Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Snapper-Grouper Fishery off the Southern Atlantic States; Amendment 8

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 971128281-7281-01; I.D. 102197D]

RIN 0648-AG27

Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic;

Snapper-Grouper Fishery off the Southern Atlantic States; Amendment 8

AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and

Atmospheric Administration (NOAA), Commerce.

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS issues this proposed rule to implement Amendment 8 to the

Fishery Management Plan for the Snapper-Grouper Fishery of the South

Atlantic Region (FMP). This proposed rule would limit access to the

commercial snapper-grouper fishery; allow the retention of snapper-

grouper in excess of the bag limits on a permitted vessel that has a

single bait net or cast nets on board; and, subject to specific

conditions, exempt snapper-grouper lawfully harvested in Bahamian

waters from the requirement that they be maintained on board a vessel

in the exclusive economic zone (EEZ) of the South Atlantic with head

and fins intact. In addition, Amendment 8 would redefine ``optimum

yield,'' ``overfished,'' and ``overfishing'' for snapper-grouper and

establish a ``threshold level'' for snapper-grouper, i.e., the level of

spawning potential ratio at which the South Atlantic Fishery Management

Council (Council) will take appropriate action including, but not

limited to, eliminating directed fishing mortality and evaluating

measures to eliminate any bycatch mortality. The intended effects of

this rule are to conserve and manage the snapper-grouper resources off

the southern Atlantic states.

DATES: Written comments must be received on or before February 26,

1998.

ADDRESSES: Comments on the proposed rule or on the initial regulatory

flexibility analysis (IRFA) must be sent to the Southeast Regional

Office, NMFS, 9721 Executive Center Drive N., St. Petersburg, FL 33702.

Comments regarding the collection-of-information requirements

contained in this rule should be sent to Edward E. Burgess, Southeast

Regional Office, NMFS, 9721 Executive Center Drive N.,

[[Page 1814]]

St. Petersburg, FL 33702, and to the Office of Information and

Regulatory Affairs, Office of Management and Budget (OMB), Washington,

DC 20503 (Attention: NOAA Desk Officer).

Requests for copies of Amendment 8, which includes a final

supplemental environmental impact statement, a regulatory impact

review, an IRFA, and a social impact assessment, should be sent to the

South Atlantic Fishery Management Council, One Southpark Circle, Suite

306, Charleston, SC 29407-4699; phone: 803-571-4366; fax: 803-769-4520.

FOR FURTHER INFORMATION CONTACT: Peter Eldridge, 813-570-5305.

SUPPLEMENTARY INFORMATION: The snapper-grouper fishery off the southern

Atlantic states is managed under the FMP. The FMP was prepared by the

Council and is implemented under the authority of the Magnuson-Stevens

Fishery Conservation and Management Act (Magnuson-Stevens Act) by

regulations at 50 CFR part 622.

Limited Access

The purposes of the proposed limited access program for the

commercial snapper-grouper fishery are to promote stability in the

fishery, facilitate long-term planning for the prosecution and

management of the fishery, promote orderly utilization of the resource,

decrease the incentive for overcapitalization, prevent continual

dissipation of returns from fishing caused by open access to the

fishery, prevent increases in fishing effort and habitat damage that

would result from open access to the fishery, and provide a more

flexible management system. To achieve these objectives, the Council

proposes to limit participation in the commercial fishery to owners who

had vessels with commercial vessel permits for snapper-grouper at any

time from February 11, 1996, through February 11, 1997, and had at

least one landing of snapper-grouper from January 1, 1993, through

August 20, 1996.

Specifically, an owner of a vessel that had landings of snapper-

grouper from the South Atlantic of at least 1,000 lb (453.6 kg), whole

weight, during any one of the years 1993, 1994, or 1995, or in 1996

through August 20, would receive a transferable commercial permit. An

owner of a vessel that did not have landings of at least 1,000 lb

during any one of these years but had at least one landing of snapper-

grouper from the South Atlantic from January 1, 1993, through August

20, 1996, would receive a trip-limited commercial permit. A vessel with

a trip-limited permit would be limited on any trip to 225 lb (102.1 kg)

of snapper-grouper.

The Council chose these limited access measures to minimize

exclusion of present participants from the fishery. These measures

would not result in reduced fishing mortality in the short term, but

would minimize the possibility of increasing fishing pressure in the

long term.

Historical Landings

Eligibility for limited access permits based on landings of

snapper-grouper from the South Atlantic would be determined from

fishing vessel logbooks received by NMFS on or before August 20, 1996.

The Council chose August 20, 1996, because that was the date when the

Council decided to base eligibility on such landings. The Council was

concerned that allowing consideration of landings from logbooks

received after that date would provide an incentive for vessel owners

to submit fraudulent logbooks that showed landings meeting the

criteria. State trip ticket data may be considered in support of

landings claims provided that such information was received by the

state on or before September 20, 1996. Only landings that were recorded

during the period when the vessel had a valid Federal permit and only

landings that were harvested, landed, and sold in compliance with all

state and Federal regulations would be used to determine eligibility

for commercial snapper-grouper limited access permits.

If a vessel with documented landings of snapper-grouper during the

qualifying period changed ownership, the owner at the time of the

landings would retain credit for such landings for the purpose of

determining eligibility for a limited access permit, unless the sale of

the vessel included a written agreement that credit for such landings

transfers to the new owner. If a snapper-grouper catch history is

transferred under such an agreement, the entire snapper-grouper

landings history would be transferred--partial transfers would not be

recognized.

Permit Application/Issuance/Reconsideration

Proposed Sec. 622.18(d) would set forth the procedures for permit

application, issuance, and reconsideration. Applications for permits

would have to be made within 90 days after publication of the final

rule. Permits would be initially issued to qualifying vessel owners.

Effective 150 days after publication of the final rule, the only

commercial vessel permits that would be valid for the commercial

snapper-grouper fishery would be those issued under Amendment 8's

limited access criteria.

An Application Oversight Board (Board) would be established to

assist the Regional Administrator, Southeast Region, NMFS (Regional

Administrator), in resolving disputes over eligibility for limited

access permits. The Board would be made up of the state directors (or

their designees) from each state in the Council's area of jurisdiction.

If an applicant requests the Regional Administrator to reconsider a

determination of initial permit eligibility, the Regional Administrator

will forward the application and related materials to the Board for its

consideration. The Board would consider whether the eligibility

criteria for a limited access permit were applied to an applicant in a

proper manner. The Board could not consider ``hardship'' applications

in which vessel owners seek issuance of a permit based on personal,

economic, social, or other considerations, other than the eligibility

criteria. Each member would provide his/her individual recommendation

on each application for reconsideration to the Regional Administrator

for final administrative decision.

Transfer of Permits

Upon request, NMFS may transfer a transferable permit on a one-for-

one basis to a replacement vessel, including a new vessel, or upon a

change of ownership of a permitted vessel to an immediate family

member. In other words, one commercial snapper-grouper permit issued

according to the limited access criteria may be surrendered to the

Regional Administrator in exchange for one limited access permit issued

to the same owner or an immediate family member of the owner. In

addition, if an individual has a written contract entered into and

dated not later than August 20, 1996, that provides for a permit

transfer with the purchase of a vessel that qualifies for a

transferable permit, NMFS will transfer the permit to that individual

on a one-for-one basis. In this case, the entire catch history of a

vessel being purchased would be transferred--partial transfers of the

catch history would not be recognized. An individual intending to

qualify under the written contract provision would be required to

provide a copy of the contract to the Regional Administrator not later

than 150 days after the final rule is published.

NMFS will transfer a transferable permit under circumstances other

than those described above if a vessel owner surrenders two existing

snapper-grouper transferable permits to the Regional Administrator in

exchange for one new

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permit. The entire catch histories of the vessels whose permits are

exchanged for the one new permit would be transferred to the owner of

the vessel receiving the new permit.

The Council intends that the two-for-one permit transfer

requirement would apply until the optimum number of vessels in the

fishery is reached. Amendment 8 states the Council's intent to amend

the FMP to eliminate the two-for-one permit transfer requirement once

data become available to determine this optimum number and that number

is reached.

By application from an owner of a vessel with a trip-limited

permit, the Regional Administrator may transfer the permit to a

replacement vessel, provided the replacement vessel is equal to or less

than the size (length and gross tonnage) of the replaced vessel. A

replacement vessel could be a new vessel or a vessel replacing a lost

or damaged vessel.

As is the case for all commercial vessel permits issued by the

Regional Administrator, a snapper-grouper limited access permit would

be valid only for the vessel and owner named on the permit.

Accordingly, a person desiring a change in either the vessel or the

owner of a limited access permit would have to submit an application

for transfer to the Regional Administrator. NMFS would charge an

administrative fee to cover the cost of processing such application for

transfer.

Permit Renewal

NMFS will not reissue a limited access permit if the permit is

revoked or if an application for renewal is not received by the

Regional Administrator within 60 days of the permit's expiration date.

The current earned income or gross sales requirement for a commercial

vessel permit for snapper-grouper would not apply for issuance of a

limited access permit.

Use of Nets for Bait

Amendment 8 proposes to allow the use of cast and bait nets on

board permitted vessels. The possession of bait nets would be limited

to one per vessel. The bait net could be up to 50 ft (15.2 m) long by

10 ft (3.1 m) high with a stretched mesh size of not more than 1.5

inches (3.8 cm). Currently, the possession of nets on board severely

limits the authorized possession of snapper-grouper. This proposal

would allow fishermen on permitted vessels to use nets to catch bait

while fishing for South Atlantic snapper-grouper on the same trip.

Snapper-grouper From Bahamian Waters

Amendment 8 proposes to exempt snapper-grouper caught in Bahamian

waters in accordance with Bahamian law from the requirement that they

be maintained with head and fins intact on board a vessel in the South

Atlantic EEZ. This exemption would apply provided the vessel is in

transit from the Bahamas and valid Bahamian fishing and cruising

permits are on board. Vessels in transit from the Bahamas would not be

allowed to fish in the South Atlantic EEZ. This proposal would allow

fishermen legally fishing in Bahamian waters to return to ports in the

southern Atlantic states with filleted fish or fish that otherwise do

not have head and fins intact.

Optimum Yield, Overfished, Overfishing, and Threshold Level

Amendment 8 proposes to define optimum yield (OY) for snapper-

grouper species as the yield from a stock with a 40-percent spawning

potential ratio (SPR). The present definition of OY is any harvest

level for a species which maintains, or is expected to maintain, over

time, a survival rate of biomass into the stock of spawning age fish

that will achieve at least a level of 30-percent spawning stock biomass

per recruit (SSBR) relative to the SSBR that would occur with no

fishing. The proposed definition of OY is more conservative than the

current OY (i.e., it would provide more biological protection to the

resource). The Council is changing from SSBR to SPR as a basis for

specifying OY because SPR is technically a more correct reference to

the spawning population and is used in the most recent stock

assessment. SPR represents the number of spawning females of a species

when it is being fished divided by the number of spawning females of

the species when it is not being fished (i.e., when only natural

mortality occurs).

Amendment 8 would define a snapper-grouper species as being

overfished when the SPR is below 20 percent. Presently, a snapper-

grouper species is considered overfished when the spawning stock is

below the level of 30 percent of that which would occur in the absence

of fishing (i.e., when the SPR is below 30 percent). Also, Amendment 8

would define overfishing for a stock that is not overfished as a

fishing mortality rate that exceeds the fishing mortality rate that

would produce an SPR of 20 percent.

The proposed changes to the definitions of overfishing and

overfished stocks may not be in compliance with national standards 1

(prevent overfishing) and 2 (use the best scientific information

available) of the Magnuson-Stevens Act. The Magnuson-Stevens Act

requires the specification of a time period for ending overfishing and

rebuilding the fishery that is as short as possible and does not exceed

ten years, unless limited exceptions apply. The Magnuson-Stevens Act

defines overfishing as the rate of fishing that jeopardizes the

capacity of a fishery to produce MSY on a continuing basis. Although

information defining the stock size that would produce MSY for snapper-

grouper species is not yet available, the best scientific information

available indicates that an acceptable substitute for the MSY fishing

mortality rate is a fishing mortality rate that results in an SPR of

30-40 percent. It appears that changing the definitions of overfishing

and overfished stocks from 30-percent SPR to 20-percent SPR would allow

a fishing mortality rate that is too high to produce MSY. Therefore,

the new definitions may not prevent overfishing or enable overfished

stocks to be rebuilt to target levels.

This amendment would also establish a ``threshold level'' criterion

of 10-percent SPR that would trigger management action by the Council.

If the SPR falls below the 10-percent threshold level, the Council

would take appropriate action to prevent further population decline,

including but not limited to, eliminating fishing mortality due to

directed fishing and evaluating measures to eliminate any bycatch

mortality. The NMFS proposed National Standard Guidelines for the

Magnuson-Stevens Act (62 FR 41907, August 4, 1997) state that the

minimum stock size threshold should be set at the greater of either

one-half the MSY stock size or the minimum stock size at which

rebuilding to the MSY level would be expected to occur within 10 years

if the stock were exploited at the specified maximum fishing mortality

threshold. Given that the best scientific information available

indicates a target SPR for species in the snapper-grouper management

unit between 30 and 40 percent, the 10-percent threshold level appears

to be too low to prevent overfishing and rebuild stocks within the

appropriate time frame. As a result, it may not comply with national

standards 1 and 2.

According to Amendment 8, when there is insufficient information

available to determine if a species is overfished, overfishing would be

defined as a fishing mortality rate in excess of the fishing mortality

rate corresponding to a default SPR of 30 percent. If overfishing is

occurring, a program to reduce fishing mortality

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rates to at least the level corresponding to management target levels

would be implemented.

The time frame in the FMP for recovery of overfished stocks would

remain unchanged. For shorter lived, faster growing species (e.g.,

snapper, excluding red snapper; greater amberjack; black sea bass; and

red porgy), the time frame is not to exceed 10 years. For longer lived,

slower growing species (e.g., red snapper and groupers), the time frame

is not to exceed 15 years.

Availability of Amendment 8

Additional background and rationale for the measures discussed

above are contained in Amendment 8, the availability of which was

announced in the Federal Register (62 FR 58703, October 30, 1997).

Written comments on Amendment 8 must have been received by December 29,

1997. All comments received on Amendment 8 or on this proposed rule

during their respective comment periods will be addressed in the final

rule.

Changes Proposed by NMFS

For clarity, NMFS proposes to add to Sec. 622.39(a) a reference to

the bag and other limits of South Atlantic snapper-grouper that apply

to persons aboard permitted vessels that have on board longlines in the

longline closed areas.

For standardization and enforceability, NMFS proposes to specify at

Sec. 622.44 that all weights applicable to commercial trip limits are

round or eviscerated weights. Currently, trip limits are monitored by

the landed weight, whether whole, eviscerated, or mixed. Under this

procedure, a person monitoring a trip does not have to sort fish

between whole and eviscerated, weigh each group, and apply conversion

factors to the eviscerated fish to determine equivalent whole weights.

Accordingly, this standardization of the regulatory language does not

constitute a change in practices in the fisheries.

Classification

At this time, NMFS has not determined that Amendment 8 is

consistent with the national standards of the Magnuson-Stevens Act and

other applicable laws. NMFS, in making that determination, will take

into account the data, views, and comments received during the comment

period on Amendment 8.

This proposed rule has been determined to be not significant for

purposes of E.O. 12866.

The Council prepared an IRFA that describes the impact this

proposed rule, if adopted, would have on small entities. Based on the

IRFA, NMFS agrees with the Council's conclusion that Amendment 8, if

approved and implemented through final regulations, would have a

significant economic impact on a substantial number of small entities.

A summary of the IRFA's assessment of the significant impacts on small

entities follows.

Amendment 8 would affect most of the roughly 2,500 commercial

vessels that currently hold valid commercial snapper-grouper permits,

because the vast majority of such vessels operate in the EEZ for at

least part of the year. All of the vessels that would be affected by

Amendment 8 are considered small business entities for the purposes of

the Regulatory Flexibility Act, because their individual annual gross

revenues are less than $3 million. The vessels that would be affected

by Amendment 8 generate annual gross revenues ranging from $53,000

(vessels that use vertical fishing lines) to about $237,000 (vessels

that use longlines). The exvessel value of catches from these vessels

in 1995 was approximately $15.5 million.

The Council estimates that the limited entry action may reduce

annual gross revenue of commercial fishermen by approximately $1.0

million (6.5 percent of current revenue) during the first year under

that action. This estimate may be high, because some of the 513 vessels

listed as having landed snapper-grouper species that would not qualify

under the limited entry program may no longer be participating in the

fishery. Also, other vessels may be eligible for a trip-limited permit

that would allow them to harvest fish with a 225-lb (102.1-kg) trip

limit. Thus, the actual reduction in gross revenue could be less than

the estimated $1.0 million.

Allowing the use of cast and bait nets for capturing bait would

reduce costs for fishermen and could enhance fishing success, because

live bait is more effective than frozen bait. Also, this measure

clarifies the use of gear and should enhance enforcement of gear

regulations.

Allowing the transit of Bahamian caught fish through the South

Atlantic EEZ would increase demand for for-hire trips to the Bahamas

and, as a result, increase revenue to the for-hire fishery. Also,

allowing fishermen to fillet their Bahamian catch would reduce storage

costs and enhance quality of fish during transit. This should result in

increased satisfaction for anglers who generally prize fresh fish for

consumption.

The Council considered the status quo as an alternative to each

proposed action. For the limited entry system, the Council also

considered a number of alternatives that would have established

different dates and/or pounds of snapper-grouper as criteria to

determine initial eligibility. One alternative for the limited entry

system also contained other options regarding the composition of the

Application Oversight Board, permit transfers, and permit renewals.

