80 FR 53088 - Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; Pacific Coast Groundfish Fishery; Process for Divestiture of Excess Quota Shares in the Individual Fishing Quota Fishery

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 80, Issue 170 (September 2, 2015)

Page Range		53088-53100
FR Document		2015-21786

In January 2011, NMFS implemented the groundfish trawl rationalization program (a catch share program) for the Pacific coast groundfish limited entry trawl fishery. The program was implemented through Amendment 20 to the Pacific Coast Groundfish Fishery Management Plan and the corresponding implementing regulations. Amendment 20 established the trawl rationalization program, which includes an Individual Fishing Quota program for limited entry trawl participants. Under current regulations, quota share (QS) permit owners must divest quota share holdings that exceed accumulation limits by November 30, 2015. This proposed action would make minor procedural modifications to the program regulations to clarify how divestiture and revocation of excess quota share could occur in November, 2015, and establish procedures applicable in the future if divestiture becomes necessary.

Federal Register, Volume 80 Issue 170 (Wednesday, September 2, 2015)

[Federal Register Volume 80, Number 170 (Wednesday, September 2, 2015)]
[Proposed Rules]
[Pages 53088-53100]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21786]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 660

[Docket No. 150721634-5773-01]
RIN 0648-BF11


Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; 
Pacific Coast Groundfish Fishery; Process for Divestiture of Excess 
Quota Shares in the Individual Fishing Quota Fishery

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

ACTION: Proposed rule, request for comments.

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SUMMARY: In January 2011, NMFS implemented the groundfish trawl 
rationalization program (a catch share program) for the Pacific coast 
groundfish limited entry trawl fishery. The program was implemented 
through Amendment 20 to the Pacific Coast Groundfish Fishery Management 
Plan and the corresponding implementing regulations. Amendment 20 
established the trawl rationalization program, which includes an 
Individual Fishing Quota program for limited entry trawl participants. 
Under current regulations, quota share (QS) permit owners must divest 
quota share holdings that exceed accumulation limits by November 30, 
2015. This proposed action would make minor procedural modifications to 
the program regulations to clarify how divestiture and revocation of 
excess quota share could occur in November, 2015, and establish 
procedures applicable in the future if divestiture becomes necessary.

DATES: Comments on this proposed rule must be received on or before 
October 2, 2015.

ADDRESSES: You may submit comments on this document, identified by 
NOAA- NMFS-2015-0086, by any of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to 
www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2015-0086, click the 
``Comment Now!'' icon, complete the required fields, and enter or 
attach your comments.
     Mail: Submit written comments to William W. Stelle, Jr., 
Regional Administrator, West Coast Region, NMFS, 7600 Sand Point Way 
NE., Seattle, WA 98115-0070; Attn: Colby Brady.
     Fax: 206-526-6117; Attn: Colby Brady.
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period, 
may not be considered by NMFS. All comments received are a part of the 
public record and will generally be posted for public viewing on 
www.regulations.gov without change. All personal identifying 
information (e.g., name, address, etc.), confidential business 
information, or otherwise sensitive information submitted voluntarily 
by the sender will be publicly accessible. NMFS will accept anonymous 
comments (enter ``N/A'' in the required fields if you wish to remain 
anonymous).

[[Page 53089]]


FOR FURTHER INFORMATION CONTACT: Colby Brady (West Coast Region, NMFS), 
phone: 206-526-6117, and email: [email protected], or contact Sarah 
Towne (West Coast Region, NMFS), phone: 206-526-4140, and email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Electronic Access

    This proposed rule is accessible via the Internet at the Office of 
the Federal Register Web site at https://www.federalregister.gov. 
Background information and documents are available at the NMFS West 
Coast Region Web site at http://www.westcoast.fisheries.noaa.gov and at 
the Pacific Fishery Management Council's Web site at http://www.pcouncil.org.
    The final environmental impact statement (FEIS) regarding 
specifications to rationalize the trawl fishery for the implementation 
of Amendment 20 to the Pacific Coast Groundfish Fishery Management Plan 
(PCGFMP, or FMP) is available on the NOAA Fisheries West Coast Region 
Web site at: http://www.pcouncil.org/groundfish/fishery-management-plan/fmp-amendment-20 Copies of both documents are available from 
Donald McIsaac, Executive Director, Pacific Fishery Management Council 
(Council), 7700 NE Ambassador Place, Portland, OR 97220, phone: 503-
820-2280.

Background

    In January 2011, the National Marine Fisheries Service (NMFS) 
implemented a trawl rationalization program, which is a catch share 
program, for the Pacific coast groundfish limited entry trawl fishery. 
The program was implemented through Amendment 20 to the PCGFMP and the 
corresponding implementing regulations at 50 CFR part 660. Amendment 20 
established the trawl rationalization program that consists of: an 
Individual Fishing Quota (IFQ) program for the shorebased trawl fleet 
(including whiting and nonwhiting sectors), and cooperative (coop) 
programs for the at-sea mothership and catcher/processor trawl fleets 
(whiting only).
    Regulations in Sec. Sec.  660.111 and 660.140(d)(4) define and 
describe quota share (QS) and individual bycatch quota (IBQ) control 
limits as the maximum amount of QS and IBQ that a person, individually 
or collectively, may own or control in the shorebased IFQ program. The 
regulations set individual control limits for each of the 30 IFQ 
species, as well as an aggregate nonwhiting control limit across 
species. NMFS collects ownership interest information annually in order 
to ensure compliance with the control limits, and QS permit owners must 
disclose the identity and share of any persons who have an ownership 
interest greater or equal to 2% of the QS permit.
    Consistent with the trawl rationalization program, some QS permit 
owners were initially allocated an amount of QS and IBQ that exceeded 
one or more of the control limits, based on their catch history during 
the qualifying years. The regulations provided these QS permit owners 
an adjustment period to hold the excess shares, but they must 
completely divest of any excess QS or IBQ by November 30, 2015, as 
specified at Sec.  660.140(d)(4)(v). For any QS permit owner who does 
not divest of their excess shares by the deadline, the regulations 
specify that NMFS will revoke their excess QS or IBQ and redistribute 
it to other QS permit owners in proportion to their current QS or IBQ 
holdings, up to the control limits.
    NMFS seeks to clarify the revocation protocols for cases where QS 
permit owners do not voluntarily divest before the deadline. The 
current regulations at Sec.  660.140(d)(4)(v) make it clear that if a 
QS permit owner owns QS in excess of a control limit after the 
divestiture deadline, NMFS will revoke and redistribute the excess QS 
to all other QS permits in proportion to their QS and IBQ holdings, up 
to the control limits. These regulations are sufficient in simple 
situations where the permit owner only owns one permit. However, the 
current regulations do not address how NMFS would revoke shares from a 
person or entity that is over an individual species control limit 
across several QS permits, or how NMFS would revoke shares from a 
person or entity that is over the aggregate nonwhiting control limit. 
In addition, the Council's Groundfish Advisory Panel (GAP) identified a 
problem where QS permit owners who are over the aggregate nonwhiting 
control limit may not be able to find a willing recipient to take their 
excess QS.

