80_FR_64154 80 FR 63950 - Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea and Aleutian Islands Crab Rationalization Program

80 FR 63950 - Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea and Aleutian Islands Crab Rationalization Program

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 80, Issue 204 (October 22, 2015)

Page Range63950-63956
FR Document2015-26844

NMFS issues a proposed rule to implement Amendment 44 to the Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner Crabs (FMP) and a regulatory amendment that would modify regulations governing the Crab Rationalization (CR) Program. The proposed rule would modify regulations to reflect that a Right of First Refusal (ROFR) may continue with the current ROFR holder or a new ROFR holder when processor quota share (PQS) is transferred and would require PQS holders to make specific certifications regarding ROFR contracts when annually applying for individual processor quota (IPQ) and when transferring PQS that are subject to a ROFR. In addition, this proposed rule would amend CR Program regulations to separate the annual individual fishing quota (IFQ)/IPQ application into two separate applications, and would require that crab harvesting cooperatives list the name of each member of the cooperative in its application for IFQ rather than provide NMFS with copies of each member's IFQ application. These actions are necessary to improve available information concerning transfer and use of PQS and IPQ subject to a ROFR, thereby enhancing the ability of eligible crab communities to retain their historical processing interests in the Bering Sea and Aleutian Islands (BSAI) crab fisheries, and to improve the administration of the CR Program. These actions are intended to promote the goals and objectives of the Magnuson-Stevens Fishery Conservation and Management Act, the FMP, and other applicable laws.

Federal Register, Volume 80 Issue 204 (Thursday, October 22, 2015)
[Federal Register Volume 80, Number 204 (Thursday, October 22, 2015)]
[Proposed Rules]
[Pages 63950-63956]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-26844]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 680

[Docket No. 150313268-5268-01]
RIN 0648-BE98


Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea 
and Aleutian Islands Crab Rationalization Program

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

ACTION: Proposed rule; request for comments.

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

SUMMARY: NMFS issues a proposed rule to implement Amendment 44 to the 
Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner 
Crabs (FMP) and a regulatory amendment that would modify regulations 
governing the Crab Rationalization (CR) Program. The proposed rule 
would modify regulations to reflect that a Right of First Refusal 
(ROFR) may continue with the current ROFR holder or a new ROFR holder 
when processor quota share (PQS) is transferred and would require PQS 
holders to make specific certifications regarding ROFR contracts when 
annually applying for individual processor quota (IPQ) and when 
transferring PQS that are subject to a ROFR. In addition, this proposed 
rule would amend CR Program regulations to separate the annual 
individual fishing quota (IFQ)/IPQ application into two separate 
applications, and would require that crab harvesting cooperatives list 
the name of each member of the cooperative in its application for IFQ 
rather than provide NMFS with copies of each member's IFQ application. 
These actions are necessary to improve available information concerning 
transfer and use of PQS and IPQ subject to a ROFR, thereby enhancing 
the ability of eligible crab communities to retain their historical 
processing interests in the Bering Sea and Aleutian Islands (BSAI) crab 
fisheries, and to improve the administration of the CR Program. These 
actions are intended to promote the goals and objectives of the 
Magnuson-Stevens Fishery Conservation and Management Act, the FMP, and 
other applicable laws.

DATES: Submit comments on or before November 23, 2015.

ADDRESSES: You may submit comments, identified by NOAA-NMFS-2013-0057, 
by any one 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-2013-0057, click the 
``Comment Now!'' icon, complete the required fields, and enter or 
attach your comments.
     Mail: Submit written comments to Glenn Merrill, Assistant 
Regional Administrator, Sustainable Fisheries Division, Alaska Region 
NMFS, Attn: Ellen Sebastian. Mail comments to P.O. Box 21668, Juneau, 
AK 99802-1668.
    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), 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).
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
rule may be submitted to NMFS at the above address; emailed to 
[email protected] or faxed to 202-395-7285.
    Electronic copies of Amendment 44 to the FMP, the Regulatory Impact 
Review (RIR), the Initial Regulatory Flexibility Analysis (IRFA), and 
the Categorical Exclusion prepared for this action may be obtained from 
http://www.regulations.gov or from the Alaska Region Web site at http://alaskafisheries.noaa.gov. The Environmental Impact Statement (EIS), 
RIR, and Social Impact Assessment prepared for the CR Program are 
available from the NMFS Alaska Region Web site at http://alaskafisheries.noaa.gov.

FOR FURTHER INFORMATION CONTACT: Rachel Baker, 907-586-7228.

SUPPLEMENTARY INFORMATION: NMFS manages the king and Tanner crab 
fisheries in the exclusive economic zone of the Bering Sea and Aleutian 
Islands (BSAI) under the FMP. The North Pacific Fishery Management 
Council (Council) prepared the FMP under the Magnuson-Stevens Fishery 
Conservation and Management Act (Magnuson-Stevens Act), 16 U.S. C. 1801 
et seq. Regulations governing U.S. fisheries and implementing the FMP 
appear at 50 CFR part 680.
    NMFS published the final rule to implement the Crab Rationalization 
(CR) Program on March 2, 2005 (70 FR 10174). Fishing under the CR 
Program started with the 2005/2006 crab fishing year.
    The Council submitted Amendment 44 for review by the Secretary of 
Commerce. A notice of availability of Amendment 44 was published in the 
Federal Register on October 9, 2015 (80 FR 61150), with comments 
invited through December 8, 2015. All relevant written comments 
received by that time, whether specifically directed to Amendment 44, 
or to the proposed rule, will be considered in the approval/disapproval 
decision on Amendment 44.
    The CR Program is a catch share program for nine BSAI crab 
fisheries that allocates those resources among harvesters, processors, 
and coastal communities. Under the CR Program, NMFS issued quota share 
(QS) to eligible harvesters based on their historical participation 
during a set of qualifying years in one or more of the nine CR Program 
fisheries. QS is an exclusive, revocable privilege allowing the holder 
to harvest a specific percentage of the annual total allowable catch 
(TAC) in a CR Program fishery.
    A QS holder's annual allocation, called individual fishing quota 
(IFQ), is expressed in pounds and is based on the amount of QS held in 
relation to the total QS pool for that fishery. NMFS issues IFQ in 
three classes: Class A IFQ, Class B IFQ, and Class C IFQ. Three percent 
of IFQ is issued as Class C IFQ for captains and crew. Of the remaining 
IFQ, 90 percent is issued as Class A IFQ and 10 percent is issued as 
Class B IFQ.
    NMFS issued processor quota share (PQS) to qualified individuals 
and entities based on processing activities in CR Program fisheries 
during a period of qualifying years. PQS is an exclusive, revocable 
privilege to receive deliveries of a fixed percentage of the annual TAC 
from a CR Program fishery. A PQS holder's annual allocation is known as 
individual processing quota (IPQ). NMFS issues IPQ at a one-to-one 
correlation with the amount of Class A

[[Page 63951]]

IFQ issued for each CR Program fishery. Class A IFQ must be delivered 
to a processor holding a matching amount of IPQ; Class C IFQ and Class 
B IFQ may be delivered to any registered crab receiver.

Right of First Refusal

    The CR Program includes several provisions intended to protect 
specific communities that had historically been active in the 
processing of king and Tanner crab from adverse impacts that could 
result from the CR Program. The CR Program established eligibility 
criteria and regulations at 50 CFR 680.2 identified the nine 
communities that satisfy the eligibility criteria: Adak, Akutan, Dutch 
Harbor, Kodiak, King Cove, False Pass, St. George, St. Paul, and Port 
Moller. These communities are referred to as ``eligible crab 
communities'' for purposes of the CR Program's community protection 
measures. Additional detail on the rationale and criteria used to 
establish the eligible crab communities can be found in the final rule 
implementing the CR Program (March 2, 2005, 70 FR 10174). Additional 
information on the eligible crab communities is provided in Section 
3.1.4 of the RIR/IRFA prepared for this action.
    With the exception of Adak, the CR Program provides eligible crab 
communities, or ECCs, with a right of first refusal (ROFR) on certain 
PQS and IPQ transfers. A ROFR provides an eligible crab community with 
the right to intervene in the sale (i.e., transfer) of PQS, IPQ, and 
``other goods'' (i.e., assets) associated with that community under 
specific conditions. The regulations at Sec.  680.41(l) require an 
eligible crab community to identify an entity to represent it for 
purposes of ROFR. The eight eligible crab communities that have a ROFR, 
and their representative entities are listed in Table 9 of the RIR/
IRFA. The eligible crab community of Adak is not provided a ROFR for 
PQS or IPQ associated with that community because the CR Program 
incorporates other provisions to protect Adak. These provisions are 
described in the final rule implementing the CR Program (March 2, 2005, 
70 FR 10174).
    Of the eight eligible crab communities, four are community 
development quota (CDQ) communities, and four are non-CDQ communities. 
In the case of eligible crab communities that are also CDQ communities, 
the local CDQ group is the entity that can exercise the ROFR on behalf 
of the community (see Sec.  680.41(l)(2)(i)). For the other four non-
CDQ eligible crab communities, regulations authorize the governing 
bodies of these eligible crab communities to identify the entity that 
can exercise the ROFR on behalf of the community (see Sec.  
680.41(l)(2)(ii)).
    PQS and IPQ from the Bristol Bay red king crab, Bering Sea snow 
crab, Eastern Aleutian Islands golden king crab, St. Matthew Island 
blue king crab, and Pribilof red and blue king crab fisheries are 
subject to a ROFR. Section 3.1.3 of the RIR/IRFA describes the specific 
amounts of PQS and IPQ that were, and are, subject to ROFR.
    Under the ROFR, an eligible crab community entity is provided an 
opportunity to meet the same terms and conditions being offered to a 
proposed buyer of a proposed sale of PQS or IPQ. If an eligible crab 
community entity can meet the terms and conditions of a proposed sale, 
then the eligible crab community entity receives by transfer the PQS, 
IPQ, and any other goods instead of the proposed buyer. For a more 
detailed summary of ROFR, see section 3.1.3 of the RIR/IRFA.
    The CR Program included a ROFR to provide eligible crab communities 
an opportunity to retain crab PQS, IPQ, and other goods before they are 
transferred to another buyer who could then choose to use that PQS, 
IPQ, and other goods outside of the community. Such a transfer could 
adversely affect the economic stability of the community. The ROFR is 
intended to strike a balance between the interest of communities 
historically reliant on crab processing to retain that processing 
capacity within their communities, and the interest of PQS or IPQ 
holders to be able to engage in open market transfers of PQS, IPQ, and 
other goods.

ROFR Contract Terms

    The ROFR is administered under the CR Program through contractual 
arrangements between eligible crab community entities and PQS/IPQ 
holders. Persons who hold PQS/IPQ that is subject to a ROFR must enter 
into a contract with the eligible crab community entity eligible to 
exercise a ROFR for those PQS/IPQ shares. The terms required in a ROFR 
contract between an eligible crab community entity and PQS/IPQ holder 
were established with implementation of the CR Program and are set 
forth in Chapter 11 of the FMP. ROFR applies to any proposed sale of 
PQS, and sales of IPQ, if more than 20 percent of the PQS holders' 
community based IPQ in the fishery were processed outside of the 
community by another company (intra-company transfers within a region 
are excluded) in three of the preceding five years. Intra-company 
transfers within a region and transfers of PQS for continued use in the 
community are exempt from (i.e., do not trigger) the ROFR. The ROFR 
contract terms require that in order to complete a transfer under a 
ROFR, an eligible crab community entity must meet ``the same terms and 
conditions of the underlying [proposed sale] agreement and will include 
all processing shares and other goods included in that agreement.''
    The ROFR contract terms also state that all terms of any ROFR and 
contract entered into related to ROFR will be enforced through civil 
law. Additional details on the rationale for the civil enforcement of 
the terms in a ROFR contract are provided in the EIS, RIR, and Social 
Impact Assessment prepared for the CR Program, and the final rule 
implementing the CR Program (March 2, 2005, 70 FR 10174).
    An eligible crab community entity must meet two important 
requirements to complete a ROFR and receive PQS, IPQ, or other goods 
associated with a proposed sale. The eligible crab community entity 
must: (1) Exercise its ROFR, that is, provide a clear commitment to 
complete a purchase agreement within a specific time frame; and (2) 
perform under the ROFR, that is, meet all of the terms and conditions 
of the underlying agreement for the proposed sale within a specific 
time frame.
    To exercise the ROFR, an eligible crab community entity must 
provide the seller of PQS or IPQ subject to a ROFR with notice of its 
intent to exercise the ROFR and earnest money in the amount of 10 
percent of the contract amount or $500,000, whichever is less, within 
60 days of notice of a sale and receipt of the contract defining the 
sale's terms. To perform the ROFR, the eligible crab community entity 
must meet the terms and conditions of the proposed sale (i.e., complete 
the sale) within 120 days, or within the time specified in the proposed 
sales contract, whichever is longer. If an eligible crab community 
entity does not exercise its ROFR, or it cannot perform under the ROFR 
contract, then the open market sale may proceed.

Revising ROFR Contract Terms

    The CR Program, including the ROFR contract terms, was implemented 
under authority provided at section 313(j)(1) of the Magnuson-Stevens 
Act. Section 313(j)(3) states that after initial implementation of the 
CR Program, the Council may submit and the Secretary may implement 
changes to conservation and management measures for crab fisheries of 
the Bering Sea and Aleutian Islands to achieve on a continuing basis 
the purposes identified by the Council. This provision allows the 
Council to

[[Page 63952]]

recommend, and NMFS to adopt, revisions to the required terms of a ROFR 
contract. Proposed Amendment 44 to the FMP would modify several of the 
existing ROFR contract terms and add two additional contract terms. For 
reasons provided in the notice of availability for Amendment 44 (80 FR 
61150, October 9, 2015) and this proposed rule, the Council and NMFS 
have determined that the modifications to the ROFR contract terms and 
regulations governing ROFR that would be made by proposed Amendment 44 
and this proposed rule improve the achievement of the purposes of ROFR 
that were identified by the Council when it adopted the CR Program.
    As noted earlier, the terms in a ROFR contract are enforced through 
civil contract law rather than through regulations implemented by NMFS. 
Amendment 44 to the FMP and this proposed rule would not change the 
civil enforcement of the terms in a ROFR contract. The proposed rule 
would revise regulations to implement Amendment 44 and to amend the CR 
Program. Regulations implemented by NMFS are enforced by NMFS. 
Therefore, the regulatory changes in this proposed rule (i.e., measures 
that are more than solely amendments to the FMP modifying the terms in 
a ROFR contract) would be subject to enforcement by NMFS.

Need for Action

    In developing the CR Program, the Council and NMFS recognized the 
unique historical relationship between eligible crab communities and 
processors associated with those communities, and established ROFR 
provisions to provide opportunities for eligible crab communities to be 
notified and intervene in sales of crab processing assets important to 
those communities. However, with experience gained from implementation, 
the Council has determined that some of the ROFR contract terms and the 
lack of regulatory requirements to ensure adequate notification and 
tracking of PQS and IPQ transfers are limiting the effectiveness of the 
ROFR provisions.
    Stakeholders, including representatives from the eight eligible 
crab community entities that can exercise a ROFR, noted several 
concerns with ROFR contract terms that could hinder an eligible crab 
community entity from effectively exercising and performing under a 
ROFR. Eligible crab community entities also supported additional 
regulatory provisions to ensure proper notification of proposed sales. 
Holders of PQS/IPQ subject to a ROFR concurred that several changes to 
the ROFR contract terms and notification requirements could improve the 
ability of eligible crab community entities to exercise and perform 
under a ROFR without unduly limiting open market transfers of PQS, IPQ, 
and other goods. The Council reviewed and analyzed these concerns in a 
series of documents that have been consolidated under the RIR/IRFA 
prepared for Amendment 44 and this proposed rule (see ADDRESSES). The 
Council recommended the provisions comprising Amendment 44 and this 
proposed rule at its February 2013 and its October 2014 meetings.
    Proposed Amendment 44 and this proposed rule are intended to 
address four categories of concern that stakeholders have for the 
existing ROFR contract terms and regulations implementing ROFR. These 
are: (1) Inadequate time for an eligible crab community entity to 
exercise and perform under a ROFR; (2) ROFR contract terms that allow a 
ROFR to lapse; (3) ROFR contract terms that do not allow an eligible 
crab community entity and a PQS/IPQ holder to mutually agree to the 
specific assets subject to a ROFR and to exclude ``other goods'' if 
desired; and (4) the lack of verification that proper notification and 
reporting of proposed sales between PQS/IPQ holders and eligible crab 
community entities has occurred.

Summary of Proposed Amendment 44

    The specific provisions of proposed Amendment 44 are described in 
detail in the Notice of Availability published by NMFS on October 9, 
2015 (80 FR 61150). The following briefly summarizes the provisions of 
proposed Amendment 44.
    If approved by NMFS, Amendment 44 would modify the ROFR contract 
term specifying the amount of time to exercise and perform under a 
ROFR. Amendment 44 would increase the time allowed for an eligible crab 
community entity to exercise a ROFR from 60 days to 90 days from 
receipt of the sales contract. This modification would also increase 
the time allowed for an eligible crab community entity to perform under 
the ROFR from 120 days to 150 days. The time period to exercise and the 
time period to perform under a ROFR begin on the date of receipt of the 
sales contract by the eligible crab community entity and run 
concurrently. The extension of both time periods is intended to help 
accommodate eligible crab community entities when deciding whether to 
exercise their ROFR, but also continue to recognize that time may be of 
the essence for a PQS holder or buyer under a contract.
    Amendment 44 would remove the ROFR contract term that allows a ROFR 
to lapse if the IPQ derived from the PQS subject to ROFR was processed 
outside the community of origin for a period of three consecutive 
years. This amendment would allow a ROFR to remain in effect for PQS 
subject to a ROFR regardless of the location in which the IPQ 
associated with that PQS was processed. However, if approved, Amendment 
44 would not reinstate a ROFR that lapsed prior to implementation of 
Amendment 44. The Council determined, and NMFS agrees, that this 
amendment would strengthen the connection between PQS and the community 
from which it originated, by maintaining the right regardless of 
whether the yielded IPQ is used outside the community for extended 
periods. By maintaining the right despite use of IPQ outside of the 
community, the eligible crab community entity and the community of 
origin that it represents would maintain an interest in the PQS into 
the future.
    Amendment 44 also would remove the ROFR contract term stating that 
a ROFR will lapse if an eligible crab community entity fails to 
exercise its ROFR after it is triggered by a transfer of PQS and 
replace it with a ROFR contract term that would require the recipient 
of a PQS transfer to enter into a new ROFR contract with an eligible 
crab community entity of its choosing in the designated region of the 
PQS. This amendment would ensure that eligible crab community entities 
within the designated region of the PQS retain a ROFR on that PQS even 
if the original eligible crab community entity chooses not to exercise 
a ROFR.
    ROFR contract terms currently require that the ROFR apply to all 
terms and conditions of the underlying sale agreement, including all 
processing shares and other goods included in the agreement. Amendment 
44 would revise this ROFR contract term to specify that, ``Any right of 
first refusal must be on the same terms and conditions of the 
underlying agreement and will include all processing shares and other 
goods included in this agreement, or to any subset of those assets, as 
otherwise agreed to by the PQS holder and the community entity.'' The 
proposed addition of the last clause in this ROFR contract term would 
allow a PQS holder and an eligible crab community entity to negotiate 
what assets may be subject to a ROFR. This would provide PQS holders 
and eligible crab community entities with more flexibility compared to 
the status quo. For example, it would allow an eligible crab community 
entity to reach an agreement with the PQS

[[Page 63953]]

holder that the ROFR would only apply to the PQS, and not to any other 
goods associated with a proposed sale.
    Amendment 44 also would establish two new ROFR contract terms. 
First, Amendment 44 would add a ROFR contract term that requires a PQS 
holder to notify the eligible crab community entity of any proposed 
transfer of IPQ or PQS subject to ROFR, regardless of whether the PQS 
holder believes the proposed transfer triggers the right. Second, 
Amendment 44 would add a ROFR contract term that requires a PQS holder 
to annually notify the eligible crab community entity of the location 
at which IPQ derived from PQS subject to a ROFR was processed and 
whether that IPQ was processed by the PQS holder. Both of these 
proposed notifications would provide the eligible crab community 
entities with more information on what is occurring with the PQS for 
which they hold a ROFR.
    If Amendment 44 is approved, all ROFR contracts would be required 
to contain the newly revised ROFR contract terms. Because Amendment 44 
would modify the terms required to be included in a ROFR contract, a 
PQS/IPQ holder and an eligible crab community entity would need to 
establish a new or revised ROFR contract to contain all of these terms.

The Proposed Rule

    This proposed rule contains three actions. The first action would 
implement those aspects of Amendment 44 that require implementing 
regulations. The second action would implement the regulatory amendment 
adopted by the Council. The third action would implement minor 
administrative changes to the CR Program regulations to improve the 
application and reporting practices for participants in the CR Program. 
The following paragraphs provide additional detail on these proposed 
actions.

Action 1: Regulatory Revisions Needed To Implement Amendment 44

    Most of the provisions of Amendment 44 only modify the ROFR 
contract terms contained in the FMP and do not require adjustments or 
additions to regulations implementing ROFR at 50 CFR part 680. However, 
one provision of proposed Amendment 44 requires modification to 
regulations at Sec.  680.41(i)(8) governing transfers of PQS subject to 
ROFR.
    As explained above, a ROFR would no longer lapse if an eligible 
crab community entity fails to exercise its ROFR after the ROFR is 
triggered by a transfer of PQS under proposed Amendment 44. Instead, 
proposed Amendment 44 would require the recipient of a PQS transfer, or 
buyer, to enter into a new ROFR contract with an eligible crab 
community entity of its choosing in the designated region of the PQS. 
The buyer could enter into a new ROFR contract with the eligible crab 
community entity that held the ROFR with the seller, or the buyer could 
enter into a new ROFR contract with an eligible crab community entity 
that represents an eligible crab community within the region for which 
the PQS is designated. This provision of Amendment 44 would ensure that 
one eligible crab community entity within the designated region of the 
PQS retains a ROFR on that PQS even if the original eligible crab 
community entity does not exercise its ROFR. This provision is intended 
to strengthen the ROFR program by maintaining a link between PQS and 
eligible crab communities in perpetuity. In addition, the proposed 
provision may provide the original eligible crab community entity that 
is not able to exercise a ROFR with another opportunity to use ROFR at 
some point in the future, should it be triggered again through a 
proposed sale of the PQS.
    Because the buyer's choice of an eligible crab community entity 
would occur at the time of transfer of the PQS, regulations at Sec.  
680.41(i)(8) governing transfer of PQS would need to be modified to 
require the seller to certify that the eligible crab community entity 
did not exercise its ROFR within the time provided and to require the 
buyer to certify that the buyer has entered into a ROFR contract with 
an eligible crab community entity in the designated region of the PQS. 
These proposed changes to Sec.  680.41(i)(8) would not alter the 
current requirement that NMFS wait 10 days before approving a transfer 
of PQS subject to ROFR when such transfer triggers the ROFR.

Action 2: Regulatory Revisions Needed To Implement the Regulatory 
Amendment

    At the time it took action on Amendment 44, the Council also 
recommended that holders of PQS/IPQ subject to ROFR provide NMFS with 
specific certifications regarding notice to ROFR holders and the 
existence of ROFR contracts when submitting an application to transfer 
PQS or when annually applying for IPQ. The Council's recommendations 
for certifications to NMFS do not require modifications to the FMP but 
require modifications to the regulations implementing ROFR in 50 CFR 
part 680.
    First, this proposed rule would modify regulations at Sec.  
680.4(f)(2) to require an applicant, as part of the Application for 
Annual Crab IPQ Permit, to certify to NMFS that a ROFR contract that 
includes the required ROFR contract terms specified in Chapter 11 of 
the FMP exists between the applicant and the eligible crab community 
entity that holds the ROFR for that PQS/IPQ. If Amendment 44 is 
approved, all ROFR contracts would be required to contain the newly 
revised ROFR contract terms. Because Amendment 44 would modify the 
terms required to be included in a ROFR contract, a PQS/IPQ holder and 
an eligible crab community entity would need to establish a new or 
revised ROFR contract to contain all of these terms and the PQS/IPQ 
holder would need to certify annually that a ROFR contract was in 
place. By including this certification as part of the annual 
application for IPQ, NMFS realizes that if an applicant for IPQ is 
unable to establish a revised ROFR contract with an eligible crab 
community entity and provide that confirmation to NMFS in the annual 
application for crab IPQ permit prior to the date that application is 
due, then NMFS would consider the application to be incomplete. In that 
case, NMFS would withhold issuance of IPQ until this requirement is 
met.
    Second, this proposed rule would modify regulations at Sec.  
680.41(i)(8) and (9) to require specific certifications by the seller 
or the buyer when transferring PQS subject to ROFR. If a transfer of 
PQS triggers a ROFR, regulations at Sec.  680.41(i)(8) would require 
the seller to certify, as part of the application to transfer PQS, that 
the PQS holder notified the eligible crab community entity holding the 
ROFR for that PQS of the proposed transfer at least 90 days prior to 
the date of the transfer application, and that the eligible crab 
community entity did not exercise its ROFR during that period. If a 
transfer of PQS does not trigger a ROFR, regulations at Sec.  
680.41(i)(9) would be modified to require the buyer and the eligible 
crab community entity to certify, as part of the application to 
transfer PQS, either that the eligible crab community entity wishes to 
permanently waive ROFR for the PQS or that the buyer and the eligible 
crab community entity completed a ROFR contract that includes the ROFR 
contract terms specified in Chapter 11 of the FMP. NMFS would not 
complete a transfer of PQS until these requirements are met.
    The Council determined and NMFS agrees that these additional notice 
requirements would directly address the concerns of eligible crab 
community entities and PQS/IPQ holders that there

[[Page 63954]]

may not be adequate information sharing between the parties subject to 
a ROFR contract. These notices would ensure that all parties have 
accurate and up-to-date information concerning the use of PQS and IPQ, 
as well as any sales of PQS. For additional detail on these proposed 
notice requirements, see section 3.2.5 of the RIR/IRFA.

Action 3: Administrative Changes

    NMFS proposes two minor administrative changes to CR Program 
regulations. First, NMFS proposes revising regulations at Sec.  
680.4(d) to separate the current combined application for IFQ/IPQ into 
two separate applications, an application for IFQ and an application 
for IPQ. This proposed revision is intended to reduce confusion among 
applicants who sometimes misunderstand the requirements for the 
combined IFQ/IPQ application and would improve the ability of 
applicants to correctly provide the necessary information. This 
revision would allow applicants for IFQ to use an application form 
specific to IFQ, and applicants for IPQ to use an application form 
specific to IPQ. Except for the proposed modification to the annual IPQ 
application described above in the ``Action 2: Regulatory Revisions 
Needed To Implement the Regulatory Amendment'' section, the proposed 
changes would not modify the specific information currently required of 
IFQ or IPQ applicants, but would change the application form required 
to be submitted and the format of the application form.
    Second, NMFS proposes revisions to reporting requirements for crab 
harvesting cooperatives at Sec.  680.21(b)(1). Currently, regulations 
at Sec.  680.4(f) require each member of a crab harvesting cooperative 
to submit to NMFS an Application for Annual Crab IFQ Permit, and 
regulations at Sec.  680.21(b) require a crab harvesting cooperative to 
submit to NMFS a copy of each member's Application for Annual Crab IFQ 
Permit along with the cooperative's Application for Annual Crab 
Harvesting Cooperative IFQ Permit. NMFS has determined that while the 
identification of cooperative members is critical to the cooperative 
application process, NMFS can obtain this information through less 
burdensome means. Therefore, NMFS proposes revising the regulations at 
Sec.  680.21(b)(1) so that a crab harvesting cooperative would be 
responsible only for submitting a list of the names of each cooperative 
member with the cooperative's annual IFQ application. Under the 
proposed rule, crab harvesting cooperatives would no longer be required 
to submit copies of each member's annual IFQ application. NMFS notes 
that the proposed rule does not modify the requirements at Sec.  
680.4(f) and each cooperative member would continue to be responsible 
for submitting to NMFS a complete annual IFQ permit application by the 
deadline of June 15. This proposed change would provide NMFS with 
necessary information while reducing duplicative reporting requirements 
for crab harvesting cooperatives.

Classification

    Pursuant to section 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 FMP, other provisions of the Magnuson-
Stevens Act, and other applicable law, subject to further consideration 
of comments received during the public comment period.
    This proposed rule has been determined to be not significant for 
the purposes of Executive Order 12866.

Initial Regulatory Flexibility Analysis (IRFA)

    An IRFA was prepared, as required by section 603 of the Regulatory 
Flexibility Act. The IRFA describes the economic impact this proposed 
rule, if adopted, would have on small entities. Copies of the RIR/IRFA 
prepared for this proposed rule are available from NMFS (see 
ADDRESSES).
    The IRFA for this proposed action describes the action, why this 
action is being proposed, the objectives and legal basis for the 
proposed rule, the type and number of small entities to which the 
proposed rule would apply, and the projected reporting, recordkeeping, 
and other compliance requirements of the proposed rule. It also 
identifies any overlapping, duplicative, or conflicting Federal rules 
and describes any significant alternatives to the proposed rule that 
would accomplish the stated objectives of the Magnuson-Stevens Act and 
other applicable statues and that would minimize any significant 
adverse economic impact of the proposed rule on small entities. The 
description of the proposed action, its purpose, and its legal basis 
are described in the preamble and are not repeated here. The IRFA 
prepared for this proposed rule incorporates by reference an extensive 
RIR/FRFA prepared for Amendments 18 and 19 to the FMP that detail the 
impacts of the CR Program on small entities.
    The proposed rule includes three separate actions. Action 1 
includes regulatory revisions to implement Amendment 44. The proposed 
revisions would require the buyer of PQS to certify to NMFS that the 
buyer has entered into a ROFR contract with an eligible crab community 
entity in the designated region of the PQS.
    Action 2 would require PQS holders to provide two notifications to 
NMFS regarding the status of their ROFR. The first certification would 
require PQS holders applying to receive IPQ to attest that a ROFR 
contract that includes the required ROFR contract terms exists between 
the applicant and the eligible crab community entity that holds the 
ROFR for that PQS/IPQ. The second certification would require the 
seller of PQS to certify to NMFS that the seller provided the eligible 
crab community entity with notice of the proposed sale at least 90 days 
prior to the date of the transfer application and that the entity did 
not exercise ROFR during that time period. These notifications would be 
incorporated into the Application for Annual Crab IPQ and the 
Application for Transfer of Crab QS or PQS, respectively.
    The small entities that would be directly regulated by Action 1 and 
Action 2 are persons that hold PQS or IPQ under the CR Program. 
Currently, 21 entities hold PQS or IPQ subject (now or previously) to 
ROFR. Estimates of the number of large entities were made, based on 
available records of revenue, employment information, and known 
affiliations among these entities. Of these 21 entities, 10 are 
estimated to be large entities and 11 are deemed to be small entities. 
It is possible that additional entities could be directly regulated 
under the proposed rule if an entity that does not already hold PQS 
receives PQS by transfer. The new PQS holder would be directly 
regulated because the entity would be required to certify to NMFS that 
they have entered into a ROFR contract. It is not possible to estimate 
whether these new PQS holders would be small entities for purposes of 
this proposed rule.
    Action 3 would make minor administrative changes to clarify permit 
application procedures for IFQ holders and IPQ holders, and reduce 
reporting requirements for crab cooperatives that are directly 
regulated under the CR Program. Currently, there are 10 crab harvesting 
cooperative entities. Based on available records of revenue, and known 
affiliations among these entities, 4 of the entities are estimated to 
be large entities and 6 are deemed to be small entities. Because these 
changes would reduce the reporting burden for all crab harvesting 
cooperatives, Action 3 would not have an adverse impact on directly 
regulated small entities.

[[Page 63955]]

    The certifications in the proposed rule are straightforward, simple 
and are provided annually or at the time of a transfer of shares as 
part of applications. While the new notification requirements would add 
administrative reporting requirements for 11 PQS/IPQ holders that are 
small entities, the Council determined that the administrative burden 
associated with the notification requirements would be minimal and 
would not negatively impact these entities.

Duplicate, Overlapping, or Conflicting Federal Rules

    NMFS has not identified any duplication, overlap, or conflict 
between this proposed action and existing Federal rules.

Recordkeeping and Reporting Requirements

    The recordkeeping and reporting requirements would be increased 
slightly under this proposed rule. This proposed rule would include new 
reporting requirements for PQS/IPQ holders. The PQS/IPQ holders would 
be required to certify to NMFS that a current ROFR contract is in place 
when applying for IPQ and notify NMFS of the status of the ROFR when 
transferring PQS or IPQ. These additional reporting requirements would 
be relatively straightforward and simple, and NMFS proposes including 
these certifications requirements into the Application for Annual Crab 
IPQ and the Application for Transfer of Crab PQS that are already 
required for directly regulated entities to receive IPQ or to transfer 
PQS or IPQ. Therefore, the additional recordkeeping and reporting 
requirements associated with the proposed rule would be minimal.

Collection-of-Information Requirements

    This proposed rule contains collection-of-information requirements 
subject to review and approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act (PRA). These requirements have 
been submitted to OMB for approval under OMB Control Number 0648-0514. 
Public reporting burden is estimated to average per response: 1.5 hours 
for the Annual Application for Crab IFQ Permit; 1.5 hours for the 
Annual Application for Crab IPQ Permit; 1 hour for the Application for 
an Annual Crab Harvesting Cooperative IFQ permit; and 2 hours for 
Application to Transfer Crab QS or PQS. These estimates include the 
time for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection of information.
    Public comment is sought regarding whether this proposed collection 
of information is necessary for the proper performance of the functions 
of the agency, including whether the information shall have practical 
utility; the accuracy of the burden statement; ways to enhance quality, 
utility, and clarity of the information to be collected; and ways to 
minimize the burden of the collection 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 collection of information, to NMFS (see ADDRESSES), and by email to 
[email protected] or fax to 202-395-7285.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to penalty for 
failure to comply with, a collection of information subject to the 
requirement of the PRA, unless that collection of information displays 
a currently valid OMB control number.

List of Subjects in 50 CFR Part 680

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: October 15, 2015.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, 50 CFR part 680 is 
proposed to be amended as follows:

PART 680--SHELLFISH FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF 
ALASKA

0
1. The authority citation for 50 CFR part 680 continues to read as 
follows:

    Authority:  16 U.S.C. 1862; Pub. L. 109-241; Pub. L. 109-479.

0
2. In Sec.  680.4,
0
a. Revise paragraphs (d)(3), (e)(1), (e)(3), (f) heading, and 
(f)(2)(ii);
0
b. Redesignate paragraphs (f)(2)(iv) and (f)(2)(v) as (f)(2)(v) and 
(f)(2)(vi), respectively;
0
c. Add paragraph (f)(2)(iv);
    The revisions and additions to read as follows:


Sec.  680.4  Permits.

* * * * *
    (d) * * *
    (3) On an annual basis, the Regional Administrator will issue a 
crab IFQ permit to a person who submits a complete Application for 
Annual Crab Individual Fishing Quota (IFQ) Permit, described at 
paragraph (f) of this section, that is subsequently approved by the 
Regional Administrator.
* * * * *
    (e) * * *
    (1) A crab IPQ permit authorizes the person identified on the 
permit to receive/process the IPQ crab identified on the permit during 
the crab fishing year for which the permit is issued, subject to 
conditions of the permit. A crab IPQ permit is valid under the 
following circumstances:
* * * * *
    (3) On an annual basis, the Regional Administrator will issue a 
crab IPQ permit to a person who submits a complete Application for 
Annual Crab Individual Processing Quota (IPQ) Permit, described at 
paragraph (f) of this section, that is subsequently approved by the 
Regional Administrator.
* * * * *
    (f) Contents of annual applications for crab IFQ and IPQ permits.
* * * * *
    (2) * * *
    (ii) Crab IFQ or IPQ permit identification. Indicate the type of 
crab IFQ or IPQ permit for which applicant is applying by QS 
fishery(ies) and indicate (YES or NO) whether applicant has joined a 
crab harvesting cooperative. If YES, enter the name of the crab 
harvesting cooperative(s) the applicant has joined for each crab 
fishery.
* * * * *
    (iv) Certification of ROFR contract for crab IPQ permit. Indicate 
(YES or NO) whether any of the IPQ for which the applicant is applying 
to receive is subject to right of first refusal (ROFR). If YES certify 
(YES or NO) whether there is a ROFR contract currently in place between 
the applicant and the ECC entity holding the ROFR for the IPQ that 
includes the required ROFR contract terms specified in Chapter 11 
section 3.4.4.1.2 of the Fishery Management Plan for Bering Sea/
Aleutian Islands King and Tanner Crabs.
* * * * *
0
3. In Sec.  680.21, revise paragraph (b)(1) to read as follows:


Sec.  680.21  Crab harvesting cooperatives.

* * * * *
    (b) * * *
    (1) June 15 application deadline. A completed Application for 
Annual Crab Harvesting Cooperative Individual Fishing Quota (IFQ) 
Permit listing the name of each member of the crab harvesting 
cooperative must be submitted annually by each crab harvesting 
cooperative and received by NMFS no later than June 15 (or postmarked 
by this date, if sent via U.S.

[[Page 63956]]

mail or a commercial carrier) for the upcoming crab fishing year for 
which the crab harvesting cooperative is applying to receive IFQ. If a 
complete application is not received by NMFS by this date, or 
postmarked by this date, the crab harvesting cooperative will not 
receive IFQ for the upcoming crab fishing year. In the event that NMFS 
has not received a complete and timely application by June 15, NMFS 
will presume that the application was timely filed if the applicant can 
provide NMFS with proof of timely filing. Each crab harvesting 
cooperative member is responsible for submitting a completed 
Application for Annual Crab Individual Fishing Quota Permit to NMFS by 
June 15 pursuant to Sec.  680.4.
* * * * *
0
4. In Sec.  680.41, revise paragraphs (i)(8) and (9) to read as 
follows:


Sec.  680.41  Transfers of QS, PQS, IFQ or IPQ.

* * * * *
    (i) * * *
    (8) In the case of an application for transfer of PQS or IPQ for 
use outside an ECC that has designated an entity to represent it in 
exercise of ROFR under paragraph (l) of this section:
    (i) The Regional Administrator will not act upon the application 
for a period of 10 days. At the end of that time period, the 
application will be approved pending meeting the criteria set forth in 
paragraph (i) of this section.
    (ii) The person applying to transfer PQS subject to ROFR must 
include an affidavit certifying that the ECC entity was provided with 
notice of the proposed transfer at least 90 days prior to the date of 
the transfer application and that the ECC entity did not exercise its 
ROFR during that period.
    (iii) The person applying to receive the PQS must include an 
affidavit certifying that a ROFR contract that includes the ROFR 
contract terms specified in Chapter 11 section 3.4.4.1.2 of the Fishery 
Management Plan for Bering Sea/Aleutian Islands King and Tanner Crabs 
has been completed with an ECC entity eligible to hold a ROFR under 
paragraph (l) of this section and that represents an EEC within the 
region for which the PQS is designated.
    (9) In the case of an application for transfer of PQS for use 
within an ECC that has designated an entity to represent it in exercise 
of ROFR under paragraph (l) of this section, the Regional Administrator 
will not approve the application unless the proposed recipient of the 
PQS and the ECC entity provide an affidavit to the Regional 
Administrator certifying that either the ECC wishes to permanently 
waive ROFR for the PQS or that a ROFR contract that includes the ROFR 
contract terms specified in Chapter 11 section 3.4.4.1.2 of the Fishery 
Management Plan for Bering Sea/Aleutian Islands King and Tanner Crabs 
has been completed by the proposed recipient of the PQS and the ECC 
entity.
* * * * *
[FR Doc. 2015-26844 Filed 10-21-15; 8:45 am]
 BILLING CODE 3510-22-P



                                                63950                 Federal Register / Vol. 80, No. 204 / Thursday, October 22, 2015 / Proposed Rules

                                                  Dated: August 27, 2015.                               the Bering Sea and Aleutian Islands                   SUPPLEMENTARY INFORMATION:      NMFS
                                                Andrew M. Slavitt,                                      (BSAI) crab fisheries, and to improve                 manages the king and Tanner crab
                                                Acting Administrator, Centers for Medicare              the administration of the CR Program.                 fisheries in the exclusive economic zone
                                                & Medicaid Services.                                    These actions are intended to promote                 of the Bering Sea and Aleutian Islands
                                                  Dated: October 9, 2015.                               the goals and objectives of the                       (BSAI) under the FMP. The North
                                                Sylvia Burwell,                                         Magnuson-Stevens Fishery                              Pacific Fishery Management Council
                                                Secretary, Department of Health and Human               Conservation and Management Act, the                  (Council) prepared the FMP under the
                                                Services.                                               FMP, and other applicable laws.                       Magnuson-Stevens Fishery
                                                [FR Doc. 2015–26907 Filed 10–21–15; 8:45 am]            DATES: Submit comments on or before                   Conservation and Management Act
                                                BILLING CODE 4120–01–P                                  November 23, 2015.                                    (Magnuson-Stevens Act), 16 U.S. C.
                                                                                                        ADDRESSES: You may submit comments,                   1801 et seq. Regulations governing U.S.
                                                                                                        identified by NOAA–NMFS–2013–0057,                    fisheries and implementing the FMP
                                                                                                        by any one of the following methods.                  appear at 50 CFR part 680.
                                                DEPARTMENT OF COMMERCE                                                                                           NMFS published the final rule to
                                                                                                          • Electronic Submission: Submit all
                                                National Oceanic and Atmospheric                        electronic public comments via the                    implement the Crab Rationalization (CR)
                                                                                                        Federal e-Rulemaking Portal. Go to                    Program on March 2, 2005 (70 FR
                                                Administration
                                                                                                        www.regulations.gov/                                  10174). Fishing under the CR Program
                                                                                                        #!docketDetail;D=NOAA-NMFS-2013-                      started with the 2005/2006 crab fishing
                                                50 CFR Part 680
                                                                                                        0057, click the ‘‘Comment Now!’’ icon,                year.
                                                [Docket No. 150313268–5268–01]                                                                                   The Council submitted Amendment
                                                                                                        complete the required fields, and enter
                                                                                                                                                              44 for review by the Secretary of
                                                RIN 0648–BE98                                           or attach your comments.
                                                                                                          • Mail: Submit written comments to                  Commerce. A notice of availability of
                                                Fisheries of the Exclusive Economic                     Glenn Merrill, Assistant Regional                     Amendment 44 was published in the
                                                Zone Off Alaska; Bering Sea and                         Administrator, Sustainable Fisheries                  Federal Register on October 9, 2015 (80
                                                Aleutian Islands Crab Rationalization                                                                         FR 61150), with comments invited
                                                                                                        Division, Alaska Region NMFS, Attn:
                                                Program                                                                                                       through December 8, 2015. All relevant
                                                                                                        Ellen Sebastian. Mail comments to P.O.
                                                                                                                                                              written comments received by that time,
                                                AGENCY:  National Marine Fisheries                      Box 21668, Juneau, AK 99802–1668.
                                                                                                          Instructions: Comments sent by any                  whether specifically directed to
                                                Service (NMFS), National Oceanic and                                                                          Amendment 44, or to the proposed rule,
                                                Atmospheric Administration (NOAA),                      other method, to any other address or
                                                                                                        individual, or received after the end of              will be considered in the approval/
                                                Commerce.                                                                                                     disapproval decision on Amendment
                                                                                                        the comment period, may not be
                                                ACTION: Proposed rule; request for                                                                            44.
                                                                                                        considered by NMFS. All comments
                                                comments.                                                                                                        The CR Program is a catch share
                                                                                                        received are a part of the public record
                                                                                                                                                              program for nine BSAI crab fisheries
                                                SUMMARY:    NMFS issues a proposed rule                 and will generally be posted for public               that allocates those resources among
                                                to implement Amendment 44 to the                        viewing on www.regulations.gov                        harvesters, processors, and coastal
                                                Fishery Management Plan for Bering                      without change. All personal identifying              communities. Under the CR Program,
                                                Sea/Aleutian Islands King and Tanner                    information (e.g., name, address),                    NMFS issued quota share (QS) to
                                                Crabs (FMP) and a regulatory                            confidential business information, or                 eligible harvesters based on their
                                                amendment that would modify                             otherwise sensitive information                       historical participation during a set of
                                                regulations governing the Crab                          submitted voluntarily by the sender will              qualifying years in one or more of the
                                                Rationalization (CR) Program. The                       be publicly accessible. NMFS will                     nine CR Program fisheries. QS is an
                                                proposed rule would modify regulations                  accept anonymous comments (enter ‘‘N/                 exclusive, revocable privilege allowing
                                                to reflect that a Right of First Refusal                A’’ in the required fields if you wish to             the holder to harvest a specific
                                                (ROFR) may continue with the current                    remain anonymous).                                    percentage of the annual total allowable
                                                ROFR holder or a new ROFR holder                          Written comments regarding the                      catch (TAC) in a CR Program fishery.
                                                when processor quota share (PQS) is                     burden-hour estimates or other aspects                   A QS holder’s annual allocation,
                                                transferred and would require PQS                       of the collection-of-information                      called individual fishing quota (IFQ), is
                                                holders to make specific certifications                 requirements contained in this rule may               expressed in pounds and is based on the
                                                regarding ROFR contracts when                           be submitted to NMFS at the above                     amount of QS held in relation to the
                                                annually applying for individual                        address; emailed to OIRA_Submission@                  total QS pool for that fishery. NMFS
                                                processor quota (IPQ) and when                          omb.eop.gov or faxed to 202–395–7285.                 issues IFQ in three classes: Class A IFQ,
                                                transferring PQS that are subject to a                    Electronic copies of Amendment 44 to                Class B IFQ, and Class C IFQ. Three
                                                ROFR. In addition, this proposed rule                   the FMP, the Regulatory Impact Review                 percent of IFQ is issued as Class C IFQ
                                                would amend CR Program regulations to                   (RIR), the Initial Regulatory Flexibility             for captains and crew. Of the remaining
                                                separate the annual individual fishing                  Analysis (IRFA), and the Categorical                  IFQ, 90 percent is issued as Class A IFQ
                                                quota (IFQ)/IPQ application into two                    Exclusion prepared for this action may                and 10 percent is issued as Class B IFQ.
                                                separate applications, and would                        be obtained from http://                                 NMFS issued processor quota share
                                                require that crab harvesting cooperatives               www.regulations.gov or from the Alaska                (PQS) to qualified individuals and
                                                list the name of each member of the                     Region Web site at http://                            entities based on processing activities in
                                                cooperative in its application for IFQ                  alaskafisheries.noaa.gov. The                         CR Program fisheries during a period of
                                                                                                        Environmental Impact Statement (EIS),
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                rather than provide NMFS with copies                                                                          qualifying years. PQS is an exclusive,
                                                of each member’s IFQ application.                       RIR, and Social Impact Assessment                     revocable privilege to receive deliveries
                                                These actions are necessary to improve                  prepared for the CR Program are                       of a fixed percentage of the annual TAC
                                                available information concerning                        available from the NMFS Alaska Region                 from a CR Program fishery. A PQS
                                                transfer and use of PQS and IPQ subject                 Web site at http://                                   holder’s annual allocation is known as
                                                to a ROFR, thereby enhancing the ability                alaskafisheries.noaa.gov.                             individual processing quota (IPQ).
                                                of eligible crab communities to retain                  FOR FURTHER INFORMATION CONTACT:                      NMFS issues IPQ at a one-to-one
                                                their historical processing interests in                Rachel Baker, 907–586–7228.                           correlation with the amount of Class A


                                           VerDate Sep<11>2014   17:42 Oct 21, 2015   Jkt 238001   PO 00000   Frm 00019   Fmt 4702   Sfmt 4702   E:\FR\FM\22OCP1.SGM   22OCP1


                                                                      Federal Register / Vol. 80, No. 204 / Thursday, October 22, 2015 / Proposed Rules                                         63951

                                                IFQ issued for each CR Program fishery.                 communities to identify the entity that               exempt from (i.e., do not trigger) the
                                                Class A IFQ must be delivered to a                      can exercise the ROFR on behalf of the                ROFR. The ROFR contract terms require
                                                processor holding a matching amount of                  community (see § 680.41(l)(2)(ii)).                   that in order to complete a transfer
                                                IPQ; Class C IFQ and Class B IFQ may                       PQS and IPQ from the Bristol Bay red               under a ROFR, an eligible crab
                                                be delivered to any registered crab                     king crab, Bering Sea snow crab, Eastern              community entity must meet ‘‘the same
                                                receiver.                                               Aleutian Islands golden king crab, St.                terms and conditions of the underlying
                                                                                                        Matthew Island blue king crab, and                    [proposed sale] agreement and will
                                                Right of First Refusal                                  Pribilof red and blue king crab fisheries             include all processing shares and other
                                                   The CR Program includes several                      are subject to a ROFR. Section 3.1.3 of               goods included in that agreement.’’
                                                provisions intended to protect specific                 the RIR/IRFA describes the specific                      The ROFR contract terms also state
                                                communities that had historically been                  amounts of PQS and IPQ that were, and                 that all terms of any ROFR and contract
                                                active in the processing of king and                    are, subject to ROFR.                                 entered into related to ROFR will be
                                                Tanner crab from adverse impacts that                      Under the ROFR, an eligible crab                   enforced through civil law. Additional
                                                could result from the CR Program. The                   community entity is provided an                       details on the rationale for the civil
                                                CR Program established eligibility                      opportunity to meet the same terms and                enforcement of the terms in a ROFR
                                                criteria and regulations at 50 CFR 680.2                conditions being offered to a proposed                contract are provided in the EIS, RIR,
                                                identified the nine communities that                    buyer of a proposed sale of PQS or IPQ.               and Social Impact Assessment prepared
                                                satisfy the eligibility criteria: Adak,                 If an eligible crab community entity can              for the CR Program, and the final rule
                                                Akutan, Dutch Harbor, Kodiak, King                      meet the terms and conditions of a                    implementing the CR Program (March 2,
                                                Cove, False Pass, St. George, St. Paul,                 proposed sale, then the eligible crab                 2005, 70 FR 10174).
                                                and Port Moller. These communities are                  community entity receives by transfer                    An eligible crab community entity
                                                referred to as ‘‘eligible crab                          the PQS, IPQ, and any other goods                     must meet two important requirements
                                                communities’’ for purposes of the CR                    instead of the proposed buyer. For a                  to complete a ROFR and receive PQS,
                                                Program’s community protection                          more detailed summary of ROFR, see                    IPQ, or other goods associated with a
                                                measures. Additional detail on the                      section 3.1.3 of the RIR/IRFA.                        proposed sale. The eligible crab
                                                rationale and criteria used to establish                   The CR Program included a ROFR to                  community entity must: (1) Exercise its
                                                the eligible crab communities can be                    provide eligible crab communities an                  ROFR, that is, provide a clear
                                                found in the final rule implementing the                opportunity to retain crab PQS, IPQ, and              commitment to complete a purchase
                                                CR Program (March 2, 2005, 70 FR                        other goods before they are transferred               agreement within a specific time frame;
                                                10174). Additional information on the                   to another buyer who could then choose                and (2) perform under the ROFR, that is,
                                                eligible crab communities is provided in                to use that PQS, IPQ, and other goods                 meet all of the terms and conditions of
                                                Section 3.1.4 of the RIR/IRFA prepared                  outside of the community. Such a                      the underlying agreement for the
                                                for this action.                                        transfer could adversely affect the                   proposed sale within a specific time
                                                   With the exception of Adak, the CR                   economic stability of the community.                  frame.
                                                Program provides eligible crab                          The ROFR is intended to strike a                         To exercise the ROFR, an eligible crab
                                                communities, or ECCs, with a right of                   balance between the interest of                       community entity must provide the
                                                first refusal (ROFR) on certain PQS and                 communities historically reliant on crab              seller of PQS or IPQ subject to a ROFR
                                                IPQ transfers. A ROFR provides an                       processing to retain that processing                  with notice of its intent to exercise the
                                                eligible crab community with the right                  capacity within their communities, and                ROFR and earnest money in the amount
                                                to intervene in the sale (i.e., transfer) of            the interest of PQS or IPQ holders to be              of 10 percent of the contract amount or
                                                PQS, IPQ, and ‘‘other goods’’ (i.e.,                    able to engage in open market transfers               $500,000, whichever is less, within 60
                                                assets) associated with that community                  of PQS, IPQ, and other goods.                         days of notice of a sale and receipt of
                                                under specific conditions. The                                                                                the contract defining the sale’s terms. To
                                                                                                        ROFR Contract Terms
                                                regulations at § 680.41(l) require an                                                                         perform the ROFR, the eligible crab
                                                eligible crab community to identify an                     The ROFR is administered under the                 community entity must meet the terms
                                                entity to represent it for purposes of                  CR Program through contractual                        and conditions of the proposed sale (i.e.,
                                                ROFR. The eight eligible crab                           arrangements between eligible crab                    complete the sale) within 120 days, or
                                                communities that have a ROFR, and                       community entities and PQS/IPQ                        within the time specified in the
                                                their representative entities are listed in             holders. Persons who hold PQS/IPQ that                proposed sales contract, whichever is
                                                Table 9 of the RIR/IRFA. The eligible                   is subject to a ROFR must enter into a                longer. If an eligible crab community
                                                crab community of Adak is not provided                  contract with the eligible crab                       entity does not exercise its ROFR, or it
                                                a ROFR for PQS or IPQ associated with                   community entity eligible to exercise a               cannot perform under the ROFR
                                                that community because the CR Program                   ROFR for those PQS/IPQ shares. The                    contract, then the open market sale may
                                                incorporates other provisions to protect                terms required in a ROFR contract                     proceed.
                                                Adak. These provisions are described in                 between an eligible crab community
                                                the final rule implementing the CR                      entity and PQS/IPQ holder were                        Revising ROFR Contract Terms
                                                Program (March 2, 2005, 70 FR 10174).                   established with implementation of the                   The CR Program, including the ROFR
                                                   Of the eight eligible crab                           CR Program and are set forth in Chapter               contract terms, was implemented under
                                                communities, four are community                         11 of the FMP. ROFR applies to any                    authority provided at section 313(j)(1) of
                                                development quota (CDQ) communities,                    proposed sale of PQS, and sales of IPQ,               the Magnuson-Stevens Act. Section
                                                and four are non-CDQ communities. In                    if more than 20 percent of the PQS                    313(j)(3) states that after initial
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                the case of eligible crab communities                   holders’ community based IPQ in the                   implementation of the CR Program, the
                                                that are also CDQ communities, the                      fishery were processed outside of the                 Council may submit and the Secretary
                                                local CDQ group is the entity that can                  community by another company (intra-                  may implement changes to conservation
                                                exercise the ROFR on behalf of the                      company transfers within a region are                 and management measures for crab
                                                community (see § 680.41(l)(2)(i)). For                  excluded) in three of the preceding five              fisheries of the Bering Sea and Aleutian
                                                the other four non-CDQ eligible crab                    years. Intra-company transfers within a               Islands to achieve on a continuing basis
                                                communities, regulations authorize the                  region and transfers of PQS for                       the purposes identified by the Council.
                                                governing bodies of these eligible crab                 continued use in the community are                    This provision allows the Council to


                                           VerDate Sep<11>2014   17:42 Oct 21, 2015   Jkt 238001   PO 00000   Frm 00020   Fmt 4702   Sfmt 4702   E:\FR\FM\22OCP1.SGM   22OCP1


                                                63952                 Federal Register / Vol. 80, No. 204 / Thursday, October 22, 2015 / Proposed Rules

                                                recommend, and NMFS to adopt,                           the ROFR contract terms and                              Amendment 44 would remove the
                                                revisions to the required terms of a                    notification requirements could improve               ROFR contract term that allows a ROFR
                                                ROFR contract. Proposed Amendment                       the ability of eligible crab community                to lapse if the IPQ derived from the PQS
                                                44 to the FMP would modify several of                   entities to exercise and perform under a              subject to ROFR was processed outside
                                                the existing ROFR contract terms and                    ROFR without unduly limiting open                     the community of origin for a period of
                                                add two additional contract terms. For                  market transfers of PQS, IPQ, and other               three consecutive years. This
                                                reasons provided in the notice of                       goods. The Council reviewed and                       amendment would allow a ROFR to
                                                availability for Amendment 44 (80 FR                    analyzed these concerns in a series of                remain in effect for PQS subject to a
                                                61150, October 9, 2015) and this                        documents that have been consolidated                 ROFR regardless of the location in
                                                proposed rule, the Council and NMFS                     under the RIR/IRFA prepared for                       which the IPQ associated with that PQS
                                                have determined that the modifications                  Amendment 44 and this proposed rule                   was processed. However, if approved,
                                                to the ROFR contract terms and                          (see ADDRESSES). The Council                          Amendment 44 would not reinstate a
                                                regulations governing ROFR that would                   recommended the provisions                            ROFR that lapsed prior to
                                                be made by proposed Amendment 44                        comprising Amendment 44 and this                      implementation of Amendment 44. The
                                                and this proposed rule improve the                      proposed rule at its February 2013 and                Council determined, and NMFS agrees,
                                                achievement of the purposes of ROFR                     its October 2014 meetings.                            that this amendment would strengthen
                                                that were identified by the Council                        Proposed Amendment 44 and this                     the connection between PQS and the
                                                when it adopted the CR Program.                         proposed rule are intended to address                 community from which it originated, by
                                                  As noted earlier, the terms in a ROFR                 four categories of concern that                       maintaining the right regardless of
                                                contract are enforced through civil                     stakeholders have for the existing ROFR               whether the yielded IPQ is used outside
                                                contract law rather than through                        contract terms and regulations                        the community for extended periods. By
                                                regulations implemented by NMFS.                        implementing ROFR. These are: (1)                     maintaining the right despite use of IPQ
                                                Amendment 44 to the FMP and this                        Inadequate time for an eligible crab                  outside of the community, the eligible
                                                proposed rule would not change the                      community entity to exercise and                      crab community entity and the
                                                civil enforcement of the terms in a                     perform under a ROFR; (2) ROFR                        community of origin that it represents
                                                ROFR contract. The proposed rule                        contract terms that allow a ROFR to                   would maintain an interest in the PQS
                                                would revise regulations to implement                   lapse; (3) ROFR contract terms that do                into the future.
                                                Amendment 44 and to amend the CR                        not allow an eligible crab community                     Amendment 44 also would remove
                                                Program. Regulations implemented by                     entity and a PQS/IPQ holder to                        the ROFR contract term stating that a
                                                NMFS are enforced by NMFS.                              mutually agree to the specific assets                 ROFR will lapse if an eligible crab
                                                Therefore, the regulatory changes in this               subject to a ROFR and to exclude ‘‘other              community entity fails to exercise its
                                                proposed rule (i.e., measures that are                  goods’’ if desired; and (4) the lack of               ROFR after it is triggered by a transfer
                                                more than solely amendments to the                      verification that proper notification and             of PQS and replace it with a ROFR
                                                FMP modifying the terms in a ROFR                       reporting of proposed sales between                   contract term that would require the
                                                contract) would be subject to                           PQS/IPQ holders and eligible crab                     recipient of a PQS transfer to enter into
                                                enforcement by NMFS.                                    community entities has occurred.                      a new ROFR contract with an eligible
                                                                                                                                                              crab community entity of its choosing in
                                                Need for Action                                         Summary of Proposed Amendment 44
                                                                                                                                                              the designated region of the PQS. This
                                                   In developing the CR Program, the                       The specific provisions of proposed                amendment would ensure that eligible
                                                Council and NMFS recognized the                         Amendment 44 are described in detail                  crab community entities within the
                                                unique historical relationship between                  in the Notice of Availability published               designated region of the PQS retain a
                                                eligible crab communities and                           by NMFS on October 9, 2015 (80 FR                     ROFR on that PQS even if the original
                                                processors associated with those                        61150). The following briefly                         eligible crab community entity chooses
                                                communities, and established ROFR                       summarizes the provisions of proposed                 not to exercise a ROFR.
                                                provisions to provide opportunities for                 Amendment 44.                                            ROFR contract terms currently require
                                                eligible crab communities to be notified                   If approved by NMFS, Amendment 44                  that the ROFR apply to all terms and
                                                and intervene in sales of crab processing               would modify the ROFR contract term                   conditions of the underlying sale
                                                assets important to those communities.                  specifying the amount of time to                      agreement, including all processing
                                                However, with experience gained from                    exercise and perform under a ROFR.                    shares and other goods included in the
                                                implementation, the Council has                         Amendment 44 would increase the time                  agreement. Amendment 44 would revise
                                                determined that some of the ROFR                        allowed for an eligible crab community                this ROFR contract term to specify that,
                                                contract terms and the lack of regulatory               entity to exercise a ROFR from 60 days                ‘‘Any right of first refusal must be on the
                                                requirements to ensure adequate                         to 90 days from receipt of the sales                  same terms and conditions of the
                                                notification and tracking of PQS and                    contract. This modification would also                underlying agreement and will include
                                                IPQ transfers are limiting the                          increase the time allowed for an eligible             all processing shares and other goods
                                                effectiveness of the ROFR provisions.                   crab community entity to perform under                included in this agreement, or to any
                                                   Stakeholders, including                              the ROFR from 120 days to 150 days.                   subset of those assets, as otherwise
                                                representatives from the eight eligible                 The time period to exercise and the time              agreed to by the PQS holder and the
                                                crab community entities that can                        period to perform under a ROFR begin                  community entity.’’ The proposed
                                                exercise a ROFR, noted several concerns                 on the date of receipt of the sales                   addition of the last clause in this ROFR
                                                with ROFR contract terms that could                     contract by the eligible crab community               contract term would allow a PQS holder
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                hinder an eligible crab community                       entity and run concurrently. The                      and an eligible crab community entity to
                                                entity from effectively exercising and                  extension of both time periods is                     negotiate what assets may be subject to
                                                performing under a ROFR. Eligible crab                  intended to help accommodate eligible                 a ROFR. This would provide PQS
                                                community entities also supported                       crab community entities when deciding                 holders and eligible crab community
                                                additional regulatory provisions to                     whether to exercise their ROFR, but also              entities with more flexibility compared
                                                ensure proper notification of proposed                  continue to recognize that time may be                to the status quo. For example, it would
                                                sales. Holders of PQS/IPQ subject to a                  of the essence for a PQS holder or buyer              allow an eligible crab community entity
                                                ROFR concurred that several changes to                  under a contract.                                     to reach an agreement with the PQS


                                           VerDate Sep<11>2014   17:42 Oct 21, 2015   Jkt 238001   PO 00000   Frm 00021   Fmt 4702   Sfmt 4702   E:\FR\FM\22OCP1.SGM   22OCP1


                                                                      Federal Register / Vol. 80, No. 204 / Thursday, October 22, 2015 / Proposed Rules                                          63953

                                                holder that the ROFR would only apply                   Amendment 44 would require the                        require an applicant, as part of the
                                                to the PQS, and not to any other goods                  recipient of a PQS transfer, or buyer, to             Application for Annual Crab IPQ
                                                associated with a proposed sale.                        enter into a new ROFR contract with an                Permit, to certify to NMFS that a ROFR
                                                  Amendment 44 also would establish                     eligible crab community entity of its                 contract that includes the required
                                                two new ROFR contract terms. First,                     choosing in the designated region of the              ROFR contract terms specified in
                                                Amendment 44 would add a ROFR                           PQS. The buyer could enter into a new                 Chapter 11 of the FMP exists between
                                                contract term that requires a PQS holder                ROFR contract with the eligible crab                  the applicant and the eligible crab
                                                to notify the eligible crab community                   community entity that held the ROFR                   community entity that holds the ROFR
                                                entity of any proposed transfer of IPQ or               with the seller, or the buyer could enter             for that PQS/IPQ. If Amendment 44 is
                                                PQS subject to ROFR, regardless of                      into a new ROFR contract with an                      approved, all ROFR contracts would be
                                                whether the PQS holder believes the                     eligible crab community entity that                   required to contain the newly revised
                                                proposed transfer triggers the right.                   represents an eligible crab community                 ROFR contract terms. Because
                                                Second, Amendment 44 would add a                        within the region for which the PQS is                Amendment 44 would modify the terms
                                                ROFR contract term that requires a PQS                  designated. This provision of                         required to be included in a ROFR
                                                holder to annually notify the eligible                  Amendment 44 would ensure that one                    contract, a PQS/IPQ holder and an
                                                crab community entity of the location at                eligible crab community entity within                 eligible crab community entity would
                                                which IPQ derived from PQS subject to                   the designated region of the PQS retains              need to establish a new or revised ROFR
                                                a ROFR was processed and whether that                   a ROFR on that PQS even if the original               contract to contain all of these terms
                                                IPQ was processed by the PQS holder.                    eligible crab community entity does not               and the PQS/IPQ holder would need to
                                                Both of these proposed notifications                    exercise its ROFR. This provision is                  certify annually that a ROFR contract
                                                would provide the eligible crab                         intended to strengthen the ROFR                       was in place. By including this
                                                community entities with more                            program by maintaining a link between                 certification as part of the annual
                                                information on what is occurring with                   PQS and eligible crab communities in                  application for IPQ, NMFS realizes that
                                                the PQS for which they hold a ROFR.                     perpetuity. In addition, the proposed                 if an applicant for IPQ is unable to
                                                  If Amendment 44 is approved, all                      provision may provide the original                    establish a revised ROFR contract with
                                                ROFR contracts would be required to                     eligible crab community entity that is                an eligible crab community entity and
                                                contain the newly revised ROFR                          not able to exercise a ROFR with                      provide that confirmation to NMFS in
                                                contract terms. Because Amendment 44                    another opportunity to use ROFR at                    the annual application for crab IPQ
                                                would modify the terms required to be                   some point in the future, should it be                permit prior to the date that application
                                                included in a ROFR contract, a PQS/IPQ                  triggered again through a proposed sale               is due, then NMFS would consider the
                                                holder and an eligible crab community                   of the PQS.                                           application to be incomplete. In that
                                                entity would need to establish a new or                    Because the buyer’s choice of an                   case, NMFS would withhold issuance of
                                                revised ROFR contract to contain all of                 eligible crab community entity would                  IPQ until this requirement is met.
                                                these terms.                                            occur at the time of transfer of the PQS,                Second, this proposed rule would
                                                                                                        regulations at § 680.41(i)(8) governing               modify regulations at § 680.41(i)(8) and
                                                The Proposed Rule                                       transfer of PQS would need to be                      (9) to require specific certifications by
                                                  This proposed rule contains three                     modified to require the seller to certify             the seller or the buyer when transferring
                                                actions. The first action would                         that the eligible crab community entity               PQS subject to ROFR. If a transfer of
                                                implement those aspects of Amendment                    did not exercise its ROFR within the                  PQS triggers a ROFR, regulations at
                                                44 that require implementing                            time provided and to require the buyer                § 680.41(i)(8) would require the seller to
                                                regulations. The second action would                    to certify that the buyer has entered into            certify, as part of the application to
                                                implement the regulatory amendment                      a ROFR contract with an eligible crab                 transfer PQS, that the PQS holder
                                                adopted by the Council. The third                       community entity in the designated                    notified the eligible crab community
                                                action would implement minor                            region of the PQS. These proposed                     entity holding the ROFR for that PQS of
                                                administrative changes to the CR                        changes to § 680.41(i)(8) would not alter             the proposed transfer at least 90 days
                                                Program regulations to improve the                      the current requirement that NMFS wait                prior to the date of the transfer
                                                application and reporting practices for                 10 days before approving a transfer of                application, and that the eligible crab
                                                participants in the CR Program. The                     PQS subject to ROFR when such                         community entity did not exercise its
                                                following paragraphs provide additional                 transfer triggers the ROFR.                           ROFR during that period. If a transfer of
                                                detail on these proposed actions.                                                                             PQS does not trigger a ROFR,
                                                                                                        Action 2: Regulatory Revisions Needed
                                                                                                                                                              regulations at § 680.41(i)(9) would be
                                                Action 1: Regulatory Revisions Needed                   To Implement the Regulatory
                                                                                                                                                              modified to require the buyer and the
                                                To Implement Amendment 44                               Amendment                                             eligible crab community entity to
                                                   Most of the provisions of Amendment                    At the time it took action on                       certify, as part of the application to
                                                44 only modify the ROFR contract terms                  Amendment 44, the Council also                        transfer PQS, either that the eligible crab
                                                contained in the FMP and do not                         recommended that holders of PQS/IPQ                   community entity wishes to
                                                require adjustments or additions to                     subject to ROFR provide NMFS with                     permanently waive ROFR for the PQS or
                                                regulations implementing ROFR at 50                     specific certifications regarding notice              that the buyer and the eligible crab
                                                CFR part 680. However, one provision                    to ROFR holders and the existence of                  community entity completed a ROFR
                                                of proposed Amendment 44 requires                       ROFR contracts when submitting an                     contract that includes the ROFR
                                                modification to regulations at                          application to transfer PQS or when                   contract terms specified in Chapter 11 of
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                § 680.41(i)(8) governing transfers of PQS               annually applying for IPQ. The                        the FMP. NMFS would not complete a
                                                subject to ROFR.                                        Council’s recommendations for                         transfer of PQS until these requirements
                                                   As explained above, a ROFR would                     certifications to NMFS do not require                 are met.
                                                no longer lapse if an eligible crab                     modifications to the FMP but require                     The Council determined and NMFS
                                                community entity fails to exercise its                  modifications to the regulations                      agrees that these additional notice
                                                ROFR after the ROFR is triggered by a                   implementing ROFR in 50 CFR part 680.                 requirements would directly address the
                                                transfer of PQS under proposed                            First, this proposed rule would                     concerns of eligible crab community
                                                Amendment 44. Instead, proposed                         modify regulations at § 680.4(f)(2) to                entities and PQS/IPQ holders that there


                                           VerDate Sep<11>2014   17:42 Oct 21, 2015   Jkt 238001   PO 00000   Frm 00022   Fmt 4702   Sfmt 4702   E:\FR\FM\22OCP1.SGM   22OCP1


                                                63954                 Federal Register / Vol. 80, No. 204 / Thursday, October 22, 2015 / Proposed Rules

                                                may not be adequate information                         be required to submit copies of each                  Amendment 44. The proposed revisions
                                                sharing between the parties subject to a                member’s annual IFQ application.                      would require the buyer of PQS to
                                                ROFR contract. These notices would                      NMFS notes that the proposed rule does                certify to NMFS that the buyer has
                                                ensure that all parties have accurate and               not modify the requirements at                        entered into a ROFR contract with an
                                                up-to-date information concerning the                   § 680.4(f) and each cooperative member                eligible crab community entity in the
                                                use of PQS and IPQ, as well as any sales                would continue to be responsible for                  designated region of the PQS.
                                                of PQS. For additional detail on these                  submitting to NMFS a complete annual                     Action 2 would require PQS holders
                                                proposed notice requirements, see                       IFQ permit application by the deadline                to provide two notifications to NMFS
                                                section 3.2.5 of the RIR/IRFA.                          of June 15. This proposed change would                regarding the status of their ROFR. The
                                                                                                        provide NMFS with necessary                           first certification would require PQS
                                                Action 3: Administrative Changes                                                                              holders applying to receive IPQ to attest
                                                                                                        information while reducing duplicative
                                                   NMFS proposes two minor                              reporting requirements for crab                       that a ROFR contract that includes the
                                                administrative changes to CR Program                    harvesting cooperatives.                              required ROFR contract terms exists
                                                regulations. First, NMFS proposes                                                                             between the applicant and the eligible
                                                revising regulations at § 680.4(d) to                   Classification                                        crab community entity that holds the
                                                separate the current combined                             Pursuant to section 304(b)(1)(A) and                ROFR for that PQS/IPQ. The second
                                                application for IFQ/IPQ into two                        305(d) of the Magnuson-Stevens Act, the               certification would require the seller of
                                                separate applications, an application for               NMFS Assistant Administrator has                      PQS to certify to NMFS that the seller
                                                IFQ and an application for IPQ. This                    determined that this proposed rule is                 provided the eligible crab community
                                                proposed revision is intended to reduce                 consistent with the FMP, other                        entity with notice of the proposed sale
                                                confusion among applicants who                          provisions of the Magnuson-Stevens                    at least 90 days prior to the date of the
                                                sometimes misunderstand the                             Act, and other applicable law, subject to             transfer application and that the entity
                                                requirements for the combined IFQ/IPQ                   further consideration of comments                     did not exercise ROFR during that time
                                                application and would improve the                       received during the public comment                    period. These notifications would be
                                                ability of applicants to correctly provide              period.                                               incorporated into the Application for
                                                the necessary information. This revision                  This proposed rule has been                         Annual Crab IPQ and the Application
                                                would allow applicants for IFQ to use                   determined to be not significant for the              for Transfer of Crab QS or PQS,
                                                an application form specific to IFQ, and                purposes of Executive Order 12866.                    respectively.
                                                applicants for IPQ to use an application                                                                         The small entities that would be
                                                                                                        Initial Regulatory Flexibility Analysis
                                                form specific to IPQ. Except for the                                                                          directly regulated by Action 1 and
                                                                                                        (IRFA)
                                                proposed modification to the annual                                                                           Action 2 are persons that hold PQS or
                                                IPQ application described above in the                     An IRFA was prepared, as required by               IPQ under the CR Program. Currently,
                                                ‘‘Action 2: Regulatory Revisions Needed                 section 603 of the Regulatory Flexibility             21 entities hold PQS or IPQ subject
                                                To Implement the Regulatory                             Act. The IRFA describes the economic                  (now or previously) to ROFR. Estimates
                                                Amendment’’ section, the proposed                       impact this proposed rule, if adopted,                of the number of large entities were
                                                changes would not modify the specific                   would have on small entities. Copies of               made, based on available records of
                                                information currently required of IFQ or                the RIR/IRFA prepared for this proposed               revenue, employment information, and
                                                IPQ applicants, but would change the                    rule are available from NMFS (see                     known affiliations among these entities.
                                                application form required to be                         ADDRESSES).                                           Of these 21 entities, 10 are estimated to
                                                submitted and the format of the                           The IRFA for this proposed action                   be large entities and 11 are deemed to
                                                application form.                                       describes the action, why this action is              be small entities. It is possible that
                                                   Second, NMFS proposes revisions to                   being proposed, the objectives and legal              additional entities could be directly
                                                reporting requirements for crab                         basis for the proposed rule, the type and             regulated under the proposed rule if an
                                                harvesting cooperatives at                              number of small entities to which the                 entity that does not already hold PQS
                                                § 680.21(b)(1). Currently, regulations at               proposed rule would apply, and the                    receives PQS by transfer. The new PQS
                                                § 680.4(f) require each member of a crab                projected reporting, recordkeeping, and               holder would be directly regulated
                                                harvesting cooperative to submit to                     other compliance requirements of the                  because the entity would be required to
                                                NMFS an Application for Annual Crab                     proposed rule. It also identifies any                 certify to NMFS that they have entered
                                                IFQ Permit, and regulations at                          overlapping, duplicative, or conflicting              into a ROFR contract. It is not possible
                                                § 680.21(b) require a crab harvesting                   Federal rules and describes any                       to estimate whether these new PQS
                                                cooperative to submit to NMFS a copy                    significant alternatives to the proposed              holders would be small entities for
                                                of each member’s Application for                        rule that would accomplish the stated                 purposes of this proposed rule.
                                                Annual Crab IFQ Permit along with the                   objectives of the Magnuson-Stevens Act                   Action 3 would make minor
                                                cooperative’s Application for Annual                    and other applicable statues and that                 administrative changes to clarify permit
                                                Crab Harvesting Cooperative IFQ                         would minimize any significant adverse                application procedures for IFQ holders
                                                Permit. NMFS has determined that                        economic impact of the proposed rule                  and IPQ holders, and reduce reporting
                                                while the identification of cooperative                 on small entities. The description of the             requirements for crab cooperatives that
                                                members is critical to the cooperative                  proposed action, its purpose, and its                 are directly regulated under the CR
                                                application process, NMFS can obtain                    legal basis are described in the preamble             Program. Currently, there are 10 crab
                                                this information through less                           and are not repeated here. The IRFA                   harvesting cooperative entities. Based
                                                burdensome means. Therefore, NMFS                       prepared for this proposed rule                       on available records of revenue, and
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                proposes revising the regulations at                    incorporates by reference an extensive                known affiliations among these entities,
                                                § 680.21(b)(1) so that a crab harvesting                RIR/FRFA prepared for Amendments 18                   4 of the entities are estimated to be large
                                                cooperative would be responsible only                   and 19 to the FMP that detail the                     entities and 6 are deemed to be small
                                                for submitting a list of the names of each              impacts of the CR Program on small                    entities. Because these changes would
                                                cooperative member with the                             entities.                                             reduce the reporting burden for all crab
                                                cooperative’s annual IFQ application.                     The proposed rule includes three                    harvesting cooperatives, Action 3 would
                                                Under the proposed rule, crab                           separate actions. Action 1 includes                   not have an adverse impact on directly
                                                harvesting cooperatives would no longer                 regulatory revisions to implement                     regulated small entities.


                                           VerDate Sep<11>2014   17:42 Oct 21, 2015   Jkt 238001   PO 00000   Frm 00023   Fmt 4702   Sfmt 4702   E:\FR\FM\22OCP1.SGM   22OCP1


                                                                      Federal Register / Vol. 80, No. 204 / Thursday, October 22, 2015 / Proposed Rules                                           63955

                                                   The certifications in the proposed rule              needed, and completing and reviewing                  described at paragraph (f) of this
                                                are straightforward, simple and are                     the collection of information.                        section, that is subsequently approved
                                                provided annually or at the time of a                     Public comment is sought regarding                  by the Regional Administrator.
                                                transfer of shares as part of applications.             whether this proposed collection of                   *       *    *     *     *
                                                While the new notification requirements                 information is necessary for the proper                  (e) * * *
                                                would add administrative reporting                      performance of the functions of the                      (1) A crab IPQ permit authorizes the
                                                requirements for 11 PQS/IPQ holders                     agency, including whether the                         person identified on the permit to
                                                that are small entities, the Council                    information shall have practical utility;             receive/process the IPQ crab identified
                                                determined that the administrative                      the accuracy of the burden statement;                 on the permit during the crab fishing
                                                burden associated with the notification                 ways to enhance quality, utility, and                 year for which the permit is issued,
                                                requirements would be minimal and                       clarity of the information to be                      subject to conditions of the permit. A
                                                would not negatively impact these                       collected; and ways to minimize the                   crab IPQ permit is valid under the
                                                entities.                                               burden of the collection of information,              following circumstances:
                                                                                                        including through the use of automated                *       *    *     *     *
                                                Duplicate, Overlapping, or Conflicting
                                                                                                        collection techniques or other forms of                  (3) On an annual basis, the Regional
                                                Federal Rules
                                                                                                        information technology. Send comments                 Administrator will issue a crab IPQ
                                                  NMFS has not identified any                           on these or any other aspects of the                  permit to a person who submits a
                                                duplication, overlap, or conflict                       collection of information, to NMFS (see               complete Application for Annual Crab
                                                between this proposed action and                        ADDRESSES), and by email to OIRA_                     Individual Processing Quota (IPQ)
                                                existing Federal rules.                                 Submission@omb.eop.gov or fax to 202–                 Permit, described at paragraph (f) of this
                                                                                                        395–7285.                                             section, that is subsequently approved
                                                Recordkeeping and Reporting                               Notwithstanding any other provision
                                                Requirements                                                                                                  by the Regional Administrator.
                                                                                                        of the law, no person is required to                  *       *    *     *     *
                                                   The recordkeeping and reporting                      respond to, nor shall any person be                      (f) Contents of annual applications for
                                                requirements would be increased                         subject to penalty for failure to comply              crab IFQ and IPQ permits.
                                                slightly under this proposed rule. This                 with, a collection of information subject
                                                                                                                                                              *       *    *     *     *
                                                proposed rule would include new                         to the requirement of the PRA, unless                    (2) * * *
                                                reporting requirements for PQS/IPQ                      that collection of information displays a                (ii) Crab IFQ or IPQ permit
                                                holders. The PQS/IPQ holders would be                   currently valid OMB control number.                   identification. Indicate the type of crab
                                                required to certify to NMFS that a                      List of Subjects in 50 CFR Part 680                   IFQ or IPQ permit for which applicant
                                                current ROFR contract is in place when                                                                        is applying by QS fishery(ies) and
                                                applying for IPQ and notify NMFS of                       Alaska, Fisheries, Reporting and
                                                                                                                                                              indicate (YES or NO) whether applicant
                                                the status of the ROFR when                             recordkeeping requirements.
                                                                                                                                                              has joined a crab harvesting cooperative.
                                                transferring PQS or IPQ. These                            Dated: October 15, 2015.                            If YES, enter the name of the crab
                                                additional reporting requirements                       Samuel D. Rauch III,                                  harvesting cooperative(s) the applicant
                                                would be relatively straightforward and                 Deputy Assistant Administrator for                    has joined for each crab fishery.
                                                simple, and NMFS proposes including                     Regulatory Programs, National Marine                  *       *    *     *     *
                                                these certifications requirements into                  Fisheries Service.                                       (iv) Certification of ROFR contract for
                                                the Application for Annual Crab IPQ                       For the reasons set out in the                      crab IPQ permit. Indicate (YES or NO)
                                                and the Application for Transfer of Crab                preamble, 50 CFR part 680 is proposed                 whether any of the IPQ for which the
                                                PQS that are already required for                       to be amended as follows:                             applicant is applying to receive is
                                                directly regulated entities to receive IPQ                                                                    subject to right of first refusal (ROFR).
                                                or to transfer PQS or IPQ. Therefore, the               PART 680—SHELLFISH FISHERIES OF                       If YES certify (YES or NO) whether
                                                additional recordkeeping and reporting                  THE EXCLUSIVE ECONOMIC ZONE                           there is a ROFR contract currently in
                                                requirements associated with the                        OFF ALASKA                                            place between the applicant and the
                                                proposed rule would be minimal.                                                                               ECC entity holding the ROFR for the
                                                                                                        ■ 1. The authority citation for 50 CFR                IPQ that includes the required ROFR
                                                Collection-of-Information Requirements                  part 680 continues to read as follows:                contract terms specified in Chapter 11
                                                  This proposed rule contains                             Authority: 16 U.S.C. 1862; Pub. L. 109–             section 3.4.4.1.2 of the Fishery
                                                collection-of-information requirements                  241; Pub. L. 109–479.                                 Management Plan for Bering Sea/
                                                subject to review and approval by the                   ■ 2. In § 680.4,                                      Aleutian Islands King and Tanner Crabs.
                                                Office of Management and Budget                         ■ a. Revise paragraphs (d)(3), (e)(1),                *       *    *     *     *
                                                (OMB) under the Paperwork Reduction                     (e)(3), (f) heading, and (f)(2)(ii);                  ■ 3. In § 680.21, revise paragraph (b)(1)
                                                Act (PRA). These requirements have                      ■ b. Redesignate paragraphs (f)(2)(iv)                to read as follows:
                                                been submitted to OMB for approval                      and (f)(2)(v) as (f)(2)(v) and (f)(2)(vi),
                                                under OMB Control Number 0648–0514.                     respectively;                                         § 680.21   Crab harvesting cooperatives.
                                                Public reporting burden is estimated to                 ■ c. Add paragraph (f)(2)(iv);                        *     *    *    *     *
                                                average per response: 1.5 hours for the                    The revisions and additions to read as               (b) * * *
                                                Annual Application for Crab IFQ                         follows:                                                (1) June 15 application deadline. A
                                                Permit; 1.5 hours for the Annual                                                                              completed Application for Annual Crab
                                                                                                        § 680.4    Permits.
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                Application for Crab IPQ Permit; 1 hour                                                                       Harvesting Cooperative Individual
                                                for the Application for an Annual Crab                  *     *    *     *    *                               Fishing Quota (IFQ) Permit listing the
                                                Harvesting Cooperative IFQ permit; and                    (d) * * *                                           name of each member of the crab
                                                2 hours for Application to Transfer Crab                  (3) On an annual basis, the Regional                harvesting cooperative must be
                                                QS or PQS. These estimates include the                  Administrator will issue a crab IFQ                   submitted annually by each crab
                                                time for reviewing instructions,                        permit to a person who submits a                      harvesting cooperative and received by
                                                searching existing data sources,                        complete Application for Annual Crab                  NMFS no later than June 15 (or
                                                gathering and maintaining the data                      Individual Fishing Quota (IFQ) Permit,                postmarked by this date, if sent via U.S.


                                           VerDate Sep<11>2014   17:42 Oct 21, 2015   Jkt 238001   PO 00000   Frm 00024   Fmt 4702   Sfmt 4702   E:\FR\FM\22OCP1.SGM   22OCP1


                                                63956                  Federal Register / Vol. 80, No. 204 / Thursday, October 22, 2015 / Proposed Rules

                                                mail or a commercial carrier) for the                       (8) In the case of an application for              an ECC entity eligible to hold a ROFR
                                                upcoming crab fishing year for which                     transfer of PQS or IPQ for use outside                under paragraph (l) of this section and
                                                the crab harvesting cooperative is                       an ECC that has designated an entity to               that represents an EEC within the region
                                                applying to receive IFQ. If a complete                   represent it in exercise of ROFR under                for which the PQS is designated.
                                                application is not received by NMFS by                   paragraph (l) of this section:                           (9) In the case of an application for
                                                this date, or postmarked by this date,                      (i) The Regional Administrator will                transfer of PQS for use within an ECC
                                                the crab harvesting cooperative will not                 not act upon the application for a period             that has designated an entity to
                                                receive IFQ for the upcoming crab                        of 10 days. At the end of that time
                                                                                                                                                               represent it in exercise of ROFR under
                                                fishing year. In the event that NMFS has                 period, the application will be approved
                                                                                                                                                               paragraph (l) of this section, the
                                                not received a complete and timely                       pending meeting the criteria set forth in
                                                                                                                                                               Regional Administrator will not approve
                                                application by June 15, NMFS will                        paragraph (i) of this section.
                                                                                                            (ii) The person applying to transfer               the application unless the proposed
                                                presume that the application was timely                                                                        recipient of the PQS and the ECC entity
                                                filed if the applicant can provide NMFS                  PQS subject to ROFR must include an
                                                                                                         affidavit certifying that the ECC entity              provide an affidavit to the Regional
                                                with proof of timely filing. Each crab                                                                         Administrator certifying that either the
                                                harvesting cooperative member is                         was provided with notice of the
                                                                                                         proposed transfer at least 90 days prior              ECC wishes to permanently waive ROFR
                                                responsible for submitting a completed                                                                         for the PQS or that a ROFR contract that
                                                Application for Annual Crab Individual                   to the date of the transfer application
                                                                                                         and that the ECC entity did not exercise              includes the ROFR contract terms
                                                Fishing Quota Permit to NMFS by June                                                                           specified in Chapter 11 section 3.4.4.1.2
                                                15 pursuant to § 680.4.                                  its ROFR during that period.
                                                                                                            (iii) The person applying to receive               of the Fishery Management Plan for
                                                *     *      *     *    *                                the PQS must include an affidavit                     Bering Sea/Aleutian Islands King and
                                                ■ 4. In § 680.41, revise paragraphs (i)(8)               certifying that a ROFR contract that                  Tanner Crabs has been completed by the
                                                and (9) to read as follows:                              includes the ROFR contract terms                      proposed recipient of the PQS and the
                                                                                                         specified in Chapter 11 section 3.4.4.1.2             ECC entity.
                                                § 680.41   Transfers of QS, PQS, IFQ or IPQ.
                                                                                                         of the Fishery Management Plan for                    *      *     *     *     *
                                                *       *     *       *      *                           Bering Sea/Aleutian Islands King and                  [FR Doc. 2015–26844 Filed 10–21–15; 8:45 am]
                                                    (i) * * *                                            Tanner Crabs has been completed with                  BILLING CODE 3510–22–P
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                           VerDate Sep<11>2014    17:42 Oct 21, 2015   Jkt 238001   PO 00000   Frm 00025   Fmt 4702   Sfmt 9990   E:\FR\FM\22OCP1.SGM   22OCP1



Document Created: 2015-12-14 15:34:01
Document Modified: 2015-12-14 15:34:01
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule; request for comments.
DatesSubmit comments on or before November 23, 2015.
ContactRachel Baker, 907-586-7228.
FR Citation80 FR 63950 
RIN Number0648-BE98
CFR AssociatedAlaska; Fisheries and Reporting and Recordkeeping Requirements

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR