and catcher-processor trawl fleets. The trawl 
rationalization program is intended to increase net economic benefits, 
create individual economic stability, provide full utilization of the 
trawl sector allocation, consider environmental impacts, and achieve 
individual accountability of catch and bycatch. Amendment 21 
establishes fixed allocations for limited entry trawl participants. 
These allocations are intended to improve management under the 
rationalization program by streamlining its administration, providing 
stability to the fishery, and addressing halibut bycatch.
    The trawl rationalization program is scheduled to be implemented on 
January 1, 2011. Due to the complexity of the program and the tight 
timeline for implementation, NMFS has issued, or is in the process of 
issuing multiple rulemakings to implement this program. The following 
actions are related to the trawl rationalization program:
     A final rule (75 FR 4684, January 29, 2010) which 
announced that potential participants in the program should review and, 
if necessary, correct their data that will be used for the issuance of 
QS, permits, and endorsements. It also established which data NMFS 
would use and requested ownership information from potential 
participants.
     A notice of availability for Amendments 20 and 21 (75 FR 
26702, May 12, 2010).
     A proposed rule (75 FR 32994, June 10, 2010) followed by a 
final rule (75 FR 60868, October 1, 2010) that implemented Amendments 
20 and 21, focused on provisions deemed necessary to issue permits and 
endorsements in time for use in the 2011 fishery and to have the 2011 
harvest specifications reflect the new allocation scheme. In addition, 
the October 1st rule also restructured the entire Pacific Coast 
groundfish regulations at 50 CFR part 660 from one subpart (Subpart G) 
to five subparts (Subparts C-G).
     A correction to the June 10th proposed rule (75 FR 37744, 
June 30, 2010) which corrected two dates referenced in the preamble to 
the proposed rule regarding the decision date for the FMP amendments 
and the end date for the public comment period.
     The Secretary's review of and decision to partially 
approve Amendments 20 and 21 on August 9, 2010.
     A proposed rule (75 FR 53380, August 31, 2010) which 
proposed for implementation on January 1, 2011, additional program 
details, including: Measures applicable to gear switching for the IFQ 
program, observer programs, retention requirements, equipment 
requirements, catch monitors, catch weighing requirements, coop 
permits, coop agreement requirements, first receiver site licenses, QS 
accounts, vessel accounts, further tracking and monitoring components, 
and economic data collection requirements.
     A correction to the October 1st final rule (75 FR 67032, 
November 1, 2010) to make sure the correct trip limit tables for 2010 
remain effective after November 1, 2010.
    This final rule follows the August 31st proposed rule (75 FR 53380) 
and implements additional program components for the trawl 
rationalization program. The preambles to both the June 10th and August 
31st proposed rules provided more details on the program and are not 
fully repeated here. The preamble to the June 10th proposed rule (75 FR 
32994), called the ``initial issuance'' proposed rule because it 
proposed the requirements for initial issuance of new permits and 
endorsements for the trawl rationalization program, provided detailed 
information on the trawl rationalization program and a general overview 
on the provisions in Amendments 20 and 21. In addition, the

[[Page 78345]]

preamble to the August 31st proposed rule (75 FR 53380), called the 
``program components'' proposed rule because it proposed further 
program details for the trawl rationalization program, provided more 
detail on the additional program components being proposed.
    The Pacific Fishery Management Council (Council) began scoping on 
trailing actions for the trawl rationalization program in the Fall of 
2010 and intends to continue developing trailing actions at its 2011 
Council meetings on topics including, but not limited to: Cost 
recovery, safe harbors/community fishing associations, the severability 
of MS/CV endorsements from limited entry trawl permits, and 
resubmission of Amendment 21 in response to NMFS' partial disapproval.

Comments and Responses

    NMFS solicited public comment on the proposed rule (75 FR 53380, 
August 31, 2010). The comment period ended September 30, 2010. NMFS 
received 15 individual letters of comments on the proposed rule 
submitted by individuals or organizations.
    Some commenters have incorporated by reference previous comments 
submitted during the Council process or on a rulemaking (notice of 
availability 75 FR 26702, May 12, 2010; proposed rule 75 FR 32994, June 
10, 2010; final rule 75 FR 60868, October 1, 2010) for the initial 
issuance of permits and endorsements and the review of Amendments 20 
and 21. Comments presented to the Council are part of the record and 
were considered by the Council during its deliberation. Comments on the 
previous rulemaking were addressed in the final rule for that 
rulemaking.

General Comments in Support and Opposed

    Comment 1. NMFS received multiple comments expressing general 
support for the proposed rule.
    Response. NMFS acknowledges these comments.
    Comment 2. NMFS received multiple comments expressing general 
disagreement with the proposed rule and amendments.
    Response. NMFS acknowledges these comments.

Comments on Implementation of the Program

    Comment 3. One commenter stated that the program and implementing 
regulations should not be effective until January 1, 2012, in order to 
provide sufficient time for the groundfish industry to plan their 
operations under the new regulatory system.
    Response. This program has been developed by the Council and NMFS 
through a public process for over six years, and ample opportunities 
have been provided for input into the design of the program. The 
starting date for the trawl rationalization program was discussed and 
debated on multiple occasions at Council meetings, and based on the 
input from the public, the Council recommended, and NMFS agreed, to a 
target implementation date of January, 2011. NMFS notes the commenter's 
recommendation, but has determined that implementing the program at the 
earliest practicable date best serves the public interest. NMFS 
disagrees that any delay is necessary.
    Comment 4. One commenter described port outreach efforts and a 
workshop undertaken by the organization designed to complement the 
outreach being conducted by NMFS. These outreach meetings and workshop 
are an effort to speed the transition process to the new trawl 
rationalization program and provide fishermen tools for success under 
the catch shares program. Port outreach meetings were held in seven 
ports, with topics covering ways to reduce observer and operating 
costs, managing quota portfolios, establishing a business plan, and 
managing constraining stocks among others. In addition, the two-day 
informational workshop was attended by over 150 fishery participants; 
panels included topics on regulatory requirements; managing risks 
associated with constraining species and modifying fishing behavior; 
approaches for maximizing opportunity; gear modification; handling 
techniques and behavior changes; mapping and ``hotspot'' management; 
trading, tracking, and financing of quota portfolios; strategies for 
minimizing observer and other costs; and strategies for improving 
revenues.
    Response. NMFS appreciates the commenter's outreach efforts. In 
addition to the outreach efforts by outside organizations, NMFS has 
held a series of public workshops along the West Coast during the 
months of September and October, 2010, to assist program participants 
in transitioning to the new trawl rationalization program. Further 
information on NMFS's outreach efforts is described in the response to 
Comment 5.

Comments on the Rulemaking and Trailing Amendments

    Comment 5. Some commenters stated that the complexity of the 
rulemakings for the trawl rationalization program have made it 
difficult to provide meaningful public input.
    Response. NMFS acknowledges that implementation of the trawl 
rationalization program, and associated rulemakings, has been complex. 
However, NMFS has been making every effort to make the implementation 
process as simple as possible and to explain the process in many public 
forums. While the Council developed the trawl rationalization program 
over several years, the Council and NMFS set an implementation date of 
January 1, 2011, giving NMFS and the Council approximately a year and a 
half to develop regulations and fine tune the program. This is a tight 
timeline for such a complex program which would dramatically change the 
operation and management of the trawl sector. Because of the tight 
timeline, NMFS had to split implementation into several rulemakings, 
focused on timing the rulemakings to allow potential participants the 
most time possible for the different phases of implementation given the 
resources available to implement the program. Early in the rulemaking 
process, NMFS brought forward this approach to the Council at their 
September 2009 meeting. In addition, NMFS published a brochure in 
December 2009 which was mailed out to the industry announcing the 
proposed January 1, 2011 implementation, the rulemaking schedule, and 
some additional details on the first rulemaking.
    The first rulemaking, which spanned late 2009 and early 2010, 
announced that potential participants should be reviewing and, if 
necessary, correcting their data before NMFS used the relevant data for 
initial issuance of permits and endorsements (proposed rule: 74 FR 
47545, September 16, 2009; final rule: 75 FR 4684, January 29, 2010). 
NMFS initially announced that corrections should be done by late-May 
2010 and before the initial issuance proposed rule published. NMFS 
later extended the deadline to July 1 in the initial issuance proposed 
rule (75 FR 32994, June 10, 2010) for both the Pacific Fisheries 
Information Network (PacFIN) dataset and for NMFS' Northwest Fisheries 
Science Center's Pacific whiting observer data from NORPAC (a database 
of North Pacific fisheries and Pacific whiting information) (this was 
later changed to August 1, 2010 for NORPAC data through a public notice 
dated June 22, 2010 (NMFS-SEA-10-08)). This first rulemaking also 
required completion of an ownership interest form. The results of these 
forms would be used, in part, to populate the ownership interest forms 
that would be part of the

[[Page 78346]]

application process. This rulemaking laid the groundwork for the 
application process that would take place in the fall of 2010.
    Soon after the final rule published for this first rulemaking, the 
Council began meetings of its Regulatory Deeming Workgroup (RDW), an 
advisory body to the Council. The RDW held several public meetings 
between February and June 2010 to review the regulations that NMFS was 
developing for the program, to work through implementation details, and 
to bring issues forward to the Council, as needed. NMFS updated the RDW 
at all of their meetings on the implementation process and the status 
of the various rulemakings. The RDW meetings generally preceded Council 
meetings. The Council then discussed the rulemakings, including the 
implementation process and schedule, at all of their meetings to date 
in 2010.
    In the spring of 2010, the NOA for both Amendments 20 and 21 was 
published, announcing an open public comment period on the amendments 
(75 FR 26702, May 12, 2010). Shortly thereafter, the second rulemaking 
was initiated that announced the FMP amendments and the initial 
issuance process for certain new permits and endorsements which 
required a more intensive application process, and thus more time for 
implementation. In addition, this rulemaking reorganized the existing 
groundfish regulations to accommodate the new trawl rationalization 
program. Staggered after this second rulemaking was the third 
rulemaking, the subject of this final rule, which announces additional 
program details for January 1, 2011, including: IFQ gear switching, 
observer programs, retention requirements, equipment requirements, 
catch monitors, catch weighing requirements, coop permits, coop 
agreement requirements, first receiver site licenses, quota share (QS) 
accounts, vessel accounts, further tracking and monitoring components, 
and economic data collection requirements. All of these rulemakings 
have described NMFS' overall approach to the rulemakings and 
implementation.
    To provide support and guidance for the public during this process, 
NMFS has provided outreach along the West Coast in September and 
October 2010. These outreach efforts were used to announce the program 
details and implementation logistics, including the rulemakings and 
public comment periods. In addition, NMFS Office of Law Enforcement has 
provided several additional outreach sessions in October 2010 on 
compliance under the program. NMFS has also created a Web site on the 
trawl rationalization program to keep the interested public up to date 
and published and mailed several fact sheets, each focused on different 
aspects of the program. These fact sheets are also available on the Web 
site. Finally, NMFS has mailed and e-mailed several public notices to 
the industry and interested public regarding the trawl rationalization 
program. So while NMFS acknowledges that this has been a complex 
rulemaking, NMFS believes that the agency has made every effort to keep 
the industry and public informed of our approach and aware of the 
rulemaking process.
    Comment 6. One commenter requested that the Pacific whiting season 
start dates for the shorebased IFQ fishery, the mothership fishery, and 
the catcher-processor fishery be revisited under a trailing amendment. 
The commenter explained that separate season start dates between the 
sectors is no longer needed under a rationalized fishery; staggered 
start dates contradict the intent of the program, undermining the goals 
of the program to increase net economic benefits and create individual 
economic stability.
    Response. Start dates for the Pacific whiting season are not part 
of the program components rule. The Council discussed the Pacific 
whiting season start dates at its April and June 2010 meetings, and 
decided not to modify the season start dates at that time. The Council 
will continue to review management measures in the groundfish trawl 
fisheries after implementation of the rationalization program, and 
recommend changes where deemed appropriate. NMFS welcomes and 
encourages public participation in the Council decision-making process 
to address issues such as this.
    Comment 7. One commenter stated that implementing cost recovery 
through a trailing amendment does not allow the public or policy makers 
to know the full economic ramifications of the program. The commenter 
suggested delaying the program until a cost recovery program has been 
developed.
    Response. Although a recommendation was made by the Council, and 
NMFS agreed, that the cost recovery program would be implemented 
through the Council process as a trailing amendment to the program, 
that does not mean that the ``costs'' associated with cost recovery 
cannot be estimated. Under the MSA, as amended, cost recovery 
associated with program implementation is capped, or restricted to 3 
percent of the value of the fishery. This anticipated cost recovery has 
been considered by NMFS in its record of decision. NMFS encourages 
public participation as the Council develops and recommends the cost 
recovery program to be implemented by NMFS, based on those 
recommendations.
    Comment 8. Some commenters stated that community fishing 
associations (CFAs) should be implemented at the start of the program 
rather than as a trailing amendment. One commenter suggests delaying 
the program until CFAs have been developed.
    Response. NMFS acknowledges that there are members of the public 
who feel that CFAs should be implemented at the start of the program. 
Although the Council considered incorporating provisions for CFAs into 
the alternatives early in the development process, no strong 
recommendation or advocacy was voiced by members of the public or 
representatives on the Trawl Individual Quota Committee, which was 
intended to represent a cross section of interests for the development 
of recommendations on structuring the trawl rationalization program. 
Proposals for including provisions for CFAs in the program emerged 
later on, when the Council was at the point of adopting a preferred 
alternative in November 2008, in part tied to the issue of how to deal 
with QS holding in excess of accumulation limits. Further refinement of 
the preferred alternative, which occurred at Council meetings in 2009, 
included additional consideration of CFA provisions. Specifically, at 
the April 2009 Council meeting, Agenda Item F.4 addressed CFAs, and it 
was at this time that the Council concluded that it would be more 
appropriate for CFA provisions to be implemented through a trailing 
action. However, the moratorium on the transfer of QS during the first 
two years of the program, combined with provisions to allow divestiture 
of QS over accumulation limits during years 3 and 4 of the program, 
were designed to facilitate the transfer of QS to CFAs. The moratorium 
is in part intended to slow the movement of QS holdings out of 
communities during a time when the trailing action for CFAs can be 
developed and implemented in a considered fashion. Recommendations for 
how to structure the CFA provisions in a trailing action are welcome 
and should be brought forward as that proposal is developed. The 
Council is likely to begin developing CFA provisions in 2011 so that 
they could be in place before the QS divestiture period begins.
    Comment 9. One commenter stated that the adaptive management 
program (AMP) should be promptly implemented as a trailing amendment to 
address unforeseen impacts, promote

[[Page 78347]]

bycatch reduction, and promote sustainable fishing practices.
    Response. The AMP was established through the October 1st initial 
issuance final rule (75 FR 60868), and consists of two primary phases. 
For the first two years of the program, the 10 percent AMP share is 
allocated to nonwhiting QS owners to ease the transition to an IFQ 
system. The Council and NMFS will be evaluating the changes that will 
occur after implementation, and will then be able to react as necessary 
in the second phase to address specific objectives for the AMP, 
identified on page 402 of Appendix A of the FEIS ``Rationalization of 
the Pacific Coast Groundfish Limited Entry Trawl Fishery.'' This 
interim situation will also allow for some identification of unforeseen 
impacts associated with this program, which will better inform both the 
Council and NMFS in addressing the issues.

Comments on Policies and Legal Standards

    Comment 10. One commenter incorporated by reference comments they 
had previously made on the initial issuance proposed rule and 
Amendments 20 and 21 on National Standards 1, 2, 4, 6, and 8.
    Response. NMFS's responses to comments 56-68 in the final rule to 
initiate implementation of Amendments 20 and 21 (75 FR 60868, 60884-
60887) describe how Amendments 20 and 21, as well as that final rule, 
comply with National Standards 1, 2, 4, and 8. The explanations 
articulated there equally apply to the instant rule. With regard to 
National Standard 6, the commenter does not provide an explanation of 
why either of the rules or the underlying amendments would be 
inconsistent with National Standard 6. Nevertheless, this response will 
address consistency with National Standard 6.
    National Standard 6 states that conservation and management 
measures must: ``take into account and allow for variations among, and 
contingencies in, fisheries, fishery resources, and catches.'' 16 
U.S.C. 1851(a)(6). The National Standard Guidelines further state that 
every effort should be made to develop FMPs that discuss and take into 
account vicissitudes and that, to the extent practicable, FMPs should 
provide a suitable buffer in favor of conservation. 50 CFR 
600.335(c)(2).
    Amendments 20 and 21 are expected to give fishermen greater 
flexibility in determining when and how to fish, thus giving fishermen 
greater ability to respond individually to unanticipated occurrences. 
The AMP will provide additional management flexibility and will 
facilitate response to unanticipated circumstances. Thus, these 
amendments and the program components implemented through this rule are 
consistent with National Standard 6.
    Comment 11. One commenter stated that the program is inconsistent 
with National Standards 5 and 8 of the MSA.
    Response. As described in NMFS's response to comment 62 in the 
final rule to initiate implementation of Amendments 20 and 21 (75 FR 
60868, 60885), Amendments 20 and 21 were designed to achieve multiple 
objectives and are consistent with National Standard 5. NMFS has 
determined that this rule to implement certain components of those 
amendments is consistent with National Standard 5 for the reasons 
stated in that previous preamble. NMFS's responses to comments 64-67 in 
the final rule to initiate implementation of Amendments 20 and 21 (75 
FR 60868, 60886) explain how Amendments 20 and 21 are consistent with 
National Standard 8. NMFS has determined that this rule to implement 
certain components of those amendments is consistent with National 
Standard 8 for the reasons stated in that previous preamble. See also 
responses to comments in the FEIS for Amendment 20, particularly 
responses to comments 108 and 109.
    Comment 12. One commenter stated that the program should be revised 
to fully retain public control over our public fisheries resources and 
indicated that the statements in the regulations and Amendments that 
NMFS retains the right to modify, revoke, or suspend altogether the 
catch share system are not enough.
    Response. Congress, NMFS, and the Council have been clear and 
explicit that in a limited access privilege program, what is being 
granted is a privilege that is modifiable and revocable at any time 
without compensation to the privilege holder (see Section A-2.3.4 of 
the EIS). NMFS's responses to comments in the FEIS for Amendment 20, 
particularly responses to comments 86 and 87, provide further 
discussion on this issue and are not repeated here. In addition, the 
regulations at Sec. Sec.  660.25 and 660.100 clearly state that any 
permits, endorsements, or amounts of harvest from the trawl 
rationalization program are a privilege that may be revoked, limited, 
or modified at any time.

Comments on Program Costs, Community Impacts, and the Burden on Small 
Businesses

    Comment 13. Some commenters stated NMFS should minimize and 
mitigate impacts on small businesses and small communities; the program 
should not benefit large businesses at the expense of small businesses. 
One commenter stated that the burden of paperwork and costs of the 
program would be too much for small businesses and small communities 
and requested that the paperwork burden be streamlined.
    Response. NMFS responded to similar comments in the October 1st 
final rule (75 FR 60868) about the impacts on small businesses. In 
particular, concerns were raised about negative impacts on deckhands 
and smaller boats; that program costs to fishermen, including the costs 
of entering the fishery and the costs of observers and monitoring are 
too high; that observer rules need to change for trawl and small boats 
to reflect the vastly different bycatch which occurs when mistakes are 
made; about the impact of the allocation formulas on Fort Bragg 
fishermen; concern that average fishermen will not be able to afford to 
participate and that this could lead to increased consolidation and 
leave many ports no longer viable; about negative impacts on 
processors, that small processors will be driven out of business due to 
consolidation; and that it will eliminate the ``mom and pop 
businesses.''
    NMFS has responded to these comments in detail in the October 1st 
initial issuance final rule (75 FR 60868). That response is applicable 
to the comments associated with this rule. In terms of impacts on small 
businesses, the trawl rationalization program is intended to increase 
net economic benefits, create economic stability, provide full 
utilization of the trawl sector allocation, consider environmental 
impacts, and promote conservation through individual accountability for 
catch and bycatch. The allocations of quota under the new program do 
not differ significantly from status quo allocations made biennially in 
terms of total allocations. However, instead of fleetwide quotas, there 
will now be individual allocations of quota shares and quota pounds to 
permit owners. Allocations of overfished species constrain all 
groundfish fishermen, for both large and small operations. In some 
cases, smaller operators may be constrained to a greater extent. This 
was recognized in development of the program, and operators are 
encouraged to work together cooperatively, through mechanisms like 
combining and sharing quota amounts. The program provides for leasing 
of additional quota as needed to facilitate operations. The program 
includes provisions that would have a beneficial impact on small 
entities. It

[[Page 78348]]

would create a management program under which most recent participants 
in the Pacific Coast groundfish limited entry trawl fishery (many of 
which are small entities) would be eligible to continue participating 
in the fishery and under which the fishery itself would experience an 
increase in economic profitability. Small entities choosing to exit the 
fishery should receive financial compensation from selling their permit 
or share of the resource. To prevent a particular individual, 
corporation, or other entity from acquiring an excessive share of the 
total harvest privileges in the program, accumulation limits would 
restrict the amount of harvest privileges that can be held, acquired, 
or used by individuals and vessels. In addition, for the shoreside 
sector of the fishery, an AMP was created to mitigate any adverse 
impacts, including impacts on small entities and communities that might 
result from the program.
    It is expected that the shorebased IFQ fishery will lead to 
consolidation and this may affect small processors, particularly if 
they are in disadvantaged ports. Chapter 4 of the Amendment 20 FEIS 
analyzed the effects on processors from various perspectives: The 
distribution of landings across west coast ports may change as a result 
of fleet consolidation, industry agglomeration, and the comparative 
advantage of ports (a function of bycatch rates in the waters 
constituting the operational area for the port, differences in 
infrastructure, and other factors). In particular, the Council analysis 
indicated that processors associated with disadvantaged communities may 
see trawl groundfish volumes decline. The analysis highlights that 
those processors receiving landings from Central California or Neah Bay 
may see a reduction in trawl caught groundfish if the market is able to 
redirect activity toward more efficient and advantaged ports. However, 
in addition to increased landings that are expected to result from the 
IFQ program, small processors and disadvantaged communities may benefit 
from the control limits, vessel limits, and adaptive management 
policies. Control limits will limit the ability of large processors to 
obtain shares of the fisheries while the AMP processes will allow the 
Council to consider the impacts on small processors and disadvantaged 
communities when allocating the AMP quota (10 percent of the total non-
whiting trawl quotas). Although vessel accumulation limits tend to 
lower economic efficiency and restrict profitability for the average 
vessel, they could help retain vessels in communities because more 
vessels would remain.
    Another process by which small processors and disadvantaged 
communities may benefit will be the future development of CFAs. Some of 
the potential benefits of CFAs include: Ensuring access to the fishery 
resource in a particular area or community to benefit the local fishing 
economy; enabling the formation of risk pools and sharing monitoring 
and other costs; ensuring that fish delivered to a local area will 
benefit local processors and businesses; providing a local source of 
QSs for new entrants and others wanting to increase their participation 
in the fishery; increasing local accountability and responsibility for 
the resource; and benefiting other providers and users of local fishery 
infrastructure.
    In summary, the major impacts of this rule appear to be on 
shoreside processors which are a mix of large and small processors, and 
on shorebased trawlers which are also a mix of large and small 
companies. The non-whiting shorebased trawlers are currently operating 
at a loss or at best are ``breaking even.'' The new rationalization 
program would lead to profitability, but with a reduction of about 50 
percent of the fleet. This program would lead to major changes in the 
fishery. To help mitigate against these changes, as discussed above, 
the agency has announced its intent, subject to available Federal 
funding, that participants would initially be responsible for 10 
percent of the cost of hiring observers and catch monitors. The 
industry proportion of the costs of hiring observers and catch monitors 
would be increased every year so that by 2014, once the fishery has 
transitioned to the rationalization program, the industry would be 
responsible for 100 percent of the cost of hiring the observers and 
catch monitors. NMFS believes that an incrementally reduced subsidy to 
industry funding would enhance the observer and catch monitor program's 
stability, ensure 100 percent observer and catch monitor coverage, and 
facilitate the industries' successful transition to the new quota 
system. In addition, to help mitigate against negative impacts of this 
program, the Council has adopted an AMP where starting in year 3 of the 
program, 10 percent of non-whiting QS would be set aside every year to 
address community impacts and industry transition needs. After 
reviewing the initial effects of IFQ programs in other parts of the 
world, the Council had placed a short term QS trading prohibition so 
that fishermen can learn from their experiences and not make premature 
sales of their QS. The Council is also envisioning future regulatory 
processes that would allow community fisheries associations to be 
established to help aid communities and fishermen.
    NMFS has taken a hard look at the reporting burdens of the program 
and, given the program requirements, reduced the burden on small 
businesses to the extent possible. For instance, in the IFQ fishery, 
transactions for QS accounts and vessel accounts will be done online, 
reducing the paperwork burden. The QS permit renewal process will be 
the same as the current limited entry permit renewal process and during 
the same time period because initially most QS permit owners would 
already be familiar with the limited entry permit renewal process. 
Similarly, in the mothership sector, the MS/CV-endorsed permit renewal 
will be combined with their declaration of intent to obligate to a 
mothership processor so that both are done on the same form at the same 
time. To the extent possible, NMFS will send out permit renewal forms 
and other associated forms, such as the ownership interest form, pre-
filled to reduce the burden on respondents. For the EDC, the survey 
design has sought to avoid duplication of data collection, and was 
developed from meetings with industry participants to discuss making 
survey questions easily understandable and consistent with the record 
keeping practices of survey respondents to reduce the burden on 
respondents. For the trawl monitoring requirements, NMFS has reduced 
the burden of the catch monitoring plans for first receivers by only 
requiring essential information needed to assure adequate catch 
accounting. To reduce the burden of requiring electronic fish tickets, 
fish ticket software will be provided at no cost, and will use a 
standard operating system and common software already owned by most 
businesses; fish ticket software will be compatible with the existing 
fish ticket requirements in each of the three states; and the software 
can be used to print a paper copy for submission to the state, when 
state law allows. To reduce costs, NMFS has determined that a person 
certified as both an observer and a catch monitor can serve in both 
capacities, within limitations on hours worked. After consideration of 
all these efforts and the requirements of the program, NMFS has 
determined that the remaining reporting requirements are necessary.
    Comment 14. One commenter expressed concerns that the inequitable 
distribution of overfished species QS, such as Canary Rockfish, 
disproportionately impacts California,

[[Page 78349]]

while favoring Washington and Oregon; that the program should not 
result in an unfair allocation between the states; and that the program 
should be designed to result in an even consolidation between states 
and between the sectors (non-whiting shorebased IFQ, whiting shorebased 
IFQ, mothership sector, and catcher/processor sector).
    Response. With respect to the effects on the States including 
industry consolidation effects, NMFS acknowledges that this program may 
have different impacts on different states and on different 
communities. As mentioned above, one of the potential purposes of the 
AMP is to address differential impacts upon communities and thus the 
states. National Standard 4 requires that when it becomes necessary to 
allocate or assign fishing privileges among various United States 
fishermen, such allocation shall be (A) Fair and equitable to all such 
fishermen; (B) reasonably calculated to promote conservation; and (C) 
carried out in such a manner that no particular individual, 
corporation, or other entity acquires an excessive share of such 
privileges. The National Standard 4 guidelines at Sec.  
600.325(c)(3)(i)(B) state that: ``An allocation of fishing privileges 
may impose a hardship on one group if it is outweighed by the total 
benefits received by another group or groups. An allocation need not 
preserve the status quo in the fishery to qualify as fair and 
equitable, if a restructuring of fishing privileges would maximize 
overall benefits. The Council should make an initial estimate of the 
relative benefits and hardships imposed by the allocation, and compare 
its consequences with those of alternative allocation schemes, 
including the status quo.''
    Thus, the Councils are given wide latitude to determine what is 
equitable within a particular fishery and to create the appropriate 
management measures to accomplish the goals of an FMP. The issue of 
allocation of overfished species was addressed extensively in the 
response to comments in the October 1st final rule. (75 FR 60868, 
comments 29 and 31.) Generally speaking, the Council evaluated the 
impacts of its allocation decisions and adequately determined that, 
after weighing the costs and benefits of its proposed scheme, the 
allocations selected were to the overall benefit of the fishery and its 
participants.
    Comment 15. One commenter stated that NMFS has not adopted criteria 
for participation in CFAs as required by law and improperly excluded 
CFAs from initial allocations. The commenter further stated that the 10 
percent set aside for the AMP would not be enough to meet the needs of 
CFAs, smaller vessels idled by the program, processors, or new 
entrants. Another commenter stated that the 10 percent set aside for 
the AMP should be used to mitigate transition impacts and be used as an 
incentive pool for conservation results and to improve the program.
    Response. NMFS responded to a similar comment in the October 31st 
final rule (75 FR 60868, comment 41) which is incorporated here by 
reference. NMFS disagrees that communities have been excluded from 
initial allocations. Communities have not been precluded from acquiring 
groundfish limited entry trawl permits, which would make them eligible 
for the initial allocation of QS associated with a permit. 
Additionally, the Council's preferred alternative includes a very broad 
definition of who may own quota shares, so communities are not 
precluded from acquiring quota once the program is implemented. Just as 
non-trawl fishermen currently need to obtain a trawl-endorsed limited 
entry permit to participate in the trawl fishery, under the trawl catch 
shares program, a trawl permit and quota pounds is all that is needed 
to participate.
    NMFS also disagrees with the statement that the Council and NMFS 
did not follow the law with regard to CFAs. NMFS created the trawl 
rationalization program, including allocation to an AMP, consistent 
with the MSA and with communities in mind. The trawl catch shares 
program includes several ways to participate beyond the initial 
issuance of quota share. The AMP specifically reserves 10 percent of 
the non-whiting shoreside quota share to allocate in such a manner as 
to promote a wide range of important objectives, beginning with year 3 
of the program. The objectives for this program are: Community 
stability, processor stability, conservation, unintended/unforeseen 
consequences of IFQ management, and facilitation of new entrants. NMFS 
agrees with the commenter's statement that the 10 percent set aside for 
the AMP should be used to mitigate transition impacts. During the first 
2 years of the program, the AMP will help mitigate transition impacts 
by distributing the resulting to QP to trawlers with non-whiting QS to 
help them as they adjust to the new program, begin to work together and 
pool their resources, and adjust to new costs. In ongoing years, the 
AMP will help mitigate impacts of the program and promote conservation 
following the objectives for the AMP stated above.
    In addition to the AMP, the Council is also developing provisions 
for community involvement through CFAs as a trailing amendment. The 
trawl catch shares program includes a moratorium on the transfer of 
quota share during the first two years of the program (quota pounds 
will be able to be transferred during the moratorium), combined with 
provisions to require divestiture of quota share over accumulation 
limits during years 3 and 4 of the program. The moratorium is in part 
intended to slow the movement of quota share holdings out of 
communities during a time when the trailing action for community 
fishing associations can be developed and implemented in a considered 
fashion. Recommendations for how to structure the CFA provisions in a 
trailing action are welcome and should be brought forward as that 
proposal is developed by the Council. Moreover, the Council 
specifically acknowledged flexibility to adapt to changing 
circumstances, including provisions for a comprehensive review of the 
program that includes a community advisory committee, to evaluate 
effectiveness in relation to the original program goals and objectives, 
scheduled for year five of the program. The trawl rationalization 
program has addressed and continues to address directly these issues 
and ways to improve the program.
    Comment 16. One commenter stated that the rapid increase in value 
of QS and QP will make it hard for communities and CFAs to participate 
in the program. The commenter further stated that NMFS' new measure to 
allow limited entry trawl permit transfers during a window of time 
before the permit and endorsement application period will foster quick 
inflation of QS value.
    Response. NMFS appreciates the commenter's insight into the value 
of QS based on NMFS providing a window of opportunity for limited entry 
permit transfers before the permit and endorsement application period. 
NMFS' intent in providing this window in the October 31st initial 
issuance final rule (75 FR 60868) was solely to provide some additional 
flexibility for potential participants in the program in making their 
business decisions before being locked into their business arrangement 
for the next 2 years. As stated in the preamble to the final initial 
issuance rule, NMFS believes this change is consistent with the 
Council's intent to provide an opportunity for entry level participants 
to obtain a qualifying trawl limited entry permit prior to initial 
issuance with reasonable certainty of anticipated QS that would be 
issued on the basis of that permit. Further, for

[[Page 78350]]

permit owners that have qualifying history that would exceed control 
limits, this change will provide an opportunity to divest permits prior 
to calculation of QS and any redistribution of QS.

Comments on the Observer and Catch Monitor Programs

    Comment 17. Some commenters stated that alternatives should be 
explored to reduce the industry and taxpayer costs of the program, such 
as not requiring the industry to pay for observer (i.e., the government 
should pay as part of its enforcement mandate), requiring less than 100 
percent observer coverage, allowing the use of cameras, or measures to 
reduce observer costs below $350-500 per day. Another commenter agreed 
with NMFS that an observer can also be a catch monitor to reduce costs 
but also to gain data tracking efficiencies. A third commenter stated 
support for 100 percent observer coverage and rigorous observer and 
catch monitor training requirements.
    Response. Less than 100 percent observer coverage and the use of 
cameras to supplement or substitute for observer coverage were 
considered by the Council during the program's development, but were 
rejected. Full and independent accountability of all catch is key to 
the success of the catch shares program especially programs using 
individual fishing quotas. NMFS has recognized the increased costs to 
the industry and is therefore planning to subsidize the cost of 
observer coverage for at least the first year, subject to 
appropriations (see response to Comment 22). The defraying of cost via 
this subsidy will give the fleet time to develop cost cutting measures 
with other industry members in their port and with the observer 
provider companies. NMFS recognizes the importance of reigning in costs 
to the industry and the public and will continue to investigate and 
implement efficiencies when practical. One such efficiency is that a 
person can be trained and certified as both an observer and as a catch 
monitor. That person could act in both capacities even for the same 
vessel's offload, subject to maximum work hour requirements and other 
limitations, which may provide some cost savings.
    Comment 18. The Pacific Fishery Management Council commented in 
agreement with the conflict of interest regulations as proposed by NMFS 
under Alternative 2 for the observer and catch monitor regulations. 
Another commenter supported rigorous conflict of interest provisions.
    Response. In the August 31st proposed rule (75 FR 53380), NMFS 
provided two alternative sections addressing conflict of interest 
provisions applicable to observers and catch monitors; Alternative 1 
provided provisions as deemed by the Council, Alternative 2 presented 
the NMFS-proposed language. NMFS provided its rationale for the NMFS-
proposed alternative in the proposed rule, and explained that the NMFS-
proposed conflict of interest provisions are consistent with existing 
language in NMFS policy statement 04-109-01 and current standards in 
the West Coast Groundfish Observer Program. NMFS specifically requested 
comment on which provisions to include in the final rule and NMFS 
received no comments in disagreement with the NMFS-proposed alternative 
included in the final rule.
    Comment 19. One commenter stated that Morro Bay, California, will 
not have enough trawlers to support a catch monitor.
    Response. NMFS responded to a similar comment regarding costs of 
monitoring in the October 31st final rule (75 FR 60873, comment 22). As 
stated in the response to the prior comment: ``Analyses indicate that 
the program benefits will outweigh the program costs. The EIS 
anticipates that the value of the fishery will increase through a 
variety of mechanisms, including increased efficiency of existing 
vessels, the transfer of effort to the most efficient vessels, and 
increased retention of target species. The program includes 
opportunities for adaptive management if actual impacts differ from 
projected impacts. [* * *] To aid the fishing industry during the 
transition to a rationalized fishery, the agency has announced its 
intent, subject to available Federal funding, to cover a portion of the 
initial cost of hiring observers and catch monitors. As stated by the 
agency, participants would initially be responsible for 10 percent of 
the cost of hiring observers and catch monitors, with that amount 
increased every year so that by 2014, the industry would be responsible 
for 100 percent of the cost of hiring the observers and catch 
monitors.''
    Landings monitoring is an essential component to the 
rationalization program developed by the Council. Thus, industry 
members and catch monitor providers need to work together to resolve 
local implementation issues such as the development of cost-effective 
deployment of catch monitors in Morro Bay. One potential solution 
provided for in this final rule would be to contract with providers for 
the services of observers that are also certified as catch monitors. 
Such ``dual certified'' observers, which would already be on board the 
vessel participating in the Shorebased IFQ Program, could assume the 
catch monitor role for the IFQ first receiver. Coordination between the 
fishing vessel, the IFQ first receiver, and the observer/catch monitor 
provider will help alleviate concerns of program costs under 
circumstances such as those presented at Morro Bay. NMFS anticipates 
that further opportunities to reduce costs will develop with experience 
under the program. See also the response to Comment 20.
    Comment 20. California Department of Fish and Game (CDFG) commented 
that it supports an ongoing dialogue with NMFS and the states about the 
use of state employees as observers or catch monitors within the trawl 
rationalization program, provided that such dialogue includes a 
mechanism to reimburse the states for the use of state employees.
    Response. NMFS acknowledges the comment and plans to continue its 
dialogue with the states regarding the use of state employees as 
observers and/or catch monitors. Initial discussions conducted thus far 
indicate that the states are interested in providing some catch monitor 
services. If state employees serve as catch monitors, NMFS anticipates 
that reimbursement for costs associated with such services would be a 
component of legal contracts entered into between the states and the 
IFQ first receivers or vessels to which the states provide services. 
NMFS looks forward to continued discussions with the states to support 
coordination of the trawl rationalization program with state employees.
    Comment 21. Some commenters asked for clarification of the terms, 
``authorized officer,'' ``authorized person,'' and ``NMFS staff'' with 
regard to the catch monitor and observer regulations. One commenter 
stated that persons authorized access to first receiver facilities 
should include state-authorized employees, both law enforcement and 
non-law enforcement, and Pacific States Marine Fisheries Commission 
staff. Both of these types of personnel are involved in the monitoring 
and enforcement of the groundfish fishery. The commenter also noted 
inconsistent use of the terms ``authorized officer'' and ``authorized 
person'' in the regulations and recommended a consistent and 
encompassing use of the term ``authorized person.'' Another commenter 
asked that the term ``NMFS staff'' be defined and should be more

[[Page 78351]]

narrow than any employee of NMFS. The commenter suggested a definition.
    Response. NMFS appreciates the comments and how they highlight the 
variety of management and enforcement persons that are involved in the 
program. However, NMFS disagrees that further definitions are necessary 
at this time. NMFS believes that the current use of the terms is 
appropriate and serves to distinguish the different persons that must 
have access to, or accomplish other duties in connection to program 
management and enforcement. ``Authorized officer'' is a term already 
defined under the MSA in regulations found at 50 CFR part 600. The term 
is focused exclusively on enforcement officers, both state and Federal, 
and includes NOAA agents and officers, state officers acting under a 
JEA with NOAA and USCG boarding officers. This term is important for 
use involving inspection and enforcement activities. ``Authorized 
person'' is not defined but was included to identify persons other than 
enforcement officers and NMFS staff who are authorized to conduct 
duties related to the program. The term includes catch monitors as they 
are not NMFS staff, but are employees of contractors. These persons 
have authority to conduct duties pursuant to the program regulations. 
NMFS staff are those persons who have authority to conduct duties under 
the program regulations, as well. As for state employees, these persons 
have independent authority under state laws to enter the facility and 
do their jobs.
    Comment 22. One commenter asked if NMFS' offer to cover up to 90 
percent of the costs of the observer program during the first year of 
the program was for all sectors of the fishery, or only the Shorebased 
IFQ Program.
    Response. There is no assurance or guarantee that NMFS will provide 
funding, as the funding depends on Congressional appropriation. 
However, assuming that an appropriation is made and those funds are 
made available to the program and not otherwise restricted, NMFS NWR 
would apply these funds to help defray both the observer and catch 
monitor program costs. Further, NMFS would make the funds available to 
all three sectors (MS, C/P, and Shorebased) not just the Shorebased IFQ 
program.
    Comment 23. One commenter suggested that language on the catch 
monitor program stating that ``monitors have access to telephone lines 
during the times that Pacific whiting was being processed'' may be an 
artifact of previous regulations for catch monitors. The commenter 
suggested that NMFS re-examine whether this language should apply to 
more species than Pacific whiting.
    Response. NMFS agrees with the comment and, upon further review, 
has determined that this requirement is no longer necessary. The 
commenter was correct that catch monitors may need access to more 
species that just Pacific whiting for the Shorebased IFQ Program. In 
addition, any phone may be used, a cell phone or a telephone. However, 
the IFQ first receiver will not have to provide catch monitors with 
access to a phone while IFQ species are being processed. That is the 
responsibility of the catch monitor provider as stated at Sec.  
660.17(e)(8)(i)(A). NMFS is removing this language from the IFQ first 
receiver responsibilities at Sec.  660.140(i)(4). See the section on 
``Changes from the Proposed Rule.''

Comments on the Economic Data Collection (EDC) Program

    Comment 24. Some commenters stated that the economic data 
collection questionnaire was too detailed and burdensome for small 
businesses. One of those commenters suggested that if it is an annual 
questionnaire, it should be simplified to collect only crucial 
information. If the detailed questionnaire is continued, it should be 
collected periodically, not annually. Another commenter stated that the 
EDC program is too narrow and will not capture the effects of the trawl 
rationalization program on jobs, businesses, and communities.
    Response. In developing the trawl catch share program, NMFS is 
striking a balance. NMFS believes the importance and benefits of this 
program outweighs the burden on small businesses. The statute 
authorizing LAP programs such as this, Section 303A of the MSA, 
requires periodic reviews. In order to do that, NMFS must collect both 
baseline and annual information to judge the effectiveness of the 
program for the 5 year review. NMFS will continue to work through the 
Council process to make any necessary changes to the program to assure 
that that program does collect information needed by the Council meets 
the requirements of the MSA and the Council including providing 
assessments on the impacts of the program on jobs, businesses, and 
communities.
    NMFS' authority to collect economic information is limited to those 
vessels and processors harvesting and processing fish that are 
regulated under the MSA. Although NMFS could ask for economic 
information from persons or entities that are not directly regulated 
under a fishery program, it would be unable to require submission of 
the information. This is a critical difference and NMFS cannot 
establish a voluntary economic information program that would certainly 
be rejected by non-fishery industry persons and entities. NMFS could 
not ensure confidentiality of voluntarily submitted information and 
this problem would mean NMFS would never receive information or receive 
information that was incomplete or unreliable. An incomplete or 
unreliable database would be unusable.
    Regarding a commenter's concern over the EDC program not capturing 
the effects of the trawl rationalization program on lost jobs, closed 
businesses, and devastated communities, the Northwest Fisheries Science 
Center will conduct voluntary interviews through the Trawl 
Rationalization Program Human Dimensions Study to try and capture some 
of these other effects of the program.
    Comment 25. One commenter agreed with NMFS' definition of 
``processor'' for the EDC Program.
    Response. NMFS acknowledges this commenter's concurrence with the 
proposed definition for ``processor'' for the EDC program.
    Comment 26. One commenter expressed concerns about the EDC audit 
process, in particular the potential use of a third-party auditor to 
examine EDC submissions. The comment focused on the handling of 
``extremely sensitive commercial information''. The comment 
acknowledges that NMFS states that submitted information is 
confidential, but the comment suggests that there are no standards or 
rules in place to ensure confidentiality. Further, the comment 
questions whether NMFS can ask for tax information and require its 
submission to a third-party auditor and whether this practice may 
violate IRS rules.
    Response. While NMFS understands the concern about information 
confidentiality, this issue was highlighted in the proposed rule and 
NMFS explained that the EDC program will ensure information 
confidentiality. Information submitted to NMFS pursuant to the trawl 
program is considered confidential not only under the MSA, which 
specifically states that submitted information is confidential and not 
disclosable, but also there are at least two other Federal acts that 
NMFS uses to hold commercial and financial information confidential, 
namely the FOIA and Trade Secrets Act. NMFS has promulgated regulations 
that describe information confidentiality and processes to ensure its 
confidentiality at 50 CFR 600.405. Further, NMFS follows a detailed 
policy-based process, titled NAO 216-100, directing specifically

[[Page 78352]]

how NMFS employees and contractors ensure information confidentiality. 
NMFS personnel as well as any third-party contractor, such as an 
auditor, are required to retain information confidentiality. Should 
information be mishandled and inappropriately disclosed, both civil and 
criminal sanctions could be applied depending on the circumstances. To 
further ensure the confidentiality of information submitted to third-
parties such as auditors, NMFS wrote regulatory language at section 
660.114(e) describing the EDC audit procedures that indicates that any 
information required for verification of economic data, including that 
provided to a third-party auditor, is considered a required submission 
to NMFS. In other economic information collection programs, such as 
those found in the North Pacific crab and Bering sea trawl groundfish 
programs, NMFS has adopted the use of professional auditors to evaluate 
economic and financial information. Due to resource limitations, NMFS 
has no choice but to contract for these special services and cannot 
provide them ``in-house.'' Finally, NMFS--like private institutions--
can require submission of financial documents, including tax reporting 
forms, if necessary to ensure that its program receives reliable, 
verifiable information. If this was not the case, NMFS could not carry-
out Congress' intent that commercial and financial information be 
collected and evaluated for this limited access program's future 
evaluation and potential effectiveness.
    Comment 27. One commenter suggested revised wording for the 
economic data collection program regulations at Sec.  660.114 to 
require only one owner of a processor to submit the required data, if 
the processor is owned by more than one person. The commenter stated 
that not all owners may have access to the level of detail required on 
the forms and the additional burden of requiring all owners to submit 
the data is unnecessary.
    Response. NMFS agrees, but does not conclude that a change in the 
proposed rule text is necessary. NMFS is aware that some processors are 
owned by more than one person. However, a processor can be considered a 
single person or entity and thus would report its information on one 
form. Thus, NMFS requires only one EDC form from a processor provided 
that the form provides all relevant and complete information from the 
processor. All owners of a processor, however, are subject to the risk 
that with the filing of one form for the processor, that the form may 
not be timely filed or properly completed by whoever is identified as 
the responsible party for submitting it on behalf of the processor and 
thus, all the owners.
    Comment 28. One commenter suggested that the language in Sec.  
660.114, for the trawl fishery economic data collection program, should 
be revised to read ``holder'' of a first receiver site license rather 
than ``owner'' because the license is a privilege and conveys no 
ownership rights.
    Response. NMFS agrees with the commenter that first receiver site 
licenses are a privilege and not a right, but declines to change the 
term from ``owner'' to ``holder'' as the commenter suggests. The 
regulations at Sec.  660.100 clearly state that any privileges 
(including IFQ first receiver site licenses) in the trawl 
rationalization program may be revoked, limited, or modified at any 
time. In order to take delivery of groundfish caught in the Shorebased 
IFQ Program, an IFQ first receiver would need to have a first receiver 
site license. ``IFQ first receivers'' are defined in the October 31st 
final rule (75 FR 60868) at Sec.  660.111 as ``persons who first 
receive, purchase, or take custody, control, or possession of catch 
onshore directly from a vessel that harvested the catch while fishing 
under the Shorebased IFQ Program described at Sec.  660.140, subpart 
D.'' For the first receiver site license owner, the term ``license 
owner'' is defined at Sec.  660.11 as ``a person who is the owner of 
record with NMFS, SFD, Permits Office of a License issued under Sec.  
660.140, subpart D'' and is cross-referenced from the ``permit owner'' 
definition.

Comments on Ownership and Transfer

    Comment 29. One commenter asked if an estate completes probate 
court during the first two years of the program, can ownership of the 
limited entry trawl permit and QS permit be transferred from the estate 
administrator to a beneficiary.
    Response. The proposed rule states that ``[d]uring the first 2 
years after implementation of the program, QS or IBQ cannot be 
transferred to another QS permit owner, except under U.S. court order 
and as approved by NMFS.'' 50 CFR 660.140(d)(3)(ii)(B)(1). During the 
first two years of the program, QS and IBQ are non-transferable. 
However, NMFS recognizes that there may be some circumstances where a 
court may order or authorize the distribution of assets, including QS 
or IBQ. Such a circumstance may arise as a result of death or 
dissolution of a QS owner, such as in probate or in a bankruptcy 
action. NMFS drafted this regulatory provision to accommodate such 
circumstances. Such a transfer would still be subject to review by 
NMFS, however, to determine whether the transferee is eligible to own 
QS and whether the ownership interest of the transferee would be within 
the control limits; NMFS will not approve a transfer if the transferee 
is ineligible to own QS or if the ownership interest of the transferee 
would exceed control limits as a result of the transfer. NMFS 
recognizes that not all distributions of assets in probate or 
bankruptcy may be set forth in a court order. Accordingly, NMFS has 
clarified its intent by modifying the regulatory provision to state 
that ``[d]uring the first 2 years after implementation of the program, 
QS or IBQ cannot be transferred * * * except under U.S. court order or 
authorization and as approved by NMFS.''
    Comment 30. One commenter asked if two limited entry trawl permits 
are owned by the same entity, for example an estate administrator, can 
the resulting QS from the two limited entry trawl permits be separated 
into two QS permits if the court orders the permits to be divided 
between beneficiaries.
    Response. In the situation described by this commenter, where a 
court orders division of the permits, NMFS would transfer the QS and 
IBQ to the separate beneficiaries, subject to NMFS' approval of the 
transfer. For NMFS to approve such a transfer, NMFS would first 
determine whether each beneficiary is eligible to own QS; if a 
beneficiary is eligible and does not already own a QS permit, NMFS 
would issue a QS permit to the beneficiary. NMFS would also review the 
transfer to determine whether either beneficiary's ownership interest 
in QS or IBQ would exceed control limits as a result of the transfer. 
If a beneficiary is not eligible to own QS, or if the transfer of QS 
would cause the beneficiary's ownership of QS or IBQ to exceed control 
limits, NMFS would not approve the transfer. NMFS would respond in the 
same manner if the transfer is otherwise authorized by a court. See 
response to Comment 29.
    Comment 31. Several commenters commented on application of 
ownership limits on trusts.
    a. One commenter agreed with NMFS that the trustee should be 
considered the owner of a trust.
    Response. NMFS acknowledges this comment.
    b. Another commenter agreed that NMFS correctly identified the 
nature of trust ownership, but expressed concern that a trustor or 
beneficiaries could exert control over the trust. The commenter 
suggested that to prevent this, all parties to the trust (trustor, 
trustee, and beneficiaries) should be charged with

[[Page 78353]]

100 percent of the trust ownership for purposes of application of 
control limits. Another commenter similarly expressed concern that 
accumulation limits may be exceeded through ownership by a trust, and 
also suggested 100 percent ownership be applied to the trustor, 
trustee, and beneficiary for control test purposes.
    Response. NMFS acknowledges the comment that accumulation limits 
may be exceeded by other parties besides a trustee where QS or IBQ is 
owned by a trust, but distinguishes between the different accumulation 
limits that apply. ``Accumulation limits,'' as defined in the proposed 
rule, means ``the maximum extent of permissible ownership, control or 
use of a privilege within the trawl rationalization program[.]'' 75 FR 
53413 (emphasis added). As stated in the preamble to the proposed rule, 
NMFS interprets an ownership interest by a trust to vest ownership in 
the trustee; this interpretation applies specifically to permissible 
ownership. Ownership limits would apply to ownership of MS/CV-endorsed 
permits and catch history assignment, MS permits, and to QS and IBQ as 
a subset of applicable control limits. With regard to QS and IBQ and 
control limits Amendment 20 to the FMP states that ``[t]he term `own or 
control' was shortened to `control' for simplicity[;] `Control' 
includes ownership[.]'' (Appendix E, footnote y, at E-21, August 2010.) 
In the proposed rule, control limits applicable to the Shorebased IFQ 
Program are defined as ``the maximum amount that a person may own or 
control[.]'' 75 FR 53413 (emphasis added). NMFS' interpretation that 
ownership of QS or IBQ by a trust would vest ownership in the trustee 
(or trustees, if more than one) only applies to the maximum permissible 
ownership aspect of compliance with control limits.
    Ownership of QS or IBQ by a trust and control by any party other 
than the trustee--whether such party is the trustor, a beneficiary, or 
any other party--are two different things. While ownership is one way 
in which a party may exercise control, control is broader than 
ownership and a determination of control depends on further 
investigation beyond identification of the legal ownership of the QS or 
IBQ involved. A person may exceed control limits for QS or IBQ despite 
having no ownership of the QS or IBQ. Investigations regarding alleged 
violations of control limits will depend on the facts unique to each 
situation; NMFS will make a determination based on all relevant facts 
and circumstances revealed in an investigation. Ownership will be one 
fact considered, but not the only one. As stated in the preamble to the 
proposed rule, NMFS acknowledges that additional information, such as 
the trust document, may be needed to determine compliance with control 
limits. As the commenter points out, other facts may be needed as well. 
Accordingly, the proposed rule and this final rule includes provisions 
that NMFS may ask for additional information it believes to be 
necessary for a determination of compliance with control limits.
    NMFS disagrees with the commenters' suggestion that NMFS should 
attribute trust ownership to parties other than the trustee for control 
limit purposes. One of the commenters described scenarios where parties 
other than the trustee may possibly exert control, either directly or 
indirectly, over the trust, the trustee, or the QS or IBQ; however, the 
commenter has not provided sufficient facts to enable NMFS to determine 
whether control limits are exceeded under these scenarios. The 
commenters' suggested approach would presume control exists regardless 
of the facts and would attribute control to trustors and beneficiaries 
even where they have no actual control. NMFS acknowledges that one of 
the commenters expressed concern that an investigation of control would 
require ``valuable time of NMFS staff[,]'' but this applies for any 
enforcement investigation of control by parties other than legal 
owners, regardless of whether the ownership interest is a trust or any 
other form of ownership interest. Accordingly, NMFS declines to revise 
its interpretation of the attribution of ownership interest of a trust 
to the trustee.
    Comment 32. One commenter stated that the proposed Shorebased IFQ 
Program does not comply with MSA limitations on who can hold, acquire, 
or use limited access privileges, and that unrestricted ownership of 
quota shares will increase the cost of entry into the fishery and 
thwart the conservation benefits of the program.
    Response. Section 303A(c)(5)(E) of the MSA states that in 
developing a limited access privilege program to harvest fish a Council 
shall ``authorize limited access privileges to harvest fish to be held, 
acquired, used by, or issued under the system to persons who 
substantially participate in the fishery, including in a specific 
sector of such fishery, as specified by the Council.'' NOAA interprets 
that provision to mean that those who substantially participate in the 
fishery must be among those eligible to acquire QS, but are not the 
only entities or person who can receive QS. In other words, as long as 
those who substantially participate in the fishery are included as 
those eligible to receive QS, this provision of the statute is 
satisfied. The Council's eligibility criteria at Sec.  660.140(d)(2) 
would allow all entities that currently substantially participate in 
the shorebased IFQ fishery to hold, acquire, use or be issued QS.
    Comment 33. One commenter stated that the proposed Shorebased IFQ 
Program does not comply with the MSA because it allows QS to be 
acquired to perfect a security interest.
    Response. Section 303A(c)(1)(D) of the MSA, which addresses 
requirements for eligibility for limited access programs, does not 
prohibit the acquisition of QS to perfect a security interest. This 
section states that the same statutory eligibility criteria apply to 
all persons who acquire a privilege to harvest fish, including those 
who acquire a limited access privilege solely for the purpose of 
perfecting or realizing on a security interest in such privilege. The 
MSA would allow United States citizens, corporations, partnerships, 
other entities established under the laws of the United States or any 
State, or permanent resident aliens to acquire privileges to harvest 
fish, including acquiring a privilege for the purpose of perfecting or 
realizing on a security interest in such privilege, if they meet the 
eligibility and participation requirements established in the program. 
The MSA requires that a limited access privilege program prohibit other 
persons from acquiring a harvesting privilege. The eligibility and 
participation requirements for the Shorebased IFQ Program in Sec.  
660.140(d) are consistent with the MSA.
    Comment 34. One commenter asked for clarification in the final rule 
on whether NMFS addressed the Council's motion that does not require 
the size (or length) endorsement on a vessel to be reduced for limited 
entry trawl permits transferred to smaller vessels.
    Response. NMFS addressed this issue, consistent with the Council 
motion, in the October 1st final rule (75 FR 60868) at Sec.  
660.25(b)(3)(iii)(B)(1) which states, ``A limited entry permit may be 
registered for use with a vessel up to 5 ft (1.52 m) longer than, the 
same length as, or any length shorter than, the size endorsed on the 
existing permit without requiring a combination of permits or a change 
in the size endorsement.'' Previously, limited entry fixed gear and 
limited entry trawl permits had different size endorsements 
limitations. Trawl rationalization changed these requirements making 
the trawl size endorsement limitations mirror the limited entry fixed 
gear (i.e., the size endorsement of neither type of permit

[[Page 78354]]

has to be reduced if registered to a smaller vessel).

Comments on Initial Allocation of Catch Shares

    Comment 35. One commenter stated that the allocation formula for 
overfished species rewarded fishermen that caught overfished species 
while penalizing those that successfully avoided them.
    Response. NMFS responded to a similar comment in the October 31st 
final rule (75 FR 60868, comment 31) which stated, ``The Council 
considered and rejected the option of allocating overfished species for 
nonwhiting trips using the same method as for other nonwhiting IFQ 
species as not appropriate under the circumstances. In particular, the 
relative weighting approach, by which landings for a year are measured 
as a percent of all landings for the year and species, would have given 
a particularly high amount of credit for pounds caught during the 
rebuilding period. Additionally, QS would have been allocated to those 
who targeted some of the overfished species in the mid-1990s (before 
they were declared overfished) rather than to those who need such QS to 
access current target species. Accordingly, the Council rejected the 
approach of using the same allocation formula for overfished species as 
for nonwhiting target species based on the desire to not reward bycatch 
during the rebuilding period and in order to provide QS to those who 
would need it to cover incidental catch taken with their target species 
QS allocation. Regarding the comment that overfished species years 
selected were arbitrary, the Council's methodology for allocating 
overfished species is significantly different than the methodology for 
allocating target catch. The 1994-2003 period is still used to 
determine the target species allocation, and the harvest patterns from 
the 2003-2006 logbooks are used to determine the amount of overfished 
species an entity would need to take its target species. In this 
fashion, more recent information for the fishery is used without 
rewarding post control date increases in effort. The 1994-2003 harvest 
patterns were not used to determine a target species QS recipients need 
for overfished species QS. This is because of the substantial changes 
in fishing patterns which were induced by the determination that some 
species were overfished and the implementation of the RCAs and because 
the RCAs will remain in place after the trawl rationalization system is 
put into place. Therefore, the Council considered that an estimate of 
likely patterns of activity should be based on a period of time when 
the RCAs were in place. The RCAs were not in place for most of the 
1994-2003 period but were in place for 2003-2006, further supporting 
the conclusion to use this period for the allocation of overfished 
species.''
    Comment 36. Several commenters stated that the program should not 
result in an unfair allocation between the states, and should be 
designed to result in an even consolidation between states and between 
the sectors (non-whiting shorebased IFQ, whiting shorebased IFQ, 
mothership sector, and catcher/processor sector). One commenter stated 
that California fishermen have received an unfair allocation of 
overfished species compared to fishermen in Washington and Oregon, 
which was not discussed by the Council, analyzed under NEPA, or 
justified under the Magnuson-Stevens Act.
    Response. NMFS responded to a similar comment in the October 31st 
final rule (75 FR 60868, 60885, comment 61). As stated in the response 
to the prior comment: ``The trawl rationalization program was developed 
through the Council process, which facilitates substantial 
participation by state representatives. Generally, state proposals are 
brought forward when alternatives are crafted and integrated to the 
degree practicable. Decisions about catch allocation between different 
sectors or gear groups are also part of this participatory process, and 
emphasis is placed on equitable division while ensuring conservation 
goals. The Council determined that none of the alternatives considered, 
including the final plan, would discriminate against residents of 
different states. The rationalization program was structured to provide 
fair and equitable allocations of both target species and overfished 
species to participants.'' These concerns were expressly identified and 
addressed in the FEIS for Amendment 20, as well. See the FEIS 
``Rationalization of the Pacific Coast Groundfish Limited Entry Trawl 
Fishery'' in Chapter 6, Section 6.2 on pages 611. See also the response 
to Comment 14, supra.
    Comment 37. One commenter disagreed with NMFS' decision to move 
forward with formal allocations to the trawl fishermen, favoring the 
most impactful gear. The commenter is hopeful that the program can 
still be utilized to create conservation benefits and lessen bycatch 
and habitat impacts from destructive gears.
    Response. NMFS responded to a similar comment in the October 31st 
final rule (75 FR 60868, comment 81) which stated, in part, ``The 
action [from the October 31st final rule] largely limits the trawl 
allocation of many of the Amendment 21 species to percentages less than 
the historical trawl catch shares to the benefit of the non-trawl 
sectors. For instance, the proposed action limits the maximum trawl 
allocation of any Amendment 21species to 95 percent of the directed 
harvest when historical trawl catch shares for many of these species 
have been higher than 95 percent. Amendment 21 species' allocations 
that tend to favor non-trawl sectors (i.e., non-trawl sector 
allocations greater than observed in the 1995 to 2005 historical catch) 
include Pacific cod, Pacific ocean perch, chilipepper rockfish south of 
40[deg]10' N. lat., splitnose rockfish south of 40[deg]10' N. lat., 
shortspine thornyhead north of 34[deg]27' N. lat., longspine thornyhead 
north of 34[deg]27' N. lat., darkblotched rockfish, Dover sole, English 
sole, petrale sole, arrowtooth flounder, starry flounder, and species 
in the Other Flatfish complex. All other Amendment 21 species' 
allocations under the proposed action are generally favorable to non-
trawl sectors in that the highest non-trawl sector catch percentages 
analyzed were proposed to be allocated to the non-trawl sectors. The 
only exception to this general trend is lingcod, where a more favorable 
trawl allocation was adopted as the final action. The rationale for a 
higher trawl allocation of lingcod is that, unlike the non-trawl 
sectors that predominantly use hook-and-line gear to target groundfish, 
the trawl sectors are not as constrained by management measures 
designed to foster yelloweye rockfish rebuilding. This is because the 
mandatory use of trawls with small-diameter footropes (i.e., at least 8 
inches) shoreward of the RCA effectively keeps bottom trawls out of the 
high relief habitats where yelloweye occur. A higher trawl allocation 
of lingcod would minimize stranding of harvestable yields of lingcod 
that would otherwise be allocated to non-trawl sectors and unavailable 
for harvest due to yelloweye rebuilding constraints. Thus, the inter-
sector allocation does not provide more bottom trawl opportunity than 
status quo management measures and allocations.
    In addition, the trawl rationalization allows limited entry trawl 
permit holders to switch from trawl to fixed gears to fish their 
quotas, which, in turn, would reduce trawl impacts. It also allows 
nontrawl vessels to harvest the allocation to the trawl sector if they 
acquire a trawl permit and IFQ. These facts lead to the conclusion that 
potential adverse impacts from trawl

[[Page 78355]]

gear could be expected to be lower under the proposed action than under 
status quo management or under any of the other alternatives analyzed. 
Moreover, the allocations are consistent with the current distribution 
of fishing opportunity among groundfish sectors. Even if the fixed gear 
sector had the capacity and desire to catch significantly greater 
amounts of groundfish, which is questionable, those factors are not, in 
and of themselves, criteria for determining allocations. Allocations 
are necessary precisely because more than one group has some level of 
``capacity and desire,'' which engenders potential conflicts over 
resource access that must be resolved through allocation.''

Comments on the Shorebased IFQ Program

    Comment 38. One commenter disagrees with the regulatory provision 
that allows the Shorebased IFQ Program to be closed as a result of a 
projected overage in another trawl sector (MS Coop Program, C/P Coop 
Program). The commenter believes NMFS misinterpreted the Council's 
intent.
    Response. NMFS acknowledges the comment, and appreciates the 
commenter's concern. This concern was raised by representatives of the 
trawl sectors through the Council during the regulatory deeming 
process. As explained at that time, this language reflects NMFS' 
authority to take action in any and/or all sectors of the fishery based 
on a conservation concern. Overfishing or projected overages on OYs are 
expected to be less likely under the trawl rationalization program, 
however, consistent with the MSA, NMFS retains the authority to take 
action to protect the status of the stocks, if needed.
    Comment 39. One commenter stated that fishermen who receive minimal 
QS or zero QS for overfished bycatch species would face the choice of 
being tied up at the dock or paying other fishermen for the privilege 
of using their IFQ for overfished bycatch species.
    Response. NMFS disagrees with the comment that these are the only 
choices available to fishermen that receive low initial allocations of 
QS for overfished bycatch species. QS is associated with QS permit 
owners, and is tracked in the QS permit owner's QS account. Each year, 
NMFS will deposit QP in the QS account based on the amount of QS for 
the IFQ species and the shoreside trawl allocation for that species. In 
order for a fisherman to use QP, the fisherman must obtain QP to 
transfer into the fisherman's unique vessel account associated with the 
vessel the fisherman will use to catch the fish. QP is required in the 
vessel account to cover catch of IFQ species.
    Unless a fisherman has a negative balance of QP for any IFQ species 
in their vessel account, they can go fishing in the Shorebased IFQ 
Program. This is true even if they have zero QP for some IFQ species, 
including overfished bycatch species. To the extent that the fisherman 
is adept at avoiding bycatch of IFQ species which the fisherman has no 
QP for, no QP need ever be transferred to that fisherman's vessel 
account for those species. If the fisherman does catch IFQ species for 
which they do not have QP, the fisherman would have 30 days to obtain 
and transfer QP for that species into their vessel account. 
Alternatively, if the amount of QP that they need to cover the overage 
is within the carryover provisions, they can opt out of the fishery for 
the remainder of the year and use the next year's QP to cover that 
overage (see comment 41). Fisherman also have the option of working 
together to share their QP for overfished bycatch species by avoiding 
overfished bycatch species as much as possible, forming risk pools to 
use collectively, and using that amount to address inadvertent catch of 
unwanted bycatch by members of the pooling arrangement.
    Comment 40. One commenter supported the proposed requirement that 
the owner of a vessel account must cover a deficit for any IFQ species 
within 30 days of when the deficit occurs, or, if the vessel chooses to 
invoke the carryover provision to avoid penalties, opt out of the 
fishery for the remainder of the year. The commenter also suggested 
that in order to encourage clean fishing practices, NMFS should limit 
the number of times a vessel can use this provision to two years total.
    Response. In the August 31st proposed rule (75 FR 53380), NMFS 
specifically requested comment on the carryover provision. NMFS 
acknowledges the comment in support of the proposed regulation and the 
requirement to opt out of the IFQ fishery for the remainder of the year 
if a fisherman invokes the carryover provision to cover a deficit. 
Nothing in the Council motion, however, authorizes NMFS to limit the 
carryover provision to only two years of the program. Amendment 20 does 
not restrict the carryover provision to the first two years of the 
program, but does provide a method for future revision of the carryover 
limit, which may be changed during the biennial specifications process. 
Appendix E, A-2.2.2b; at E-13. Moreover, the carryover provision, as 
well as other relevant issues, will be reviewed during the 5-year 
review. To the extent that the commenter suggests a more restrictive 
carryover provision than that described in the proposed rule, the 
appropriate avenue for consideration of this suggestion under the FMP 
would be through the biennial specifications process or as part of the 
5-year review.
    Comment 41. Another commenter stated that the proposed rule would 
require fishermen to cover a deficit within 30 days or opt out of the 
fishery for the year, and that under the commenter's reading of the 
proposed rule, fishermen that receive zero QS/QP would start from a 
position of noncompliance, and would be required to first obtain QP to 
fish for target species.
    Response. The commenter correctly states that a deficit must be 
covered within 30 days, but does not accurately state what would be 
required for compliance with this provision. In order to harvest fish 
without incurring a deficit, a vessel must have sufficient QP in its 
vessel account. Each vessel participating in the Shorebased IFQ Program 
would have a vessel account, and all vessel accounts start with a zero 
balance. In order to be in compliance, the owner of the vessel would 
have to acquire QP only for the fish that it catches; having a zero 
balance for QP for any one IFQ species does not automatically result in 
noncompliance.
    Under the rationalized fishery, fishermen have several options to 
plan their fishing strategies. A QS owner may choose to transfer the 
resulting QP to the owner's own vessel account, or may elect to lease 
the QP and transfer them to another vessel account entirely. A vessel 
owner that chooses to go fishing can obtain QP before the vessel goes 
fishing, whether from the vessel owner's own QS account or by transfer 
from another owner of QP, for IFQ species that the vessel intends to 
harvest or anticipates harvesting, and may go fishing with a zero 
balance for IFQ species which it intends to avoid. Moreover, if a 
vessel fishing with a zero balance for an IFQ species were to catch 
that species, the vessel would have 30 days after that occurrence 
within which to obtain sufficient QP to cover the deficit, and if the 
deficit is within the carryover limit, the vessel owner has the option 
to opt out of the IFQ fishery for the remainder of the year and cover 
the deficit with QP issued in the following year. A vessel that opts 
out of the IFQ fishery to use the carryover provision may still fish in 
other fisheries during the remainder of the year, and may transfer 
unused QP from the vessel account to another vessel account.

[[Page 78356]]

Under none of these scenarios would the fisherman be in a ``position of 
noncompliance,'' despite having started with a zero balance of QP.
    Comment 42. Multiple commenters addressed NMFS' proposed weight 
conversions. Some commenters agreed with NMFS on the need for a 
standard, coastwide set of conversion factors for fish not landed 
whole. The commenters agreed with the values NMFS published in the 
August 31st proposed rule (75 FR 53380) for most species. For 
sablefish, lingcod, Pacific whiting, and skates, the commenters 
recommended NMFS use values from the Oregon Department of Fish and 
Wildlife (ODFW). Another commenter only supported a non-sector specific 
sablefish conversion factor of 1.6, but did not support any other 
proposed additional weight conversion factors at this time for several 
reasons.
    Response. In the August 31st proposed rule (75 FR 53380), NMFS 
specifically requested comment on the actual values and implications of 
the proposed conversion factors. NMFS' intent is to have consistent 
coastwide conversion factors that are as consistent as possible with 
existing state practices. It is NMFS' understanding that processors 
will report on electronic fish tickets in a similar manner as the 
states have been doing for the state paper fish ticket system, which is 
to report the groundfish species to sorting groups with their current 
condition noted (e.g., headed and gutted (eviscerated)). If the states 
have more restrictive landings requirements on the species or condition 
that fish may be landed in, the Federal regulations will not supersede 
those more restrictive state requirements. The conversion factor would 
be applied to the state, PacFIN, or Federal data systems later in the 
process. While ideally the Federal weight conversion factors would be 
consistent with values used by the states, they are independent and may 
be different. As stated in the preamble to the proposed rule, Federal 
regulations at Sec.  660.60(h)(5)(ii) state that Federal conversion 
factors will be used for participants in the Shorebased IFQ Program. 
However, for the limited entry fixed gear and open access fisheries, 
the regulations say that state conversion factors will be used.
    Based on Council discussion at the September 2010 meeting and on 
public comment received, NMFWS has revised the regulations in this 
final rule to make sablefish, lingcod, and Pacific whiting consistent 
with the values from the Oregon Department of Fish and Wildlife (ODFW), 
with some exceptions, and to clarify that Federal regulations do not 
supersede more restrictive state regulations on landings requirements 
for the species or condition that fish may be landed. NMFS is not 
adopting ODFW conversion factors for filleted Pacific whiting, for 
winged skates, or for glazed sablefish because processing of groundfish 
is prohibited at-sea by vessels in the Shorebased IFQ Program at Sec.  
660.112(b)(1)(xii), with narrow exceptions, inapplicable here. In 
addition, skates are not an IFQ species. The value from ODFW for 
lingcod of 1.1 uses the term ``gilled and gutted'' which is equivalent 
to ``gutted with the head on'' in Federal regulations. The values for 
other groundfish species will remain as previously specified in the 
August 31st proposed rule, including a value for Pacific whiting that 
has been headed and gutted with tail removed. This conversion factor is 
necessary because there is an exception from the prohibition on 
processing at-sea for Pacific whiting for vessels that are equal to or 
shorter than 75-ft (23-m) that head, gut, remove tails and freeze 
whiting. See the section on ``Changes from the Proposed Rule.'' The 
conversion factors implemented through this final rule are based on the 
best available information and are subject to change on the basis of 
improved scientific information.
    Comment 43. One commenter disagreed with the proposed regulations 
at Sec.  660.113(a)(4)(i) to record the weight of fish on electronic 
fish tickets in round weight only. The commenter suggested that the 
weight of fish recorded on electronic fish tickets should be the weight 
of the fish based on the condition it was landed in, whether dressed or 
round, and the conversion factors for dressed fish should be applied 
after the fish ticket reporting. The commenter provided several reasons 
why this would be preferable, including: ease for the catch monitors to 
verify weights without dealing with conversion factors; more assurance 
by NMFS and states that the correct conversion factors are applied, 
reducing the likelihood of confusion for buyers between state and 
electronic fish tickets; and consistent weights between state and 
electronic fish tickets.
    Response. NMFS appreciates the comment and has reviewed the 
required information for electronic fish tickets. NMFS is developing an 
electronic fish ticket system where weight limit conversion factor will 
be automated and applied once the data is entered into the data system. 
Accordingly, the required information that IFQ first receivers must 
provide on electronic fish tickets is being revised in this final rule 
to require the actual weight and condition of species landed, rather 
than the round weight. NMFS is also requiring the vessel account number 
to be reported on the electronic fish ticket to accurately track landed 
catch to a specific vessel account. To be clear, the Federal electronic 
landing report (electronic fish ticket) does not replace any state 
reporting requirements for landings but is in addition to those 
requirements.
    Comment 44. One commenter stated that NMFS failed to consider 
impacts of gear switching on fixed gear fisheries, on ports and 
processors dependent on species harvested by trawl gear, and on the 
inequities created between sectors (fixed gear and trawl) for gear 
conversion.
    Response. As discussed in response to the commenter's similar 
comments on Amendments 20 and 21 to the FMP, the potential effects of 
the trawl rationalization program on other fisheries and on ports and 
processors dependent on species harvested by trawl gear are 
specifically addressed in the FEIS ``Rationalization of the Pacific 
Coast Groundfish Limited Entry Trawl Fishery'' in Chapter 4, Sections 
4.8.2 and 4.8.3 on pages 402-409, and Section 4.9.2 on pages 413-423, 
respectively. Potential effects specifically due to gear switching that 
were analyzed in the FEIS include spillover of vessel participation, 
grounds competition, market competition and regional shifts in 
landings. These potential effects were identified and analyzed, to the 
extent possible, without the knowledge of observed or actual impacts. 
These potential impacts were highlighted for the purpose of monitoring 
behavioral changes in the fishery, understanding their impacts, and 
reacting through the Council process to minimize impacts. These matters 
will also be evaluated through the 5 year comprehensive review of the 
trawl rationalization program.
    Regarding the comment about alleged inequities between sectors, 
under the license limitation program, trawl vessels are already allowed 
to use fixed gear to take the trawl allocation, albeit they must do so 
under the open access regulations, which have much lower limits. In 
contrast, fixed gear endorsements give a vessel access to the fixed 
gear allocation. Allowing trawl vessels to switch gear (or other 
vessels to acquire a trawl permit and IFQ) does not give trawl-
permitted vessels access to the fixed gear quota; it merely allows the 
vessel to use nontrawl gear to take the trawl IFQ. Moreover, with 
regard to intersector allocations and allowing fixed gear to harvest 
trawl quota, it should be noted that trawlers who have entered the 
fishery since 1994 have had to buy trawl permits to access trawl quota, 
thus in this respect other vessels

[[Page 78357]]

would be on an even footing with trawl vessels. This issue of requiring 
a trawl permit and quota to harvest trawl quota with fixed gear was 
addressed in the response to comments on the Amendment 20 FEIS at page 
661. On average there are about 120 trawl vessels that participate in 
the fishery each year; however, there are about 168 permits. This 
indicates some opportunity for nontrawl vessels to acquire trawl 
permits and use trawl IFQ. Further, it is expected that there will be 
consolidation in the trawl fleet, increasing the number of trawl 
permits potentially available for use by nontrawl vessels. Thus, 
despite the limited scope, the IFQ system will allow for some use of 
trawl IFQ by nontrawl vessels.
    Comment 45. One commenter expressed support for gear switching and 
recommended that NMFS create incentives for permanent conversion to 
lower impact gears.
    Response. NMFS acknowledges the comment in support of gear 
switching provisions in the proposed rule; however, nothing in 
Amendment 20 allows NMFS to provide incentives for permanent gear 
conversion. The Council considered and rejected permanent gear 
conversion in its development of alternatives for Amendment 20. The 
Council's rationale for rejecting permanent gear conversion is included 
in the FEIS at Appendix A, Section A.7, on pages A-419 to A-423. Since 
permanent gear conversion is not within the scope of the trawl 
rationalization program, NMFS declines to provide any incentives for 
permanent gear conversion.
    Comment 46. One commenter was concerned with the timing of applying 
for an interim first receiver site license and the start of the 
fishery. The commenter suggested that, if the fishery starts January 1, 
2011, no first receiver site license (interim or permanent) should be 
required until February 1, 2011.
    Response. NMFS understands the commenter's concerns, but believes 
the interim first receiver site license will accommodate the needs of 
the fishery. Due to the quick implementation of this program, the 
interim first receiver site license was developed to allow industry 
participants time to obtain permanent site licenses. An interim first 
receiver site license is required before an IFQ first receiver begins 
accepting landings of IFQ species, which could be as early as January 
1, 2011. Site licenses are required for tracking and documentation 
purposes to account for the landings from the quota-based program. NMFS 
will work with industry from the start of the program through June 30, 
2011, to complete an acceptable application and monitoring plan for an 
annual first receiver site license, including site inspections. First 
receivers that have accepted Pacific whiting in the past three years 
are already familiar with many of the site license requirements, 
including preparation of a monitoring plan, and should only require 
some modifications to their plans such as expanding them to cover more 
groundfish species.
    Comment 47. Some commenters stated that the maximized retention in 
the Shorebased IFQ Program should be consistent with the existing 
maximized retention fishery, where some discards are allowed for 
operational and safety reasons, but those discards are estimated by an 
observer.
    Response. In the August 31st proposed rule (75 FR 53380), NMFS 
specifically requested comment on any implications that the prohibition 
on discarding may have on the prosecution of a maximized retention 
fishery, and further requested comment on what should constitute 
discarding under this provision of the Shorebased IFQ Program. NMFS 
agrees with the commenters that the maximized retention in the 
Shorebased IFQ Program should be consistent with the existing maximized 
retention fishery. Under current practices in the maximized retention 
Pacific whiting fisheries, some minor amounts of operational discard 
are allowed. Under trawl rationalization, any minor operational amounts 
of discard would be estimated by the observer and deducted from 
allocations. NMFS has modified the final rule language in the 
Shorebased IFQ Program to be consistent with the MS Coop Program 
language on maximized retention which allows minor operational amounts 
of discard which are estimated by the observer. See the section on 
``Changes from the Proposed Rule.''
    Comment 48. One commenter disagreed with the requirement that a 
vessel fish in a single management area during a single trip. The 
commenter stated that with 100 percent observer coverage, observer 
access to vessel location, all catch recorded, and--in the future--
electronic logbooks, there is no need to restrict a vessel's operation 
by restricting them to a single management area per trip.
    Response. Several IFQ species are either a single species with 
different QS by area; or are a single species in one area and a 
component of an assemblage, such as minor shelf rockfish or minor slope 
rockfish, in another. For instance, QS for sablefish is issued with 
area distinctions either north or south of 36[deg] N. lat. Likewise, QS 
for shortspine thornyhead is issued with area distinctions either north 
or south of 34[deg]27' N. lat. One example of an IFQ species would be 
yellowtail rockfish, which is an individual IFQ species north of 
40[deg]10', but a component of the minor shelf rockfish species complex 
south of 40[deg]10'. Similar distinctions exist for bocaccio rockfish, 
chilipepper rockfish, cowcod, Pacific ocean perch, and splitnose 
rockfish.
    Discards will be accounted for at the tow level, with 100 percent 
observer coverage and haul locations. However, not all retained catch 
will be estimated by observers. Landed catch, therefore, would not be 
attributable to the appropriate management area if a vessel were to 
fish in multiple management areas in one trip. For example, if a vessel 
were to catch sablefish both North and South of 36[deg] in the same 
trip, it would not be possible for an IFQ first receiver to sort or for 
the catch monitor to verify how much sablefish was caught in either 
area in order to enter on the electronic fish ticket the appropriate 
amount for sablefish north of 36[deg] N. lat. versus sablefish south of 
36[deg] N. lat. Nor would it be possible for NMFS to determine how much 
QP should be subtracted from the vessel account for their QP of each 
IFQ species.
    NMFS raised this concern with the Council in its March 2010 
meeting. Because landings are a mix of all hauls taken during a single 
trip, NMFS indicated its intent to implement this provision in order to 
simplify sorting requirements, at-sea observation, and enforcement of 
IFQ limits. NMFS considers this approach to be the most straightforward 
and efficient method to track and verify total catch of a vessel's IFQ 
limits for individual species and rockfish complexes. Therefore, the 
Council deemed, and NMFS has implemented, the requirement in the 
Shorebased IFQ Program for a vessel to fish in a single management area 
during a trip.
    Comment 49. One commenter requested clarification on the provision 
that allows a vessel to deliver a load of fish to more than one first 
receiver and how that relates to the requirement that all fish be 
offloaded once an offload has begun.
    Response. A vessel may make more than one delivery as part of the 
same landing. Current regulations at Sec.  660.11 define land or 
landing as ``to begin transfer of fish, offloading fish, or to offload 
fish from any vessel[;] Once transfer of fish begins, all fish aboard 
the vessel are counted as part of the landing.'' This definition does 
not prohibit a landing from being offloaded

[[Page 78358]]

through more than one delivery; however, all fish aboard a vessel at 
the start of the first transfer are considered part of the same 
landing. Current regulations at Sec.  660.12(e)(5) prohibit vessels 
from landing fish without observer coverage when a vessel is required 
to carry an observer. The proposed regulations at Sec. Sec.  
660.112(b)(1)(xiii) and 660.140(h)(1) clarify that observer coverage 
requirements under the Shorebased IFQ Program include having an 
observer onboard during a trip until such time that all fish from that 
trip have been offloaded. Observers must also be onboard the vessel 
during transit from one delivery site to another. Section 660.60(h)(2) 
reiterates the definition of a landing at Sec.  660.12, and clarifies 
that not only are all fish aboard the vessel at the time offloading 
begins counted as part of the same landing, but also that they would be 
required to be reported as such. Section 660.60(h)(2) of the proposed 
rule would also prohibit catcher vessels in the mothership sector from 
setting the gear for a subsequent haul; however, the regulations did 
not specify that all fish from an IFQ landing would need to be 
completed before a new fishing trip begins. NMFS appreciates the 
comment pointing to this discrepancy in the regulations, and 
accordingly is including additional regulatory language to clarify that 
an IFQ landing would need to be offloaded prior to starting a new 
fishing trip. See the section on ``Changes from the Proposed Rule'' for 
specific regulatory citations.
    Comment 50. One commenter requested clarification on the printed 
record requirement for scales at first receivers as stated at Sec.  
660.140(j)(2)(i) and (ii). The commenter stated that one paragraph 
exempted scales used for bulk weighing from the printed record 
requirement while the other paragraph limits the exemption based on the 
purchasing record of the first receiver and other factors having 
nothing to do with bulk weighing.
    Response. The commenter appears to have misread the exemption. 
Scales NOT designed for bulk weighing may be exempted from all or part 
of the printed record requirements (i.e. platform scales). The second 
paragraph referenced outlines the conditions that are required to 
obtain the exemption. Based on comments received from industry during 
public workshops, including comments about the costs for small business 
that do not accept large volumes of fish, NMFS considered a specific 
standard for this exemption as appropriate. The requirement for a 
printed record is to assist the catch monitor in independently 
monitoring the sorting and weighing processes and ensuring catch 
accountability. Monitoring may be conducted effectively at facilities 
that accept small volumes of catch, without the need for a printed 
record from non-bulk weighing scales, pending the first receiver 
ensuring that all catch is weighed and that independent verification of 
the weights are possible.
    Comment 51. One commenter suggested that the responsibilities of 
the first receiver site license should go to the ``holder'' of the 
license rather than the owner of the first receiver company because the 
holder could be an individual other than an owner and restrictions on 
the license is a primary enforcement tool.
    Response. NMFS agrees with the comment. NMFS is revising the final 
rule at Sec.  660.140(j)(2)(i) and (j)(3) to change the regulations 
from ``the owner of an IFQ first receiver must* * * '' to ``the IFQ 
first receiver must* * *. '' ``IFQ first receivers'' are defined in the 
October 31st final rule (75 FR 60868) at Sec.  660.111 as ``persons who 
first receive, purchase, or take custody, control, or possession of 
catch onshore directly from a vessel that harvested the catch while 
fishing under the Shorebased IFQ Program described at Sec.  660.140, 
subpart D.'' For the first receiver site license owner, the term 
``license owner'' is defined at Sec.  660.11 as ``a person who is the 
owner of record with NMFS, SFD, Permits Office of a License issued 
under Sec.  660.140, subpart D'' and is cross-referenced from the 
``permit owner'' definition. See the section on ``Changes from the 
Proposed Rule'' for specific regulatory citations.
Comments on At-Sea Whiting Programs (Mothership or Catcher/Processor)
    Comment 52. One commenter stated that transfers of MS/CV endorsed 
permits should be effective immediately rather than at the start of the 
next cumulative limit period because 2-month cumulative trip limits do 
not apply to the at-sea fishery. Another commenter agreed with NMFS' 
statement in the proposed rule that transfers of MS permits and C/P-
endorsed limited entry permits would be effective immediately upon 
reissuance to the new vessel because neither of these permits would be 
affected by trip limits.
    Response. In the August 31st proposed rule (75 FR 53380), NMFS 
specifically requested comment on the effective date for an MS/CV-
endorsed limited entry permit's second transfer within the same year. 
At the September 2010 Council meeting and in the Council's letter of 
public comment on the August 31st proposed rule, the Council stated 
that the second transfer of an MS/CV-endorsed limited entry permit 
should be effective immediately because trip limits will not apply to 
the at-sea sectors (MS or C/P) in 2011 and 2012. NMFS agrees with the 
Council's recommendation and revised the regulations in this final rule 
to reflect that. See the section on ``Changes from the Proposed Rule'' 
for specific regulatory citations. NMFS also agrees with the second 
commenter who reaffirmed NMFS regulations in the proposed rule that 
transfers of MS permits and C/P-endorsed limited entry permits would be 
effective immediately because they are not subject to trip limits.
    Comment 53. Some commenters stated that there is no need for the 
regulations on the at-sea sector donation program (which allows amounts 
over retention limits to be donated instead of discarded) because there 
are no 2-month cumulative trip limits in the at-sea fishery.
    Response. In the August 31st proposed rule (75 FR 53380), NMFS 
specifically requested comment on the implications of removing or 
retaining the at-sea sector donation program and requested suggested 
language revisions. The at-sea sector donation program, called the 
``bycatch reduction and full utilization program for at-sea 
processors'' in regulation, was previously established to allow vessels 
harvesting unsorted catch to retain and donate amounts of groundfish 
that were in excess of trip limits. At the September 2010 Council 
meeting, the Council clarified that the at-sea sector regulations 
should not require vessels to be subject to trip limits for bycatch of 
non-whiting groundfish species. In addition to public comment from the 
Council, another commenter supported this conclusion and both 
recommended that the donation program is no longer necessary. NMFS 
agrees with this conclusion and has removed the at-sea donation program 
from the regulations in this final rule. See the section on ``Changes 
from the Proposed Rule'' for specific regulatory citations.
    In reviewing regulations that may no longer be necessary because of 
changes in the trip limit requirements for the at-sea fishery, NMFS 
also notes that there may be regulations that are no longer necessary 
or need revisions because of changes in the trip limit requirements for 
the Shorebased IFQ Program. For the 2011-2012 groundfish harvest 
specifications and management measures, the Council has recommended 
trip limits only for non-

[[Page 78359]]

IFQ species. The trawl fishery crossover provision regulations, 
specified in the October 1st final rule at Sec.  660.120, list 
requirements for handling trip limits when a vessel crosses over a 
management area within a 2-month cumulative trip limit period. However, 
all of the species listed in this section of the regulations are now 
IFQ species that are no longer subject to 2-month cumulative trip 
limits. NMFS intends to revisit these regulations through a future 
action to determine if they should be removed altogether or revised 
with new species or based on changing management concerns.
    Comment 54. One commenter asked for clarification on whether 
discarding of non-whiting species would be required in the absence of 
2-month cumulative trip limits in the at-sea fishery.
    Response. The regulations for at-sea coop programs would not 
require discarding of non-whiting groundfish species in the absence of 
2-month cumulative trip limits. Allocations of non-whiting species to 
the at-sea sectors are specified at Sec.  660.150(c) for the MS Coop 
Program and at Sec.  660.160(c) for the C/P Coop Program, including 
allocations for some overfished non-whiting groundfish species at risk 
of being caught with Pacific whiting, set-asides for other non-whiting 
groundfish species less likely to be caught in whiting fisheries, and 
no allocation or set-aside for species not expected to be caught in 
whiting fisheries. Over time, the Council may revisit these 
allocations, set-asides (or lack thereof), and trip limits if catch of 
non-whiting groundfish species increases in the at-sea sectors.
    Comment 55. One commenter agreed with NMFS' interpretation of the 
processor obligation for the MS Coop Program where the MS/CV-endorsed 
permit's catch history assignment is obligated to an MS permit for the 
year. The commenter also agreed with the timing of the declaration in 
regulations which is reported to NMFS through the annual MS/CV-endorsed 
limited entry trawl permit renewal and again through the MS Coop permit 
application.
    Response. NMFS acknowledges this comment.
    Comment 56. One commenter asked for clarification about items 
applicable to the MS Coop Program that NMFS disapproved in Amendment 
20, as stated in the preamble to the August 31st proposed rule (75 FR 
53380, 53396), and whether they should apply to the C/P Coop Program. 
In particular, the commenter questioned the requirement for coop 
agreements to be submitted to the Council and available for public 
review before the coop is authorized to go fishing, and the requirement 
to submit a letter to the Department of Justice and provide a copy to 
NMFS.
    Response. On August 9, 2010, NMFS made its decision to partially 
approve Amendments 20 and 21 to the FMP. The preamble to the October 
1st final rule (75 FR 60868) discussed the partial approval of 
Amendments 20 and 21. The August 31st proposed rule (75 FR 53380) for 
the additional program components, developed by NMFS and deemed by the 
Council prior to NMFS' partial approval of the amendments, contained 
several provisions that NMFS subsequently disapproved. The commenter 
correctly noted that the preamble to the August 31st proposed rule (75 
FR 53380, 53396) described disapproval of items applicable to the MS 
Coop Program, but did not specify whether similar provisions should 
apply to the C/P Coop Program. The similar provisions applicable to the 
C/P Coop Program were not specifically contained in Amendment 20 to the 
FMP and thus were not specifically disapproved by NMFS' decision on the 
Amendments; however, they had been deemed by the Council as necessary 
and appropriate in the regulations for the implementation of the 
program. NMFS has considered the issue in light of the disapproval of 
provisions of Amendment 20 applicable to the MS Coop Program, and 
believes the reasons for disapproval apply equally to the C/P Coop 
Program. Accordingly, with this final rule, NMFS is removing the 
requirement that the C/P coop file a coop contract with the Council and 
make it available for public review and the requirement that the C/P 
coop file a letter from the Department of Justice and provide a copy to 
NMFS. See the section on ``Changes from the Proposed Rule'' for 
specific regulatory citations.

Items NMFS Requested Comment on in the Proposed Rule

    In addition to the comments received above, NMFS specifically 
requested comment on several items in the proposed rule. NMFS received 
comments on some but not all of those items. Where NMFS has made 
changes to the proposed rule where comments were specifically 
requested, these specific requests are identified in the section on 
``Changes from the Proposed Rule.''

Changes From the Proposed Rule

A. All Trawl Programs

I. Changes To Reflect Recent NMFS Actions
    Some changes are made in this final rule to update the regulations 
to reflect actions that have been implemented at 50 CFR part 660 since 
the proposed rule (75 FR 53380, August 31, 2010) was published. The 
regulations in this final rule were reviewed and revised to reflect 
changes implemented in the final rule published on October 1, 2010 (75 
FR 60868), called the ``initial issuance'' final rule. For example, 
Sec.  660.25(b)(4)(iv)(A) was revised to include the language from the 
final rule regarding the restriction on changes in permit ownership 
during application period.
II. Changes Due to Partial Disapproval of Amendment 20
    On August 9, 2010, NMFS made its decision to partially approve 
Amendments 20 and 21 to the FMP. The preamble to the final rule (75 FR 
60868, October 1, 2010) discussed the partial approval of Amendments 20 
and 21. The proposed rule (75 FR 53380, August 31, 2010), which was 
developed by NMFS and deemed necessary by the Council prior to NMFS' 
partial approval of the amendments, contained several provisions in the 
MS Coop Program and C/P Coop Program that NMFS subsequently 
disapproved. Public comment on the proposed rule requested 
clarification whether the items that were disapproved only affected the 
MS Coop Program, or whether similar provisions applicable to the C/P 
Coop Program would also be revised. The similar provisions applicable 
to the C/P Coop Program were not specifically contained in Amendment 20 
to the FMP, however, they had been deemed by the Council as necessary 
and appropriate for the implementation of the program. NMFS has 
considered the issue in light of the disapproval of provisions of 
Amendment 20 applicable to the MS Coop Program, and believes the 
reasons for disapproval apply equally to the C/P Coop Program. 
Accordingly, with this final rule, NMFS is removing or revising 
regulatory language for three provisions based on the partial 
disapproval of Amendment 20: (1) The requirement that MS coops or the 
C/P coop file a coop contract with the Council and to make it available 
for public review [it must still be filed with NMFS]; (2) the 
requirement that MS coops or the C/P coop file a letter from the 
Department of Justice; and (3) the

[[Page 78360]]

requirement that MS coop agreements include a clause that at least a 
majority of the members are required to dissolve the coop.
    The first provision stated: ``Signed copies of the coop agreement 
must be submitted to NMFS and the Council and available for public 
review before the coop is authorized to engage in fishing activities.'' 
NMFS disapproved of the requirement to submit agreements to the Council 
and for public review because not only would it be impracticable given 
the timing for public review, but also could violate restrictions on 
the disclosure of confidential information under the MSA. Accordingly, 
NMFS is revising this provision in the final rule for both the MS Coop 
Program (Sec.  660.150 (d)(1)(iii)(A)) and the C/P Coop Program (Sec.  
660.160 (d)(1)(iii)(A)) to state: ``Signed copies of the coop agreement 
must be submitted to NMFS before the coop is authorized to engage in 
fishing activities.'' The second provision would have required coops to 
submit a letter to the Department of Justice requesting a business 
review letter on the fishery coop, and to submit copies of all such 
correspondence with a coop permit application. NMFS disapproved this 
provision because compliance with antitrust laws is a separate and 
distinct obligation of each and every participant and does not need to 
be a requirement specified in the FMP. Accordingly, NMFS is removing 
this provision entirely in the final rule for both the MS Coop Program 
(from Sec.  660.150 (d)(1)(iii)(A)(2)) and the C/P Coop Program (from 
Sec.  660.160 (d)(1)(iii)(A)(2)). The third provision would have 
required coop agreements in the MS Coop Program to include ``A 
requirement that agreement by at least a majority of the members is 
required to dissolve the coop.'' NMFS disapproved this provision 
because it would interfere with private parties' ability to contract 
and agree to the terms of dissolution that are appropriate for their 
coop. Accordingly, NMFS is removing this provision in the final rule 
for the MS Coop Program from Sec.  660.150 (d)(1)(iii)(A)(1).
III. Observer and Catch Monitor Programs
    In the proposed rule (75 FR 53380, August 31, 2010), NMFS 
specifically requested comment on two alternatives to the conflict of 
interest provisions of the observer and catch monitor regulations. 
Alternative 1 (Council-deemed) represented the more narrow 
interpretation of the conflict of interest regulations recommended and 
deemed by the Council. As mentioned in the preamble to the proposed 
rule, NMFS had concerns that the Council's recommended regulatory 
language was not consistent with national policy, with conflict of 
interest regulations for other sectors of the groundfish fishery, or 
with regulations for other NMFS programs. Therefore, NMFS proposed to 
implement Alternative 2 (NMFS-proposed) using its authority under 
section 305(d) of the MSA to publish language in the final rule that 
differs from what was deemed by the Council. The Council discussed this 
issue further at their September 2010 meeting and submitted public 
comment on the proposed rule supporting Alternative 2 (NMFS-proposed) 
(see Comment 18). With this final rule, NMFS is implementing the 
conflict of interest regulations from Alternative 2 (NMFS-proposed) in 
the proposed rule for the observer programs (Sec. Sec.  
660.140(h)(6)(vii)), 660.150(j)(6)(vii), and 660.160(g)(6)(i)(G)) and 
for the catch monitor program (Sec.  660.18(c)).
    In this final rule, NMFS has further clarified a provision at Sec.  
660.112(b)(1)(xiii), Trawl fishery--prohibitions, to make it clear that 
observer coverage must continue until all IFQ species from the trip are 
offloaded, regardless of whether the fish is delivered to one or 
multiple IFQ first receiver(s). Once all IFQ species from the trip are 
offloaded, the observer will inspect the hold to verify that all IFQ 
species have been offloaded, completing that trip. In addition, new 
prohibitions have been added to Sec.  660.12, General groundfish 
prohibitions, at paragraphs (e)(9) and (f)(9) to make it clear that it 
is prohibited to fail to meet observer provider and catch monitor 
provider responsibilities.
    Also in this final rule, NMFS has further clarified provisions in 
the observer program regulations on the effective date of a 
decertification. The following sentence has been added to regulations 
at Sec. Sec.  660.140(h)(6)(ix)(C), 660.150(j)(6)(ix)(C), 
660.160(g)(6)(i)(I)(3), ``Decertification is effective 30 calendar days 
after the date on the IAD, unless there is an appeal.'' Language for 
the observer and catch monitor regulations at Sec. Sec.  660.18, 
660.140(h), 660.150(j), and 660.160(g) have also been revised to make 
the language on the IAD and appeals more consistent between these 
sections and with the IAD and appeals language for the trawl 
rationalization permits and endorsements. Language in these sections 
has also been revised to make them as consistent with each other as 
appropriate.
    With this final rule, language at Sec.  660.17, Catch monitors and 
catch monitor providers, and at Sec.  660.18, Certification and 
decertification procedures for catch monitors and catch monitor 
providers, was revised in some places to replace the terms 
``processor'' or ``processing facility'' with ``first receiver.'' 
Language in these sections has also been revised to make them as 
consistent as possible with similar provisions for the observer program 
at Sec. Sec.  660.140(h), 660.150(j), and 660.160(g). New language was 
added to the catch monitor provider responsibilities at Sec.  
660.17(e)(1)(vii) consistent with similar requirements for the observer 
program to include additional specifications for the health and fitness 
exams of catch monitors, including a certificate of insurance. In Sec.  
660.17(e)(1)(ix) regarding priority given to candidates that prove 
their knowledge of West Coast marine species, ability to communicate in 
writing, etc. was deleted from this final rule because it is not 
necessary to specify in regulation. Also consistent with the observer 
program requirements, a new paragraph was added to the catch monitor 
provider responsibilities at Sec.  660.17(e)(14) to include information 
on catch monitor training certificate, annual briefing requirement, and 
validity of the certificate.
    With this final rule, a sentence was deleted from Sec.  
660.140(i)(2) that stated, ``IFQ first receivers are responsible for 
all associated costs including training time, debriefing time, and 
lodging while deployed.'' This sentence was deleted because this is a 
requirement of the catch monitor provider. The contract between the 
catch monitor provider and the first receiver will determine the cost 
paid for catch monitor services.
    Based on public comment received (see Comment 23), NMFS is removing 
regulations regarding telephone access while processing whiting (Sec.  
660.140(i)(4)(iv) of the August 31st proposed rule) because they are no 
longer necessary.
IV. Initial Issuance Appeals Deadline
    NMFS has decided to extend the deadline to appeal an IAD for the 
initial issuance of the following permits and endorsements: QS permit 
and associated QS and/or IBQ, MS permit, MS/CV endorsement and 
associated catch history assignment, and C/P endorsement. Upon further 
consideration, NMFS is extending the deadline published in the October 
1st final rule (75 FR 60868) from 30 calendar days to 60 calendar days. 
NMFS believes this extension of time is warranted given the time of 
year in which NMFS anticipates sending out IADs and the potential 
difficulties in

[[Page 78361]]

meeting a 30 day deadline due to holidays, with corresponding reduced 
staffing, increased administrative burdens, and potential postal 
delays. Additionally, the extension provides applicants more time to 
gather documentation in support of any appeal that applicants may wish 
to make. The regulations at Sec. Sec.  660.25(g)(4), 660.140(d)(8)(ix), 
660.150(f)(6)(vi) and (g)(6)(viii), and 660.160(e)(6)(vii) are revised 
to reflect the 60 calendar day deadline to appeal an IAD.
V. Minor Edits
    NMFS has made some minor edits to the regulations to make 
terminology more consistent (e.g., references to shorebased IFQ fishery 
are edited to read Shorebased IFQ Program) and to correct typographical 
errors and technical errors (e.g., capitalize Shorebased IFQ Program; 
use ``an'' before MS permit and MS/CV-endorsed permit; and add a hyphen 
to ``MS/CV-endorsed'' and ``C/P-endorsed''). In addition, in Sec.  
660.25(b)(4) regarding limited entry permits, NMFS has replaced the 
term ``transfer'' with ``change in vessel registration'' as appropriate 
to distinguish such transfers from changes in permit ownership. To the 
extent that ``transfer'' may be used in other sections where a similar 
confusion may arise, NMFS intends to clarify the term as appropriate in 
future rulemakings.

B. Shorebased IFQ Program

I. General
    Some general changes are made to regulatory language in this final 
rule. Similar to what was implemented with the ``initial issuance'' 
final rule (75 FR 60868, October 1, 2010), where appropriate, the terms 
``QS'' and ``QP'' have been revised to read ``QS and IBQ'' and ``QP or 
IBQ pounds,'' respectively. Pacific halibut is listed as an IFQ 
species. Pacific halibut, however, has an individual bycatch quota 
(IBQ) which is distinct from QS for groundfish species listed under the 
groundfish FMP. This change is to make it clear that Pacific halibut 
IBQ and IBQ pounds are distinct and may be managed differently than QS 
or QP.
II. Maximized Retention in the Pacific Whiting IFQ Fishery
    In the proposed rule (75 FR 53380, August 31, 2010), NMFS 
specifically requested comment on any implications that the prohibition 
on discarding may have on the prosecution of a maximized retention 
fishery, and further requested comment on what should constitute 
discarding under this provision of the Shorebased IFQ Program. NMFS 
received two comments on this issue, both of which stated that the 
maximized retention provision in the Shorebased IFQ Program should be 
consistent with the existing maximized retention fishery, where some 
discards are allowed for operational and safety reasons, but those 
discards are estimated by an observer (see Comment 47). Under current 
practices in the maximized retention Pacific whiting fisheries, some 
minor amounts of operational discard are allowed. Under trawl 
rationalization, any minor operational amounts of discard would be 
estimated by the observer and deducted from allocations. NMFS raised 
this issue at the Council's March 2010 meeting for the maximized 
retention fishery in the mothership sector (Agenda Item E.6.b, NMFS 
Report 1, March 2010, 25). For the Shorebased IFQ Program, 
however, the Council motion was ambiguous. In the proposed rule, NMFS 
proposed regulations consistent with the Council motion, but not 
consistent with current practice nor with regulations for the MS Coop 
Program. With this final rule and based on public comment, NMFS is 
revising the language at Sec.  660.140(g)(2) to be consistent with the 
MS Coop Program language at Sec.  660.150(i). The revised language 
reads, ``Maximized retention vessels participating in the Pacific 
whiting IFQ fishery may discard minor operational amounts of catch at 
sea if the observer has accounted for the discard (i.e., a maximized 
retention fishery).'' In addition, the prohibition on discarding IFQ 
species at Sec.  660.112(b)(1)(xiv) is revised to clarify that it is 
prohibited to discard IFQ species at sea unless that discard has been 
documented or estimated by an observer.
III. Weight Limits and Conversions
    In the proposed rule (75 FR 53380, August 31, 2010), NMFS 
specifically requested comment on the actual values and implications of 
the proposed conversion factors. NMFS received multiple comments on 
this issue (see Comment 42). Based on the September 2010 Council 
meeting and on public comment received, the regulations at Sec.  
660.60(h)(5) have been revised in this final rule to make sablefish, 
lingcod, and Pacific whiting consistent with the values from ODFW (with 
some exceptions, described below) and to clarify that Federal 
regulations do not supersede more restrictive state regulations on 
landings requirements for the species or condition that fish may be 
landed. There will not be a Federal conversion factor for filleted 
Pacific whiting, for winged skates, or for glazed sablefish because 
processing of groundfish is prohibited at-sea by vessels in the 
Shorebased IFQ Program at Sec.  660.112(b)(1)(xii), with narrow 
exceptions, inapplicable here. In addition, skates are not an IFQ 
species and so are not appropriate to be included. The value from ODFW 
for lingcod of 1.1 uses the term ``gilled and gutted'' which is 
equivalent to ``gutted with the head on'' in Federal regulations. The 
values for other groundfish species will remain as previously specified 
in the August 31st proposed rule. The conversion factors implemented 
through this final rule are based on the best available scientific 
information and may change in a future rulemaking based on improved 
science.
    In this final rule, NMFS is also revising regulations at Sec.  
660.113(b)(4)(i) on recordkeeping and reporting for electronic fish 
tickets in the Shorebased IFQ Program. In making the revisions to the 
weight limit and conversions regulations and in response to public 
comment (see Comment 43), NMFS reviewed the required information for 
electronic fish tickets. NMFS is developing an electronic fish ticket 
system where weight limit conversion factor will be automated and 
applied once the data is input in the data system. Accordingly, the 
required information that IFQ first receivers must provide on 
electronic fish tickets is being revised in this final rule to require 
the actual weight and condition of species landed, rather than the 
round weight. NMFS is also requiring the vessel account number to be 
reported on the electronic fish ticket to accurately track landed catch 
to a specific vessel account.
IV. Landing Groundfish in the Shorebased IFQ Program
    NMFS received public comment requesting clarification of the 
provision that allows a vessel to deliver a load of fish to more than 
one first receiver and how that relates to the requirement that all 
fish be offloaded once an offload has begun (see Comment 49). Based on 
the public comment received, NMFS is further clarifying this provision 
in the final rule at Sec.  660.60(h)(2) and is adding a prohibition at 
Sec.  660.112(b)(1)(xv). These changes will clarify that a vessel 
participating in the Shorebased IFQ Program may not begin a new fishing 
trip until all fish aboard the vessel have been offloaded.
V. IFQ Species and Species Groupings
    The regulations at Sec.  660.140(c)(1), as specified in the initial 
issuance final rule (75 FR 60868, October 1, 2010), list

[[Page 78362]]

the IFQ species/species groups and area specific designations for those 
species. Those regulations also state that the IFQ species groupings 
and area subdivisions will be those for which OYs are specified in the 
ABC/OY tables, and those for which there is an area-specific 
precautionary harvest policy. Upon further review, NMFS determined that 
the IFQ species list published in the initial issuance final rule did 
not match the ABC/OY table, in particular with regards to area 
designations for those species. The description of IFQ species in this 
section needs to be clarified in order for the reallocation provisions 
(Sec.  660.140(c)(3)(vii)) to be applied in the future. This final rule 
clarifies the area designations at Sec.  660.140(c)(1) for the 
following IFQ species: Pacific ocean perch (north of 40[deg]10' N. 
lat.), chilipepper rockfish (south of 40[deg]10' N. lat.), bocaccio 
(south of 40[deg]10' N. lat.), splitnose rockfish (south of 40[deg]10' 
N. lat.), yellowtail rockfish (north of 40[deg]10' N. lat.), cowcod 
(south of 40[deg]10' N. lat.), minor shelf rockfish complex north (of 
40[deg]10' N. lat.), minor shelf rockfish complex south (of 40[deg]10' 
N. lat.), minor slope rockfish complex north (of 40[deg]10' N. lat.), 
and minor slope rockfish complex south (of 40[deg]10' N. lat.). 
Similarly, language is revised to reflect these area designations in 
the tables at Sec.  660.140(d)(4)(i)(C) on the QS and IBQ control 
limits and at Sec.  660.140(e)(4)(i) on the vessel limits.
    In addition, NMFS is clarifying regulations at Sec.  660.140(c)(1) 
in this final rule to reference the definition of ``Groundfish'' at 
Sec.  660.11 for the list of which individual groundfish species are 
included in the minor shelf complex north and south of 40[deg]10' N. 
lat., in the minor slope complex north and south 40[deg]10' N. lat., 
and in the other flatfish complex.
VI. QS Accounts and Vessel Accounts
    With this final rule, NMFS has expanded the description of the 
operation of QS accounts and vessel accounts. NMFS has further 
clarified regulations to require designated account managers for both 
QS accounts and vessel accounts; to prohibit QP and IBQ pound transfers 
between vessel accounts from December 15 through 31 each year in order 
to allow NMFS to reconcile accounts; and to clarify that once a QS 
account transaction or vessel account transaction has been accepted by 
the transferee, the transaction will be considered final and permanent. 
In addition to these more substantive changes which are further 
described below, NMFS has made some minor changes to these regulations 
to make the QS account regulations and vessel account regulations more 
consistent with each other. For example, information on the type of 
computer access necessary to use the vessel account has been added to 
the regulations at Sec.  660.140(e), consistent with the regulations 
for the QS account.
    The proposed rule generally described QS accounts and vessel 
accounts that NMFS will use to manage QS and IBQ, and QP and IBQ 
pounds, respectively. The final rule expands upon this description, 
providing further detail of how the QS accounts and vessel accounts 
will operate. The revised paragraph describes how NMFS will manage QS 
accounts and vessel accounts, particularly with regards to how NMFS 
will issue QP and IBQ pounds each year, how NMFS will adjust QS and IBQ 
amounts if and when necessary, and the mechanics for operation of these 
accounts. Additionally, NMFS has clarified how the operation of online 
access to these accounts will function, particularly in regard to 
transfers between accounts.
    In the proposed rule (75 FR 53380, August 31, 2010), the vessel 
account regulations (Sec.  660.140(e)) specified an account manager, 
but the same requirement was not specified under the QS account 
regulations (Sec.  660.140(d)(3)). A designated account manager is 
necessary for either a QS account or a vessel account in order to 
manage the account activity in cases where the account owner is a 
business (individuals may name themselves as an account manager). 
Without a designated account manager when the account owner is a 
business, sensitive information (e.g., notices of account activity or 
the personal identification number (PIN) or password) may not get 
directed to the proper person. The designated account manager would be 
identified to NMFS through the QS permit or vessel account renewal 
process (except that for the 2011 fishery, the designated QS account 
manager may be requested by NMFS through a separate process because 
this information was not included on the initial issuance applications 
for QS permits). The designated account manager's contact information, 
such as phone number and email, would be requested. Their email 
address, while optional, provides the most flexibility and quickest 
resource for disseminating information. The designated account manager 
is an extension of what NMFS brought forward at the June 2010 Council 
meeting (Agenda Item B.6.b, Supplemental NMFS Report 3, June 2010, 
10) which stated that NMFS would issue a unique ID and PIN to 
account owners. If the account owner is not a business but is an 
individual person, the account owner would be the designated account 
manager. Because of the sensitive nature of this information and 
because account owners may be businesses, NMFS is revising language in 
this final rule to identify designated account managers and their 
contact information for QS accounts and for vessel accounts.
    There may be times when transactions in QS accounts and vessel 
accounts may need to be prohibited. As stated in the August 31st 
proposed rule for both types of accounts, ``during the year there may 
be situations where NMFS deems it necessary to prohibit transfers 
(i.e., account reconciliation, system maintenance, or for emergency 
fishery management reasons).'' In addition, the August 31st proposed 
rule stated that, for QS accounts, transactions are prohibited between 
December 1 and December 31 each year. This prohibition is intended to 
provide time for the QS account to remain stable for a period of time 
prior to the start of the next fishing year so that NMFS can issue the 
corresponding QP and IBQ pounds in to the QS account (see Council's 
June 2010 meeting, Agenda Item B.6.b, Supplemental NMFS Report 3, 
9). Upon further consideration and as the logical extension of 
what was proposed, NMFS has determined to apply a similar requirement 
to vessel accounts as that proposed for QS accounts. For vessel 
accounts, this prohibition is intended to allow time for the vessel 
account to remain stable in order to calculate any carryover provisions 
that would be applicable for the next fishing year. However, QP and IBQ 
pounds in vessel accounts need to be available as late as possible in 
the year to provide flexibility to fishermen fishing later in the year 
and to allow vessel account owners to cover deficits. Therefore, for 
vessel accounts, NMFS has adopted a shorter time for the agency to 
reconcile the account, approximately two weeks. With this final rule, 
regulations at Sec.  660.140(e) have been revised to prohibit QP and 
IBQ pound transfers between vessel accounts from December 15 through 31 
each year. This provision may be reviewed and revised through a future 
rulemaking based on experience during the first years of the program.
    NMFS has clarified in this final rule at Sec.  660.140(d)(3) and 
(e) that transactions in QS accounts or vessel accounts are final and 
permanent once the transaction is accepted by both parties. NMFS will 
not review or undo these transactions once they are accepted by both 
parties. If one of the parties feels the transaction was for the wrong 
amount, they would need to

[[Page 78363]]

resolve any dispute over the transaction on their own independently of 
NMFS, and if an adjustment is needed to resolve the dispute, would need 
to conduct another transfer. NMFS will only review transactions if an 
error is identified with NMFS' online system.
VII. Transfers of QS and/or IBQ
    The proposed rule would prohibit transfer of QS or IBQ in the first 
two years of the program except under U.S. court order as approved by 
NMFS. NMFS recognizes, however, that there may be some circumstances 
where a court may authorize the distribution of assets, including QS or 
IBQ, without a specific court order. Such a circumstance may arise as a 
result of death or dissolution of a QS owner, such as in probate or in 
a bankruptcy action. Based on public comment received, the regulations 
at Sec.  660.140(d)(3)(ii)(B)(1) have been revised in this final rule 
to allow QS and IBQ transfers during the first two years of the program 
under a U.S court order or authorization, to accommodate such 
circumstances (see Comment 29). Such transfers would still be subject 
to NMFS' approval, including a determination of the transferee's 
eligibility to own QS and a determination that the transferee's 
ownership interest would not exceed applicable control limits (see 
Comment 30).
VIII. Eligibility To Own a QS Permit
    The August 31st proposed rule (75 FR 53380) included language that 
states that eligibility to own and control a U.S. fishing vessel with a 
fishery endorsement pursuant to 46 U.S.C. 12113 is required for U.S. 
citizens, permanent resident aliens, and for corporations, 
partnerships, or other entities, in order to be eligible to own a QS 
permit. However, application of Title 46 of the U.S. Code to U.S. 
citizens or permanent resident aliens in this context is confusing. 
Under 46 U.S.C. 12113, all U.S. citizens are automatically eligible to 
own and control a U.S. fishing vessel with a fishery endorsement, thus 
the additional language is redundant. Also, under 46 U.S.C. 12113, all 
permanent resident aliens are ineligible to own and control a U.S. 
fishing vessel with a fishery endorsement, thus the additional language 
appears to effectively bar permanent resident aliens from owning a QS 
permit. In this final rule, NMFS has retained the language deemed by 
the Council in the proposed rule. However, NMFS will continue to assess 
this issue, and if appropriate, may request further consideration by 
the Council.
IX. Carryover Provision
    In the proposed rule, NMFS included a provision that would allow a 
vessel owner to cover a deficit in the vessel account with QP from the 
following year if the deficit is within the carryover limit and the 
vessel declares out of the IFQ fishery for the remainder of the year 
prior to the 30-day deadline by which a deficit would otherwise be 
required to be covered. The declaration by the vessel owner that the 
vessel opts out of the IFQ fishery for the remainder of the year would 
notify NMFS enforcement in order to delay opening an investigation for 
failure to cover the deficit within 30 days. The proposed regulation, 
however, did not specify how the vessel owner would be able to declare 
out of the fishery. In this final rule, NMFS has specified that the 
vessel owner could declare out of the IFQ fishery by a written letter 
to the NMFS Office of Law Enforcement declaring the vessel owner's 
intent to declare out of the Shorebased IFQ Program for the remainder 
of the year and invoke the carryover provision to cover the deficit. 
Because the declaration would provide evidence documenting the vessel 
owner's intent to remain out of the fishery for the remainder of the 
year, NMFS has determined that the letter from the vessel owner must be 
signed, dated, and notarized. If the deficit occurs less than 30 days 
before the end of the calendar year, declaring out of the Shorebased 
IFQ Program for the remainder of the year would not be required, 
however, the vessel owner must notify the NMFS Office of Law 
Enforcement of the owner's intent to invoke the carryover provision to 
cover the deficit. This final rule clarifies what would meet the 
carryover provision requirement for declaring out of the fishery for 
the remainder of the year.
X. IFQ First Receiver and First Receiver Site Licenses
    NMFS is revising the final rule at Sec.  660.140(j)(2)(i) and 
(j)(3) to change the regulations from ``the owner of an IFQ first 
receiver must * * * '' to ``the IFQ first receiver must * * *. '' This 
change is being made to clarify that the obligation applies to the IFQ 
first receiver, and is being made after further consideration and 
review of the record and in response to public comment (see Comment 
51).
    In addition, NMFS is revising this final rule at Sec.  660.140(f) 
to clarify the first receiver site license application process and to 
revise language to be clear that the non-interim site licenses are 
effective for one year from the date of issuance. A catch monitoring 
plan, including a written request for a site inspection, must be 
submitted with a first receiver site license application. Once NMFS 
receives the application package, NMFS will contact the applicant to 
arrange a site inspection.

C. At-Sea Coop Programs

    Some changes from the August 31st proposed rule (75 FR 53380) for 
the At-sea Coop Programs, both the MS Coop Program and the C/P Coop 
Program, resulting from items disapproved in Amendment 20 were 
discussed previously in the preamble for this final rule under ``A. All 
Trawl Programs, II. Changes due to Partial Disapproval of Amendment 
20.''
I. Effective Date of Permit Transfers and No Trip Limits
    In the proposed rule (75 FR 53380), NMFS specifically requested 
comment on the effective date for an MS/CV-endorsed limited entry 
permit's second transfer within the same year. At the September 2010 
Council meeting and in the Council's letter of public comment on the 
August 31st proposed rule, the Council stated that the second transfer 
of an MS/CV-endorsed limited entry permit should be effective 
immediately because trip limits will not apply to the at-sea sectors 
(MS or C/P) in 2011 and 2012. Based on the September 2010 Council 
meeting and on public comment received (see Comment 52), the 
regulations at Sec.  660.25(b)(4)(vi)(C) have been revised in this 
final rule to make the second transfer of an MS/CV-endorsed limited 
entry permit effective immediately. In addition, the regulations at 
Sec.  660.131(b)(3), Trip limits in the whiting fishery, have been 
clarified in this final rule to be clear that they only apply to the 
Shorebased IFQ Program.
II. At-Sea Sector Donation Program
    In the proposed rule (75 FR 53380), NMFS specifically requested 
comment on the implications of removing or retaining the at-sea sector 
donation program and requested suggested language revisions. The at-sea 
sector donation program was an optional provision in the August 31st 
proposed rule regulations at Sec.  660.131(g), where it was called the 
``bycatch reduction and full utilization program for at-sea 
processors.'' This program was previously established to allow vessels 
harvesting unsorted catch in the at-sea sectors to retain and donate 
amounts of groundfish that were in excess of trip limits. At the 
September 2010 Council meeting, the Council clarified that the at-sea 
sector regulations should not require vessels to be subject to trip

[[Page 78364]]

limits for bycatch of non-whiting groundfish species. Therefore, the 
donation program is no longer necessary. Based on the September 2010 
Council meeting and on public comment received which supported removal 
of donation program (see Comment 53), the proposed rule regulations at 
Sec.  660.131(g) have been removed in this final rule.
III. MS Coop Program Processor Obligation for 2011
    In this final rule, NMFS is revising regulations for the timing of 
the processor obligation provision in the MS Coop Program for 2011. The 
regulations specifying coop agreement contents for the MS Coop Program 
include a clause stating that each MS/CV-endorsed permit must have 
notified a specific MS permit by September 1 of the previous year of 
that MS/CV-endorsed permit's intent to obligate its catch history 
assignment to that MS permit in that year. Because these regulations 
will not be effective until after September 1, 2010, this clause must 
be adjusted for application to the 2011 fishery. This final rule 
revises the regulations at Sec.  660.150(d)(1)(iii)(A)(1)(iii) to 
require a coop agreement to include ``[a] processor obligation clause 
indicating that each MS/CV-endorsed permit has notified a specific MS 
permit by September 1 of the previous year of that MS/CV-endorsed 
permit's intent to obligate its catch history assignment to that MS 
permit, except that for the 2011 fishery, such notification must have 
been made prior to submission of the MS coop permit application.''
IV. Minor Edits
    NMFS has made some minor edits to the regulations to make 
references in the regulatory text consistent. Specifically, this final 
rule revises language to make references in Sec.  660.25(e)(1) and (2) 
consistent with the categories in the paragraph headers at Sec.  
660.150 for MS coop permits and Sec.  660.160 for the C/P coop permit. 
The revised language removes references to ``renewal'' and ``change of 
permit ownership'' because these provisions do not apply to coop 
permits. In addition, the regulations at Sec.  660.111, ``accumulation 
limit'' (2)(i), is revised to clarify that the MS permit usage limit 
only applies to a person ``owning an MS permit.''