Proposed Action

    The proposed action includes two regulatory mechanisms that further 
implement original QS divestiture provisions of the trawl 
rationalization program: proportional reduction of QS and abandonment. 
All items were discussed at the November 2014 Council meeting in Costa 
Mesa, CA, and at the April 2015 Council meeting in Rohnert Park, CA.
    NMFS proposes to apply a ``proportional reduction'' methodology to 
revoke excess shares from QS permit owners who exceed individual 
species control limits across several QS permits or exceed the 
aggregate nonwhiting control limit and fail to divest by the November 
30, 2015, divestiture deadline. In cases where a person or entity has 
not divested to the control limits for individual species across QS 
permits, NMFS would revoke QS at the species level in proportion to the 
amount the QS percentage from each permit contributes to the total QS 
percentage owned. In cases where a QS permit owner has not divested to 
the control limit for aggregate nonwhiting QS holdings, NMFS would 
revoke QS at the species level in proportion to the amount of the 
aggregate overage divided by the aggregate total owned. Because QS is a 
valuable asset, it is important to clearly define and receive public 
comment on the process by which NMFS would permanently revoke QS to the 
QS and IBQ control limits. More information and examples are provided 
below.
    In addition, NMFS proposes a process by which QS permit owners who 
are over the aggregate nonwhiting control limit may abandon shares of 
their choosing to NMFS by November 15, 2015. The ``abandonment'' option 
would provide additional flexibility for QS permit owners who are over 
the aggregate limit, because they could choose which nonwhiting IFQ 
species to abandon, rather than waiting until the divestiture deadline 
when some of each IFQ species would be revoked proportionally by NMFS.
    NMFS also proposes to modify the regulations so that the same 
revocation and abandonment procedures could be used in the future if 
necessary. NMFS proposes to notify any QS permit owner who is found to 
exceed an accumulation limit after the November 30, 2015, divestiture 
deadline, and provide the QS permit owner 60 days to divest of the 
excess QS. NMFS also proposes that any QS permit owner who is found to 
exceed the aggregate nonwhiting control limit may abandon QS in excess 
of the limit to NMFS within 30 days of the notification, using the same 
method described further below.

Proportional Reduction to Individual Species Control Limits

    As described above, the current regulations at Sec.  660.140(d)(4) 
set individual control limits for each of 30 IFQ species. At the time 
of this rulemaking, nine unique entities hold QS in excess of one or 
more of the individual species control limits, and must divest to the 
limits by November 30, 2015. In the event that a QS permit

[[Page 53090]]

owner has not divested to the individual species control limits by 
November 30, 2015, current regulations described in Sec.  
660.140(d)(4)(v) clearly define how NMFS will revoke and redistribute 
the excess QS or IBQ if the QS permit owner only has ownership in one 
QS permit. NMFS will revoke the QS or IBQ in excess of the limit and 
redistribute the excess QS to all other QS permit owners in proportion 
to their current QS holdings, up to the control limits. For example, 
the individual species control limit for starry flounder is 10 percent. 
If a QS permit owner holds 11 percent of starry flounder after the 
divestiture deadline, NMFS would revoke one percent of starry flounder 
and redistribute it to all other QS permit owners in proportion to 
their current QS holdings, up to the control limits.
    However, if a QS permit owner holds QS in excess of an individual 
species control limit across several QS permits after the November 30, 
2015, deadline, current regulations do not specify how the excess QS 
would be revoked. NMFS proposes to revoke QS at the species level in 
proportion to the amount the QS percentage from each permit contributes 
to the total QS percentage owned. For example, if a QS permit owner 
holds a total of 11 percent of starry flounder across five different QS 
permits, NMFS would need to revoke a total of one percent from the 
permit owner. In order to determine how much to revoke from each QS 
permit, NMFS would calculate how much each of the five QS permits was 
contributing to the total amount of starry flounder owned by the permit 
owner. In Table 1 below, QS Permit 1 accounts for 18.182 percent of the 
total starry flounder QS owned by the permit owner, QS Permit 2 
accounts for 9.091 percent, etc. (see Column C below in Table 1). NMFS 
would then apply this same proportion to the overage amount to 
determine how much to revoke from each permit. For example, since the 
QS permit owner held one percent in excess of the control limit, 0.182 
percent would be revoked from QS Permit 1, 0.091 percent would be 
revoked from QS Permit 2, etc. (see Column D below in Table 1). A total 
of one percent would be revoked across all permits to reach the 10 
percent individual species control limit.

   Table 1-- Example of How NMFS Would Revoke QS for an Entity Over an Individual Species Control Limit Across
                               Multiple QS Permits After the Divestiture Deadline
   [NMFS proposes to revoke QS from each permit in proportion to the amount each QS permit contributes to the
   overage. This example is speculative, and does not intentionally bear any resemblance to any particular QS
                                                     owner.]
----------------------------------------------------------------------------------------------------------------
                  A                           B                  C                  D                  E
----------------------------------------------------------------------------------------------------------------
                                                             Individual
                                       QS percent owned   pemit's share of    Amount revoked    Amount remaining
                                       by individual in    total  percent   and redistributed       owned by
              QS permit                each permit for      owned across    by NMFS (%)  = [C   individual (%) =
                                        species X (%)    permits  (%) = [B/  x overage (1%)]         (B-D)
                                                            total (11%)]
----------------------------------------------------------------------------------------------------------------
1...................................                  2             18.182              0.182              1.818
2...................................                  1              9.091              0.091              0.909
3...................................                  3             27.273              0.273              2.727
4...................................                  1              9.091              0.091              0.909
5...................................                  4             36.364              0.364              3.636
                                     ---------------------------------------------------------------------------
    Total QS% Owned by Individual                    11  .................              1.000             10.000
     Across QS Permits..............
QS Control Limit for Species........                 10  .................  .................  .................
Amount Over Control Limit...........                  1  .................  .................  .................
----------------------------------------------------------------------------------------------------------------

    The proposed method would provide NMFS with clear guidance of how 
to revoke QS from QS permit owners who are over an individual species 
control limit as of the November 30, 2015, divestiture deadline. 
Because NMFS will strive to make all quota pound allocations to QS 
permit owners on or about January 1, 2016, and all QS permits must be 
under the control limits by this time, a clear process will allow NMFS 
to make any necessary QS revocations and redistributions, and 
subsequent quota pound allocations, in a timely manner.
    If a QS permit owner was found to exceed an individual control 
limit across QS permits in 2016 or beyond, NMFS proposes to notify the 
QS permit owner and provide them 60 days from the time of notification 
to transfer the excess QS/IBQ. If the QS permit owner still held excess 
QS/IBQ at the end of the 60-day divestiture period, NMFS proposes to 
revoke the excess QS/IBQ using the same method described above, and 
redistribute the excess QS/IBQ to all other QS permit owners in 
proportion to their QS/IBQ holdings on or about January 1 of the 
following calendar year, based on current ownership records. No person 
would be allocated an amount of QS or IBQ that would put that person 
over an accumulation limit.
    Widow rockfish cannot be transferred under current regulations 
until widow reallocation is considered and implemented. Because widow 
rockfish QS percentages could be reallocated to QS permit owners in 
different amounts than their current holdings, NMFS will not revoke 
excess widow QS until widow rockfish reallocation consideration and 
applicable implementation is completed. Excessive shares of widow 
rockfish and potential divestiture will be considered as part of the 
forthcoming widow rockfish reallocation proposed rule.

