[Code of Federal Regulations]
[Title 50, Volume 4]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 50CFR679.42]

[Page 713-716]
 
                    TITLE 50--WILDLIFE AND FISHERIES
 
                         DEPARTMENT OF COMMERCE
 
PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA--Table of Contents
 
         Subpart D--Individual Fishing Quota Management Measures
 
Sec. 679.42  Limitations on use of QS and IFQ.

    (a) IFQ regulatory area and vessel category. The QS or IFQ specified 
for one IFQ regulatory area must not be used in a different IFQ 
regulatory area. Except as provided in paragraph (k) of this section or 
in Sec. 679.41(i)(1) of this part, the IFQ assigned to one vessel 
category must not be used to harvest IFQ species on a vessel of a 
different vessel category. Notwithstanding Sec. 679.40(a)(5)(ii) of this 
part, IFQ assigned to vessel Category B must not be used on any vessel 
less than or equal to 60 ft (18.3 m) LOA to harvest IFQ halibut in IFQ 
regulatory area 2C or IFQ sablefish in the IFQ regulatory area east of 
140 deg. W. long. unless such IFQ derives from blocked QS units that 
result in IFQ of less than 5,000 lb (2.3 mt), based on the 1996 TAC for 
fixed gear specified for the IFQ halibut fishery and the IFQ sablefish 
fishery in each of these two regulatory areas.
    (b) Gear--(1) IFQ Fisheries. Halibut IFQ must be used only to 
harvest halibut with fishing gear authorized in Sec. 679.2. Sablefish 
fixed gear IFQ must not be used to harvest sablefish with trawl gear in 
any IFQ regulatory area, or with pot gear in any IFQ regulatory area of 
the GOA.
    (2) Seabird avoidance gear and methods. The operator of a vessel 
using gear authorized at Sec. 679.2 while fishing for IFQ halibut or 
hook-and-line gear while fishing for IFQ sablefish must comply with 
requirements for seabird avoidance gear and methods set forth at 
Sec. 679.24(e).
    (c) Requirements and deductions. (1) Any individual who harvests 
halibut or sablefish with fixed gear must:
    (i) Have a valid IFQ card.
    (ii) Be aboard the vessel at all times during the fishing operation.
    (iii) Sign any required fish ticket.
    (iv) Sign the IFQ landing report required by 
Secs. 679.5(l)(2)(ii)(C) and (iii)(B).
    (2) NMFS shall use the following sources of information to debit a 
CDQ or IFQ account.
    (i) Except as provided in Sec. 679.5(l)(2)(vi)(J)(2), if offload of 
unprocessed CDQ or IFQ halibut or IFQ sablefish from a vessel, the scale 
weight of the halibut or sablefish product actually measured at the time 
of offload, as required by Sec. 679.5(l)(2)(vi) to be included in the 
IFQ/CDQ landing report.
    (ii) If offload of processed IFQ & CDQ halibut or IFQ sablefish from 
a vessel, the scale weight of the halibut or sablefish processed product 
actually measured at or before the time of offload. If the product scale 
weights are taken before the time of offload, then the species and 
actual product weight of each box or container must be visibly marked on 
the outside of each container to facilitate enforcement inspection.
    (3) All IFQ catch onboard a vessel must be debited from the IFQ 
permit holder's account under which the catch was harvested.
    (d) Emergency waiver. The requirement of paragraph (c) of this 
section for an individual IFQ card holder to be aboard the vessel during 
fishing operations and to sign the IFQ landing report may be waived in 
the event of extreme personal emergency involving the IFQ user during a 
fishing trip. The waiving of these requirements shall apply only to IFQ 
halibut or IFQ sablefish retained on the fishing trip during which such 
emergency occurred.
    (e) Sablefish QS Use. (1) No person, individually or collectively, 
may use more than 3,229,721 units of sablefish QS, except if the amount 
of a person's initial allocation of sablefish QS is greater than 
3,229,721 units, in which case that person may not use more than the 
amount of the initial allocation.
    (2) In the IFQ regulatory area east of 140 deg. W. long., no person, 
individually or collectively, may use more than 688,485 units of 
sablefish QS for this area, except if the amount of a person's initial 
allocation of sablefish QS is greater than 688,485 units, in which case 
that person may not use more than the amount of the initial allocation.

[[Page 714]]

    (f) Halibut QS use. Unless the amount in excess of the following 
limits was received in the initial allocation of halibut QS, no person, 
individually or collectively, may use more than:
    (1) IFQ regulatory area 2C. 599,799 units of halibut QS.
    (2) IFQ regulatory areas 2C, 3A, and 3B. 1,502,823 units of halibut 
QS.
    (3) IFQ regulatory areas 4A, 4B, 4C, 4D, and 4E. 495,044 units of 
halibut QS.
    (g) Limitations on QS blocks--(1) Number of blocks per species. (i) 
Except as provided in paragraph (g)(1)(ii) of this section, no person, 
individually or collectively, may hold more than two blocks for each 
species in any IFQ regulatory area.
    (ii) If that person, individually or collectively, holds unblocked 
QS for a species in an IFQ regulatory area, such person may only hold 
one QS block for that species in that IFQ regulatory area.
    (2) Holding or to hold blocks of QS. For purposes of this section, 
``holding'' or ``to hold'' blocks of QS means being registered by NMFS 
as the person who received QS by initial assignment or approved 
transfer.
    (h) Vessel limitations--(1) Halibut. (i) Except as provided in 
paragraph (h)(1)(ii) of this section, no vessel may be used, during any 
fishing year, to harvest more than one-half percent of the combined 
total catch limits of halibut for IFQ regulatory areas 2C, 3A, 3B, 4A, 
4B, 4C, 4D, and 4E.
    (ii) In IFQ regulatory area 2C, no vessel may be used to harvest 
more than 1 percent of the halibut catch limit for this area.
    (2) Sablefish. (i) Except as provided in paragraph (h)(2)(ii) of 
this section, no vessel may be used, during any fishing year, to harvest 
more than 1 percent of the combined fixed gear TAC of sablefish for the 
GOA and BSAI IFQ regulatory areas.
    (ii) In the IFQ regulatory area east of 140 deg. W. long., no vessel 
may be used to harvest more than 1 percent of the fixed gear TAC of 
sablefish for this area.
    (3) Excess. A person who receives an approved IFQ allocation of 
halibut or sablefish in excess of these limitations may nevertheless 
catch and retain all of that IFQ with a single vessel. However, two or 
more persons may not catch and retain their IFQs with one vessel in 
excess of these limitations.
    (i) Use of IFQ resulting from QS assigned to vessel categories B, C, 
or D by individuals. In addition to the requirements of paragraph (c) of 
this section, IFQ cards issued for IFQ resulting from QS assigned to 
vessel categories B, C, or D must be used only by the individual who 
holds the QS from which the associated IFQ is derived, except as 
provided in paragraph (i)(1) of this section.
    (1) An individual who received an initial allocation of QS assigned 
to categories B, C, or D does not have to be aboard the vessel on which 
his or her IFQ is being fished or to sign IFQ landing reports if that 
individual owns at least a 20-percent interest in the vessel and is 
represented on the vessel by a master employed by that individual. NMFS 
will determine ownership interest for purposes of this paragraph only on 
the basis of written documentation. This minimum 20-percent ownership 
requirement does not apply to any individual who received an initial 
allocation of QS assigned to categories B, C, or D and who, prior to 
April 17, 1997, employed a master to fish any of the IFQ issued to that 
individual, provided the individual continues to own the vessel from 
which the IFQ is being fished at no lesser percentage of ownership 
interest than that held on April 17, 1997, and provided that this 
individual has not acquired additional QS through transfer after 
September 23, 1997.
    (2) The exemption provided in paragraph (i)(1) of this section does 
not apply to individuals who receive an initial allocation of QS 
assigned to vessel categories B, C, or D for halibut in IFQ regulatory 
area 2C or for sablefish QS in the IFQ regulatory area east of 140 deg. 
W. long., and this exemption is not transferrable.
    (3) The exemption provided in paragraph (i)(1) of this section may 
be exercised by an individual on a vessel owned by a corporation, 
partnership, or other entity in which the individual is a shareholder, 
partner, or member, provided that the individual maintains a minimum 20 
percent interest in the vessel owned by the corporation, partnership, or 
other entity. For purposes

[[Page 715]]

of this paragraph, interest in a vessel is determined as the percentage 
ownership of a corporation, partnership, or other entity by that 
individual multiplied by the percentage of ownership of the vessel by 
the corporation, partnership, or other entity.
    (j) Use of IFQ resulting from QS assigned to vessel categories B, C, 
or D by corporations and partnerships. Except as provided in paragraph 
(j)(5) of this section, a corporation or partnership that received an 
initial allocation of QS assigned to categories B, C, or D may fish the 
IFQ resulting from that QS and any additional QS acquired within the 
limitations of this section provided that the corporation or partnership 
owns at least a 20- percent interest in the vessel on which its IFQ is 
fished, and that it is represented on the vessel by a master employed by 
the corporation or partnership that received the initial allocation of 
QS. NMFS will determine ownership interest for purposes of this 
paragraph only on the basis of written documentation. This provision is 
not transferrable and does not apply to QS assigned to vessel categories 
B, C, or D for halibut in IFQ regulatory area 2C or for sablefish in the 
IFQ regulatory area east of 140 deg. W. long. that is transferred to a 
corporation or partnership. Such transfers of additional QS within these 
areas must be to an individual pursuant to Sec. 679.41(c) of this part 
and be used pursuant to paragraphs (c) and (i) of this section.
    (1) A corporation or partnership, except for a publicly-held 
corporation, that receives an initial allocation of QS assigned to 
vessel categories B, C, or D loses the exemption provided under 
paragraph (j) of this section on the effective date of a change in the 
corporation or partnership from that which existed at the time of 
initial allocation.
    (2) For purposes of this paragraph (j), ``a change'' means:
    (i) for corporations and partnerships, the addition of any new 
shareholder(s) or partner(s), except that a court appointed trustee to 
act on behalf of a shareholder or partner who becomes incapacitated is 
not a change in the corporation or partnership; or
    (ii) for estates, the final or summary distribution of the estate.
    (3) The Regional Administrator must be notified of a change in the 
corporation, partnership, or other entity as defined in this paragraph 
(j) within 15 days of the effective date of the change. The effective 
date of change, for purposes of this paragraph (j), is the date on which 
the new shareholder(s) or partner(s) may realize any corporate 
liabilities or benefits of the corporation or partnership or, for 
estates, the date of the determination of a legal heir to the estate, or 
the date of the order for distribution of the estate.
    (4) QS assigned to vessel categories B, C, or D and IFQ resulting 
from that QS held in the name of a corporation, partnership, or other 
entity that changes, as defined in this paragraph, must be transferred 
to an individual, as prescribed in Sec.  679.41 of this part, before it 
may be used at any time after the effective date of the change.
    (5) A corporation or a partnership that received an initial 
allocation of QS assigned to categories B, C, or D and that, prior to 
April 17, 1997, employed a master to fish any of the IFQ issued to that 
corporation or partnership may continue to employ a master to fish its 
IFQ on a vessel owned by the corporation or partnership provided that 
the corporation or partnership continues to own the vessel at no lesser 
percentage of ownership interest than that held on April 17, 1997, and 
provided that corporation or partnership did not acquire additional QS 
through transfer after September 23, 1997.
    (6) A corporation, partnership, or other entity, except for a 
publicly held corporation, that receives an initial allocation of QS 
assigned to categories B, C, or D must provide annual updates to the 
Regional Administrator identifying all current shareholders or partners 
and affirming the entity's continuing existence as a corporation or 
partnership.
    (7) The exemption provided in paragraph (j) of this section may be 
exercised by a corporation, partnership, or other entity on a vessel 
owned by a person who is a shareholder in the corporation, partnership, 
or other entity,

[[Page 716]]

provided that the corporation, partnership, or other entity maintains a 
minimum of 20 percent interest in the vessel. For purposes of this 
paragraph, interest in a vessel is determined as the percentage of 
ownership in the corporation, partnership, or other entity by that 
person who is a shareholder in the corporation, partnership, or other 
entity, multiplied by the percentage of ownership in the vessel by that 
person who is a shareholder in the corporation, partnership, or other 
entity.
    (k) Processing of fish other than IFQ halibut and IFQ sablefish. 
Fish other than IFQ halibut or IFQ sablefish may be processed on a 
vessel on which persons:
    (1) Are authorized to harvest IFQ halibut or IFQ sablefish based on 
allocations of IFQ resulting from QS assigned to vessel category A; or
    (2) Are authorized to harvest IFQ sablefish based on allocations of 
IFQ resulting from QS assigned to vessel categories B or C unless any 
person aboard the vessel is authorized to harvest IFQ halibut based on 
allocations of IFQ resulting from QS assigned to vessel categories B, C, 
or D.

[61 FR 31230, June 19, 1996, as amended at 61 FR 33385, June 27, 1996; 
61 FR 43314, Aug. 22, 1996; 62 FR 7948, Feb. 21, 1997; 62 FR 19690, Apr. 
23, 1997; 62 FR 60669, Nov. 12, 1997; 62 FR 66311, Dec. 18, 1997; 63 FR 
11167, Mar. 6, 1998; 63 FR 47368, Sept. 4, 1998; 63 FR 54611, Oct. 13, 
1998; 64 FR 24962, May 10, 1999; 64 FR 61982, Nov. 15, 1999; 66 FR 
27911, May 21, 2001; 67 FR 4133, Jan. 28, 2002; 67 FR 20918, Apr. 29, 
2002; 67 FR 22011, May 2, 2002]

    Effective Date Note: At 66 FR 27911, May 21, 2001, Sec. 679.42 was 
amended by adding paragraph (j)(6). This section contains information 
collection requirements and will not become effective until approved by 
the Office of Management and Budget.