Classification

    The NMFS Assistant Administrator has determined that this final 
rule is consistent with the Pacific Coast Groundfish FMP, other 
provisions of the MSA, and other applicable law. To the extent that the 
regulations in this final rule differ from what was deemed by the 
Council, NMFS invokes its independent authority under 16 U.S.C. 
1855(d).
    NMFS and the Council prepared final environmental impact statements 
(EISs) for Amendment 20 and for Amendment 21 to the Pacific Coast 
Groundfish FMP. A notice of availability was published on June 25, 2010 
(75 FR 36386). In partially approving FMP Amendments 20 and 21 on 
August 9, 2010, NMFS issued a Record of Decision (ROD) for each 
amendment identifying the selected alternatives. Copies of the RODs are 
available from NMFS (see ADDRESSES).
    NMFS finds good cause to waive the 30-day delay in effectiveness 
pursuant to 5 U.S.C. 553(d)(3), so that this final rule may become 
effective January 1, 2011. The trawl rationalization program has been 
developed through the public fishery management council process since 
2003 and has culminated in multiple rulemakings over the fall of 2009 
through 2010. NMFS announced through the Pacific Fishery Management 
Council process and through these rulemakings its intent to implement 
this program on January 1, 2011. The public has been aware of this 
implementation date. In addition, NMFS has conducted numerous outreach 
workshops along the West Coast over the fall of 2010 to assist the 
affected public in preparing for January 1, 2011 implementation (see 
response to comment 5 in the preamble). NMFS has also provided outreach 
specifically to the shorebased IFQ first receivers for the new 
requirements under the program and also provided an interim first 
receiver site license with a shortened issuance process in order to 
facilitate implementation on January 1. In addition, NMFS provided 
preliminary guidance during the fall of 2010 to assist first receivers 
in preparing their catch monitoring plans in anticipation of a January 
1, 2011 implementation.
    NMFS has determined it is critical to the fishery to implement this 
program on January 1, 2011, the start of the fishing year. The program 
creates a system where participants can choose when to fish during the 
year, giving them ample time to harvest their available catch and to 
come into compliance with these regulations. Under the Shorebased IFQ 
Program, fishermen can choose when to fish between January 1 and 
December 15 every year. Under the At-Sea Coop Programs, fishermen can 
choose when to fish after their season opens in the spring through 
December every year. Thus, the program provides fishermen with more 
individual choice on when to fish than the two-month cumulative limit 
system that was in place before the trawl rationalization program. 
Delaying the effectiveness of this rule and beginning January 1 with 
the two-month cumulative limit system in place prior to implementing 
the trawl rationalization program would be confusing to the public, 
would cause problems in the fishery, and would be contrary to the 
public good. If the trawl fishery starts the year with two-month 
cumulative limits, the fleet could catch up to the available trip 
limits for some groundfish species, which could create an incentive for 
participants to fish as much as possible at the start of the year, 
especially if the participant knew they did not receive much initial 
allocation of certain groundfish species. There would then be a lag 
time of up to several months before the landings data would be 
available to determine the remaining amount of catch available to the 
trawl fishery to start the trawl rationalization program. There is 
likelihood that some species could have little or no harvest remaining 
for the trawl rationalization program in 2011. Thus, a delay in the 
effectiveness of the program could require unnecessarily restrictive 
measures later in the year, including possible fishery closures, to 
make up for harvest that would be allowed under the two-month 
cumulative limits at the start of the year. In addition, it would be 
confusing to the public to have two different systems of regulations 
including, but not limited to, different harvest limits, observer 
requirements, permit requirements, and reporting requirements. These 
reasons constitute good cause under authority contained in 5 U.S.C. 
553(d)(3), to establish an effective date less than 30 days after date 
of publication.
    This final rule has been determined to be significant for purposes 
of Executive Order 12866.
    The preamble to the proposed rule (75 FR 53380, August 31, 2010) 
included a detailed summary of the analyses contained in the IRFA. 
NMFS, pursuant to section 604 of the Regulatory Flexibility Act (RFA) 
prepared a FRFA in support of this rule. The FRFA incorporates the 
IRFA, a summary of the significant issues raised by the public comments 
in response to the IRFA, and NMFS's responses to those comments. A copy 
of the FRFA is available from NMFS (see ADDRESSES) and a summary of the 
FRFA follows:
    The Council prepared two EIS documents: Amendment 20--
Rationalization of the Pacific Coast Groundfish Limited Entry Trawl 
Fishery, which creates the structure and management details of the 
trawl fishery

[[Page 78365]]

rationalization program; and Amendment 21--Allocation of Harvest 
Opportunity Between Sectors of the Pacific Coast Groundfish Fishery, 
which allocates the groundfish stocks between trawl and non-trawl 
fisheries. Each of the two EIS's prepared by the Council provide 
economic analyses of the Council's preferred alternatives and draft RIR 
and IRFAs (DEIS IRFAs). The DEIS IRFAs were updated and combined into a 
single RIR/IRFA for use with the ``initial issuance'' proposed rule 
that was published on June 10, 2010 (75 FR 32994) (June 10th PR IRFA). 
The June 10th PR IRFA reviewed and summarized the benefits and costs, 
and the economic effects of the Council's recommendations as presented 
in the two EIS's. In addition, the June 10th PR IRFA contained 
additional information on characterizing the participants in the 
fishery and on the tracking and monitoring costs associated with this 
program.
    The June 10th PR IRFA analyzed the overall program as recommended 
by the Pacific Fishery Management Council. The analysis encompassed 
aspects of the initial issuance rule which establishes the allocations 
set forth under Amendment 21 and procedures for initial issuance of 
permits, endorsements, quota shares, and catch history assignments 
under the IFQ and coop programs. It also encompassed this rule--the 
``program components'' rule which provides additional details, 
including: Program components applicable to IFQ gear switching, 
observer programs, retention requirements, equipment requirements, 
catch monitors, catch weighing requirements, coop permits/agreements, 
first receiver site licenses, quota share accounts, vessel accounts, 
further tracking and monitoring components, and economic data 
collection requirements. Revenue and landings data in the RIR/IRFA for 
the program components proposed rule (75 FR 53380, August 31, 2010) 
(August 31st PR IRFA) were updated based on recent analysis by the 
Council (Appendix F: Historical Landings and Revenue in Groundfish 
Fisheries; Agenda Item B.3.a, Attachment 3, June 2010). The Council 
analysis provided revenue trends based on inflation adjusted dollars 
where estimates are adjusted to current (2009) dollars. The August 31st 
PR IRFA was also revised based on comments received on the initial 
issuance rule and included a discussion of the other alternatives 
considered by the Council.
    Although other alternatives were examined, the FRFA focused on the 
two key alternatives--the No-Action Alternative and the Preferred 
Alternative. The EISs include an economic analysis of the impacts of 
all the alternatives and the August 31st PR IRFA and the FRFA 
incorporate this analysis. For the Amendment 20 EIS, the alternatives 
ranged from status quo (no action), to IFQ for all trawl sectors, IFQ 
for the non-whiting sector and coops for all whiting sectors, and IFQ 
for the shorebased sector and coops for the at-sea sectors (preferred). 
Various elements were part of each of these alternatives and varied 
among them, including initial qualifications and allocations, 
accumulation limits, grandfathering, processor shares, species covered, 
number of sectors, adaptive management, area management, and carryover 
provisions. The preferred alternative was a blending of components from 
the other alternatives analyzed in the EIS. For the Amendment 21 EIS, 
alternatives were provided for 6 decision points: (1) Limited entry 
trawl allocations for Amendment 21 species, (2) shoreside trawl sector 
allocations, (3) trawl sector allocations of trawl-dominant overfished 
species, (4) at-sea whiting trawl sector set-asides, (5) Pacific 
halibut total bycatch limits, and (6) formal allocations in the FMP. 
For most of these decision points, the alternatives within them were 
crafted around approximately maintaining historical catch levels by the 
sectors or, in some cases, increasing opportunity for the non-trawl 
sector.
    By focusing on the two key alternatives in the August 31st PR IRFA 
and in the FRFA (no action and preferred), it encompasses parts of the 
other alternatives and informs the reader of these regulations. The 
analysis of the no action alternative describes what is likely to occur 
in the absence of the proposed action. It provides a benchmark to 
compare the incremental effects of the action. Under the no action 
alternative, the current, primary management tool used to control the 
Pacific coast groundfish trawl catch includes a system of two month 
cumulative landing limits for most species and season closures for 
Pacific whiting. This management program would continue under the no 
action alternative. Only long-term, fixed allocations for Pacific 
whiting and sablefish north of 36[deg] N. lat. would exist. All other 
groundfish species would not be formally allocated between the trawl 
and non-trawl sectors. Allocating the available harvest of groundfish 
species and species complexes would occur in the Council process of 
deciding biennial harvest specifications and management measures and, 
as such, would be considered short term allocations.
    The analysis of the preferred alternative describes what is likely 
to occur as a result of the action. Under the preferred alternative, 
the existing shorebased whiting and shorebased non-whiting sectors of 
the Pacific Coast groundfish limited entry trawl fishery would be 
managed as one sector under a system of IFQs, and the at-sea whiting 
sectors of the fishery (i.e., catcher-processor sector and mothership 
sector, which includes motherships and catcher vessels) would be 
managed under a system of sector-specific harvesting cooperatives 
(coops). The catcher-processor sector would continue to operate under 
the existing, self-developed coop program entered into voluntarily by 
that sector. A distinct set of groundfish species and Pacific halibut 
would be covered by the rationalization program. Amendment 20 would 
include a tracking and monitoring program to assure that all catch 
(including discards) would be documented and matched against QP. The 
Council specified that observers would be required on all vessels and 
shorebased monitoring (catch monitors) would be required during all 
off-loading (100 percent coverage). Compared to status quo monitoring, 
this would be a monitoring and observer coverage level increase for a 
large portion of the trawl fleet, particularly for non-whiting 
shorebased vessels.
    The limited entry trawl fishery is divided into two broad sectors: 
a multi-species trawl fishery, which most often uses bottom trawl gear 
(hereafter called the non-whiting fishery), and the Pacific whiting 
fishery, which uses midwater trawl gear. Over the 2005-2009 period, 
these fisheries when combined have average annual inflation adjusted 
revenues of about $57 million and total landings of about 215,000 tons. 
The non-whiting fishery has been principally managed through 2-month 
cumulative landing limits along with closed areas to limit overfished 
species bycatch. Fishery participants target the range of species 
described above with the exception of Pacific whiting. By weight, the 
vast majority of trawl vessel groundfish is caught in the Pacific 
whiting fishery. In contrast, the non-whiting fishery accounts for the 
majority of limited entry trawl fishery ex-vessel revenues. On average, 
for the period 2005-2009, Pacific whiting accounted for about 90 
percent of the quantity of groundfish landed in the limited entry trawl 
fishery, but only 44 percent of the value due to their relatively low 
ex-vessel price.

[[Page 78366]]

    Non-whiting trawl vessels deliver their catch to shoreside 
processors and buyers located along the coasts of Washington, Oregon, 
and California, and tend to have their homeports located in towns 
within the same general area where they make deliveries, though there 
are several cases of vessels delivering to multiple ports during a 
year. Some Pacific whiting trawl vessels are catcher-processors, which, 
as their name implies, process their catch on-board, while other 
vessels in this sector deliver their catch to shoreside processors or 
motherships that receive Pacific whiting for processing but do not 
directly harvest the fish.
    Over time, landings in the limited entry trawl fishery have 
fluctuated, especially on a species-specific basis. Pacific whiting has 
grown in importance, especially in recent years. Through the 1990s, the 
volume of Pacific whiting landed in the fishery increased. In 2002 and 
2003, landings of Pacific whiting declined due to information showing 
the stock was depleted and the subsequent regulations that restricted 
harvest in order to rebuild the species. Over the years 2005-2009, 
estimated Pacific whiting ex-vessel revenues averaged about $25 million 
(figures have been adjusted to 2009 dollars to account for inflation). 
In 2008, these participants harvested about 216,000 tons of whiting 
worth about $51 million in ex-vessel revenues, based on shorebased ex-
vessel prices of $235 per ton, the highest ex-vessel revenues and 
prices on record. In comparison, the 2007 fishery harvested about 
214,000 tons worth $29 million at an average ex-vessel price of about 
$137 per ton while the 2009 non-tribal fishery harvested about 99,000 
tons worth about $12 million at a price of $120 per ton.
    While the Pacific whiting fishery has grown in importance in recent 
years, harvests in the non-whiting component of the limited entry trawl 
fishery have declined steadily since the 1980s. Non-whiting trawl ex-
vessel revenues (adjusted for inflation) in the fishery peaked in the 
mid 1990s at about $40 million. Following the passage of the 
Sustainable Fisheries Act (1996) and the listing of several species as 
overfished, harvests became increasingly restricted and landings and 
revenues declined steadily until 2002. Over the period 2005 to 2009, 
inflation adjusted ex-vessel revenues from groundfish in the non-
whiting trawl sector have averaged $27 million annually; ranging from 
$24 million (2005) to $32 million (2008). The 2009 fishery earned $30 
million in ex-vessel revenues. Under the trawl rationalization program, 
shorebased whiting sector will be joined with the shorebased non-
whiting sector. For perspective, when these fisheries are combined, 
their total ex-vessel revenues have averaged about $36 million annually 
over the last five years.

Expected Effects of Amendment 21--Intersector Allocation

    The allocation of harvest opportunity between sectors under the new 
regulations (75 FR 60868, October 1, 2010) does not differ 
significantly from the allocation made biennially under the no action 
alternative. The primary economic effect of the long-term allocation 
under the new regulations is to provide more certainty in future trawl 
harvest opportunities, which would enable better business planning for 
participants in the rationalized fishery. As described elsewhere, the 
trawl rationalization program could create an incentive structure and 
facilitate more comprehensive monitoring to allow bycatch reduction and 
effective management of the groundfish fisheries. In support of the 
trawl rationalization program, the main socioeconomic impact of 
Amendment 21 allocations is longer term stability for the trawl 
industry. While the preferred Amendment 21 allocations do not differ 
significantly from status quo ad hoc allocations made biennially, there 
is more certainty in future trawl harvest opportunities, which enables 
better business planning for participants in the rationalized fishery. 
This is the main purpose for the Amendment 21 actions. The economic 
effects of Amendment 21 arise from the impacts on current and future 
harvests. The need to constrain groundfish harvests to address 
overfishing has had substantial socioeconomic impacts. The groundfish 
limited entry trawl sector has experienced a large contraction, spurred 
in part by a partially federally-subsidized vessel and permit buyback 
program implemented in 2005. This $46 million buyback program was 
financed by a Congressional appropriation of $10 million and an 
industry loan of $36 million. Approximately 240 groundfish, crab, and 
shrimp permits were retired from state and federal fisheries, and there 
was a 35 percent reduction in the groundfish trawl permits. To repay 
the loan, groundfish, shrimp and crab fisheries are subject to landings 
fees. Follow-on effects of the buyback have been felt in coastal 
communities where groundfish trawlers comprise a large portion of the 
local fleet. As the fleet size shrinks and ex-vessel revenues decline, 
income and employment in these communities is affected. Fishery-related 
businesses in the community may cease operations because of lost 
business. This can affect non-groundfish fishery sectors that also 
depend on the services provided by these businesses, such as providing 
ice and buying fish. An objective to the trawl rationalization program 
is to mitigate some of these effects by increasing revenues and profits 
within the trawl sector. However, because further fleet consolidation 
is expected, the resulting benefits are likely to be unevenly 
distributed among coastal communities. Some communities may see their 
groundfish trawl fleet shrink further as the remaining vessels 
concentrate in a few major ports. Species subject to Amendment 21 
allocations would be: lingcod, Pacific cod, sablefish south of 36[deg] 
N. lat., Pacific ocean perch, widow rockfish, chilipepper rockfish, 
splitnose rockfish, yellowtail rockfish north of 40[deg] 10' N. lat., 
shortspine thornyhead (north and south of 34[deg] 27' N. lat.), 
longspine thornyhead north of 34[deg] 27' N. lat., darkblotched 
rockfish, minor slope rockfish (north and south of 40[deg] 10' N. 
lat.), Dover sole, English sole, petrale sole, arrowtooth flounder, 
starry flounder, and Other Flatfish. While the preferred Amendment 21 
allocations of these species do not differ significantly from status 
quo ad hoc allocations made biennially, there is more certainty in 
future trawl harvest opportunities, which enables better business 
planning for participants in the rationalized fishery. This is the main 
purpose for the Amendment 21 actions.
    Based on ex-vessel revenue projections, Table 4-18 (ISA DEIS) shows 
the potential 2010 yield to trawl and non-trawl (including 
recreational) sectors under the Amendment 21 alternatives and the 
potential 2010 value of alternative trawl allocations. Under the status 
quo option Alternative 1, the projected ex-vessel value of the trawl 
allocation is $56 million while the projected ex-vessel value of the 
Council's preferred alternative is $54 million, indicating a potential 
increase to the non-trawl sectors and a potential decrease to the trawl 
sector.
    In addition to the species above, halibut would also be 
specifically allocated to the trawl fishery. The proposed regulations 
include a halibut trawl bycatch reduction program in phases to provide 
sufficient time to establish a baseline of trawl halibut bycatch and 
for harvesters to explore methods (e.g., adjustments to time and/or 
area fished, gear modifications) to reduce halibut bycatch and bycatch 
mortality. Pacific halibut are currently not allowed to be retained in 
any U.S. or Canadian trawl fisheries per the policy of the IPHC. The 
Council's intent on setting a total catch limit of Pacific

[[Page 78367]]

halibut in Area 2A trawl fisheries is to limit the bycatch and 
progressively reduce the bycatch to provide more benefits to directed 
halibut fisheries. The program establishes a limit for total Pacific 
halibut bycatch mortality (legal-sized and sublegal fish) through the 
use of an individual bycatch quota in the trawl fishery. The initial 
amount for the first four years of the trawl rationalization program 
would be calculated by taking 15 percent of the Area 2A Total Constant 
Exploitation Yield (CEY) as set by the IPHC for the previous year, not 
to exceed 130,000 lbs per year for total mortality. For example, if the 
trawl rationalization program went into effect in 2013, the trawl 
halibut IBQ would be set at 15 percent of the Area 2A CEY adopted for 
2012 or 130,000 lbs per year, whichever is less, for each year from 
2013 through 2016 (years 1 through 4 of the program). Beginning with 
the fifth year of implementation, the maximum amount set aside for the 
trawl rationalization program would be reduced to 100,000 lbs per year 
for total mortality. This amount may be adjusted through the biennial 
specifications process for future years.
    Currently there are no total catch limits of Pacific halibut 
specified for the west coast trawl fishery. Trawl bycatch of Pacific 
halibut, therefore, does not limit the trawl fishery. A phased in, 
halibut bycatch reduction program, would provide sufficient time to 
establish a baseline of trawl halibut bycatch under the new 
rationalization program and for harvesters to explore methods (e.g., 
adjustments to time and/or area fished, gear modifications) to reduce 
both halibut bycatch and bycatch mortality. By limiting the bycatch of 
Pacific halibut in the LE trawl fisheries, Amendment 21 would control 
bycatch and could provide increased benefits to Washington, Oregon, and 
California fishermen targeting Pacific halibut. Reducing the trawl 
limit would also provide more halibut to those who participate in the 
directed tribal, commercial and recreational halibut fisheries.

Effects of Amendment 20--Trawl Rationalization

    An overall comprehensive model that simultaneously captures changes 
in fishermens' behavior, changes in the markets, and changes in 
communities was not feasible because of lack of data and empirical 
analyses that show needed relationships. Instead, a set of models 
designed to focus on specific issues was developed. For example, models 
were used to: analyze the effects of the initial allocation of QS in 
the trawl IFQ program; project geographic shifts in fishery patterns; 
and illustrate the potential for reducing bycatch, increasing target 
catch, and increasing revenues. To illustrate the benefits of the IFQ 
program, a model projecting the expected amount of fleet consolidation 
in the shorebased non-whiting fishery was developed. This model 
illustrated the potential for the fleet to reduce bycatch and 
potentially increase the amount of target species harvested. This model 
was primarily based on bycatch reduction experiences in the Pacific 
whiting fishery and under an Exempted Fishing Permit carried out in the 
arrowtooth flounder fishery. The model accounted for the fact that 
trawlers harvest many species (multiple outputs). The model also used 
fish ticket data and the data from the recently completed West Coast 
Limited Entry Cost Earnings Survey sponsored by the NMFS Northwest 
Fisheries Science Center. (For the other sectors, similar models could 
not be developed because the appropriate cost data was unavailable.)
    Estimates of potential economic benefits were generated based on 
the predicted harvesting practices from the first step analysis. 
Because the west coast non-whiting groundfish fishery is not a derby 
fishery, it is expected that economic benefits will come through cost 
reductions and increased access to target species that arise from 
modifications in fishing behavior (overfished species avoidance). The 
key output of this analysis was an estimate of post-rationalization 
equilibrium harvesting cost.
    Changes in harvesting costs can arise from three sources. First, 
the total fixed costs incurred by the groundfish trawl fleet change as 
the size of the fleet changes. Since many limited entry trawlers incur 
annual fixed costs of at least $100,000, reductions in fleet size can 
result in substantial cost savings. In other words, a fewer number of 
vessels in the fishery will lead to decreased costs through a decrease 
in annual fixed costs. Second, costs may change as fishery 
participation changes and no longer incur diseconomies of scope (such 
as the costs of frequently switching gear for participating in multiple 
fisheries). Third, costs may change as vessels are able to buy and sell 
quota to take advantage of economies of scale and operate at the 
minimum point on their long-run average cost curve (i.e. the strategy 
that minimizes the cost of harvesting).
    The major conclusions of this model suggested that (with landings 
held at 2004 levels), the current groundfish fleet (non-whiting 
component) which consisted of 117 vessels in 2004, will be reduced by 
roughly 50 percent to 66 percent, or 40-60 vessels under an IFQ 
program. The reduction in fleet size implies cost savings of $18-$22 
million for the year 2004 (most recent year of the data). Vessels that 
remain active will, on average, be more cost efficient and will benefit 
from economies of scale that are currently unexploited under controlled 
access regulations in the fishery. The cost savings estimates are 
significant, amounting to approximately half of the costs incurred 
currently, suggesting that IFQ management may be an attractive option 
for the Pacific coast groundfish fishery. Assuming a 10 percent annual 
return to the vessel capital investment, estimates indicate that the 
2004 groundfish fleet incurred a total cost of $39 million. The PacFIN 
data indicate fleetwide revenue (this includes groundfish, crab, and 
other species) at roughly $36 million in 2004, and, therefore, fleet 
wide losses of about $3 million occurred in 2004. Based on a lower 5 
percent return to vessel capital, the results suggest that the 
groundfish fleet merely broke even in 2004; i.e., dockside revenues 
were offset by the fleetwide harvesting costs. The results also suggest 
a switch from the current controlled access management program to IFQs 
could yield a significant increase in resource rents in the Pacific 
coast groundfish fishery. For instance, the analysis finds that the 
2004 groundfish catch generated zero resource rent. Instead, it could 
have yielded a substantial positive rent of about $14 million.
    As the model was based on the 2004 fishery, it may be useful to 
show current trends in the fishery. In 2004, the shorebased non-whiting 
trawl fishery generated about $21 million in groundfish ex-vessel 
revenues (inflation adjusted). But according to cost estimates 
discussed above, this fishery was at best breaking even or perhaps 
suffering a loss of up to $2 million. Since 2004, shorebased non-
whiting trawl fisheries have increased their revenues to about $30 
million. The increase in shorebased revenues have come from increased 
landings of flatfish and sablefish and significant increase in 
sablefish ex-vessel prices. Sablefish now accounts for almost 40 
percent of the trawl fleet's revenues. While revenues were increasing, 
so were fuel prices. Fuel costs now account for approximately 30 to 40 
percent of the vessels' revenues. The average 2005-2009 revenues were 
about $27 million, or 29 percent greater than 2004. The average 2005-
2009 fuel price was about $2.81 per gallon, 70 percent greater than

[[Page 78368]]

that of 2004. Therefore, it appears that the profitability of the 2009 
fishery may not be that much improved over that of 2004.
    Ex-vessel revenues for the non-whiting sector of the limited entry 
trawl fishery are projected to be approximately $30-40 million per year 
under the preferred alternative, compared to $22-25 million under the 
no action alternative. These projections yield a potential range in 
increased revenues of 20 to 80 percent. This revenue increase is 
expected to occur in a rationalized fishery, because target species 
quotas can be more fully utilized. Currently, in the non-whiting 
sector, cumulative landing limits for target species have to be set 
lower because the bycatch of overfished species cannot be directly 
controlled. Introducing accountability at the individual vessel level 
by means of IFQs provides a strong incentive for bycatch avoidance 
(because of the actual or implicit cost of quota needed to cover 
bycatch species) and prevents the bycatch of any one vessel from 
affecting the harvest opportunities of others. In addition, under the 
preferred alternative, the non-whiting sector would have control over 
harvest timing over the whole calendar year. Non-whiting harvesters 
currently operate under 2-month cumulative landing limits, which allow 
greater flexibility in terms of harvest timing between 2-month periods 
but less flexibility within periods (because any difference between 
actual limits and the period limit cannot be carried over to the next 
period). In contrast, under the IFQ program harvesters will have 
control over harvest timing over the whole calendar year. However, in 
terms of any influence on price, this increased flexibility is unlikely 
to have a noticeable effect. Finally, the ability for vessels managed 
under IFQs to use other types of legal groundfish gear could allow some 
increases in revenue by targeting higher-value line or pot gear caught 
fish. This opportunity would mainly relate to sablefish, which are 
caught in deeper water, rather than nearshore species where state level 
regulatory constraints apply.
    Costs for the non-whiting sector of the limited entry trawl fishery 
are expected to decrease under the preferred alternative because of 
productivity gains related to fleet consolidation. Productivity gains 
would be achieved through lower capital requirements and a move to more 
efficient vessels. Operating costs for the non-whiting sector are 
predicted to decrease by as much as 60 percent annually. Based on 
estimates of current costs, this percentage decrease represents a $13.8 
million cost reduction relative to the no action alternative.
    The accumulation limits considered under the preferred alternative 
are not expected to introduce cost inefficiencies in the non-whiting 
sector, provided that current prices and harvest volumes do not 
decrease. However, the preferred alternative would impose new costs on 
the non-whiting sector that would not be incurred under the no action 
alternative. First, a landings fee of up to 3 percent of the ex-vessel 
value of fish harvested would be assessed under the preferred 
alternative to recover management costs, such as maintenance of the 
system of QS accounts. Second, new at-sea observer requirements would 
be introduced, and vessels would have to pay the costs of complying 
with these requirements, estimated at $500 a day if independent 
contractors are hired. The daily observer cost could place a 
disproportionate adverse economic burden on small businesses because 
such costs would comprise a larger portion of small vessels costs than 
that of larger vessels.
    The increase in profits that commercial harvesters are expected to 
experience under the preferred alternative may render them better able 
to sustain the costs of complying with the new reporting and monitoring 
requirements. The improved harvesting cost efficiency under the 
preferred alternative may allow the non-whiting sector to realize 
profits of $14-23 million compared to $0 or less under the no action 
alternative. In addition, a provision that allows vessels managed under 
the IFQ program to use other legal gear (gear switching) would allow 
sablefish allocated to the trawl sector to be sold at a higher price 
per pound, possibly contributing to increased profits. The imposition 
of accumulation limits could reduce the expected increase in the 
profitability of the non-whiting sector by restricting the amount of 
expected cost savings, and the costs of at-sea observers may reduce 
profits by about $2.2 million, depending on the fee structure. However, 
the profits earned by the non-whiting sector would still be 
substantially higher under the preferred alternative than under the no 
action alternative.
    New entrants are likely to face a barrier to entry in the Pacific 
coast groundfish limited entry trawl fishery in the form of the cost of 
acquiring QS (or a coop share in the case of the at-sea whiting 
sector). This disadvantages them in comparison to those entities that 
receive an initial allocation of harvest privileges. Small entities may 
be particularly disadvantaged to the degree that they may find it more 
difficult to finance such quota purchases. Among the goals the Council 
identified for the adaptive management program was to use the reserved 
non-whiting QS to facilitate new entry into the fishery. In addition, 
the Council identified, as a trailing action, a framework to allow the 
establishment and implementation of Community Fishing Associations as 
part of the adaptive management program. These entities could 
facilitate entry into the fishery by leasing QS at below market rates, 
thereby leveling the playing field in terms of costs between initial 
recipients of QS and new entrants.
    The incremental effects of the preferred alternative on buyers and 
processors of trawl caught groundfish are detailed in Sections 4.9-4.10 
of the Rationalization of the Amendment 20 Pacific Coast Groundfish 
Limited Entry Trawl Fishery DEIS. Even though processors may have to 
pay fishermen higher ex-vessel prices, processors may see cost savings 
under the preferred alternative to the degree that rationalization 
allows greater processors and fishermen greater ability to plan the 
timing, location, and species mix of landings. Processors could use 
current plant capacity more efficiently, because available information 
suggests that processing facilities are currently underutilized. Fleet 
consolidation in the non-whiting sector could also provide cost savings 
for processors if landings occur in fewer locations, thereby reducing 
the need for facilities and/or transport. The preferred alternative 
would also impose new costs on processors that would not be incurred 
under the no action alternative. Processors would be required to pay 
some or all of the costs of plant monitors, who would verify landings. 
Similar to at-sea observers, these monitors would be independent 
contractors rather than direct employees of the processing firm.
    In the non-whiting processing industry, harvest volumes may 
increase because of a decrease in constraining species bycatch and a 
subsequent increase in under-utilized target species catch. This boost 
in target species catch may increase utilization of processing capital 
and processing activity. (It should be noted that if under the current 
system bycatch has been underreported, with 100 percent observer 
coverage under the new system, the gains in increased target catches 
may be less than expected.) Consequently, the possibility of capital 
consolidation in the non-whiting shorebased sector may be less than in 
the shore-based whiting sector.

[[Page 78369]]

However, shifts in the distribution of landings across ports as a 
result of fleet consolidation, industry agglomeration, and the 
comparative advantage of ports (a function of bycatch rates in the 
waters constituting the operational area for the port, differences in 
infrastructure, and other factors) could lead to consolidation in 
processing activity at a localized or regional scale and an expansion 
in processing activity elsewhere. To mitigate harm to adversely 
impacted non-whiting shoreside processors, the adaptive management 
program provides a mechanism to distribute non-whiting QS to 
processors, thereby ensuring that some processors receive greater 
landings of groundfish than would otherwise be the case.
    As noted above, the preferred alternative may reduce the power of 
non-whiting shoreside processors to negotiate ex-vessel prices with 
harvesters. The larger harvest volume due to bycatch avoidance may 
lower processor average costs, which could offset the negative effects 
on non-whiting shoreside processors of a shift in bargaining power. In 
addition, QS could be purchased by processors over the long term, 
thereby increasing processors' negotiation power. However, the 
accumulation limits included in the preferred alternative would limit 
the ability of processors to purchase substantial quantities of QS. 
Alternatively, the adaptive management provision could be used to 
allocate QS to non-whiting shoreside processors, thereby providing them 
additional leverage when negotiating terms with harvesters.
    The allocation of 20 percent of the initial shorebased whiting QS 
to the shoreside processor portion of the groundfish fishery would give 
these processors more influence in negotiations over ex-vessel prices 
and would tend to offset the gains in bargaining power for harvesters. 
For example, a processor could use QS to induce a harvester that is 
short of quota pounds for a Pacific whiting trip to make deliveries 
under specified conditions and prices. However, because of a reduction 
in peak harvest volume, fewer processing companies and/or facilities 
may be necessary to handle harvest volumes of Pacific whiting, meaning 
some companies may find themselves without enough product to continue 
justifying processing operations of Pacific whiting. Revenues from 
harvesting and processing trawl-caught groundfish are expected to 
increase. Revenues in the non-whiting trawl sector are projected to 
increase by 20 to 80 percent in a rationalized fishery, depending on 
bycatch rate reductions and stock status. Revenue increases are mainly 
expected because under rationalized fisheries, target species quotas 
can be more fully utilized. Currently, in the non-whiting sector, 
cumulative landing limits for target species have to be set lower 
because the bycatch of overfished species cannot be directly 
controlled. Introducing accountability at the individual vessel level 
provides a strong incentive for bycatch avoidance (because of the 
actual or implicit cost of quota needed to cover bycatch species) and 
prevents the bycatch of any one vessel from affecting the harvest 
opportunity of others. Whiting fisheries are more directly managed 
through quotas, and in recent years, by limits on bycatch. Beginning in 
2009, bycatch limits have been established for each of the three 
whiting sectors. For the shore-based and mothership whiting sectors, 
the fishery can potentially close before the whiting allocation is 
fully harvested because a bycatch cap is reached. (The catcher-
processor sector currently operates as a voluntary co-op and is 
therefore better able to coordinate harvest strategy to avoid reaching 
bycatch limits.) However, in general, the whiting sectors have been 
able to harvest their sector allocations. Whiting vessels could 
increase revenues due to improved product recovery as a result of the 
ability to better control harvest timing. As mentioned above, the 
ability for vessels managed under IFQs to use other types of legal 
groundfish gear could allow some increases in revenue by targeting 
higher-value line or pot gear caught fish.
    Harvester and possibly processor costs are expected to decrease 
because of productivity gains related to fleet consolidation. Cost 
savings would be due to lower capital requirements and a move to more 
efficient vessels in the non-whiting sector. Costs are predicted to 
decrease by as much as 60 percent annually, which based on estimates of 
current operating costs would represent a $13.8 million decrease. 
Similar levels of consolidation are expected for shorebased and 
mothership catcher vessels. Proposed mitigation measures could reduce 
these costs savings. For example, a 1 percent quota share accumulation 
limit could reduce cost savings by as much as 20 percent. But the 
accumulation limits considered in the alternatives are not expected to 
introduce higher costs at current prices and harvest volume. The 
proposed action would introduce some new costs. First, up to 3 percent 
of the value of landings may be assessed to cover administrative and 
management costs. Second, new at-sea observer requirements would be 
introduced and vessels would have to pay the cost, estimated at $350-
$500 a day.
    Processors may see cost-savings to the degree that rationalization 
allows greater control over the timing and location of landings. 
Processors could use current plant capacity more efficiently, because 
available information suggests that processing facilities are currently 
underutilized. Fleet consolidation could also drive some cost savings 
on the part of processors if landings occur in fewer locations. This 
would reduce the need for facilities and/or transport. Under the 
proposed action, processors would be required to pay the costs of plant 
monitors, who would verify landings. These monitors would not be 
directly employed by the processing firm but, similar to at-sea 
observers, be independent contractors.
    Rationalization of the groundfish trawl sector is expected to free 
up capital and labor because of increases in productivity. (Since the 
basic input, trawl-caught fish, is subject to an underlying constraint 
due to biological productivity, increases in labor and capital 
productivity are expected to reduce the amount of those inputs needed.) 
However, from a national net benefit perspective these effects are 
neutral since capital and labor can be put to some productive use 
elsewhere in the broader economy. Also, current groundfish fishery 
participants that receive QS (trawl limited entry trawl permit holders 
and eligible shoreside processors) are compensated to the degree that 
the asset value of the QS covers capital losses.
    The Amendment 20 DEIS IRFA presents an explicit range of costs 
based on different daily observer cost rates. What follows is a summary 
of those estimates--these estimates are focused on the shorebased non-
whiting fishery so that it is compared to the results of the NWFSC 
economic model of this fishery. After a transition period, for the 
shorebased fishery, the initial estimates of the annual federal and 
state agency costs to run this program are about $5 million; and after 
the transition period, these costs could fall to $4.0 million. Based on 
the observer cost of $500 per day, the annual costs to the vessel of 
observer monitoring is about $4 million. Based on $350 per day, the 
annual costs of compliance monitors is just over $1 million. These 
figures add up to about $10 million. From a cost-benefit viewpoint, if 
consolidation leads to $14 million savings from reduced harvesting 
costs and the new program

[[Page 78370]]

increases the tracking and monitoring costs of $10 million, there is a 
projected net gain of about $4 million. These estimates do not take 
into account expectations that agency, observer and compliance costs 
are likely to be reduced due to consolidation or the expected increases 
in revenues discussed above. Better planning by the industry and 
companies that provide the observers and compliance monitors should 
further reduce costs. Recent analyses developed for the North Pacific 
Fishery Management Council and for the New England Fishery Management 
Council were reviewed. The New England Council analysis includes 
observer cost estimates associated with the Canadian Pacific Groundfish 
fishery. Based on a review of these analyses, a daily observer rate of 
$350 a day is feasible. If so, the annual shoreside non-whiting costs 
of observers and catch monitors will add up to about $3.5 million. (For 
purposes of implementing the observer and catch monitoring 
reimbursement program, NMFS is continuing to research what is the 
appropriate daily rate.)
    In contrast to the shoreside non-whiting fishery, the effect of the 
preferred alternative on revenues and costs in the whiting sector of 
the limited entry trawl fishery can only be discussed qualitatively, as 
there is no economic model because of lack of cost data. The lower 
motivation to ``race for fish'' due to coop harvest privileges is 
expected to result in improved product quality, slower-paced harvest 
activity, increased yield (which should increase ex-vessel prices), and 
enhanced flexibility and ability for business planning. The overall 
effect of these changes would be higher revenues and profits for 
harvesters in the shoreside and mothership portions of the whiting 
fishery in comparison to the no action alternative. Under the preferred 
alternative, some consolidation may occur in the shoreside and 
mothership sectors of the Pacific whiting fishery, though the magnitude 
of consolidation is expected to be less than in the non-whiting sector. 
The existing catcher-processor coop would continue under the preferred 
alternative, with effects on the catcher-processor sector that look 
similar, or identical, to those of the no action alternative. However, 
the change from a vessel-based limit under Amendment 15 to the permit-
based limit of Amendment 21 will provide additional flexibility that 
currently does not exist in the catcher-processor fishery. Using 
estimates of $350 per day for observers and compliance monitors, the 
total annual costs of observers and catch monitors for the whiting 
sector (shoreside harvesters, processors, mothership processors, 
mothership catcher vessels, and catcher-processors) is about $1.5 
million. Additional agency costs associated with managing these whiting 
fisheries are included in the estimates provided in the above 
discussion on shorebased non-whiting costs.
    This rule regulates businesses that harvest groundfish and 
processors that wish to process limited entry trawl groundfish. Under 
the RFA, the term ``small entities'' includes small businesses, small 
organizations, and small governmental jurisdictions. For small 
businesses, the SBA has established size criteria for all major 
industry sectors in the U.S., including fish harvesting and fish 
processing businesses. A business involved in fish harvesting is a 
small business if it is independently owned and operated and not 
dominant in its field of operation (including its affiliates) and if it 
has combined annual receipts not in excess of $4.0 million for all its 
affiliated operations worldwide. A seafood processor is a small 
business if it is independently owned and operated, not dominant in its 
field of operation, and employs 500 or fewer persons on a full time, 
part time, temporary, or other basis, at all its affiliated operations 
worldwide. A business involved in both the harvesting and processing of 
seafood products is a small business if it meets the $4.0 million 
criterion for fish harvesting operations. A wholesale business 
servicing the fishing industry is a small business if it employs 100 or 
fewer persons on a full time, part time, temporary, or other basis, at 
all its affiliated operations worldwide. For marinas and charter/party 
boats, a small business is one with annual receipts not in excess of 
$7.0 million. The RFA defines a small organization as any nonprofit 
enterprise that is independently owned and operated and is not dominant 
in its field. The RFA defines small governmental jurisdictions as 
governments of cities, counties, towns, townships, villages, school 
districts, or special districts with populations of less than 50,000.
    NMFS makes the following conclusions based primarily on analyses 
associated with fish ticket data and limited entry permit data, 
available employment data provided by processors, information on the 
charterboat and tribal fleets, and available industry responses to on-
going surveys on ownership. Entities were analyzed as to whether they 
were only affected by the Amendment 21 allocation processes (non-
trawl), or if they were affected by both Amendments 20 and 21 (trawl).
    The non-trawl businesses are associated with the following fleets: 
Limited entry fixed gear (approximately 150 companies), open access 
groundfish (1,100), charterboats (465), and the tribal fleet (four 
tribes with 66 vessels). Available information on average revenue per 
vessel suggests that all the entities in this group can be considered 
small.
    For the trawl sector, there are 177 permit holders. Nine limited 
entry trawl permits are associated with the catcher-processing vessels 
which are considered ``large'' companies. Of the remaining 168 limited 
entry permits, 25 limited entry trawl permits are either owned or 
closely associated with a ``large'' shore-based processing company or 
with a non-profit organization who considers itself a ``large'' 
organization. Nine other permit owners indicated that they were large 
``companies.'' Almost all of these companies are associated with the 
shorebased and mothership whiting fisheries. The remaining 134 limited 
entry trawl permits are projected to be held by ``small'' companies. 
Three of the six mothership processors are ``large'' companies. Within 
the 14 shorebased whiting first receivers/processors, there are four 
``large'' companies. Including the shorebased whiting first receivers, 
in 2008, there were 75 first receivers that purchased limited entry 
trawl groundfish. There were 36 small purchasers (less than $150,000); 
26 medium purchasers (purchases greater than $150,000 but less than 
$1,000,000); and 13 large purchasers (purchases greater than $1.0 
million). Because of the costs of obtaining a ``processor site 
license,'' procuring and scheduling a catch monitor, and installing and 
using the electronic fish ticket software, these ``small'' purchasers 
will likely opt out of buying groundfish, or make arrangements to 
purchase fish from another company that has obtained a processing site 
license.
    NMFS received several comments that concerned the burdens and 
effects on small businesses and on small communities, but not 
specifically on the IRFA. These include comments about the burden of 
paperwork and costs of the program on small businesses and small 
communities; that NMFS should minimize and mitigate impacts on small 
businesses and small communities; that the program should not result in 
an unfair allocation between the states; that the program should be 
designed to result in an even consolidation between states and between 
the sectors (non-whiting shorebased IFQ, whiting shorebased IFQ, 
mothership sector, and

[[Page 78371]]

catcher/processor sector) and that the program should not benefit large 
businesses at the expense of small businesses.
    NMFS responded to similar comments in the final initial issuance 
rule (75 FR 60868, October 1, 2010) on the impacts on small businesses. 
In particular, concerns were raised about negative impacts on smaller 
boats, deckhands, and smaller boats; that program costs to fishermen, 
including the costs of entering the fishery and the costs of observers 
and monitoring are too high; that observer rules need to change for 
trawl and small boats to reflect the vastly different bycatch which 
occurs when mistakes are made; about the impact of the allocation 
formulas on Fort Bragg fishermen; concern that average fishermen will 
not be able to afford to participate and that this will lead to 
increased consolidation and leave many ports no longer viable; about 
negative impacts on processors, that small processors will be driven 
out of business due to consolidation; and that it will eliminate the 
``mom and pop businesses.''
    NMFS has responded to these comments in detail in the final initial 
issuance rule. The overall general nature of NMFS' response is 
applicable to the comments associated with this rule. In terms of 
impacts on small businesses, the trawl rationalization program is 
intended to increase net economic benefits, create economic stability, 
provide full utilization of the trawl sector allocation, consider 
environmental impacts, and promote conservation through individual 
accountability for catch and bycatch. The allocations of quota under 
the new program do not differ significantly from status quo allocations 
made biennially in terms of total allocations. However, instead of 
fleetwide quotas, there will now be individual allocations of quota 
shares and quota pounds to permit owners. Allocations of overfished 
species constrain all groundfish fishermen, for both large and small 
operations. In some cases, smaller operators may be constrained to a 
greater extent. This was recognized in development of the program, and 
operators are encouraged to work together cooperatively, through 
mechanisms like combining and sharing quota amounts. The program 
provides for leasing of additional quota as needed to facilitate 
operations. The program includes provisions that would have a 
beneficial impact on small entities. It would create a management 
program under which most recent participants in the Pacific Coast 
groundfish limited entry trawl fishery (many of which are small 
entities) would be eligible to continue participating in the fishery 
and under which the fishery itself would experience an increase in 
economic profitability. Small entities choosing to exit the fishery 
should receive financial compensation from selling their permit or 
share of the resource. To prevent a particular individual, corporation, 
or other entity from acquiring an excessive share of the total harvest 
privileges in the program, accumulation limits would restrict the 
amount of harvest privileges that can be held, acquired, or used by 
individuals and vessels. In addition, for the shoreside sector of the 
fishery, an AMP was created to mitigate any adverse impacts, including 
impacts on small entities and communities that might result from the 
program.
    It is expected that the shorebased IFQ fishery will lead to 
consolidation and this may affect small processors, particularly if 
they are in disadvantaged ports. Chapter 4 of the FEIS analyzed the 
effects on processors from various perspectives: The distribution of 
landings across west coast ports may change as a result of fleet 
consolidation, industry agglomeration, and the comparative advantage of 
ports (a function of bycatch rates in the waters constituting the 
operational area for the port, differences in infrastructure, and other 
factors). In particular, the Council analysis indicated that processors 
associated with disadvantaged communities may see trawl groundfish 
volumes decline. The analysis highlights that those processors 
receiving landings from Central California or Neah Bay may see a 
reduction in trawl caught groundfish if the market is able to redirect 
activity toward more efficient and advantaged ports. However, in 
addition to increased landings that are expected to result from the IFQ 
program, small processors and disadvantaged communities may benefit 
from the control limits, vessel limits, and adaptive management 
policies. Control limits will limit the ability of large processors to 
obtain shares of the fisheries while the adaptive management processes 
will allow the Council to consider the impacts on small processors, and 
disadvantaged communities when allocating the adaptive management quota 
(10 percent of the total non-whiting trawl quotas). Although vessel 
accumulation limits tend to lower economic efficiency and restrict 
profitability for the average vessel, they could help retain vessels in 
communities because more vessels would remain.
    Another process by which small processors and disadvantaged 
communities may benefit from will be the future development of CFAs. 
Some of the potential benefits of CFAs include: Ensuring access to the 
fishery resource in a particular area or community to benefit the local 
fishing economy; enabling the formation of risk pools and sharing 
monitoring and other costs; ensuring that fish delivered to a local 
area will benefit local processors and businesses; providing a local 
source of QSs for new entrants and others wanting to increase their 
participation in the fishery; increasing local accountability and 
responsibility for the resource; and benefiting other providers and 
users of local fishery infrastructure.
    In summary, the primary impacts of this rule appear to be on 
shoreside processors which are a mix of large and small processors, and 
on shorebased trawlers which are also a mix of large and small 
companies. The non-whiting shorebased trawlers are currently operating 
at a loss or at best are ``breaking even.'' The new rationalization 
program would lead to profitability, but only with a reduction of about 
50 percent of the fleet. This program would lead to major changes in 
the fishery. To help mitigate against these changes, as discussed 
above, the agency has announced its intent, subject to available 
Federal funding, that participants would initially be responsible for 
10 percent of the cost of hiring observers and catch monitors. The 
industry proportion of the costs of hiring observers and catch monitors 
would be increased every year so that by 2014, once the fishery has 
transitioned to the rationalization program, the industry would be 
responsible for 100 percent of the cost of hiring the observers and 
catch monitors. NMFS believes that an incrementally reduced subsidy to 
industry funding would enhance the observer and catch monitor program's 
stability, ensure 100 percent observer and catch monitor coverage, and 
facilitate the industries' successful transition to the new quota 
system. In addition, to help mitigate against negative impacts of this 
program, the Council has adopted an Adaptive Management Program where 
starting in year 3 of the program, 10 percent of non-whiting QS would 
be set aside every year to address community impacts and industry 
transition needs. After reviewing the initial effects of IFQ programs 
in other parts of the world, the council had placed a short term QS 
trading prohibition so that fishermen can learn from their experiences 
and not make premature sales of their QS. The Council is also 
envisioning future regulatory processes that would allow community 
fisheries associations to be

[[Page 78372]]

established to help aid communities and fishermen.
    NMFS has taken a hard look at the reporting burden of the program 
and we believe we have reduced the burden on small businesses to the 
extent possible. The reporting requirements are necessary. With respect 
to the effects on the States including industry consolidation effects, 
NMFS acknowledges that this program has different impacts on different 
states and on different communities. This rulemaking does not set up an 
allocation scheme. As mentioned above, one of the potential purposes of 
the Adaptive Management Program is to address differential impacts upon 
communities and thus the states.
    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 small entity compliance guide (the guide) 
was prepared. Copies of this final rule are available from the 
Northwest Regional Office and the guide will be sent to all permit 
owners for the fishery. The guide and this final rule will also be 
available on the Northwest Regional Office Web site (see ADDRESSES) and 
upon request.
    This final rule contains a collection-of-information requirement 
subject to the Paperwork Reduction Act (PRA) and which has been 
approved by the Office of Management and Budget (OMB) under control 
numbers 0648-0271 (Northwest Region Logbook Family of Forms), 0648-0573 
(Expanded Vessel Monitoring System Requirement for the Pacific Coast 
Groundfish Fishery), 0648-0593 (NMFS Observer Programs' Information 
That Can be Gathered Only Through Questions), 0648-0618 (West Coast 
Groundfish Trawl Economic Data), 0648-0620 (Pacific Coast Groundfish 
Trawl--permits and licenses), and 0648-0619 (Northwest Region 
Groundfish Trawl Fishery Monitoring and Catch Accounting Program). 
Public reporting burden for the Economic Data Collection survey is 
estimated to average 8 hours per response (268 responses). Public 
reporting burden for QS Permit Renewal Application is estimated to 
average 0.33 hours per response (120 responses), First Receiver Site 
License Initial Issuance/Renewal Application is estimated to average 
0.5 hours per response (80 responses), MS Renewal Application is 
estimated to average 0.33 hours per response (6 responses), MS Transfer 
Application is estimated to average 0.5 hours per response (3 
responses), C/P Coop Permit Transfer Application is estimated to 
average 3 hours per response (1 response), MS Coop Permit Application 
is estimated to average 3 hours per response (1 response), Change in 
vessel fishing for coop form is estimated to average 0.33 hours per 
response (3 responses), Material Change form is estimated to average 2 
hours per response (3 responses), MS Withdrawal/Mutual Exception form 
is estimated to average 2 hours per response (2 responses), Ownership 
Interest Form Renewal is estimated to average 0.5 hours per response 
(156 responses), Ownership Interest Form Transfer, is estimated to 
average 0.5 hours per response (20 responses), Vessel Account 
Registration (Initial) is estimated to average 0.5 hours per response 
(120 responses), Vessel Account Registration (ongoing) is estimated to 
average 0.5 hours per response (10 responses), Vessel Account Renewal 
(annual) is estimated to average 0.33 hour per response (30 responses), 
QS Account Registration is estimated to average 1 hour per response (1 
response), QS/QP transfer from QS account to vessel account is 
estimated to average 0.25 hours per response (180 responses), QP 
Transfer from vessel account to vessel account is estimated to average 
0.25 hours per response (600 responses), Transaction Dispute Request is 
estimated to average 1 hour per response (10 responses). Public 
reporting burden for the catch monitor providers, Application 
preparation & submission is estimated to average 10 hours per response 
(3 responses), Training registration is estimated to average 1 hour per 
response (3 responses), Exit Interview registration is estimated to 
average 10 minutes per response (3 responses), Appeals--written 
response and submission is estimated to average 4 hours per response (1 
response). Public reporting burden for the catch monitors application 
appeals--written response & submission is estimated to average 4 hours 
per response (5 responses). Public reporting burden for the catch 
monitoring plans, Preparation & submission is estimated to average 4 
hours per response (80 responses), Inspection is estimated to average 2 
hours per response (80 response), inseason scale testing is estimated 
to average 1 hour per response (80 responses), reports are estimated to 
average 10 minutes per response (2,400 responses). Public reporting 
burden for electronic fish tickets is estimated to average 10 minutes 
per response (400 responses). Public reporting burden for the changes 
to the declaration reporting system (OMB Control No. 0648-0573) and the 
changes to the observer program (OMB Control No. 0648-0593) are not 
expected to change the public reporting burden. Public reporting burden 
for the changes to the cease fishing report for the at-sea whiting 
fisheries (OMB Control No. 0648-0271) will reduce the public reporting 
burden. These estimates include the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection information.
    Send comments on these or any other aspects of the collection of 
information to NMFS, Northwest Region, at the ADDRESSES section above; 
and to OMB by e-mail to [email protected]; or fax to 202-
395-7285.
    Notwithstanding any other provision of the law, no person is 
required to respond to, and no person shall be subject to penalty for 
failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB control number.
    NMFS issued Biological Opinions under the Endangered Species Act 
(ESA) on August 10, 1990, November 26, 1991, August 28, 1992, September 
27, 1993, May 14, 1996, and December 15, 1999 pertaining to the effects 
of the Pacific Coast groundfish FMP fisheries on Chinook salmon (Puget 
Sound, Snake River spring/summer, Snake River fall, upper Columbia 
River spring, lower Columbia River, upper Willamette River, Sacramento 
River winter, Central Valley spring, California coastal), coho salmon 
(Central California coastal, southern Oregon/northern California 
coastal), chum salmon (Hood Canal summer, Columbia River), sockeye 
salmon (Snake River, Ozette Lake), and steelhead (upper, middle and 
lower Columbia River, Snake River Basin, upper Willamette River, 
central California coast, California Central Valley, south/central 
California, northern California, southern California). These biological 
opinions have concluded that implementation of the FMP for the Pacific 
Coast groundfish fishery was not expected to jeopardize the continued 
existence of any endangered or threatened species under the 
jurisdiction of NMFS, or result in the destruction or adverse 
modification of critical habitat.

[[Page 78373]]

    NMFS reinitiated a formal section 7 consultation under the ESA in 
2005 for both the Pacific whiting midwater trawl fishery and the 
groundfish bottom trawl fishery. The December 19, 1999, Biological 
Opinion had defined an 11,000 Chinook incidental take threshold for the 
Pacific whiting fishery. During the 2005 Pacific whiting season, the 
11,000 fish Chinook incidental take threshold was exceeded, triggering 
reinitiation. Also in 2005, new data from the West Coast Groundfish 
Observer Program became available, allowing NMFS to complete an 
analysis of salmon take in the bottom trawl fishery.
    NMFS prepared a Supplemental Biological Opinion dated March 11, 
2006, which addressed salmon take in both the Pacific whiting midwater 
trawl and groundfish bottom trawl fisheries. In its 2006 Supplemental 
Biological Opinion, NMFS concluded that catch rates of salmon in the 
2005 whiting fishery were consistent with expectations considered 
during prior consultations. Chinook bycatch has averaged about 7,300 
fish over the last 15 years and has only occasionally exceeded the 
reinitiation trigger of 11,000 fish.
    Since 1999, annual Chinook bycatch has averaged about 8,450 fish. 
The Chinook ESUs most likely affected by the whiting fishery has 
generally improved in status since the 1999 section 7 consultation. 
Although these species remain at risk, as indicated by their ESA 
listing, NMFS concluded that the higher observed bycatch in 2005 does 
not require a reconsideration of its prior ``no jeopardy'' conclusion 
with respect to the fishery. For the groundfish bottom trawl fishery, 
NMFS concluded that incidental take in the groundfish fisheries is 
within the overall limits articulated in the Incidental Take Statement 
of the 1999 Biological Opinion. The groundfish bottom trawl limit from 
that opinion was 9,000 fish annually. NMFS will continue to monitor and 
collect data to analyze take levels. NMFS also reaffirmed its prior 
determination that implementation of the Groundfish FMP is not likely 
to jeopardize the continued existence of any of the affected ESUs.
    Lower Columbia River coho (70 FR 37160, June 28, 2005) were 
recently listed and Oregon Coastal coho (73 FR 7816, February 11, 2008) 
were recently relisted as threatened under the ESA. The 1999 biological 
opinion concluded that the bycatch of salmonids in the Pacific whiting 
fishery were almost entirely Chinook salmon, with little or no bycatch 
of coho, chum, sockeye, and steelhead.
    The Southern Distinct Population Segment (DPS) of green sturgeon 
was listed as threatened under the ESA (71 FR 17757, April 7, 2006). 
The southern DPS of Pacific eulachon was listed as threatened on March 
18, 2010, under the ESA (75 FR 13012). NMFS has reinitiated 
consultation on the fishery, including impacts on green sturgeon, 
eulachon, marine mammals, and turtles. After reviewing the available 
information, NMFS has concluded that, consistent with Sections 7(a)(2) 
and 7(d) of the ESA, the proposed action would not jeopardize any 
listed species, would not adversely modify any designated critical 
habitat, and would not result in any irreversible or irretrievable 
commitment of resources that would have the effect of foreclosing the 
formulation or implementation of any reasonable and prudent alternative 
measures.
    Amendments 20 and 21 to the FMP were developed after meaningful 
consultation and collaboration, through the Council process, with the 
tribal representative on the Council. The Amendments have no direct 
effect on tribes; these proposed regulations were deemed by the Council 
as ``necessary or appropriate'' to implement the FMP as amended.

List of Subjects

15 CFR Part 902

    Reporting and recordkeeping requirements.

50 CFR Part 660

    Fisheries, Fishing, and Indian fisheries.

    Dated: December 1, 2010.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

0
For the reasons set out in the preamble, 15 CFR chapter IX and 50 CFR 
chapter VI are amended as follows:

15 CFR Chapter IX

PART 902--NOAA INFORMATION COLLECTION REQUIREMENTS UNDER THE 
PAPERWORK REDUCTION ACT: OMB CONTROL NUMBERS

0
1. The authority citation for part 902 continues to read as follows:

    Authority: 44 U.S.C. 3501 et seq.


0
2. In Sec.  902.1(b), in the table under the entry ``50 CFR'', add new 
entries and corresponding OMB numbers for Sec. Sec.  660.13, 660.14, 
660.16, 660.17, 660.114, 660.140, 660.150, 660.160, 660.216, and 
660.316; and revise the entries for Sec. Sec.  660.25 and 660.113.
    The additions and revisions read as follows:


Sec.  902.1  OMB control numbers assigned pursuant to the Paperwork 
Reduction Act.

* * * * *
    (b) * * *

------------------------------------------------------------------------
     CFR part or section where the
 information collection requirement is   Current OMB control number (all
                located                     numbers begin with 0648-)
------------------------------------------------------------------------
 
 
                                * * * * *
50 CFR
 
 
                                * * * * *
  660.13...............................  -0573
  660.14...............................  -0573
  660.16...............................  -0593
  660.17...............................  -0619
  660.25...............................  -0203, -0620
  660.113..............................  -0271, -0573, -0618, -0619
  660.114..............................  -0618
  660.140..............................  -0593, -0619, -0620
  660.150..............................  -0593, -0620
  660.160..............................  -0593, -0620
  660.216..............................  -0593
 
 
                                * * * * *
  660.316..............................  -0593
 
 
                                * * * * *
------------------------------------------------------------------------

50 CFR Chapter VI

PART 660--FISHERIES OFF WEST COAST STATES

0
3. The authority citation for part 660 is revised to read as follows:

    Authority: 16 U.S.C. 1801 et seq., 16 U.S.C. 773 et seq., and 16 
U.S.C. 7001 et seq.


0
4. In Sec.  660.11, the definitions for ``Processing or to process'' 
and ``Processor'' are revised to read as follows:


Sec.  660.11  General definitions.

* * * * *
    Processing or to process means the preparation or packaging of 
groundfish to render it suitable for human consumption, retail sale, 
industrial uses or long-term storage, including, but not limited to, 
cooking, canning, smoking, salting, drying, filleting, freezing, or 
rendering into meal or oil, but does not

[[Page 78374]]

mean heading and gutting unless additional preparation is done. (Also 
see an exception to certain requirements at Sec.  660.131(a), subpart D 
pertaining to Pacific whiting shoreside vessels 75-ft (23-m) or less 
LOA that, in addition to heading and gutting, remove the tails and 
freeze catch at sea.)
    (1) At-sea processing means processing that takes place on a vessel 
or other platform that floats and is capable of being moved from one 
location to another, whether shore-based or on the water.
    (2) Shorebased processing or processing means processing that takes 
place at a facility that is permanently fixed to land. (Also see the 
definition for shoreside processing at Sec.  660.140, subpart D which 
defines shoreside processing for the purposes of qualifying for a 
Shorebased IFQ Program QS permit.) For the purposes of economic data 
collection in the Shorebased IFQ Program, shorebased processing means 
either of the following:
    (i) Any activity that takes place shoreside; and that involves: 
Cutting groundfish into smaller portions; or freezing, cooking, 
smoking, drying groundfish; or packaging that groundfish for resale 
into 100 pound units or smaller; for sale or distribution into a 
wholesale or retail market.
    (ii) The purchase and redistribution in to a wholesale or retail 
market of live groundfish from a harvesting vessel.
    Processor means a person, vessel, or facility that engages in 
commercial processing; or receives live groundfish directly from a 
fishing vessel for retail sale without further processing. (Also see 
the definition for processors at Sec.  660.140, subpart D which defines 
processor for the purposes of qualifying for initial issuance of QS in 
the Shorebased IFQ Program.)
    (1) For the purposes of economic data collection in the Shorebased 
IFQ Program, shorebased processor means a person that engages in 
commercial processing, that is an operation working on U.S. soil or 
permanently fixed to land, that takes delivery of fish that has not 
been subject to at-sea processing or shorebased processing; and that 
thereafter engages that particular fish in shorebased processing; and 
excludes retailers, such as grocery stores and markets, which receive 
whole or headed and gutted fish that are then filleted and packaged for 
retail sale. At Sec.  660.114(b), trawl fishery--economic data 
collection program, the definition of processor is further refined to 
describe which shorebased processors are required to submit their 
economic data collection forms.
    (2) [Reserved]
* * * * *

0
5. In Sec.  660.12, paragraph (e)(7) and (e)(8) are revised, paragraph 
(f) is redesignated as paragraph (g), and a new paragraph (f) is added 
to read as follows:


Sec.  660.12  General groundfish prohibitions.

* * * * *
    (e) * * *
    (7) Fail to provide departure or cease fishing reports specified at 
Sec. Sec.  660.140, 660.150, 660.160, subpart D; Sec.  660.216, subpart 
E; or Sec.  660.316, subpart F.
    (8) Fail to meet the vessel responsibilities specified at 
Sec. Sec.  660.140, 660.150, 660.160, subpart D; Sec.  660.216, subpart 
E; or Sec.  660.316, subpart F.
    (9) Fail to meet the observer provider responsibilities specified 
at Sec. Sec.  660.140, 660.150, 660.160, subpart D.
    (f) Groundfish catch monitor program. (1) Forcibly assault, resist, 
oppose, impede, intimidate, harass, sexually harass, bribe, or 
interfere with a catch monitor.
    (2) Interfere with or bias the monitoring procedure employed by a 
catch monitor, including either mechanically or manually sorting or 
discarding catch before it's monitored.
    (3) Tamper with, destroy, or discard a catch monitor's collected 
samples, equipment, records, photographic film, papers, or personal 
effects.
    (4) Harass a catch monitor by conduct that:
    (i) Has sexual connotations,
    (ii) Has the purpose or effect of interfering with the catch 
monitor's work performance, and/or
    (iii) Otherwise creates an intimidating, hostile, or offensive 
environment. In determining whether conduct constitutes harassment, the 
totality of the circumstances, including the nature of the conduct and 
the context in which it occurred, will be considered. The determination 
of the legality of a particular action will be made from the facts on a 
case-by-case basis.
    (5) Receive, purchase, or take custody, control, or possession of a 
delivery without catch monitor coverage when such coverage is required 
under Sec.  660.140, subpart D.
    (6) Fail to allow the catch monitor unobstructed access to catch 
sorting, processing, catch counting, catch weighing, or electronic or 
paper fish tickets.
    (7) Fail to provide reasonable assistance to the catch monitor.
    (8) Require, pressure, coerce, or threaten a catch monitor to 
perform duties normally performed by employees of the first receiver, 
including, but not limited to duties associated with the receiving of 
landing, processing of fish, sorting of catch, or the storage of the 
finished product.
    (9) Fail to meet the catch monitor provider responsibilities 
specified at Sec.  660.140, subpart D.
* * * * *

0
6. In Sec.  660.13, paragraph (d)(5)(iv) introductory text, paragraph 
(d)(5)(iv)(A) introductory text, and paragraphs (d)(5)(iv)(A)(1) 
through (4), and (6) through (8) are revised to read as follows:


Sec.  660.13  Recordkeeping and reporting.

* * * * *
    (d) * * *
    (5) * * *
    (iv) Declaration reports will include: The vessel name and/or 
identification number, and gear type (as defined in paragraph 
(d)(5)(iv)(A) of this section). Upon receipt of a declaration report, 
NMFS will provide a confirmation code or receipt to confirm that a 
valid declaration report was received for the vessel. Retention of the 
confirmation code or receipt to verify that a valid declaration report 
was filed and the declaration requirement was met is the responsibility 
of the vessel owner or operator. Vessels using nontrawl gear may 
declare more than one gear type with the exception of vessels 
participating in the Shorebased IFQ Program (i.e. gear switching), 
however, vessels using trawl gear may only declare one of the trawl 
gear types listed in paragraph (d)(5)(iv)(A) of this section on any 
trip and may not declare nontrawl gear on the same trip in which trawl 
gear is declared.
    (A) One of the following gear types or sectors must be declared:
    (1) Limited entry fixed gear, not including shorebased IFQ,
    (2) Limited entry groundfish non-trawl, shorebased IFQ,
    (3) Limited entry midwater trawl, non-whiting shorebased IFQ,
    (4) Limited entry midwater trawl, Pacific whiting shorebased IFQ,
* * * * *
    (6) Limited entry midwater trawl, Pacific whiting mothership sector 
(catcher vessel or mothership),
    (7) Limited entry bottom trawl, shorebased IFQ, not including 
demersal trawl,
    (8) Limited entry demersal trawl, shorebased IFQ,
* * * * *

0
7. In Sec.  660.14, paragraph (b)(1) is revised to read as follows:


Sec.  660.14  Vessel Monitoring System (VMS) requirements.

* * * * *
    (b) * * *

[[Page 78375]]

    (1) Any vessel registered for use with a limited entry ``A'' 
endorsed permit (i.e., not an MS permit) that fishes in state or 
Federal waters seaward of the baseline from which the territorial sea 
is measured off the States of Washington, Oregon or California (0-200 
nm offshore).
* * * * *

0
8. Section 660.15 is revised to read as follows:


Sec.  660.15  Equipment requirements.

    (a) Applicability. This section contains the equipment and 
operational requirements for scales used to weigh catch at sea, scales 
used to weigh catch at IFQ first receivers, computer hardware for 
electronic fish ticket software, and computer hardware for electronic 
logbook software. Unless otherwise specified by regulation, the 
operator or manager must retain, for 3 years, a copy of all records 
described in this section and make available the records upon request 
of NMFS staff or authorized officer.
    (b) Scales used to weigh catch at sea--performance and technical 
requirements. (1) Scales approved by NMFS for MS and C/P Coop Programs. 
A scale used to weigh catch in the MS and C/P Coop Programs must meet 
the type evaluation and initial inspection requirements set forth in 50 
CFR 679.28(b)(1) and (2), and must be approved by NMFS.
    (2) Annual inspection. Once a scale is installed on a vessel and 
approved by NMFS for use, it must be inspected annually as described in 
50 CFR 679.28(b).
    (3) Daily testing. Each scale must be tested daily and meet the 
maximum permissible error (MPE) requirements described at described at 
paragraph (b)(4) of this section.
    (4) At-sea scale tests. To verify that the scale meets the maximum 
permissible errors (MPEs) specified in this paragraph, the vessel 
operator must ensure that vessel crew test each scale used to weigh 
catch at least one time during each 24-hour period when use of the 
scale is required. The vessel owner must ensure that these tests are 
performed in an accurate and timely manner.
    (i) Belt scales. The MPE for the daily at-sea scale test is plus or 
minus 3 percent of the known weight of the test material. The scale 
must be tested by weighing at least 400 kg (882 lb) of fish or an 
alternative material supplied by the scale manufacturer on the scale 
under test. The known weight of the fish or test material must be 
determined by weighing it on a platform scale approved for use under 50 
CFR 679.28(b)(7).
    (ii) Platform scales used for observer sampling on MSs and C/Ps. A 
platform scale used for observer sampling must be tested at 10, 25, and 
50 kg (or 20, 50, and 100 lb if the scale is denominated in pounds) 
using approved test weights. The MPE for the daily at-sea scale test is 
plus or minus 0.5 percent.
    (iii) Approved test weights. Each test weight must have its weight 
stamped on or otherwise permanently affixed to it. The weight of each 
test weight must be annually certified by a National Institute of 
Standards and Technology approved metrology laboratory or approved for 
continued use by the NMFS authorized inspector at the time of the 
annual scale inspection.
    (iv) Requirements for all at-sea scale tests. The vessel operator 
must ensure that vessel crew:
    (A) Notify the observer at least 15 minutes before the time that 
the test will be conducted, and conduct the test while the observer is 
present.
    (B) Conduct the scale test and record the following information on 
the at-sea scale test report form:
    (1) Vessel name;
    (2) Month, day, and year of test;
    (3) Time test started to the nearest minute;
    (4) Known weight of test weights;
    (5) Weight of test weights recorded by scale;
    (6) Percent error as determined by subtracting the known weight of 
the test weights from the weight recorded on the scale, dividing that 
amount by the known weight of the test weights, and multiplying by 100; 
and
    (7) Sea conditions at the time of the scale test.
    (C) Maintain the test report form on board the vessel until the end 
of the fishing year during which the tests were conducted, and make the 
report forms available to observers, NMFS staff, or authorized 
officers. In addition, the vessel owner must retain the scale test 
report forms for 3 years after the end of the fishing year during which 
the tests were performed. Each scale test report form must be signed by 
the vessel operator immediately following completion of each scale 
test.
    (5) Scale maintenance. The vessel owner must ensure that the vessel 
operator maintains the scale in proper operating condition throughout 
its use, that adjustments made to the scale are made so as to bring the 
performance errors as close as practicable to a zero value, and that no 
adjustment is made that will cause the scale to weigh inaccurately.
    (6) Printed reports from the scale. The vessel owner must ensure 
that the printed reports are provided to NMFS as required by this 
paragraph. Printed reports from the scale must be maintained on board 
the vessel until the end of the year during which the reports were 
made, and be made available to NMFS staff or authorized officers. In 
addition, the vessel owner must retain printed reports for 3 years 
after the end of the year during which the printouts were made.
    (i) Reports of catch weight and cumulative weight. Reports must be 
printed at least once every 24 hours. Reports must also be printed 
before any information stored in the scale computer memory is replaced. 
Scale weights must not be adjusted by the scale operator to account for 
the perceived weight of water, slime, mud, debris, or other materials. 
Scale printouts must show:
    (A) The vessel name and Federal vessel permit number;
    (B) The date and time the information was printed;
    (C) The haul number;
    (D) The total weight of the haul; and
    (E) The total cumulative weight of all fish and other material 
weighed on the scale since the last annual inspection.
    (ii) Printed report from the audit trail. The printed report must 
include the information specified in sections 2.3.1.8, 3.3.1.7, and 
4.3.1.8 of appendix A to 50 CFR part 679. The printed report must be 
provided to the authorized scale inspector at each scale inspection and 
must also be printed at any time upon request of NMFS staff or other 
authorized officer.
    (iii) Platform scales used for observer sampling. A platform scale 
used for observer sampling is not required to produce a printed record.
    (c) Scales used to weigh catch at IFQ first receivers--performance 
and technical requirements. Scale requirements in this paragraph are in 
addition to those requirements set forth by the State in which the 
scale is located, and nothing in this paragraph may be construed to 
reduce or supersede the authority of the State to regulate, test, or 
approve scales within the State. Scales used to weigh catch that are 
also required to be approved by the State must meet the following 
requirements:
    (1) Verification of approval. The scale must display a valid 
sticker indicating that the scale is currently approved in accordance 
with the laws of the state where the scale is located.
    (2) Visibility. NMFS staff, NMFS-authorized personnel, or 
authorized officers must be allowed to observe the

[[Page 78376]]

weighing of catch on the scale and be allowed to read the scale display 
at all times.
    (3) Printed scale weights. (i) An IFQ first receiver must ensure 
that printouts of the scale weight of each delivery or offload are made 
available to NMFS staff, to NMFS-authorized personnel, or to authorized 
officers at the time printouts are generated. An IFQ first receiver 
must maintain printouts on site until the end of the fishing year 
during which the printouts were made and make them available upon 
request by NMFS staff, NMFS-authorized personnel, or authorized 
officers for 3 years after the end of the fishing year during which the 
printout was made.
    (ii) All scales identified in a catch monitoring plan (see Sec.  
660.140(f)(3), subpart D) must produce a printed record for each 
delivery, or portion of a delivery, weighed on that scale, unless 
specifically exempted by NMFS. NMFS may exempt, as part of the NMFS-
accepted catch monitoring plan, scales not designed for automatic bulk 
weighing from part or all of the printed record requirements. For 
scales that must produce a printed record, the printed record must 
include:
    (A) The IFQ first receiver's name;
    (B) The weight of each load in the weighing cycle;
    (C) The total weight of fish in each landing, or portion of the 
landing that was weighed on that scale;
    (D) The date the information is printed; and
    (E) The name and vessel registration or documentation number of the 
vessel making the delivery. The scale operator may write this 
information on the scale printout in ink at the time of printing.
    (4) Inseason scale testing. IFQ first receivers must allow, and 
provide reasonable assistance to NMFS staff, NMFS-authorized personnel, 
and authorized officers to test scales used to weigh IFQ catch. A scale 
that does not pass an inseason test may not be used to weigh IFQ catch 
until the scale passes an inseason test or is approved for continued 
use by the weights and measures authorities of the State in which the 
scale is located.
    (i) Inseason testing criteria. To pass an inseason test, NMFS staff 
or authorized officers must be able to verify that:
    (A) The scale display and printed information are clear and easily 
read under all conditions of normal operation;
    (B) Weight values are visible on the display until the value is 
printed;
    (C) The scale does not exceed the maximum permissible errors 
specified in the following table:

------------------------------------------------------------------------
                                                           Maximum error
              Test load in scale divisions                   in scale
                                                             divisions
------------------------------------------------------------------------
(1) 0-500...............................................               1
(2) 501-2,000...........................................               2
(3) 2,001-4,000.........................................               3
(4) >4,000..............................................               4
------------------------------------------------------------------------

    (D) Automatic weighing systems. An automatic weighing system must 
be provided and operational that will prevent fish from passing over 
the scale or entering any weighing hopper unless the following criteria 
are met:
    (1) No catch may enter or leave a weighing hopper until the 
weighing cycle is complete;
    (2) No product may be cycled and weighed if the weight recording 
element is not operational; and
    (3) No product may enter a weighing hopper until the prior weighing 
cycle has been completed and the scale indicator has returned to a 
zero.
    (ii) [Reserved]
    (d) Electronic fish tickets. IFQ first receivers using the 
electronic fish ticket software provided by Pacific States Marine 
Fisheries Commission are required to meet the hardware and software 
requirements below. Those IFQ first receivers who have NMFS-approved 
software compatible with the standards specified by Pacific States 
Marine Fisheries Commission for electronic fish tickets are not subject 
to any specific hardware or software requirements.
    (1) Hardware and software requirements. (i) A personal computer 
with Pentium 75-MHz or higher. Random Access Memory (RAM) must have 
sufficient megabyte (MB) space to run the operating system, plus an 
additional 8 MB for the software application and available hard disk 
space of 217 MB or greater. A CD-ROM drive with a Video Graphics 
Adapter (VGA) or higher resolution monitor (super VGA is recommended).
    (ii) Microsoft Windows 2000 (64 MB or greater RAM required), 
Windows XP (128 MB or greater RAM required), or later operating system.
    (iii) Microsoft Access 2003 or newer.
    (2) NMFS approved software standards and internet access. The IFQ 
first receiver is responsible for obtaining, installing, and updating 
electronic fish tickets software either provided by Pacific States 
Marine Fisheries Commission, or compatible with the data export 
specifications specified by Pacific States Marine Fisheries Commission 
and for maintaining internet access sufficient to transmit data files 
via e-mail. Requests for data export specifications can be submitted 
to: Attn: Electronic Fish Ticket Monitoring, National Marine Fisheries 
Service, Northwest Region, Sustainable Fisheries Division, 7600 Sand 
Point Way, NE, Seattle, WA 98115.
    (3) Maintenance. The IFQ first receiver is responsible for ensuring 
that all hardware and software required under this subsection are fully 
operational and functional whenever they receive, purchase, or take 
custody, control, or possession of an IFQ landing.
    (4) Improving data quality. Vessel owners and operators, IFQ first 
receivers, or shoreside processor owners, or managers may contact NMFS 
in writing to request assistance in improving data quality and 
resolving issues. Requests may be submitted to: Attn: Electronic Fish 
Ticket Monitoring, National Marine Fisheries Service, Northwest Region, 
Sustainable Fisheries Division, 7600 Sand Point Way, NE, Seattle, WA 
98115.

0
9. Section 660.16 is revised to read as follows:


Sec.  660.16  Groundfish observer program.

    (a) General. Vessel owners, operators, and managers are jointly and 
severally responsible for their vessel's compliance with observer 
requirements specified in this section and within Sec. Sec.  660.140, 
660.150, 660.160, subpart D; Sec.  660.216, subpart E; Sec.  660.316, 
subpart F; or subpart G.
    (b) Purpose. The purpose of the Groundfish Observer Program is to 
collect fisheries data necessary and appropriate for, among other 
relevant purposes, management, compliance monitoring, and research in 
the groundfish fisheries and for the conservation of living marine 
resources.
    (c) Observer coverage requirements. The following table provides 
references to the paragraphs in the Pacific coast groundfish subparts 
that contain fishery specific requirements. Observer coverage required 
for the Shorebased IFQ Program, MS Coop Program, or C/P Coop Program 
shall not be used to comply with observer coverage requirements for any 
other Pacific coast groundfish fishery in which that vessel may also 
participate.

------------------------------------------------------------------------
   West Coast Groundfish Fishery              Regulation section
------------------------------------------------------------------------
(1) Shorebased IFQ Program--Trawl    Sec.   660.140, subpart D.
 Fishery.

[[Page 78377]]

 
(2) MS Coop Program--Whiting At-sea  Sec.   660.150, subpart D.
 Trawl Fishery.
(3) C/P Coop Program--Whiting At-    Sec.   660.160, subpart D.
 sea Trawl Fishery.
(4) Fixed Gear Fisheries...........  Sec.   660.216, subpart E.
(5) Open Access Fisheries..........  Sec.   660.316, subpart F.
------------------------------------------------------------------------


0
10. Section 660.17 is added to read as follows:


Sec.  660.17   Catch monitors and catch monitor providers.

    (a) Catch monitor certification. Catch monitor certification 
authorizes an individual to fulfill duties as specified by NMFS while 
under the employ of a certified catch monitor provider.
    (b) Catch monitor certification requirements. NMFS may certify 
individuals who:
    (1) Are employed by a certified catch monitor provider at the time 
of the issuance of the certification and qualified, as described at 
paragraph (e)(1)(i) through (viii) of this section and have provided 
proof of qualifications to NMFS, through the certified catch monitor 
provider.
    (2) Have successfully completed NMFS-approved training.
    (i) Successful completion of training by an applicant consists of 
meeting all attendance and conduct standards issued in writing at the 
start of training; meeting all performance standards issued in writing 
at the start of training for assignments, tests, and other evaluation 
tools; and completing all other training requirements established by 
NMFS.
    (ii) If a candidate fails training, he or she will be notified in 
writing on or before the last day of training. The notification will 
indicate: The reasons the candidate failed the training; whether the 
candidate can retake the training, and under what conditions.
    (3) Have not been decertified as an observer or catch monitor under 
provisions in Sec. Sec.  660.18, 660.140(h)(6), 660.150(g)(6), and 
660.160(g)(6).
    (4) Existing catch monitors as of 2010. A catch monitor who has 
completed sampling or monitoring activities in 2010 in NMFS-managed 
West Coast groundfish fisheries, and has not had his or her 
certification revoked during or after that time, will be considered to 
have met his or her certification requirements under this section. 
These catch monitors will be issued a new catch monitor certification 
prior to their first deployment to a first receiver after December 31, 
2010, unless NMFS determines that he or she has not completed any 
additional training required for this program.
    (c) Catch monitor standards of behavior. Catch monitors must do the 
following:
    (1) Perform authorized duties as described in training and 
instructional manuals or other written and oral instructions provided 
by NMFS.
    (2) Accurately record and submit the required data, which includes 
fish species composition, identification, sorting, and weighing 
information.
    (3) Write complete reports, and report accurately any observations 
of suspected violations of regulations.
    (4) Keep confidential and not disclose data and observations 
collected at the first receiver to any person except, NMFS staff or 
authorized officers or others as specifically authorized by NMFS.
    (d) Catch monitor provider certification. Persons seeking to 
provide catch monitor services under this section must obtain a catch 
monitor provider certification from NMFS.
    (1) Applications. Persons seeking to provide catch monitor services 
must submit a completed application by mail to the NMFS Northwest 
Region, Permits Office, ATTN: Catch Monitor Coordinator, 7600 Sand 
Point Way, NE, Seattle, WA 98115. An application for a catch monitor 
provider permit shall consist of a narrative that contains the 
following:
    (i) Identification of the management, organizational structure, and 
ownership structure of the applicant's business, including 
identification by name and general function of all controlling 
management interests in the company, including but not limited to 
owners, board members, officers, authorized agents, and staff. If the 
applicant is a corporation, the articles of incorporation must be 
provided. If the applicant is a partnership, the partnership agreement 
must be provided.
    (ii) Contact information. (A) The owner's permanent mailing 
address, telephone, and fax numbers.
    (B) The business mailing address, including the physical location, 
e-mail address, telephone and fax numbers.
    (C) Any authorized agent's mailing address, physical location, e-
mail address, telephone and fax numbers. An authorized agent means a 
person appointed and maintained within the United States who is 
authorized to receive and respond to any legal process issued in the 
United States to an owner or employee of a catch monitor provider.
    (iii) Prior experience. A statement identifying prior relevant 
experience in recruiting, hiring, deploying, and providing support for 
individuals in marine work environments in the groundfish fishery or 
other fisheries of similar scale.
    (iv) Ability to perform or carry out responsibilities of a catch 
monitor provider. A description of the applicant's ability to carry out 
the responsibilities of a catch monitor provider is set out under 
paragraph (e) of this section.
    (v) A statement describing any criminal convictions of each owner 
and board member, officer, authorized agent, and staff; a list of 
Federal contracts held and related performance ratings; and, a 
description of any previous decertification actions that may have been 
taken while working as an observer or observer provider.
    (vi) A statement describing each owner and board member, officer, 
authorized agent, and staff indicating that they are free from conflict 
of interest as described under Sec.  660.18(d).
    (2) Application review. (i) The certification official, described 
in Sec.  660.18(a), may issue catch monitor provider certifications 
upon determination that the application submitted by the candidate 
meets all requirements specified in paragraph (d)(2)(ii) of this 
section.
    (ii) Issuance of the certification will, at a minimum, be based on 
the completeness of the application, as well as the following criteria:
    (A) The applicant's ability to carry out the responsibilities and 
relevant experience;
    (B) Satisfactory performance ratings on any Federal contracts held 
by the applicant.
    (C) Absence of a conflict of interest.
    (D) Absence of relevant criminal convictions.
    (3) Agency determination. The certification official will make a 
determination to approve or deny the application and notify the 
applicant by letter via certified return receipt mail, within 60 days 
of receipt of the application. Additional certification procedures are 
specified in Sec.  660.18, subpart C.

[[Page 78378]]

    (4) Existing catch monitor providers as of 2010. NMFS-certified 
providers who deployed catch monitors in a NMFS-managed West Coast 
groundfish fishery or observers under the North Pacific Groundfish 
Program in 2010, are exempt from the requirement to apply for a permit 
for 2011 and will be issued a catch monitor provider permit effective 
through December 31, 2011, except that a change in ownership of an 
existing catch monitor provider or observer provider after January 1, 
2011, requires a new permit application under this section. To receive 
catch monitor certification for 2012 and beyond, these exempted catch 
monitor providers must follow application procedures otherwise set 
forth in this section.
    (e) Catch monitor provider responsibilities. (1) Provide qualified 
candidates to serve as catch monitors. To be qualified a candidate 
must:
    (i) Be a U.S. citizen or have authorization to work in the United 
States;
    (ii) Be at least 18 years of age;
    (iii) Have a high school diploma and;
    (A) At least two years of study from an accredited college with a 
major study in natural resource management, natural sciences, earth 
sciences, natural resource anthropology, law enforcement/police 
science, criminal justice, public administration, behavioral sciences, 
environmental sociology, or other closely related subjects pertinent to 
the management and protection of natural resources, or;
    (B) One year of specialized experience performing duties which 
involved communicating effectively and obtaining cooperation, 
identifying and reporting problems or apparent violations of 
regulations concerning the use of protected or public land areas, and 
carrying out policies and procedures within a recreational area or 
natural resource site.
    (iv) Computer skills that enable the candidate to work competently 
with standard database software and computer hardware.
    (v) Have a current and valid driver's license.
    (vi) Have had a background investigation and been found to have had 
no criminal or civil convictions that would affect their performance or 
credibility as a catch monitor.
    (vii) Have had health and physical fitness exams and been found to 
be fit for the job duties and work conditions;
    (A) Physical fitness exams shall be conducted by a medical doctor 
who has been provided with a description of the job duties and work 
conditions and who provides a written conclusion regarding the 
candidate's fitness relative to the required duties and work 
conditions. A signed and dated statement from a licensed physician that 
he or she has physically examined a catch monitor or catch monitor 
candidate. The statement must confirm that, based on that physical 
examination, the catch monitor or catch monitor candidate does not have 
any health problems or conditions that would jeopardize that 
individual's safety or the safety of others while deployed, or prevent 
the catch monitor or catch monitor candidate from performing his or her 
duties satisfactorily. The physician's statement must be submitted to 
the catch monitor program office prior to certification of a catch 
monitor. The physical exam must have occurred during the 12 months 
prior to the catch monitor's or catch monitor candidate's deployment. 
The physician's statement will expire 12 months after the physical exam 
occurred. A new physical exam must be performed, and accompanying 
statement submitted, prior to any deployment occurring after the 
expiration of the statement.
    (B) Physical exams may include testing for illegal drugs.
    (C) Certificates of insurance. Copies of ``certificates of 
insurance'', that names the NMFS Catch Monitor Program leader as the 
``certificate holder'', shall be submitted to the Catch Monitor Program 
Office by February 1 of each year. The certificates of insurance shall 
verify the following coverage provisions and state that the insurance 
company will notify the certificate holder if insurance coverage is 
changed or canceled.
    (1) Coverage under the U.S. Longshore and Harbor Workers' 
Compensation Act ($1 million minimum).
    (2) States Worker's Compensation as required.
    (3) Commercial General Liability.
    (viii) Have signed a statement indicating that they are free from 
conflict of interest as described under Sec.  660.18(c).
    (2) Standards. Provide to the candidate a copy of the standards of 
conduct, responsibilities, conflict of interest standards and drug and 
alcohol policy.
    (3) Contract. Provide to the candidate a copy of a written contract 
signed by the catch monitor and catch monitor provider that shows among 
other factors the following provisions for employment:
    (i) Compliance with the standards of conduct, responsibilities, 
conflict of interest standards and drug and alcohol policy;
    (ii) Willingness to complete all responsibilities of current 
deployment prior to performing jobs or duties which are not part of the 
catch monitor responsibilities.
    (iii) Commitment to return all sampling or safety equipment issued 
for the deployment.
    (4) Catch monitors provided to a first receiver.
    (i) Must have a valid catch monitor certification;
    (ii) Must not have informed the provider prior to the time of 
assignment that he or she is experiencing a mental illness or a 
physical ailment or injury developed since submission of the 
physician's statement, as required in paragraph (e)(1)(vii)(A) of this 
section that would prevent him or her from performing his or her 
assigned duties; and
    (iii) Must have successfully completed all NMFS required training 
and briefing before assignment.
    (5) Respond to industry requests for catch monitors. A catch 
monitor provider must provide a catch monitor for assignment pursuant 
to the terms of the contractual relationship with the first receiver to 
fulfill first receiver requirements for catch monitor coverage under 
paragraph (e)(10)(i)(C)(1)(ii) of this section. An alternate catch 
monitor must be supplied in each case where injury or illness prevents 
the catch monitor from performing his or her duties or where the catch 
monitor resigns prior to completion of his or her duties. If the catch 
monitor provider is unable to respond to an industry request for catch 
monitor coverage from a first receiver for whom the provider is in a 
contractual relationship due to the lack of available catch monitors, 
the provider must report it to NMFS at least 4 hours prior to the 
expected assignment time.
    (6) Ensure that catch monitors complete duties in a timely manner. 
Catch monitor providers must ensure that catch monitors employed by 
that provider do the following in a complete and timely manner:
    (i) Submit to NMFS all data, logbooks and reports as required under 
the catch monitor program deadlines.
    (ii) Report for his or her scheduled debriefing and complete all 
debriefing responsibilities.
    (7) Provide catch monitor salaries and benefits. A catch monitor 
provider must provide to its catch monitor employees salaries and any 
other benefits and personnel services in accordance with the terms of 
each catch monitor's contract.
    (8) Provide catch monitor assignment logistics.
    (i) A catch monitor provider must ensure each of its catch monitors 
under contract:

[[Page 78379]]

    (A) Has an individually assigned mobile or cell phones, in working 
order, for all necessary communication. A catch monitor provider may 
alternatively compensate catch monitors for the use of the catch 
monitor's personal cell phone or pager for communications made in 
support of, or necessary for, the catch monitor's duties.
    (B) Has Internet access for catch monitor program communications 
and data submission
    (C) Remains available to NOAA Office for Law Enforcement and the 
catch monitor program until the completion of the catch monitors' 
debriefing.
    (D) Receives all necessary transportation, including arrangements 
and logistics, of catch monitors to the location of assignment, to all 
subsequent assignments during that assignment, and to the debriefing 
location when an assignment ends for any reason; and
    (E) Receives lodging, per diem, and any other services necessary to 
catch monitors assigned to first receivers, as specified in the 
contract between the catch monitor and catch monitor provider.
    (F) While under contract with a permitted catch monitor provider, 
catch monitor shall be provided with accommodations in accordance with 
the contract between the catch monitor and the catch monitor provider. 
If the catch monitor provider is responsible for providing 
accommodations under the contract with the catch monitor, the 
accommodations must be at a licensed hotel, motel, bed and breakfast, 
or other accommodations that have an assigned bed for each catch 
monitor that no other person may be assigned to for the duration of 
that catch monitor's stay.
    (ii) [Reserved]
    (9) Catch monitor assignment limitations and workload.
    (i) Not assign a catch monitor to the same first receiver for more 
than 90 calendar days in a 12-month period, unless otherwise authorized 
by NMFS.
    (ii) Not exceed catch monitor assignment limitations and workload 
as outlined in Sec.  660.140(i)(3)(ii), subpart D.
    (10) Maintain communications with catch monitors. A catch monitor 
provider must have an employee responsible for catch monitor activities 
on call 24 hours a day to handle emergencies involving catch monitors 
or problems concerning catch monitor logistics, whenever catch monitors 
are assigned, or in transit, or awaiting first receiver reassignment.
    (11) Maintain communications with the catch monitor program office. 
A catch monitor provider must provide all of the following information 
by electronic transmission (e-mail), fax, or other method specified by 
NMFS.
    (i) Catch monitor training, briefing, and debriefing registration 
materials. This information must be submitted to the catch monitor 
program at least 7 business days prior to the beginning of a scheduled 
catch monitor certification training or briefing session.
    (A) Training registration materials consist of the following:
    (1) Date of requested training;
    (2) A list of catch monitor candidates that includes each 
candidate's full name (i.e., first, middle and last names), date of 
birth, and gender;
    (3) A copy of each candidate's academic transcripts and resume;
    (4) A statement signed by the candidate under penalty of perjury 
which discloses the candidate's criminal convictions;
    (5) Projected candidate assignments. Prior to the completion of the 
training session, the catch monitor provider must submit to the catch 
monitor program a statement of projected catch monitor assignments that 
includes each catch monitor's name and length of catch monitors 
contract.
    (B) Briefing registration materials consist of the following:
    (1) Date and type of requested briefing session;
    (2) List of catch monitors to attend the briefing session, that 
includes each catch monitor's full name (first, middle, and last 
names);
    (3) Projected catch monitor assignments. Prior to the catch 
monitor's completion of the briefing session, the catch monitor 
provider must submit to the catch monitor program a statement of 
projected catch monitor assignments that includes each catch monitor's 
name and length of observer contract.
    (C) Debriefing. The catch monitor program will notify the catch 
monitor provider which catch monitors require debriefing and the 
specific time period the provider has to schedule a date, time, and 
location for debriefing. The catch monitor provider must contact the 
catch monitor program within 5 business days by telephone to schedule 
debriefings.
    (1) Catch monitor providers must immediately notify the catch 
monitor program when catch monitors end their contract earlier than 
anticipated.
    (2) [Reserved]
    (ii) Catch monitor provider contracts. If requested, catch monitor 
providers must submit to the catch monitor program a completed and 
unaltered copy of each type of signed and valid contract (including all 
attachments, appendices, addendums, and exhibits incorporated into the 
contract) between the catch monitor provider and those entities 
requiring catch monitor services under Sec.  660.140(i)(1), subpart D. 
Catch monitor providers must also submit to the catch monitor program 
upon request, a completed and unaltered copy of the current or most 
recent signed and valid contract (including all attachments, 
appendices, addendums, and exhibits incorporated into the contract and 
any agreements or policies with regard to catch monitor compensation or 
salary levels) between the catch monitor provider and the particular 
entity identified by the catch monitor program or with specific catch 
monitors. The copies must be submitted to the catch monitor program via 
e-mail, fax, or mail within 5 business days of the request. Signed and 
valid contracts include the contracts a catch monitor provider has 
with:
    (A) First receivers required to have catch monitor coverage as 
specified at paragraph Sec.  660.140(i)(1), subpart D; and
    (B) Catch monitors.
    (iii) Change in catch monitor provider management and contact 
information. A catch monitor provider must submit to the catch monitor 
program any change of management or contact information submitted on 
the provider's permit application under paragraphs (d)(1) of this 
section within 30 days of the effective date of such change.
    (iv) Catch monitor status report. Each Tuesday, catch monitor 
providers must provide NMFS with an updated list of contact information 
for all catch monitors that includes the catch monitor's name, mailing 
address, e-mail address, phone numbers, first receiver assignment for 
the previous week and whether or not the catch monitor is ``in 
service'', indicating when the catch monitor has requested leave and/or 
is not currently working for the provider.
    (v) Informational materials. Providers must submit to NMFS, if 
requested, copies of any information developed and used by the catch 
monitor providers and distributed to first receivers, including, but 
not limited to, informational pamphlets, payment notification, and 
description of catch monitor duties.
    (vi) Other reports. Reports of the following must be submitted in 
writing to the catch monitor program by the catch monitor provider via 
fax or e-mail address designated by the catch monitor program within 24 
hours after the catch monitor provider becomes aware of the 
information:
    (A) Any information regarding possible catch monitor harassment;

[[Page 78380]]

    (B) Any information regarding any action prohibited under Sec.  
660.12(f);
    (C) Any catch monitor illness or injury that prevents the catch 
monitor from completing any of his or her duties described in the catch 
monitor manual; and
    (D) Any information, allegations or reports regarding catch monitor 
conflict of interest or breach of the standards of behavior described 
in catch monitor provider policy.
    (12) Replace lost or damaged gear. A catch monitor provider must 
replace all lost or damaged gear and equipment issued by NMFS to a 
catch monitor under contract to that provider.
    (13) Confidentiality of information. A catch monitor provider must 
ensure that all records on individual catch monitor performance 
received from NMFS under the routine use provision of the Privacy Act 
or as otherwise required by law remain confidential and are not further 
released to anyone outside the employ of the catch monitor provider 
company to whom the catch monitor was contracted except with written 
permission of the catch monitor.
    (14) Catch monitor program training and certification--(i) A 
training certification signifies the successful completion of the 
training course required to obtain catch monitor certification. This 
endorsement expires when the catch monitor has not been deployed and 
performed sampling duties as required by the catch monitor program 
office for a period of time, specified by the catch monitor program, 
after his or her most recent debriefing. The catch monitor can renew 
the certification by successfully completing training once more.
    (ii) Catch monitor program annual briefing. Each catch monitor must 
attend an annual briefing prior to his or her first deployment within 
any calendar year subsequent to a year in which a training 
certification is obtained. To maintain certification, a catch monitor 
must successfully complete the annual briefing, as specified by the 
catch monitor program. All briefing attendance, performance, and 
conduct standards required by the catch monitor program must be met.
    (iii) Maintaining the validity of a catch monitor certification. 
After initial issuance, a catch monitor must keep their certification 
valid by meeting all of the following requirements specified below:
    (A) Successfully perform their assigned duties as described in the 
Catch Monitor Manual or other written instructions from the catch 
monitor program.
    (B) Accurately record their data, write complete reports, and 
report accurately any observations of suspected violations of 
regulations relevant to conservation of marine resources or their 
environment.
    (C) Not disclose collected data and observations made on board the 
vessel or in the first receiver facility to any person except the owner 
or operator of the observed vessel, first receiver management or an 
authorized officer or NMFS.
    (D) Successfully complete NMFS-approved annual briefings as 
prescribed by the catch monitor program.
    (E) Successful completion of a briefing by a catch monitor consists 
of meeting all attendance and conduct standards issued in writing at 
the start of training; meeting all performance standards issued in 
writing at the start of training for assignments, tests, and other 
evaluation tools; and completing all other briefing requirements 
established by the catch monitor program.
    (F) Successfully meet all expectations in all debriefings including 
reporting for assigned debriefings.
    (G) Submit all data and information required by the catch monitor 
program within the program's stated guidelines.

0
11. Section 660.18 is revised to read as follows:


Sec.  660.18   Certification and decertification procedures for catch 
monitors and catch monitor providers.

    (a) Certification official. The Regional Administrator (or a 
designee) will designate a NMFS catch monitor certification official 
who will make decisions on whether to issue or deny catch monitor or 
catch monitor provider certification pursuant to the regulations at 
Sec. Sec.  660.17 and 660.18, subpart C.
    (b) Agency determinations on certifications. (1) Issuance of 
certifications--Certification may be issued upon determination by the 
certification official that the candidate has successfully met all 
requirements for certification as specified in:
    (i) Sec.  660.17(b) for catch monitors; and
    (ii) Sec.  660.17(d) for catch monitor providers.
    (2) Denial of a certification. The NMFS certification official will 
issue a written determination identifying the reasons for denial of a 
certification.
    (c) Limitations on conflict of interest for catch monitors. (1) 
Catch monitors must not have a direct financial interest, other than 
the provision of observer or catch monitor services, in a North Pacific 
fishery managed pursuant to an FMP for the waters off the coast of 
Alaska, Alaska state waters, or in a Pacific Coast fishery managed by 
either the state or Federal Governments in waters off Washington, 
Oregon, or California, including but not limited to:
    (i) Any ownership, mortgage holder, or other secured interest in a 
vessel, shore-based or floating stationary processor facility involved 
in the catching, taking, harvesting or processing of fish,
    (ii) Any business involved with selling supplies or services to any 
vessel, shore-based or floating stationary processing facility; or
    (iii) Any business involved with purchasing raw or processed 
products from any vessel, shore-based or floating stationary processing 
facilities.
    (2) Must not solicit or accept, directly or indirectly, any 
gratuity, gift, favor, entertainment, loan, or anything of monetary 
value from anyone who either conducts activities that are regulated by 
NMFS or has interests that may be substantially affected by the 
performance or nonperformance of the catch monitor's official duties.
    (3) May not serve as a catch monitor at any shoreside or floating 
stationary processing facility owned or operated where a person was 
previously employed in the last two years.
    (4) May not solicit or accept employment as a crew member or an 
employee of a vessel, or shoreside processor while employed by a catch 
monitor provider.
    (5) Provisions for remuneration of catch monitors under this 
section do not constitute a conflict of interest.
    (d) Limitations on conflict of interest for catch monitor 
providers. Catch monitor providers must not have a direct financial 
interest, other than the provision of observer or catch monitor 
services, in a North Pacific fishery managed pursuant to an FMP for the 
waters off the coast of Alaska, Alaska state waters, or in a Pacific 
Coast fishery managed by either the state or Federal Governments in 
waters off Washington, Oregon, or California, including but not limited 
to:
    (1) Any ownership, mortgage holder, or other secured interest in a 
vessel, shore-based or floating stationary processor facility involved 
in the catching, taking, harvesting or processing of fish,
    (2) Any business involved with selling supplies or services to any 
vessel, shore-based or floating stationary processing facility; or
    (3) Any business involved with purchasing raw or processed products 
from any vessel, shore-based or floating stationary processing 
facilities.
    (e) Decertification. (1) Decertification review official--The 
Regional

[[Page 78381]]

Administrator (or a designee) will designate a decertification review 
official(s), who will have the authority to review certifications and 
issue IADs of decertification.
    (2) Causes for decertification. The decertification official may 
initiate decertification proceedings when it is alleged that any of the 
following acts or omissions have been committed:
    (i) Failed to satisfactorily perform the specified duties and 
responsibilities;
    (ii) Failed to abide by the specified standards of conduct;
    (iii) Upon conviction of a crime or upon entry of a civil judgment 
for:
    (A) Commission of fraud or other violation in connection with 
obtaining or attempting to obtain certification, or in performing the 
duties and responsibilities specified in this section;
    (B) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, or 
receiving stolen property;
    (C) Commission of any other offense indicating a lack of integrity 
or honesty that seriously and directly affects the fitness of catch 
monitors.
    (3) Issuance of IAD. Upon determination that decertification is 
warranted under Sec.  660.17(c) or (e), the decertification official 
will issue a written IAD. The IAD will identify the specific reasons 
for the action taken. Decertification is effective 30 calendar days 
after the date on the IAD, unless there is an appeal.
    (4) Appeals. A certified catch monitor who receives an IAD that 
suspends or revokes his or her catch monitor certification may appeal 
the determination within 30 calendar days after the date on the IAD to 
the Office of Administrative Appeals pursuant to Sec.  679.43.

0
12. In Sec.  660.25, paragraphs (b)(1)(i)(A) and (B) are removed; 
paragraph (b)(4)(i)(F) is added; the heading to paragraph (b)(4) and 
paragraphs (b)(4)(iv)(A), (b)(4)(v)(A) through (C), the heading to 
paragraph (b)(4)(vi), and paragraphs (b)(4)(vi)(A), (b)(4)(vi)(C), and 
(g)(4) are revised; and paragraph (e) is added to read as follows:


Sec.  660.25   Permits.

* * * * *
    (b) * * *
    (4) Limited entry permit actions--renewal, combination, stacking, 
change of permit ownership or permit holdership, and change in vessel 
registration--
    (i) * * *
    (F) A limited entry permit will not be renewed until a complete 
economic data collection form is submitted as required under Sec.  
660.113(b), (c) and (d), subpart D. The permit renewal will be marked 
incomplete until the required information is submitted.
* * * * *
    (iv) Changes in permit ownership and permit holder--(A) General. 
The permit owner may convey the limited entry permit to a different 
person. The new permit owner will not be authorized to use the permit 
until the change in permit ownership has been registered with and 
approved by the SFD. The SFD will not approve a change in permit 
ownership for a limited entry permit with a sablefish endorsement that 
does not meet the ownership requirements for such permit described at 
paragraph (b)(3)(iv)(C) of this section. The SFD will not approve a 
change in permit ownership for a limited entry permit with an MS/CV 
endorsement or an MS permit that does not meet the ownership 
requirements for such permit described at Sec.  660.150(g)(3), subpart 
D, and Sec.  660.150(f)(3), subpart D, respectively. Change in permit 
owner and/or permit holder applications must be submitted to SFD with 
the appropriate documentation described at paragraph (b)(4)(vii) of 
this section.
    (1) During the initial issuance application period for the trawl 
rationalization program, NMFS will not review or approve any request 
for a change in limited entry trawl permit owner, as specified at Sec.  
660.140(d)(8)(viii) for QS permit applicants, at Sec.  
660.150(g)(6)(vii) for MS/CV endorsement applicants, and at Sec.  
660.160(d)(7)(vii) for C/P endorsement applicants. The initial issuance 
application period for the trawl rationalization program will begin on 
either November 1, 2010, or the date upon which the application is 
received by NMFS, whichever occurs first.
    (2) [Reserved]
* * * * *
    (v) Changes in vessel registration of limited entry permits and 
gear endorsements--(A) General. A permit may not be used with any 
vessel other than the vessel registered to that permit. For purposes of 
this section, a permit change in vessel registration occurs when, 
through SFD, a permit owner registers a limited entry permit for use 
with a new vessel. Permit change in vessel registration applications 
must be submitted to SFD with the appropriate documentation described 
at paragraph (b)(4)(vii) of this section. Upon receipt of a complete 
application, and following review and approval of the application, the 
SFD will reissue the permit registered to the new vessel. Applications 
to change vessel registration on limited entry permits with sablefish 
endorsements will not be approved until SFD has received complete 
documentation of permit ownership as described at paragraph 
(b)(3)(iv)(C)(4) and as required under paragraph (b)(4)(vii) of this 
section. Applications to change vessel registration on limited entry 
permits with trawl endorsements or MS permits will not be approved 
until SFD has received complete EDC forms as required under Sec.  
660.114, subpart D.
    (B) Application. A complete application must be submitted to SFD in 
order for SFD to review and approve a change in vessel registration. At 
a minimum, a permit owner seeking to change vessel registration of a 
limited entry permit shall submit to SFD a signed application form and 
his/her current limited entry permit before the first day of the 
cumulative limit period in which they wish to fish. If a permit owner 
provides a signed application and current limited entry permit after 
the first day of a cumulative limit period, the permit will not be 
effective until the succeeding cumulative limit period. SFD will not 
approve a change in vessel registration until it receives a complete 
application, the existing permit, a current copy of the USCG 1270, and 
other required documentation.
    (C) Effective date. Changes in vessel registration on permits will 
take effect no sooner than the first day of the next major limited 
entry cumulative limit period following the date that SFD receives the 
signed permit change in vessel registration form and the original 
limited entry permit, except that changes in vessel registration on MS 
permits and C/P-endorsed permits will take effect immediately upon 
reissuance to the new vessel, and a change in vessel registration on 
MS/CV-endorsed permits will take effect immediately upon reissuance to 
the new vessel only on the second transfer for the year. No change in 
vessel registration is effective until the limited entry permit has 
been reissued as registered with the new vessel.
* * * * *
    (vi) Restriction on frequency of changes in vessel registration--
(A) General. A permit owner may designate the vessel registration for a 
permit as ``unidentified,'' meaning that no vessel has been identified 
as registered for use with that permit. No vessel is authorized to use 
a permit with the vessel registration designated as ``unidentified.'' A 
vessel owner who removes a permit from his vessel and registers that 
permit as ``unidentified'' is not exempt from VMS requirements at

[[Page 78382]]

Sec.  660.14, subpart C unless specifically authorized by that section. 
When a permit owner requests that the permit's vessel registration be 
designated as ``unidentified,'' the transaction is not considered a 
change in vessel registration for purposes of this section. Any 
subsequent request by a permit owner to change from the 
``unidentified'' status of the permit in order to register the permit 
with a specific vessel will be considered a change in vessel 
registration and subject to the restriction on frequency and timing of 
changes in vessel registration.
* * * * *
    (C) Limited entry MS permits and limited entry permits with an MS/
CV or a C/P endorsement. Limited entry MS permits and limited entry 
permits with an MS/CV or a C/P endorsement may be registered to another 
vessel up to two times during the fishing season as long as the second 
change in vessel registration is back to the original vessel. The 
original vessel is either the vessel registered to the permit as of 
January 1, or if no vessel is registered to the permit as of January 1, 
the original vessel is the first vessel to which the permit is 
registered after January 1. After the original vessel has been 
established, the first change in vessel registration would be to 
another vessel, but any second change in vessel registration must be 
back to the original vessel. For an MS/CV-endorsed permit on the second 
change in vessel registration back to the original vessel, that vessel 
must be used to fish exclusively in the MS Coop Program described Sec.  
660.150, and declare in to the limited entry mid water trawl, Pacific 
whiting mothership sector as specified at Sec.  660.13(d)(5)(iv).
* * * * *
    (e) Coop permit--(1) MS coop permit. An MS coop permit conveys a 
conditional privilege to an eligible coop entity to receive and manage 
a coop's allocation of designated species and species groups. An MS 
coop permit is not a limited entry permit. The provisions for the MS 
coop permit, including eligibility, annual registration, fees, and 
appeals are described in the MS Coop Program at Sec.  660.150, subpart 
D.
    (2) C/P coop permit. A C/P coop permit conveys a conditional 
privilege to an eligible coop entity to receive and manage a coop's 
allocation of designated species and species groups. A C/P coop permit 
is not a limited entry permit. The provisions for the C/P coop permit, 
including eligibility, annual registration, fees, and appeals are 
described in the C/P Coop Program at Sec.  660.160, subpart D.
* * * * *
    (g) * * *
    (4) Timing of appeals. (i) For permit actions related to the 
application and initial issuance process for QS permits, MS permits, 
MS/CV endorsements, and C/P endorsements for the trawl rationalization 
program listed in subpart D of part 660, if an applicant appeals an 
IAD, the appeal must be postmarked, faxed, or hand delivered to NMFS no 
later than 60 calendar days after the date on the IAD. If the applicant 
does not appeal the IAD within 60 calendar days, the IAD becomes the 
final decision of the Regional Administrator acting on behalf of the 
Secretary of Commerce.
    (ii) For all other permit actions, if an applicant appeals an IAD, 
the appeal must be postmarked, faxed, or hand delivered to NMFS no 
later than 30 calendar days after the date on the IAD. If the applicant 
does not appeal the IAD within 30 calendar days, the IAD becomes the 
final decision of the Regional Administrator acting on behalf of the 
Secretary of Commerce.
    (iii) The time period to submit an appeal begins with the date on 
the IAD. If the last day of the time period is a Saturday, Sunday, or 
Federal holiday, the time period will extend to the close of business 
on the next business day.
* * * * *


Sec.  660.26  [Removed]]

0
13. Section 660.26 is removed.]

0
14. In Sec.  660.55, paragraph (i)(2) is revised to read as follows:


Sec.  660.55  Allocations.

* * * * *
    (i) * * *
    (2) The commercial harvest guideline for Pacific whiting is 
allocated among three sectors, as follows: 34 percent for the C/P Coop 
Program; 24 percent for the MS Coop Program; and 42 percent for the 
Shore based IFQ Program. No more than 5 percent of the Shore based IFQ 
Program allocation may be taken and retained south of 42[deg] N. lat. 
before the start of the primary Pacific whiting season north of 42[deg] 
N. lat. Specific sector allocations for a given calendar year are found 
in Tables 1a and 2a of this subpart. Set asides for other species for 
the at-sea whiting fishery for a given calendar year are found in 
Tables 1d and 2d of this subpart.
* * * * *]

0
15. In Sec.  660.60, paragraph (d)(1), paragraph (h)(2), and paragraph 
(h)(5)(ii) are revised; and paragraphs (h)(5)(iii) and (h)(5)(iv) are 
removed to read as follows:


Sec.  660.60  Specifications and management measures.

* * * * *
    (d) * * *
    (1) Automatic actions are used in the Pacific whiting fishery to:
    (i) Close an at-sea sector of the fishery when that sector's 
Pacific whiting allocation is reached, or is projected to be reached;
    (ii) Close all at-sea sectors or a single sector of the fishery 
when a non-whiting groundfish species with allocations is reached or 
projected to be reached;
    (iii) Reapportion unused allocations of non-whiting groundfish 
species from one at-sea sector of the Pacific whiting fishery to 
another.
    (iv) Implement the Ocean Salmon Conservation Zone, described at 
Sec.  660.131(c)(3), subpart D, when NMFS projects the Pacific whiting 
fishery may take in excess of 11,000 Chinook within a calendar year.
    (v) Implement Pacific Whiting Bycatch Reduction Areas, described at 
Sec.  660.131(c)(4) Subpart D, when NMFS projects a sector-specific 
bycatch limit will be reached before the sector's whiting allocation.
* * * * *
    (h) * * *
    (2) Landing. As stated at Sec.  660.11, subpart C (in the 
definition of ``Landing''), once the offloading of any species begins, 
all fish aboard the vessel are counted as part of the landing and must 
be reported as such. All fish from an IFQ landing must be offloaded 
from the vessel before a new fishing trip begins. Transfer of fish at 
sea is prohibited under Sec.  660.12, subpart C, unless a vessel is 
participating in the primary whiting fishery as part of the mothership 
or catcher/processor sectors, as described at Sec.  660.131(a), subpart 
D. Catcher vessels in the mothership sector must transfer all catch 
from a haul to the same vessel registered to an MS permit prior to the 
gear being set for a subsequent haul. Catch may not be transferred to a 
tender vessel.
* * * * *
    (5) * * *
    (ii) Weight limits and conversions. To determine the round weight, 
multiply the processed weight times the conversion factor. Federal 
commercial groundfish regulations do not supersede more restrictive 
state commercial groundfish regulations, including landings 
requirements regarding groundfish species or the condition in which 
they may be landed.
    (A) Limited entry fixed gear or open access fisheries. The weight 
limit conversion factor established by the state where the fish is or 
will be landed

[[Page 78383]]

will be used to convert the processed weight to round weight for 
purposes of applying the trip limit or other allocation. Weight 
conversions provided herein are those conversions currently in use by 
the States of Washington, Oregon, and California and may be subject to 
change by those states. Fishery participants should contact fishery 
enforcement officials in the state where the fish will be landed to 
determine that state's official conversion factor.
    (1) Sablefish. The following conversion applies to both the limited 
entry fixed gear and open access fisheries when trip limits are in 
effect for those fisheries. For headed and gutted (eviscerated) 
sablefish the weight conversion factor is 1.6 (multiply the headed and 
gutted weight by 1.6 to determine the round weight).
    (2) Lingcod. The following conversions apply in both limited entry 
fixed gear and open access fisheries.
    (i) North of 42[deg] N. lat., for lingcod with the head removed, 
the minimum size limit is 18 inches (46 cm), which corresponds to 22 
inches (56 cm) total length for whole fish.
    (ii) South of 42[deg] N. lat., for lingcod with the head removed, 
the minimum size limit is 19.5 inches (49.5 cm), which corresponds to 
24 inches (61 cm) total length for whole fish.
    (iii) The weight conversion factor for headed and gutted lingcod is 
1.5. The conversion factor for lingcod that has only been gutted with 
the head on is 1.1.
    (B) Shorebased IFQ Program. For vessels landing sorted catch, the 
weight conversions for purposes of applying QP are provided below.
    (1) Sablefish. The weight conversion factor for headed and gutted 
(eviscerated) sablefish is 1.6.
    (2) Lingcod. The following conversions apply:
    (i)The minimum size limit lingcod North of 42[deg] N. lat., with 
the head removed, is 18 inches (46 cm), which corresponds to 22 inches 
(56 cm) total length for whole fish.
    (ii) The minimum size limit for lingcod South of 42[deg] N. lat., 
with the head removed, is 19.5 inches (49.5 cm), which corresponds to 
24 inches (61 cm) total length for whole fish.
    (iii) The weight conversion factor for headed and gutted 
(eviscerated) lingcod is 1.5; for lingcod that has only been gutted 
with the head on, the weight conversion factor is 1.1.
    (3) Pacific whiting. For headed and gutted Pacific whiting (head 
removed just in front of the collar bone and viscera removed,) the 
weight conversion factor is 1.56; and for headed and gutted Pacific 
whiting with the tail removed the weight conversion factor is 2.0.
    (4) Rockfish (including thornyheads), except POP. For headed and 
gutted (eviscerated), the weight conversion factor is 1.75; for headed 
and gutted, western cut (head removed just in front of the collar bone 
and viscera removed,) the weight conversion factor is 1.66; for headed 
and gutted, eastern cut (head removed just behind the collar bone and 
viscera removed,) the weight conversion factor is 2.0.
    (5) Pacific ocean perch (POP). For headed and gutted (eviscerated), 
the weight conversion factor is 1.6.
    (6) Pacific cod. For headed and gutted (eviscerated), the weight 
conversion factor is 1.58.
    (7) Dover sole, English sole, and ``other flatfish''. For headed 
and gutted (eviscerated), the weight conversion factor is 1.53.
    (8) Petrale sole. For headed and gutted (eviscerated), the weight 
conversion factor is 1.51.
    (9) Arrowtooth flounder. For headed and gutted (eviscerated), the 
weight conversion factor is 1.35.
    (10) Starry flounder. For headed and gutted (eviscerated), the 
weight conversion factor is 1.49.
* * * * *]

0
16. Section 660.100 is revised to read as follows:


Sec.  660.100  Purpose and scope.

    This subpart covers the Pacific coast groundfish limited entry 
trawl fishery. Under the trawl rationalization program, the limited 
entry trawl fishery consists of the Shorebased IFQ Program, the MS Coop 
Program, and the C/P Coop Program. Nothing in these regulations shall 
be construed to modify, impair, or supersede the operation of any of 
the antitrust laws. The trawl rationalization program creates limited 
access privileges. These limited access privileges, including the QS or 
IBQ, QP or IBQ pounds, and catch history assignments, may be revoked, 
limited or modified at any time in accordance with the MSA--and do not 
create any right of compensation to the holder of the limited access 
privilege if it is revoked, limited, or modified. The trawl 
rationalization program does not create any right, title, or interest 
in or to any fish before the fish is harvested by the holder and shall 
be considered a grant of permission to the holder of the limited access 
privilege to engage in activities permitted by the trawl 
rationalization program.]

0
17. In Sec.  660.111, the following definitions are removed: ``Pacific 
whiting shoreside first receivers'', ``Pacific whiting shoreside or 
shore-based fishery'', ``Pacific whiting shoreside vessel,'' and 
``Vessel limits''; the definition of ``Pacific whiting IFQ fishery'' is 
revised; and new definitions are added in alphabetical order for: 
``Accumulation limits,'' ``Charterer,'' ``Complete economic data 
collection (EDC) form,'' ``IFQ trip'', ``Lessee,'' and ``Pacific 
whiting IFQ trip''.


Sec.  660.111  Trawl fishery--definitions.

* * * * *
    Accumulation limits mean the maximum extent of permissible 
ownership, control or use of a privilege within the trawl 
rationalization program, and include the following:
    (1) Shorebased IFQ Program. (i) Control limits means the maximum 
amount of QS or IBQ that a person may own or control, as described at 
Sec.  660.140(d)(4).
    (ii) Vessel limits means the maximum amount of QP a vessel can 
hold, acquire, and/or use during a calendar year, and specify the 
maximum amount of QP that may be registered to a single vessel during 
the year (QP Vessel Limit) and, for some species, the maximum amount of 
unused QP registered to a vessel account at any one time (Unused QP 
Vessel Limit), as described at Sec.  660.140(e)(4).
    (2) MS Coop Program. (i) MS permit usage limit means the maximum 
amount of the annual mothership sector Pacific whiting allocation that 
a person owning an MS permit may cumulatively process, no more than 45 
percent, as described at Sec.  660.150(f)(3)(i).
    (ii) MS/CV permit ownership limit means the maximum amount of catch 
history assignment that a person may own, no more than 20 percent of 
the MS sector's allocation of Pacific whiting, as described at Sec.  
660.150(g)(3)(i).
    (iii) Catcher vessel usage limit means the maximum amount of the 
annual mothership sector Pacific whiting allocation that a vessel may 
catch, no more than 30 percent, as described at Sec.  
660.150(g)(3)(ii).
* * * * *
    Charterer means, for the purpose of economic data collection 
program, a person, other than the owner of the vessel, who: entered in 
to any agreement or commitment by which the possession or services of 
the vessel are secured for a period of time for the purposes of 
commercially harvesting or processing fish. A long-term or exclusive 
contract for the sale of all or a portion of the vessel's catch or 
processed products is not considered a charter.
* * * * *
    Complete economic data collection (EDC) form means that a response 
is

[[Page 78384]]

supplied for each question, sub-question, and answer-table cell. If 
particular question or sub-question is not applicable, ``NA'', must be 
entered in the appropriate space on the form. The form must also be 
signed and dated to certify that the information is true and complete 
to the best of the signatory's knowledge.
* * * * *
    IFQ trip means a trip in which the vessel has a valid fishing 
declaration for any of the following: Limited entry midwater trawl, 
non-whiting shorebased IFQ; Limited entry midwater trawl, Pacific 
whiting shorebased IFQ; Limited entry bottom trawl, shorebased IFQ, not 
including demersal trawl; Limited entry demersal trawl, shorebased IFQ; 
or Limited entry groundfish non-trawl, shorebased IFQ.
* * * * *
    Lessee means, for the purpose of economic data collection program, 
a person, other than the owner of the vessel or facility, who: was 
identified as the leaseholder, in a written lease, of the vessel or 
facility, or paid expenses of the vessel or facility, or claimed 
expenses for the vessel or facility as a business expense on a federal 
income tax return, or on a state income tax return.
* * * * *
    Pacific whiting IFQ fishery means the Shorebased IFQ Program 
fishery composed of vessels making Pacific whiting IFQ trips pursuant 
to the requirements at Sec.  660.131 during the primary whiting season 
fishery dates for the Shorebased IFQ Program.
    Pacific whiting IFQ trip means a trip in which a vessel registered 
to a limited entry permit uses legal midwater groundfish trawl gear 
with a valid declaration for limited entry midwater trawl, Pacific 
whiting shorebased IFQ, as specified at Sec.  660.13(d)(5)(iv)(A) 
during the dates for the Pacific whiting IFQ fishery primary season.
* * * * *]

0
18. In Sec.  660.112:
0
a. Paragraph (f) is removed;
0
b. Paragraph (a)(2) is added;
0
c. Paragraph (a)(3)(iii) is added;
0
d. Paragraph (a)(4) is redesignated as paragraph (a)(5), and a new 
paragraph (a)(4) is added; and
0
e. Paragraphs (b) through (e) are added to read as follows:


Sec.  660.112  Trawl fishery--prohibitions.

* * * * *
    (a) * * *
    (2) Sorting. Fail to sort catch consistent with the requirements 
specified at Sec.  660.130(d).
* * * * *
    (3) * * *
    (iii) Failure to submit a complete EDC form to NMFS as required by 
Sec.  660.113.
* * * * *
    (4) Observers.--(i) Fish (including processing, as defined at Sec.  
600.10 of this chapter) in the Shorebased IFQ Program, the MS Coop 
Program, or the C/P Coop Program if NMFS determines the vessel is 
unsafe for an observer.
    (ii) Fish in the Shorebased IFQ Program, the MS Coop Program, or 
the C/P Coop Program without observer coverage.
* * * * *
    (b) Shorebased IFQ Program--(1) General. (i) Own or control by any 
means whatsoever an amount of QS or IBQ that exceeds the Shorebased IFQ 
Program accumulation limits.
    (ii) Fish in the Shorebased IFQ Program with a vessel that does not 
have a valid vessel account or that has a vessel account with a deficit 
(negative balance) for any species/species group.
    (iii) Have any IFQ species/species group catch (landings and 
discards) from an IFQ trip not covered by QP for greater than 30 days 
from the date the deficit (negative balance) from that trip is 
documented, unless the deficit is within the limits of the carryover 
provision specified at Sec.  660.140(e)(5), subpart D, in which case 
the vessel has 30 days after the QP for the following year are issued 
to eliminate the deficit.
    (iv) Transfer the limited entry trawl endorsed permit to another 
vessel or sell the limited entry trawl endorsed permit to another owner 
if the vessel registered to the permit has an overage (catch not 
covered by QP), until the overage is covered, regardless of the amount 
of the overage.
    (v) Use QP by vessels not registered to a limited entry trawl 
permit with a valid vessel account.
    (vi) Use QP in an area or for species/species groups other than 
that for which it is designated.
    (vii) Fish in more than one IFQ management area, specified at Sec.  
660.140(c)(2), on the same trip.
    (viii) Fish on a Pacific whiting IFQ trip with a gear other than 
legal midwater groundfish trawl gear.
    (ix) Fish on a Pacific whiting IFQ trip without a valid declaration 
for limited entry midwater trawl, Pacific whiting shorebased IFQ, as 
specified at Sec.  660.13(d)(5)(iv)(A), subpart C.
    (x) Use midwater trawl gear to fish for Pacific whiting within an 
RCA outside the Pacific whiting IFQ fishery primary season as specified 
at Sec.  660.131(b)(2)(iii).
    (xi) Bring a haul on board before all catch from the previous haul 
has been stowed.
    (xii) Process groundfish at-sea (``at-sea processing'') by vessels 
in the Shorebased IFQ Program regardless of the type of gear used, with 
the following exceptions:
    (A) A vessel that is 75-ft (23-m) or less LOA that harvests whiting 
and, in addition to heading and gutting, cuts the tail off and freezes 
the whiting, is not considered to be a catcher/processor nor is it 
considered to be processing fish, and
    (B) A vessel that has a sablefish at-sea processing exemption, 
defined at Sec.  660.25(b)(3)(iv)(D), subpart C may process sablefish 
at-sea.
    (xiii) Retain any IFQ species/species group onboard a vessel unless 
the vessel has observer coverage during the entire trip and until all 
IFQ species from the trip are offloaded. A vessel may deliver IFQ 
species/species groups to more than one IFQ first receiver, but must 
maintain observer coverage until all IFQ species from the trip are 
offloaded. Once transfer of fish begins, all fish aboard the vessel are 
counted as part of the same landing as defined at Sec.  660.11.
    (xiv) Discard IFQ species/species group at sea unless the observer 
has documented or estimated the discards.
    (xv) Begin a new fishing trip until all fish from an IFQ landing 
have been offloaded from the vessel.
    (2) IFQ first receivers. (i) Accept an IFQ landing without a valid 
first receiver site license.
    (ii) Fail to sort fish received from a IFQ landing prior to first 
weighing after offloading as specified at Sec.  660.130(d)(2) for the 
Shorebased IFQ Program, except the vessels declared in to the limited 
entry midwater trawl, Pacific whiting shorebased IFQ at Sec.  
660.13(d)(5)(iv)(A), subpart C may weigh catch on a bulk scale before 
sorting as described at Sec.  660.140(j)(2).
    (iii) Process, sell, or discard any groundfish received from an IFQ 
landing that has not been weighed on a scale that is in compliance with 
requirements at Sec.  660.15, subpart C.
    (iv) Transport catch away from the point of landing before that 
catch has been sorted and weighed by federal groundfish species or 
species group, and recorded for submission on an electronic fish 
ticket. (If fish will be transported to a different location for 
processing, all sorting and weighing to federal groundfish species 
groups must occur before transporting the catch away from the point of 
landing).
    (v) Receive an IFQ landing without coverage by a catch monitor when 
one is required by regulations, unless NMFS has granted a written 
waiver exempting the IFQ first receiver from the catch monitor coverage 
requirements. On a

[[Page 78385]]

case-by-case basis, a temporary written waiver may be granted by the 
Assistant Regional Administrator or designee if he/she determines that 
the failure to obtain coverage of a catch monitor was due to 
circumstances beyond the control of the first receiver. The duration of 
the waiver will be determined on a case-by-case basis.
    (vi) Receive an IFQ landing without a NMFS-accepted catch 
monitoring plan or not in accordance with their NMFS-accepted catch 
monitoring plan.
    (vii) Mix catch from more than one IFQ landing prior to the catch 
being sorted and weighed.
    (viii) Fail to comply with the IFQ first receiver responsibilities 
specified at Sec.  660.140(b)(2).
    (ix) Process, sell, or discard any groundfish received from an IFQ 
landing that has not been accounted for on an electronic fish ticket 
with the identification number for the vessel that delivered the fish.
    (x) Fail to submit, or submit incomplete or inaccurate information 
on any report, application, or statement required under this part.
    (c) MS and C/P Coop Programs. (1) Process Pacific whiting in the 
fishery management area during times or in areas where at-sea 
processing is prohibited for the sector in which the vessel fishes, 
unless:
    (i) The fish are received from a member of a Pacific Coast treaty 
Indian tribe fishing under Sec.  660.50, subpart C;
    (ii) The fish are processed by a waste-processing vessel according 
to Sec.  660.131(h), subpart D; or
    (iii) The vessel is completing processing of Pacific whiting taken 
on board prior to the close of that vessel's primary season.
    (2) During times or in areas where at-sea processing is prohibited, 
take and retain or receive Pacific whiting, except as cargo or fish 
waste, on a vessel in the fishery management area that already has 
processed Pacific whiting on board. An exception to this prohibition is 
provided if the fish are received within the tribal U&A from a member 
of a Pacific Coast treaty Indian tribe fishing under Sec.  660.50, 
subpart C.
    (3) Operate as a waste-processing vessel within 48 hours of a 
primary season for Pacific whiting in which that vessel operates as a 
catcher/processor or mothership, according to Sec.  660.131(h), subpart 
D.
    (4) On a vessel used to fish for Pacific whiting, fail to keep the 
trawl doors on board the vessel, when taking and retention is 
prohibited under Sec.  660.131(b), subpart D.
    (5) Sort or discard any portion of the catch taken by a catcher 
vessel in the mothership sector before the catcher vessel observer 
completes sampling of the catch, with the exception of minor amounts of 
catch that are lost when the codend is separated from the net and 
prepared for transfer.
    (d) MS Coop Program (coop and non-coop fisheries). (1) Catch, take, 
or harvest fish in the mothership non-coop fishery with a vessel that 
is not registered to a current MS/CV-endorsed limited entry trawl 
permit.
    (2) Receive catch, process catch, or otherwise fish as a mothership 
vessel if it is not registered to a current MS permit.
    (3) Fish with a vessel in the mothership sector, if that vessel was 
used to fish in the C/P fishery in the same calendar year.
    (4) Catch, take, or harvest fish in the MS Coop Program with a 
vessel that does not have a valid VMS declaration for limited entry 
midwater trawl, Pacific whiting mothership sector, as specified at 
Sec.  660.13(d)(5)(iv)(A), subpart C.
    (5) Transfer catch to a vessel that is not registered to an MS 
permit. (i.e. a tender vessel).
    (6) Use a vessel registered to a limited entry permit with a trawl 
endorsement (with or without an MS/CV endorsement) to catch more than 
30 percent of the Pacific whiting allocation for the mothership sector.
    (7) Process more than 45 percent of the annual mothership sector's 
Pacific whiting allocation.
    (8) Catch, take, or harvest fish before all catch from any previous 
haul has been transferred to a single vessel registered to an MS 
permit.
    (9) Transfer catch from a single haul to more than one permitted MS 
vessel.
    (10) Catch, take, or harvest fish for a MS coop with a vessel that 
has not been identified by the coop as a vessel authorized to harvest 
that coop's allocation.
    (11) Catch, take, or harvest fish in the non-coop fishery with a 
vessel registered to an MS/CV-endorsed permit in the same year the MS/
CV-endorsed permit was registered to a vessel that fished as a member 
of a coop in the MS Coop Program.
    (12) Sort or discard any portion of the catch taken by a catcher 
vessel in the mothership sector before the catcher vessel observer 
completes sampling of the catch, except for minor operational amounts 
of catch lost by a catcher vessel provided the observer has accounted 
for the discard (i.e., a maximized retention fishery).
    (13) Mix catch from more than one haul before the observer 
completes their collection of catch for sampling.
    (14) Take deliveries without a valid scale inspection report signed 
by an authorized scale inspector on board the vessel.
    (15) Sort, process, or discard catch delivered to a mothership 
before the catch is weighed on a scale that meets the requirements of 
Sec.  660.15(b), including the daily test requirements.
    (e) C/P Coop Program. (1) Fish with a vessel in the catcher/
processor sector that is not registered to a current C/P-endorsed 
limited entry trawl permit.
    (2) Fish as a catcher/processor vessel in the same year that the 
vessel fishes as a catcher vessel in the mothership fishery.
    (3) Fish as a catcher/processor vessel in the same year that the 
vessel operates as a mothership in the mothership fishery.
    (4) Fish in the C/P Coop Program with a vessel that does not have a 
valid VMS declaration for limited entry midwater trawl, Pacific whiting 
catcher/processor sector, as specified at Sec.  660.13(d)(5)(iv)(A).
    (5) Fish in the C/P Coop Program with a vessel that is not 
identified in the C/P coop agreement.
    (6) Fish in the C/P Coop Program without a valid scale inspection 
report signed by an authorized scale inspector on board the vessel.
    (7) Sort, process, or discard catch before the catch is weighed on 
a scale that meets the requirements of Sec.  660.15(b), including the 
daily test requirements.
    (8) Discard any catch from the codend or net (i.e. bleeding) before 
the observer has completed their data collection.
    (9) Mix catch from more than one haul before the observer completes 
their collection of catch for sampling.]

0
19. In Sec.  660.113, paragraphs (a) through (c) are added, and 
paragraph (d) is revised, to read as follows:


Sec.  660.113  Trawl fishery--recordkeeping and reporting.

* * * * *
    (a) General requirements. (1) All records or reports required by 
this paragraph (a) must: be maintained in English, be accurate, be 
legible, be based on local time, and be submitted in a timely manner.
    (2) Retention of Records. All records used in the preparation of 
records or reports specified in this section or corrections to these 
reports must be maintained for a period of not less than three years 
after the date of landing and must be immediately available upon 
request for inspection by NMFS or authorized officers or others as 
specifically authorized by NMFS. Records used in the preparation of

[[Page 78386]]

required reports specified in this section or corrections to these 
reports that are required to be kept include, but are not limited to, 
any written, recorded, graphic, electronic, or digital materials as 
well as other information stored in or accessible through a computer or 
other information retrieval system; worksheets; weight slips; 
preliminary, interim, and final tally sheets; receipts; checks; 
ledgers; notebooks; diaries; spreadsheets; diagrams; graphs; charts; 
tapes; disks; or computer printouts. All relevant records used in the 
preparation of electronic fish ticket reports or corrections to these 
reports must be maintained for a period of not less than three years 
after the date and must be immediately available upon request for 
inspection by NMFS or authorized officers or others as specifically 
authorized by NMFS.
    (b) Shorebased IFQ Program. (1) Economic data collection (EDC) 
program. The following persons are required to submit an EDC form as 
specified at Sec.  660.114:
    (i) All owners, lessees, and charterers of a catcher vessel 
registered to a limited entry trawl endorsed permit.
    (ii) All owners of a first receiver site license.
    (iii) All owners and lessees of a shorebased processor.
    (2) Electronic vessel logbook. [Reserved]
    (3) Gear switching declaration. Any person with a limited entry 
trawl permit participating in the Shorebased IFQ Program using 
groundfish non-trawl gear (i.e., gear switching) must submit a valid 
gear declaration reporting such participation as specified in Sec.  
660.13(d)(5)(iv)(A).
    (4) Electronic fish ticket. The IFQ first receiver is responsible 
for compliance with all reporting requirements described in this 
paragraph.
    (i) Required information. All IFQ first receivers must provide the 
following types of information: Date of landing, vessel that made the 
delivery, vessel account number, gear type used, catch area, first 
receiver, actual weights of species landed listed by species or species 
group including species with no value, condition landed, number of 
salmon by species, number of Pacific halibut, and any other information 
deemed necessary by the Regional Administrator as specified on the 
appropriate electronic fish ticket form.
    (ii) Submissions. The IFQ first receiver must:
    (A) Include as part of each electronic fish ticket submission, the 
actual scale weight for each groundfish species as specified by 
requirements at Sec.  660.15(c) and the vessel identification number.
    (B) Use for the purpose of submitting electronic fish tickets, and 
maintain in good working order, computer equipment as specified at 
Sec.  660.15(d)(1);
    (C) Install, use, and update as necessary, any NMFS-approved 
software described at Sec.  660.15(d)(3);
    (D) Submit a completed electronic fish ticket for every IFQ landing 
no later than 24 hours after the date the fish are received, unless a 
waiver of this requirement has been granted under provisions specified 
at paragraph (b)(4)(iv) of this section.
    (iii) Revising a submission. In the event that a data error is 
found, electronic fish ticket submissions may be revised by 
resubmitting the revised form. Electronic fish tickets are to be used 
for the submission of final data. Preliminary data, including estimates 
of fish weights or species composition, shall not be submitted on 
electronic fish tickets.
    (iv) Waivers for submission. On a case-by-case basis, a temporary 
written waiver of the requirement to submit electronic fish tickets may 
be granted by the Assistant Regional Administrator or designee if he/
she determines that circumstances beyond the control of a first 
receiver would result in inadequate data submissions using the 
electronic fish ticket system. The duration of the waiver will be 
determined on a case-by-case basis.
    (v) Reporting requirements when a temporary waiver has been 
granted. IFQ First receivers that have been granted a temporary waiver 
from the requirement to submit electronic fish tickets must submit on 
paper the same data as is required on electronic fish tickets within 24 
hours of the date received during the period that the waiver is in 
effect. Paper fish tickets must be sent by facsimile to NMFS, Northwest 
Region, Sustainable Fisheries Division, 206-526- 6736 or by delivering 
it in person to 7600 Sand Point Way, NE., Seattle, WA 98115. The 
requirements for submissions of paper tickets in this paragraph are 
separate from, and in addition to existing state requirements for 
landing receipts or fish receiving tickets.
    (c) MS Coop Program (coop and non-coop fisheries)--(1) Economic 
data collection (EDC) program. The following persons are required to 
submit a complete economic data collection form as specified at Sec.  
660.114.
    (i) All owners, lessees, and charterers of a catcher vessel 
registered to a limited entry trawl MS/CV-endorsed permit.
    (ii) All owners, lessees, and charterers of a vessel registered to 
an MS permit.
    (2) NMFS-approved scales--(i) Scale test report form. Mothership 
vessel operators are responsible for conducting scale tests and for 
recording the scale test information on the at-sea scale test report 
form as specified at Sec.  660.15(b), subpart C, for mothership 
vessels.
    (ii) Printed scale reports. Specific requirements pertaining to 
printed scale reports and scale weight print outs are specified at 
Sec.  660.15(b), subpart C, for mothership vessels.
    (iii) Retention of scale records and reports. The vessel must 
maintain the test report form on board until the end of the fishing 
year during which the tests were conducted, and make the report forms 
available to observers, NMFS staff, or authorized officers. In 
addition, the vessel owner must retain the scale test report forms for 
3 years after the end of the fishing year during which the tests were 
performed. All scale test report forms must be signed by the vessel 
operator.
    (3) Annual coop report--(i) The designated coop manager for the 
mothership coop must submit an annual report to the Pacific Fishery 
Management Council for their November meeting each year. The annual 
coop report will contain information about the current year's fishery, 
including:
    (A) The mothership sector's annual allocation of Pacific whiting 
and the permitted mothership coop allocation;
    (B) The mothership coop's actual retained and discarded catch of 
Pacific whiting, salmon, Pacific halibut, rockfish, groundfish, and 
other species on a vessel-by-vessel basis;
    (C) A description of the method used by the mothership coop to 
monitor performance of coop vessels that participated in the fishery;
    (D) A description of any actions taken by the mothership coop in 
response to any vessels that exceed their allowed catch and bycatch; 
and
    (E) Plans for the next year's mothership coop fishery, including 
the companies participating in the cooperative, the harvest agreement, 
and catch monitoring and reporting requirements.
    (ii) The annual coop report submitted to the Pacific Fishery 
Management Council must be finalized to capture any additional fishing 
activity that year and submitted to NMFS by March 31 of the following 
year before a coop permit is issued for the following year.
    (4) Cease fishing report. As specified at Sec.  660.150(c)(4)(ii), 
the designated coop manager, or in the case of an inter-coop agreement, 
all of the designated coop managers must submit a cease fishing report 
to NMFS indicating that harvesting has concluded for the year.

[[Page 78387]]

    (d) C/P Coop Program--(1) Economic data collection (EDC) program. 
All owners, lessees, and charterers of a vessel registered to a C/P-
endorsed limited entry trawl permit are required to submit a complete 
economic data collection form as specified at Sec.  660.114.
    (2) NMFS-approved scales--(i) Scale test report form. Catcher/
processor vessel operators are responsible for conducting scale tests 
and for recording the scale test information on the at-sea scale test 
report form as specified at Sec.  660.15(b), subpart C, for C/P 
vessels.
    (ii) Printed scale reports. Specific requirements pertaining to 
printed scale reports and scale weight print outs are specified at 
Sec.  660.15(b), subpart C, for C/P vessels.
    (iii) Retention of scale records and reports. The vessel must 
maintain the test report form on board until the end of the fishing 
year during which the tests were conducted, and make the report forms 
available to observers, NMFS staff, or authorized officers. In 
addition, the vessel owner must retain the scale test report forms for 
3 years after the end of the fishing year during which the tests were 
performed. All scale test report forms must be signed by the vessel 
operator.
    (3) Annual coop report--(i) The designated coop manager for the C/P 
coop must submit an annual report to the Pacific Fishery Management 
Council for their November meeting each year. The annual coop report 
will contain information about the current year's fishery, including:
    (A) The C/P sector's annual allocation of Pacific whiting;
    (B) The C/P coop's actual retained and discarded catch of Pacific 
whiting, salmon, Pacific halibut, rockfish, groundfish, and other 
species on a vessel-by-vessel basis;
    (C) A description of the method used by the C/P coop to monitor 
performance of cooperative vessels that participated in the fishery;
    (D) A description of any actions taken by the C/P coop in response 
to any vessels that exceed their allowed catch and bycatch; and
    (E) Plans for the next year's C/P coop fishery, including the 
companies participating in the cooperative, the harvest agreement, and 
catch monitoring and reporting requirements.
    (ii) The annual coop report submitted to the Pacific Fishery 
Management Council must be finalized to capture any additional fishing 
activity that year and submitted to NMFS by March 31 of the following 
year before a coop permit is issued for the following year.
    (4) Cease fishing report. As specified at Sec.  660.160(c)(5), the 
designated coop manager must submit a cease fishing report to NMFS 
indicating that harvesting has concluded for the year.

0
20. Section 660.114 is added to read as follows:


Sec.  660.114   Trawl fishery--economic data collection program.

    (a) General. The economic data collection (EDC) program collects 
mandatory economic data from participants in the trawl rationalization 
program. NMFS requires submission of an EDC form to gather ongoing, 
annual data for 2011 and beyond, as well as a onetime collection in 
2011 of baseline economic data from 2009 through 2010.
    (b) Economic data collection program requirements. The following 
fishery participants in the limited entry groundfish trawl fisheries 
are required to comply with the following EDC program requirements:

----------------------------------------------------------------------------------------------------------------
                                                                                      Consequence for failure to
                                                                                        submit (In addition to
                                          Economic data        Who is required to     consequences listed below,
        Fishery  participant               collection            submit an EDC?        failure to submit an EDC
                                                                                      may be a violation of the
                                                                                                MSA.)
----------------------------------------------------------------------------------------------------------------
(1) Limited entry trawl catcher      (i) Baseline (2009 and  All owners, lessees,    (A) For permit owner, a
 vessels.                             2010) economic data.    and charterers of a     limited entry trawl permit
                                                              catcher vessel          application (including MS/
                                                              registered to a         CV-endorsed limited entry
                                                              limited entry trawl     trawl permit) will not be
                                                              endorsed permit at      considered complete until
                                                              any time in 2009 or     the required EDC for that
                                                              2010.                   permit owner associated
                                                                                      with that permit is
                                                                                      submitted, as specified at
                                                                                      Sec.   660.25(b)(4)(i),
                                                                                      subpart C.
                                                                                     (B) For a vessel owner,
                                                                                      participation in the
                                                                                      groundfish fishery
                                                                                      (including, but not
                                                                                      limited to, changes in
                                                                                      vessel registration,
                                                                                      vessel account actions, or
                                                                                      if own QS permit, issuance
                                                                                      of annual QP or IBQ
                                                                                      pounds) will not be
                                                                                      authorized until the
                                                                                      required EDC for that
                                                                                      owner for that vessel is
                                                                                      submitted, as specified,
                                                                                      in part, at Sec.
                                                                                      660.25(b)(4)(v), subpart C
                                                                                      and Sec.   660.140(e),
                                                                                      subpart D.
                                                                                     (C) For a vessel lessee or
                                                                                      charterer, participation
                                                                                      in the groundfish fishery
                                                                                      (including, but not
                                                                                      limited to, issuance of
                                                                                      annual QP or IBQ pounds if
                                                                                      own QS or IBQ) will not be
                                                                                      authorized, until the
                                                                                      required EDC for their
                                                                                      operation of that vessel
                                                                                      is submitted.

[[Page 78388]]

 
                                     (ii) Annual/ongoing     All owners, lessees,    (A) For permit owner, a
                                      (2011 and beyond)       and charterers of a     limited entry trawl permit
                                      economic data.          catcher vessel          application (including MS/
                                                              registered to a         CV-endorsed limited entry
                                                              limited entry trawl     trawl permit) will not be
                                                              endorsed permit at      considered complete until
                                                              any time in 2011 and    the required EDC for that
                                                              beyond.                 permit owner associated
                                                                                      with that permit is
                                                                                      submitted, as specified at
                                                                                      Sec.   660.25(b)(4)(i),
                                                                                      subpart C.
                                                                                     (B) For a vessel owner,
                                                                                      participation in the
                                                                                      groundfish fishery
                                                                                      (including, but not
                                                                                      limited to, changes in
                                                                                      vessel registration,
                                                                                      vessel account actions, or
                                                                                      if own QS permit, issuance
                                                                                      of annual QP or IBQ
                                                                                      pounds) will not be
                                                                                      authorized until the
                                                                                      required EDC for that
                                                                                      owner for that vessel is
                                                                                      submitted, as specified,
                                                                                      in part, at Sec.
                                                                                      660.25(b)(4)(v), subpart C
                                                                                      and Sec.   660.140(e),
                                                                                      subpart D.
                                                                                     (C) For a vessel lessee or
                                                                                      charterer, participation
                                                                                      in the groundfish fishery
                                                                                      (including, but not
                                                                                      limited to, issuance of
                                                                                      annual QP or IBQ pounds if
                                                                                      own QS or IBQ) will not be
                                                                                      authorized, until the
                                                                                      required EDC for their
                                                                                      operation of that vessel
                                                                                      is submitted.
(2) Motherships....................  (i) Baseline (2009 and  All owners, lessees,    (A) For permit owner, an MS
                                      2010) economic data.    and charterers of a     permit application will
                                                              mothership vessel       not be considered complete
                                                              that received whiting   until the required EDC for
                                                              in 2009 or 2010 as      that permit owner
                                                              recorded in NMFS'       associated with that
                                                              NORPAC database.        permit is submitted, as
                                                                                      specified at Sec.
                                                                                      660.25(b)(4)(i), subpart
                                                                                      C.
                                                                                     (B) For a vessel owner,
                                                                                      participation in the
                                                                                      groundfish fishery
                                                                                      (including, but not
                                                                                      limited to, changes in
                                                                                      vessel registration) will
                                                                                      not be authorized until
                                                                                      the required EDC for that
                                                                                      owner for that vessel is
                                                                                      submitted, as specified,
                                                                                      in part, at Sec.
                                                                                      660.25(b)(4)(v), subpart
                                                                                      C.
                                                                                     (C) For a vessel lessee or
                                                                                      charterer, participation
                                                                                      in the groundfish fishery
                                                                                      will not be authorized,
                                                                                      until the required EDC for
                                                                                      their operation of that
                                                                                      vessel is submitted.
                                     (ii) Annual/ongoing     All owners, lessees,    (A) For permit owner, an MS
                                      (2011 and beyond)       and charterers of a     permit application will
                                      economic data.          mothership vessel       not be considered complete
                                                              registered to an MS     until the required EDC for
                                                              permit at any time in   that permit owner
                                                              2011 and beyond.        associated with that
                                                                                      permit is submitted, as
                                                                                      specified at Sec.
                                                                                      660.25(b)(4)(i), subpart
                                                                                      C.
                                                                                     (B) For a vessel owner,
                                                                                      participation in the
                                                                                      groundfish fishery
                                                                                      (including, but not
                                                                                      limited to, changes in
                                                                                      vessel registration) will
                                                                                      not be authorized until
                                                                                      the required EDC for that
                                                                                      owner for that vessel is
                                                                                      submitted, as specified,
                                                                                      in part, at Sec.
                                                                                      660.25(b)(4)(v), subpart
                                                                                      C.
                                                                                     (C) For a vessel lessee or
                                                                                      charterer, participation
                                                                                      in the groundfish fishery
                                                                                      will not be authorized,
                                                                                      until the required EDC for
                                                                                      their operation of that
                                                                                      vessel is submitted.
(3) Catcher processors.............  (i) Baseline (2009 and  All owners, lessees,    (A) For permit owner, a C/P-
                                      2010) economic data.    and charterers of a     endorsed limited entry
                                                              catcher processor       trawl permit application
                                                              vessel that harvested   will not be considered
                                                              whiting in 2009 or      complete until the
                                                              2010 as recorded in     required EDC for that
                                                              NMFS' NORPAC database.  permit owner associated
                                                                                      with that permit is
                                                                                      submitted, as specified at
                                                                                      Sec.   660.25(b)(4)(i),
                                                                                      subpart C.
                                                                                     (B) For a vessel owner,
                                                                                      participation in the
                                                                                      groundfish fishery
                                                                                      (including, but not
                                                                                      limited to, changes in
                                                                                      vessel registration) will
                                                                                      not be authorized until
                                                                                      the required EDC for that
                                                                                      owner for that vessel is
                                                                                      submitted, as specified,
                                                                                      in part, at Sec.
                                                                                      660.25(b)(4)(v), subpart
                                                                                      C.
                                                                                     (C) For a vessel lessee or
                                                                                      charterer, participation
                                                                                      in the groundfish fishery
                                                                                      will not be authorized,
                                                                                      until the required EDC for
                                                                                      their operation of that
                                                                                      vessel is submitted.

[[Page 78389]]

 
                                     (ii) Annual/ongoing     All owners, lessees,    (A) For permit owner, a C/P-
                                      (2011 and beyond)       and charterers of a     endorsed limited entry
                                      economic data.          catcher processor       trawl permit application
                                                              vessel registered to    will not be considered
                                                              a catcher processor     complete until the
                                                              permit at any time in   required EDC for that
                                                              2011 and beyond.        permit owner associated
                                                                                      with that permit is
                                                                                      submitted, as specified at
                                                                                      Sec.   660.25(b)(4)(i),
                                                                                      subpart C.
                                                                                     (B) For a vessel owner,
                                                                                      participation in the
                                                                                      groundfish fishery
                                                                                      (including, but not
                                                                                      limited to, changes in
                                                                                      vessel registration) will
                                                                                      not be authorized until
                                                                                      the required EDC for that
                                                                                      owner for that vessel is
                                                                                      submitted, as specified,
                                                                                      in part, at Sec.
                                                                                      660.25(b)(4)(v), subpart
                                                                                      C.
                                                                                     (C) For a vessel lessee or
                                                                                      charterer, participation
                                                                                      in the groundfish fishery
                                                                                      will not be authorized,
                                                                                      until the required EDC for
                                                                                      their operation of that
                                                                                      vessel is submitted.
(4) First receivers/shorebased       (i) Baseline (2009 and  All owners and lessees  A first receiver site
 processors.                          2010) economic data.    of a shorebased         license application for a
                                                              processor and all       particular physical
                                                              buyers that received    location for processing
                                                              groundfish or whiting   and buying will not be
                                                              harvested with a        considered complete until
                                                              limited entry trawl     the required EDC for the
                                                              permit as listed in     applying processor or
                                                              the PacFIN database     buyer is submitted, as
                                                              in 2009 or 2010.        specified at Sec.
                                                                                      660.140(f)(3), subpart D.
                                     (ii) Annual/ongoing     (A) All owners of a     A first receiver site
                                      (2011 and beyond)       first receiver site     license application will
                                      economic data.          license in 2011 and     not be considered complete
                                                              beyond.                 until the required EDC for
                                                                                      that license owner
                                                                                      associated with that
                                                                                      license is submitted, as
                                                                                      specified at Sec.
                                                                                      660.140(f)(3), subpart D.
                                                                                      See paragraph
                                                                                      (b)(4)(ii)(A) of this
                                                                                      table.
                                                             (B) All owners and
                                                              lessees of a shore-
                                                              based processor (as
                                                              defined under
                                                              ``processor'' at Sec.
                                                                660.11, subpart C,
                                                              for purposes of EDC)
                                                              that received round
                                                              or headed-and-gutted
                                                              IFQ species
                                                              groundfish or whiting
                                                              from a first receiver
                                                              in 2011 and beyond.
----------------------------------------------------------------------------------------------------------------

     (c) Submission of the EDC form and deadline--(1) Submission of the 
EDC form. The complete, certified EDC form must be submitted to ATTN: 
Economic Data Collection Program (FRAM Division), NMFS, Northwest 
Fisheries Science Center, 2725 Montlake Boulevard East, Seattle, WA 
98112. A complete EDC form contains responses for all data fields, 
which include but are not limited to costs, labor, earnings, activity 
in a fishery, vessel or plant characteristics, value, quota, 
operational information, location of expenditures and earnings, 
ownership information and leasing information.
    (2) Deadline. Complete, certified EDC forms must be mailed and 
postmarked by or hand-delivered to NMFS NWFSC no later than September 
1, 2011, for baseline data, and, for the annual/ongoing data collection 
beginning September 1, 2012, September 1 each year for the prior year's 
data.
    (d) Confidentiality of information. Information received on an EDC 
form will be considered confidential under applicable law and guidance.
    (e) EDC audit procedures--(1) NMFS reserves the right to conduct 
verification of economic data with the submitter of the form. NMFS may 
employ a third party agent to conduct the audits.
    (2) The submitter of the EDC form must respond to any inquiry by 
NMFS or a NMFS agent within 20 days of the date of issuance of the 
inquiry, unless an extension is granted by NMFS.
    (3) The submitter of the form must provide copies of additional 
data to facilitate verification by NMFS or NMFS' agent upon request. 
The NMFS auditor may review and request copies of additional data 
provided by the submitter, including but not limited to, previously 
audited or reviewed financial statements, worksheets, tax returns, 
invoices, receipts, and other original documents substantiating the 
economic data submitted.


Sec.  660.116  [Removed]

0
21. Section 660.116 is removed.

0
22. In Sec.  660.130, paragraphs (a) and (d) are revised to read as 
follows:


Sec.  660.130   Trawl fishery--management measures.

    (a) General. Limited entry trawl vessels are those vessels 
registered to a limited entry permit with a trawl endorsement and those 
vessels registered to an MS permit. Most species taken in limited entry 
trawl fisheries will be managed with quotas (see Sec.  660.140), 
allocations or set-asides (see Sec.  660.150 or Sec.  660.160), or 
cumulative trip limits (see trip limits in Tables 1 (North) and 1 
(South) of this subpart), size limits (see Sec.  660.60 (h)(5), subpart 
C), seasons (see Pacific whiting at Sec.  660.131(b), subpart D), gear 
restrictions (see paragraph (b) of this section) and closed areas (see 
paragraph (e) of this section and Sec. Sec.  660.70 through 660.79, 
subpart C). The trawl fishery has gear requirements and harvest limits 
that differ by the type of trawl gear on board and the area fished. 
Groundfish

[[Page 78390]]

vessels operating south of Point Conception must adhere to CCA 
restrictions (see paragraph (e)(1) of this section and Sec.  660.70, 
subpart C). The trip limits in Tables 1 (North) and 1 (South) of this 
subpart apply to vessels participating in the limited entry groundfish 
trawl fishery and may not be exceeded. Federal commercial groundfish 
regulations are not intended to supersede any more restrictive state 
commercial groundfish regulations relating to federally-managed 
groundfish.
* * * * *
    (d) Sorting. Under Sec.  660.12(a)(8), subpart C, it is unlawful 
for any person to ``fail to sort, prior to the first weighing after 
offloading, those groundfish species or species groups for which there 
is a trip limit, size limit, scientific sorting designation, quota, 
harvest guideline, or OY, if the vessel fished or landed in an area 
during a time when such trip limit, size limit, scientific sorting 
designation, quota, harvest guideline, or OY applied.'' The states of 
Washington, Oregon, and California may also require that vessels record 
their landings as sorted on their state landing receipt.
    (1) Species and areas--(i) Coastwide. Widow rockfish, canary 
rockfish, darkblotched rockfish, yelloweye rockfish, shortbelly 
rockfish, black rockfish, blue rockfish, minor nearshore rockfish, 
minor shelf rockfish, minor slope rockfish, shortspine and longspine 
thornyhead, Dover sole, arrowtooth flounder, petrale sole, starry 
flounder, English sole, other flatfish, lingcod, sablefish, Pacific 
cod, spiny dogfish, other fish, longnose skate, and Pacific whiting;
    (ii) North of 40[deg]10' N. lat. POP, yellowtail rockfish;
    (iii) South of 40[deg]10' N. lat. Minor shallow nearshore rockfish, 
minor deeper nearshore rockfish, California scorpionfish, chilipepper 
rockfish, bocaccio rockfish, splitnose rockfish, Pacific sanddabs, 
cowcod, bronzespotted rockfish and cabezon.
    (2) Sorting requirements for the Shorebased IFQ Program--(i) First 
receivers. Fish landed at IFQ first receivers (including shoreside 
processing facilities and buying stations that intend to transport 
catch for processing elsewhere) must be sorted, prior to first weighing 
after offloading from the vessel and prior to transport away from the 
point of landing, except the vessels declared in to the limited entry 
midwater trawl, Pacific whiting shorebased IFQ at Sec.  
660.13(d)(5)(iv)(A), subpart C, may weigh catch on a bulk scale before 
sorting as described at Sec.  660.140(j)(2).
    (ii) Catcher vessels. All catch must be sorted to the species 
groups specified in paragraph (d)(1) of this section for vessels with 
limited entry permits, except those retaining all catch during a 
Pacific whiting IFQ trip. The catch must not be discarded from the 
vessel and the vessel must not mix catch from hauls until the observer 
has sampled the catch. Prohibited species must be sorted according to 
the following species groups: Dungeness crab, Pacific halibut, Chinook 
salmon, other salmon. Non-groundfish species must be sorted as required 
by the state of landing.
    (3) Sorting requirements for the at-sea sectors of the Pacific 
whiting fishery.
    (i) Pacific whiting at-sea processing vessels may use an accurate 
in-line conveyor or hopper type scale to derive an accurate total catch 
weight prior to sorting. Immediately following weighing of the total 
catch, the catch must be sorted to the species groups specified in 
paragraph (d)(1) of this section and all incidental catch (groundfish 
and non-groundfish species) must be accurately accounted for and the 
weight of incidental catch deducted from the total catch weight to 
derive the weight of target species.
    (ii) Catcher vessels in the MS sector. If sorting occurs on the 
catcher vessel, the catch must not be discarded from the vessel and the 
vessel must not mix catch from hauls until the observer has sampled the 
catch.
* * * * *

0
23. In Sec.  660.131:
0
a. Paragraphs (a) and (b), the introductory text of paragraph (c), and 
paragraphs (e) and (f) are revised;
0
b. Paragraphs (g), (h), (i) and (k) are removed;
0
c. Paragraph (j) is redesignated as paragraph (g) to read as follows:


Sec.  660.131  Pacific whiting fishery management measures.

* * * * *
    (a) Sectors--(1) The catcher/processor sector, or C/P Coop Program, 
is composed of catcher/processors registered to a limited entry permit 
with a C/P endorsement.
    (2) The mothership sector, or MS Coop Program, is composed of 
motherships and catcher vessels that harvest Pacific whiting for 
delivery to motherships. Motherships are vessels registered to an MS 
permit, and catcher vessels are vessels registered to a limited entry 
permit with an MS/CV endorsement or vessels registered to a limited 
entry permit without an MS/CV endorsement if the vessel is authorized 
to harvest the coop's allocation.
    (3) The Pacific whiting IFQ fishery is composed of vessels that 
harvest Pacific whiting for delivery shoreside to IFQ first receivers 
during the primary season.
    (b) Pacific whiting seasons--(1) Primary seasons. The primary 
seasons for the Pacific whiting fishery are:
    (i) For the Shorebased IFQ Program, Pacific whiting IFQ fishery, 
the period(s) of the large-scale target fishery is conducted after the 
season start date;
    (ii) For catcher/processors, the period(s) when catching and at-sea 
processing is allowed for the catcher/processor sector (after the 
season closes at-sea processing of any fish already on board the 
processing vessel is allowed to continue); and
    (iii) For vessels delivering to motherships, the period(s) when 
catching and at-sea processing is allowed for the mothership sector 
(after the season closes at-sea processing of any fish already on board 
the processing vessel is allowed to continue).
    (2) Different primary season start dates. North of 40[deg]30' N. 
lat., different starting dates may be established for the catcher/
processor sector, the mothership sector, and in the Pacific whiting IFQ 
fishery for vessels delivering to IFQ first receivers north of 42[deg] 
N. lat. and vessels delivering to IFQ first receivers between 42[deg] 
through 40[deg]30' N. lat.
    (i) Procedures. The primary seasons for the whiting fishery north 
of 40[deg]3' N. lat. generally will be established according to the 
procedures of the PCGFMP for developing and implementing harvest 
specifications and apportionments. The season opening dates remain in 
effect unless changed, generally with the harvest specifications and 
management measures.
    (ii) Criteria. The start of a primary season may be changed based 
on a recommendation from the Council and consideration of the following 
factors, if applicable: Size of the harvest guidelines for whiting and 
bycatch species; age/size structure of the whiting population; expected 
harvest of bycatch and prohibited species; availability and stock 
status of prohibited species; expected participation by catchers and 
processors; the period between when catcher vessels make annual 
processor obligations and the start of the fishery; environmental 
conditions; timing of alternate or competing fisheries; industry 
agreement; fishing or processing rates; and other relevant information.
    (iii) Primary whiting season start dates and duration. After the 
start of a primary season for a sector of the whiting fishery, the 
season remains open for that sector until the sector allocation of 
whiting or non-whiting groundfish (with allocations) is reached

[[Page 78391]]

or projected to be reached and the fishery season for that sector is 
closed by NMFS. The starting dates for the primary seasons for the 
whiting fishery are as follows:
    (A) Catcher/processor sector--May 15.
    (B) Mothership sector--May 15.
    (C) Shorebased IFQ Program, Pacific whiting IFQ fishery.
    (1) North of 42[deg] N. lat.--June 15;
    (2) Between 42[deg]-40[deg]30' N. lat.--April 1; and
    (3) South of 40[deg]30' N. lat.--April 15.
    (3) Trip limits in the whiting fishery. The ``per trip'' limit for 
whiting before the regular (primary) season for the shorebased sector 
is announced in Table 1 of this subpart, and is a routine management 
measure under Sec.  660.60(c). This trip limit includes any whiting 
caught shoreward of 100-fm (183-m) in the Eureka, CA area. The ``per 
trip'' limit for other groundfish species for the shorebased sector are 
announced in Table 1 (North) and Table 1 (South) of this subpart and 
apply as follows:
    (i) During the groundfish cumulative limit periods both before and 
after the primary whiting season, vessels may use either small and/or 
large footrope gear, but are subject to the more restrictive trip 
limits for those entire cumulative periods.
    (ii) If, during a primary whiting season, a whiting vessel harvests 
a groundfish species other than whiting for which there is a midwater 
trip limit, then that vessel may also harvest up to another footrope-
specific limit for that species during any cumulative limit period that 
overlaps the start or end of the primary whiting season.
    (c) Closed areas. Vessels fishing in the Pacific whiting primary 
seasons for the Shorebased IFQ Program, MS Coop Program, or C/P Coop 
Program shall not target Pacific whiting with midwater trawl gear in 
the following portions of the fishery management area:
* * * * *
    (e) At-sea processing. Whiting may not be processed at sea south of 
42[deg]00' N. lat. (Oregon-California border), unless by a waste-
processing vessel as authorized under paragraph (g) of this section.
    (f) Time of day. Vessels fishing in the Pacific whiting primary 
seasons for the Shorebased IFQ Program, MS Coop Program or C/P Coop 
Program shall not target Pacific whiting with midwater trawl gear in 
the fishery management area south of 42[deg]00' N. lat. between 0001 
hours to one-half hour after official sunrise (local time). During this 
time south of 42[deg]00'N. lat., trawl doors must be on board any 
vessel used to fish for whiting and the trawl must be attached to the 
trawl doors. Official sunrise is determined, to the nearest 5[deg] 
lat., in The Nautical Almanac issued annually by the Nautical Almanac 
Office, U.S. Naval Observatory, and available from the U.S. Government 
Printing Office.
* * * * *

0
24. In Sec.  660.140:
0
a. Paragraphs (a), (d)(1), (d)(4)(i)(C), (d)(4)(iv), and (d)(8)(ix) are 
revised;
0
b. The heading of paragraph (b) is revised, and text is added to 
paragraph (b).
0
c. The heading of paragraph (c) and paragraph (c)(1) are revised, 
paragraph (c)(2) is redesignated as paragraph (c)(3) and a new 
paragraph (c)(2) is added, and the newly redesignated paragraph 
(c)(3)(vi) is revised;
0
d. Paragraphs (c)(3)(vii), (d)(2), (d)(3), (d)(5), and (e) through (h) 
are added; and
0
e. Paragraphs (j) through (m) are redesignated as paragraphs (i) 
through (l), the headings of newly designated paragraphs (i) and (k) 
are revised, and text is added to the newly redesignated paragraphs (i) 
through (l) to read as follows:


Sec.  660.140   Shorebased IFQ Program.

* * * * *
    (a) General. The Shorebased IFQ Program requirements in this 
section will be effective beginning January 1, 2011, except for 
paragraphs (d)(4), (d)(6), and (d)(8) of this section, which are 
effective immediately. The Shorebased IFQ Program applies to qualified 
participants in the Pacific Coast Groundfish fishery and includes a 
system of transferable QS for most groundfish species or species 
groups, IBQ for Pacific halibut, and trip limits or set-asides for the 
remaining groundfish species or species groups. NMFS will issue a QS 
permit to eligible participants and will establish a QS account for 
each QS permit owner to track the amount of QS or IBQ and QP or IBQ 
pounds owned by that owner. QS permit owners may own QS or IBQ for IFQ 
species, expressed as a percent of the allocation to the Shorebased IFQ 
Program for that species. NMFS will issue QP or IBQ pounds to QS permit 
owners, expressed in pounds, on an annual basis, to be deposited in the 
corresponding QS account. NMFS will establish a vessel account for each 
eligible vessel owner participating in the Shorebased IFQ Program, 
which is independent of the QS permit and QS account. In order to use 
QP or IBQ pounds, a QS permit owner must transfer the QP or IBQ pounds 
from the QS account into the vessel account for the vessel to which the 
QP or IBQ pounds is to be assigned. Harvests of IFQ species may only be 
delivered to an IFQ first receiver with a first receiver site license. 
In addition to the requirements of this section, the Shorebased IFQ 
Program is subject to the following groundfish regulations of subparts 
C and D:
    (1) Regulations set out in the following sections of subpart C: 
Sec.  660.11 Definitions, Sec.  660.12 Prohibitions, Sec.  660.13 
Recordkeeping and reporting, Sec.  660.14 VMS requirements, Sec.  
660.15 Equipment requirements, Sec.  660.16 Groundfish observer 
program, Sec.  660.20 Vessel and gear identification, Sec.  660.25 
Permits, Sec.  660.55 Allocations, Sec.  660.60 Specifications and 
management measures, Sec.  660.65 Groundfish harvest specifications, 
and Sec. Sec.  660.70 through 660.79 Closed areas.
    (2) Regulations set out in the following sections of subpart D: 
Sec.  660.111 Trawl fishery definitions, Sec.  660.112 Trawl fishery 
prohibitions, Sec.  660.113 Trawl fishery recordkeeping and reporting, 
Sec.  660.120 Trawl fishery crossover provisions, Sec.  660.130 Trawl 
fishery management measures, and Sec.  660.131 Pacific whiting fishery 
management measures.
    (3) The Shorebased IFQ Program may be restricted or closed as a 
result of projected overages within the Shorebased IFQ Program, the MS 
Coop Program, or the C/P Coop Program. As determined necessary by the 
Regional Administrator, area restrictions, season closures, or other 
measures will be used to prevent the trawl sector in aggregate or the 
individual trawl sectors (Shorebased IFQ, MS Coop, or C/P Coop) from 
exceeding an OY, or formal allocation specified in the PCGFMP or 
regulation at Sec.  660.55, subpart C, or Sec. Sec.  660.140, 660.150, 
or 660.160, subpart D.
    (b) Participation requirements and responsibilities--(1) IFQ 
vessels. (i) Vessels must be registered to a groundfish limited entry 
permit, endorsed for trawl gear with no C/P endorsement.
    (ii) To start a fishing trip in the Shorebased IFQ Program, a 
vessel and its owner(s) (as described on the USCG documentation or 
state registration document) must be registered to the same vessel 
account established by NMFS with no deficit (negative balance) for any 
species/species group.
    (iii) All IFQ species/species group catch (landings and discards) 
must be covered by QP or IBQ pounds. Any deficit (negative balance in a 
vessel account) must be cured within 30 calendar days from the date the 
deficit from that trip is documented in the vessel account, unless the 
deficit is within the limits of the carryover

[[Page 78392]]

provision at paragraph (e)(5) of this section, in which case the vessel 
may declare out of the IFQ fishery for the remainder of the year in 
which the deficit occurred, and must cure the deficit within 30 days 
after the issuance of QP or IBQ pounds for the following year.
    (iv) Any vessel with a deficit (negative balance) in its vessel 
account is prohibited from fishing that is within the scope of the 
Shorebased IFQ Program until sufficient QP or IBQ pounds are 
transferred into the vessel account to remove any deficit, regardless 
of the amount of the deficit.
    (v) A vessel account may not have QP or IBQ pounds (used and unused 
combined) in excess of the QP Vessel Limit in any year, and for species 
covered by Unused QP Vessel Limit, may not have QP or IBQ pounds in 
excess of the Unused QP Vessel Limit at any time. These amounts are 
specified at paragraph (e)(4) of this section.
    (vi) Vessels must use either trawl gear as specified at Sec.  
660.130(b), or a legal non-trawl groundfish gear under the gear 
switching provisions as specified at Sec.  660.140(k).
    (vii) Vessels that are registered to MS/CV-endorsed permits may be 
used to fish in the Shorebased IFQ Program provided that the vessel is 
registered to a valid Shorebased IFQ Program vessel account.
    (viii) In the same calendar year, a vessel registered to a trawl 
endorsed limited entry permit with no MS/CV or C/P endorsements may be 
used to fish in the Shorebased IFQ Program if the vessel has a valid 
vessel account, and to fish in the mothership sector for a permitted MS 
coop as authorized by the MS coop.
    (ix) Vessels that are registered to C/P-endorsed permits may not be 
used to fish in the Shorebased IFQ Program.
    (2) IFQ first receivers. The IFQ first receiver must:
    (i) Ensure that all catch removed from a vessel making an IFQ 
delivery is weighed on a scale or scales meeting the requirements 
described in Sec.  660.15(c), subpart C;
    (ii) Ensure that all catch is landed, sorted, and weighed in 
accordance with a valid catch monitoring plan as described in Sec.  
660.140(f)(3)(iii), subpart D.
    (iii) Ensure that all catch is sorted, prior to first weighing, by 
species or species groups as specified at Sec.  660.130(d), except the 
vessels declared in to the limited entry midwater trawl, Pacific 
whiting shorebased IFQ at Sec.  660.13(d)(5)(iv)(A), subpart C may 
weigh catch on a before sorting as described at Sec.  660.140(j)(2).
    (iv) Provide uninhibited access to all areas where fish are or may 
be sorted or weighed to NMFS staff, NMFS-authorized personnel, or 
authorized officer at any time when a delivery of IFQ species, or the 
processing of those species, is taking place.
    (v) Ensure that each scale produces a complete and accurate printed 
record of the weight of all catch in a delivery, unless exempted in the 
NMFS-accepted catch monitoring plan.
    (vi) Retain and make available to NMFS staff, NMFS-authorized 
personnel, or an authorized officer, all printed output from any scale 
used to weigh catch, and any hand tally sheets, worksheets, or notes 
used to determine the total weight of any species.
    (vii) Ensure that each delivery of IFQ catch is monitored by a 
catch monitor and that the catch monitor is on site the entire time the 
delivery is being weighed or sorted.
    (viii) Ensure that sorting and weighing is completed prior to catch 
leaving the area that can be monitored from the observation area.
* * * * *
    (c) IFQ species, management areas, and allocations.
    (1) IFQ species. IFQ species are those groundfish species and 
Pacific halibut in the exclusive economic zone or adjacent state waters 
off Washington, Oregon and California, under the jurisdiction of the 
Pacific Fishery Management Council, for which QS and IBQ will be 
issued. Groupings and area subdivisions for IFQ species are those 
groupings and area subdivisions for which OYs are specified in the 
Tables 1a through 2d, subpart C, and those for which there is an area-
specific precautionary harvest policy. The lists of individual 
groundfish species included in the minor shelf complex north of 
40[deg]10' N. lat., minor shelf complex south of 40[deg]10' N. lat., 
minor slope complex north 40[deg]10' N. lat., minor slope complex south 
of 40[deg]10' N. lat., and in the other flatfish complex are specified 
under the definition of ``groundfish'' at Sec.  660.11. The following 
are the IFQ species:

                               IFQ Species
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
                                ROUNDFISH
------------------------------------------------------------------------
Lingcod
Pacific cod
Pacific whiting
Sablefish N. of 36[deg]
Sablefish S. of 36[deg]
------------------------------------------------------------------------
                                FLATFISH
------------------------------------------------------------------------
Dover sole
English sole
Petrale sole
Arrowtooth flounder
Starry flounder
Other flatfish stock complex
Pacific halibut (IBQ) N. of 40[deg]10'
------------------------------------------------------------------------
                                ROCKFISH
------------------------------------------------------------------------
Pacific ocean perch N. of 40[deg]10'
Widow rockfish
Canary rockfish
Chilipepper rockfish S. of 40[deg]10'
Bocaccio S. of 40[deg]10'
Splitnose rockfish S. of 40[deg]10'
Yellowtail rockfish N. of 40[deg]10'
Shortspine thornyhead N. of 34[deg]27'
Shortspine thornyhead S. of 34[deg]27'
Longspine thornyhead N. of 34[deg]27'
Cowcod S. of 40[deg]10'
Darkblotched rockfish
Yelloweye rockfish
Minor shelf rockfish complex N. of 40[deg]10'
Minor shelf rockfish complex S. of 40[deg]10'
Minor slope rockfish complex N. of 40[deg]10'
Minor slope rockfish complex S. of 40[deg]10'
------------------------------------------------------------------------

     (2) IFQ management areas. A vessel participating in the Shorebased 
IFQ Program may not fish in more than one IFQ management area during a 
trip. IFQ management areas are as follows:
    (i) Between the US/Canada border and 40[deg]10' N. lat.,
    (ii) Between 40[deg]10' N. lat. and 36[deg] N. lat.,
    (iii) Between 36[deg] N. lat. and 34[deg]27' N. lat., and
    (iv) Between 34[deg]27' N. lat. and the US/Mexico border.
* * * * *
    (3) * * *
    (vi) For each IFQ species, NMFS will determine annual sub-
allocations to individual QS accounts by multiplying the percent of QS 
or IBQ registered to the account by the amount of each respective IFQ 
species allocated to the Shorebased IFQ Program for that year. For each 
IFQ species, NMFS will deposit QP or IBQ pounds in the respective QS 
account in the amount of each sub-allocation determined.
    (vii) Reallocations--(A) Reallocation with changes in management 
areas.
    (1) Area subdivision. If at any time after the initial allocation, 
an IFQ species is geographically subdivided, those holding QS or IBQ 
for the IFQ species being subdivided will receive an amount of QS or 
IBQ for each newly created area that is equivalent to the amount they 
held for the area before it was subdivided.
    (2) Area recombination. When two areas are combined for an IFQ 
species, the QS or IBQ held by individuals in each area will be 
adjusted proportionally such that:
    (i) The total QS or IBQ for the area sums to 100 percent, and

[[Page 78393]]

    (ii) A person holding QS or IBQ in the newly created area will 
receive the same amount of total QP or IBQ pounds as they would if the 
areas had not been combined.
    (3) Area line movement. When a management area boundary line is 
moved for an IFQ species, the QS or IBQ held by individuals in each 
area will be adjusted proportionally such that they each maintain their 
same share of the trawl allocation on a coastwide basis (a fishing area 
may expand or decrease, but the individual's QP or IBQ pounds for both 
areas combined wouldn't change because of the change in areas). In 
order to achieve this end, the holders of QS or IBQ in the area being 
reduced will receive QS or IBQ for the area being expanded, such that 
the total QP or IBQ pounds they would be issued will not be reduced as 
a result of the area reduction. Those holding QS or IBQ in the area 
being expanded will have their QS or IBQ reduced such that the total QP 
or IBQ pounds they receive in the year of the line movement will not 
increase as a result of the expansion (nor will it be reduced).
    (B) Reallocation with subdivision of a species group. If at any 
time after the initial allocation an IFQ species which is a species 
group is subdivided, each species or species group resulting from the 
subdivision will be an IFQ species. QS owners for the species group 
being subdivided will receive an amount of QS for each newly created 
IFQ species that is equivalent to the amount they held for the species 
group before it was subdivided. For example, if a person holds one 
percent of a species group before the subdivision, that person will 
hold one percent of the QS for each IFQ species resulting from the 
subdivision.
* * * * *
    (d) QS permits and QS accounts--(1) General. In order to obtain QS 
and/or IBQ, a person must apply for a QS permit. NMFS will determine if 
the applicant is eligible to own QS and/or IBQ in accordance with 
paragraph (d)(2) of this section. If eligible, NMFS will issue a QS 
permit, and will establish a QS account to track QS and IBQ balances 
for all IFQ species identified at Sec.  660.140(c)(1). NMFS will issue 
initial allocations of QS and IBQ in accordance with paragraph (d)(8) 
of this section. Transfers of QS and IBQ, and of QP or IBQ pounds, are 
subject to provisions at paragraph (d)(3) of this section. QS permit 
owners can monitor the status of their QS and IBQ, and associated QP 
and IBQ pounds, throughout the year in their QS account.
    (i) Annual QS adjustments. On or about January 1 each year, QS 
permit owners will be notified, via the IFQ Web site and their QS 
account, of any adjustments to their QS and/or IBQ allocations, for 
each of the IFQ species. Updated QS and/or IBQ values, if applicable, 
will reflect the results of: any recalculation of initial allocation 
formulas resulting from changes in provisional OYs used in the 
allocation formulas or appeals, any redistribution of QS and IBQ (e.g., 
resulting from permanent revocation of applicable permits, subject to 
accumulation limits), and any transfers of QS and/or IBQ made during 
the prior year.
    (ii) Annual QP and IBQ pound allocations. QP and IBQ pounds will be 
deposited into QS accounts annually. QS permit owners will be notified 
of QP deposits via the IFQ Web site and their QS account. QP and IBQ 
pounds will be issued to the nearest whole pound using standard 
rounding rules (i.e. decimal amounts less than 0.5 round down and 0.5 
and greater round up), except that in the first year of the Shorebased 
IFQ Program, issuance of QP for overfished species greater than zero 
but less than one pound will be rounded up to one pound. QS permit 
owners must transfer their QP and IBQ pounds from their QS account to a 
vessel account in order for those QP and IBQ pounds to be fished. QP 
and IBQ pounds must be transferred in whole pounds (i.e. no fraction of 
a QP or IBQ pound can be transferred). All QP and IBQ pounds in a QS 
account must be transferred to a vessel account by September 1 of each 
year in order to be fished.
    (A) Nonwhiting QP annual sub-allocations. NMFS will issue QP for 
IFQ species other than Pacific whiting and Pacific halibut annually by 
multiplying the QS permit owner's QS for each such IFQ species by that 
year's shorebased trawl allocation for that IFQ species. Deposits to QS 
accounts for IFQ species other than Pacific whiting and Pacific halibut 
will be made on or about January 1 each year.
    (B) Pacific whiting QP annual allocation. NMFS will issue QP for 
Pacific whiting annually by multiplying the QS permit owner's QS for 
Pacific whiting by that year's shorebased trawl allocation for Pacific 
whiting.
    (1) In years where the Pacific whiting harvest specification is 
known by January 1, deposits to QS accounts for Pacific whiting will be 
made on or about January 1.
    (2) In years where the Pacific whiting harvest specification is not 
known by January 1, NMFS will issue Pacific whiting QP in two parts. On 
or about January 1, NMFS will deposit Pacific whiting QP based on the 
shorebased trawl allocation multiplied by the lower end of the range of 
potential harvest specifications for Pacific whiting for that year. 
After the final Pacific whiting harvest specifications are established 
later in the year, NMFS will deposit additional QP to the QS account so 
that the total QP issued for that year is equal to the QS permit 
owner's QS for Pacific whiting multiplied by that year's shorebased 
trawl allocation for Pacific whiting.
    (C) Pacific halibut IBQ pounds annual allocation. NMFS will issue 
IBQ pounds for Pacific halibut annually by multiplying the QS permit 
owner's IBQ percent by the shorebased component of the trawl mortality 
limit for that year (expressed in net weight), and dividing by 0.75 to 
convert to round weight pounds. Consistent with Sec.  660.55(m), the 
shorebased component of the trawl mortality limit will be calculated by 
multiplying the total constant exploitation yield of the prior year by 
15 percent, not to exceed 130,000 pounds in the first four years of the 
Shorebased IFQ Program and not to exceed 100,000 pounds starting in the 
fifth year of the Shorebased IFQ Program, less the set-aside amount of 
Pacific halibut to accommodate the incidental catch in the trawl 
fishery south of 40[deg]10' N. latitude and in the at-sea whiting 
fishery. Deposits to QS accounts for Pacific halibut IBQ pounds will be 
made on or about January 1 each year.
    (D) [Reserved]
    (2) Eligibility and registration--(i) Eligibility. Only the 
following persons are eligible to own QS permits:
    (A) A United States citizen, that is eligible to own and control a 
U.S. fishing vessel with a fishery endorsement pursuant to 46 U.S.C. 
12113 (general fishery endorsement requirements and 75 percent 
citizenship requirement for entities);
    (B) A permanent resident alien, that is eligible to own and control 
a U.S. fishing vessel with a fishery endorsement pursuant to 46 U.S.C. 
12113 (general fishery endorsement requirements and 75 percent 
citizenship requirement for entities); or
    (C) A corporation, partnership, or other entity established under 
the laws of the United States or any State, that is eligible to own and 
control a U.S. fishing vessel with a fishery endorsement pursuant to 46 
U.S.C. 12113 (general fishery endorsement requirements and 75 percent 
citizenship requirement for entities). However, there is an exception 
for any entity that owns a mothership that participated in the west 
coast groundfish fishery during the allocation period and is eligible 
to own or control that U.S. fishing vessel

[[Page 78394]]

with a fishery endorsement pursuant to sections 203(g) and 213(g) of 
the AFA.
    (ii) Registration. A QS account will be established by NMFS with 
the issuance of a QS permit. The administrative functions associated 
with the Shorebased IFQ Program (e.g., account registration, landing 
transactions, and transfers) are designed to be accomplished online; 
therefore, a participant must have access to a computer with Internet 
access and must set up online access to their QS account to 
participate. The computer must have Internet browser software installed 
(e.g., Internet Explorer, Netscape, Mozilla Firefox); as well as the 
Adobe Flash Player software version 9.0 or greater. NMFS will mail 
initial QS permit owners instructions to set up online access to their 
QS account. NMFS may require QS account owners that are business 
entities to designate an account manager that may act on behalf of the 
entity and their contact information. NMFS will use the QS account to 
send messages to QS permit owners; it is important for QS permit owners 
to monitor their online QS account and all associated messages.
    (3) Renewal, change of permit ownership, and transfers--(i) 
Renewal. (A) QS permits expire at the end of each calendar year, and 
must be renewed between October 1 and November 30 of each year in order 
to remain in force the following year. A complete QS permit renewal 
package must be received by SFD no later than November 30 to be 
accepted by NMFS.
    (B) Notification to renew QS permits will be sent by SFD by 
September 1 each year to the QS permit owner's most recent address in 
the SFD record. The QS permit owner shall provide SFD with notice of 
any address change within 15 days of the change.
    (C) Any QS permit for which SFD does not receive a QS permit 
renewal request by November 30 will have its QS account inactivated by 
NMFS at the end of the calendar year and the QS permit will not be 
renewed by NMFS for the following year. NMFS will not issue QP or IBQ 
pounds to the inactivated QS account associated with the non-renewed QS 
permit for that year. Any QP or IBQ pounds derived from the QS or IBQ 
in the inactivated QS account will be redistributed among all other QS 
permit owners that renewed their permit by the deadline. Redistribution 
of QP or IBQ pounds to QS permit owners will be proportional to the QS 
or IBQ for each IFQ species. A non-renewed QS permit may be renewed in 
a subsequent year by submission of a complete QS permit renewal package 
during the permit renewal period for that year, and NMFS will issue the 
associated QP or IBQ pounds for that year.
    (D) QS permits will not be renewed until SFD has received a 
complete application for a QS permit renewal, which includes payment of 
required fees, complete documentation of QS permit ownership on the 
Trawl Identification of Ownership Interest Form as required under 
paragraph (d)(4)(iv) of this section, a complete economic data 
collection form if required under Sec.  660.114, subpart D. The QS 
permit renewal will be considered incomplete until the required 
information is submitted. NMFS may require QS account owners that are 
business entities to designate an account manager and their contact 
information through the QS permit renewal process.
    (E) Effective Date. A QS permit is effective on the date given on 
the permit and remains effective until the end of the calendar year.
    (F) IAD and appeals. QS permit renewals are subject to the permit 
appeals process specified at Sec.  660.25(g), subpart C.
    (ii) Change of permit ownership and transfer restrictions--(A) 
Restriction on the transfer of ownership for QS permits. A QS permit 
cannot be transferred to another individual or entity. The QS permit 
owner cannot change or add additional individuals or entities as owners 
of the permit (i.e., cannot change the registered permit owners as 
given on the permit). Any change to the owner of the QS permit requires 
the new owner(s) to apply for a QS permit, and is subject to 
accumulation limits and approval by NMFS.
    (B) Transfers of QS or IBQ or QP or IBQ pounds. (1) General. 
Transfers of QS or IBQ from one QS account to another QS account and 
transfers of QP or IBQ pounds from a QS account to a vessel account 
must be accomplished via the online QS account. During the year there 
may be situations where NMFS deems it necessary to prohibit transfers 
(i.e., account reconciliation, system maintenance, or for emergency 
fishery management reasons). To make a transfer, a QS permit owner must 
initiate a transfer request by logging onto the online QS account. 
Following the instructions provided on the Web site, the QS permit 
owner must enter pertinent information regarding the transfer request 
including, but not limited to: IFQ species, amount of QS, IBQ, QP, or 
IBQ pounds to be transferred for each IFQ species; name and any other 
identifier of the eligible transferee (e.g., QS permit number, vessel 
account number); and the value of the transferred QS, IBQ, QP, or IBQ 
pounds for each IFQ species. The online system will verify whether all 
information has been entered and whether the transfer complies with 
ownership limits or vessel limits, as applicable. If the information is 
not accepted, an electronic message will record as much in the 
transferor's QS account explaining the reason(s). If the information is 
accepted, the online system will record the pending transfer in both 
the transferor's QS account and the transferee's QS account or vessel 
account. The transferee must approve the transfer by electronic 
signature in order for the transfer to be completed. If the transferee 
accepts the transfer, the online system will record the transfer and 
confirm the transaction in both the transferor's QS account and the 
transferee's QS account or vessel account through a transaction 
confirmation notice. Once the transferee accepts the transaction, the 
transaction is final and permanent.
    (2) Transfer of QS or IBQ between QS accounts. After the second 
year of the trawl rationalization program, QS permit owners may 
transfer QS or IBQ to another QS permit owner, subject to accumulation 
limits and approval by NMFS. QS or IBQ is transferred as a percent, 
divisible to one-thousandth of a percent (i.e., greater than or equal 
to 0.001%). During the first 2 years after implementation of the 
program, QS or IBQ cannot be transferred to another QS permit owner, 
except under U.S. court order or authorization and as approved by NMFS. 
QS or IBQ may not be transferred between December 1 through December 31 
each year. QS or IBQ may not be transferred to a vessel account.
    (3) Transfer of QP or IBQ pounds from a QS account to a vessel 
account. QP or IBQ pounds must be transferred in whole pounds (i.e. no 
fraction of a QP can be transferred). QP or IBQ pounds must be 
transferred to a vessel account in order to be used. Transfers of QP or 
IBQ pounds from a QS account to a vessel account are subject to vessel 
accumulation limits and NMFS' approval. All QP or IBQ pounds from a QS 
account must be transferred to one or more vessel accounts by September 
1 each year. Once QP or IBQ pounds are transferred from a QS account to 
a vessel account (accepted by the transferee/vessel owner), they cannot 
be transferred back to a QS account and may only be transferred to 
another vessel account. QP or IBQ pounds may not be transferred from 
one QS account to another QS account.

[[Page 78395]]

    (C) Effective date--(1) Transfer of QS or IBQ between QS accounts 
is effective on the date approved by NMFS.
    (2) Transfer of QP or IBQ pounds from a QS account to a vessel 
account is effective on the date approved by NMFS.
    (D) IAD and appeals. Transfers are subject to the permit appeals 
process specified at Sec.  660.25 (g), subpart C.
* * * * *
    (4) * * *
    (i) * * *
    (C) The Shorebased IFQ Program accumulation limits are as follows:

------------------------------------------------------------------------
                                                              QS and IBQ
                                                               control
                      Species category                        limit (in
                                                               percent)
------------------------------------------------------------------------
Non-whiting groundfish species.............................          2.7
Lingcod--coastwide.........................................          2.5
Pacific cod................................................         12.0
Pacific whiting (shoreside)................................         10.0
Sablefish:
  N. of 36[deg] (Monterey north)...........................          3.0
  S. of 36[deg] (Conception area)..........................         10.0
Pacific ocean perch N. of 40[deg]10'.......................          4.0
Widow rockfish.............................................          5.1
Canary rockfish............................................          4.4
Chilipepper rockfish S. of 40[deg]10'......................         10.0
Bocaccio S. of 40[deg]10'..................................         13.2
Splitnose rockfish S. of 40[deg]10'........................         10.0
Yellowtail rockfish N. of 40[deg]10'.......................          5.0
Shortspine thornyhead:
  N. of 34[deg]27'.........................................          6.0
  S. of 34[deg]27'.........................................          6.0
Longspine thornyhead:
  N. of 34[deg]27'.........................................          6.0
Cowcod S. of 40[deg]10'....................................         17.7
Darkblotched rockfish......................................          4.5
Yelloweye rockfish.........................................          5.7
Minor rockfish complex N. of
40[deg]10':
  Shelf species............................................          5.0
  Slope species............................................          5.0
Minor rockfish complex S. of
40[deg]10':
  Shelf species............................................          9.0
  Slope species............................................          6.0
Dover sole.................................................          2.6
English sole...............................................          5.0
Petrale sole...............................................          3.0
Arrowtooth flounder........................................         10.0
Starry flounder............................................         10.0
Other flatfish stock complex...............................         10.0
Pacific halibut (IBQ) N. of 40[deg]10'.....................          5.4
------------------------------------------------------------------------

* * * * *
    (iv) Trawl identification of ownership interest form. Any person 
that owns a limited entry trawl permit and that is applying for or 
renewing a QS permit shall document those persons that have an 
ownership interest in the limited entry trawl or QS permit greater than 
or equal to 2 percent. This ownership interest must be documented with 
the SFD via the Trawl Identification of Ownership Interest Form. For 
renewal, if the limited entry trawl permit and QS permit have identical 
ownership interest, only one form need be submitted attesting to such 
ownership. SFD will not issue a QS permit unless the Trawl 
Identification of Ownership Interest Form has been completed. Further, 
if SFD discovers through review of the Trawl Identification of 
Ownership Interest Form that a person owns or controls more than the 
accumulation limits and is not authorized to do so under paragraph 
(d)(4)(v) of this section, the person will be notified and the QS 
permit will be issued up to the accumulation limit specified in the QS 
or IBQ control limit table from paragraph (d)(4)(i) of this section. 
NMFS may request additional information of the applicant as necessary 
to verify compliance with accumulation limits.
* * * * *
    (5) Appeals. An appeal to a QS permit or QS account action follows 
the same process as the general permit appeals process as defined at 
Sec.  660.25(g), subpart C.
* * * * *
    (8) * * *
    (ix) Initial Administrative Determination (IAD). NMFS will issue an 
IAD for all complete, certified applications received by the 
application deadline date. If NMFS approves an application for initial 
issuance of QS and IBQ, the applicant will receive a QS permit 
specifying the amounts of QS and IBQ for which the applicant has 
qualified and the applicant will be registered to a QS account. If NMFS 
disapproves or partially disapproves an application, the IAD will 
provide the reasons. As part of the IAD, NMFS will indicate whether the 
QS permit owner qualifies for QS or IBQ in amounts that exceed the 
accumulation limits and are subject to divestiture provisions given at 
paragraph (d)(4)(v) of this section, or whether the QS permit owner 
qualifies for QS or IBQ that exceed the accumulation limits and does 
not qualify to receive the excess under paragraph (d)(4)(v) of this 
section. If the applicant does not appeal the IAD within 60 calendar 
days of the date on the IAD, the IAD becomes the final decision of the 
Regional Administrator acting on behalf of the Secretary of Commerce.
* * * * *
    (e) Vessel accounts--(1) General. In order to participate in the 
Shorebased IFQ Program, a vessel must be registered to an eligible 
limited entry trawl permit. A vessel account will be established on 
request for an owner of a vessel registered to an eligible limited 
entry trawl permit in order to track QP and IBQ pounds. QP or IBQ 
pounds will have the same species/species groups and area designations 
as the QS or IBQ from which it was issued. Annually, QS or IBQ 
(expressed as a percent) are converted to QP or IBQ pounds (expressed 
as a weight) in a QS account. QP or IBQ pounds may be transferred from 
a QS account to a vessel account or from one vessel account to another 
vessel account. QP or IBQ pounds are required to cover catch (landings 
and discards) by limited entry trawl vessels of all IFQ species/species 
groups, except for:
    (i) Gear exception. Vessels with a limited entry trawl permit using 
the following gears would not be required to cover groundfish catch 
with QP or Pacific halibut catch with IBQ pounds: Non-groundfish trawl, 
gear types defined in the coastal pelagic species FMP, gear types 
defined in the highly migratory species FMP, salmon troll, crab pot, 
and limited entry fixed gear when the vessel also has a limited entry 
permit endorsed for fixed gear and has declared that they are fishing 
in the limited entry fixed gear fishery.
    (ii) Species exception. QP are not required for the following 
species: Longspine thornyheads south of 34[deg]27' N. lat., minor 
nearshore rockfish (north and south), black rockfish (coastwide), 
California scorpionfish, cabezon, kelp greenling, shortbelly rockfish, 
and ``other fish'' (as defined at Sec.  660.11, subpart C, under the 
definition of ``groundfish''). For these species, trip limits remain in 
place as specified in the trip limit tables at Table 1 (North) and 
Table 1 (South) of this subpart.
    (2) Eligibility and registration--(i) Eligibility. To establish a 
registered vessel account, a person must own a vessel and that vessel 
must be registered to a groundfish limited entry permit endorsed for 
trawl gear.
    (ii) Registration. A vessel account must be registered with the 
NMFS SFD Permits Office. A vessel account may be established at any 
time during the year. An eligible vessel owner must submit a request in 
writing to NMFS to establish a vessel account. The request must include 
the vessel name; USCG vessel registration number (as given on USCG Form 
1270) or state registration number, if no USCG documentation; all 
vessel owner names (as given on USCG Form 1270, or on state 
registration, as applicable); and business contact information, 
including: Address, phone number, fax number, and e-mail. NMFS may 
require vessel account owners that are business entities to designate 
an account manager that may act on behalf of the entity and their 
contact

[[Page 78396]]

information. Requests for a vessel account must also include the 
following information: A complete economic data collection form as 
required under Sec.  660.113(b), (c) and (d), subpart D, and a complete 
Trawl Identification of Ownership Interest Form as required under 
paragraph (e)(4)(ii) of this section. The request for a vessel account 
will be considered incomplete until the required information is 
submitted. Any change in the legal name of the vessel owner(s) will 
require the new owner to register with NMFS for a vessel account. A 
participant must have access to a computer with Internet access and 
must set up online access to their vessel account to participate. The 
computer must have Internet browser software installed (e.g., Internet 
Explorer, Netscape, Mozilla Firefox); as well as the Adobe Flash Player 
software version 9.0 or greater. NMFS will mail vessel account owners 
instructions to set up online access to their vessel account. NMFS may 
require vessel account owners that are business entities to designate 
an account manager that may act on behalf of the entity and their 
contact information. NMFS will use the vessel account to send messages 
to vessel owners in the Shorebased IFQ Program; it is important for 
vessel owners to monitor their online vessel account and all associated 
messages.
    (3) Renewal, change of account ownership, and transfer of QP or IBQ 
pounds--(i) Renewal. (A) Vessel accounts expire at the end of each 
calendar year, and must be renewed between October 1 and November 30 of 
each year in order to ensure the vessel account is active on January 1 
of the following year. A complete vessel account renewal package must 
be received by SFD no later than November 30 to be accepted by NMFS.
    (B) Notification to renew vessel accounts will be issued by SFD 
prior to September 1 each year to the vessel account owner's most 
recent address in the SFD record. The vessel account owner shall 
provide SFD with notice of any address change within 15 days of the 
change.
    (C) Any vessel account for which SFD does not receive a vessel 
account renewal request by November 30 will have its vessel account 
inactivated by NMFS at the end of the calendar year. NMFS will not 
issue QP or IBQ pounds to the inactivated vessel account. Any QP or IBQ 
pounds in the vessel account will expire and surplus QP or IBQ pounds 
will not be available for carryover. A non-renewed vessel account may 
be renewed in a subsequent year by submission of a complete vessel 
account renewal package.
    (D) Vessel accounts will not be renewed until SFD has received a 
complete application for a vessel account renewal, which includes 
payment of required fees, a complete documentation of permit ownership 
on the Trawl Identification of Ownership Interest Form as required 
under (e)(4)(ii) of this section, and a complete economic data 
collection form as required under Sec.  660.114, subpart D. The vessel 
account renewal will be considered incomplete until the required 
information is submitted. NMFS may require vessel account owners that 
are business entities to designate an account manager that may act on 
behalf of the entity and their contact information.
    (E) Effective Date. A vessel account is effective on the date 
issued by NMFS and remains effective until the end of the calendar 
year.
    (F) IAD and appeals. Vessel account renewals are subject to the 
appeals process specified at Sec.  660.25(g), subpart C.
    (ii) Change in vessel account ownership. Vessel accounts are non-
transferable and ownership of a vessel account cannot change. If the 
ownership of a vessel changes, then a new vessel account must be opened 
by the new owner in order for the vessel to participate in the 
Shorebased IFQ Program.
    (iii) Transfer of QP or IBQ pounds--(A) General. QP or IBQ pounds 
may only be transferred from a QS account to a vessel account or 
between vessel accounts. QP or IBQ pounds cannot be transferred from a 
vessel account to a QS account. Transfers of QP or IBQ pounds are 
subject to accumulation limits. QP or IBQ pounds in a vessel account 
may only be transferred to another vessel account. QP or IBQ pounds 
must be transferred in whole pounds (i.e., no fraction of a QP or IBQ 
pound can be transferred). During the year there may be situations 
where NMFS deems it necessary to prohibit transfers (i.e., account 
reconciliation, system maintenance, or for emergency fishery management 
reasons).
    (B) Transfer procedures. QP or IBQ pound transfers from one vessel 
account to another vessel account must be accomplished via the online 
vessel account. To make a transfer, a vessel account owner must 
initiate a transfer request by logging onto the online vessel account. 
Following the instructions provided on the Web site, the vessel account 
owner must enter pertinent information regarding the transfer request 
including, but not limited to: IFQ species, amount of QP or IBQ pounds 
to be transferred for each IFQ species (in whole pound increments); 
name and any other identifier of the eligible transferee (e.g., USCG 
documentation number or state registration number, as applicable) of 
the eligible vessel account receiving the transfer; and the value of 
the transferred QP or IBQ pounds. The online system will verify whether 
all information has been entered and whether the transfer complies with 
vessel limits, as applicable. If the information is not accepted, an 
electronic message will record as much in the transferor's vessel 
account explaining the reason(s). If the information is accepted, the 
online system will record the pending transfer in both the transferor's 
and the transferee's vessel accounts. The transferee must approve the 
transfer by electronic signature. If the transferee accepts the 
transfer, the online system will record the transfer and confirm the 
transaction in both accounts through a transaction confirmation notice. 
Once the transferee accepts the transaction, the transaction is final 
and permanent. QP or IBQ pounds may be transferred to vessel accounts 
at any time during January 1 through December 14 each year unless 
otherwise notified by NMFS. QP or IBQ pounds may not be transferred 
between December 15 and December 31 each year.
    (4) Accumulation limits--(i) Vessel limits. Vessel accounts may not 
have QP or IBQ pounds in excess of the QP Vessel Limit in any year, 
and, for species covered by Unused QP Vessel Limits, may not have QP or 
IBQ pounds in excess of the Unused QP Vessel Limit at any time. These 
amounts are as follows:

------------------------------------------------------------------------
                                                              Unused QP
                                                 QP vessel      vessel
                                                   limit        limit
               Species category                   (annual       (daily
                                                 limit) (in   limit) (in
                                                  percent)     percent)
------------------------------------------------------------------------
Non-whiting groundfish species................          3.2  ...........

[[Page 78397]]

 
Lingcod--coastwide............................          3.8  ...........
Pacific cod...................................         20.0  ...........
Pacific whiting (shoreside)...................         15.0  ...........
Sablefish:
    N. of 36[deg] (Monterey north)............          4.5  ...........
    S. of 36[deg] (Conception area)...........         15.0  ...........
Pacific ocean perch N. of 40[deg]10'..........          6.0          4.0
Widow rockfish \1\............................          8.5          5.1
Canary rockfish...............................         10.0          4.4
Chilipepper rockfish S. of 40[deg]10'.........         15.0  ...........
Bocaccio S. of 40[deg]10'.....................         15.4         13.2
Splitnose rockfish S. of 40[deg]10'...........         15.0  ...........
Yellowtail rockfish N. of 40[deg]10'..........          7.5  ...........
Shortspine thornyhead:
    N. of 34[deg]27'..........................          9.0  ...........
    S. of 34[deg]27'..........................          9.0  ...........
Longspine thornyhead:
    N. of 34[deg]27'..........................          9.0  ...........
Cowcod S. of 40[deg]10'.......................         17.7         17.7
Darkblotched rockfish.........................          6.8          4.5
Yelloweye rockfish............................         11.4          5.7
Minor rockfish complex N. of 40[deg]10':
    Shelf species.............................          7.5  ...........
    Slope species.............................          7.5  ...........
Minor rockfish complex S. of 40[deg]10':
    Shelf species.............................         13.5  ...........
    Slope species.............................          9.0  ...........
Dover sole....................................          3.9  ...........
English sole..................................          7.5  ...........
Petrale sole..................................          4.5  ...........
Arrowtooth flounder...........................         20.0  ...........
Starry flounder...............................         20.0  ...........
Other flatfish stock complex..................         15.0  ...........
Pacific halibut (IBQ) N. of 40[deg]10'........         14.4          5.4
------------------------------------------------------------------------
\1\ If widow rockfish is rebuilt before initial allocation of QS, the
  vessel limit will be set at 1.5 times the control limit.

    (ii) Trawl identification of ownership interest form. Any person 
that owns a vessel registered to a limited entry trawl permit and that 
is applying for or renewing a vessel account shall document those 
persons that have an ownership interest in the vessel greater than or 
equal to 2 percent. This ownership interest must be documented with the 
SFD via the Trawl Identification of Ownership Interest Form. SFD will 
not issue a vessel account unless the Trawl Identification of Ownership 
Interest Form has been completed. NMFS may request additional 
information of the applicant as necessary to verify compliance with 
accumulation limits.
    (5) Carryover. The carryover provision allows a limited amount of 
surplus QP or IBQ pounds in a vessel account to be carried over from 
one year to the next or allows a deficit in a vessel account in one 
year to be covered with QP or IBQ pounds from a subsequent year, up to 
a carryover limit. The carryover limit is calculated by multiplying the 
carryover percentage by the cumulative total of QP or IBQ pounds (used 
and unused) in a vessel account for the base year, less any transfers 
out of the vessel account or any previous carryover amounts. The 
percentage used for the carryover provision may be changed during the 
biennial specifications and management measures process.
    (i) Surplus QP or IBQ pounds. A vessel account with a surplus of QP 
or IBQ pounds (unused QP or IBQ pounds) for any IFQ species at the end 
of the fishing year may carryover for use in the immediately following 
year an amount of unused QP or IBQ pounds up to its carryover limit. 
The carryover limit for the surplus is calculated as 10 percent of the 
cumulative total QP or IBQ pounds (used and unused, less any transfers 
or any previous carryover amounts) in the vessel account at the end of 
the year. NMFS will credit the carryover amount to the vessel account 
in the immediately following year. If there is a decline in the OY 
between the base year and the following year in which the QP or IBQ 
pounds would be carried over, the carryover amount will be reduced in 
proportion to the reduction in the OY. Surplus QP or IBQ pounds may not 
be carried over for more than one year. Any amount of QP or IBQ pounds 
in a vessel account and in excess of the carryover amount will expire 
on December 31 each year and will not be available for any future use.
    (ii) Deficit QP or IBQ pounds. A vessel account with a deficit 
(negative balance) of QP or IBQ pounds for any IFQ species in the 
current year may cover that deficit with QP or IBQ pounds from the 
following year without incurring a violation if all of the following 
conditions are met:
    (A) The vessel declares out of the Shorebased IFQ Program for the 
year in which the deficit occurred. To declare out of the Shorebased 
IFQ Program, the vessel owner must submit a signed, dated, and 
notarized letter to the NMFS Office of Law Enforcement, declaring the 
vessel owner's intent to declare out of the Shorebased IFQ Program for 
the remainder of the year and invoke the carryover provision to cover 
the deficit. (If the deficit occurs less than 30 days before the end of 
the calendar year, declaring out of the Shorebased IFQ Program for the 
remainder of the year is

[[Page 78398]]

not required, however, the vessel owner must notify the NMFS Office of 
Law Enforcement of the owner's intent to invoke the carryover provision 
to cover the deficit.)
    (B) The amount of QP or IBQ pounds required to cover the deficit 
from the current fishing year is less than or equal to the vessel's 
carryover limit for a deficit. The carryover limit for a deficit is 
calculated as 10 percent of the total cumulative QP or IBQ pounds (used 
and unused, less any transfers or any previous carryover amounts) in 
the vessel account 30 days after the date the deficit is documented; 
and
    (C) Sufficient QP or IBQ pounds are transferred in to the vessel 
account to cure the deficit within 30 days of NMFS' issuance of QP or 
IBQ pounds to QS accounts in the following year.
    (6) Appeals. An appeal to a vessel account action follows the 
appeals process defined at Sec.  660.25(g), subpart C.
    (7) Fees. The Regional Administrator is authorized to charge fees 
for administrative costs associated with the vessel accounts consistent 
with the provisions given at Sec.  660.25(f), subpart C.
    (8) Cost recovery. [Reserved]
    (f) First receiver site license--(1) General. Any IFQ first 
receiver that receives IFQ landings must hold a valid first receiver 
site license. The first receiver site license authorizes the holder to 
receive, purchase, or take custody, control, or possession of an IFQ 
landing at a specific physical site onshore directly from a vessel. 
Once the trawl rationalization program is implemented, a temporary, 
interim first receiver site license will be available by application to 
NMFS and will be valid until June 30, 2011, or until an application for 
a first receiver site license as specified in paragraph (f)(3) of this 
section is approved by NMFS, whichever comes first. An application for 
an interim first receiver site license is subject to all of the 
requirements in this paragraph (f) including the submission of a catch 
monitoring plan, except that the catch monitoring plan in paragraph 
(f)(3)(iii) does not have to have been previously accepted by NMFS and 
the site does not have to have been previously inspected.
    (2) Issuance. (i) First receiver site licenses will only be issued 
to a person registered to a valid license issued by the state of 
Washington, Oregon, or California, and that authorizes the person to 
receive fish from a catcher vessel.
    (ii) A first receiver may apply for a first receiver site license 
at any time during the calendar year.
    (iii) A first receiver site license is valid for one year from the 
date it was issued by NMFS, or until the state license required by 
paragraph (f)(2)(i) of this section is no longer effective, whichever 
occurs first. IFQ first receivers must reapply for a first receiver 
site license each year and whenever a change in the ownership occurs.
    (3) Application process. Persons interested in being licensed as an 
IFQ first receiver must submit a complete application for a first 
receiver site license to NMFS, Northwest Region, Permits Office, ATTN: 
Catch Monitor Coordinator, Bldg. 1, 7600 Sand Point Way NE, Seattle, WA 
98115. NMFS will only consider complete applications for approval. A 
complete application includes:
    (i) State license. A copy of a valid license issued by the state in 
which they operate which allows the person to receive fish from a 
catcher vessel.
    (ii) Contact information. (A) The name of the first receiver,
    (B) The physical location of the first receiver, including the 
street address where the IFQ landings will be received and/or 
processed.
    (C) The name and phone number of the plant manager and any other 
authorized representative who will serve as a point of contact with 
NMFS.
    (iii) A NMFS-accepted catch monitoring plan. All IFQ first 
receivers must prepare and operate under a NMFS-accepted catch 
monitoring plan. NMFS will not issue a first receiver site license to a 
processor that does not have a current, NMFS-accepted catch monitoring 
plan.
    (A) Catch monitoring plan review process. NMFS will accept a catch 
monitoring plan if it meets all the requirements specified in paragraph 
(f)(3)(iii)(C) of this section. The site must be inspected by NMFS 
staff or a NMFS designated inspector prior to acceptance to ensure that 
the first receiver conforms to the elements addressed in the catch 
monitoring plan. If NMFS does not accept a catch monitoring plan for 
any reason, a new or revised catch monitoring plan may be submitted.
    (B) Arranging an inspection. The time and place of a monitoring 
plan inspection must be arranged by submitting a written request for an 
inspection as part of the application for a first receiver site 
license. After receiving a complete application for a first receiver 
site license, NMFS will contact the applicant to schedule a site 
inspection. The inspection request must include:
    (1) Name and signature of the person submitting the application and 
the date of the application;
    (2) Address, telephone number, fax number, and email address (if 
available) of the person submitting the application;
    (3) A proposed catch monitoring plan detailing how the IFQ first 
receiver will meet each of the performance standards in paragraph 
(f)(3)(iii)(C) of this section.
    (C) Contents of a catch monitoring plan. The catch monitoring plan 
must:
    (1) Catch sorting. Describe the amount and location of all space 
used for sorting catch, the number of staff assigned to catch sorting, 
and the maximum rate that catch will flow through the sorting area.
    (2) Monitoring for complete sorting. Detail how IFQ first receiver 
staff will ensure that sorting is complete; what steps will be taken to 
prevent unsorted catch from entering the factory or other areas beyond 
the location where catch sorting and weighing can be monitored from the 
observation area; and what steps will be taken if unsorted catch enters 
the factory or other areas beyond the location where catch sorting and 
weighing can be monitored from the observation area.
    (3) Scales used for weighing IFQ landings. Identify each scale that 
will be used to weigh IFQ landings by the type and capacity and 
describe where it is located and what it will be used for. Each scale 
must be appropriate for its intended use.
    (4) Printed record. Identify all scales that will be used to weigh 
IFQ landings that cannot produce a complete printed record as specified 
at Sec.  660.15(c), subpart C. State how the scale will be used, and 
how the plant intends to produce a complete and accurate record of the 
total weight of each delivery.
    (5) Weight monitoring. Detail how the IFQ first receiver will 
ensure that all catch is weighed and the process used to meet the catch 
weighing requirements specified at paragraph (j) of this section. If a 
catch monitoring plan proposes the use of totes in which IFQ species 
will be weighed, or a deduction for the weight of ice, the catch 
monitoring plan must detail how the process will accurately account for 
the weight of ice and/or totes.
    (6) Delivery points. Identify specific delivery points where catch 
is removed from an IFQ vessel. The delivery point is the first location 
where fish removed from a delivering catcher vessel can be sorted or 
diverted to more than one location. If the catch is pumped from the 
hold of a catcher vessel or a codend, the delivery point will be the 
location where the pump first discharges the

[[Page 78399]]

catch. If catch is removed from a vessel by brailing, the delivery 
point normally will be the bin or belt where the brailer discharges the 
catch.
    (7) Observation area. Designate and describe the observation area. 
The observation area is a location where a catch monitor may monitor 
the flow of fish during a delivery, including: Access to the 
observation area, the flow of fish, and lighting used during periods of 
limited visibility. Standards for the observation area are specified at 
paragraph (i)(4)(ii) of this section.
    (8) Lockable cabinet. Identify the location of a secure, dry, and 
lockable cabinet or locker with the minimum interior dimensions of two 
feet wide by two feet tall by two feet deep for the exclusive use of 
the catch monitor, NMFS staff, or authorized officers.
    (9) Plant liaison. Identify the designated plant liaison. The plant 
liaison responsibilities are specified at paragraph (i)(6) of this 
section.
    (10) First receiver diagram. The catch monitoring plan must be 
accompanied by a diagram of the plant showing:
    (i) The delivery point(s);
    (ii) The observation area;
    (iii) The lockable cabinet;
    (iv) The location of each scale used to weigh catch; and
    (v) Each location where catch is sorted.
    (D) Catch monitoring plan acceptance period and changes. NMFS will 
accept a catch monitoring plan if it meets the performance standards 
specified in paragraph (f)(3)(iii)(C) of this section. For the first 
receiver site license to remain in effect, an owner or manager must 
notify NMFS in writing of any and all changes made in IFQ first 
receiver operations or layout that do not conform to the catch 
monitoring plan.
    (E) Changing a NMFS-accepted catch monitoring plan. An owner and 
manager may change an accepted catch monitoring plan by submitting a 
plan addendum to NMFS. NMFS will accept the modified catch monitoring 
plan if it continues to meet the performance standards specified in 
paragraph (f)(3)(iii)(C) of this section. Depending on the nature and 
magnitude of the change requested, NMFS may require an additional catch 
monitoring plan inspection. A catch monitoring plan addendum must 
contain:
    (1) Name and signature of the person submitting the addendum;
    (2) Address, telephone number, fax number and email address (if 
available) of the person submitting the addendum;
    (3) A complete description of the proposed catch monitoring plan 
change.
    (iv) Completed EDC form. A first receiver site license application 
must include a complete economic data collection form as required under 
Sec.  660.113(b), subpart D. The application for a first receiver site 
license will be marked incomplete until the required information is 
submitted.
    (4) Initial administrative determination. For all complete 
applications, NMFS will issue an IAD that either approves or 
disapproves the application. If approved, the IAD will include a first 
receiver site license. If disapproved, the IAD will provide the reasons 
for this determination.
    (5) Effective date. The first receiver site license is effective 
upon approval and issuance by NMFS and will be effective for one year 
from the date of NMFS issuance.
    (6) Reissuance in subsequent years. Existing license holders must 
reapply annually. If the existing license holder fails to reapply, the 
first receiver's site license will expire one year from the date of 
NMFS issuance of the license. The first receiver will not be authorized 
to receive or process groundfish IFQ species if their first receiver 
site license has expired.
    (7) Change in ownership of an IFQ first receiver. If there are any 
changes to the owner of a first receiver registered to a first receiver 
site license during a calendar year, the first receiver site license is 
void. The new owner of the first receiver must apply to NMFS for a 
first receiver site license. A first receiver site license is not 
transferrable by the license holder to any other person.
    (8) Fees. The Regional Administrator is authorized to charge fees 
for administrative costs associated with processing the application 
consistent with the provisions given at Sec.  660.25(f), subpart C.
    (9) Appeals. If NMFS does not accept the first receiver site 
license application through an IAD, the applicant may appeal the IAD 
consistent with the general permit appeals process defined at Sec.  
660.25(g), subpart C.
    (g) Retention requirements (whiting and non-whiting vessels)--(1) 
Non-whiting vessels. Vessels participating in the Shoreside IFQ Program 
other than vessels participating in the Pacific whiting IFQ fishery 
(non-whiting vessels) may discard IFQ species/species groups, provided 
such discards are accounted for and deducted from QP in the vessel 
account. Non-whiting vessels must discard Pacific halibut and the 
discard mortality must be accounted for and deducted from IBQ pounds in 
the vessel account. Non-whiting vessels may discard non-IFQ species and 
non-groundfish species. The sorting of catch, the weighing and 
discarding of any IBQ and IFQ species, and the retention of IFQ species 
must be monitored by the observer.
    (2) Whiting maximized retention vessels. Maximized retention 
vessels participating in the Pacific whiting IFQ fishery may discard 
minor operational amounts of catch at sea if the observer has accounted 
for the discard (i.e., a maximized retention fishery).
    (3) Whiting vessels sorting at-sea. Vessels participating in the 
Pacific whiting IFQ fishery that sort their catch at sea (whiting 
vessels sorting at-sea) may discard IFQ species/species groups, 
provided such discards are accounted for and deducted from QP in the 
vessel account. Whiting vessels sorting at sea must discard Pacific 
halibut and such discard mortality must be accounted for and deducted 
from IBQ pounds in the vessel account. Whiting vessels sorting at-sea 
may discard non-IFQ species and non-groundfish species. The sorting of 
catch, weighing and discarding of any IFQ or IBQ species must be 
monitored by the observer.
    (h) Observer requirements--(1) Observer coverage requirements. (i) 
Any vessel participating in the Shorebased IFQ Program must carry a 
NMFS-certified observer during any trip until all fish from that trip 
have been offloaded. If a vessel delivers fish from an IFQ trip to more 
than one IFQ first receiver, the observer must remain onboard the 
vessel during any transit between delivery points.
    (ii) Observer deployment limitations and workload. Observer must 
not be deployed for more than 22 calendar days in a calendar month. The 
observer program may issue waivers to allow observers to work more than 
22 calendar days per month when it's anticipated one trip will last 
over 20 days or for issues with observer availability due illness or 
injury of other observers.
    (A) If an observer is unable to perform their duties for any 
reason, the vessel is required to be in port within 36 hours of the 
last haul sampled by the observer.
    (B) [Reserved]
    (iii) Refusal to board. Any boarding refusal on the part of the 
observer or vessel must be immediately reported to the observer program 
and NOAA OLE by the observer provider. The observer must be available 
for an interview with the observer program or NOAA OLE if necessary.
    (2) Vessel responsibilities. An operator and/or crew of a vessel 
required to carry an observer must provide:
    (i) Accommodations and food. (A) Accommodations and food for trips 
less than 24 hours must be equivalent to those provided for the crew.

[[Page 78400]]

    (B) Accommodations and food for trips of 24 hours or more must be 
equivalent to those provided for the crew and must include berthing 
space, a space that is intended to be used for sleeping and is provided 
with installed bunks and mattresses. A mattress or futon on the floor 
or a cot is not acceptable if a regular bunk is provided to any crew 
member, unless other arrangements are approved in advance by the 
Regional Administrator or their designee.
    (ii) Safe conditions. (A) Maintain safe conditions on the vessel 
for the protection of observers including adherence to all U.S. Coast 
Guard and other applicable rules, regulations, statutes, and guidelines 
pertaining to safe operation of the vessel, including, but not limited 
to rules of the road, vessel stability, emergency drills, emergency 
equipment, vessel maintenance, vessel general condition and port bar 
crossings. An observer may refuse boarding or reboarding a vessel and 
may request a vessel to return to port if operated in an unsafe manner 
or if unsafe conditions are identified.
    (B) Have on board a valid Commercial Fishing Vessel Safety Decal 
that certifies compliance with regulations found in 33 CFR Chapter I 
and 46 CFR Chapter I, a certificate of compliance issued pursuant to 46 
CFR 28.710 or a valid certificate of inspection pursuant to 46 U.S.C. 
3311.
    (iii) Computer hardware and software. [Reserved]
    (iv) Vessel position. Allow observer(s) access to the vessel's 
navigation equipment and personnel, on request, to determine the 
vessel's position.
    (v) Access. Allow observer(s) free and unobstructed access to the 
vessel's bridge, trawl or working deck, holding bins, sorting areas, 
cargo hold, and any other space that may be used to hold, process, 
weigh, or store fish at any time.
    (vi) Prior notification. Notify observer(s) at least 15 minutes 
before fish are brought on board to allow sampling the catch.
    (vii) Records. Allow observer(s) to inspect and copy any state or 
Federal logbook maintained voluntarily or as required by regulation.
    (viii) Assistance. Provide all other reasonable assistance to 
enable observer(s) to carry out their duties, including, but not 
limited to:
    (A) Measuring decks, codends, and holding bins.
    (B) Providing a designated working area on deck for the observer(s) 
to collect, sort and store catch samples.
    (C) Collecting samples of catch.
    (D) Collecting and carrying baskets of fish.
    (E) Allowing the observer(s) to collect biological data and 
samples.
    (F) Providing adequate space for storage of biological samples.
    (G) Providing time between hauls to sample and record all catch.
    (H) Sorting retained and discarded catch into quota pound 
groupings.
    (I) Stowing all catch from a haul before the next haul is brought 
aboard.
    (ix) Sampling station. To allow the observer to carry out the 
required duties, the vessel owner must provide an observer sampling 
station that is:
    (A) Accessible. The observer sampling station must be available to 
the observer at all times.
    (B) Limits hazards. To the extent possible, the area should be free 
and clear of hazards including, but not limited to, moving fishing 
gear, stored fishing gear, inclement weather conditions, and open 
hatches.
    (x) Transfers at sea. Transfers at-sea are prohibited.
    (3) Procurement of observer services--(i) Owners of vessels 
required to carry observers under paragraph (a)(1) of this section must 
arrange for observer services from a permitted observer provider, 
except that:
    (A) Vessels are required to procure observer services directly from 
NMFS when NMFS has determined and given notification that the vessel 
must carry NMFS staff or an individual authorized by NMFS in lieu of an 
observer provided by a permitted observer provider.
    (B) Vessels are required to procure observer services directly from 
NMFS and a permitted observer provider when NMFS has determined and 
given notification that the vessel must carry NMFS staff and/or 
individuals authorized by NMFS, in addition to an observer provided by 
a permitted observer provider.
    (ii) [Reserved]
    (4) Application to become an observer provider. Any observer 
provider holding a valid permit issued by the North Pacific observer 
program in 2010 can supply observer services to the west coast trawl 
fishery and will be issued a West Coast Groundfish Observer Program 
permit.
    (5) Observer provider responsibilities.
    (i) Provide qualified candidates to serve as observers. Observer 
providers must provide qualified candidates to serve as observers. To 
be qualified, a candidate must have:
    (A) A Bachelor's degree or higher from an accredited college or 
university with a major in one of the natural sciences;
    (B) Successfully completed a minimum of 30 semester hours or 
equivalent in applicable biological sciences with extensive use of 
dichotomous keys in at least one course;
    (C) Successfully completed at least one undergraduate course each 
in math and statistics with a minimum of 5 semester hours total for 
both; and
    (D) Computer skills that enable the candidate to work competently 
with standard database software and computer hardware.
    (ii) Hiring an observer candidate--(A) The observer provider must 
provide the candidate a copy of NMFS-provided pamphlets, information 
and other literature describing observer duties, for example, the West 
Coast Groundfish Observer Program's sampling manual. Observer job 
information is available from the Observer Program Office's web site at 
http://www.nwfsc.noaa.gov/research/divisions/fram/observer/index.cfm.
    (B) Observer contracts. The observer provider must have a written 
contract or a written contract addendum signed by the observer and 
observer provider prior to the observer's deployment with the following 
clauses:
    (1) That all the observer's in-season messages and catch reports 
required to be sent while deployed are delivered to the Observer 
Program Office as specified by written Observer Program instructions;
    (2) That the observer inform the observer provider prior to the 
time of embarkation if he or she is experiencing any new mental illness 
or physical ailments or injury since submission of the physician's 
statement as required as a qualified observer candidate that would 
prevent him or her from performing their assigned duties; and
    (3) That every observer completes a basic cardiopulmonary 
resuscitation/first aid course prior to the end of the NMFS West Coast 
Groundfish Observer Training class.
    (iii) Ensure that observers complete duties in a timely manner. An 
observer provider must ensure that observers employed by that observer 
provider do the following in a complete and timely manner:
    (A) Submit to NMFS all data, logbooks and reports and biological 
samples as required under the observer program policy deadlines.
    (B) Report for his or her scheduled debriefing and complete all 
debriefing responsibilities; and
    (C) Return all sampling and safety gear to the Observer Program 
Office at the termination of their contract.
    (D) Immediately report to the Observer Program Office and the NOAA 
OLE any refusal to board an assigned vessel.

[[Page 78401]]

    (iv) Observers provided to vessel. (A) Must have a valid West Coast 
Groundfish observer certification endorsement;
    (B) Must not have informed the provider prior to the time of 
embarkation that he or she is experiencing a mental illness or a 
physical ailment or injury developed since submission of the 
physician's statement, as required in paragraph (h)(5)(xi)(B) of this 
section that would prevent him or her from performing his or her 
assigned duties; and
    (C) Must have successfully completed all NMFS required training and 
briefing before deployment.
    (v) Respond to industry requests for observers. An observer 
provider must provide an observer for deployment pursuant to the terms 
of the contractual relationship with the vessel to fulfill vessel 
requirements for observer coverage under paragraphs (h)(5)(xi)(D) of 
this section. An alternate observer must be supplied in each case where 
injury or illness prevents the observer from performing his or her 
duties or where the observer resigns prior to completion of his or her 
duties. If the observer provider is unable to respond to an industry 
request for observer coverage from a vessel for whom the provider is in 
a contractual relationship due to the lack of available observers by 
the estimated embarking time of the vessel, the provider must report it 
to NMFS at least 4 hours prior to the vessel's estimated embarking 
time.
    (vi) Provide observer salaries and benefits. An observer provider 
must provide to its observer employees salaries and any other benefits 
and personnel services in accordance with the terms of each observer's 
contract.
    (vii) Provide observer deployment logistics. (A) An observer 
provider must ensure each of its observers under contract:
    (1) Has an individually assigned mobile or cell phones, in working 
order, for all necessary communication. An observer provider may 
alternatively compensate observers for the use of the observer's 
personal cell phone or pager for communications made in support of, or 
necessary for, the observer's duties.
    (2) Calls into the NMFS deployment hotline upon departing and 
arriving into port for each trip to leave the following information: 
observer name, phone number, vessel departing on, expected trip end 
date and time.
    (3) Remains available to NOAA Office for Law Enforcement and the 
Observer Program until the conclusion of debriefing.
    (4) Receives all necessary transportation, including arrangements 
and logistics, of observers to the initial location of deployment, to 
all subsequent vessel assignments during that deployment, and to the 
debriefing location when a deployment ends for any reason; and
    (5) Receives lodging, per diem, and any other services necessary to 
observers assigned to fishing vessels.
    (i) An observer under contract may be housed on a vessel to which 
he or she is assigned: Prior to their vessel's initial departure from 
port; for a period not to exceed twenty-four hours following the 
completion of an offload when the observer has duties and is scheduled 
to disembark; or for a period not to exceed twenty-four hours following 
the vessel's arrival in port when the observer is scheduled to 
disembark.
    (ii) During all periods an observer is housed on a vessel, the 
observer provider must ensure that the vessel operator or at least one 
crew member is aboard.
    (iii) Otherwise, each observer between vessels, while still under 
contract with a permitted observer provider, shall be provided with 
accommodations in accordance with the contract between the observer and 
the observer provider. If the observer provider is responsible for 
providing accommodations under the contract with the observer, the 
accommodations must be at a licensed hotel, motel, bed and breakfast, 
or other shoreside accommodations that has an assigned bed for each 
observer that no other person may be assigned to for the duration of 
that observer's stay. Additionally, no more than four beds may be in 
any room housing observers at accommodations meeting the requirements 
of this section.
    (viii) Observer deployment limitations and workload. (A) Not deploy 
an observer on the same vessel more than 90 calendar days in a 12-month 
period, unless otherwise authorized by NMFS.
    (B) Not exceed observer deployment limitations and workload as 
outlined in paragraph (h)(1)(ii) of this section.
    (ix) Verify vessel's safety decal. An observer provider must verify 
that a vessel has a valid USCG safety decal as required under paragraph 
(h)(2)(ii)(B) of this section before an observer may get underway 
aboard the vessel. One of the following acceptable means of 
verification must be used to verify the decal validity:
    (A) An employee of the observer provider, including the observer, 
visually inspects the decal aboard the vessel and confirms that the 
decal is valid according to the decal date of issuance; or
    (B) The observer provider receives a hard copy of the USCG 
documentation of the decal issuance from the vessel owner or operator.
    (x) Maintain communications with observers. An observer provider 
must have an employee responsible for observer activities on call 24 
hours a day to handle emergencies involving observers or problems 
concerning observer logistics, whenever observers are at sea, in 
transit, or in port awaiting vessel reassignment.
    (xi) Maintain communications with the Observer Program Office. An 
observer provider must provide all of the following information by 
electronic transmission (e-mail), fax, or other method specified by 
NMFS.
    (A) Observer training, briefing, and debriefing registration 
materials. This information must be submitted to the Observer Program 
Office at least 7 business days prior to the beginning of a scheduled 
West Coast groundfish observer certification training or briefing 
session.
    (1) Training registration materials consist of the following:
    (i) Date of requested training;
    (ii) A list of observer candidates that includes each candidate's 
full name (i.e., first, middle and last names), date of birth, and 
gender;
    (iii) A copy of each candidate's academic transcripts and resume;
    (iv) A statement signed by the candidate under penalty of perjury 
which discloses the candidate's criminal convictions;
    (v) Projected observer assignments. Prior to the observer's 
completion of the training or briefing session, the observer provider 
must submit to the Observer Program Office a statement of projected 
observer assignments that includes each observer's name, current 
mailing address, e-mail address, phone numbers and port of embarkation 
(``home port''); and
    (vi) Length of each observer's contract.
    (2) Briefing registration materials consist of the following:
    (i) Date and type of requested briefing session;
    (ii) List of observers to attend the briefing session, that 
includes each observer's full name (first, middle, and last names);
    (iii) Projected observer assignments. Prior to the observer's 
completion of the training or briefing session, the observer provider 
must submit to the Observer Program Office a statement of projected 
observer assignments that includes each observer's name, current 
mailing address, e-mail address, phone numbers and port of embarkation 
(``home port''); and
    (iv) Length of each observer's contract.
    (3) Debriefing. The West Coast Groundfish Observer Program will

[[Page 78402]]

notify the observer provider which observers require debriefing and the 
specific time period the provider has to schedule a date, time, and 
location for debriefing. The observer provider must contact the West 
Coast Groundfish Observer program within 5 business days by telephone 
to schedule debriefings.
    (i) Observer providers must immediately notify the observer program 
when observers end their contract earlier than anticipated.
    (ii) [Reserved]
    (B) Physical examination. A signed and dated statement from a 
licensed physician that he or she has physically examined an observer 
or observer candidate. The statement must confirm that, based on that 
physical examination, the observer or observer candidate does not have 
any health problems or conditions that would jeopardize that 
individual's safety or the safety of others while deployed, or prevent 
the observer or observer candidate from performing his or her duties 
satisfactorily. The statement must declare that, prior to the 
examination, the physician was made aware of the duties of the observer 
and the dangerous, remote, and rigorous nature of the work by reading 
the NMFS-prepared information. The physician's statement must be 
submitted to the Observer Program Office prior to certification of an 
observer. The physical exam must have occurred during the 12 months 
prior to the observer's or observer candidate's deployment. The 
physician's statement will expire 12 months after the physical exam 
occurred. A new physical exam must be performed, and accompanying 
statement submitted, prior to any deployment occurring after the 
expiration of the statement.
    (C) Certificates of insurance. Copies of ``certificates of 
insurance'', that name the NMFS Observer Program leader as the 
``certificate holder'', shall be submitted to the Observer Program 
Office by February 1 of each year. The certificates of insurance shall 
verify the following coverage provisions and state that the insurance 
company will notify the certificate holder if insurance coverage is 
changed or canceled.
    (1) Maritime Liability to cover ``seamen's'' claims under the 
Merchant Marine Act (Jones Act) and General Maritime Law ($1 million 
minimum).
    (2) Coverage under the U.S. Longshore and Harbor Workers' 
Compensation Act ($1 million minimum).
    (3) States Worker's Compensation as required.
    (4) Commercial General Liability.
    (D) Observer provider contracts. If requested, observer providers 
must submit to the Observer Program Office a completed and unaltered 
copy of each type of signed and valid contract (including all 
attachments, appendices, addendums, and exhibits incorporated into the 
contract) between the observer provider and those entities requiring 
observer services under paragraph (h)(1)(i) of this section. Observer 
providers must also submit to the Observer Program Office upon request, 
a completed and unaltered copy of the current or most recent signed and 
valid contract (including all attachments, appendices, addendums, and 
exhibits incorporated into the contract and any agreements or policies 
with regard to observer compensation or salary levels) between the 
observer provider and the particular entity identified by the Observer 
Program or with specific observers. The copies must be submitted to the 
Observer Program Office via e-mail, fax, or mail within 5 business days 
of the request. Signed and valid contracts include the contracts an 
observer provider has with:
    (1) Vessels required to have observer coverage as specified at 
paragraph (h)(1)(i) of this section; and
    (2) Observers.
    (E) Change in observer provider management and contact information. 
An observer provider must submit to the Observer Program Office any 
change of management or contact information submitted on the provider's 
permit application under paragraph (h)(4) of this section within 30 
days of the effective date of such change.
    (F) Biological samples. The observer provider must ensure that 
biological samples are stored/handled properly prior to delivery/
transport to NMFS.
    (G) Observer status report. Each Tuesday, observer providers must 
provide NMFS with an updated list of contact information for all 
observers that includes the observer's name, mailing address, e-mail 
address, phone numbers, port of embarkation (``home port''), fishery 
deployed the previous week and whether or not the observer is ``in 
service'', indicating when the observer has requested leave and/or is 
not currently working for the provider.
    (H) Providers must submit to NMFS, if requested, copies of any 
information developed and used by the observer providers distributed to 
vessels, such as informational pamphlets, payment notification, 
description of observer duties, etc.
    (I) Other reports. Reports of the following must be submitted in 
writing to the West Coast Groundfish Observer Program Office by the 
observer provider via fax or e-mail address designated by the Observer 
Program Office within 24 hours after the observer provider becomes 
aware of the information:
    (1) Any information regarding possible observer harassment;
    (2) Any information regarding any action prohibited under Sec.  
660.112 or Sec.  600.725(o), (t) and (u);
    (3) Any concerns about vessel safety or marine casualty under 46 
CFR 4.05-1(a)(1) through (7);
    (4) Any observer illness or injury that prevents the observer from 
completing any of his or her duties described in the observer manual; 
and
    (5) Any information, allegations or reports regarding observer 
conflict of interest or breach of the standards of behavior described 
in observer provider policy.
    (xii) Replace lost or damaged gear. An observer provider must 
replace all lost or damaged gear and equipment issued by NMFS to an 
observer under contract to that provider. All replacements must be in 
accordance with requirements and procedures identified in writing by 
the Observer Program Office.
    (xiii) Maintain confidentiality of information. An observer 
provider must ensure that all records on individual observer 
performance received from NMFS under the routine use provision of the 
Privacy Act or as otherwise required by law remain confidential and are 
not further released to anyone outside the employ of the observer 
provider company to whom the observer was contracted except with 
written permission of the observer.
    (xiv) Limitations on conflict of interest. Observer providers:
    (A) Must not have a direct financial interest, other than the 
provision of observer services, in the North Pacific or Pacific coast 
fishery managed under an FMP for the waters off the coasts of Alaska, 
Washington, Oregon, and California, including, but not limited to:
    (1) Any ownership, mortgage holder, or other secured interest in a 
vessel or shoreside processor facility involved in the catching, 
taking, harvesting or processing of fish,
    (2) Any business involved with selling supplies or services to any 
vessel or shoreside processors participating in a fishery managed 
pursuant to an FMP in the waters off the coasts of Alaska, California, 
Oregon, and Washington, or
    (3) Any business involved with purchasing raw or processed products 
from any vessel or shoreside processor participating in a fishery 
managed pursuant to an FMP in the waters off the coasts of Alaska, 
California, Oregon, and Washington.

[[Page 78403]]

    (B) Must assign observers without regard to any preference by 
representatives of vessels other than when an observer will be 
deployed.
    (C) Must not solicit or accept, directly or indirectly, any 
gratuity, gift, favor, entertainment, loan, or anything of monetary 
value except for compensation for providing observer services from 
anyone who conducts fishing or fish processing activities that are 
regulated by NMFS in the Pacific coast or North Pacific regions, or who 
has interests that may be substantially affected by the performance or 
non-performance of the official duties of observer providers.
    (xv) Observer conduct and behavior. An observer provider must 
develop and maintain a policy addressing observer conduct and behavior 
for their employees that serve as observers.
    (A) The policy shall address the following behavior and conduct 
regarding:
    (1) Observer use of alcohol;
    (2) Observer use, possession, or distribution of illegal drugs; 
and;
    (3) Sexual contact with personnel of the vessel or processing 
facility to which the observer is assigned, or with any vessel or 
processing plant personnel who may be substantially affected by the 
performance or non-performance of the observer's official duties.
    (B) An observer provider shall provide a copy of its conduct and 
behavior policy to each observer candidate and to the Observer Program 
by February 1 of each year.
    (xvi) Refusal to deploy an observer. Observer providers may refuse 
to deploy an observer on a requesting vessel if the observer provider 
has determined that the requesting vessel is inadequate or unsafe 
pursuant to those described at Sec.  600.746 or U.S. Coast Guard and 
other applicable rules, regulations, statutes, or guidelines pertaining 
to safe operation of the vessel.
    (6) Observer certification and responsibilities--(i) Applicability. 
Observer certification authorizes an individual to fulfill duties as 
specified in writing by the NMFS Observer Program Office while under 
the employ of a NMFS-permitted observer provider and according to 
certification requirements as designated under paragraph (h)(6)(iii) of 
this section.
    (ii) Observer certification official. The Regional Administrator 
will designate a NMFS observer certification official who will make 
decisions for the Observer Program Office on whether to issue or deny 
observer certification.
    (iii) Certification requirements--(A) Initial certification. NMFS 
may certify individuals who, in addition to any other relevant 
considerations:
    (1) Are employed by an observer provider company permitted pursuant 
to Sec.  660.140(h) at the time of the issuance of the certification;
    (2) Have provided, through their observer provider:
    (i) Information identified by NMFS at Sec.  679.50 regarding an 
observer candidate's health and physical fitness for the job;
    (ii) Meet all observer candidate education and health standards as 
specified in Sec.  679.50; and
    (iii) Have successfully completed NMFS-approved training as 
prescribed by the At-Sea Hake and/or West Coast Groundfish Observer 
Program. Successful completion of training by an observer applicant 
consists of meeting all attendance and conduct standards issued in 
writing at the start of training; meeting all performance standards 
issued in writing at the start of training for assignments, tests, and 
other evaluation tools; and completing all other training requirements 
established by the Observer Program.
    (iv) Have not been decertified under paragraph (h)(6)(ix) of this 
section, or pursuant to Sec.  679.50.
    (B) [Reserved]
    (iv) Denial of a certification. The NMFS observer certification 
official will issue a written determination denying observer 
certification if the candidate fails to successfully complete training, 
or does not meet the qualifications for certification for any other 
relevant reason.
    (v) Issuance of an observer certification. An observer 
certification may be issued upon determination by the observer 
certification official that the candidate has successfully met all 
requirements for certification as specified at paragraph (h)(6)(iii) of 
this section. The following endorsements must be obtained in addition 
to observer certification, in order for an observer to deploy.
    (A) West Coast Groundfish Observer Program training certification 
endorsement. A training certification endorsement signifies the 
successful completion of the training course required to obtain 
observer certification. This endorsement expires when the observer has 
not been deployed and performed sampling duties as required by the 
Observer Program Office for a period of time, specified by the Observer 
Program, after his or her most recent debriefing. The Observer can 
renew the endorsement by successfully completing training once more.
    (B) West Coast Groundfish Observer Program annual general 
endorsement. Each observer must obtain an annual general endorsement to 
their certification prior to his or her first deployment within any 
calendar year subsequent to a year in which a training certification 
endorsement is obtained. To obtain an annual general endorsement, an 
observer must successfully complete the annual briefing, as specified 
by the Observer Program. All briefing attendance, performance, and 
conduct standards required by the Observer Program must be met.
    (C) West Coast Groundfish Observer Program deployment endorsement. 
Each observer who has completed an initial deployment after their 
certification or annual briefing must receive a deployment endorsement 
to their certification prior to any subsequent deployments for the 
remainder of that year. An observer may obtain a deployment endorsement 
by successfully completing all briefing requirements, when applicable. 
The type of briefing the observer must attend and successfully complete 
will be specified in writing by the Observer Program during the 
observer's most recent debriefing.
    (vi) Maintaining the validity of an observer certification. After 
initial issuance, an observer must keep their certification valid by 
meeting all of the following requirements specified below:
    (A) Successfully perform their assigned duties as described in the 
Observer Manual or other written instructions from the Observer Program 
Office including calling in to the NMFS deployment hotline upon 
departing and arriving in to port each trip to leave the following 
information: Observer name, phone number, vessel name departing on, 
date and time of departure and date and time of expected return.
    (B) Accurately record their sampling data, write complete reports, 
and report accurately any observations of suspected violations of 
regulations relevant to conservation of marine resources or their 
environment.
    (C) Not disclose collected data and observations made on board the 
vessel or in the processing facility to any person except the owner or 
operator of the observed vessel or an authorized officer or NMFS.
    (D) Successfully complete NMFS-approved annual briefings as 
prescribed by the West Coast Groundfish Observer Program.
    (E) Successful completion of briefing by an observer applicant 
consists of meeting all attendance and conduct standards issued in 
writing at the start of training; meeting all performance standards 
issued in writing at the start of training for assignments, tests, and 
other evaluation tools; and completing

[[Page 78404]]

all other briefing requirements established by the Observer Program.
    (F) Hold current basic cardiopulmonary resuscitation/first aid 
certification as per American Red Cross Standards.
    (G) Successfully meet all expectations in all debriefings including 
reporting for assigned debriefings.
    (H) Submit all data and information required by the Observer 
Program within the program's stated guidelines.
    (I) Meet the minimum annual deployment period of 3 months at least 
once every 12 months.
    (vii) Limitations on conflict of interest. Observers:
    (A) Must not have a direct financial interest, other than the 
provision of observer services, in a fishery managed pursuant to an FMP 
for the waters off the coast of Alaska, or in a Pacific Coast fishery 
managed by either the state or Federal Governments in waters off 
Washington, Oregon, or California, including but not limited to:
    (1) Any ownership, mortgage holder, or other secured interest in a 
vessel, shore-based or floating stationary processor facility involved 
in the catching, taking, harvesting or processing of fish,
    (2) Any business involved with selling supplies or services to any 
vessel, shore-based or floating stationary processing facility; or
    (3) Any business involved with purchasing raw or processed products 
from any vessel, shore-based or floating stationary processing 
facilities.
    (B) Must not solicit or accept, directly or indirectly, any 
gratuity, gift, favor, entertainment, loan, or anything of monetary 
value from anyone who either conducts activities that are regulated by 
NMFS in the Pacific coast or North Pacific regions or has interests 
that may be substantially affected by the performance or nonperformance 
of the observers' official duties.
    (C) May not serve as observers on any vessel or at any shore-based 
owned or operated by a person who employed the observer in the last two 
years.
    (D) May not solicit or accept employment as a crew member or an 
employee of a vessel or shore-based processor while employed by an 
observer provider.
    (E) Provisions for remuneration of observers under this section do 
not constitute a conflict of interest.
    (viii) Standards of behavior. Observers must:
    (A) Perform their duties as described in the Observer Manual or 
other written instructions from the Observer Program Office.
    (B) Immediately report to the Observer Program Office and the NOAA 
OLE any time they refuse to board a vessel.
    (C) Accurately record their sampling data, write complete reports, 
and report accurately any observations of suspected violations of 
regulations relevant to the conservation of marine resources of their 
environment.
    (D) Not disclose collected data and observations made on board the 
vessel to any person except the owner or operator of the observed 
vessel, an authorized officer, or NMFS.
    (ix) Suspension and decertification--(A) Suspension and 
decertification review official. The Regional Administrator (or a 
designee) will designate an observer suspension and decertification 
review official(s), who will have the authority to review observer 
certifications and issue initial administrative determinations of 
observer certification suspension and/or decertification.
    (B) Causes for suspension or decertification. The suspension and 
decertification official may initiate suspension or decertification 
proceedings against an observer:
    (1) When it is alleged that the observer has not met applicable 
standards, including any of the following:
    (i) Failed to satisfactorily perform duties as described or 
directed by the observer program; or
    (ii) Failed to abide by the standards of conduct for observers, 
including conflicts of interest;
    (2) Upon conviction of a crime or upon entry of a civil judgment 
for:
    (i) Commission of fraud or other violation in connection with 
obtaining or attempting to obtain certification, or in performing the 
duties as specified in writing by the NMFS Observer Program;
    (ii) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, or 
receiving stolen property;
    (iii) Commission of any other offense indicating a lack of 
integrity or honesty that seriously and directly affects the fitness of 
observers.
    (C) Issuance of initial administrative determination. Upon 
determination that suspension or decertification is warranted, the 
suspension/decertification official will issue a written IAD to the 
observer via certified mail at the observer's most current address 
provided to NMFS. The IAD will identify whether a certification is 
suspended or revoked and will identify the specific reasons for the 
action taken. Decertification is effective 30 calendar days after the 
date on the IAD, unless there is an appeal.
    (D) Appeals. A certified observer who receives an IAD that suspends 
or revokes his or her observer certification may appeal the 
determination within 30 calendar days after the date on the IAD to the 
Office of Administrative Appeals pursuant to Sec.  679.43.
    (i) Catch monitor requirements for IFQ first receivers--(1) Catch 
monitor coverage requirements. A catch monitor is required be present 
at each IFQ first receiver whenever an IFQ landing is received, unless 
the first receiver has been granted a written waiver from the catch 
monitor requirements by NMFS.
    (2) Procurement of catch monitor services. Owners or managers of 
each IFQ first receiver must arrange for catch monitor services from a 
certified catch monitor provider prior to accepting IFQ landings.
    (3) Catch monitor safety. (i) Each IFQ first receiver must adhere 
to all applicable rules, regulations, or statutes pertaining to safe 
operation and maintenance of a processing and/or receiving facility.
    (ii) The working hours of each individual catch monitor will be 
limited as follows:
    (A) An individual catch monitor shall not be required or permitted 
to work more than 16 hours per calendar day, with maximum of 14 hours 
being work other than the summary and submission of catch monitor data.
    (B) Following monitoring shift of more than 10 hours, each catch 
monitor must be provided with a minimum 6 hours break before they may 
resume monitoring.
    (4) Catch monitor access. (i) Each IFQ first receiver must allow 
catch monitors free and unobstructed access to the catch throughout the 
sorting process and the weighing process.
    (ii) The IFQ first receiver must ensure that there is an 
observation area available to the catch monitor that meets the 
following standards:
    (A) Access to the observation area. The observation area must be 
freely accessible to NMFS staff, NMFS-authorized personnel, or 
authorized officers at any time a valid catch monitoring plan is 
required.
    (B) Monitoring the flow of fish. The catch monitor must have an 
unobstructed view or otherwise be able to monitor the entire flow of 
fish between the delivery point and a location where all sorting has 
takes place and each species has been weighed.
    (C) Adequate lighting. Adequate lighting must be provided during 
periods of limited visibility.
    (iii) Each IFQ first receiver must allow catch monitors free and 
unobstructed

[[Page 78405]]

access to any documentation required by regulation including fish 
tickets, scale printouts and scale test results.
    (5) Lockable cabinet. Each IFQ first receiver must provide a 
secure, dry, and lockable cabinet or locker with the minimum interior 
dimensions of two feet wide by two feet tall by two feet deep for the 
exclusive use the catch monitor and NMFS staff or NMFS-authorized 
agents.
    (6) Plant liaison for the catch monitor. Each IFQ first receiver 
must designate a plant liaison. The plant liaison is responsible for:
    (i) Orienting new catch monitors to the facility;
    (ii) Assisting in the resolution of catch monitoring concerns; and
    (iii) Informing NMFS if changes must be made to the catch 
monitoring plan.
    (7) Reasonable assistance. Each IFQ first receiver must provide 
reasonable assistance to the catch monitors to enable each catch 
monitor to carry out his or her duties. Reasonable assistance includes, 
but is not limited to: informing the monitor when bycatch species will 
be weighed, and providing a secure place to store equipment and gear.
    (j) Catch weighing requirements--(1) Catch monitoring plan. All 
first receivers must operate under a NMFS-accepted catch monitoring 
plan.
    (2) Sorting and weighing IFQ landings--(i) Approved scales. The IFQ 
first receiver must ensure that all IFQ species received from a vessel 
making an IFQ landing are weighed on a scale(s) that meets the 
requirements specified at Sec.  660.15(c).
    (ii) Printed record. All scales identified in the catch monitoring 
plan accepted by NMFS during the first receiver site license 
application process, must produce a printed record for each delivery, 
or portion of a delivery, weighed on that scale, with the following 
exception: If approved by NMFS as part of the catch monitoring plan, 
scales not designed for automatic bulk weighing may be exempted from 
part or all of the printed record requirements. The printed record must 
include:
    (A) The first receiver's name;
    (B) The weight of each load in the weighing cycle;
    (C) The total weight of fish in each landing, or portion of the 
landing that was weighed on that scale;
    (D) The date the information is printed; and
    (E) The name and vessel registration or documentation number of the 
vessel making the delivery. The scale operator may write this 
information on the scale printout in ink at the time of printing.
    (iii) Scales that may be exempt from printed report. An IFQ first 
receiver that receives no more than 200,000 pounds of groundfish in any 
calendar month will be exempt from the requirement to produce a printed 
record provided that:
    (A) The first receiver has not previously operated under a catch 
monitoring plan where a printed record was required;
    (B) The first receiver ensures that all catch is weighed; and
    (C) The catch monitor, NMFS staff, or authorized officer can verify 
that all catch is weighed.
    (iv) Retention of printed records. An IFQ first receiver must 
maintain printouts on site until the end of the fishing year during 
which the printouts were made and make them available upon request by 
NMFS staff or an authorized officer for 3 years after the end of the 
fishing year during which the printout was made.
    (v) Weight monitoring. An IFQ first receiver must ensure that it is 
possible for the catch monitor, NMFS staff, or authorized officer to 
verify the weighing of all catch.
    (vi) Catch sorting. All fish delivered to the plant must be sorted 
and weighed by species as specified at Sec.  660.130(d).
    (vii) Complete sorting. Sorting and weighing must be completed 
prior to catch leaving the area that can be monitored from the catch 
monitor's observation area.
    (viii) Pacific whiting. For Pacific Whiting taken with midwater 
trawl gear, IFQ first receivers may use an in-line conveyor or hopper 
type scale to derive an accurate total catch weight prior to sorting. 
Immediately following weighing of the total catch and prior to 
processing or transport away from the point of landing, the catch must 
be sorted to the species groups specified at Sec.  660.130(d) and all 
incidental catch (groundfish and non groundfish species) must be 
accurately weighed and the weight of incidental catch deducted from the 
total catch weight to derive the weight of target species.
    (ix) For all other IFQ landings the following weighing standards 
apply:
    (A) A belt or automatic hopper scale may be used to weigh all of 
the catch prior to sorting. All but a single predominant species must 
then be reweighed.
    (B) An in-line conveyor or automatic hopper scale may be used to 
weigh the predominant species after catch has been sorted. Other 
species must be weighed in a manner that facilitates tracking of the 
weights of those species.
    (C) IFQ species or species group may be weighed in totes on a 
platform scale capable of printing a label or tag and recording the 
label or tag information to memory for printing a report as specified 
at Sec.  660.15. The label or tag must remain affixed to the tote until 
the tote is emptied. The label or tag must show the following 
information:
    (1) The species or species group;
    (2) The weight of the fish in the tote;
    (3) The date the label or tag was printed; and
    (4) The vessel name.
    (D) Totes and ice. If a catch monitoring plan proposes the use of 
totes in which fish will be weighed, or a deduction for the weight of 
ice, the deduction must be accurately accounted for. No deduction may 
be made for the weight of water or slime. This standard may be met by:
    (1) Taring the empty or pre-iced tote on the scale prior to filling 
with fish;
    (2) Labeling each tote with an individual tare weight. This weight 
must be accurate within 500 grams (1 pound if scale is denominated in 
pounds) for any given tote and the average error for all totes may not 
exceed 200 grams (8 ounces for scales denominated in pounds);
    (3) An alternate approach accepted by NMFS. NMFS will only accept 
approaches that do not involve the estimation of the weight of ice or 
the weight of totes and allow NMFS staff or an authorized officer to 
verify that the deduction or tare weight is accurate.
    (E) An alternate approach accepted by NMFS in the catch monitoring 
plan.
    (3) IFQ first receiver responsibilities relative to catch weighing 
and monitoring of catch weighing. The IFQ first receiver must:
    (i) General. (A) Ensure that all IFQ landings are sorted and 
weighed as specified at Sec.  660.130(d) and in accordance with an 
approved catch monitoring plan.
    (B) [Reserved]
    (ii) Catch monitors, NMFS staff, and authorized officers. (A) Have 
a catch monitor on site the entire time an IFQ landing is being 
offloaded, sorted, or weighed.
    (B) Notify the catch monitor of the offloading schedule.
    (C) Provide catch monitors, NMFS staff, or an authorized officer 
with unobstructed access to any areas where IFQ species are or may be 
sorted or weighed at any time IFQ species are being landed or 
processed.
    (D) Ensure that catch monitors, NMFS staff, or an authorized 
officer are able to simultaneously observe the weighing of catch on the 
scale and read the scale display at any time.
    (E) Ensure that printouts of the scale weight of each delivery or 
offload are made available to catch monitors, NMFS

[[Page 78406]]

staff, or an authorized officer at the time printouts are generated.
    (4) Scale tests. (i) All testing must meet the scale test standards 
specified at Sec.  660.15(c).
    (ii) Inseason scale testing. First receivers must allow, and 
provide reasonable assistance to a catch monitor, NMFS staff or an 
authorized officer to test scales used to weigh IFQ catch. A scale that 
does not pass an inseason test may not be used to weigh IFQ catch until 
the scale passes an inseason test or is approved for continued use by 
the weights and measures authorities of the state in which the scale is 
located.
    (k) Gear switching. (1) Participants in the Shorebased IFQ Program 
may take IFQ species using any legal groundfish non-trawl gear (i.e., 
gear switching) and are exempt from the gear endorsements at Sec.  
660.25(b)(3) for limited entry fixed gear permits, provided the 
following requirements are met:
    (i) The vessel must be registered to a limited entry trawl permit.
    (ii) The vessel must be registered to a vessel account that is not 
in deficit on any IFQ species.
    (iii) The vessel operator must have submitted a valid gear 
declaration for the trip that declares ``Limited entry groundfish non-
trawl, shorebased IFQ,'' as specified in Sec.  660.13(d)(5)(iv)(A), and 
does not declare any other designation (a Shorebased IFQ Program trip 
may not be combined with any other designation).
    (iv) The vessel must comply with prohibitions applicable to limited 
entry fixed gear fishery as specified at Sec.  660.212, gear 
restrictions applicable to limited entry fixed gear as specified in 
Sec. Sec.  660.219 and 660.230(b), and management measures specified in 
Sec.  660.230(d), including restrictions on the fixed gear allowed 
onboard, its usage, and applicable fixed gear groundfish conservation 
area restrictions, except that the vessel will not be subject to 
limited entry fixed gear trip limits when fishing in the Shorebased IFQ 
Program.
    (v) The vessel must comply with the limited entry trawl trip limits 
for species/species groups not covered under the Shorebased IFQ Program 
or whiting trip limits outside the primary season.
    (vi) The vessel must comply with recordkeeping and reporting 
requirements applicable to limited entry trawl gear as specified in 
Sec.  660.113.
    (vii) The vessel must comply with and observer requirements and all 
other provisions of the Shoreside IFQ Program as specified in this 
section.
    (2) [Reserved]
    (l) Adaptive management program--(1) General. The adaptive 
management program (AMP) is a set-aside of 10 percent of the non-
whiting QS to address the following objectives:
    (i) Community stability;
    (ii) Processor stability;
    (iii) Conservation;
    (iv) Unintended/unforeseen consequences of IFQ management; or
    (v) Facilitating new entrants.
    (2) Years one and two. The 10 percent of non-whiting QS will be 
reserved for the AMP during years one and two of the Shorebased IFQ 
Program, but the resulting AMP QP will be issued to all QS permit 
owners in proportion to their non-whiting QS during years one and two.

0
25. In Sec.  660.150;
0
a. Paragraph (a) introductory text and paragraphs (a)(3), (a)(4), (d), 
(f)(3), (f)(6)(vi), (g)(3)(i)(C), and (g)(6)(viii) are revised;
0
b. The headings of paragraphs (b), (c), (e), (g)(1)(iv), (g)(2), and 
(k) are revised, and text is added to paragraphs (b), (c), (e), 
(g)(1)(iv), (g)(2), and (k).
0
c. Paragraphs (f)(2), (f)(4), (g)(3)(ii), (g)(4), and (h) through (j) 
are added; and
0
d. Paragraph (g)(1) introductory text is revised, and paragraph 
(g)(1)(v) is removed;
0
e. Paragraph (l) is removed to read as follows:


Sec.  660.150   Mothership (MS) Coop Program.

    (a) General. The MS Coop Program requirements in this section will 
be effective beginning January 1, 2011. The MS Coop Program is a 
general term to describe the limited access program that applies to 
eligible harvesters and processors in the mothership sector of the 
Pacific whiting at-sea trawl fishery. Eligible harvesters and 
processors, including coop and non-coop fishery participants, must meet 
the requirements set forth in this section of the Pacific Coast 
groundfish regulations. Each year a vessel registered to an MS/CV-
endorsed permit may fish in either the coop or non-coop portion of the 
MS Coop Program, but not both. In addition to the requirements of this 
section, the MS Coop Program is subject to the following groundfish 
regulations of subparts C and D of this part:
* * * * *
    (3) Regulations set out in the following sections of subpart C: 
Sec.  660.11 Definitions, Sec.  660.12 Prohibitions, Sec.  660.13 
Recordkeeping and reporting, Sec.  660.14 VMS requirements, Sec.  
660.15 Equipment requirements, Sec.  660.16 Groundfish Observer 
Program, Sec.  660.20 Vessel and gear identification, Sec.  660.25 
Permits, Sec.  660.55 Allocations, Sec.  660.60 Specifications and 
management measures, Sec.  660.65 Groundfish harvest specifications, 
and Sec. Sec.  660.70 through 660.79 Closed areas.
    (4) Regulations set out in the following sections of subpart D: 
Sec.  660.111 Trawl fishery definitions, Sec.  660.112 Trawl fishery 
prohibitions, Sec.  660.113 Trawl fishery recordkeeping and reporting, 
Sec.  660.120 Trawl fishery crossover provisions, Sec.  660.130 Trawl 
fishery management measures, and Sec.  660.131 Pacific whiting fishery 
management measures.
* * * * *
    (b) Participation requirements and responsibilities--(1) Mothership 
vessels. (i) Mothership vessel participation requirements. A vessel is 
eligible to receive and process catch as a mothership in the MS Coop 
Program if:
    (A) The vessel is registered to an MS permit;
    (B) The vessel is not used to fish as a catcher vessel in the 
mothership sector of the Pacific whiting fishery in the same calendar 
year; and
    (C) The vessel is not used to fish as a C/P in the Pacific whiting 
fishery in the same calendar year.
    (ii) Mothership vessel responsibilities. The owner and operator of 
a mothership vessel must:
    (A) Recordkeeping and reporting. Maintain a valid declaration as 
specified at Sec.  660.13(d), subpart C; and, maintain and submit all 
records and reports specified at Sec.  660.113(c) including, economic 
data, scale tests records, and cease fishing reports.
    (B) Observers. As specified at paragraph (j) of this section, 
procure observer services, maintain the appropriate level of coverage, 
and meet the vessel responsibilities.
    (C) Catch weighing requirements. The owner and operator of a MS 
vessel must:
    (1) Ensure that all catch is weighed in its round form on a NMFS-
approved scale that meets the requirements described in section Sec.  
660.15(b), subpart C;
    (2) Provide a NMFS-approved platform scale, belt scale, and test 
weights that meet the requirements described in section Sec.  
660.15(b), subpart C.
    (2) Mothership catcher vessels--(i) Mothership catcher vessel 
participation requirements--(A) A vessel is eligible to harvest in the 
MS Coop Program if the following conditions are met:
    (1) If the vessel is used to fish as a mothership catcher vessel 
for a permitted MS coop, the vessel is registered to a limited entry 
permit with a trawl endorsement and NMFS has been notified that the 
vessel is authorized to fish for the coop.

[[Page 78407]]

    (2) If the vessel is used to harvest fish in the non-coop fishery, 
the vessel is registered to an MS/CV-endorsed limited entry permit.
    (3) The vessel is not used to harvest fish or process as a 
mothership or catcher/processor vessel in the same calendar year.
    (4) The vessel does not catch more than 30 percent of the Pacific 
whiting allocation for the mothership sector.
    (B) [Reserved]
    (ii) Mothership catcher vessel responsibilities--(A) Observers. As 
specified at paragraph (j) of this section, procure observer services, 
maintain the appropriate level of coverage, and meet the vessel 
responsibilities.
    (B) Recordkeeping and reporting. Maintain a valid declaration as 
specified at Sec.  660.13(d), subpart C; and, maintain and submit all 
records and reports specified at Sec.  660.113(c) including, economic 
data and scale tests records, if applicable.
    (3) MS coops--(i) MS coop participation requirements. For a MS coop 
to participate in the Pacific whiting mothership sector fishery it 
must:
    (A) Be issued a MS coop permit;
    (B) Be composed of MS/CV-endorsed limited entry permit owners;
    (C) Be formed voluntarily;
    (D) Be a legally recognized entity that represents its members;
    (E) Designate an individual as a coop manager; and
    (F) Include at least 20 percent of all MS/CV-endorsed permits as 
members. The coop membership percentage will be interpreted by rounding 
to the nearest whole permit (i.e. less than 0.5 rounds down and 0.5 and 
greater rounds up).
    (ii) MS coop responsibilities. A MS coop is responsible for:
    (A) Applying for and being registered to a MS coop permit;
    (B) Organizing and coordinating harvest activities of vessels 
authorized to fish for the coop;
    (C) Reassigning catch history assignments for use by coop members;
    (D) Organizing and coordinating the transfer and leasing of catch 
allocations with other permitted coops through inter-coop agreements;
    (E) Monitoring harvest activities and enforcing the catch limits of 
coop members;
    (F) Submitting an annual report.
    (G) Having a designated coop manager. The designated coop manager 
must:
    (1) Serve as the contact person between NMFS, the Council, and 
other coops;
    (2) Be responsible for the annual distribution of catch and bycatch 
allocations among coop members;
    (3) Oversee reassignment of catch allocations within the coop;
    (4) Oversee inter-coop catch allocation reassignments;
    (5) Prepare and submit an annual report on behalf of the coop;
    (6) Be authorized to receive or respond to any legal process in 
which the coop is involved; and
    (7) Notify NMFS if the coop dissolves.
    (iii) MS coop compliance and joint/several liability. An MS coop 
must comply with the provisions of this section. The MS coop, member 
limited entry permit owners, and owners and operators of vessels 
registered to member limited entry permits, are jointly and severally 
responsible for compliance with the provisions of this section. 
Pursuant to 15 CFR part 904, each MS coop, member permit owner, and 
owner and operator of a vessel registered to a coop member permit may 
be charged jointly and severally for violations of the provisions of 
this section. For purposes of enforcement, an MS coop is a legal entity 
that can be subject to NOAA enforcement action for violations of the 
provisions of this section.
    (c) MS Coop Program species and allocations--(1) MS Coop Program 
species. MS Coop Program species are as follows:
    (i) Species with formal allocations to the MS Coop Program are 
Pacific whiting, canary rockfish, darkblotched rockfish, Pacific Ocean 
perch, and widow rockfish;
    (ii) Species with set-asides for the MS and C/P Coop Programs 
combined, as described in Tables 1d and 2d, subpart C.
    (2) Annual mothership sector sub-allocations. Annual allocation 
amount(s) will be determined using the following procedure:
    (i) MS/CV catch history assignments. Catch history assignments will 
be based on catch history using the following methodology:
    (A) Pacific whiting catch history assignment. For each MS/CV-
endorsed limited entry permit, the permit's entire catch history 
assignment of Pacific whiting will be annually allocated to a single 
permitted MS coop or to the non-coop fishery. An MS/CV-endorsed permit 
owner cannot divide the permit's catch history assignment between more 
than one MS coop or between a coop and the non-coop fishery for that 
year. Once assigned to a permitted MS coop or to the non-coop fishery, 
the permit's catch history assignment remains with that permitted MS 
coop or non-coop fishery for that calendar year. When the mothership 
sector allocation is established through the final Pacific whiting 
specifications, the information for the conversion of catch history 
assignment to pounds will be made available to the public through a 
Federal Register announcement and/or public notice and/or the NMFS Web 
site. The amount of whiting from the catch history assignment will be 
issued to the nearest whole pound using standard rounding rules (i.e. 
less than 0.5 rounds down and 0.5 and greater rounds up).
    (B) Non-whiting groundfish species catch--(1) Non-whiting 
groundfish species with a mothership sector allocation will be divided 
annually between the permitted coops and the non-coop fishery. The 
pounds associated with each permitted MS coop will be provided when the 
coop permit is issued.
    (2) Groundfish species with at-sea sector set-asides will be 
managed on an annual basis unless there is a risk of a harvest 
specification being exceeded, unforeseen impact on another fisheries, 
or conservation concerns in which case inseason action may be taken. 
Set asides may be adjusted through the biennial specifications and 
management measures process as necessary.
    (3) Groundfish species not addressed in paragraph (1) or (2) above, 
will be managed on an annual basis unless there is a risk of a harvest 
specification being exceeded, unforeseen impact on another fisheries, 
or conservation concerns in which case inseason action may be taken.
    (4) Halibut set-asides. Annually a specified amount of the Pacific 
halibut will be held in reserve as a shared set-aside for bycatch in 
the at-sea Pacific whiting fisheries and the shorebased trawl sector 
south of 40[deg]10' N. lat.
    (ii) Annual coop allocations--(A) Pacific whiting. Each permitted 
MS coop is authorized to harvest a quantity of Pacific whiting that is 
based on the sum of the catch history assignments for each member MS/
CV-endorsed permit identified in the NMFS-accepted coop agreement for a 
given calendar year. Other limited entry permits registered to vessels 
that will fish for the coop do not bring catch allocation to a 
permitted MS coop.
    (B) Non-whiting groundfish with allocations. Sub-allocations of 
non-whiting groundfish species with allocations to permitted MS coops 
will be in proportion to the Pacific whiting catch history assignments 
assigned to each permitted MS coop.
    (iii) Annual non-coop allocation--(A) Pacific whiting. The non-coop 
whiting

[[Page 78408]]

fishery is authorized to harvest a quantity of Pacific whiting that is 
remaining in the mothership sector annual allocation after the 
deduction of all coop allocations.
    (B) Non-whiting groundfish with allocations. The sub-allocation to 
the non-coop fishery will be in proportion to the mothership catcher 
vessel Pacific whiting catch history assignments for the non-coop 
fishery.
    (C) Announcement of the non-coop fishery allocations. Information 
on the amount of Pacific whiting and non-whiting groundfish with 
allocations that will be made available to the non-coop fishery when 
the final Pacific whiting specifications for the mothership sector is 
established and will be announced to the public through a Federal 
Register announcement and/or public notice and/or the NMFS Web site.
    (3) Reaching an allocation or sub-allocation. When the mothership 
sector Pacific whiting allocation, Pacific whiting sub-allocation, or 
non-whiting groundfish catch allocation is reached or is projected to 
be reached, the following action may be taken:
    (i) Further harvesting, receiving or at-sea processing by a 
mothership or catcher vessel in the mothership sector is prohibited 
when the mothership sector Pacific whiting allocation or non-whiting 
groundfish allocation is projected to be reached. No additional 
unprocessed groundfish may be brought on board after at-sea processing 
is prohibited, but a mothership may continue to process catch that was 
on board before at-sea processing was prohibited. Pacific whiting may 
not be taken and retained, possessed, or landed by a catcher vessel 
participating in the mothership sector.
    (ii) When a permitted MS coop sub-allocation of Pacific whiting or 
non-whiting groundfish species is reached, further harvesting or 
receiving of groundfish by vessels fishing in the permitted MS coop 
must cease, unless the permitted MS coop is operating under an NMFS-
accepted inter-coop agreement.
    (iii) When the non-coop fishery sub-allocation of Pacific whiting 
or non-whiting groundfish species is projected to be reached, further 
harvesting or receiving of groundfish by vessels fishing in under the 
non-coop fishery must cease.
    (4) Non-whiting groundfish species reapportionment. This paragraph 
(c)(4) describes the process for reapportioning non-whiting groundfish 
species with allocations between permitted MS coops and the catcher/
processor sector. Reapportionment of mothership sector allocations to 
the catcher/processor will not occur until all permitted MS coops and 
the non-coop fishery have been closed by NMFS or have informed NMFS 
that they have ceased operations for the remainder of the calendar 
year.
    (i) Within the mothership sector. The Regional Administrator may 
make available for harvest to permitted coops and the non-coop fishery 
that have not notified NMFS that they have ceased fishing for the year, 
the amounts of a permitted MS coop's non-whiting catch allocation 
remaining when a coop reaches its Pacific whiting allocation or when 
the designated coop manager notifies NMFS that a permitted coop has 
ceased fishing for the year. The reapportioned allocations will be in 
proportion to their original allocations.
    (ii) Between the mothership and catcher/processor sectors. The 
Regional Administrator may make available for harvest to the catcher/
processor sector of the Pacific whiting fishery, the amounts of the 
mothership sector's non-whiting catch allocation remaining when the 
Pacific whiting allocation is reached or participants in the sector do 
not intend to harvest the remaining allocation. The designated coop 
manager, or in the case of an inter-coop, all of the designated coop 
managers must submit a cease fishing report to NMFS indicating that 
harvesting has concluded for the year. At any time after greater than 
80 percent of the Mothership sector Pacific whiting allocation has been 
harvested, the Regional Administrator may contact designated coop 
managers to determine whether they intend to continue fishing. When 
considering redistribution of non-whiting catch allocation, the 
Regional Administrator will take in to consideration the best available 
data on total projected fishing impacts. Reapportionment between 
permitted MS coops and the non-coop fishery within the mothership 
sector will be in proportion to their original coop allocations for the 
calendar year.
    (iii) Set-aside species. No inseason management actions are 
associated with set asides.
    (5) Announcements. The Regional Administrator will announce in the 
Federal Register when the mothership sector or the allocation of 
Pacific whiting or non-whiting groundfish with an allocation is 
reached, or is projected to be reached, and specify the appropriate 
action. In order to prevent exceeding an allocation and to avoid 
underutilizing the resource, prohibitions against further taking and 
retaining, receiving, or at-sea processing of Pacific whiting, or 
reapportionment of non-whiting groundfish with allocations may be made 
effective immediately by actual notice to fishers and processors, by e-
mail, internet (www.nwr.noaa.gov/Groundfish-Halibut/Groundfish-Fishery-Management/Whiting-Management/index.cfm), phone, fax, letter, press 
release, and/or USCG Notice to Mariners (monitor channel 16 VHF), 
followed by publication in the Federal Register, in which instance 
public comment will be sought for a reasonable period of time 
thereafter.
    (6) Redistribution of annual allocation--(i) Between permitted MS 
coops (inter-coop). (A) Through an inter-coop agreement, the designated 
coop managers of permitted MS coops may distribute Pacific whiting and 
non-whiting groundfish allocations among one or more permitted MS 
coops, provided the processor obligations at paragraph (c)(7) of this 
section have been met or a mutual agreement exception at paragraph 
(c)(7)(iv) of this section has been submitted to NMFS.
    (B) In the case of a MS coop failure during the Pacific whiting 
primary season for the mothership sector, unused allocation associated 
with the catch history will not be available for harvest by the coop 
that failed, by any former members of the coop that failed, or any 
other MS coop for the remainder of that calendar year.
    (ii) Between the MS coop and non-coop fisheries. Pacific whiting 
may not be redistributed between the coop and non-coop fisheries.
    (ii) Between Pacific whiting sectors. Pacific whiting may not be 
redistributed between the mothership sector and catcher/processor 
sector. Whiting may not be redistributed to the Shorebased IFQ Program.
    (7) Processor obligation and mutual agreement exceptions--(i) 
Processor obligation. Through the annual MS/CV-endorsed limited entry 
permit renewal process, the MS/CV-endorsed permit owner must identify 
to NMFS to which MS permit the MS/CV permit owner intends to obligate 
the catch history assignment associated with that permit if they are 
participating in the MS coop fishery. Only one MS permit may be 
designated (the obligation may not be split among MS permits).
    (ii) Expiration of a processor obligation. Processor obligations 
expire at the end of each calendar year when the MS Coop Permit 
expires.
    (iii) Processor obligation when MS coop allocation is 
redistributed. When a permitted MS coop redistributes Pacific whiting 
allocation within the permitted MS coop or from one permitted MS coop 
to another permitted MS coop through an inter-coop agreement, such 
allocations must be delivered to the

[[Page 78409]]

mothership registered to the MS permit to which the allocation was 
obligated under the processor obligation submitted to NMFS, unless a 
mutual agreement exception has been submitted to NMFS.
    (iv) Mutual agreement exception. An MS/CV-endorsed permit's catch 
history assignment can be released from a processor obligation through 
a mutual agreement exception. The MS/CV-endorsed permit owner must 
submit a copy to NMFS of the written agreement that includes the 
initial MS permit owner's acknowledgment of the release of the MS/CV-
endorsed permit owner's processor obligation and the MS/CV-endorsed 
permit owner must identify a processor obligation for a new MS permit.
    (v) MS permit withdrawal. If an MS permit withdraws from the 
mothership fishery before the resulting amounts of catch history 
assignment have been announced by NMFS, any MS/CV-endorsed permit 
obligated to the MS permit may elect to participate in the coop or non-
coop fishery. In such an event, the MS permit owner must provide 
written notification of its withdrawal to NMFS and all MS/CV-endorsed 
permits that are obligated to the MS permit, and the owner of each MS/
CV-endorsed permit obligated to the MS permit must provide written 
notification to NMFS of their intent to either participate in the non-
coop fishery or the coop fishery, and if participating in the coop 
fishery must identify a processor obligation for a new MS permit.
    (vi) Submission of a mutual agreement exception or MS permit 
withdrawal. Written notification of a mutual exception agreement or MS 
permit withdrawal must be submitted to NMFS, Northwest Region, Permits 
Office, Bldg. 1, 7600 Sand Point Way, NE., Seattle, WA 98115.
    (d) MS coop permit and agreement--(1) Eligibility and registration. 
(i) Eligibility. To be an eligible coop entity a group of MS/CV-
endorsed permit owners (coop members) must be a recognized entity under 
the laws of the United States or the laws of a State and represent all 
of the coop members.
    (ii) Annual registration and deadline. Each year, a coop entity 
intending to participate as a coop under the MS Coop Program must 
submit an application for a MS coop permit between February 1 and March 
31 of the year in which it intends to fish. NMFS will not consider any 
applications received after March 31. A MS coop permit expires on 
December 31 of the year in which it was issued.
    (iii) Application for MS coop permit. The designated coop manager, 
on behalf of the coop entity, must submit a complete application form 
and include each of the items listed in paragraph (d)(1)(iii)(A) of 
this section. Only complete applications will be considered for 
issuance of a MS coop permit. An application will not be considered 
complete if any required application fees and annual coop reports have 
not been received by NMFS. NMFS may request additional supplemental 
documentation as necessary to make a determination of whether to 
approve or disapprove the application. Application forms and 
instruction are available on the NMFS NWR Web site (http://www.nwr.noaa.gov) or by request from NMFS. The designated coop manager 
must sign the application acknowledging the responsibilities of a 
designated coop manager defined in paragraph (b)(3) of this section.
    (A) Coop agreement. Signed copies of the coop agreement must be 
submitted to NMFS before the coop is authorized to engage in fishing 
activities. A coop agreement must include all of the information listed 
in this paragraph to be considered a complete coop agreement. NMFS will 
only review complete coop agreements. A coop agreement will not be 
accepted unless it includes all of the required information; the 
descriptive items listed in this paragraph appear to meet the stated 
purpose; and information submitted is correct and accurate.
    (1) Coop agreement contents. Each coop agreement must be signed by 
all of the coop members (MS/CV-endorsed permit owners) and include the 
following information:
    (i) A list of all vessels, and permit holders participating in the 
coop and their share of the allocated catch which must match the amount 
distributed to individual permit owners by NMFS.
    (ii) All MS/CV-endorsed limited entry member permits identified by 
permit number.
    (iii) A processor obligation clause indicating that each MS/CV-
endorsed permit has notified a specific MS permit by September 1 of the 
previous year of that MS/CV-endorsed permit's intent to obligate its 
catch history assignment to that MS permit, except that for the 2011 
fishery, such notification must have been made prior to submission of 
the MS coop permit application.
    (iv) A clause indicting that each member MS/CV-endorsed permit's 
catch history assignment is based on the catch history assignment 
calculation by NMFS used for distribution to the coop.
    (v) A description of the coop's plan to adequately monitor and 
account for the catch of Pacific whiting and non-whiting groundfish 
allocations, and to monitor and account for the catch of prohibited 
species.
    (vi) A clause stating that if a permit is transferred during the 
effective period of the coop agreement, any new owners of that member 
permit would be coop members required to comply with membership 
restrictions in the coop agreement.
    (vii) A description of the coop's enforcement and penalty 
provisions adequate to maintain catch of Pacific whiting and non-
whiting groundfish within the allocations.
    (viii) A description of measures to reduce catch of overfished 
species.
    (ix) A clause describing the co-op manager's responsibility for 
managing inter-coop reassignments of catch history assignment, should 
any occur.
    (x) A clause describing how the annual report will be produced to 
document the coop's catch, bycatch data, inseason catch history 
reassignments and any other significant activities undertaken by the 
coop during the year, and the submission deadlines for that report.
    (xi) Identification of the designated coop manager.
    (xii) Provisions that prohibit member permit owners that have 
incurred legal sanctions that prevent them from fishing groundfish in 
the Council region from fishing in the coop.
    (2) Inter-coop agreement. The coop entity must provide, at the time 
of annual application, copies of any inter-coop agreement(s) into which 
the coop has entered. Such agreements must incorporate and honor the 
provisions of the individual coop agreements for each coop that is a 
party to the inter-coop agreement. Inter-coop agreements are specified 
at paragraph (e) of this section.
    (B) Acceptance of a coop agreement--(1) If NMFS does not accept the 
coop agreement, the coop permit application will be returned to the 
applicant with a letter stating the reasons the coop agreement was not 
accepted by NMFS.
    (2) Coop agreements that are not accepted may be resubmitted for 
review by sufficiently addressing the deficiencies identified in the 
NMFS letter and resubmitting the entire coop permit application by the 
date specified in the NMFS letter.
    (3) An accepted coop agreement that was submitted with the MS coop 
permit application and for which a MS coop permit was issued will 
remain in place through the end of the calendar year. The designated 
coop manager must resubmit a complete coop agreement to

[[Page 78410]]

NMFS consistent with the coop agreement contents described in paragraph 
(d)(1)(iii)(A)(1) of this section if there is a material change to the 
coop agreement.
    (4) Within 7 calendar days following a material change, the 
designated coop manager must notify NMFS of the material change. Within 
30 calendar days, the designated coop manger must submit to NMFS the 
revised coop agreement with a letter that describes such changes. NMFS 
will review the material changes and provide a letter to the coop 
manager that either accepts the changes as given or does not accept the 
revised coop agreement with a letter stating the reasons that it was 
not accepted by NMFS. The coop may resubmit the coop agreement with 
further revisions to the material changes responding to NMFS concerns.
    (iv) Effective date of MS coop permit. A MS coop permit will be 
effective upon the date approved by NMFS and will allow fishing from 
the start of the MS sector primary whiting season until the end of the 
calendar year or until one or more of the following events occur, 
whichever comes first:
    (A) NMFS permanently closes the mothership sector fishing season 
for the year or a specific MS coop or the designated coop manager 
notifies NMFS that the coop has completed fishing for the calendar 
year,
    (B) The coop has reached its Pacific whiting allocation,
    (C) A material change to the coop agreement has occurred and the 
designated coop manager failed to notify NMFS within 7 calendar days of 
the material change and submit to NMFS the revised coop agreement with 
a letter that describes such changes within 30 calendar days, or
    (D) NMFS has determined that a coop failure occurred.
    (2) Initial administrative determination. For all complete 
applications, NMFS will issue an IAD that either approves or 
disapproves the application. If approved, the IAD will include a MS 
coop permit. If disapproved, the IAD will provide the reasons for this 
determination.
    (3) Appeals. An appeal to a MS coop permit action follows the same 
process as the general permit appeals process defined at Sec.  
660.25(g), subpart C.
    (4) Fees. The Regional Administrator is authorized to charge fees 
for administrative costs associated with the issuance of a MS coop 
permit consistent with the provisions given at Sec.  660.25(f), subpart 
C.
    (5) Cost recovery. [Reserved]
    (e) Inter-coop agreements--(1) General. Permitted MS coops may 
voluntarily enter into inter-coop agreements for the purpose of sharing 
permitted MS coop allocations of Pacific whiting and allocated non-
whiting groundfish. If two or more permitted MS coops enter into an 
inter-coop agreement, the inter-coop agreement must incorporate and 
honor the provisions of each permitted MS coop subject to the inter-
coop agreement.
    (2) Submission of inter-coop agreements. Inter-coop agreements must 
be submitted to NMFS for acceptance.
    (3) Inter-coop agreement review process. Each designated coop 
manager must submit a copy of the inter-coop agreement signed by both 
designated coop managers for review. Complete coop agreements 
containing all items listed under paragraph (d)(1)(iii)(A)(1) will be 
reviewed by NMFS.
* * * * *
    (f) * * *
    (2) Renewal, change of permit ownership, or vessel registration--
(i) Renewal. An MS permit must be renewed annually consistent with the 
limited entry permit regulations given at Sec.  660.25(b)(4), subpart 
C. If a vessel registered to the MS permit will operate as a mothership 
in the year for which the permit is renewed, the permit owner must make 
a declaration as part of the permit renewal that while participating in 
the whiting fishery it will operate solely as a mothership during the 
calendar year to which its limited entry permit applies. Any such 
declaration is binding on the vessel for the calendar year, even if the 
permit is transferred during the year, unless it is rescinded in 
response to a written request from the permit owner. Any request to 
rescind a declaration must be made by the permit holder and granted in 
writing by the Regional Administrator before any unprocessed whiting 
has been taken on board the vessel that calendar year.
    (ii) Change of permit ownership. An MS permit is subject to the 
limited entry permit change in permit ownership regulations given at 
Sec.  660.25(b)(4), subpart C.
    (iii) Change of vessel registration. An MS permit is subject to the 
limited entry permit change of vessel registration regulations given at 
Sec.  660.25(b)(4), subpart C.
    (3) Accumulation limits--(i) MS permit usage limit. No person who 
owns an MS permit(s) may register the MS permit(s) to vessels that 
cumulatively process more than 45 percent of the annual mothership 
sector Pacific whiting allocation. For purposes of determining 
accumulation limits, NMFS requires that permit owners submit a complete 
trawl ownership interest form for the permit owner as part of annual 
renewal for the MS permit. An ownership interest form will also be 
required whenever a new permit owner obtains an MS permit as part of a 
permit transfer request. Accumulation limits will be determined by 
calculating the percentage of ownership interest a person has in any MS 
permit. Determination of ownership interest will subject to the 
individual and collective rule.
    (ii) Ownership--individual and collective rule. The ownership that 
counts toward a person's accumulation limit will include:
    (A) Any MS permit owned by that person, and
    (B) A portion of any MS permit owned by an entity in which that 
person has an interest, where the person's share of interest in that 
entity will determine the portion of that entity's ownership that 
counts toward the person's limit.
    (iii) [Reserved]
    (iv) Trawl identification of ownership interest form. Any person 
that is applying for or renewing an MS permit shall document those 
persons that have an ownership interest in the permit greater than or 
equal to 2 percent. This ownership interest must be documented with the 
SFD via the Trawl Identification of Ownership Interest Form. SFD will 
not issue an MS Permit unless the Trawl Identification of Ownership 
Interest Form has been completed. NMFS may request additional 
information of the applicant as necessary to verify compliance with 
accumulation limits.
    (4) Appeals. An appeal to an MS permit action follows the same 
process as the general permit appeals process defined at Sec.  
660.25(g), subpart C.
* * * * *
    (6) * * *
    (vi) Initial administrative determination (IAD). NMFS will issue an 
IAD for all complete, certified applications received by the 
application deadline date. If NMFS approves an application for initial 
issuance of an MS permit, the applicant will receive an MS permit. If 
NMFS disapproves an application, the IAD will provide the reasons. If 
the applicant does not appeal the IAD within 60 calendar days of the 
date on the IAD, the IAD becomes the final decision of the Regional 
Administrator acting on behalf of the Secretary of Commerce.
* * * * *
    (g) Mothership catcher vessel (MS/CV)--endorsed permit--(1) 
General. Any vessel that delivers whiting to a mothership processor in 
the Pacific whiting fishery mothership sector must

[[Page 78411]]

be registered to an MS/CV-endorsed permit, except that a vessel 
registered to limited entry trawl permit without an MS/CV or C/P 
endorsement may fish for a coop if authorized by the coop. Within the 
MS Coop Program, an MS/CV-endorsed permit may participate in an MS coop 
or in the non-coop fishery. An MS/CV-endorsed permit is a limited entry 
permit and is subject to the limited entry permit provisions given at 
Sec.  660.25(b), subpart C.
* * * * *
    (iv) Restrictions on processing for MS/CV-endorsed permits. A 
vessel registered to an MS/CV-endorsed permit in a given year shall not 
engage in processing of Pacific whiting during that year.
* * * * *
    (2) Renewal, change of permit owner, vessel registration, or 
combination--(i) Renewal. An MS/CV-endorsed permit must be renewed 
annually consistent with the limited entry permit regulations given at 
Sec.  660.25(b)(4), subpart C. During renewal, all MS/CV-endorsed 
limited entry permit owners must make a preliminary declaration 
regarding their intent to participate in the coop or non-coop portion 
of the MS Coop Program for the following year. If the owner of the MS/
CV-endorsed permit intends to participate in the coop portion of the MS 
Coop Program, they must also declare which MS vessel to which they 
intend to obligate the permit's catch history assignment. MS/CV-
endorsed permits not obligated to a permitted MS coop by March 31 of 
the fishing year will be assigned to the non-coop fishery. For an MS/
CV-endorsed permit that is not renewed, the following occurs:
    (A) For the first year after the permit is not renewed, the permit 
will be extinguished, and the catch history assignment from that permit 
will be assigned to the non-coop fishery.
    (B) In the year after the permit is extinguished (the second year 
after the permit is not renewed), the catch history assignment from 
that permit will be redistributed proportionally to all valid MS/CV-
endorsed permits.
    (ii) Change of permit ownership. An MS/CV-endorsed permit is 
subject to the limited entry permit change in permit ownership 
regulations given at Sec.  660.25(b)(4), subpart C.
    (iii) Change of vessel registration. An MS/CV-endorsed permit is 
subject to the limited entry permit change of vessel registration 
regulations given at Sec.  660.25(b)(4), subpart C.
    (iv) Combination. An MS/CV-endorsed permit may be combined with one 
or more other limited entry trawl permits; the resulting permit will be 
a single permit with an increased size endorsement. If the MS/CV-
endorsed permit is combined with another limited entry trawl-endorsed 
permit other than a C/P-endorsed permit, the resulting permit will be 
MS/CV-endorsed. If an MS/CV-endorsed permit is combined with a C/P-
endorsed permit, the resulting permit will be exclusively a C/P-
endorsed permit, and will not have an MS/CV endorsement. If an MS/CV-
endorsed permit is combined with another MS/CV-endorsed permit, the 
combined catch history assignment of the permit(s) will be added to the 
active permit (the permit remaining after combination) and the other 
permit will be retired. NMFS will not approve a permit combination if 
it results in a person exceeding the accumulation limits specified at 
paragraph (g)(3) of this section. Any request to combine permits is 
subject to the provision provided at Sec.  660.25(b), including the 
combination formula for resulting size endorsements.
* * * * *
    (3) * * *
    (i) * * *
    (C) Trawl identification of ownership interest form. Any person 
that owns a limited entry trawl permit and that is applying for or 
renewing an MS/CV endorsement shall document those persons that have an 
ownership interest in the permit greater than or equal to 2 percent. 
This ownership interest must be documented with the SFD via the Trawl 
Identification of Ownership Interest Form. SFD will not issue an MS/CV 
endorsement unless the Trawl Identification of Ownership Interest Form 
has been completed. NMFS may request additional information of the 
applicant as necessary to verify compliance with accumulation limits. 
Further, if SFD discovers through review of the Trawl Identification of 
Ownership Interest Form that a person owns or controls more than the 
accumulation limits, the person will be subject to divestiture 
provisions specified in paragraph (g)(3)(i)(D) of this section.
* * * * *
    (ii) Catcher vessel usage limit. No vessel may catch more than 30 
percent of the mothership sector's whiting allocation.
    (4) Appeals. An appeal to an MS/CV-endorsed permit action follows 
the same process as the general permit appeals process defined at Sec.  
660.25(g), subpart C.
* * * * *
    (6) * * *
    (viii) Initial Administrative Determination (IAD). NMFS will issue 
an IAD for all complete, certified applications received by the 
application deadline date. If NMFS approves an application for initial 
issuance of an MS/CV-endorsed permit and associated catch history 
assignment, the applicant will receive an MS/CV endorsement on a 
limited entry trawl permit specifying the amounts of catch history 
assignment for which the applicant has qualified. If NMFS disapproves 
an application, the IAD will provide the reasons. If known at the time 
of the IAD, NMFS will indicate if the owner of the MS/CV-endorsed 
permit has ownership interest in catch history assignments that exceed 
the accumulation limits and are subject to divestiture provisions given 
at paragraph (g)(3)(i)(D) of this section. If the applicant does not 
appeal the IAD within 60 calendar days of the date on the IAD, the IAD 
becomes the final decision of the Regional Administrator acting on 
behalf of the Secretary of Commerce.
* * * * *
    (h) Non-coop fishery--(1) Access to non-coop fishery allocation. 
All vessels registered to the MS/CV-endorsed permits assigned to the 
non-coop fishery will have access to harvest and deliver the aggregate 
catch history assignment of all MS/CV permits assigned to the non-coop 
fishery.
    (2) Non-coop fishery closure. The non-coop fishery will be closed 
by automatic action as specified at Sec.  660.60(d) when the Pacific 
whiting or non-whiting allocations to the non-coop fishery have been 
reached or are projected to be reached.
    (i) Retention requirements. Catcher vessels participating in the MS 
Coop Program may discard minor operational amounts of catch at sea if 
the observer has accounted for the discard (i.e., a maximized retention 
fishery).
    (j) Observer requirements--(1) Observer coverage requirements. (i) 
Coverage. (A) Motherships. Any vessel registered to an MS permit 125 ft 
(38.1 m) LOA or longer must carry two NMFS-certified observers, and any 
vessel registered to an MS permit shorter than 125 ft (38.1 m) LOA must 
carry one NMFS-certified observer, each day that the vessel is used to 
take, retain, receive, land, process, or transport groundfish.
    (B) Catcher vessels. Any vessel delivering catch to any mothership 
must carry one NMFS-certified observer each day that the vessel is used 
to take groundfish.
    (ii) Observer workload--(A) Motherships. The time required for the

[[Page 78412]]

observer to complete sampling duties must not exceed 12 consecutive 
hours in each 24-hour period.
    (B) Catcher vessels. If an observer is unable to perform their 
duties for any reason, the vessel is required to be in port within 36 
hours of the last haul sampled by the observer.
    (iii) Refusal to board. Any boarding refusal on the part of the 
observer or vessel must be reported to the observer program and NOAA 
OLE by the observer provider. The observer must be available for an 
interview with the observer program or NOAA OLE if necessary.
    (2) Vessel responsibilities. An operator and/or crew of a vessel 
required to carry an observer must provide:
    (i) Accommodations and food--(A) Motherships. Provide 
accommodations and food that are equivalent to those provided for 
officers, engineers, foremen, deck-bosses or other management level 
personnel of the vessel.
    (B) Catcher vessels--(1) Accommodations and food for trips less 
than 24 hours must be equivalent to those provided for the crew.
    (2) Accommodations and food for trips of 24 hours or more must be 
equivalent to those provided for the crew and must include berthing 
space, a space that is intended to be used for sleeping and is provided 
with installed bunks and mattresses. A mattress or futon on the floor 
or a cot is not acceptable if a regular bunk is provided to any crew 
member, unless other arrangements are approved in advance by the 
Regional Administrator or their designee.
    (ii) Safe conditions. Motherships and Catcher Vessels must:
    (A) Maintain safe conditions on the vessel for the protection of 
observers including adherence to all U.S. Coast Guard and other 
applicable rules, regulations, or statutes pertaining to safe operation 
of the vessel including, but not limited to, rules of the road, vessel 
stability, emergency drills, emergency equipment, vessel maintenance, 
vessel general condition, and port bar crossings. An observer may 
refuse boarding or reboarding a vessel and may request a vessel return 
to port if operated in an unsafe manner or if unsafe conditions are 
indentified.
    (B) Have on board a valid Commercial Fishing Vessel Safety Decal 
that certifies compliance with regulations found in 33 CFR chapter I 
and 46 CFR Chapter I, a certificate of compliance issued pursuant to 46 
CFR 28.710 or a valid certificate of inspection pursuant to 46 U.S.C. 
3311.
    (iii) Computer hardware and software--(A) Motherships must:
    (1) Provide hardware and software pursuant to regulations at 
Sec. Sec.  679.50(g)(1)(iii)(B)(1) through 679.50(g)(1)(iii)(B)(3).
    (2) Provide the observer(s) access to a computer required under 
paragraph (j)(2)(iii)(A) of this section, and that is connected to a 
communication device that provides a point-to-point connection to the 
NMFS host computer.
    (3) Ensure that the mothership has installed the most recent 
release of NMFS data entry software provided by the Regional 
Administrator, or other approved software prior to the vessel 
receiving, catching or processing IFQ species.
    (4) Ensure that the communication equipment required in paragraph 
(j)(2)(iii) of this section and that is used by observers to enter and 
transmit data, is fully functional and operational. ``Functional'' 
means that all the tasks and components of the NMFS supplied, or other 
approved, software described at paragraph (j)(2)(iii) of this section 
and the data transmissions to NMFS can be executed effectively aboard 
the vessel by the communications equipment.
    (B) Catcher vessels. [Reserved]
    (iv) Vessel position. Allow observer(s) access to the vessel's 
navigation equipment and personnel, on request, to determine the 
vessel's position.
    (v) Access. Allow observer(s) free and unobstructed access to the 
vessel's bridge, trawl or working decks, holding bins, processing 
areas, freezer spaces, weight scales, cargo holds, and any other space 
that may be used to hold, process, weigh, or store fish or fish 
products at any time.
    (vi) Prior notification. Notify observer(s) at least 15 minutes 
before fish are brought on board, or fish and fish products are 
transferred from the vessel, to allow sampling the catch or observing 
the transfer.
    (vii) Records. Allow observer(s) to inspect and copy any state or 
Federal logbook maintained voluntarily or as required by regulation.
    (viii) Assistance. Provide all other reasonable assistance to 
enable observer(s) to carry out their duties, including, but not 
limited to:
    (A) Measuring decks, codends, and holding bins.
    (B) Providing the observer(s) with a safe work area.
    (C) Collecting samples of catch.
    (D) Collecting and carrying baskets of fish.
    (E) Allowing the observer(s) to collect biological data and 
samples.
    (F) Providing adequate space for storage of biological samples.
    (ix) Sample station and operational requirements.
    (A) Motherships. To allow the observer to carry out required 
duties, the vessel owner must provide an observer sampling station that 
meets the following requirements:
    (1) Accessibility. The observer sampling station must be available 
to the observer at all times.
    (2) Location. The observer sampling station must be located within 
4 m of the location from which the observer samples unsorted catch.
    (3) Access. Unobstructed passage must be provided between the 
observer sampling station and the location where the observer collects 
sample catch.
    (4) Minimum work space. The observer must have a working area of at 
least 4.5 square meters, including the observer's sampling table, for 
sampling and storage of fish to be sampled. The observer must be able 
to stand upright and have a work area at least 0.9 m deep in the area 
in front of the table and scale.
    (5) Table. The observer sampling station must include a table at 
least 0.6 m deep, 1.2 m wide and 0.9 m high and no more than 1.1 m 
high. The entire surface area of the table must be available for use by 
the observer. Any area for the observer sampling scale is in addition 
to the minimum space requirements for the table. The observer's 
sampling table must be secured to the floor or wall.
    (6) Diverter board. The conveyor belt conveying unsorted catch must 
have a removable board (``diverter board'') to allow all fish to be 
diverted from the belt directly into the observer's sampling baskets. 
The diverter board must be located downstream of the scale used to 
weigh total catch. At least 1 m of accessible belt space, located 
downstream of the scale used to weigh total catch, must be available 
for the observer's use when sampling.
    (7) Other requirements. The sampling station must be in a well-
drained area that includes floor grating (or other material that 
prevents slipping), lighting adequate for day or night sampling, and a 
hose that supplies fresh or sea water to the observer.
    (8) Observer sampling scale. The observer sample station must 
include a NMFS-approved platform scale (pursuant to requirements at 
Sec.  679.28(j)(2)) with a capacity of at least 50 kg located within 1 
m of the observer's sampling table. The scale must be mounted so that 
the weighing surface is no more than 0.7 m above the floor.
    (B) Catcher vessels. To allow the observer to carry out the 
required

[[Page 78413]]

duties, the vessel owner must provide an observer sampling station that 
is:
    (1) Accessible. The observer sampling station must be available to 
the observer at all times.
    (2) Limits hazards. To the extent possible, the area should be free 
and clear of hazards including, but not limited to, moving fishing 
gear, stored fishing gear, inclement weather conditions, and open 
hatches.
    (x) Transfer at sea. Observers may be transferred at-sea between 
motherships, between motherships and catcher-processors, or between a 
mothership and a catcher vessel. Transfers at-sea between catcher 
vessels is prohibited. For transfers, both vessels must:
    (A) Ensure that transfers of observers at sea via small boat under 
its own power are carried out during daylight hours, under safe 
conditions, and with the agreement of observers involved.
    (B) Notify observers at least 3 hours before observers are 
transferred, such that the observers can finish any sampling work, 
collect personal belongings, equipment, and scientific samples.
    (C) Provide a safe pilot ladder and conduct the transfer to ensure 
the safety of observers during transfers.
    (D) Provide an experienced crew member to assist observers in the 
small boat in which any transfer is made.
    (3) Procurement of observer services--(i) Motherships--(A) Owners 
of vessels required to carry observers under paragraph (j)(1)(i) of 
this section must arrange for observer services from a permitted 
observer provider, except that:
    (1) Vessels are required to procure observer services directly from 
NMFS when NMFS has determined and given notification that the vessel 
must carry NMFS staff or an individual authorized by NMFS in lieu of an 
observer provided by a permitted observer provider.
    (2) Vessels are required to procure observer services directly from 
NMFS and a permitted observer provider when NMFS has determined and 
given notification that the vessel must carry NMFS staff and/or 
individuals authorized by NMFS, in addition to an observer provided by 
a permitted observer provider.
    (B) [Reserved]
    (ii) Catcher vessels--(A) Owners of vessels required to carry 
observers under paragraph (j)(1)(i) of this section must arrange for 
observer services from a permitted observer provider, except that:
    (1) Vessels are required to procure observer services directly from 
NMFS when NMFS has determined and given notification that the vessel 
must carry NMFS staff or an individual authorized by NMFS in lieu of an 
observer provided by a permitted observer provider.
    (2) Vessels are required to procure observer services directly from 
NMFS and a permitted observer provider when NMFS has determined and 
given notification that the vessel must carry NMFS staff and/or 
individuals authorized by NMFS, in addition to an observer provided by 
a permitted observer provider.
    (B) [Reserved]
    (4) Application to become an observer provider--(i) Motherships. 
Any observer provider holding a valid permit issued by the North 
Pacific Groundfish Observer Program in 2010 can supply observer 
services and will be issued a West Coast Groundfish Observer Program 
permit.
    (ii) Catcher vessels. [Reserved]
    (5) Observer provider responsibilities--(i) Provide qualified 
candidates to serve as observers. Observer providers must provide 
qualified candidates to serve as observers. To be qualified, a 
candidate must have:
    (A) A Bachelor's degree or higher from an accredited college or 
university with a major in one of the natural sciences;
    (B) Successfully completed a minimum of 30 semester hours or 
equivalent in applicable biological sciences with extensive use of 
dichotomous keys in at least one course;
    (C) Successfully completed at least one undergraduate course each 
in math and statistics with a minimum of 5 semester hours total for 
both; and
    (D) Computer skills that enable the candidate to work competently 
with standard database software and computer hardware.
    (ii) Hiring an observer candidate--(A) Motherships.
    (1) The observer provider must provide the candidate a copy of 
NMFS-provided pamphlets, information and other literature describing 
observer duties (i.e. The At-Sea Hake Observer Program's Observer 
Manual) prior to hiring the candidate. Observer job information is 
available from the Observer Program Office's Web site at http://www.nwfsc.noaa.gov/research/divisions/fram/observer/atseahake.cfm.
    (2) Observer contracts. The observer provider must have a written 
contract or a written contract addendum that is signed by the observer 
and observer provider prior to the observer's deployment with the 
following clauses:
    (i) That all the observer's in-season messages and catch reports 
required to be sent while deployed are delivered to the Observer 
Program Office as specified by written Observer Program instructions;
    (ii) That the observer inform the observer provider prior to the 
time of embarkation if he or she is experiencing any new mental illness 
or physical ailments or injury since submission of the physician's 
statement as required as a qualified observer candidate that would 
prevent him or her from performing their assigned duties.
    (B) Catcher vessels--(1) Provide the candidate a copy of NMFS-
provided pamphlets, information and other literature describing 
observer duties, for example, the West Coast Groundfish Observer 
Program's sampling manual. Observer job information is available from 
the Observer Program Office's Web site at http://www.nwfsc.noaa.gov/research/divisions/fram/observer/index.cfm.
    (2) Observer contracts. The observer provider must have a written 
contract or a written contract addendum that is signed by the observer 
and observer provider prior to the observer's deployment with the 
following clauses:
    (i) That all the observer's in-season messages and catch reports 
required to be sent while deployed are delivered to the Observer 
Program Office as specified by written Observer Program instructions;
    (ii) That the observer inform the observer provider prior to the 
time of embarkation if he or she is experiencing any new mental illness 
or physical ailments or injury since submission of the physician's 
statement as required as a qualified observer candidate that would 
prevent him or her from performing their assigned duties; and
    (iii) That the observer completes a basic cardiopulmonary 
resuscitation/first aid course prior to the end of the NMFS West Coast 
Groundfish Observer Training class.
    (iii) Ensure that observers complete duties in a timely manner--(A) 
Motherships. An observer provider must ensure that observers employed 
by that observer provider do the following in a complete and timely 
manner:
    (1) Submit to NMFS all data, logbooks, and reports as required by 
the Observer Manual;
    (2) Report for his or her scheduled debriefing and complete all 
debriefing responsibilities;
    (3) Return all sampling and safety gear to the Observer Program 
Office;
    (4) Submit all biological samples from the observer's deployment by 
the completion of the electronic vessel and/or processor survey(s); and

[[Page 78414]]

    (5) Immediately report to the Observer Program Office and the NOAA 
OLE any refusal to board an assigned vessel.
    (B) Catcher vessels. An observer provider must ensure that 
observers employed by that observer provider do the following in a 
complete and timely manner:
    (1) Submit to NMFS all data, logbooks, and reports as required by 
the Observer Manual;
    (2) Report for his or her scheduled debriefing and complete all 
debriefing responsibilities; and
    (3) Return all sampling and safety gear to the Observer Program 
Office.
    (4) Immediately report to the Observer Program Office and the NOAA 
OLE any refusal to board an assigned vessel.
    (iv) Observers provided to vessel--(A) Motherships. Observers 
provided to mothership vessels:
    (1) Must have a valid North Pacific groundfish observer 
certification endorsement and an At-Sea Hake Observer Program 
certification;
    (2) Must not have not informed the provider prior to the time of 
embarkation that he or she is experiencing a mental illness or a 
physical ailment or injury developed since submission of the 
physician's statement that would prevent him or her from performing his 
or her assigned duties; and
    (3) Must have successfully completed all NMFS required training and 
briefing before deployment.
    (B) Catcher vessels. Observers provided to catcher vessels:
    (1) Must have a valid West Coast Groundfish observer certification;
    (2) Must have not informed the provider prior to the time of 
embarkation that he or she is experiencing a mental illness or a 
physical ailment or injury developed since submission of the 
physician's statement, as required in paragraph (j)(5)(x)(B)(2) of this 
section that would prevent him or her from performing his or her 
assigned duties; and
    (3) Must have successfully completed all NMFS required training and 
briefing before deployment.
    (v) Respond to industry requests for observers. An observer 
provider must provide an observer for deployment pursuant to the terms 
of the contractual relationship with the vessel to fulfill vessel 
requirements for observer coverage specified at paragraph (j)(1)(i) of 
this section. An alternate observer must be supplied in each case where 
injury or illness prevents the observer from performing his or her 
duties or where the observer resigns prior to completion of his or her 
duties. If the observer provider is unable to respond to an industry 
request for observer coverage from a vessel for whom the provider is in 
a contractual relationship due to lack of available observers by the 
estimated embarking time of the vessel, the provider must report it to 
the observer program at least 4 hours prior to the vessel's estimated 
embarking time.
    (vi) Provide observer salaries and benefits. An observer provider 
must provide to its observer employees salaries and any other benefits 
and personnel services in accordance with the terms of each observer's 
contract.
    (vii) Provide observer deployment logistics--(A) Motherships. An 
observer provider must provide to each of its observers under contract:
    (1) All necessary transportation, including arrangements and 
logistics, of observers to the initial location of deployment, to all 
subsequent vessel assignments during that deployment, and to the 
debriefing location when a deployment ends for any reason; and
    (2) Lodging, per diem, and any other services necessary to 
observers assigned to fishing vessels.
    (3) An observer under contract may be housed on a vessel to which 
he or she is assigned:
    (i) Prior to their vessel's initial departure from port;
    (ii) For a period not to exceed twenty-four hours following the 
completion of an offload when the observer has duties and is scheduled 
to disembark; or
    (iii) For a period not to exceed twenty-four hours following the 
vessel's arrival in port when the observer is scheduled to disembark.
    (iv) During all periods an observer is housed on a vessel, the 
observer provider must ensure that the vessel operator or at least one 
crew member is aboard.
    (v) An observer under contract who is between vessel assignments 
must be provided with shoreside accommodations pursuant to the terms of 
the contract between the observer provider and the observers. If the 
observer provider is responsible for providing accommodations under the 
contract with the observer, the accommodations must be at a licensed 
hotel, motel, bed and breakfast, or other shoreside accommodations for 
the duration of each period between vessel or shoreside assignments. 
Such accommodations must include an assigned bed for each observer and 
no other person may be assigned that bed for the duration of that 
observer's stay. Additionally, no more than four beds may be in any 
room housing observers at accommodations meeting the requirements of 
this section.
    (B) Catcher vessels. An observer provider must ensure each of its 
observers under contract:
    (1) Has an individually assigned mobile or cell phones, in working 
order, for all necessary communication. An observer provider may 
alternatively compensate observers for the use of the observer's 
personal cell phone or pager for communications made in support of, or 
necessary for, the observer's duties.
    (2) Calls into the NMFS deployment hotline upon departing and 
arriving into port for each trip to leave the following information: 
Observer name, phone number, vessel departing on, expected trip end 
date and time.
    (3) Remains available to NOAA OLE and the Observer Program until 
the conclusion of debriefing.
    (4) Receives all necessary transportation, including arrangements 
and logistics, of observers to the initial location of deployment, to 
all subsequent vessel assignments during that deployment, and to the 
debriefing location when a deployment ends for any reason; and
    (5) Receives lodging, per diem, and any other services necessary to 
observers assigned to fishing vessels.
    (i) An observer under contract may be housed on a vessel to which 
he or she is assigned: Prior to their vessel's initial departure from 
port; for a period not to exceed 24 hours following the completion of 
an offload when the observer has duties and is scheduled to disembark; 
or for a period not to exceed twenty-four hours following the vessel's 
arrival in port when the observer is scheduled to disembark.
    (ii) During all periods an observer is housed on a vessel, the 
observer provider must ensure that the vessel operator or at least one 
crew member is aboard.
    (iii) Otherwise, each observer between vessels, while still under 
contract with a permitted observer provider, shall be provided with 
accommodations in accordance with the contract between the observer and 
the observer provider. If the observer provider is responsible for 
providing accommodations under the contract with the observer, the 
accommodations must be at a licensed hotel, motel, bed and breakfast, 
or other shoreside accommodations that has an assigned bed for each 
observer that no other person may be assigned to for the duration of 
that observer's stay. Additionally, no more than four beds may be in 
any room housing observers at accommodations meeting the requirements 
of this section.
    (viii) Observer deployment limitations--(A) Motherships. Unless 
alternative arrangements are approved

[[Page 78415]]

by the Observer Program Office, an observer provider must not:
    (1) Deploy an observer on the same vessel more than 90 days in a 
12-month period;
    (2) Deploy an observer for more than 90 days in a single 
deployment;
    (3) Include more than four vessels assignments in a single 
deployment, or
    (4) Disembark an observer from a vessel before that observer has 
completed his or her sampling or data transmission duties.
    (B) Catcher vessels. Not deploy an observer on the same vessel more 
than 90 calendar days in a 12-month period.
    (ix) Verify vessel's safety decal. An observer provider must verify 
that a vessel has a valid USCG safety decal as required under paragraph 
(j)(2)(ii)(B) of this section before an observer may get underway 
aboard the vessel. One of the following acceptable means of 
verification must be used to verify the decal validity:
    (A) The observer provider or employee of the observer provider, 
including the observer, visually inspects the decal aboard the vessel 
and confirms that the decal is valid according to the decal date of 
issuance; or
    (B) The observer provider receives a hard copy of the USCG 
documentation of the decal issuance from the vessel owner or operator.
    (x) Maintain communications with observers. An observer provider 
must have an employee responsible for observer activities on call 24 
hours a day to handle emergencies involving observers or problems 
concerning observer logistics, whenever observers are at sea, in 
transit, or in port awaiting vessel reassignment.
    (xi) Maintain communications with the Observer Program Office. An 
observer provider must provide all of the following information by 
electronic transmission (e-mail), fax, or other method specified by 
NMFS.
    (A) Motherships--(1) Training and briefing registration materials. 
The observer provider must submit training and briefing registration 
materials to the Observer Program Office at least 5 business days prior 
to the beginning of a scheduled observer at-sea hake training or 
briefing session.
    (i) Registration materials consist of the date of requested 
training or briefing with a list of observers including each observer's 
full name (i.e., first, middle and last names).
    (ii) Projected observer assignments. Prior to the observer's 
completion of the training or briefing session, the observer provider 
must submit to the Observer Program Office a statement of projected 
observer assignments that include the observer's name; vessel, gear 
type, and vessel/processor code; port of embarkation; and area of 
fishing.
    (2) Observer debriefing registration. The observer provider must 
contact the At-Sea Hake Observer Program within 5 business days after 
the completion of an observer's deployment to schedule a date, time and 
location for debriefing. Observer debriefing registration information 
must be provided at the time of debriefing scheduling and must include 
the observer's name, cruise number, vessel name(s) and code(s), and 
requested debriefing date.
    (3) Observer provider contracts. If requested, observer providers 
must submit to the Observer Program Office a completed and unaltered 
copy of each type of signed and valid contract (including all 
attachments, appendices, addendums, and exhibits incorporated into the 
contract) between the observer provider and those entities requiring 
observer services under paragraph (j)(1)(i) of this section. Observer 
providers must also submit to the Observer Program Office upon request, 
a completed and unaltered copy of the current or most recent signed and 
valid contract (including all attachments, appendices, addendums, and 
exhibits incorporated into the contract and any agreements or policies 
with regard to observer compensation or salary levels) between the 
observer provider and the particular entity identified by the Observer 
Program or with specific observers. The copies must be submitted to the 
Observer Program Office via fax or mail within 5 business days of the 
request. Signed and valid contracts include the contracts an observer 
provider has with:
    (i) Vessels required to have observer coverage as specified at 
paragraph (j)(1)(i) of this section; and
    (ii) Observers.
    (4) Change in observer provider management and contact information. 
Observer providers must submit notification of any other change to 
provider contact information, including but not limited to, changes in 
contact name, phone number, email address, and address.
    (5) Other reports. Reports of the following must be submitted in 
writing to the At-Sea Hake Observer Program Office by the observer 
provider via fax or email address designated by the Observer Program 
Office within 24 hours after the observer provider becomes aware of the 
information:
    (i) Any information regarding possible observer harassment;
    (ii) Any information regarding any action prohibited under 
Sec. Sec.  660.112 or 600.725(o), (t) and (u);
    (iii) Any concerns about vessel safety or marine casualty under 46 
CFR 4.05-1(a)(1) through (7);
    (iv) Any observer illness or injury that prevents the observer from 
completing any of his or her duties described in the observer manual; 
and
    (v) Any information, allegations or reports regarding observer 
conflict of interest or breach of the standards of behavior described 
in observer provider policy.
    (B) Catcher vessels. An observer provider must provide all of the 
following information by electronic transmission (e-mail), fax, or 
other method specified by NMFS.
    (1) Observer training, briefing, and debriefing registration 
materials. This information must be submitted to the Observer Program 
Office at least 7 business days prior to the beginning of a scheduled 
West Coast groundfish observer certification training or briefing 
session.
    (i) Training registration materials consist of the following: Date 
of requested training; a list of observer candidates that includes each 
candidate's full name (i.e., first, middle and last names), date of 
birth, and gender; a copy of each candidate's academic transcripts and 
resume; a statement signed by the candidate under penalty of perjury 
which discloses the candidate's criminal convictions; projected 
observer assignments--Prior to the observer's completion of the 
training or briefing session, the observer provider must submit to the 
Observer Program Office a statement of projected observer assignments 
that include that includes each observer's name, current mailing 
address, e-mail address, phone numbers and port of embarkation (``home 
port''); and length of observers contract.
    (ii) Briefing registration materials consist of the following: Date 
and type of requested briefing session; list of observers to attend the 
briefing session, that includes each observer's full name (first, 
middle, and last names); projected observer assignments--Prior to the 
observer's completion of the training or briefing session, the observer 
provider must submit to the Observer Program Office a statement of 
projected observer assignments that include that includes each 
observer's name, current mailing address, e-mail address, phone numbers 
and port of embarkation (``home port''); and length of observer 
contract.
    (iii) Debriefing. The West Coast Groundfish Observer Program will 
notify the observer provider which observers require debriefing and the 
specific time period the provider has to schedule a date, time, and 
location for

[[Page 78416]]

debriefing. The observer provider must contact the West Coast 
Groundfish Observer program within 5 business days by telephone to 
schedule debriefings. Observer providers must immediately notify the 
observer program when observers end their contract earlier than 
anticipated.
    (2) Physical examination. A signed and dated statement from a 
licensed physician that he or she has physically examined an observer 
or observer candidate. The statement must confirm that, based on that 
physical examination, the observer or observer candidate does not have 
any health problems or conditions that would jeopardize that 
individual's safety or the safety of others while deployed, or prevent 
the observer or observer candidate from performing his or her duties 
satisfactorily. The statement must declare that, prior to the 
examination, the physician was made aware of the duties of the observer 
and the dangerous, remote, and rigorous nature of the work by reading 
the NMFS-prepared information. The physician's statement must be 
submitted to the Observer Program Office prior to certification of an 
observer. The physical exam must have occurred during the 12 months 
prior to the observer's or observer candidate's deployment. The 
physician's statement will expire 12 months after the physical exam 
occurred. A new physical exam must be performed, and accompanying 
statement submitted, prior to any deployment occurring after the 
expiration of the statement.
    (3) Certificates of insurance. Copies of ``certificates of 
insurance'', that names the NMFS Observer Program leader as the 
``certificate holder'', shall be submitted to the Observer Program 
Office by February 1 of each year. The certificates of insurance shall 
verify the following coverage provisions and state that the insurance 
company will notify the certificate holder if insurance coverage is 
changed or canceled.
    (i) Maritime Liability to cover ``seamen's'' claims under the 
Merchant Marine Act (Jones Act) and General Maritime Law ($1 million 
minimum).
    (ii) Coverage under the U.S. Longshore and Harbor Workers' 
Compensation Act ($1 million minimum).
    (iii) States Worker's Compensation as required.
    (iv) Commercial General Liability.
    (4) Observer provider contracts. If requested, observer providers 
must submit to the Observer Program Office a completed and unaltered 
copy of each type of signed and valid contract (including all 
attachments, appendices, addendums, and exhibits incorporated into the 
contract) between the observer provider and those entities requiring 
observer services under paragraph (j)(1)(i) of this section. Observer 
providers must also submit to the Observer Program Office upon request, 
a completed and unaltered copy of the current or most recent signed and 
valid contract (including all attachments, appendices, addendums, and 
exhibits incorporated into the contract and any agreements or policies 
with regard to observer compensation or salary levels) between the 
observer provider and the particular entity identified by the Observer 
Program or with specific observers. The copies must be submitted to the 
Observer Program Office via fax or mail within 5 business days of the 
request. Signed and valid contracts include the contracts an observer 
provider has with:
    (i) Vessels required to have observer coverage as specified at 
paragraph (j)(1)(i) of this section; and
    (ii) Observers.
    (5) Change in observer provider management and contact information. 
An observer provider must submit to the Observer Program office any 
change of management or contact information submitted on the provider's 
permit application under paragraphs (j)(4) of this section within 30 
days of the effective date of such change.
    (6) Boarding refusals. The observer provider must report to NMFS 
any trip that has been refused by an observer within 24 hours of the 
refusal.
    (7) Biological samples. The observer provider must ensure that 
biological samples are stored/handled properly prior to delivery/
transport to NMFS.
    (8) Observer status report. Each Tuesday, observer providers must 
provide NMFS with an updated list of contact information for all 
observers that includes the observer's name, mailing address, e-mail 
address, phone numbers, port of embarkation (``home port''), fishery 
deployed the previous week and whether or not the observer is ``in 
service'', indicating when the observer has requested leave and/or is 
not currently working for the provider.
    (9) Providers must submit to NMFS, if requested, copies of any 
information developed and used by the observer providers distributed to 
vessels, such as informational pamphlets, payment notification, 
description of observer duties, etc.
    (10) Other reports. Reports of the following must be submitted in 
writing to the At-Sea Hake or West Coast Groundfish Observer Program 
Office by the observer provider via fax or email address designated by 
the Observer Program Office within 24 hours after the observer provider 
becomes aware of the information:
    (i) Any information regarding possible observer harassment;
    (ii) Any information regarding any action prohibited under 
Sec. Sec.  660.112 or 600.725(o), (t) and (u);
    (iii) Any concerns about vessel safety or marine casualty under 46 
CFR 4.05-1(a)(1) through (7);
    (iv) Any observer illness or injury that prevents the observer from 
completing any of his or her duties described in the observer manual; 
and
    (v) Any information, allegations or reports regarding observer 
conflict of interest or breach of the standards of behavior described 
in observer provider policy.
    (xii) Replace lost or damaged gear. An observer provider must 
replace all lost or damaged gear and equipment issued by NMFS to an 
observer under contract to that provider. All replacements must be in 
accordance with requirements and procedures identified in writing by 
the Observer Program Office.
    (xiii) Maintain confidentiality of information. An observer 
provider must ensure that all records on individual observer 
performance received from NMFS under the routine use provision of the 
Privacy Act or as otherwise required by law remain confidential and are 
not further released to anyone outside the employ of the observer 
provider company to whom the observer was contracted except with 
written permission of the observer.
    (xiv) Limitations on conflict of interest. Observer providers must 
meet limitations on conflict of interest. Observer providers:
    (A) Must not have a direct financial interest, other than the 
provision of observer services, in the North Pacific or Pacific Coast 
Groundfish fishery managed under an FMP for the waters off the coasts 
of Alaska, Washington, Oregon, and California, including, but not 
limited to,
    (1) Any ownership, mortgage holder, or other secured interest in a 
vessel, or shoreside processor facility involved in the catching, 
taking, harvesting or processing of fish,
    (2) Any business involved with selling supplies or services to any 
vessel or shoreside processors participating in a fishery managed 
pursuant to an FMP in the waters off the coasts of Alaska, California, 
Oregon, and Washington, or
    (3) Any business involved with purchasing raw or processed products 
from any vessel or shoreside processor participating in a fishery 
managed pursuant to an FMP in the waters off the

[[Page 78417]]

coasts of Alaska, California, Oregon, and Washington.
    (B) Must assign observers without regard to any preference by 
representatives of vessels other than when an observer will be 
deployed.
    (C) Must not solicit or accept, directly or indirectly, any 
gratuity, gift, favor, entertainment, loan, or anything of monetary 
value except for compensation for providing observer services from 
anyone who conducts fishing or fish processing activities that are 
regulated by NMFS, or who has interests that may be substantially 
affected by the performance or nonperformance of the official duties of 
observer providers.
    (xv) Observer conduct and behavior. Observer providers must develop 
and maintain a policy addressing observer conduct and behavior for 
their employees that serve as observers. The policy shall address the 
following behavior and conduct regarding:
    (A) Observer use of alcohol;
    (B) Observer use, possession, or distribution of illegal drugs and;
    (C) Sexual contact with personnel of the vessel or processing 
facility to which the observer is assigned, or with any vessel or 
processing plant personnel who may be substantially affected by the 
performance or non-performance of the observer's official duties.
    (D) An observer provider shall provide a copy of its conduct and 
behavior policy by February 1 of each year, to: Observers, observer 
candidates and; the Observer Program Office.
    (xvi) Refusal to deploy an observer. Observer providers may refuse 
to deploy an observer on a requesting vessel if the observer provider 
has determined that the requesting vessel is inadequate or unsafe 
pursuant to those regulations described at Sec.  600.746 or U.S. Coast 
Guard and other applicable rules, regulations, statutes, or guidelines 
pertaining to safe operation of the vessel.
    (6) Observer certification and responsibilities--(i) Applicability. 
Observer certification authorizes an individual to fulfill duties as 
specified in writing by the NMFS Observer Program Office while under 
the employ of a NMFS-permitted observer provider and according to 
certification endorsements as designated under paragraph (j)(6)(iii) of 
this section.
    (ii) Observer certification official. The Regional Administrator 
will designate a NMFS observer certification official who will make 
decisions for the Observer Program Office on whether to issue or deny 
observer certification.
    (iii) Certification requirements--(A) Initial certification. NMFS 
may certify individuals who, in addition to any other relevant 
considerations:
    (1) Are employed by an observer provider company permitted pursuant 
to Sec.  679.50 at the time of the issuance of the certification;
    (2) Have provided, through their observer provider:
    (i) Information identified by NMFS at Sec.  679.50 regarding an 
observer candidate's health and physical fitness for the job;
    (ii) Meet all observer education and health standards as specified 
in Sec.  679.50 and
    (iii) Have successfully completed NMFS-approved training as 
prescribed by the At-Sea Hake and/or the West Coast Groundfish Observer 
Program. Successful completion of training by an observer applicant 
consists of meeting all attendance and conduct standards issued in 
writing at the start of training; meeting all performance standards 
issued in writing at the start of training for assignments, tests, and 
other evaluation tools; and completing all other training requirements 
established by the Observer Program.
    (iv) Have not been decertified under paragraph (j)(6)(ix) of this 
section, or pursuant to Sec.  679.50.
    (B) [Reserved]
    (iv) Denial of a certification. The NMFS observer certification 
official will issue a written determination denying observer 
certification if the candidate fails to successfully complete training, 
or does not meet the qualifications for certification for any other 
relevant reason.
    (v) Issuance of an observer certification. An observer 
certification will be issued upon determination by the observer 
certification official that the candidate has successfully met all 
requirements for certification as specified at paragraph (j)(6)(iii) of 
this section. The following endorsements must be obtained, in addition 
to observer certification, in order for an observer to deploy.
    (A) Motherships--(1) North Pacific Groundfish Observer Program 
certification training endorsement. A certification training 
endorsement signifies the successful completion of the training course 
required to obtain observer certification. This endorsement expires 
when the observer has not been deployed and performed sampling duties 
as required by the Observer Program Office for a period of time, 
specified by the Observer Program, after his or her most recent 
debriefing. The observer can renew the endorsement by successfully 
completing certification training once more.
    (2) North Pacific Groundfish Observer Program annual general 
endorsements. Each observer must obtain an annual general endorsement 
to their certification prior to his or her first deployment within any 
calendar year subsequent to a year in which a certification training 
endorsement is obtained. To obtain an annual general endorsement, an 
observer must successfully complete the annual briefing, as specified 
by the Observer Program. All briefing attendance, performance, and 
conduct standards required by the Observer Program must be met.
    (3) North Pacific Groundfish Observer Program deployment 
endorsements. Each observer who has completed an initial deployment 
after certification or annual briefing must receive a deployment 
endorsement to their certification prior to any subsequent deployments 
for the remainder of that year. An observer may obtain a deployment 
endorsement by successfully completing all pre-cruise briefing 
requirements. The type of briefing the observer must attend and 
successfully complete will be specified in writing by the Observer 
Program during the observer's most recent debriefing.
    (4) At-Sea Hake Observer Program endorsements. A Pacific hake 
fishery endorsement is required for purposes of performing observer 
duties aboard vessels that process groundfish at sea in the Pacific 
whiting fishery. A Pacific whiting fishery endorsement to an observer's 
certification may be obtained by meeting the following requirements:
    (i) Be a prior NMFS-certified observer in the groundfish fisheries 
off Alaska;
    (ii) Receive an evaluation by NMFS for his or her most recent 
deployment that indicated that the observer's performance met Observer 
Program expectations for that deployment; successfully complete a NMFS-
approved observer training and/or Pacific whiting briefing as 
prescribed by the Observer Program; and comply with all of the other 
requirements of this section.
    (B) Catcher vessels. The following endorsements must be obtained in 
addition to observer certification, in order for an observer to deploy.
    (1) West Coast Groundfish Observer Program training certification 
endorsement. A training certification endorsement signifies the 
successful completion of the training course required to obtain 
observer certification. This endorsement expires when the observer has 
not been deployed and performed sampling duties as required by the 
observer Program office for a

[[Page 78418]]

period of time, specified by the Observer Program, after his or her 
most recent debriefing. The observer can renew the endorsement by 
successfully completing training once more.
    (2) West Coast Groundfish Observer Program annual general 
endorsement. Each observer must obtain an annual general endorsement to 
their certification prior to his or her first deployment within any 
calendar year subsequent to a year in which a training certification 
endorsement is obtained. To obtain an annual general endorsement, an 
observer must successfully complete the annual briefing, as specified 
by the Observer Program. All briefing attendance, performance, and 
conduct standards required by the Observer Program must be met.
    (3) West Coast Groundfish Observer Program deployment endorsement. 
Each observer who has completed an initial deployment after their 
certification or annual briefing must receive a deployment endorsement 
to their certification prior to any subsequent deployments for the 
remainder of that year. An observer may obtain a deployment endorsement 
by successfully completing all briefing requirements, when applicable. 
The type of briefing the observer must attend and successfully complete 
will be specified in writing by the Observer Program during the 
observer's most recent debriefing.
    (vi) Maintaining the validity of an observer certification. After 
initial issuance, an observer must keep their certification valid by 
meeting all of the following requirements specified below:
    (A) Motherships--(1) Successfully perform their assigned duties as 
described in the Observer Manual or other written instructions from the 
Observer Program Office including calling into the NMFS deployment 
hotline upon departing and arriving into port each trip to leave the 
following information: Observer name, phone number, vessel name 
departing on, date and time of departure and date and time of expected 
return.
    (2) Accurately record their sampling data, write complete reports, 
and report accurately any observations of suspected violations of 
regulations relevant to conservation of marine resources or their 
environment.
    (3) Not disclose collected data and observations made on board the 
vessel or in the processing facility to any person except the owner or 
operator of the observed vessel or an authorized officer or NMFS.
    (4) Successfully complete NMFS-approved annual briefings as 
prescribed by the At-Sea Hake Observer Program.
    (5) Successful completion of briefing by an observer applicant 
consists of meeting all attendance and conduct standards issued in 
writing at the start of training; meeting all performance standards 
issued in writing at the start of training for assignments, tests, and 
other evaluation tools; and completing all other briefing requirements 
established by the Observer Program.
    (6) Successfully meet all expectations in all debriefings including 
reporting for assigned debriefings.
    (7) Submit all data and information required by the observer 
program within the program's stated guidelines.
    (B) Catcher vessels. After initial issuance, an observer must keep 
their certification valid by meeting all of the following requirements 
specified below:
    (1) Successfully perform their assigned duties as described in the 
Observer Manual or other written instructions from the Observer Program 
Office including calling into the NMFS deployment hotline upon 
departing and arriving into port each trip to leave the following 
information: Observer name, phone number, vessel name departing on, 
date and time of departure and date and time of expected return.
    (2) Accurately record their sampling data, write complete reports, 
and report accurately any observations of suspected violations of 
regulations relevant to conservation of marine resources or their 
environment.
    (3) Not disclose collected data and observations made on board the 
vessel or in the processing facility to any person except the owner or 
operator of the observed vessel or an authorized officer or NMFS.
    (4) Successfully complete NMFS-approved annual briefings as 
prescribed by the West Coast Groundfish Observer Program.
    (5) Successful completion of briefing by an observer applicant 
consists of meeting all attendance and conduct standards issued in 
writing at the start of training; meeting all performance standards 
issued in writing at the start of training for assignments, tests, and 
other evaluation tools; and completing all other briefing requirements 
established by the Observer Program.
    (6) Hold current basic cardiopulmonary resuscitation/first aid 
certification as per American Red Cross Standards.
    (7) Successfully meet all expectations in all debriefings including 
reporting for assigned debriefings.
    (8) Submit all data and information required by the observer 
program within the program's stated guidelines.
    (9) Meet the minimum annual deployment period of 3 months at least 
once every 12 months.
    (vii) Limitations on conflict of interest. Observers:
    (A) Must not have a direct financial interest, other than the 
provision of observer services, in a fishery managed pursuant to an FMP 
for the waters off the coast of Alaska, or in a Pacific Coast fishery 
managed by either the State or Federal Governments in waters off 
Washington, Oregon, or California, including but not limited to:
    (1) Any ownership, mortgage holder, or other secured interest in a 
vessel, shore-based or floating stationary processor facility involved 
in the catching, taking, harvesting or processing of fish,
    (2) Any business involved with selling supplies or services to any 
vessel, shore-based or floating stationary processing facility; or
    (3) Any business involved with purchasing raw or processed products 
from any vessel, shore-based or floating stationary processing 
facilities.
    (B) Must not solicit or accept, directly or indirectly, any 
gratuity, gift, favor, entertainment, loan, or anything of monetary 
value from anyone who either conducts activities that are regulated by 
NMFS in the Pacific coast or North Pacific regions or has interests 
that may be substantially affected by the performance or nonperformance 
of the observers' official duties.
    (C) May not serve as observers on any vessel or at any shore-based 
owned or operated by a person who employed the observer in the last two 
years.
    (D) May not solicit or accept employment as a crew member or an 
employee of a vessel or shore-based processor while employed by an 
observer provider.
    (E) Provisions for remuneration of observers under this section do 
not constitute a conflict of interest.
    (viii) Standards of behavior. Observers must:
    (A) Perform their assigned duties as described in the Observer 
Manual or other written instructions from the Observer Program Office.
    (B) Immediately report to the observer program office and the NMFS 
OLE any time they refuse to board.
    (C) Accurately record their sampling data, write complete reports, 
and report accurately any observations of suspected violations of 
regulations relevant to conservation of marine resources or their 
environment.

[[Page 78419]]

    (D) Not disclose collected data and observations made on board the 
vessel to any person except the owner or operator of the observed 
vessel, an authorized officer, or NMFS.
    (ix) Suspension and decertification--(A) Suspension and 
decertification review official. The Regional Administrator (or a 
designee) will designate an observer suspension and decertification 
review official(s), who will have the authority to review observer 
certifications and issue initial administrative determinations of 
observer certification suspension and/or decertification.
    (B) Causes for suspension or decertification. The suspension/
decertification official may initiate suspension or decertification 
proceedings against an observer:
    (1) When it is alleged that the observer has not met applicable 
standards, including any of the following:
    (i) Failed to satisfactorily perform duties of observers as 
specified in writing by the NMFS Observer Program; or
    (ii) Failed to abide by the standards of conduct for observers, 
including conflicts of interest;
    (2) Upon conviction of a crime or upon entry of a civil judgment 
for:
    (i) Commission of fraud or other violation in connection with 
obtaining or attempting to obtain certification, or in performing the 
duties as specified in writing by the NMFS Observer Program;
    (ii) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, or 
receiving stolen property;
    (iii) Commission of any other offense indicating a lack of 
integrity or honesty that seriously and directly affects the fitness of 
observers.
    (C) Issuance of initial administrative determination. Upon 
determination that suspension or decertification is warranted, the 
suspension/decertification official will issue a written IAD to the 
observer via certified mail at the observer's most current address 
provided to NMFS. The IAD will identify whether a certification is 
suspended or revoked and will identify the specific reasons for the 
action taken. Decertification is effective 30 calendar days after the 
date on the IAD, unless there is an appeal.
    (D) Appeals. A certified observer who receives an IAD that suspends 
or revokes his or her observer certification may appeal the 
determination within 30 calendar days after the date on the IAD to the 
Office of Administrative Appeals pursuant to Sec.  679.43.
    (k) MS coop failure--(1) The Regional Administrator will determine 
that a permitted MS coop is considered to have failed if:
    (i) The coop members dissolve the coop, or
    (ii) The coop membership falls below 20 percent of the MS/CV-
endorsed limited entry permits, or
    (iii) The coop agreement is no longer valid.
    (2) If a permitted MS coop dissolves, the designated coop manager 
must notify NMFS SFD in writing of the dissolution of the coop.
    (3) In the event of a NMFS determined coop failure, or reported 
failure, the designated coop manager will be notified in writing about 
NMFS' determination. Upon notification of a coop failure, fishing under 
the MS coop permit will no longer be allowed. Should a coop failure 
determination be made during the Pacific whiting primary season for the 
mothership sector, unused allocation associated with the catch history 
will not be available for harvest by the coop that failed, by any 
former members of the coop that failed, or any other MS coop for the 
remainder of that calendar year.]

0
26. In Sec.  660.160:
0
a. Paragraphs (a)(3) and (a)(4) are revised;
0
b. Paragraphs (g) and (h) are removed;
0
c. Paragraphs (b) through (f) are redesignated as paragraphs (c) 
through (g);
0
d. A new paragraph (b) is added;
0
e. Text is added to the newly designated paragraph (c)(2) and (d);
0
f. The headings of newly designated paragraphs (e)(2) through (e)(4) 
are revised;
0
g. New paragraphs (c)(3) through (c)(7) are added, and text is added to 
newly designated paragraphs (e)(2) through (e)(4);
0
h. The newly designated paragraph (e)(1) introductory text is revised, 
and newly designated paragraph (e)(5) is removed and reserved;
0
i. The newly designated paragraph (e)(7) is redesignated as paragraph 
(e)(6) and newly designated paragraph (e)(6)(vii) is revised;
0
j. Text is added to the newly designated paragraph (g); and
0
k. A new paragraph (h) is added to read as follows:


Sec.  660.160  Catcher/processor (C/P) Coop Program.

* * * * *
    (a) * * *
    (3) Regulations set out in the following sections of subpart C: 
Sec.  660.11 Definitions, Sec.  660.12 Prohibitions, Sec.  660.13 
Recordkeeping and reporting, Sec.  660.14 VMS requirements, Sec.  
660.15 Equipment requirements, Sec.  660.16 Groundfish Observer 
Program, Sec.  660.20 Vessel and gear identification, Sec.  660.25 
Permits, Sec.  660.55 Allocations, Sec.  660.60 Specifications and 
management measures, Sec.  660.65 Groundfish harvest specifications, 
and Sec. Sec.  660.70 through 660.79 Closed areas.
    (4) Regulations set out in the following sections of subpart D: 
Sec.  660.111 Trawl fishery definitions, Sec.  660.112 Trawl fishery 
prohibitions, Sec.  660.113 Trawl fishery recordkeeping and reporting, 
Sec.  660.120 Trawl fishery crossover provisions, Sec.  660.130 Trawl 
fishery management measures, and Sec.  660.131 Pacific whiting fishery 
management measures.
* * * * *
    (b) Participation requirements and responsibilities--(1) C/P 
vessels--(i) C/P vessel participation requirements. A vessel is 
eligible to fish as a catcher/processor in the C/P Coop Program if:
    (A) The vessel is registered to a C/P-endorsed limited entry trawl 
permit.
    (B) The vessel is not used to harvest fish as a catcher vessel in 
the mothership coop program in the same calendar year.
    (C) The vessel is not used to fish as a mothership in the MS Coop 
Program in the same calendar year.
    (ii) C/P vessel responsibilities. The owner and operator of a 
catcher/processor vessel must:
    (A) Recordkeeping and reporting. Maintain a valid declaration as 
specified at Sec.  660.13(d), subpart C; and maintain and submit all 
records and reports specified at Sec.  660.113(d) including, economic 
data, scale tests records, and cease fishing reports.
    (B) Observers. As specified at paragraph (g) of this section, 
procure observer services, maintain the appropriate level of coverage, 
and meet the vessel responsibilities.
    (C) Catch weighing requirements. The owner and operator of a C/P 
vessel must:
    (1) Ensure that all catch is weighed in its round form on a NMFS-
approved scale that meets the requirements described in Sec.  
660.15(b), subpart C;
    (2) Provide a NMFS-approved platform scale, belt scale, and test 
weights that meet the requirements described in Sec.  660.15(b), 
subpart C.
    (2) C/P coops--(i) C/P coop participation requirements. For a C/P 
coop to participate in the catcher/processor sector of the Pacific 
whiting fishery, the C/P coop must:
    (A) Be issued a C/P coop permit;
    (B) Be composed of all C/P-endorsed limited entry permits and their 
owners;

[[Page 78420]]

    (C) Be formed voluntarily;
    (D) Be a legally recognized entity that represents its members; and
    (E) Designate an individual as a coop manager.
    (ii) C/P coop responsibilities. A C/P coop is responsible for:
    (A) Applying for and being registered to a C/P coop permit;
    (B) Organizing and coordinating harvest activities of vessels that 
fish for the coop;
    (C) Allocating catch for use by specific coop members;
    (D) Monitoring harvest activities and enforcing the catch limits of 
coop members;
    (E) Submitting an annual report.
    (F) Having a designated coop manager. The designated coop manager 
must:
    (1) Serve as the contact person with NMFS and the Council;
    (2) Be responsible for the annual distribution of catch and bycatch 
allocations among coop members;
    (3) Prepare and submit an annual report on behalf of the coop; and
    (4) Be authorized to receive or respond to any legal process in 
which the coop is involved; and
    (5) Notify NMFS if the coop dissolves.
    (iii) C/P coop compliance and joint/several liability. A C/P coop 
must comply with the provisions of this section. The C/P coop, member 
limited entry permit owners, and owners and operators of vessels 
registered to member limited entry permits, are jointly and severally 
responsible for compliance with the provisions of this section. 
Pursuant to 15 CFR part 904, each C/P coop, member permit owner, and 
owner and operator of a vessel registered to a coop member permit may 
be charged jointly and severally for violations of the provisions of 
this section. For purposes of enforcement, a C/P coop is a legal entity 
that can be subject to NOAA enforcement action for violations of the 
provisions of this section.
* * * * *
    (c) * * *
    (2) C/P Coop Program annual allocations. The C/P Coop Program 
allocation of Pacific whiting is equal to the catcher/processor sector 
allocation. Only a single coop may be formed in the catcher/processor 
sector with the one permitted coop receiving the catcher/processor 
sector allocation.
    (3) Non-whiting groundfish species--(i) Non-whiting groundfish 
species with a catcher/processor sector allocation are established in 
accordance with regulation at Sec.  660.55(i). The pounds associated 
with each species will be provided when the coop permit is issued.
    (ii) Groundfish species with at-sea sector set-asides will be 
managed on an annual basis unless there is a risk of a harvest 
specification being exceeded, unforeseen impact on another fisheries, 
or conservation concerns in which case inseason action may be taken. 
Set asides may be adjusted through the biennial specifications and 
management measures process as necessary.
    (iii) Groundfish species not addressed under paragraph (i) or (ii) 
above, will be managed on an annual basis unless there is a risk of a 
harvest specification being exceeded, unforeseen impact on another 
fisheries, or conservation concerns in which case inseason action may 
be taken.
    (4) Halibut set-asides. Annually a specified amount of the Pacific 
halibut will be held in reserve as a shared set-aside for bycatch in 
the at-sea Pacific whiting fisheries and the shorebased trawl sector 
south of 40[deg]10' N lat.
    (5) Non-whiting groundfish species reapportionment. The Regional 
Administrator may make available for harvest to the mothership sector 
of the Pacific whiting fishery, the amounts of the catcher/processor 
sector's non-whiting catch allocation remaining when the catcher/
processor sector reaches its Pacific whiting allocation or participants 
in the catcher/processor sector do not intend to harvest the remaining 
sector allocation. The designated coop manager must submit a cease 
fishing report to NMFS indicating that harvesting has concluded for the 
year. At any time after greater than 80 percent of the catcher/
processor sector Pacific whiting allocation has been harvested, the 
Regional Administrator may contact the designated coop manager to 
determine whether they intend to continue fishing. When considering 
redistribution of non-whiting catch allocation, the Regional 
Administrator will take into consideration the best available data on 
total projected fishing impacts.
    (6) Reaching the catcher/processor sector allocation. When the 
catcher/processor sector allocation of Pacific whiting or non-whiting 
groundfish catch allocation is reached or is projected to be reached, 
further taking and retaining, receiving, or at-sea processing by a 
catcher/processor is prohibited. No additional unprocessed groundfish 
may be brought on board after at-sea processing is prohibited, but a 
catcher/processor may continue to process catch that was on board 
before at-sea processing was prohibited. The catcher/processor sector 
will close when the allocation of any one species is reached or 
projected to be reached.
    (7) Announcements. The Regional Administrator will announce in the 
Federal Register when the catcher/processor sector allocation of 
Pacific whiting or non-whiting groundfish with an allocation is 
reached, or is projected to be reached, and specify the appropriate 
action. In order to prevent exceeding an allocation and to avoid 
underutilizing the resource, prohibitions against further taking and 
retaining, receiving, or at-sea processing of Pacific whiting, or 
reapportionment of non-whiting groundfish with allocations may be made 
effective immediately by actual notice to fishers and processors, by e-
mail, Internet (http://www.nwr.noaa.gov/Groundfish-Halibut/Groundfish-Fishery-Management/Whiting-Management/index.cfm), phone, fax, letter, 
press release, and/or USCG Notice to Mariners (monitor channel 16 VHF), 
followed by publication in the Federal Register, in which instance 
public comment will be sought for a reasonable period of time 
thereafter.
    (d) C/P coop permit and agreement--(1) Eligibility and 
registration--(i) Eligibility. To be an eligible coop entity a group of 
C/P-endorsed permit owners (coop members) must be a recognized entity 
under the laws of the United States or the laws of a State and that 
represents all of the coop members.
    (ii) Annual registration and deadline. Each year, the coop entity 
must submit a complete application to NMFS for a C/P coop permit. The 
application must be submitted to NMFS by between February 1 and March 
31 of the year in which it intends to participate. NMFS will not 
consider any applications received after March 31. A C/P coop permit 
expires on December 31 of the year in which it was issued.
    (iii) Application for a C/P coop permit. The designated coop 
manager, on behalf of the coop entity, must submit a complete 
application form and include each of the items listed in paragraph 
(d)(1)(iii)(A) of this section. Only complete applications will be 
considered for issuance of a C/P coop permit. An application will not 
be considered complete if any required application fees and annual coop 
reports have not been received by NMFS. NMFS may request additional 
supplemental documentation as necessary to make a determination of 
whether to approve or disapprove the application. Application forms and 
instruction are available on the NMFS NWR Web site (http://www.nwr.noaa.gov) or by request from NMFS. The designated coop manager

[[Page 78421]]

must sign the application acknowledging the responsibilities of a 
designated coop manager defined in paragraph (b)(2) of this section.
    (A) Coop agreement. Signed copies of the coop agreement must be 
submitted to NMFS before the coop is authorized to engage in fishing 
activities. A coop agreement must include all of the information listed 
in this paragraph to be considered a complete coop agreement. NMFS will 
only review complete coop agreements. A coop agreement will not be 
accepted unless it includes all of the required information; the 
descriptive items listed in this paragraph appear to meet the stated 
purpose; and information submitted is correct and accurate.
    (1) Coop agreement contents. The coop agreement must be signed by 
the coop members (C/P-endorsed permit owners) and include the following 
information:
    (i) A list of all vessels registered to C/P-endorsed permits that 
the member permit owners intend to use for fishing under the C/P coop 
permit.
    (ii) All C/P-endorsed limited entry member permits identified by 
permit number.
    (iii) A description of the coop's plan to adequately monitor and 
account for the catch of Pacific whiting and non-whiting groundfish 
allocations, and to monitor and account for the catch of prohibited 
species.
    (iv) A clause stating that if a permit is transferred during the 
effective period of the co-op agreement, any new owners of that member 
permit would be coop members and are required to comply with membership 
restrictions in the coop agreement.
    (v) A description of the coop's enforcement and penalty provisions 
adequate to maintain catch of Pacific whiting and non-whiting 
groundfish within the allocations.
    (vi) A description of measures to reduce catch of overfished 
species.
    (vii) A clause describing how the annual report will be produced to 
document the coop's catch, bycatch data, and any other significant 
activities undertaken by the coop during the year, and the submission 
deadlines for that report.
    (viii) Identification of the designated coop manager.
    (2) [Reserved]
    (B) Acceptance of a coop agreement--(1) If NMFS does not accept the 
coop agreement, the coop permit application will be returned to the 
applicant with a letter stating the reasons the coop agreement was not 
accepted by NMFS.
    (2) Coop agreements that are not accepted may be resubmitted for 
review by sufficiently addressing the deficiencies identified in the 
NMFS letter and resubmitting the entire coop permit application by the 
date specified in the NMFS letter.
    (3) An accepted coop agreement that was submitted with the C/P coop 
permit application and for which a C/P coop permit was issued will 
remain in place through the end of the calendar year. The designated 
coop manager must resubmit a complete coop agreement to NMFS consistent 
with the coop agreement contents described in this paragraph if there 
is a material change to the coop agreement.
    (4) Within 7 calendar days following a material change, the 
designated coop manager must notify NMFS of the material change. Within 
30 calendar days, the designated coop manger must submit to NMFS the 
revised coop agreement with a letter that describes such changes. NMFS 
will review the material changes and provide a letter to the coop 
manager that either accepts the changes as given or does not accept the 
revised coop agreement with a letter stating the reasons that it was 
not accepted by NMFS. The coop may resubmit the coop agreement with 
further revisions to the material changes responding to NMFS concerns.
    (iv) Effective date of C/P coop permit. A C/P coop permit will be 
effective on the date approved by NMFS and will allow fishing from the 
start of the C/P sector primary whiting season until the end of the 
calendar year or until one or more of the following events occur, 
whichever comes first:
    (A) NMFS closes the C/P sector fishing season for the year or the 
designated coop manager notifies NMFS that the coop has completed 
fishing for the calendar year,
    (B) The C/P coop has reached its Pacific whiting allocation,
    (C) A material change to the coop agreement has occurred and the 
designated coop manager failed to notify NMFS within 7 calendar days of 
the material change and submit to NMFS the revised coop agreement with 
a letter that describes such changes within 30 calendar days, or
    (D) NMFS has determined that a coop failure occurred.
    (2) Initial administrative determination. For all complete 
applications, NMFS will issue an IAD that either approves or 
disapproves the application. If approved, the IAD will include a C/P 
coop permit. If disapproved, the IAD will provide the reasons for this 
determination.
    (3) Appeals. An appeal to a C/P coop permit action follows the same 
process as the general permit appeals process defined at Sec.  
660.25(g), subpart C.
    (4) Fees. The Regional Administrator is authorized to charge fees 
for administrative costs associated with the issuance of a C/P coop 
permit consistent with the provisions given at Sec.  660.25(f), subpart 
C.
    (5) Cost recovery. [Reserved]
    (e) C/P-endorsed permit--(1) General. Any vessel participating in 
the C/P sector of the non-tribal primary Pacific whiting fishery during 
the season described at Sec.  660.131(b) of this subpart must be 
registered to a valid limited entry permit with a C/P endorsement. A C/
P-endorsed permit is a limited entry permit and is subject to the 
limited entry permit provisions given at Sec.  660.25(b), subpart C.
* * * * *
    (2) Renewal, change in permit ownership, vessel registration, or 
combination.
    (i) Renewal. A C/P-endorsed permit must be renewed annually 
consistent with the limited entry permit regulations given at Sec.  
660.25(b)(4), subpart C. If a vessel registered to the C/P-endorsed 
permit will operate as a mothership in the year for which the permit is 
renewed, the permit owner must make a declaration as part of the permit 
renewal that while participating in the whiting fishery they will 
operate solely as a mothership during the calendar year to which its 
limited entry permit applies. Any such declaration is binding on the 
vessel for the calendar year, even if the permit is transferred during 
the year, unless it is rescinded in response to a written request from 
the permit owner. Any request to rescind a declaration must be made by 
the permit holder and granted in writing by the Regional Administrator 
before any unprocessed whiting has been taken on board the vessel that 
calendar year.
    (ii) Change of permit ownership. A C/P-endorsed permit is subject 
to the limited entry permit change in permit ownership regulations 
given at Sec.  660.25(b)(4), subpart C.
    (iii) Change of vessel registration. A C/P-endorsed permit is 
subject to the limited entry permit change of vessel registration 
regulations given at Sec.  660.25(b)(4), subpart C.
    (iv) Combination. If two or more permits are combined, the 
resulting permit is one permit with an increased size endorsement. A C/
P-endorsed permit that is combined with another limited entry trawl-
endorsed permit that does not have a C/P endorsement will result in a 
single trawl limited entry permit with a C/P endorsement with a larger 
size endorsement. Any request to

[[Page 78422]]

combine permits is subject to the provisions provided at Sec.  
660.25(b), including the combination formula for resulting size 
endorsements.
    (3) Appeals. An appeal to a C/P-endorsed permit action follows the 
same process as the general permit appeals process defined at Sec.  
660.25(g), subpart C.
    (4) Fees. The Regional Administrator is authorized to charge fees 
for the administrative costs associated with review and issuance of a 
C/P endorsement consistent with the provisions at Sec.  660.25(f), 
subpart C.
    (5) [Reserved]
* * * * *
    (6) * * *
    (vii) Initial Administrative Determination (IAD). NMFS will issue 
an IAD for all complete, certified applications received by the 
application deadline date. If NMFS approves an application, the 
applicant will receive a C/P endorsement on a limited entry trawl 
permit. If NMFS disapproves an application, the IAD will provide the 
reasons. If the applicant does not appeal the IAD within 60 calendar 
days of the date on the IAD, the IAD becomes the final decision of the 
Regional Administrator acting on behalf of the Secretary of Commerce.
* * * * *
    (g) Observer requirements--(1) Observer coverage requirements--(i) 
Coverage. Any vessel registered to a C/P-endorsed limited entry trawl 
permit that is 125 ft (38.1 m) LOA or longer must carry two NMFS-
certified observers, and any vessel registered to a C/P-endorsed 
limited entry trawl permit that is shorter than 125 ft (38.1 m) LOA 
must carry one NMFS-certified observer, each day that the vessel is 
used to take, retain, receive, land, process, or transport groundfish.
    (ii) Observer workload. The time required for the observer to 
complete sampling duties must not exceed 12 consecutive hours in each 
24-hour period.
    (iii) Refusal to board. Any boarding refusal on the part of the 
observer or vessel must be reported to the observer program and NOAA 
OLE by the observer provider. The observer must be available for an 
interview with the observer program or NOAA OLE if necessary.
    (2) Vessel responsibilities. An operator and/or crew of a vessel 
required to carry an observer must provide:
    (i) Accommodations and food. Provide accommodations and food that 
are equivalent to those provided for officers, engineers, foremen, 
deck-bosses or other management level personnel of the vessel.
    (ii) Safe conditions--(A) Maintain safe conditions on the vessel 
for the protection of observers including adherence to all U.S. Coast 
Guard and other applicable rules, regulations, or statutes pertaining 
to safe operation of the vessel, including but not limited to, rules of 
the road, vessel stability, emergency drills, emergency equipment, 
vessel maintenance, vessel general condition, and port bar crossings. 
An observer may refuse boarding or reboarding a vessel and may request 
a vessel to return to port if operated in an unsafe manner or if unsafe 
conditions are identified.
    (B) Have on board a valid Commercial Fishing Vessel Safety Decal 
that certifies compliance with regulations found in 33 CFR chapter I 
and 46 CFR chapter I, a certificate of compliance issued pursuant to 46 
CFR 28.710 or a valid certificate of inspection pursuant to 46 U.S.C. 
3311.
    (iii) Computer hardware and software. Catcher/processor vessels 
must:
    (A) Provide hardware and software pursuant to regulations at 
Sec. Sec.  679.50(g)(1)(iii)(B)(1) through 679.50(g)(1)(iii)(B)(3).
    (B) Provide the observer(s) access to a computer required under 
paragraph (g)(2)(iii) of this section that is connected to a 
communication device that provides a point-to-point connection to the 
NMFS host computer.
    (C) Ensure that the catcher/processor has installed the most recent 
release of NMFS data entry software provided by the Regional 
Administrator, or other approved software prior to the vessel 
receiving, catching or processing IFQ species.
    (D) Ensure that the communication equipment required in paragraph 
(g)(2)(iii) of this section and used by observers to enter and transmit 
data, is fully functional and operational. ``Functional'' means that 
all the tasks and components of the NMFS supplied, or other approved, 
software described at paragraph (g)(2)(iii) of this section and the 
data transmissions to NMFS can be executed effectively aboard the 
vessel by the communications equipment.
    (iv) Vessel position. Allow observer(s) access to, the vessel's 
navigation equipment and personnel, on request, to determine the 
vessel's position.
    (v) Access. Allow observer(s) free and unobstructed access to the 
vessel's bridge, trawl or working decks, holding bins, processing 
areas, freezer spaces, weight scales, cargo holds, and any other space 
that may be used to hold, process, weigh, or store fish or fish 
products at any time.
    (vi) Prior notification. Notify observer(s) at least 15 minutes 
before fish are brought on board, or fish and fish products are 
transferred from the vessel, to allow sampling the catch or observing 
the transfer.
    (vii) Records. Allow observer(s) to inspect and copy any State or 
Federal logbook maintained voluntarily or as required by regulation.
    (viii) Assistance. Provide all other reasonable assistance to 
enable observer(s) to carry out their duties, including, but not 
limited to:
    (A) Measuring decks, codends, and holding bins.
    (B) Providing the observer(s) with a safe work area.
    (C) Collecting samples of catch.
    (D) Collecting and carrying baskets of fish.
    (E) Allowing the observer(s) to collect biological data and 
samples.
    (F) Providing adequate space for storage of biological samples.
    (ix) Sampling station and operational requirements for catcher/
processor vessels. This paragraph contains the requirements for 
observer sampling stations. To allow the observer to carry out the 
required duties, the vessel owner must provide an observer sampling 
station that meets the following requirements:
    (A) Accessibility. The observer sampling station must be available 
to the observer at all times.
    (B) Location. The observer sampling station must be located within 
4 m of the location from which the observer samples unsorted catch.
    (C) Access. Unobstructed passage must be provided between the 
observer sampling station and the location where the observer collects 
sample catch.
    (D) Minimum work space. The observer must have a working area of at 
least 4.5 square meters, including the observer's sampling table, for 
sampling and storage of fish to be sampled. The observer must be able 
to stand upright and have a work area at least 0.9 m deep in the area 
in front of the table and scale.
    (E) Table. The observer sampling station must include a table at 
least 0.6 m deep, 1.2 m wide and 0.9 m high and no more than 1.1 m 
high. The entire surface area of the table must be available for use by 
the observer. Any area for the observer sampling scale is in addition 
to the minimum space requirements for the table. The observer's 
sampling table must be secured to the floor or wall.
    (F) Diverter board. The conveyor belt conveying unsorted catch must 
have a removable board (``diverter board'') to allow all fish to be 
diverted from the

[[Page 78423]]

belt directly into the observer's sampling baskets. The diverter board 
must be located downstream of the scale used to weigh total catch. At 
least 1 m of accessible belt space, located downstream of the scale 
used to weight total catch, must be available for the observer's use 
when sampling.
    (G) Other requirements. The sampling station must be in a well-
drained area that includes floor grating (or other material that 
prevents slipping), lighting adequate for day or night sampling, and a 
hose that supplies fresh or sea water to the observer.
    (H) Observer sampling scale. The observer sample station must 
include a NMFS-approved platform scale (pursuant to requirements at 
Sec.  679.28(d)(5)) with a capacity of at least 50 kg located within 1 
m of the observer's sampling table. The scale must be mounted so that 
the weighing surface is no more than 0.7 m above the floor.
    (x) Transfer at sea. Observers may be transferred at-sea between 
catcher-processors, between catcher-processors and motherships, or 
between a catcher-processor and a catcher vessel. Transfers at-sea 
between catcher vessels is prohibited. For transfers, both vessels 
must:
    (A) Ensure that transfers of observers at sea via small boat under 
its own power are carried out during daylight hours, under safe 
conditions, and with the agreement of observers involved.
    (B) Notify observers at least 3 hours before observers are 
transferred, such that the observers can finish any sampling work, 
collect personal belongings, equipment, and scientific samples.
    (C) Provide a safe pilot ladder and conduct the transfer to ensure 
the safety of observers during transfers.
    (D) Provide an experienced crew member to assist observers in the 
small boat in which any transfer is made.
    (3) Procurement of observer services--(i) Owners of vessels 
required to carry observers under paragraph (g)(1) of this section must 
arrange for observer services from a permitted observer provider, 
except that:
    (A) Vessels are required to procure observer services directly from 
NMFS when NMFS has determined and given notification that the vessel 
must carry NMFS staff or an individual authorized by NMFS in lieu of an 
observer provided by a permitted observer provider.
    (B) Vessels are required to procure observer services directly from 
NMFS and a permitted observer provider when NMFS has determined and 
given notification that the vessel must carry NMFS staff and/or 
individuals authorized by NMFS, in addition to an observer provided by 
a permitted observer provider.
    (ii) [Reserved]
    (4) Application to become an observer provider. Any observer 
provider holding a valid permit issued by the North Pacific Groundfish 
Observer Program in 2010 can supply observer services and will be 
issued a West Coast Groundfish Observer Program permit.
    (5) Observer provider responsibilities--(i) Provide qualified 
candidates to serve as observers. Observer providers must provide 
qualified candidates to serve as observers. To be qualified, a 
candidate must have:
    (A) A Bachelor's degree or higher from an accredited college or 
university with a major in one of the natural sciences;
    (B) Successfully completed a minimum of 30 semester hours or 
equivalent in applicable biological sciences with extensive use of 
dichotomous keys in at least one course;
    (C) Successfully completed at least one undergraduate course each 
in math and statistics with a minimum of 5 semester hours total for 
both; and
    (D) Computer skills that enable the candidate to work competently 
with standard database software and computer hardware.
    (ii) Hiring an observer candidate--(A) The observer provider must 
provide the candidate a copy of NMFS-provided pamphlets, information 
and other literature describing observer duties (i.e. The At-Sea Hake 
Observer Program's Observer Manual) prior to hiring an observer 
candidate. Observer job information is available from the Observer 
Program Office's Web site at www.nwfsc.noaa.gov/research/divisions/fram/observer/atseahake.cfm.
    (B) Observer contracts. The observer provider must have a written 
contract or a written contract addendum that is signed by the observer 
and observer provider prior to the observer's deployment with the 
following clauses:
    (1) That all the observer's in-season messages and catch reports 
required to be sent while deployed are delivered to the Observer 
Program Office as specified by written Observer Program instructions;
    (2) That the observer inform the observer provider prior to the 
time of embarkation if he or she is experiencing any new mental illness 
or physical ailments or injury since submission of the physician's 
statement as required as a qualified observer candidate that would 
prevent him or her from performing their assigned duties.
    (iii) Ensure that observers complete duties in a timely manner. An 
observer provider must ensure that observers employed by that observer 
provider do the following in a complete and timely manner:
    (A) Submit to NMFS all data, logbooks and reports as required by 
the Observer Manual;
    (B) Report for his or her scheduled debriefing and complete all 
debriefing responsibilities;
    (C) Return all sampling and safety gear to the Observer Program 
Office;
    (D) Submit all biological samples from the observer's deployment by 
the completion of the electronic vessel and/or processor survey(s); and
    (E) Immediately report to the Observer Program Office and the NOAA 
OLE any refusal to board an assigned vessel.
    (iv) Observers provided to vessel. Observers provided to catcher 
processors:
    (A) Must have a valid North Pacific groundfish observer 
certification endorsements and an At-Sea Hake Observer Program 
certification;
    (B) Must not have informed the provider prior to the time of 
embarkation that he or she is experiencing a mental illness or a 
physical ailment or injury developed since submission of the 
physician's statement that would prevent him or her from performing his 
or her assigned duties; and
    (C) Must have successfully completed all NMFS required training and 
briefing before deployment.
    (v) Respond to industry requests for observers. An observer 
provider must provide an observer for deployment as requested pursuant 
to the contractual relationship with the vessel to fulfill vessel 
requirements for observer coverage specified under paragraph (g)(1) of 
this section. An alternate observer must be supplied in each case where 
injury or illness prevents the observer from performing his or her 
duties or where the observer resigns prior to completion of his or her 
duties. If the observer provider is unable to respond to an industry 
request for observer coverage from a vessel for whom the provider is in 
a contractual relationship due to lack of available observers by the 
estimated embarking time of the vessel, the provider must report it to 
the observer program at least 4 hours prior to the vessel's estimated 
embarking time.
    (vi) Provide observer salaries and benefits. An observer provider 
must provide to its observer employees salaries and any other benefits 
and personnel services in accordance with the terms of each observer's 
contract.

[[Page 78424]]

    (vii) Provide observer deployment logistics. An observer provider 
must provide to each of its observers under contract:
    (A) All necessary transportation, including arrangements and 
logistics, of observers to the initial location of deployment, to all 
subsequent vessel assignments during that deployment, and to the 
debriefing location when a deployment ends for any reason; and
    (B) Lodging, per diem, and any other services necessary to 
observers assigned to fishing vessels.
    (1) An observer under contract may be housed on a vessel to which 
he or she is assigned:
    (i) Prior to their vessel's initial departure from port;
    (ii) For a period not to exceed 24 hours following the completion 
of an offload when the observer has duties and is scheduled to 
disembark; or
    (iii) For a period not to exceed twenty-four hours following the 
vessel's arrival in port when the observer is scheduled to disembark.
    (2) [Reserved]
    (C) During all periods an observer is housed on a vessel, the 
observer provider must ensure that the vessel operator or at least one 
crew member is aboard.
    (D) An observer under contract who is between vessel assignments 
must be provided with shoreside accommodations in accordance with the 
contract between the observer and the observer provider. If the 
provider is providing accommodations, it must be at a licensed hotel, 
motel, bed and breakfast, or other shoreside accommodations for the 
duration of each period between vessel or shoreside assignments. Such 
accommodations must include an assigned bed for each observer and no 
other person may be assigned that bed for the duration of that 
observer's stay. Additionally, no more than four beds may be in any 
room housing observers at accommodations meeting the requirements of 
this section.
    (viii) Observer deployment limitations. An observer provider must 
not exceed observer deployment limitations specified in this paragraph 
unless alternative arrangements are approved by the Observer Program 
Office. An observer provider must not:
    (A) Deploy an observer on the same vessel for more than 90 days in 
a 12-month period;
    (B) Deploy an observer for more than 90 days in a single 
deployment;
    (C) Include more than four vessel assignments in a single 
deployment, or
    (D) Disembark an observer from a vessel before that observer has 
completed his or her sampling or data transmission duties.
    (ix) Verify vessel's safety decal. An observer provider must verify 
that a vessel has a valid USCG safety decal as required under paragraph 
(g)(2)(ii)(B) of this section before an observer may get underway 
aboard the vessel. One of the following acceptable means of 
verification must be used to verify the decal validity:
    (A) The observer provider or employee of the observer provider, 
including the observer, visually inspects the decal aboard the vessel 
and confirms that the decal is valid according to the decal date of 
issuance; or
    (B) The observer provider receives a hard copy of the USCG 
documentation of the decal issuance from the vessel owner or operator.
    (x) Maintain communications with observers. An observer provider 
must have an employee responsible for observer activities on call 24 
hours a day to handle emergencies involving observers or problems 
concerning observer logistics, whenever observers are at sea, in 
transit, or in port awaiting vessel reassignment.
    (xi) Maintain communications with the Observer Program Office. An 
observer provider must provide all of the following information by 
electronic transmission (e-mail), fax, or other method specified by 
NMFS.
    (A) Observer training and briefing. Observer training and briefing 
registration materials must be submitted to the Observer Program Office 
at least 5 business days prior to the beginning of a scheduled observer 
at-sea hake training or briefing session. Registration materials 
consist of the following: The date of requested training or briefing 
with a list of observers including each observer's full name (i.e., 
first, middle and last names).
    (B) Projected observer assignments. Prior to the observer's 
completion of the training or briefing session, the observer provider 
must submit to the Observer Program Office a statement of projected 
observer assignments that include the observer's name; vessel, gear 
type, and vessel/processor code; port of embarkation; and area of 
fishing.
    (C) Observer debriefing registration. The observer provider must 
contact the At-Sea Hake Observer Program within 5 business days after 
the completion of an observer's deployment to schedule a date, time and 
location for debriefing. Observer debriefing registration information 
must be provided at the time of debriefing scheduling and must include 
the observer's name, cruise number, vessel name(s) and code(s), and 
requested debriefing date.
    (D) Observer provider contracts. If requested, observer providers 
must submit to the Observer Program Office a completed and unaltered 
copy of each type of signed and valid contract (including all 
attachments, appendices, addendums, and exhibits incorporated into the 
contract) between the observer provider and those entities requiring 
observer services under paragraph (g)(1) of this section. Observer 
providers must also submit to the Observer Program Office upon request, 
a completed and unaltered copy of the current or most recent signed and 
valid contract (including all attachments, appendices, addendums, and 
exhibits incorporated into the contract and any agreements or policies 
with regard to observer compensation or salary levels) between the 
observer provider and the particular entity identified by the Observer 
Program or with specific observers. The copies must be submitted to the 
Observer Program Office via fax or mail within 5 business days of the 
request. Signed and valid contracts include the contracts an observer 
provider has with:
    (1) Vessels required to have observer coverage as specified at 
paragraph (g)(1) of this section; and
    (2) Observers.
    (E) Change in observer provider management and contact information. 
Observer providers must submit notification of any other change to 
provider contact information, including but not limited to, changes in 
contact name, phone number, e-mail address, and address.
    (F) Other reports. Reports of the following must be submitted in 
writing to the At-Sea Hake Observer Program Office by the observer 
provider via fax or e-mail address designated by the Observer Program 
Office within 24 hours after the observer provider becomes aware of the 
information:
    (1) Any information regarding possible observer harassment;
    (2) Any information regarding any action prohibited under 
Sec. Sec.  660.112 or 600.725(o), (t) and (u);
    (3) Any concerns about vessel safety or marine casualty under 46 
CFR 4.05-1(a)(1) through (7);
    (4) Any observer illness or injury that prevents the observer from 
completing any of his or her duties described in the observer manual; 
and
    (5) Any information, allegations or reports regarding observer 
conflict of interest or breach of the standards of behavior described 
in observer provider policy.
    (xii) Replace lost or damaged gear. An observer provider must 
replace all lost or damaged gear and equipment issued by NMFS to an 
observer under contract

[[Page 78425]]

to that provider. All replacements must be in accordance with 
requirements and procedures identified in writing by the Observer 
Program Office.
    (xiii) Maintain confidentiality of information. An observer 
provider must ensure that all records on individual observer 
performance received from NMFS under the routine use provision of the 
Privacy Act or other applicable law remain confidential and are not 
further released to anyone outside the employ of the observer provider 
company to whom the observer was contracted except with written 
permission of the observer.
    (xiv) Limitations on conflict of interest. An observer provider 
must meet limitations on conflict of interest. Observer providers:
    (A) Must not have a direct financial interest, other than the 
provision of observer services, in a fishery managed under an FMP for 
the waters off the coasts of Alaska, Washington, Oregon, and 
California, including, but not limited to:
    (1) Any ownership, mortgage holder, or other secured interest in a 
vessel or shoreside processor facility involved in the catching, 
taking, harvesting or processing of fish,
    (2) Any business involved with selling supplies or services to any 
vessel or shoreside processors participating in a fishery managed 
pursuant to an FMP in the waters off the coasts of Alaska, California, 
Oregon, and Washington, or
    (3) Any business involved with purchasing raw or processed products 
from any vessel or shoreside processor participating in a fishery 
managed pursuant to an FMP in the waters off the coasts of Alaska, 
California, Oregon, and Washington.
    (B) Must assign observers without regard to any preference by 
representatives of vessels other than when an observer will be 
deployed.
    (C) Must not solicit or accept, directly or indirectly, any 
gratuity, gift, favor, entertainment, loan, or anything of monetary 
value except for compensation for providing observer services from 
anyone who conducts fishing or fish processing activities that are 
regulated by NMFS in the Pacific coast or North Pacific regions, or who 
has interests that may be substantially affected by the performance or 
nonperformance of the official duties of observer providers.
    (xv) Observer conduct and behavior. An observer provider must 
develop and maintain a policy addressing observer conduct and behavior 
for their employees that serve as observers. The policy shall address 
the following behavior and conduct:
    (A) Observer use of alcohol;
    (B) Observer use, possession, or distribution of illegal drugs; and
    (C) Sexual contact with personnel of the vessel or processing 
facility to which the observer is assigned, or with any vessel or 
processing plant personnel who may be substantially affected by the 
performance or non-performance of the observer's official duties.
    (D) An observer provider shall provide a copy of its conduct and 
behavior policy by February 1 of each year, to observers, observer 
candidates, and the Observer Program Office.
    (xvi) Refusal to deploy an observer. Observer providers may refuse 
to deploy an observer on a requesting vessel if the observer provider 
has determined that the requesting vessel is inadequate or unsafe 
pursuant to those regulations described at Sec.  600.746 or U.S. Coast 
Guard and other applicable rules, regulations, statutes, or guidelines 
pertaining to safe operation of the vessel.
    (6) Observer certification and responsibilities--(i) Applicability. 
Observer certification authorizes an individual to fulfill duties as 
specified in writing by the NMFS Observer Program Office while under 
the employ of a NMFS-permitted observer provider and according to 
certification endorsements as designated under paragraph (g)(6)(iii) of 
this section.
    (ii) Observer certification official. The Regional Administrator 
will designate a NMFS observer certification official who will make 
decisions for the Observer Program Office on whether to issue or deny 
observer certification.
    (iii) Certification requirements--(A) Initial certification. NMFS 
may certify individuals who, in addition to any other relevant 
considerations:
    (1) Are employed by an observer provider company holding a valid 
North Pacific Groundfish Observer Program permit at the time of the 
issuance of the certification to the observer;
    (2) Have provided, through their observer provider:
    (i) Information set forth at Sec.  679.50 regarding an observer 
candidate's health and physical fitness for the job;
    (ii) Meet all observer education and health standards as specified 
in Sec.  679.50; and
    (iii) Have successfully completed NMFS-approved training as 
prescribed by the At-Sea Hake Observer Program and/or the West Coast 
Groundfish Observer Program. Successful completion of training by an 
observer applicant consists of meeting all attendance and conduct 
standards issued in writing at the start of training; meeting all 
performance standards issued in writing at the start of training for 
assignments, tests, and other evaluation tools; and completing all 
other training requirements established by the Observer Program.
    (iv) Have not been decertified under paragraph (g)(6)(ix) of this 
section, or pursuant to Sec.  679.50.
    (B) [Reserved]
    (iv) Denial of a certification. The NMFS observer certification 
official will issue a written determination denying observer 
certification if the candidate fails to successfully complete training, 
or does not meet the qualifications for certification for any other 
relevant reason.
    (v) Issuance of an observer certification. An observer 
certification may be issued upon determination by the observer 
certification official that the candidate has successfully met all 
requirements for certification as specified in paragraph (g)(6)(iii) of 
this section. The following endorsements must be obtained, in addition 
to observer certification, in order for an observer to deploy.
    (A) North Pacific Groundfish Observer Program certification 
training endorsement. A certification training endorsement signifies 
the successful completion of the training course required to obtain 
observer certification. This endorsement expires when the observer has 
not been deployed and performed sampling duties as required by the 
Observer Program Office for a period of time, specified by the Observer 
Program, after his or her most recent debriefing. The observer can 
renew the endorsement by successfully completing certification training 
once more.
    (B) North Pacific Groundfish Observer Program annual general 
endorsements. Each observer must obtain an annual general endorsement 
to their certification prior to his or her first deployment within any 
calendar year subsequent to a year in which a certification training 
endorsement is obtained. To obtain an annual general endorsement, an 
observer must successfully complete the annual briefing, as specified 
by the Observer Program. All briefing attendance, performance, and 
conduct standards required by the Observer Program must be met.
    (C) North Pacific Groundfish Observer Program deployment 
endorsements. Each observer who has completed an initial deployment 
after certification or annual briefing must receive a deployment 
endorsement to their certification prior to any subsequent deployments 
for the remainder of that year. An observer may obtain a deployment 
endorsement by

[[Page 78426]]

successfully completing all pre-cruise briefing requirements. The type 
of briefing the observer must attend and successfully complete will be 
specified in writing by the Observer Program during the observer's most 
recent debriefing.
    (D) At-Sea Hake Observer Program endorsements. A Pacific hake 
fishery endorsement is required for purposes of performing observer 
duties aboard vessels that process groundfish at sea in the Pacific 
whiting fishery. A Pacific whiting fishery endorsement to an observer's 
certification may be obtained by meeting the following requirements:
    (1) Be a prior NMFS-certified observer in the groundfish fisheries 
off Alaska, unless an individual with this qualification is not 
available;
    (2) Receive an evaluation by NMFS for his or her most recent 
deployment that indicated that the observer's performance met Observer 
Program expectations for that deployment;
    (3) Successfully complete a NMFS-approved observer training and/or 
Pacific whiting briefing as prescribed by the Observer Program; and
    (4) Comply with all of the other requirements of this section.
    (vi) Maintaining the validity of an observer certification. After 
initial issuance, an observer must keep their certification valid by 
meeting all of the following requirements specified below:
    (A) Successfully perform their assigned duties as described in the 
Observer Manual or other written instructions from the Observer Program 
Office including calling into the NMFS deployment hotline upon 
departing and arriving into port each trip to leave the following 
information: Observer name, phone number, vessel name departing on, 
date and time of departure and date and time of expected return.
    (B) Accurately record their sampling data, write complete reports, 
and report accurately any observations of suspected violations of 
regulations relevant to conservation of marine resources or their 
environment.
    (C) Not disclose collected data and observations made on board the 
vessel or in the processing facility to any person except the owner or 
operator of the observed vessel or an authorized officer or NMFS.
    (D) Successfully complete NMFS-approved annual briefings as 
prescribed by the At-Sea Hake Observer Program.
    (E) Successful completion of briefing by an observer applicant 
consists of meeting all attendance and conduct standards issued in 
writing at the start of training; meeting all performance standards 
issued in writing at the start of training for assignments, tests, and 
other evaluation tools; and completing all other briefing requirements 
established by the Observer Program.
    (F) Successfully meet all expectations in all debriefings including 
reporting for assigned debriefings.
    (G) Submit all data and information required by the observer 
program within the program's stated guidelines.
    (vii) Limitations on conflict of interest. Observers:
    (A) Must not have a direct financial interest, other than the 
provision of observer services, in a fishery managed pursuant to an FMP 
for the waters off the coast of Alaska, or in a Pacific Coast fishery 
managed by either the state or Federal Governments in waters off 
Washington, Oregon, or California, including but not limited to:
    (1) Any ownership, mortgage holder, or other secured interest in a 
vessel, shore-based or floating stationary processor facility involved 
in the catching, taking, harvesting or processing of fish,
    (2) Any business involved with selling supplies or services to any 
vessel, shore-based or floating stationary processing facility; or
    (3) Any business involved with purchasing raw or processed products 
from any vessel, shore-based or floating stationary processing 
facilities.
    (B) Must not solicit or accept, directly or indirectly, any 
gratuity, gift, favor, entertainment, loan, or anything of monetary 
value from anyone who either conducts activities that are regulated by 
NMFS in the Pacific coast or North Pacific regions or has interests 
that may be substantially affected by the performance or nonperformance 
of the observers' official duties.
    (C) May not serve as observers on any vessel or at any shore-based 
owned or operated by a person who employed the observer in the last two 
years.
    (D) May not solicit or accept employment as a crew member or an 
employee of a vessel or shore-based processor while employed by an 
observer provider.
    (E) Provisions for remuneration of observers under this section do 
not constitute a conflict of interest.
    (viii) Standards of behavior. Observers must:
    (A) Perform their assigned duties as described in the Observer 
Manual or other written instructions from the Observer Program Office.
    (B) Immediately report to the observer program office and the NOAA 
Office of Law Enforcement any time they refuse to board a vessel.
    (C) Accurately record their sampling data, write complete reports, 
and report accurately any observations of suspected violations of 
regulations relevant to conservation of marine resources or their 
environment.
    (D) Not disclose collected data and observations made on board the 
vessel to any person except the owner or operator of the observed 
vessel, an authorized officer, or NMFS.
    (ix) Suspension and decertification--(A) Suspension and 
decertification review official. The Regional Administrator (or a 
designee) will designate an observer suspension and decertification 
review official(s), who will have the authority to review observer 
certifications and issue initial administrative determinations of 
observer certification suspension and/or decertification.
    (B) Causes for suspension or decertification. The suspension/
decertification official may initiate suspension or decertification 
proceedings against an observer:
    (1) When it is alleged that the observer has committed any acts or 
omissions of any of the following: Failed to satisfactorily perform the 
duties of observers as specified in writing by the NMFS Observer 
Program; or failed to abide by the standards of conduct for observers 
(including conflicts of interest);
    (2) Upon conviction of a crime or upon entry of a civil judgment 
for: Commission of fraud or other violation in connection with 
obtaining or attempting to obtain certification, or in performing the 
duties as specified in writing by the NMFS Observer Program; commission 
of embezzlement, theft, forgery, bribery, falsification or destruction 
of records, making false statements, or receiving stolen property; or 
commission of any other offense indicating a lack of integrity or 
honesty that seriously and directly affects the fitness of observers.
    (C) Issuance of initial administrative determination. Upon 
determination that suspension or decertification is warranted, the 
suspension/decertification official will issue a written IAD to the 
observer via certified mail at the observer's most current address 
provided to NMFS. The IAD will identify whether a certification is 
suspended or revoked and will identify the specific reasons for the 
action taken. Decertification is effective 30 calendar days after the 
date on the IAD, unless there is an appeal.
    (D) Appeals. A certified observer who receives an IAD that suspends 
or revokes the observer certification may appeal the determination 
within 30 calendar days after the date on the IAD to the Office of 
Administrative Appeals pursuant to Sec.  679.43.

[[Page 78427]]

    (h) C/P coop failure--(1) The Regional Administrator will determine 
that a permitted C/P coop is considered to have failed if any one of 
the following occurs:
    (i) Any current C/P-endorsed limited entry trawl permit is not 
identified as a C/P coop member in the coop agreement submitted to NMFS 
during the C/P coop permit application process;
    (ii) Any current C/P-endorsed permit withdraws from the C/P coop 
agreement;
    (iii) The coop members voluntarily dissolve the coop; or
    (iv) The coop agreement is no longer valid.
    (2) If the permitted C/P coop dissolves, the designated coop 
manager must notify NMFS SFD in writing of the dissolution of the coop.
    (3) The Regional Administrator may make an independent 
determination of a coop failure based on factual information collected 
by or provided to NMFS.
    (4) In the event of a NMFS-determined coop failure, or reported 
failure, the designated coop manager will be notified in writing about 
NMFS' determination.
    (i) Upon notification of a coop failure, the C/P coop permit will 
no longer be in effect.
    (ii) The C/P sector will convert to an IFQ-based fishery beginning 
the following calendar year after a coop failure, or a soon as 
practicable thereafter. NMFS will develop additional regulations, as 
necessary to implement an IFQ fishery for the C/P sector. Each C/P-
endorsed permit would receive an equal distribution of QS from the 
total IFQ for the catcher/processor sector allocation.

0
27. In Sec.  660.212, the introductory text, and paragraphs (a)(2) and 
(c)(1), are revised to read as follows:
    Sec.  660.212 Fixed gear fishery--prohibitions.
    These prohibitions are specific to the limited entry fixed gear 
fisheries and to the limited entry trawl fishery Shorebased IFQ Program 
under gear switching. General groundfish prohibitions are found at 
Sec.  660.12, subpart C. In addition to the general groundfish 
prohibitions specified in Sec.  660.12, subpart C, it is unlawful for 
any person to:
    (a) * * *
    (2) Take, retain, possess, or land more than a single cumulative 
limit of a particular species, per vessel, per applicable cumulative 
limit period, except for sablefish taken in the limited entry, fixed 
gear sablefish primary season from a vessel authorized to fish in that 
season, as described at Sec.  660.231, subpart E and except for IFQ 
species taken in the Shorebased IFQ Program from a vessel authorized 
under gear switching provisions as described at Sec.  660.140.
* * * * *
    (c) Fishing in conservation areas--(1) Operate a vessel registered 
to a limited entry permit with a longline, trap (pot), or trawl 
endorsement and longline and/or trap gear onboard in an applicable GCA 
(as defined at Sec.  660.230(d)), except for purposes of continuous 
transiting, with all groundfish longline and/or trap gear stowed in 
accordance with Sec.  660.212(a) or except as authorized in the 
groundfish management measures at Sec.  660.230.
* * * * *
[FR Doc. 2010-30527 Filed 12-7-10; 11:15 am]
BILLING CODE 3510-22-P