Proportional Reduction to the Aggregate Nonwhiting Control Limit

    As described above, the current regulations at Sec.  660.140(d)(4) 
set an aggregate nonwhiting control limit across IFQ species. The limit 
is 2.7 percent of the total nonwhiting, nonhalibut QS, and is 
calculated by multiplying a QS permit owner's QS for each species by 
the 2010 optimum yield (OY), and then converting the total back into a 
percentage. The aggregate limit is more restrictive than the sum of 
individual species control limits, which was the intent of the Council 
and NMFS since the beginning of the trawl rationalization program in 
January 2011.
    At the time of this rulemaking, three or less unique entities hold 
QS in excess of the aggregate nonwhiting control limit (defined this 
way due to confidentiality requirements), and must

[[Page 53091]]

divest to the 2.7 percent limit by November 30, 2015. In the event that 
a QS permit owner has not divested to the aggregate nonwhiting control 
limit by November 30, 2015, current regulations do not describe how QS 
should be revoked. NMFS proposes to revoke QS at the species level in 
proportion to the amount of the aggregate overage divided by the 
aggregate total owned. For example, if a QS permit owner held the 
maximum allowable amount of each IFQ species (nonwhiting, nonhalibut) 
up to each of the individual species control limits, they would have 
aggregate holdings of 5.840 percent, or 3.140 percent above the 2.7 
percent aggregate nonwhiting control limit (see Columns A-D in Table 2, 
below). NMFS would divide the aggregate overage (3.140 percent) by the 
total aggregate amount owned (5.840 percent), and multiply this value 
(53.767%) by the QS owned for each nonwhiting nonhalibut species to get 
the amount of QS to revoke from each species (see Columns E-H in Table 
2, below). For example, in Table 2 below, NMFS would revoke 5.377 
percent of arrowtooth flounder and 7.097 percent of bocaccio, etc. (see 
Column F in Table 2) from this QS permit owner in order to get them 
down to the 2.7% aggregate nonwhiting control limit. This example is 
intended to illustrate the basis for the calculation, but the 
revocation calculation will be affected by the moratorium on widow 
rockfish QS trading until widow is potentially reallocated, as 
described in Table 2 below.
BILLING CODE 3510-22-P

[[Page 53092]]

[GRAPHIC] [TIFF OMITTED] TP02SE15.000

BILLING CODE 3510-22-C
    Although in Table 2 widow rockfish is included in the aggregate 
nonwhiting control limit calculation, widow rockfish QS cannot 
currently be transferred, pending the potential reallocation of widow 
QS. As described above, NMFS will not revoke widow rockfish QS since it 
could be reallocated and therefore the percentage owned by each QS 
permit owner could change. NMFS brought this issue to the Council in 
April 2015, noting that QS permit owners who are currently over the 
aggregate limit, including their QS

[[Page 53093]]

percentage of widow rockfish, would need to divest of one or more of 
the other non-widow species included in the calculation to get under 
the limit by the deadline. The Council moved to continue to include 
widow rockfish in the aggregate calculation.
    Consequently, NMFS proposes to continue to include widow rockfish 
in the aggregate nonwhiting control limit calculation (as described in 
the Council motion), but if any QS permit owner has not divested to get 
under the aggregate limit by the divestiture deadline, NMFS will revoke 
some of each IFQ species included in the calculation except for widow 
rockfish (until reallocation consideration and implementation is 
completed). As described above, NMFS would divide the amount of the 
aggregate overage by the aggregate total owned, but hold the QS permit 
owner's widow QS holdings constant. NMFS would then adjust the 
proportion used in order to determine how much QS to revoke of the 
other 27 species in the calculation to bring the permit owner's 
holdings to the 2.700% limit. The proportion used would be the same for 
each species, as above, but adjusted to take 0% away from widow and 
slightly more away from each of the other species included in the 
aggregate calculation in order to get the permit owner down to the 
limit. Using the same example as above, but holding widow constant, the 
proportion used in Table 3 to determine the QS to revoke for each 
species changes slightly, from 53.767% in Table 2 to 54.023% in Table 3 
to bring the permit owner to the 2.700% aggregate limit without 
revoking any widow rockfish QS.
BILLING CODE 3510-22-P

[[Page 53094]]

[GRAPHIC] [TIFF OMITTED] TP02SE15.001

BILLING CODE 3510-22-C

[[Page 53095]]

    NMFS proposes to revoke QS from each of the aggregate IFQ species 
(nonwhiting, non-halibut) except for widow rockfish since it cannot be 
transferred under current regulations and may be reallocated. NMFS 
would adjust the proportion in Column E so that the QS permit owner 
would continue to hold the same amount of widow, but a little less of 
all other species in order to hold widow constant. The example in Table 
3 is speculative, and does not intentionally bear any resemblance to 
any particular QS owner.
    If a QS permit owner was found to exceed the aggregate nonwhiting 
control limit in 2016 or beyond, NMFS proposes to notify the QS permit 
owner and provide them 60 days from the time of notification to 
transfer excess QS. If the QS permit owner still held QS in excess of 
the aggregate nonwhiting control limit at the end of the 60 day 
divestiture period, NMFS proposes to revoke the excess QS using the 
same method described above, and redistribute the excess QS to all 
other QS permit owners in proportion to their QS holdings on or about 
January 1 of the following calendar year, based on current ownership 
records. No person would be allocated an amount of QS that would put 
that person over an accumulation limit. NMFS will consider the impacts 
of a reallocation of widow rockfish on the aggregate nonwhiting control 
limit and potential divestiture methods as part of the forthcoming 
widow rockfish reallocation proposed rule.
    The proposed method would provide NMFS with clear guidance of how 
to revoke QS from QS permit owners who are over the aggregate 
nonwhiting control limit as of the November 30, 2015, divestiture 
deadline or in 2016 and beyond. Because NMFS will strive to make all 
quota pound allocations to QS permit owners on or about January 1, 
2016, and all QS permits must be under the control limits by this time, 
a clear process will allow NMFS to make any necessary QS revocations 
and redistributions, and subsequent quota pound allocations, in a 
timely manner.