Relative to the proposed actions, the Council concluded that all of the

alternatives would result in reduced net benefits from the fishery in

the long term. Some of the alternatives would minimize economic impacts

on small entities in the short term, but would not achieve the

Council's goal of managing species in the management unit at the

optimum yield level. Thus, these alternatives would not meet the stated

objectives of the FMP.

A copy of the IRFA is available for comment (see ADDRESSES).

Notwithstanding any other provision of law, no person is required

to respond to nor shall a person be subject to a penalty for failure to

comply with a collection of information subject to the requirements of

the Paperwork Reduction Act (PRA) unless that collection of information

displays a currently valid OMB Control Number.

This rule contains three, new, one-time collection-of-information

requirements subject to the PRA--namely, the submission of applications

for limited access commercial permits for snapper-grouper,

reconsideration of determinations that applicants are not eligible for

initial limited access commercial permits, and submission of contracts

that provide for transfers of rights to limited access commercial

permits. These requirements have been submitted to OMB for approval.

The public reporting burdens for these collections of information are

estimated at 20, 45, and 15 minutes per response, respectively,

including the time for reviewing instructions, searching existing data

sources, gathering and maintaining the data needed, and completing and

reviewing the collections of information.

Public comment is sought regarding: Whether these proposed

collections of information are necessary for the proper performance of

the functions of the agency, including whether the information will

have practical utility; the accuracy of the burden estimates; ways to

enhance the quality, utility, and clarity of the information to be

collected; and ways to minimize the burden of the collections of

information, including through the use of automated collection

techniques or other forms of information technology. Send comments on

these, or any other aspects of the collections of information, to NMFS

and OMB (see ADDRESSES).

[[Page 1817]]

List of Subjects in 50 CFR Part 622

Fisheries, Fishing, Puerto Rico, Reporting and recordkeeping

requirements, Virgin Islands.

Dated: January 5, 1998.

Rolland A. Schmitten,

Assistant Administrator for Fisheries, National Marine Fisheries

Service.

For the reasons set out in the preamble, 50 CFR part 622 is

proposed to be amended as follows:

PART 622--FISHERIES OF THE CARIBBEAN, GULF, AND SOUTH ATLANTIC

1. The authority citation for part 622 continues to read as

follows:

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

2. In Sec. 622.4, paragraph (a)(2)(vi) and the first sentence of

paragraph (g) are revised to read as follows:

Sec. 622.4 Permits and fees.

(a) * * *

(2) * * *

(vi) South Atlantic snapper-grouper. For a person aboard a vessel

to be eligible for exemption from the bag limits for South Atlantic

snapper-grouper in or from the South Atlantic EEZ, to engage in the

directed fishery for tilefish in the South Atlantic EEZ, to use a

longline to fish for South Atlantic snapper-grouper in the South

Atlantic EEZ, or to use a sea bass pot in the South Atlantic EEZ north

of 28 deg.35.1' N. lat. (due east of the NASA Vehicle Assembly

Building, Cape Canaveral, FL), either a transferable commercial permit

for South Atlantic snapper-grouper or a trip-limited commercial permit

for South Atlantic snapper-grouper must have been issued to the vessel

and must be on board. A vessel with longline gear and more than 200 lb

(90.7 kg) of tilefish aboard is considered to be in the directed

fishery for tilefish. It is a rebuttable presumption that a fishing

vessel with more than 200 lb of tilefish aboard harvested such tilefish

in the EEZ. A vessel with a trip-limited commercial permit is limited

on any trip to 225 lb (102.1 kg) of snapper-grouper. (See Sec. 622.18

for information on limited access transferable and trip-limited

commercial permits for the South Atlantic snapper-grouper fishery.)

* * * * *

(g) * * * A vessel permit or endorsement or dealer permit issued

under this section is not transferable or assignable, except as

provided in paragraph (m) of this section for a commercial vessel

permit for Gulf reef fish, in paragraph (n) of this section for a fish

trap endorsement, in paragraph (p) of this section for a red snapper

endorsement, or in Sec. 622.18(e) for a commercial vessel permit for

South Atlantic snapper-grouper. * * *

* * * * *

3. In Sec. 622.7, paragraph (b) is revised to read as follows:

Sec. 622.7 Prohibitions.

* * * * *

(b) Falsify information on an application for a permit or

endorsement or submitted in support of such application, as specified

in Sec. 622.4(b) or (g) or Secs. 622.17 or 622.18.

* * * * *

4. Section 622.18 is added to subpart B to read as follows:

Sec. 622.18 South Atlantic snapper-grouper limited access.

(a) Applicability. Effective 150 days after the date of publication

of the final rule, the only valid permits for South Atlantic snapper-

grouper are those that have been issued under the limited access

criteria in this section. A vessel may have either a transferable

commercial permit or a trip-limited commercial permit for South

Atlantic snapper-grouper.

(b) Initial eligibility. A vessel is eligible for an initial

limited access commercial permit for South Atlantic snapper-grouper if

the owner had a vessel with a commercial vessel permit for South

Atlantic snapper-grouper at any time from February 11, 1996, through

February 11, 1997, and had at least one landing of snapper-grouper from

the South Atlantic from permitted vessels from January 1, 1993, through

August 20, 1996, as reported on fishing vessel logbooks received by the

SRD on or before August 20, 1996. An owner whose permitted vessels had

landings of snapper-grouper from the South Atlantic of at least 1,000

lb (453.6 kg), whole weight, from permitted vessels in any one of the

years 1993, 1994, or 1995, or in 1996 through August 20, as reported on

fishing vessel logbooks received by the SRD on or before August 20,

1996, is eligible for an initial transferable permit. All other

qualifying owners are eligible for an initial trip-limited permit.

(c) Determinations of eligibility--(1) Permit history. The sole

basis for determining whether a vessel had a commercial vessel permit

for South Atlantic snapper-grouper at any time from February 11, 1996,

through February 11, 1997, is NMFS' permit records. An owner of a

currently permitted vessel who believes he/she meets the February 11,

1996, through February 11, 1997, permit history criterion based on

ownership of a vessel under a different name, as may have occurred when

ownership has changed from individual to corporate or vice versa, must

document his/her continuity of ownership. No more than one owner of a

currently permitted vessel will be credited with meeting the permit

history criterion based on a vessel's permit history.

(2) Landings. (i) Landings of snapper-grouper from the South

Atlantic during the qualifying period are determined from fishing

vessel logbooks received by the SRD on or before August 20, 1996. State

trip ticket data may be considered in support of claimed landings

provided such trip ticket data were received by the state on or before

September 20, 1996.

(ii) Only landings when a vessel had a valid commercial permit for

snapper-grouper and only landings that were harvested, landed, and sold

in compliance with state and Federal regulations may be used to

establish eligibility.

(iii) For the purpose of eligibility for a limited access

commercial permit for snapper-grouper, the owner of a vessel that had a

commercial snapper-grouper permit during the qualifying period retains

the snapper-grouper landings record of that vessel during the time of

his/her ownership unless a sale of the vessel included a written

agreement that credit for such landings was transferred to the new

owner. Such transfer of credit must be for the vessel's entire record

of landings of snapper-grouper from the South Atlantic.

(d) Implementation procedures--(1) Notification of status. On or

about 10 days after the date the final rule is published, the RD will

notify each owner of a vessel that had a commercial permit for South

Atlantic snapper-grouper at any time from February 11, 1996, through

February 11, 1997, and each owner of a vessel that has a commercial

permit for South Atlantic snapper-grouper on the date the final rule is

published, of NMFS' initial determination of eligibility for either a

transferable or trip-limited limited access commercial permit for South

Atlantic snapper-grouper. Each notification will include an application

for such permit. Addresses for such notifications will be based on

NMFS' permit records. A vessel owner who believes he/she qualifies for

a limited access commercial permit for South Atlantic snapper-grouper

and who does not receive such notification must obtain an application

from the RD.

(2) Applications. (i) An owner of a vessel who desires a limited

access commercial permit for South Atlantic snapper-grouper must submit

an application for such permit postmarked

[[Page 1818]]

or hand-delivered not later than 90 days after the date of publication

of the final rule. Failure to apply in a timely manner will preclude

permit issuance even when the vessel owner meets the eligibility

criteria for such permit.

(ii) A vessel owner who agrees with NMFS' initial determination of

eligibility, including type of permit (transferable or trip-limited),

need provide no documentation of eligibility with his/her application.

(iii) A vessel owner who disagrees with the initial determination

of eligibility or type of permit, must specify the type of permit

applied for and provide documentation of eligibility. Documentation and

other information submitted on or with an application are subject to

verification by comparison with state, Federal, and other records and

information. Submission of false documentation or information may

disqualify an owner from initial participation in the limited access

commercial South Atlantic snapper-grouper fishery and is a violation of

the regulations in this part.

(iv) If an application that is postmarked or hand-delivered in a

timely manner is incomplete, the RD will notify the vessel owner of the

deficiency. If the owner fails to correct the deficiency within 20 days

of the date of the RD's notification, the application will be

considered abandoned.

(3) Issuance. (i) If a complete application is submitted in a

timely manner and the eligibility requirements specified in paragraph

(b) of this section are met, the RD will issue an initial commercial

vessel permit, transferable or trip-limited, as appropriate, and mail

it to the vessel owner not later than 140 days after the date the final

rule is published.

(ii) If an application that is postmarked or hand-delivered in a

timely manner is incomplete, the RD will notify the vessel owner of the

deficiency. If the applicant fails to correct the deficiency within 20

days of the date of the RD's notification, the application will be

considered abandoned.

(iii) If the eligibility requirements specified in paragraph (b) of

this section are not met, the RD will notify the vessel owner, in

writing, not later than 120 days after the date of publication of the

final rule of such determination and the reasons for it.

(4) Reconsideration. (i) A vessel owner may request reconsideration

of the RD's determination regarding initial permit eligibility by

submitting a written request for reconsideration to the RD. Such

request must be postmarked or hand-delivered within 20 days of the date

of the RD's notification denying initial permit issuance and must

provide written documentation supporting permit eligibility.

(ii) Upon receipt of a request for reconsideration, the RD will

forward the initial application, the RD's response to that application,

the request for reconsideration, and pertinent records to an

Application Oversight Board consisting of state directors (or their

designees) from each state in the Council's area of jurisdiction. Upon

request, a vessel owner may make a personal appearance before the

Application Oversight Board.

(iii) If reconsideration by the Application Oversight Board is

requested, such request constitutes the vessel owner's written

authorization under section 402(b)(1)(F) of the Magnuson-Stevens

Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.) for

the RD to make available to the Application Oversight Board members

such confidential catch and other records as are pertinent to the

matter under reconsideration.

(iv) The Application Oversight Board may only deliberate whether

the eligibility criteria specified in paragraph (b) of this section

were applied correctly in the vessel owner's case, based solely on the

available record, including documentation submitted by the owner. The

Application Oversight Board may not consider whether an owner should

have been eligible for a commercial vessel permit because of hardship

or other factors. The Application Oversight Board members will provide

their individual recommendations for each application for

reconsideration to the RD.

(v) The RD will make a final decision based on the eligibility

criteria specified in paragraph (b) of this section and the available

record, including documentation submitted by the vessel owner, and the

recommendations and comments from members of the Application Oversight

Board. The RD may not consider whether a vessel owner should have been

eligible for a commercial vessel permit because of hardship or other

factors. The RD will notify the owner of the decision and the reason

for it, in writing, within 15 days of receiving the recommendations

from the Application Oversight Board members. The RD's decision will

constitute the final administrative action by NMFS.

(e) Transfers of permits. A snapper-grouper limited access permit

is valid only for the vessel and owner named on the permit. To change

either the vessel or the owner, an application for transfer must be

submitted to the RD.

(1) Transferable permits. (i) An owner of a vessel with a

transferable permit may request that the RD transfer the permit to

another vessel owned by the same entity.

(ii) A transferable permit may be transferred upon a change of

ownership of a permitted vessel with such permit from one to another of

the following: Husband, wife, son, daughter, brother, sister, mother,

or father.

(iii) A transferable permit may be transferred to an owner who had,

as of August 20, 1996, a written contract for the purchase of a vessel

that included a provision transferring to the new owner the rights to

any limited access permit to which the former owner might become

entitled under the provisions for initial issue of limited access

permits. To be considered, any such written contract must be submitted

to the RD postmarked or hand delivered on or before the date that is

150 days after the date of publication of the final rule that contains

this paragraph.

(iv) Except as provided in paragraphs (e)(1)(i), (ii), and (iii) of

this section, a person desiring to acquire a limited access

transferable permit for South Atlantic snapper-grouper must obtain and

exchange two such permits for one new permit.

(v) A transfer of a permit that is undertaken under paragraph

(e)(1)(ii), (iii), or (iv) of this section will constitute a transfer

of the vessel's entire catch history to the new owner.

(2) Trip-limited permits. An owner of a vessel with a trip-limited

permit may request that the RD transfer the permit to another vessel

owned by the same entity provided the length and gross tonnage of the

replacement vessel are equal to or less than the length and gross

tonnage of the replaced vessel.

(f) Renewal. NMFS will not reissue a commercial vessel permit for

South Atlantic snapper-grouper if the permit is revoked or if the RD

does not receive an application for renewal within 60 days of the

permit's expiration date.

5. In Sec. 622.38, paragraph (a) is revised and paragraph (h) is

added to read as follows:

Sec. 622.38 Landing fish intact.

* * * * *

(a) The following must be maintained with head and fins intact: A

cobia in or from the Gulf or South Atlantic EEZ; a king mackerel or

Spanish mackerel in or from the Gulf, Mid-Atlantic, or South Atlantic

EEZ; except as specified in paragraphs (e) and (h) of this section, a

South Atlantic snapper-grouper in or from the South Atlantic EEZ; a

[[Page 1819]]

yellowtail snapper in or from the Caribbean EEZ; and, except as

specified in paragraphs (c) and (d) of this section, a finfish in or

from the Gulf EEZ. Such fish may be eviscerated, gilled, and scaled,

but must otherwise be maintained in a whole condition.

* * * * *

(h) In the South Atlantic EEZ, snapper-grouper lawfully harvested

in Bahamian waters are exempt from the requirement that they be

maintained with head and fins intact provided valid Bahamian fishing

and cruising permits are on board the vessel and the vessel is in

transit through the South Atlantic EEZ. For the purpose of this

paragraph, a vessel is in transit when it is on a direct and continuous

course through the EEZ and it does not fish in the EEZ.

6. In Sec. 622.39, paragraph (a)(3) is added to read as follows:

Sec. 622.39 Bag and possession limits.

(a) * * *

(3) Paragraph (a)(1) of this section notwithstanding, the bag and

other limits specified in Sec. 622.35(b) apply for South Atlantic

snapper-grouper in or from the EEZ to a person aboard a vessel for

which a commercial permit for South Atlantic snapper-grouper has been

issued that has on board a longline in the longline closed area.

* * * * *

7. In Sec. 622.41, paragraph (d)(2)(ii) introductory text is

revised and paragraphs (d)(4) and (d)(5) are added to read as follows:

Sec. 622.41 Species specific limitations.

* * * * *

(d) * * *

(2) * * *

(ii) Except as specified in paragraphs (d)(3) through (d)(5) of

this section, a person aboard a vessel with unauthorized gear on board,

other than trawl gear, that fishes in the EEZ on a trip is limited on

that trip to:

* * * * *

(4) Use of bait nets. A vessel that has on board a commercial

permit for South Atlantic snapper-grouper, excluding wreckfish, that

fishes in the South Atlantic EEZ on a trip with a bait net on board,

may retain otherwise legal South Atlantic snapper-grouper taken on that

trip with bandit gear, buoy gear, handline, rod and reel, or sea bass

pot, provided only one such net is on board. For the purpose of this

paragraph (d)(4), a bait net is a gillnet not exceeding 50 ft (15.2 m)

in length or 10 ft (3.1 m) in height with stretched mesh measurements

of 1.5 inches (3.8 cm) or smaller that is attached to the vessel when

deployed.

(5) Use of cast nets. A vessel that has on board a commercial

permit for South Atlantic snapper-grouper, excluding wreckfish, that

fishes in the South Atlantic EEZ on a trip with a cast net on board,

may retain otherwise legal South Atlantic snapper-grouper taken on that

trip with bandit gear, buoy gear, handline, rod and reel, or sea bass

pot. For the purpose of this paragraph (d)(5), a cast net is a cone-

shaped net thrown by hand and designed to spread out and capture fish

as the weighted circumference sinks to the bottom and comes together

when pulled by a line.

* * * * *

8. In Sec. 622.44, the last sentence of the introductory text and

paragraph (c) are revised to read as follows:

Sec. 622.44 Commercial trip limits.

* * * For fisheries governed by this part, commercial trip limits

apply as follows (all weights are round or eviscerated weights):

* * * * *

(c) South Atlantic snapper-grouper. When a vessel fishes on a trip

in the South Atlantic EEZ, the vessel trip limits specified in this

paragraph (c) apply, provided persons aboard the vessel are not subject

to the bag limits. See Sec. 622.39(a) for applicability of the bag

limits.

(1) Trip-limited permits. A vessel for which a trip-limited permit

for South Atlantic snapper-grouper has been issued is limited to 225 lb

(102.1 kg) of snapper-grouper.

(2) Golden tilefish. (i) Until the fishing year quota specified in

Sec. 622.42(e)(2) is reached, 5,000 lb (2,268 kg).

(ii) After the fishing year quota specified in Sec. 622.42(e)(2) is

reached, 300 lb (136 kg).

(3) Snowy grouper. (i) Until the fishing year quota specified in

Sec. 622.42(e)(1) is reached, 2,500 lb (1,134 kg).

(ii) After the fishing year quota specified in Sec. 622.42(e)(1) is

reached, 300 lb (136 kg).

* * * * *

[FR Doc. 98-702 Filed 1-9-98; 8:45 am]

BILLING CODE 3510-22-F