Abandonment

    As described above, the Council's GAP identified a situation where 
a QS permit owner who is over the 2.7% aggregate nonwhiting control 
limit may wish to divest of specific IFQ species, such as starry 
flounder, that are not fully utilized in the fishery in order to get 
down to the aggregate limit. However, the QS permit owner may be unable 
to find another QS permit owner who is willing to purchase or accept as 
a donation the excess QS of these species. If they still held QS in 
excess of the aggregate nonwhiting control limit after the November 30, 
2015, divestiture deadline, NMFS would proceed with the proportional 
reduction method previously described, potentially revoking some of all 
nonwhiting nonhalibut species held by the QS permit owner. At the 
November 2014 Council meeting, the GAP proposed a process by which QS 
permit owners in this situation might voluntarily abandon QS of their 
choosing to NMFS to get under the limits by the divestiture deadline 
and avoid having QS revoked proportionally. The Council expressed 
support for this abandonment option at the April 2015 Council meeting.
    NMFS proposes the abandonment option recommended by the Council in 
order to provide additional flexibility for these QS permit owners to 
come into compliance before the divestiture deadline. NMFS proposes 
that any QS permit owner who is over the 2.7 percent aggregate 
nonwhiting control limit and wishes to voluntarily abandon QS do so by 
notifying NMFS in writing no later than November 15, 2015. NMFS would 
need enough time to process the letter, make an administrative transfer 
of the abandoned QS out of the requesting QS permit owner's online QS 
account prior to the November 30 divestiture deadline, and provide the 
QS permit owner with a new estimate of their aggregate nonwhiting QS 
holdings. If the abandonment of QS had not yet gotten the QS permit 
owner down to the aggregate limit, they would still have time to divest 
of more QS to other QS permit owners prior to the November 30, 2015, 
deadline.
    NMFS proposes that a written abandonment request include: The QS 
permit number, IFQ species, and the QS percentage to be abandoned. 
Either the QS permit owner or an authorized representative of the QS 
permit owner would be required to sign and date the request. QS permit 
owners choosing to utilize the abandonment option would permanently 
relinquish any right to the abandoned QS, and NMFS would redistribute 
the abandoned QS percentages to all other QS permit owners in 
proportion to their QS holdings up to the QS and IBQ control limits, 
based on the most recent ownership interest records. No compensation 
would be due for any abandoned QS. The QS permit owner would be 
responsible for ensuring that the abandonment of QS to NMFS would get 
them under the aggregate nonwhiting control limit; any remaining excess 
found after the divestiture deadline would be revoked proportionally by 
NMFS, as described above.
    If a QS permit owner was found to exceed the aggregate nonwhiting 
control limit in 2016 or beyond, NMFS proposes to notify the QS permit 
owner and provide them 60 days from the time of notification to 
transfer excess QS, and 30 days from the time of notification to 
abandon excess QS to NMFS, using the same method described above.
    The proposed abandonment method would provide a further option for 
QS permit owners over the aggregate nonwhiting control limit to come 
into compliance. Currently, QS permit owners can sell, trade, or give 
away QS to other QS permit owners in order to reduce their holdings to 
the QS and IBQ control limits, or wait until the divestiture deadline 
for NMFS to revoke to these limits. By providing an abandonment option, 
QS permit owners could abandon QS for species of their choosing to NMFS 
instead of finding a buyer/recipient or having NMFS revoke 
proportionally across all nonwhiting nonhalibut species. An abandonment 
option will not be provided for QS permit owners to get under an 
individual species control limits since abandonment was intended to 
allow QS permit owners over the aggregate limit to choose which species 
to give up.

2015 Implementation Guidance

    All QS permit owners and individuals are currently able to divest 
of any QS (except widow QS) in excess of the QS and IBQ control limits 
by the November 30, 2015 divestiture deadline. A QS permit owner may 
sell excess QS in the open QS trading market, donate excess QS to other 
QS owners of their choosing, or barter. However, in the event that a QS 
permit owner is found to be in excess of QS and IBQ control limits 
after the divestiture deadline, NMFS will be required to revoke excess 
QS. This proposed rule clarifies how NMFS will revoke QS from permit 
owners who are over an individual species control limit across several 
QS permits or the aggregate nonwhiting control limit, and provides an 
abandonment option for those over the aggregate limit. NMFS anticipates 
that the proposed action could become final in October 2015, which will 
provide some opportunity for QS owners to use abandonment procedures 
prior to November 15, 2015.
    NMFS sent letters to all QS permit owners who were over one or more 
of the individual species control limits and/or the aggregate 
nonwhiting control limit as of July 28, 2015, to allow time and advance 
notification for divestiture

[[Page 53096]]

(and potentially abandonment). NMFS encourages that all QS permit 
owners divest to the QS and IBQ control limits prior to the divestiture 
deadline if they want to avoid agency action to ensure that they are 
under the required control limits. If any QS is revoked, NMFS will send 
a letter to the QS permit owner with the QS permit in mid-December 
2015, describing the species and amount revoked. If any QS is 
redistributed, NMFS will describe this in a cover letter to all QS 
permit owners when QS permits are mailed in mid-December 2015.

Future Divestiture Procedures

    Similar divestiture measures may be needed in the future for a 
variety of reasons. For example, if a company changes their ownership 
structure and a person's QS increases over the control limits as a 
result, or if the IFQ system inadvertently allows a transfer that puts 
a QS permit owner over a limit. Accordingly, NMFS proposes to implement 
for future use, procedures similar to those outlined above. NMFS would 
notify a QS permit owner that he or she is over a QS or IBQ limit, the 
QS owner would have 30 days to abandon the excess quota for 
redistribution by NMFS, or within 30 days of the abandonment deadline, 
NMFS would revoke excess quota.

Classification

    Pursuant to sections 304(b)(1)(a) and 305(d) of the Magnuson-
Stevens Act, the NMFS Assistant Administrator has determined that this 
proposed rule is consistent with the Pacific Coast Groundfish Fishery 
Management Plan, other provisions of the Magnuson-Stevens Act, and 
other applicable law, subject to further consideration after public 
comment.
    NMFS is amending the supporting statement for the Pacific Coast 
groundfish trawl rationalization program permit and license information 
collection Office of Management and Business (OMB) Paperwork Reduction 
Act (PRA) requirements (number 0648-0620) to reflect the abandonment 
protocols described in the preamble to this proposed rule. NMFS 
requests any comments on the PRA abandonment protocol, including 
whether those minor paperwork protocols described above would 
unnecessarily burden any QS owners.
    The Office of Management and Budget has determined that this 
proposed rule is not significant for purposes of Executive Order 12866.
    As required by section 603 of the Regulatory Flexibility Act (RFA), 
an Initial Regulatory Flexibility Analysis (IRFA) was prepared. The 
IRFA describes the economic impact that this proposed rule, if adopted, 
would have on small entities. A summary of the analysis follows. A copy 
of this analysis is available from NMFS. Under the RFA, the term 
``small entities'' includes small businesses, small organizations, and 
small governmental jurisdictions. The Small Business Administration 
(SBA) has established size criteria for all major industry sectors in 
the US, including fish harvesting and fish processing businesses. A 
business primarily involved in finfish harvesting is classified as a 
small business if it is independently owned and operated, is not 
dominant in its field of operation (including its affiliates), and has 
combined annual receipts not in excess of $20.5 million for all its 
affiliated operations worldwide (13 CFR part 121; August 17, 2015). For 
commercial shellfish harvesters, the other qualifiers apply and the 
receipts threshold is $5.5 million. For other commercial marine 
harvesters, for-hire businesses, and marinas, the other qualifiers 
apply and the receipts threshold is $7.5 million. A business primarily 
involved in seafood processing is classified as a small business if it 
is independently owned and operated, is not dominant in its field of 
operation (including its affiliates), and has combined annual 
employment not in excess of 500 employees for all its affiliated 
operations worldwide. For seafood dealers/wholesalers, the other 
qualifiers apply and the employment threshold is 100 employees. A small 
organization is any not-for-profit enterprise which is independently 
owned and operated and is not dominant in its field. Small governmental 
jurisdictions are governments of cities, counties, towns, townships, 
villages, school districts, or special districts, with populations less 
than 50,000.
    At the time of initial implementation of the trawl rationalization 
program in 2011, NMFS issued QS to several QS permit owners in excess 
of one or more individual species control limits and/or the aggregate 
non-whiting control limit, based on their catch history during the 
qualifying years. Excess QS or IBQ was only meant to be held for a 
short adjustment period, and regulations require that QS permit owners 
must divest of any QS in excess of the accumulation limits by November 
30, 2015.
    The primary purpose of this rule is to describe two methods by 
which excess quota share will be divested, if QS holders do not or are 
unable to divest by the deadline. One method will require NMFS to 
proportionately reduce quota share in situations where a QS holder has 
excess QS for an individual species but has holding for that species 
across multiple species. Additionally, the proportional reduction 
method would be employed by NMFS for persons who have QS holdings that 
exceed the aggregate non-whiting control limit. A second method of 
divestiture would allow QS holders to abandon QS to NMFS by formally 
notifying NMFS of the IFQ species and amounts of QS they wish to divest 
to comply with the aggregate non-whiting control limit. In both cases, 
whether QS was revoked or abandoned, NMFS would redistribute excess QS 
to other QS holders proportionate to their current holdings, up to the 
accumulation limits for that species and to the aggregate non-whiting 
control limit.
    Under current regulations, quota share (QS) owners in the IFQ 
program must divest quota shareholdings that exceed individual 
accumulation limits by November 30, 2015. This proposed action would 
make minor procedural modifications, described above, to the program 
regulations to clarify how divestiture of excess quota share could 
occur. However, the regulations do not currently describe a method for 
NMFS to revoke shares in two situations: When a business entity or 
person is over an individual species control limit across several QS 
permits, and when a business entity or person is over the aggregate 
non-whiting control limit.
    There are two control limits that affect the amount of quota share 
(QS) or individual bycatch quota (IBQ) a person or entity can own:
    Control Limits for Individual Species: These are limits set for 
each species, and these are fairly straightforward to calculate. For 
example, the control limit for widow rockfish is 5.1%. If a permit 
owner has 6%, they are over the individual control limit and must 
divest 0.9% of widow rockfish. If an individual is an owner or partial 
owner across many QS permits, he or she must add up their shares across 
permits to see if they are under the limit. For example: If Joe Dragger 
has three QS permits: Permit A has 1% of widow rockfish, permit B has 
1%, and permit C has 2%, the total widow rockfish owned by this person 
would be 4%, and would be under the 5.1% control limit.
    Aggregate Non-Whiting Control Limit: This limit applies to 28 IFQ 
species or species groups--all except Pacific whiting and Pacific 
halibut. There is a total limit of 2.7% that a quota shareholder can 
own across the non-whiting IFQ species and species groups. This limit 
is more restrictive than the

[[Page 53097]]

sum of individual species limits. The limit is calculated by converting 
an entity's QS percentages into pounds based on the 2010 optimum yields 
(OYs), and then dividing those pounds by the total 2010 OY to convert 
it back to a percentage. For example, if an entity owned 3% of 
aggregate non-whiting shares, they would be over the limit by 0.3%. In 
this situation, the entity would need to divest of some shares (of the 
species and amounts of their choosing) in order to get under or equal 
to the 2.7% limit.
    This rule affects Quota Shareholders in the Pacific Groundfish 
Trawl Rationalization Fishery. For the years 2011 to 2014, the total 
IFQ fishery averaged harvests (including discards) of approximately 
107,000 mt annually and worth over $52 million in ex-vessel revenues. 
Ex-vessel revenues in 2014 were over $52 million with a harvest of 
approximately 117,217 tons. Note that the use of ex-vessel values does 
not take into account the wholesale or export value of the fishery or 
the costs of harvesting and processing groundfish into a finished 
product. The shorebased quota share fishery in 2014 supported 138 quota 
shareholders that held shares of 30 groundfish species or species 
groups. Quota pounds are allocated annually based on the sector 
allocations and the quota share percentages for each species owned by 
each permit owner. These quota pounds then need to be transferred to 
vessel accounts to be fished. In 2014, there were 144 IFQ vessel 
accounts. Vessels fishing under these accounts must carry observers or 
be participating under an Electronic Monitoring Exempted Fishing 
Permit. Fish must be landed at a first receiver that has a federal 
license and the required equipment for all offloads to be monitored and 
accounted for by a compliance monitor. There is an online electronic 
database that tracks the trading of quota shares between quota share 
accounts and the trading of quota pounds and catch and discard amounts 
in vessel accounts.
    NMFS considered various alternatives for this action. Under the 
status quo/No-Action alternative, NMFS would have no specific 
regulations in place that detail how NMFS will revoke excess QS when QS 
holders either cannot or do not divest by the November 30, 2015, 
deadline if a business or person that is over the individual control 
limit for an IFQ/IBQ specie(s) across multiple permits or when a 
business or person is over the aggregate non-whiting control limit.
    At the November 2014 Pacific Fishery Management Council Meeting, 
NMFS noted the upcoming divestiture deadline and proposed an 
alternative, where specific regulations would provide transparency to 
the process of revoking excess quota shares in these two situations 
(Agenda Item J.2.b, NMFS Report, November 2014). The NMFS alternative 
would provide quota share permit owners with explicit rules so that 
they would understand how excess QS would be revoked. These rules would 
aid business planning for current and future quota shareowners.
    The Pacific Fishery Management Council's industry advisory group, 
the Groundfish Advisory Panel (GAP), made suggestions that a better 
alternative should be shaped. At the April Council Meeting, the GAP 
made the following statement: ``The GAP reached consensus that 
forfeiture of quota in excess of caps should be allowed. If forfeiture 
were not allowed, it could result in a draconian outcome where NMFS 
takes species in excess pro rata resulting in loss of valuable species. 
Since there may be little to no demand for some species they may be 
impossible to divest through the market leaving forfeiture as the only 
realistic option. (Agenda Item E.6.a, Supplemental GAP Report, April 
2014).'' At the November 2014 Council meeting, the Groundfish Advisory 
Panel made the following suggestion: ``The GAP believes a non-punitive 
option that allows participants to ``abandon'' quota share should be 
developed. In some cases, there may be no market for certain IFQ 
species quota share that needs to be divested. If a participant is 
unable to transfer that quota share for reasons beyond his control, he 
should not be penalized. An option that allows the quota to be 
``abandoned'' to NMFS should be developed. (Agenda Item J.2.b, 
Supplemental GAP Report, November 2014) '' The Preferred option 
provides the ``abandonment option'' plus the application of the 
proportional reduction method in those instances where no abandonment 
occurs.
    The aggregate limit is based on 28 of the 30 IFQ species (all IFQ 
species except Pacific whiting and Pacific halibut). Current rules are 
silent on how NMFS should reduce a Quota Shareholder's portfolio of 
individual species quota shareholding if they are over the aggregate 
non-whiting control limit. Therefore, NMFS is seeking public comment on 
a proposal to determine which individual species are reduced should a 
quota share owner not take action to reduce his quota shares to get 
under the limit. Currently there are two ways in which a Quota 
shareholder can reduce his quota share holdings to get under the 
aggregate limit--either by sale or by gift to another quota 
shareholder. There are two mechanisms in this proposed rule for NMFS 
will determine the amounts of individual species quota shares that need 
to be reduced. First, NMFS will use written instructions as provided by 
the quota shareholder that indicates what individual species quota 
shares are to be abandoned to NMFS for redistribution to other quota 
shareholders. Absent written instructions, NMFS will reduce each 
individual species quota share holdings in proportion to the amount of 
the aggregate overage divided by the aggregate total owned until the 
aggregate limit is reached.
    This proposed rule would have no negative effects on the current 
industry or on the economy more generally. Current levels of harvest 
will be left unaffected. The only changes that might happen would be as 
a result of NMFS reducing quota shareholders who failed to divest their 
excess shares by November 30, 2015. Should QS holders have excess QS 
after November 30, 2015, NMFS will revoke the excess QS and 
redistribute these shares to other quota shareholders up to the control 
limit. These excess quota shares will be redistributed to all other 
Quota shareholders on a proportional basis in a manner that their 
individual and aggregate limits are not exceeded. There may be 
situations in the future where NMFS ownership information is not 
current and the QS database fails to block transfers that result in QS 
holders exceeding their limits. NMFS proposes to continue to use the 
same rules of reducing excess quota shares.
    Quota shareholders are required to report their ownership 
structure. Annually NMFS collects ownership information at the entity 
level (corporation, LLC, partnership, trust, nonprofits, publicly held 
company etc.) and the individual level. Ownership is reported down to a 
level of 2% ownership. Some quota shareholders hold as many as 13 QS 
permits. For a given QS permit, the ownership hierarchy may reach to 
the 7th level. All told, there are an estimated 435 unique entities 
involved. NMFS reviewed the ownership structure of all the QS permits 
to the lowest level of ownership. There are nine unique entities over 
one or more of the individual species control limits, and 3 or less 
unique entities over the aggregate non-whiting control limit.
    The main purpose of this rulemaking is to provide transparency. 
This rule shows not only how NMFS will calculate excess quota share 
holding but also how NMFS will proportionately reduce either for an 
individual species across multiple permits or in cases where someone 
does not abandon QS

[[Page 53098]]

and is over the aggregate limit. Even though there may not be negative 
effects on the industry, there may be effects on individual entities. 
For those that are over the individual species control limit, this rule 
provides transparency on how NMFS has calculated overages. Some quota 
shareholders may exceed the individual species limit as they are owners 
or part owners of multiple permits. This rule proposes the process for 
proportional reduction when a quota shareowner is over an individual 
limit across permits.
    For those entities that are over the aggregate non-whiting control 
limit, this rule provides transparency but also a process whereby the 
quota shareholder can direct NMFS on what quota share species should be 
reduced. With this option, the quota shareholder can direct NMFS to 
reduce his/her QS for low-valued species to get under the aggregate 
limit. This option mitigates the economic effect on those quota 
shareholders over the aggregate limit, should they not be able to sell 
or gift their shares to another entity.
    This process is as follows: QS owners that are over the control 
limit for aggregate non-whiting QS holdings may voluntarily abandon QS 
prior to the November 30, 2015, deadline by notifying NMFS in writing 
by November 15, 2015. The written request must include: QS permit 
number, IFQ species, and the QS percentage to be abandoned. Either the 
QS permit owner or an authorized representative of the QS permit owner 
would be required to sign the request. QS permit owners choosing to 
utilize the abandonment option would permanently relinquish any right 
to the abandoned QS, and NMFS would redistribute the abandoned QS 
percentages to all other QS owners in proportion to their QS holdings, 
based on ownership records as of January 1, 2016. No compensation would 
be due for any abandoned shares. If a quota shareholder does not 
request abandonment and provide NMFS with directions, NMFS will use the 
proportional reduction methods where proportional amounts of QS for all 
nonwhiting species are reduced to come into compliance with the 
aggregate limit. Some of those reductions will include valuable market 
and bycatch species.
    This process may provide some small benefits to the affected quota 
shareholders. At the moment, the nature of trading is such that NMFS 
does not have good estimates of the value of a quota share because 
there has been insufficient information to establish quota share 
prices. Many trades are multiple species trades, barter trades, or 
trades among closely affiliated entities. However, the economic effect 
of allowing those entities the option of giving NMFS instructions on 
how to dispose of their excess shares can be illustrated with ex-vessel 
prices. At the low end of the price range are whiting and arrowtooth 
flounder at about $0.10 a pound each. At the high end of the spectrum 
are petrale sole and sablefish at $1.13 and $1.98 per lb., 
respectively. In between these prices are prices for important bycatch 
species such as canary and yelloweye. Although the ex-vessel prices for 
these bycatch species may not be high, they are needed to support the 
target catch. Without this option, NMFS would proportionally revoke 
quota shares from all species regardless of value if a QS permit owner 
had not divested voluntarily by the November 30, 2015 deadline. The 
quota shareholder can direct NMFS to reduce their low-valued species to 
get under the aggregate limit. This option mitigates the economic 
effect on those quota shareholders over the aggregate limit, should 
they not be able to sell or gift their shares to another entity.
    NMFS is almost done building a sophisticated ownership database. In 
the future, when quota share trades are made, the online quota share 
trading system will have rules that will prevent trades that bring 
individuals who own QS bring an entity over the aggregate species limit 
under the first level of ownership. However, in the event that such 
trading is not prevented because of complex trading and ownership 
relationships, the rules and processes associated with this rulemaking 
will apply.
    There are 138 quota shareholders potentially directly affected by 
the aggregate species limits as reductions of excess shares will be 
taken from the quota share percentages listed on the permit. At the 
first level of ownership and based on affiliations, there are 96 unique 
businesses. Even if some first level owners are persons, they are 
considered businesses for purposes for determining the effects on small 
businesses. These QS holders must direct the quota pounds to various 
vessel accounts so that quota pounds can be fished. Quite frequently 
they also own limited entry permits, the vessels attached to these 
permits, or processing facilities. As compared to secondary owners or 
investors, first level quota shareholders are active participants in 
the fishery, and thus are businesses for purposes of this rule. Also, 
all quota shareholders when renewing their quota share permits must 
respond to questions of whether they consider themselves a large or 
small business. All 138 quota shareholders are businesses. Of these 
businesses, 15 are large. There are 9 entities affected by the control 
limit for one or more individual species. These entities are affected 
only in the sense that NMFS is showing how it will calculate excess 
shares across multiple permits. There are 3 or less affected entities 
by the aggregate species limit divestiture rules. When combined, there 
are 9 unique entities affected by this rule--7 small and 2 large.
    NMFS believes that are no significant alternatives to the proposed 
rule that accomplish the stated objectives of applicable statutes and 
that minimize any of the significant economic impacts of the proposed 
rule on small entities. There are no relevant Federal rules that may 
duplicate, overlap, or conflict with this action. NMFS believes this 
proposed rule would not adversely affect small entities. Nonetheless, 
NMFS has prepared this IRFA. Through the rulemaking process associated 
with this action, we are requesting comments on these conclusions.
    This proposed rule was developed after meaningful collaboration, 
through the Council process, with the tribal representative on the 
Council. The proposed regulations have no direct effect on the tribes.

List of Subjects in 50 CFR Part 660

    Fisheries, Fishing, Indian fisheries.

    Dated: August 26, 2015.
Eileen Sobeck,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

    For the reasons set out in the preamble, 50 CFR part 660 is 
proposed to be amended as follows:

PART 660--FISHERIES OFF WEST COAST STATES

0
1. The authority citation for part 660 continues 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
1. In Sec.  660.140, revise paragraph (d)(4)(v) to read as follows:


Sec.  660.140  Shorebased IFQ Program.

* * * * *
    (d) * * *
    (4) * * *
    (v) Divestiture. Accumulation limits will be calculated by first 
calculating the aggregate non-whiting QS limit and then the individual 
species QS or IBQ control limits. For QS permit owners (including any 
person who has ownership interest in the owner named on the permit) 
that are found to exceed the accumulation limits during the initial 
issuance of QS permits, an

[[Page 53099]]

adjustment period will be provided during which they will have to 
completely divest their QS or IBQ in excess of the accumulation limits. 
QS or IBQ will be issued for amounts in excess of accumulation limits 
only for owners of limited entry permits as of November 8, 2008, if 
such ownership has been registered with NMFS by November 30, 2008. The 
owner of any permit acquired after November 8, 2008, or if acquired 
earlier, not registered with NMFS by November 30, 2008, will only be 
eligible to receive an initial allocation for that permit of those QS 
or IBQ that are within the accumulation limits; any QS or IBQ in excess 
of the accumulation limits will be redistributed to the remainder of 
the initial recipients of QS or IBQ in proportion to each recipient's 
initial allocation of QS or IBQ for each species. Any person that 
qualifies for an initial allocation of QS or IBQ in excess of the 
accumulation limits will be allowed to receive that allocation, but 
must divest themselves of the QS (except for widow rockfish QS) or IBQ 
in excess of the accumulation limits by November 30, 2015, according to 
the procedure provided under paragraph (d)(4)(v)(A) of this section. If 
NMFS identifies that a QS permit owner exceeds the accumulation limits 
in 2016 or beyond, the QS permit owner must divest of the QS or IBQ in 
excess of the accumulation limits according to the procedure provided 
under paragraph (d)(4)(v)(B) of this section. Owners of QS or IBQ in 
excess of the control limits may receive and use the QP or IBQ pounds 
associated with that excess, up to the time their divestiture is 
completed.
    (A) Divestiture and redistribution process in 2015. QS permit 
owners in excess of the control limit for aggregate nonwhiting QS 
holdings may abandon QS to NMFS by November 15, 2015 using the 
procedure provided under paragraph (d)(4)(v)(C) of this section. QS 
permit owners must divest themselves of any QS or IBQ in excess of the 
accumulation limits by November 30, 2015, except for widow rockfish QS, 
which cannot be transferred as described in paragraph (d)(3)(ii)(B)(2) 
of this section. After the November 30, 2015 divestiture deadline, NMFS 
will revoke all QS or IBQ held by a person (including any person who 
has ownership interest in the owner names on the permit) in excess of 
the accumulation limits following the procedures specified under 
paragraphs (d)(4)(v)(D) through (G) of this section. All abandoned or 
revoked shares will be redistributed to all other QS permit owners in 
proportion to their QS or IBQ holdings on or about January 1, 2016, 
based on current ownership records, except that no person will be 
allocated an amount of QS or IBQ that would put that person over an 
accumulation limit.
    (B) Divestiture and redistribution process in 2016 and beyond. Any 
person owning or controlling QS or IBQ must comply with the 
accumulation limits, even if that control is not reflected in the 
ownership records available to NMFS as specified under paragraphs 
(d)(4)(i) and (iii) of this section. If NMFS identifies that a QS 
permit owner exceeds an accumulation limit in 2016 or beyond, NMFS will 
notify the QS permit owner that he or she has 60 days to divest of the 
excess QS or IBQ. In the case that a QS permit owner exceeds the 
control limit for aggregate nonwhiting QS holdings, the QS permit owner 
may abandon QS to NMFS within 30 days of the notification by NMFS, 
using the procedure provided under paragraph (d)(4)(v)(C) of this 
section. After the 60-day divestiture period, NMFS will revoke all QS 
or IBQ held by a person (including any person who has ownership 
interest in the owner names on the permit) in excess of the 
accumulation limits following the procedures specified under paragraphs 
(d)(4)(v)(D) through (G) of this section. All abandoned or revoked 
shares will be redistributed to all other QS permit owners in 
proportion to their QS or IBQ holdings on or about January 1 of the 
following calendar year, based on current ownership records, except 
that no person will be allocated an amount of QS or IBQ that would put 
that person over an accumulation limit.
    (C) Abandonment of QS. QS permit owners that are over the control 
limit for aggregate nonwhiting QS holdings may voluntarily abandon QS 
if they notify NMFS in writing by the applicable deadline specified 
under paragraph (d)(4)(v)(A) or (B) of this section. The written 
abandonment request must include the following information: QS permit 
number, IFQ species, and the QS percentage to be abandoned. Either the 
QS permit owner or an authorized representative of the QS permit owner 
must sign the request. QS permit owners choosing to utilize the 
abandonment option will permanently relinquish to NMFS any right to the 
abandoned QS, and the QS will be redistributed as described under 
paragraph (d)(4)(v)(A) or (B) of this section. No compensation will be 
due for any abandoned shares.
    (D) Revocation. NMFS will revoke QS from any QS permit owner who 
exceeds an accumulation limit after the divestiture deadline specified 
under paragraph (d)(4)(v)(A) or (B) of this section. NMFS will follow 
the revocation approach summarized in the following table and explained 
under paragraphs (d)(4)(v)(E) through (G) of this section:

------------------------------------------------------------------------
 If, after the divestiture deadline, a
     QS permit owner exceeds . . .                  Then . . .
------------------------------------------------------------------------
An individual species control limit      NMFS will revoke excess QS at
 (non-widow until reallocation is         the species level.
 complete) in one QS permit.
An individual species control limit      NMFS will revoke QS at the
 (non-widow until reallocation is         species level in proportion to
 complete) across multiple QS permits.    the amount the QS percentage
                                          from each permit contributes
                                          to the total QS percentage
                                          owned.
The control limit for aggregate          NMFS will revoke QS at the
 nonwhiting QS holdings.                  species level in proportion to
                                          the amount of the aggregate
                                          overage divided by the
                                          aggregate total owned. Until
                                          widow reallocation is
                                          complete, the proportion will
                                          be adjusted to hold widow QS
                                          at a constant level while
                                          bringing the aggregate
                                          percentage owned to 2.700%,
                                          using normal rounding rules.
------------------------------------------------------------------------

    (E) Revocation of excess QS or IBQ from one QS permit. In cases 
where a person has not divested to the control limits for individual 
species (non-widow until reallocation is complete) in one QS permit by 
the deadline specified under paragraph (d)(4)(v)(A) or (B) of this 
section, NMFS will revoke excess QS at the species level in order to 
get that person to the limits. NMFS will redistribute the revoked QS 
following the process specified in paragraph (d)(4)(v)(A) or (B) of 
this section. No compensation will be due for any revoked shares.
    (F) Revocation of excess QS or IBQ from multiple QS permits. In 
cases where a person has not divested to the control limits for 
individual species (non-widow QS until reallocation is

[[Page 53100]]

complete) across QS permits by the deadline specified under paragraph 
(d)(4)(v)(A) or (B) of this section, NMFS will revoke QS at the species 
level in proportion to the amount the QS percentage from each permit 
contributes to the total QS percentage owned. NMFS will redistribute 
the revoked QS following the process specified in paragraph 
(d)(4)(v)(A) or (B) of this section. No compensation will be due for 
any revoked shares.
    (G) Revocation of QS in excess of the control limit for aggregate 
nonwhiting QS holdings. In cases where a QS permit owner has not 
divested to the control limit for aggregate nonwhiting QS holdings by 
the deadline specified under paragraph (d)(4)(v)(A) or (B) of this 
section, NMFS will revoke QS at the species level in proportion to the 
amount of the aggregate overage divided by the aggregate total owned. 
Until widow reallocation is complete and transfer of widow is allowed, 
widow will continue to be included in the aggregate calculation, but 
the proportion will be adjusted to hold widow QS at a constant level 
while bringing the aggregate percentage owned to 2.700%, using normal 
rounding rules. NMFS will redistribute the revoked QS following the 
process in paragraph (d)(4)(v)(A) or (B) of this section. No 
compensation will be due for any revoked shares.
* * * * *
[FR Doc. 2015-21786 Filed 9-1-15; 8:45 am]
BILLING CODE 3510-22-P

$Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Proposed Rules 53091 divest to the 2.7 percent limit by control limits, they would have 5.377 percent of arrowtooth flounder November 30, 2015. In the event that a aggregate holdings of 5.840 percent, or and 7.097 percent of bocaccio, etc. (see QS permit owner has not divested to the 3.140 percent above the 2.7 percent Column F in Table 2) from this QS aggregate nonwhiting control limit by aggregate nonwhiting control limit (see permit owner in order to get them down November 30, 2015, current regulations Columns A–D in Table 2, below). NMFS to the 2.7% aggregate nonwhiting do not describe how QS should be would divide the aggregate overage control limit. This example is intended revoked. NMFS proposes to revoke QS (3.140 percent) by the total aggregate to illustrate the basis for the calculation, at the species level in proportion to the amount owned (5.840 percent), and but the revocation calculation will be amount of the aggregate overage divided multiply this value (53.767%) by the QS affected by the moratorium on widow by the aggregate total owned. For owned for each nonwhiting nonhalibut rockfish QS trading until widow is example, if a QS permit owner held the species to get the amount of QS to potentially reallocated, as described in maximum allowable amount of each revoke from each species (see Columns Table 2 below. IFQ species (nonwhiting, nonhalibut) E–H in Table 2, below). For example, in BILLING CODE 3510–22–P up to each of the individual species Table 2 below, NMFS would revoke asabaliauskas on DSK5VPTVN1PROD with PROPOSALS VerDate Sep<11>2014 18:00 Sep 01, 2015 Jkt 235001 PO 00000 Frm 00073 Fmt 4702 Sfmt 4702 E:\FR\FM\02SEP1.SGM 02SEP1$

$Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Proposed Rules 53093 percentage of widow rockfish, would included in the calculation except for take 0% away from widow and slightly need to divest of one or more of the widow rockfish (until reallocation more away from each of the other other non-widow species included in consideration and implementation is species included in the aggregate the calculation to get under the limit by completed). As described above, NMFS calculation in order to get the permit the deadline. The Council moved to would divide the amount of the owner down to the limit. Using the continue to include widow rockfish in aggregate overage by the aggregate total same example as above, but holding the aggregate calculation. owned, but hold the QS permit owner’s widow constant, the proportion used in Consequently, NMFS proposes to widow QS holdings constant. NMFS Table 3 to determine the QS to revoke continue to include widow rockfish in would then adjust the proportion used for each species changes slightly, from the aggregate nonwhiting control limit in order to determine how much QS to 53.767% in Table 2 to 54.023% in Table calculation (as described in the Council revoke of the other 27 species in the 3 to bring the permit owner to the motion), but if any QS permit owner has calculation to bring the permit owner’s 2.700% aggregate limit without revoking not divested to get under the aggregate holdings to the 2.700% limit. The limit by the divestiture deadline, NMFS proportion used would be the same for any widow rockfish QS. BILLING CODE 3510–22–P will revoke some of each IFQ species each species, as above, but adjusted to asabaliauskas on DSK5VPTVN1PROD with PROPOSALS VerDate Sep<11>2014 18:00 Sep 01, 2015 Jkt 235001 PO 00000 Frm 00075 Fmt 4702 Sfmt 4702 E:\FR\FM\02SEP1.SGM 02SEP1$

$53100 Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Proposed Rules complete) across QS permits by the QS holdings. In cases where a QS permit will be adjusted to hold widow QS at a deadline specified under paragraph owner has not divested to the control constant level while bringing the (d)(4)(v)(A) or (B) of this section, NMFS limit for aggregate nonwhiting QS aggregate percentage owned to 2.700%, will revoke QS at the species level in holdings by the deadline specified using normal rounding rules. NMFS proportion to the amount the QS under paragraph (d)(4)(v)(A) or (B) of will redistribute the revoked QS percentage from each permit contributes this section, NMFS will revoke QS at following the process in paragraph to the total QS percentage owned. the species level in proportion to the (d)(4)(v)(A) or (B) of this section. No NMFS will redistribute the revoked QS amount of the aggregate overage divided compensation will be due for any following the process specified in by the aggregate total owned. Until revoked shares. paragraph (d)(4)(v)(A) or (B) of this widow reallocation is complete and * * * * * section. No compensation will be due transfer of widow is allowed, widow [FR Doc. 2015–21786 Filed 9–1–15; 8:45 am] for any revoked shares. (G) Revocation of QS in excess of the will continue to be included in the BILLING CODE 3510–22–P control limit for aggregate nonwhiting aggregate calculation, but the proportion asabaliauskas on DSK5VPTVN1PROD with PROPOSALS VerDate Sep<11>2014 18:00 Sep 01, 2015 Jkt 235001 PO 00000 Frm 00082 Fmt 4702 Sfmt 9990 E:\FR\FM\02SEP1.SGM 02SEP1$

Document Created: 2018-02-26 10:10:34
Document Modified: 2018-02-26 10:10:34

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule, request for comments.
Dates		Comments on this proposed rule must be received on or before October 2, 2015.
Contact		Colby Brady (West Coast Region, NMFS), phone: 206-526-6117, and email: [email protected], or contact Sarah Towne (West Coast Region, NMFS), phone: 206-526-4140, and email: [email protected]
FR Citation		80 FR 53088
RIN Number		0648-BF11
CFR Associated		Fisheries; Fishing and Indian Fisheries

80 FR 53088 - Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; Pacific Coast Groundfish Fishery; Process for Divestiture of Excess Quota Shares in the Individual Fishing Quota Fishery

DEPARTMENT OF COMMERCENational Oceanic and Atmospheric Administration

Federal Register Volume 80, Issue 170 (September 2, 2015)

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration