83_FR_34632 83 FR 34492 - Magnuson-Stevens Act Provisions; Fisheries of the Northeastern United States; Northeast Multispecies Fishery; 2018 Sector Operations Plans and Allocation of Northeast Multispecies Annual Catch Entitlements

83 FR 34492 - Magnuson-Stevens Act Provisions; Fisheries of the Northeastern United States; Northeast Multispecies Fishery; 2018 Sector Operations Plans and Allocation of Northeast Multispecies Annual Catch Entitlements

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 83, Issue 140 (July 20, 2018)

Page Range34492-34497
FR Document2018-15477

This interim final rule determines the quota overages that Northeast Fishery Sector IX is responsible for paying back, allocates annual catch entitlements to Northeast Fishery Sectors VII and IX for the 2018 fishing year, approves a new lease-only operations plan for Northeast Fishery Sector IX, and approves a substantive amendment to Northeast Fishery Sector VII operations plan. Approval of the operations plans and allocation of annual catch entitlements is necessary for the sectors to operate. This action is intended to ensure that these sectors are allocated accurate annual catch entitlements that account for past catch overages, and that the sectors' operations plans can achieve the conservation and management objectives of the Northeast Multispecies Fishery Management Plan.

Federal Register, Volume 83 Issue 140 (Friday, July 20, 2018)
[Federal Register Volume 83, Number 140 (Friday, July 20, 2018)]
[Rules and Regulations]
[Pages 34492-34497]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-15477]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 180220196-8196-01]
RIN 0648-XG051


Magnuson-Stevens Act Provisions; Fisheries of the Northeastern 
United States; Northeast Multispecies Fishery; 2018 Sector Operations 
Plans and Allocation of Northeast Multispecies Annual Catch 
Entitlements

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

ACTION: Interim final rule; request for comments.

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

SUMMARY: This interim final rule determines the quota overages that 
Northeast Fishery Sector IX is responsible for paying back, allocates 
annual catch entitlements to Northeast Fishery Sectors VII and IX for 
the 2018 fishing year, approves a new lease-only operations plan for 
Northeast Fishery Sector IX, and approves a substantive amendment to 
Northeast Fishery Sector VII operations plan. Approval of the 
operations plans and allocation of annual catch entitlements is 
necessary for the sectors to operate. This action is intended to ensure 
that these sectors are allocated accurate annual catch entitlements 
that account for past catch overages, and that the sectors' operations 
plans can achieve the conservation and management objectives of the 
Northeast Multispecies Fishery Management Plan.

DATES: Effective July 20, 2018 through April 30, 2019. Comments must be 
received on or before August 20, 2018.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2018-0069, by either of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to

[[Page 34493]]

www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2018-0069, click the 
``Comment Now!'' icon, complete the required fields, and enter or 
attach your comments.
     Mail: Submit written comments to Michael Pentony, Regional 
Administrator, 55 Great Republic Drive, Gloucester, MA 01930. Mark the 
outside of the envelope, ``Comments on Rulemaking for NEFS 7 and NEFS 
9.''
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period, 
may not be considered by NMFS. All comments received are a part of the 
public record and will generally be posted for public viewing on 
www.regulations.gov without change. All personal identifying 
information (e.g., name, address, etc.), confidential business 
information, or otherwise sensitive information submitted voluntarily 
by the sender will be publicly accessible. NMFS will accept anonymous 
comments (enter ``N/A'' in the required fields if you wish to remain 
anonymous).
    Copies of each sector's operations plan and contract, as well as 
the programmatic environmental assessment for sectors operations in 
fishing years 2015 to 2020, are available from the NMFS Greater 
Atlantic Regional Fisheries Office (GARFO): Michael Pentony, Regional 
Administrator, National Marine Fisheries Service, 55 Great Republic 
Drive, Gloucester, MA 01930. These documents are also accessible via 
the GARFO website: https://www.greateratlantic.fisheries.noaa.gov/sustainable/species/multispecies/.

FOR FURTHER INFORMATION CONTACT: Liz Sullivan, Fishery Policy Analyst, 
(978) 282-8493.

SUPPLEMENTARY INFORMATION:

Background

    To help achieve the fishing mortality and conservation objectives 
of the Northeast Multispecies Fishery Management Plan (FMP), each 
sector is allocated annual catch entitlements (ACE) and must ensure 
that these ACEs are not exceeded. The Regional Administrator must 
approve sector operations plans in order for sectors to operate and be 
allocated ACE for specific groundfish stocks. A sector's operations 
plan includes a detailed plan for monitoring and reporting catch and 
the specific management rules sector participants will abide by in 
order to avoid exceeding the sector's allocation, as well as a plan for 
how the sector will operate if an ACE is exceeded. The operations plan 
also includes internal sector enforcement measures for operations plan 
breaches and remedies, such as a penalty schedule for operations plan 
non-compliance or other actions that would jeopardize the sector's 
continued approval. Penalties under the plan range from a written 
warning or fine to expulsion from the sector.
    On March 30, 2017, Carlos Rafael pleaded guilty to all counts in 
United States v. Carlos Rafael (No. 16-CR10124-WGY). Mr. Rafael is the 
owner of Carlos Seafood (a Federally permitted dealer) and a fleet of 
Federally permitted groundfish vessels that are enrolled in Northeast 
Fishery Sector IX (NEFS 9). Mr. Rafael admitted to falsely reporting 
catch information on dealer catch reports and vessel trip reports from 
2012 through 2015. All of the vessels involved in the misreporting 
operated under the sector operations plan for NEFS 9 during the period 
of known misreporting, were enrolled in NEFS 9 for fishing year 2017, 
and are now enrolled in Northeast Fishery Sector VII (NEFS 7) for 
fishing year 2018.
    On September 25, 2017, Mr. Rafael was sentenced to serve 46 months 
in prison and 3 years of supervised release. During his supervised 
release, he is barred from working in the fishing industry. The Court 
also ordered Mr. Rafael to pay a fine of $200,000 and forfeited Mr. 
Rafael's interests in four fishing vessels used in the criminal 
violations, including all fishing permits that NMFS issued to the four 
vessels.
    As a result of Mr. Rafael's violations, NEFS 9 was operating 
without having accurately accounted for its available ACE. Further, the 
violations revealed a failure of adequate sector oversight and 
accounting. On November 22, 2017, we published an interim final rule to 
withdraw approval of the Fishing Years 2017 and 2018 Sector Operations 
Plan for NEFS 9 (82 FR 55522). This withdrawal was a necessary 
administrative action because NEFS 9 and its participants failed to 
uphold the requirements of the sector operations plan and adequately 
respond to Mr. Rafael's violations. Without accurate catch and ACE 
accounting, effective monitoring, or internal governance, we determined 
that continuation of the sector would undermine conservation and 
management objectives of the FMP. With the disapproval of the sector's 
operation plan, the members of NEFS 9 are not allowed to fish for 
groundfish, and the sector cannot transfer quota to or from other 
sectors.
    On February 22, 2018, the NEFS 9 Board of Directors submitted a new 
sector operations plan for review and approval. The operations plan 
would allow the sector to operate as a ``lease-only'' sector. As a 
lease-only sector, NEFS 9 vessels could not actively fish for 
groundfish, but the sector would be allowed to transfer groundfish 
quota to and from other sectors. NEFS 9 vessels could continue to fish 
for other species not managed under the Northeast Multispecies FMP for 
which they have permits, such as scallops, summer flounder, and squid.
    On March 26, 2018, NEFS 7 and NEFS 9 submitted rosters for the 2018 
fishing year, indicating that 55 of the 60 permits previously enrolled 
into NEFS 9 would move into NEFS 7. Only three permits remain in NEFS 
9. Consistent with sector eligibility requirements these permits are 
issued to at least three different persons, none of whom have any 
common ownership interests in the permits, vessels, or businesses 
associated with the permits issued the other two or more persons in the 
sector. NEFS 7's submitted roster included new members enrolled with 
the condition that all permits owned by Mr. Rafael would be inactive 
and unable to fish in the groundfish fishery unless and until the 
permit was sold to an independent third party. In order to implement 
and enforce this condition, the sector requested that, until such a 
sale occurred, we withhold the letters of authorization (LOA). LOAs are 
issued to all vessel owners or operators participating in a sector and 
authorize participation in sector operations. Because this permit 
condition is a substantive change to the operations plan, it requires 
rulemaking.
    On May 1, 2018, we allocated groundfish quota to all sectors except 
NEFS 7 and NEFS 9. In that rule, we provided a summary of the NEFS 7 
and 9 roster changes, but we did not make a determination regarding 
allocations to those two sectors (83 FR 18965; May 1, 2018). Before 
making this determination, we needed more information about, and time 
to evaluate how, NEFS 7 and NEFS 9 would operate and account for the 
past overages, and notified the public that these issues would be 
included in a separate rulemaking.

NEFS 9 Overages Due to Misreported Catch

    When we withdrew approval of NEFS 9 in November 2017, the interim 
final rule stated that initial allocations made to the sector at the 
start of the 2017 fishing year were likely artificially high, and that 
it was possible that the sector's 2017 catch might have already 
exceeded what should have been allocated. Based on analysis to assess 
the stock-level

[[Page 34494]]

apportionment of the misreported catch discovered in the criminal case, 
NEFS 9 ended the 2016 fishing year with quota overages for witch 
flounder, American plaice, Georges Bank (GB) cod, and Cape Cod/Gulf of 
Maine (CC/GOM) yellowtail flounder (Tables 1 and 2). We allocated ACE 
to NEFS 9 for fishing year 2017 without any adjustments, because, at 
that time, we had not yet determined the overages caused by the 
misreported catch. Because NEFS 9 was not permitted to harvest 
groundfish after the sector operations plan was withdrawn in November, 
the sector was prevented from creating further overages, and unfished 
2017 ACE reduced or eliminated the quota overages determined from 
admissions in the criminal case. After accounting for NEFS 9's 
available 2017 ACE after operations were suspended, we determined that 
NEFS 9 ended the 2017 fishing year with a single overage of 72,224 lb 
(32.8 mt) of witch flounder. This interim final rule announces the NEFS 
9 fishing year 2017 balances for the stocks affected by the criminal 
case, as shown in Tables 1 and 2: Witch flounder, American plaice, GB 
cod, GOM cod, GB yellowtail flounder, Southern New England/Mid-Atlantic 
(SNE/MA) yellowtail flounder, and CC/GOM yellowtail flounder.

  Table 1--Summary of NEFS 9 Balances (lb) at End of Fishing Years 2016
                                and 2017
------------------------------------------------------------------------
                                          Balance at end  Balance at end
                  Stock                     of fishing      of fishing
                                             year 2016       year 2017
------------------------------------------------------------------------
Witch flounder..........................        -218,682         -72,224
American plaice.........................        -115,789          12,867
Eastern GB cod..........................           1,378          38,366
Western GB cod..........................         -14,582          56,258
GOM cod.................................           1,176          18,322
GB yellowtail flounder..................         130,589          88,674
SNE/MA yellowtail flounder..............          31,238          44,053
CC/GOM yellowtail flounder..............         -23,229          40,866
------------------------------------------------------------------------
* Negative number indicates an overage.


  Table 2--Summary of NEFS 9 Balances (mt) at End of Fishing Years 2016
                                and 2017
------------------------------------------------------------------------
                                          Balance at end  Balance at end
                  Stock                     of fishing      of fishing
                                             year 2016       year 2017
------------------------------------------------------------------------
Witch flounder..........................             -99             -33
American plaice.........................             -53               6
Eastern GB cod..........................               1              17
Western GB cod..........................              -7              26
GOM cod.................................               1               8
GB yellowtail flounder..................              59              40
SNE/MA yellowtail flounder..............              14              20
CC/GOM yellowtail flounder..............             -11              19
------------------------------------------------------------------------
* Negative number indicates an overage.

    To calculate the overages, we applied the misreported catch to the 
appropriate fishing year, as if we had known about the catch during or 
immediately following the end of each fishing year. If the misreported 
catch caused an overage in a particular fishing year, we deducted the 
overage from the sector's allocation for the next fishing year. If the 
sector carried over quota into a fishing year that it should not have, 
we removed the carryover that would not have been available had we 
known about the additional catch. Misreported catch occurred in fishing 
years 2012-2015. We applied the resulting overages from 2015 to 2016 
allocations and from 2016 to 2017 allocations. As stated earlier, NEFS 
9 ended the 2016 fishing year with multiple overages. Because we 
withdrew approval of the sector's operations plan, and NEFS 9 vessels 
have not been able to fish for groundfish since November 20, 2017, NEFS 
9 ended fishing year 2017 with an overage for witch flounder only.

Catch Apportionment Calculations

    As part of calculating the overages, we first correctly apportioned 
the misreported catch that was presented in the criminal case at a 
species level, broken down by calendar year. This required distributing 
the misreported catch into the appropriate fishing year, based on the 
landing date for trips associated with the misreported catch. Witch 
flounder and American plaice are unit stocks, and therefore, no further 
analysis was required. However, cod and yellowtail flounder are 
subdivided into management stock units. For cod, the sub-units are GOM 
and GB; GB is further divided into eastern and western GB. For 
yellowtail flounder, the sub-units are CC/GOM, GB, and SNE/MA. 
Allocating the misreported catch to stock area requires estimating the 
stock areas where the misreported catch was likely to have been caught.
    To apportion the misreported catch to the appropriate stock areas, 
we used data from the vessel monitoring systems (VMS) used by the 
vessels that were named in the criminal case to identify the most 
likely stock area from which that catch originated. We scaled the VMS 
effort by annual average catch-per-hour from observed groundfish trips 
by all sector vessels using trawl gear, to account for the different 
catch rate in different stock areas. The correctly apportioned catch by 
time and area was then applied to the allocated ACEs for the years in 
question to determine the overage amounts.

[[Page 34495]]

Sector Allocations for Fishing Year 2018 for NEFS 7 and NEFS 9

    As stated above, on May 1, 2018, we allocated groundfish quota to 
all sectors except NEFS 7 and NEFS 9 and did not make a determination 
regarding allocating to those two sectors (83 FR 18965; May 1, 2018). 
This rule allocates groundfish quota to NEFS 7 and to NEFS 9, based on 
the final sector enrollment submitted by the sectors and the fishing 
year 2018 specifications approved through Framework 57 (83 FR 18985; 
May 1, 2018). These allocations use updated rosters and are slightly 
different from the rule that proposed allocations for all sectors (83 
FR 12706; March 23, 2018), which used the fishing year 2017 sector 
rosters as a basis to estimate fishing year 2018 sector allocations.
    Consistent with how ACE is allocated to all other sectors, we 
calculate the sector's allocation for each stock by summing its 
members' potential sector contributions (PSC) for a stock and then 
multiplying that total percentage by the available commercial sub-
annual catch limit (sub-ACL) for that stock. Table 3 shows the 
projected total PSC for each sector by stock for fishing year 2018. 
Table 4 shows an estimate of the allocations that each sector is 
allocated, in pounds and metric tons, respectively, for fishing year 
2018.

            Table 3--Cumulative PSC (Percentage) for NEFS 7 and NEFS 9 by Stock for Fishing Year 2018
----------------------------------------------------------------------------------------------------------------
                            Species                                      NEFS 7                   NEFS 9
----------------------------------------------------------------------------------------------------------------
GB Cod........................................................        13.20690936349290       0.0362859749871986
GOM Cod.......................................................         3.01910742037318       0.0000000000000000
GB Haddock....................................................         11.2685073680510       0.0259765497865176
GOM Haddock...................................................         7.40318927053197       0.0000000000000000
GB Yellowtail Flounder........................................        25.51455362936140       0.0275501100708375
SNE/MA Yellowtail Flounder....................................         8.53317090461840       0.0000000000000000
CC/GOM Yellowtail Flounder....................................        10.56678059758250       0.0118856525483093
Plaice........................................................         9.61237900717373       0.0013210183240834
Witch Flounder................................................         9.33559754356342       0.0000000000000000
GB Winter Flounder............................................        33.29143002089540       0.0883620482300341
GOM Winter Flounder...........................................         2.94812548603488       0.0000000000000000
SNE/MA Winter Flounder........................................        17.56207969721130       0.0107895691382281
Redfish.......................................................         9.05128922223861       0.0000000000000000
White Hake....................................................         6.37760020543757       0.0000000000000000
Pollock.......................................................         6.34572003847383       0.0007489254483443
----------------------------------------------------------------------------------------------------------------


        Table 4--Estimated ACE for NEFS 7 and NEFS 9 (in mt and 1,000 lb) by Stock for Fishing Year 2018
----------------------------------------------------------------------------------------------------------------
                                                              NEFS 7                          NEFS 9
                                                 ---------------------------------------------------------------
                     Species                        Sector ACE      Sector ACE      Sector ACE      Sector ACE
                                                       (mt)         (1,000 lb)         (mt)         (1,000 lb)
----------------------------------------------------------------------------------------------------------------
GB Cod East.....................................              34              75               0               0
GB Cod West.....................................             124             273               0               1
GOM Cod.........................................              11              24               0               0
GB Haddock East.................................           1,758           3,875               4               9
GB Haddock West.................................           3,274           7,219               8              17
GOM Haddock.....................................             647           1,426               0               0
GB Yellowtail Flounder..........................              43              95               0               0
SNE/MA Yellowtail Flounder......................               4               8               0               0
CC/GOM Yellowtail Flounder......................              42              93               0               0
Plaice..........................................             152             335               0               0
Witch Flounder..................................              77             171               0               0
GB Winter Flounder..............................             243             536               1               1
GOM Winter Flounder.............................              11              23               0               0
SNE/MA Winter Flounder..........................              91             201               0               0
Redfish.........................................             973           2,146               0               0
White Hake......................................             174             385               0               0
Pollock.........................................           2,373           5,232               0               1
----------------------------------------------------------------------------------------------------------------

    Based on regulations at Sec.  648.87(b)(1)(iii), should an ACE 
allocated to a sector be exceeded in a given fishing year, the sector's 
ACE shall be reduced by the overage on a pound-for-pound basis during 
the following fishing year. If a sector has an overage, but disbands in 
the year following the overage, the overage follows the permits to the 
new sector(s) or to the common pool. If the sector does not disband, 
but does not have sufficient ACE to pay back the overage, the sector's 
ACE for that stock is set to zero until the sector can acquire 
sufficient ACE to cover the remaining overage.
    Therefore, if NEFS 9 has remaining overages from fishing year 2017, 
following any transfers conducted during a 2-week transfer window after 
all year-end catch accounting is complete (see section on NEFS 9 
Operations Plan for more detail), NEFS 9's 2018 ACE would be reduced by 
the overage on a pound-for-pound basis. However, because the permits 
enrolled in NEFS 9 for 2018 have zero PSC for witch flounder, the 
sector would be allocated zero pounds of witch flounder. Therefore, if 
the sector has a remaining overage from fishing year 2017, it would 
begin fishing year 2018 with a negative balance of witch flounder. The 
Board of NEFS 7 has agreed that if the NEFS 9 overage cannot be 
reconciled during the post-year transfer window, NEFS 7 will

[[Page 34496]]

transfer sufficient 2018 witch flounder ACE to NEFS 9 to cover the 
remaining overage. This commitment is included in the amendment to the 
NEFS 7 operations plan, as described later in this preamble.

NEFS 9 Sector Operations Plan

    In this interim final rule, we are approving NEFS 9's sector 
operations plan and contract to operate as a lease-only sector. When 
the Regional Administrator withdrew approval of the NEFS 9 operations 
plan in November 2017, we cited accurate reporting, internal 
accountability, and organizational integrity as core principles of the 
sector system that were lacking in NEFS 9, as evidenced by the 
systematic and long-term sector and vessel misreporting. The operations 
plan was withdrawn, in part, because it did not contain measures that 
would provide accurate information or ensure compliance with the 
operations plan to prevent and address future misreporting or ACE 
overages. Restricting the sector to only being able to participate in 
the groundfish fishery through ACE transfers with other sectors 
addresses our concerns about the sector's ability to harvest groundfish 
and monitor and report that activity, consistent with the goals and 
objectives of the FMP. As a lease-only sector, NEFS 9 vessels cannot 
actively fish for groundfish, but the sector is allowed to transfer 
groundfish quota to and from other sectors, which will facilitate the 
sector's accounting for its ACE and overages. Based on this, we have 
determined that the lease-only sector operations plan and contract is 
consistent with the FMP's goals and objectives, and meets sector 
requirements outlined in the regulations at Sec.  648.87.
    The lease-only operations plan is a change from the previous 
operations plan for NEFS 9, for which the Regional Administrator 
withdrew approval. However, it is similar to the currently approved 
operations plan for NEFS 4, which also operates as a lease-only sector. 
An approved lease-only operations plan provides NEFS 9 with the ability 
to pay back the quota overage incurred by misreported catch. Without a 
new operations plan, NEFS 9 has no mechanism for reconciling the 
overages for which it is responsible. In April 2018, we consulted with 
the New England Fishery Management Council regarding NEFS 9, and the 
Council passed a motion to recommend that NMFS authorize the NEFS 9 
lease-only operations plan to ensure the repayment of the NEFS 9 
overage, as well as amend the NEFS 7 operations plan as needed and 
appropriately allocate to the sectors.
    Because this interim final rule approves a lease-only sector 
operations plan for NEFS 9, the sector has the ability to eliminate the 
overage by transferring quota in from other sectors. We will allow NEFS 
9 to transfer fishing year 2017 ACE for 2 weeks upon our completion of 
year-end catch accounting for all sectors to reduce or eliminate any 
fishing year 2017 overages. As provided by the regulations, this window 
of post-year transfers is opened annually. During this time, sectors 
are only allowed to transfer in quota to reconcile an overage. Quota 
for stocks that do not have an overage may not be transferred.

NEFS 7 Amendment to Operations Plan

    In this interim final rule, we are approving an amendment to the 
NEFS 7 sector operations plan. As described above, on March 26, 2018, 
NEFS 7 submitted a roster for the 2018 fishing year, indicating that 55 
of the 60 permits previously enrolled into NEFS 9 would move into NEFS 
7, in addition to one vessel from NEFS 8. No vessels that had been 
enrolled in NEFS 7 for the 2017 fishing year remained in NEFS 7 for 
2018. All 56 vessels enrolled in NEFS 7 for 2018 are listed as 
inactive. The NEFS 7 Board of Directors voted, as part of its process 
to allow vessels to enroll in the sector, to add a permit condition 
requiring all permits in which Mr. Rafael has an ownership interest to 
remain inactive and unable to fish in the groundfish fishery unless and 
until the permit is sold to an independent third party. By approving 
this permit condition as part of the NEFS 7 operations plan (along with 
the quota allocations described earlier), NEFS 7 is able to transfer 
ACE to and from other sectors in the 2018 fishing year, but vessels 
owned by Mr. Rafael cannot actively fish for groundfish.
    All of the vessels that are enrolled in NEFS 7 and in which Mr. 
Rafael has no ownership interest are currently listed as inactive 
members of the sector. To become active, the sector Board would have to 
vote to allow a vessel to harvest sector ACE, consistent with normal 
sector operations, and notify NMFS of the vessel change in status. In 
contrast to the vessels owned by Mr. Rafael, these vessels do not need 
to be sold in order to be active in the groundfish fishery.
    To facilitate and enforce the requirement for a vessel owned by Mr. 
Rafael to be sold to an independent third party before it could become 
active, the Board initially requested that we withhold LOAs for those 
permits until a permit is sold to an independent third party, the new 
member requests in writing that the Board reconsider non-active status, 
and the NEFS 7 Board grants active status to the new member. However, 
current regulations at Sec.  648.87(c)(2) state that, if a sector is 
approved, the Regional Administrator shall issue an LOA to each vessel 
operator and/or vessel owner participating in the sector, authorizing 
participation in the sector operations. The regulations allow the 
Regional Administrator to include requirements and conditions necessary 
to ensure effective administration and compliance with the sector's 
operations plan and the sector allocation. Therefore, the NEFS 7 
amendment includes clarification that we will issue LOAs to vessels 
indicating that they are inactive. If the required steps are taken for 
a vessel to become active, we will issue a new LOA authorizing 
participation in the groundfish fishery.
    NEFS 7's initial proposal did not identify the factors by which the 
Board would determine the new owner is independent of Mr. Rafael. 
Historically, NMFS uses several factors to determine whether a transfer 
or sale of a permit appears to be between separate legal entities. 
These include, but are not limited to: Whether the transfer appears to 
be an ``arm's length'' transaction to an independent person or entity 
in which the current owner, subsidiary, partner, officer, director, 
trustee, shareholder or any of their family members does not have any 
financial interest or any control; whether the transferor/seller derive 
any financial benefits from the operations of the vessel after it is 
transferred; whether the transferor/seller exercises any control over 
the activities or operation of the vessel after it is transferred; and 
whether there are any common shareholders, partners, or investors with 
significant overlapping ownership interests in both the transferor/
seller and the transferee/buyer. The NEFS 7 Board of Directors has 
incorporated these factors into the amendment to the NEFS 7 operations 
plan as conditions for Board approval of new owners to provide 
sufficient Board oversight controls and avoid confusion regarding 
whether a sale meets the requirement of being an independent third 
party.
    As stated earlier in this preamble, the Board of NEFS 7 has 
committed that if the NEFS 9 overage cannot be reconciled during the 
2017 post-year transfer window, NEFS 7 will transfer sufficient 2018 
witch flounder ACE to NEFS 9 to cover the overage, and this is included 
in the amendment to the NEFS 7 operations plan.
    The NEFS 7 operations plan amendment addresses the operational

[[Page 34497]]

issues that required withdrawal of the prior NEFS 9 operations plan. 
Approval of an operations plan that provides for paying back all of the 
overages incurred by vessels in NEFS 9 ensures that the sector is 
operating properly within the sector system and within all ACE that is 
properly allocated. The vertical integration between Mr. Rafael's 
vessels, his seafood dealership, and sector governance that facilitated 
the falsification of landing records would no longer exist with new 
independent vessel owners.
    These changes to the operations plan meet the goals and objectives 
of the FMP and the sector system. We will evaluate any changes made to 
NEFS 7 and 9 membership and vessel ownership, using the criteria 
detailed above, to ensure the sector's operations remain consistent 
with its operations plan and the goals and objectives of the FMP. 
Additional substantive changes to the NEFS 7 operations plan that are 
requested, or determined to be necessary, would be addressed in a 
future rulemaking.

Classification

    The NMFS Assistant Administrator has preliminarily determined that 
this interim final rule is consistent with the Northeast Multispecies 
FMP, other provisions of the Magnuson-Stevens Act, and other applicable 
law.
    This interim final rule is exempt from the procedures of Executive 
Order (E.O.) 12866 because this action contains no implementing 
regulations.
    This interim final rule does not contain policies with Federalism 
or ``takings'' implications as those terms are defined in E.O. 13132 
and E.O. 12630, respectively.
    Pursuant to 5 U.S.C. 553(b)(B), the Assistant Administrator for 
Fisheries (AA) finds good cause to waive prior notice and the 
opportunity for public comment on approval of the NEFS 9 lease-only 
operations plan, and approval of the amendment to the NEFS 7 operations 
plan because it would be contrary to the public interest. Additionally, 
the AA finds there is good cause, under 5 U.S.C. 553(d)(1) and (3), to 
waive the 30-day delay in effectiveness for the allocation of annual 
catch entitlements (ACE) for fishing year 2018 to NEFS 7 and 9, 
approval of the NEFS 9 lease-only operations plan, and approval of the 
amendment to the NEFS 7 operations plan so that the purpose of this 
rule is not undermined.
    Approving the NEFS 9 lease-only operations plan relieves the 
prohibition against operating and provides a mechanism for NEFS 9 to 
reconcile its witch flounder overage through the 2017 year-end transfer 
window and address its quota overage for witch flounder. Any overage 
remaining after this transfer window must be reconciled via an ACE 
transfer from NEFS 7, in order for NEFS 7 to remain in compliance with 
the operations plan amendment approved by this rule. As a result, 
implementing these measures immediately ensures that proper catch and 
ACE accounting occur. This is fundamental to achieving the goals and 
objectives of the FMP.
    We previously proposed and accepted comment on allocating 
groundfish quota to NEFS 7 and 9 (83 FR 12706; March 23, 2018). 
Additionally, before taking this action, we consulted with the New 
England Council at its April 2018 meeting, at which the Council 
recommended that we approve the sectors' operations plan requests. This 
consultation provided the Council and interested members of the public 
an opportunity to comment on NEFS 7's and 9's potential operations plan 
changes and an additional opportunity to comment on the allocation of 
quota to both sectors. At this meeting, the Council recommended that we 
ensure the repayment of the NEFS 9 overage, approve the NEFS 9 lease-
only operations plan, amend the NEFS 7 operations plan as needed, and 
appropriately allocate to the sectors. The Council also explained the 
importance of making quota available to the fishery at-large. Some 
stocks, such as Georges Bank winter flounder, have a significant 
seasonal component, and therefore there is additional benefit to making 
this quota available to the fishery as a whole as soon as possible.
    The ACEs being allocated to NEFS 7 and 9 represent between 3 
percent and 33 percent of the total quota for each allocated stock. 
Continuing to withhold this amount of quota from the fishery 
significantly hampers the ability of the fishery as a whole to operate. 
This quota is particularly important due to recent stock assessments 
that resulted in reduced overall quotas for several stocks, including 
Southern New England/Mid-Atlantic yellowtail flounder (75-percent 
reduction), Gulf of Maine winter flounder (45-percent reduction), and 
white hake (20-percent reduction). Further delaying allocations to NEFS 
7 and NEFS 9 significantly reduces the quota for these stocks available 
for transfer to other sectors engaged in fishing. This reduces catch of 
these as target stocks and also impacts catch of more abundant stocks 
like haddock and pollock, which catch these limiting stocks as bycatch. 
This, together with the benefit of ensuring that all quota overages 
that resulted from Mr. Rafael's criminal misreporting are reconciled, 
outweigh the benefits of allowing for additional public comment prior 
to effectiveness, beyond that which we already received on the March 
23, 2018, proposed rule (83 FR 12706) and through consultation with the 
Council.
    This interim final rule is exempt from the procedures of the 
Regulatory Flexibility Act because the rule is issued without 
opportunity for prior notice and opportunity for public comment.

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

    Dated: July 16, 2018.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
[FR Doc. 2018-15477 Filed 7-19-18; 8:45 am]
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                                             34492                Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Rules and Regulations

                                             which the applicant proposes to                          PART 30—UPPER MICROWAVE                               on all frequencies within those
                                             operate.                                                 FLEXIBLE USE SERVICE                                  particular bands. Mobile and
                                                (b) Any U.S. licensee or permittee                                                                          transportable stations that operate on
                                                                                                      ■ 17. The authority citation for part 30              any portion of either the 24.25–24.45
                                             authorized to transmit in the 17.3–17.8                  continues to read as follows:
                                             GHz band that does not comply with the                                                                         GHz or 24.75–25.25 GHz bands must be
                                             power flux-density limits set forth in                     Authority: 47 U.S.C. 151, 152, 153, 154,            capable of operating on all frequencies
                                             § 25.208(c) and/or § 25.208(w) shall bear                301, 303, 304, 307, 309, 310, 316, 332, 1302.         within both of those bands.
                                             the burden of coordinating with any                      ■ 18. Amend § 30.104 by revising the                  [FR Doc. 2018–14806 Filed 7–19–18; 8:45 am]
                                             future co-frequency licensees and                        section heading, redesignating                        BILLING CODE 6712–01–P
                                             permittees of a space station                            paragraphs (b) through (e) as paragraphs
                                             transmitting in the 17.3–17.8 GHz band                   (c) through (f), adding new paragraph
                                             under the following circumstances:                       (b), and revising newly redesignated
                                                                                                      paragraphs (c), (e), and (f) to read as               DEPARTMENT OF COMMERCE
                                                (1) If the operator’s space-to-Earth
                                                                                                      follows:                                              National Oceanic and Atmospheric
                                             power flux-density levels exceed the
                                             power flux-density limits set forth in                   § 30.104   Performance requirements.                  Administration
                                             § 25.208(c) and/or § 25.208(w) by 3 dB                   *      *     *     *     *
                                             or less, the operator shall bear the                        (b) In the alternative, a licensee may             50 CFR Part 648
                                             burden of coordinating with any future                   make its buildout showing on the basis                [Docket No. 180220196–8196–01]
                                             operators proposing a space station                      of geographic area coverage. To satisfy
                                             transmitting in the 17.3–17.8 GHz band                   the requirements of using this metric,                RIN 0648–XG051
                                             in compliance with power flux-density                    licensees relying on mobile or point-to-
                                             limits set forth in § 25.208(c) and/or                   multipoint service must show that they                Magnuson-Stevens Act Provisions;
                                             § 25.208(w) and located within ±6                        are providing reliable signal coverage                Fisheries of the Northeastern United
                                             degrees of the operator’s 17/24 GHz BSS                  and service to at least 25% of the                    States; Northeast Multispecies
                                             space station.                                           geographic area of the license. The                   Fishery; 2018 Sector Operations Plans
                                                (2) If the operator’s space-to-Earth                  geographic area of the license shall be               and Allocation of Northeast
                                             power flux-density levels exceed the                     determined by the total land area of the              Multispecies Annual Catch
                                             power flux-density limits set forth in                   county or counties covered by the                     Entitlements
                                             § 25.208(c) and/or § 25.208(w) by more                   license. Licensees relying on fixed                   AGENCY:  National Marine Fisheries
                                             than 3 dB, the operator shall bear the                   point-to-point links or other, low-power              Service (NMFS), National Oceanic and
                                             burden of coordinating with any future                   point-to-point connections must show                  Atmospheric Administration (NOAA),
                                             operators proposing a space station                      that they have deployed at least one                  Commerce.
                                             transmitting in the 17.3–17.8 GHz band                   transmitter or receiver in at least 25% of
                                                                                                                                                            ACTION: Interim final rule; request for
                                             in compliance with power flux-density                    the census tracts within the license area.
                                                                                                                                                            comments.
                                             limits set forth in § 25.208(c) and/or                   All equipment relied upon in the
                                             § 25.208(w) and located within ±10                       showing, whatever type of service or                  SUMMARY:   This interim final rule
                                             degrees of the operator’s space station.                 connection it provides, must be                       determines the quota overages that
                                                (3) If no good faith agreement can be                 operational and providing service,                    Northeast Fishery Sector IX is
                                             reached, the operator of the space                       either to customers or for internal use,              responsible for paying back, allocates
                                             station transmitting in the 17.3–17.8                    as of the date of the filing.                         annual catch entitlements to Northeast
                                             GHz band that does not comply with                          (c) Showings that rely on a                        Fishery Sectors VII and IX for the 2018
                                             § 25.208(c) and/or § 25.208(w) shall                     combination of multiple types of service              fishing year, approves a new lease-only
                                             reduce its space-to-Earth power flux-                    will be evaluated on a case-by-case                   operations plan for Northeast Fishery
                                             density levels to be compliant with                      basis. Licensees may not combine                      Sector IX, and approves a substantive
                                             those specified in § 25.208(c) and/or                    population-based showings with                        amendment to Northeast Fishery Sector
                                             § 25.208(w).                                             geographic area-based showings.                       VII operations plan. Approval of the
                                                (c) Any U.S. licensee or permittee                    *      *     *     *     *                            operations plans and allocation of
                                             using a space station transmitting in the                   (e) Failure to meet this requirement               annual catch entitlements is necessary
                                             17.3–17.8 GHz band that is required to                   will result in automatic cancellation of              for the sectors to operate. This action is
                                             provide information in its application                   the license. In bands licensed on a                   intended to ensure that these sectors are
                                             pursuant to § 25.140(b)(4) must accept                   Partial Economic Area basis, licensees                allocated accurate annual catch
                                             any increased interference that may                      will have the option of partitioning a                entitlements that account for past catch
                                             result from adjacent space stations                      license on a county basis in order to                 overages, and that the sectors’
                                             transmitting in the 17.3–17.8 GHz band                   reduce the population or land area                    operations plans can achieve the
                                             that are operating in compliance with                    within the license area to a level where              conservation and management
                                             the rules for such space stations                        the licensee’s buildout would meet one                objectives of the Northeast Multispecies
                                             specified in §§ 25.140(b), 25.202(a)(9)                  of the applicable performance metrics.                Fishery Management Plan.
                                             and (e)–(g), 25.208(c) and (w), 25.210(i)–                  (f) Existing 24 GHz, 28 GHz and 39                 DATES: Effective July 20, 2018 through
                                             (j), 25.224, 25.262, 25.264(h), and                      GHz licensees shall be required to make               April 30, 2019. Comments must be
                                             25.273(a)(3)).                                           a showing pursuant to this section by                 received on or before August 20, 2018.
                                                                                                      June 1, 2024.
                                                (d) Notwithstanding the provisions of                                                                       ADDRESSES: You may submit comments
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                                                                                                      ■ 19. Revise § 30.208 to read as follows:
                                             this, licensees and permittees will be                                                                         on this document, identified by NOAA–
                                             allowed to apply for a license or                        § 30.208   Operability.                               NMFS–2018–0069, by either of the
                                             authorization for a replacement satellite                  Mobile and transportable stations that              following methods:
                                             that will be operated at the same power                  operate on any portion of frequencies                    • Electronic Submission: Submit all
                                             level and interference protection as the                 within the 27.5–28.35 GHz or the 37–40                electronic public comments via the
                                             satellite to be replaced.                                GHz bands must be capable of operating                Federal e-Rulemaking Portal. Go to


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                                                                  Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Rules and Regulations                                          34493

                                             www.regulations.gov/                                     sector enforcement measures for                       approval. The operations plan would
                                             #!docketDetail;D=NOAA-NMFS-2018-                         operations plan breaches and remedies,                allow the sector to operate as a ‘‘lease-
                                             0069, click the ‘‘Comment Now!’’ icon,                   such as a penalty schedule for                        only’’ sector. As a lease-only sector,
                                             complete the required fields, and enter                  operations plan non-compliance or                     NEFS 9 vessels could not actively fish
                                             or attach your comments.                                 other actions that would jeopardize the               for groundfish, but the sector would be
                                                • Mail: Submit written comments to                    sector’s continued approval. Penalties                allowed to transfer groundfish quota to
                                             Michael Pentony, Regional                                under the plan range from a written                   and from other sectors. NEFS 9 vessels
                                             Administrator, 55 Great Republic Drive,                  warning or fine to expulsion from the                 could continue to fish for other species
                                             Gloucester, MA 01930. Mark the outside                   sector.                                               not managed under the Northeast
                                             of the envelope, ‘‘Comments on                              On March 30, 2017, Carlos Rafael                   Multispecies FMP for which they have
                                             Rulemaking for NEFS 7 and NEFS 9.’’                      pleaded guilty to all counts in United                permits, such as scallops, summer
                                                Instructions: Comments sent by any                    States v. Carlos Rafael (No. 16–                      flounder, and squid.
                                             other method, to any other address or                    CR10124–WGY). Mr. Rafael is the owner                    On March 26, 2018, NEFS 7 and NEFS
                                             individual, or received after the end of                 of Carlos Seafood (a Federally permitted              9 submitted rosters for the 2018 fishing
                                             the comment period, may not be                           dealer) and a fleet of Federally                      year, indicating that 55 of the 60 permits
                                             considered by NMFS. All comments                         permitted groundfish vessels that are                 previously enrolled into NEFS 9 would
                                             received are a part of the public record                 enrolled in Northeast Fishery Sector IX               move into NEFS 7. Only three permits
                                             and will generally be posted for public                  (NEFS 9). Mr. Rafael admitted to falsely              remain in NEFS 9. Consistent with
                                             viewing on www.regulations.gov                           reporting catch information on dealer                 sector eligibility requirements these
                                             without change. All personal identifying                 catch reports and vessel trip reports                 permits are issued to at least three
                                             information (e.g., name, address, etc.),                 from 2012 through 2015. All of the                    different persons, none of whom have
                                             confidential business information, or                    vessels involved in the misreporting                  any common ownership interests in the
                                             otherwise sensitive information                          operated under the sector operations                  permits, vessels, or businesses
                                             submitted voluntarily by the sender will                 plan for NEFS 9 during the period of                  associated with the permits issued the
                                             be publicly accessible. NMFS will                        known misreporting, were enrolled in                  other two or more persons in the sector.
                                             accept anonymous comments (enter ‘‘N/                    NEFS 9 for fishing year 2017, and are                 NEFS 7’s submitted roster included new
                                             A’’ in the required fields if you wish to                now enrolled in Northeast Fishery                     members enrolled with the condition
                                             remain anonymous).                                       Sector VII (NEFS 7) for fishing year                  that all permits owned by Mr. Rafael
                                                Copies of each sector’s operations                    2018.                                                 would be inactive and unable to fish in
                                             plan and contract, as well as the                           On September 25, 2017, Mr. Rafael                  the groundfish fishery unless and until
                                             programmatic environmental                               was sentenced to serve 46 months in                   the permit was sold to an independent
                                             assessment for sectors operations in                     prison and 3 years of supervised release.             third party. In order to implement and
                                             fishing years 2015 to 2020, are available                During his supervised release, he is                  enforce this condition, the sector
                                             from the NMFS Greater Atlantic                           barred from working in the fishing                    requested that, until such a sale
                                             Regional Fisheries Office (GARFO):                       industry. The Court also ordered Mr.                  occurred, we withhold the letters of
                                             Michael Pentony, Regional                                Rafael to pay a fine of $200,000 and                  authorization (LOA). LOAs are issued to
                                             Administrator, National Marine                           forfeited Mr. Rafael’s interests in four              all vessel owners or operators
                                             Fisheries Service, 55 Great Republic                     fishing vessels used in the criminal                  participating in a sector and authorize
                                                                                                      violations, including all fishing permits             participation in sector operations.
                                             Drive, Gloucester, MA 01930. These
                                                                                                      that NMFS issued to the four vessels.                 Because this permit condition is a
                                             documents are also accessible via the
                                                                                                         As a result of Mr. Rafael’s violations,            substantive change to the operations
                                             GARFO website: https://                                  NEFS 9 was operating without having
                                             www.greateratlantic.fisheries.noaa.gov/                                                                        plan, it requires rulemaking.
                                                                                                      accurately accounted for its available                   On May 1, 2018, we allocated
                                             sustainable/species/multispecies/.                       ACE. Further, the violations revealed a               groundfish quota to all sectors except
                                             FOR FURTHER INFORMATION CONTACT: Liz                     failure of adequate sector oversight and              NEFS 7 and NEFS 9. In that rule, we
                                             Sullivan, Fishery Policy Analyst, (978)                  accounting. On November 22, 2017, we                  provided a summary of the NEFS 7 and
                                             282–8493.                                                published an interim final rule to                    9 roster changes, but we did not make
                                             SUPPLEMENTARY INFORMATION:                               withdraw approval of the Fishing Years                a determination regarding allocations to
                                                                                                      2017 and 2018 Sector Operations Plan                  those two sectors (83 FR 18965; May 1,
                                             Background
                                                                                                      for NEFS 9 (82 FR 55522). This                        2018). Before making this
                                                To help achieve the fishing mortality                 withdrawal was a necessary                            determination, we needed more
                                             and conservation objectives of the                       administrative action because NEFS 9                  information about, and time to evaluate
                                             Northeast Multispecies Fishery                           and its participants failed to uphold the             how, NEFS 7 and NEFS 9 would operate
                                             Management Plan (FMP), each sector is                    requirements of the sector operations                 and account for the past overages, and
                                             allocated annual catch entitlements                      plan and adequately respond to Mr.                    notified the public that these issues
                                             (ACE) and must ensure that these ACEs                    Rafael’s violations. Without accurate                 would be included in a separate
                                             are not exceeded. The Regional                           catch and ACE accounting, effective                   rulemaking.
                                             Administrator must approve sector                        monitoring, or internal governance, we
                                             operations plans in order for sectors to                 determined that continuation of the                   NEFS 9 Overages Due to Misreported
                                             operate and be allocated ACE for                         sector would undermine conservation                   Catch
                                             specific groundfish stocks. A sector’s                   and management objectives of the FMP.                    When we withdrew approval of NEFS
                                             operations plan includes a detailed plan                 With the disapproval of the sector’s                  9 in November 2017, the interim final
                                             for monitoring and reporting catch and                                                                         rule stated that initial allocations made
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                                                                                                      operation plan, the members of NEFS 9
                                             the specific management rules sector                     are not allowed to fish for groundfish,               to the sector at the start of the 2017
                                             participants will abide by in order to                   and the sector cannot transfer quota to               fishing year were likely artificially high,
                                             avoid exceeding the sector’s allocation,                 or from other sectors.                                and that it was possible that the sector’s
                                             as well as a plan for how the sector will                   On February 22, 2018, the NEFS 9                   2017 catch might have already exceeded
                                             operate if an ACE is exceeded. The                       Board of Directors submitted a new                    what should have been allocated. Based
                                             operations plan also includes internal                   sector operations plan for review and                 on analysis to assess the stock-level


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                                             34494                        Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Rules and Regulations

                                             apportionment of the misreported catch                                     permitted to harvest groundfish after the                                  72,224 lb (32.8 mt) of witch flounder.
                                             discovered in the criminal case, NEFS 9                                    sector operations plan was withdrawn                                       This interim final rule announces the
                                             ended the 2016 fishing year with quota                                     in November, the sector was prevented                                      NEFS 9 fishing year 2017 balances for
                                             overages for witch flounder, American                                      from creating further overages, and                                        the stocks affected by the criminal case,
                                             plaice, Georges Bank (GB) cod, and Cape                                    unfished 2017 ACE reduced or                                               as shown in Tables 1 and 2: Witch
                                             Cod/Gulf of Maine (CC/GOM) yellowtail                                      eliminated the quota overages                                              flounder, American plaice, GB cod,
                                             flounder (Tables 1 and 2). We allocated                                    determined from admissions in the                                          GOM cod, GB yellowtail flounder,
                                             ACE to NEFS 9 for fishing year 2017                                        criminal case. After accounting for                                        Southern New England/Mid-Atlantic
                                             without any adjustments, because, at                                       NEFS 9’s available 2017 ACE after                                          (SNE/MA) yellowtail flounder, and CC/
                                             that time, we had not yet determined                                       operations were suspended, we
                                                                                                                                                                                                   GOM yellowtail flounder.
                                             the overages caused by the misreported                                     determined that NEFS 9 ended the 2017
                                             catch. Because NEFS 9 was not                                              fishing year with a single overage of

                                                                       TABLE 1—SUMMARY OF NEFS 9 BALANCES (lb) AT END OF FISHING YEARS 2016 AND 2017
                                                                                                                                                                                                                          Balance at     Balance at
                                                                                                                                                                                                                            end of         end of
                                                                                                                             Stock                                                                                       fishing year   fishing year
                                                                                                                                                                                                                             2016           2017

                                             Witch flounder ..........................................................................................................................................................      ¥218,682        ¥72,224
                                             American plaice .......................................................................................................................................................        ¥115,789         12,867
                                             Eastern GB cod .......................................................................................................................................................            1,378         38,366
                                             Western GB cod ......................................................................................................................................................           ¥14,582         56,258
                                             GOM cod .................................................................................................................................................................         1,176         18,322
                                             GB yellowtail flounder ..............................................................................................................................................           130,589         88,674
                                             SNE/MA yellowtail flounder .....................................................................................................................................                 31,238         44,053
                                             CC/GOM yellowtail flounder ....................................................................................................................................                 ¥23,229         40,866
                                                * Negative number indicates an overage.

                                                                       TABLE 2—SUMMARY OF NEFS 9 BALANCES (mt) AT END OF FISHING YEARS 2016 AND 2017
                                                                                                                                                                                                                          Balance at     Balance at
                                                                                                                                                                                                                            end of         end of
                                                                                                                             Stock                                                                                       fishing year   fishing year
                                                                                                                                                                                                                             2016           2017

                                             Witch flounder ..........................................................................................................................................................           ¥99            ¥33
                                             American plaice .......................................................................................................................................................             ¥53              6
                                             Eastern GB cod .......................................................................................................................................................                1             17
                                             Western GB cod ......................................................................................................................................................                ¥7             26
                                             GOM cod .................................................................................................................................................................             1              8
                                             GB yellowtail flounder ..............................................................................................................................................                59             40
                                             SNE/MA yellowtail flounder .....................................................................................................................................                     14             20
                                             CC/GOM yellowtail flounder ....................................................................................................................................                     ¥11             19
                                                * Negative number indicates an overage.


                                                To calculate the overages, we applied                                   since November 20, 2017, NEFS 9 ended                                      Allocating the misreported catch to
                                             the misreported catch to the appropriate                                   fishing year 2017 with an overage for                                      stock area requires estimating the stock
                                             fishing year, as if we had known about                                     witch flounder only.                                                       areas where the misreported catch was
                                             the catch during or immediately                                                                                                                       likely to have been caught.
                                                                                                                        Catch Apportionment Calculations
                                             following the end of each fishing year.                                                                                                                  To apportion the misreported catch to
                                             If the misreported catch caused an                                            As part of calculating the overages, we                                 the appropriate stock areas, we used
                                             overage in a particular fishing year, we                                   first correctly apportioned the                                            data from the vessel monitoring systems
                                             deducted the overage from the sector’s                                     misreported catch that was presented in                                    (VMS) used by the vessels that were
                                             allocation for the next fishing year. If                                   the criminal case at a species level,
                                                                                                                                                                                                   named in the criminal case to identify
                                             the sector carried over quota into a                                       broken down by calendar year. This
                                                                                                                                                                                                   the most likely stock area from which
                                             fishing year that it should not have, we                                   required distributing the misreported
                                             removed the carryover that would not                                       catch into the appropriate fishing year,                                   that catch originated. We scaled the
                                             have been available had we known                                           based on the landing date for trips                                        VMS effort by annual average catch-per-
                                             about the additional catch. Misreported                                    associated with the misreported catch.                                     hour from observed groundfish trips by
                                             catch occurred in fishing years 2012–                                      Witch flounder and American plaice are                                     all sector vessels using trawl gear, to
                                             2015. We applied the resulting overages                                    unit stocks, and therefore, no further                                     account for the different catch rate in
                                             from 2015 to 2016 allocations and from                                     analysis was required. However, cod                                        different stock areas. The correctly
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                                             2016 to 2017 allocations. As stated                                        and yellowtail flounder are subdivided                                     apportioned catch by time and area was
                                             earlier, NEFS 9 ended the 2016 fishing                                     into management stock units. For cod,                                      then applied to the allocated ACEs for
                                             year with multiple overages. Because we                                    the sub-units are GOM and GB; GB is                                        the years in question to determine the
                                             withdrew approval of the sector’s                                          further divided into eastern and western                                   overage amounts.
                                             operations plan, and NEFS 9 vessels                                        GB. For yellowtail flounder, the sub-
                                             have not been able to fish for groundfish                                  units are CC/GOM, GB, and SNE/MA.


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                                                                           Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Rules and Regulations                                                                          34495

                                             Sector Allocations for Fishing Year                                         the fishing year 2018 specifications                                      sector’s allocation for each stock by
                                             2018 for NEFS 7 and NEFS 9                                                  approved through Framework 57 (83 FR                                      summing its members’ potential sector
                                                                                                                         18985; May 1, 2018). These allocations                                    contributions (PSC) for a stock and then
                                                As stated above, on May 1, 2018, we                                      use updated rosters and are slightly                                      multiplying that total percentage by the
                                             allocated groundfish quota to all sectors                                   different from the rule that proposed                                     available commercial sub-annual catch
                                             except NEFS 7 and NEFS 9 and did not                                        allocations for all sectors (83 FR 12706;                                 limit (sub-ACL) for that stock. Table 3
                                             make a determination regarding                                              March 23, 2018), which used the fishing                                   shows the projected total PSC for each
                                             allocating to those two sectors (83 FR                                      year 2017 sector rosters as a basis to                                    sector by stock for fishing year 2018.
                                             18965; May 1, 2018). This rule allocates                                    estimate fishing year 2018 sector                                         Table 4 shows an estimate of the
                                             groundfish quota to NEFS 7 and to                                           allocations.                                                              allocations that each sector is allocated,
                                             NEFS 9, based on the final sector                                              Consistent with how ACE is allocated                                   in pounds and metric tons, respectively,
                                             enrollment submitted by the sectors and                                     to all other sectors, we calculate the                                    for fishing year 2018.

                                                         TABLE 3—CUMULATIVE PSC (PERCENTAGE) FOR NEFS 7 AND NEFS 9 BY STOCK FOR FISHING YEAR 2018
                                                                                                             Species                                                                                 NEFS 7                       NEFS 9

                                             GB Cod ....................................................................................................................................       13.20690936349290         0.0362859749871986
                                             GOM Cod .................................................................................................................................          3.01910742037318         0.0000000000000000
                                             GB Haddock ............................................................................................................................            11.2685073680510         0.0259765497865176
                                             GOM Haddock .........................................................................................................................              7.40318927053197         0.0000000000000000
                                             GB Yellowtail Flounder ............................................................................................................               25.51455362936140         0.0275501100708375
                                             SNE/MA Yellowtail Flounder ...................................................................................................                     8.53317090461840         0.0000000000000000
                                             CC/GOM Yellowtail Flounder ..................................................................................................                     10.56678059758250         0.0118856525483093
                                             Plaice .......................................................................................................................................     9.61237900717373         0.0013210183240834
                                             Witch Flounder .........................................................................................................................           9.33559754356342         0.0000000000000000
                                             GB Winter Flounder .................................................................................................................              33.29143002089540         0.0883620482300341
                                             GOM Winter Flounder .............................................................................................................                  2.94812548603488         0.0000000000000000
                                             SNE/MA Winter Flounder ........................................................................................................                   17.56207969721130         0.0107895691382281
                                             Redfish .....................................................................................................................................      9.05128922223861         0.0000000000000000
                                             White Hake ..............................................................................................................................          6.37760020543757         0.0000000000000000
                                             Pollock .....................................................................................................................................      6.34572003847383         0.0007489254483443


                                                     TABLE 4—ESTIMATED ACE FOR NEFS 7 AND NEFS 9 (IN mt AND 1,000 lb) BY STOCK FOR FISHING YEAR 2018
                                                                                                                                                                                          NEFS 7                          NEFS 9
                                                                                                  Species                                                                 Sector ACE           Sector ACE        Sector ACE         Sector ACE
                                                                                                                                                                             (mt)               (1,000 lb)          (mt)             (1,000 lb)

                                             GB Cod East ....................................................................................................                            34                75                 0                0
                                             GB Cod West ...................................................................................................                            124               273                 0                1
                                             GOM Cod .........................................................................................................                           11                24                 0                0
                                             GB Haddock East ............................................................................................                             1,758             3,875                 4                9
                                             GB Haddock West ...........................................................................................                              3,274             7,219                 8               17
                                             GOM Haddock .................................................................................................                              647             1,426                 0                0
                                             GB Yellowtail Flounder ....................................................................................                                 43                95                 0                0
                                             SNE/MA Yellowtail Flounder ............................................................................                                      4                 8                 0                0
                                             CC/GOM Yellowtail Flounder ...........................................................................                                      42                93                 0                0
                                             Plaice ...............................................................................................................                     152               335                 0                0
                                             Witch Flounder .................................................................................................                            77               171                 0                0
                                             GB Winter Flounder .........................................................................................                               243               536                 1                1
                                             GOM Winter Flounder .....................................................................................                                   11                23                 0                0
                                             SNE/MA Winter Flounder ................................................................................                                     91               201                 0                0
                                             Redfish .............................................................................................................                      973             2,146                 0                0
                                             White Hake ......................................................................................................                          174               385                 0                0
                                             Pollock .............................................................................................................                    2,373             5,232                 0                1



                                                Based on regulations at                                                  sufficient ACE to pay back the overage,                                   overage on a pound-for-pound basis.
                                             § 648.87(b)(1)(iii), should an ACE                                          the sector’s ACE for that stock is set to                                 However, because the permits enrolled
                                             allocated to a sector be exceeded in a                                      zero until the sector can acquire                                         in NEFS 9 for 2018 have zero PSC for
                                             given fishing year, the sector’s ACE                                        sufficient ACE to cover the remaining                                     witch flounder, the sector would be
                                             shall be reduced by the overage on a                                        overage.                                                                  allocated zero pounds of witch flounder.
                                             pound-for-pound basis during the                                               Therefore, if NEFS 9 has remaining                                     Therefore, if the sector has a remaining
                                                                                                                         overages from fishing year 2017,
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                                             following fishing year. If a sector has an                                                                                                            overage from fishing year 2017, it would
                                             overage, but disbands in the year                                           following any transfers conducted                                         begin fishing year 2018 with a negative
                                                                                                                         during a 2-week transfer window after
                                             following the overage, the overage                                                                                                                    balance of witch flounder. The Board of
                                                                                                                         all year-end catch accounting is
                                             follows the permits to the new sector(s)                                                                                                              NEFS 7 has agreed that if the NEFS 9
                                                                                                                         complete (see section on NEFS 9
                                             or to the common pool. If the sector                                                                                                                  overage cannot be reconciled during the
                                                                                                                         Operations Plan for more detail), NEFS
                                             does not disband, but does not have                                         9’s 2018 ACE would be reduced by the                                      post-year transfer window, NEFS 7 will



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                                             34496                Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Rules and Regulations

                                             transfer sufficient 2018 witch flounder                     Because this interim final rule                    writing that the Board reconsider non-
                                             ACE to NEFS 9 to cover the remaining                     approves a lease-only sector operations               active status, and the NEFS 7 Board
                                             overage. This commitment is included                     plan for NEFS 9, the sector has the                   grants active status to the new member.
                                             in the amendment to the NEFS 7                           ability to eliminate the overage by                   However, current regulations at
                                             operations plan, as described later in                   transferring quota in from other sectors.             § 648.87(c)(2) state that, if a sector is
                                             this preamble.                                           We will allow NEFS 9 to transfer fishing              approved, the Regional Administrator
                                                                                                      year 2017 ACE for 2 weeks upon our                    shall issue an LOA to each vessel
                                             NEFS 9 Sector Operations Plan
                                                                                                      completion of year-end catch                          operator and/or vessel owner
                                                In this interim final rule, we are                    accounting for all sectors to reduce or               participating in the sector, authorizing
                                             approving NEFS 9’s sector operations                     eliminate any fishing year 2017                       participation in the sector operations.
                                             plan and contract to operate as a lease-                 overages. As provided by the                          The regulations allow the Regional
                                             only sector. When the Regional                           regulations, this window of post-year                 Administrator to include requirements
                                             Administrator withdrew approval of the                   transfers is opened annually. During                  and conditions necessary to ensure
                                             NEFS 9 operations plan in November                       this time, sectors are only allowed to                effective administration and compliance
                                             2017, we cited accurate reporting,                       transfer in quota to reconcile an overage.            with the sector’s operations plan and
                                             internal accountability, and                             Quota for stocks that do not have an                  the sector allocation. Therefore, the
                                             organizational integrity as core                         overage may not be transferred.                       NEFS 7 amendment includes
                                             principles of the sector system that were                                                                      clarification that we will issue LOAs to
                                             lacking in NEFS 9, as evidenced by the                   NEFS 7 Amendment to Operations Plan
                                                                                                                                                            vessels indicating that they are inactive.
                                             systematic and long-term sector and                         In this interim final rule, we are                 If the required steps are taken for a
                                             vessel misreporting. The operations                      approving an amendment to the NEFS 7                  vessel to become active, we will issue a
                                             plan was withdrawn, in part, because it                  sector operations plan. As described                  new LOA authorizing participation in
                                             did not contain measures that would                      above, on March 26, 2018, NEFS 7                      the groundfish fishery.
                                             provide accurate information or ensure                   submitted a roster for the 2018 fishing                  NEFS 7’s initial proposal did not
                                             compliance with the operations plan to                   year, indicating that 55 of the 60 permits            identify the factors by which the Board
                                             prevent and address future misreporting                  previously enrolled into NEFS 9 would                 would determine the new owner is
                                             or ACE overages. Restricting the sector                  move into NEFS 7, in addition to one                  independent of Mr. Rafael. Historically,
                                             to only being able to participate in the                 vessel from NEFS 8. No vessels that had               NMFS uses several factors to determine
                                             groundfish fishery through ACE                           been enrolled in NEFS 7 for the 2017                  whether a transfer or sale of a permit
                                             transfers with other sectors addresses                   fishing year remained in NEFS 7 for                   appears to be between separate legal
                                             our concerns about the sector’s ability to               2018. All 56 vessels enrolled in NEFS 7               entities. These include, but are not
                                             harvest groundfish and monitor and                       for 2018 are listed as inactive. The NEFS             limited to: Whether the transfer appears
                                             report that activity, consistent with the                7 Board of Directors voted, as part of its            to be an ‘‘arm’s length’’ transaction to an
                                             goals and objectives of the FMP. As a                    process to allow vessels to enroll in the             independent person or entity in which
                                             lease-only sector, NEFS 9 vessels cannot                 sector, to add a permit condition                     the current owner, subsidiary, partner,
                                             actively fish for groundfish, but the                    requiring all permits in which Mr.                    officer, director, trustee, shareholder or
                                             sector is allowed to transfer groundfish                 Rafael has an ownership interest to                   any of their family members does not
                                             quota to and from other sectors, which                   remain inactive and unable to fish in the             have any financial interest or any
                                             will facilitate the sector’s accounting for              groundfish fishery unless and until the               control; whether the transferor/seller
                                             its ACE and overages. Based on this, we                  permit is sold to an independent third                derive any financial benefits from the
                                             have determined that the lease-only                      party. By approving this permit                       operations of the vessel after it is
                                             sector operations plan and contract is                   condition as part of the NEFS 7                       transferred; whether the transferor/seller
                                             consistent with the FMP’s goals and                      operations plan (along with the quota                 exercises any control over the activities
                                             objectives, and meets sector                             allocations described earlier), NEFS 7 is             or operation of the vessel after it is
                                             requirements outlined in the regulations                 able to transfer ACE to and from other                transferred; and whether there are any
                                             at § 648.87.                                             sectors in the 2018 fishing year, but                 common shareholders, partners, or
                                                The lease-only operations plan is a                   vessels owned by Mr. Rafael cannot                    investors with significant overlapping
                                             change from the previous operations                      actively fish for groundfish.                         ownership interests in both the
                                             plan for NEFS 9, for which the Regional                     All of the vessels that are enrolled in            transferor/seller and the transferee/
                                             Administrator withdrew approval.                         NEFS 7 and in which Mr. Rafael has no                 buyer. The NEFS 7 Board of Directors
                                             However, it is similar to the currently                  ownership interest are currently listed               has incorporated these factors into the
                                             approved operations plan for NEFS 4,                     as inactive members of the sector. To                 amendment to the NEFS 7 operations
                                             which also operates as a lease-only                      become active, the sector Board would                 plan as conditions for Board approval of
                                             sector. An approved lease-only                           have to vote to allow a vessel to harvest             new owners to provide sufficient Board
                                             operations plan provides NEFS 9 with                     sector ACE, consistent with normal                    oversight controls and avoid confusion
                                             the ability to pay back the quota overage                sector operations, and notify NMFS of                 regarding whether a sale meets the
                                             incurred by misreported catch. Without                   the vessel change in status. In contrast              requirement of being an independent
                                             a new operations plan, NEFS 9 has no                     to the vessels owned by Mr. Rafael,                   third party.
                                             mechanism for reconciling the overages                   these vessels do not need to be sold in                  As stated earlier in this preamble, the
                                             for which it is responsible. In April                    order to be active in the groundfish                  Board of NEFS 7 has committed that if
                                             2018, we consulted with the New                          fishery.                                              the NEFS 9 overage cannot be
                                             England Fishery Management Council                          To facilitate and enforce the                      reconciled during the 2017 post-year
                                             regarding NEFS 9, and the Council                        requirement for a vessel owned by Mr.
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                                                                                                                                                            transfer window, NEFS 7 will transfer
                                             passed a motion to recommend that                        Rafael to be sold to an independent                   sufficient 2018 witch flounder ACE to
                                             NMFS authorize the NEFS 9 lease-only                     third party before it could become                    NEFS 9 to cover the overage, and this
                                             operations plan to ensure the repayment                  active, the Board initially requested that            is included in the amendment to the
                                             of the NEFS 9 overage, as well as amend                  we withhold LOAs for those permits                    NEFS 7 operations plan.
                                             the NEFS 7 operations plan as needed                     until a permit is sold to an independent                 The NEFS 7 operations plan
                                             and appropriately allocate to the sectors.               third party, the new member requests in               amendment addresses the operational


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                                                                  Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Rules and Regulations                                               34497

                                             issues that required withdrawal of the                   Additionally, the AA finds there is good              as Georges Bank winter flounder, have
                                             prior NEFS 9 operations plan. Approval                   cause, under 5 U.S.C. 553(d)(1) and (3),              a significant seasonal component, and
                                             of an operations plan that provides for                  to waive the 30-day delay in                          therefore there is additional benefit to
                                             paying back all of the overages incurred                 effectiveness for the allocation of annual            making this quota available to the
                                             by vessels in NEFS 9 ensures that the                    catch entitlements (ACE) for fishing year             fishery as a whole as soon as possible.
                                             sector is operating properly within the                  2018 to NEFS 7 and 9, approval of the                    The ACEs being allocated to NEFS 7
                                             sector system and within all ACE that is                 NEFS 9 lease-only operations plan, and                and 9 represent between 3 percent and
                                             properly allocated. The vertical                         approval of the amendment to the NEFS                 33 percent of the total quota for each
                                             integration between Mr. Rafael’s vessels,                7 operations plan so that the purpose of              allocated stock. Continuing to withhold
                                             his seafood dealership, and sector                       this rule is not undermined.                          this amount of quota from the fishery
                                             governance that facilitated the                             Approving the NEFS 9 lease-only                    significantly hampers the ability of the
                                             falsification of landing records would                   operations plan relieves the prohibition              fishery as a whole to operate. This quota
                                             no longer exist with new independent                     against operating and provides a                      is particularly important due to recent
                                             vessel owners.                                           mechanism for NEFS 9 to reconcile its                 stock assessments that resulted in
                                                These changes to the operations plan                  witch flounder overage through the                    reduced overall quotas for several
                                             meet the goals and objectives of the                     2017 year-end transfer window and                     stocks, including Southern New
                                             FMP and the sector system. We will                       address its quota overage for witch                   England/Mid-Atlantic yellowtail
                                             evaluate any changes made to NEFS 7                      flounder. Any overage remaining after                 flounder (75-percent reduction), Gulf of
                                             and 9 membership and vessel                              this transfer window must be reconciled               Maine winter flounder (45-percent
                                             ownership, using the criteria detailed                   via an ACE transfer from NEFS 7, in                   reduction), and white hake (20-percent
                                             above, to ensure the sector’s operations                 order for NEFS 7 to remain in                         reduction). Further delaying allocations
                                             remain consistent with its operations                    compliance with the operations plan                   to NEFS 7 and NEFS 9 significantly
                                             plan and the goals and objectives of the                 amendment approved by this rule. As a                 reduces the quota for these stocks
                                             FMP. Additional substantive changes to                   result, implementing these measures                   available for transfer to other sectors
                                             the NEFS 7 operations plan that are                      immediately ensures that proper catch                 engaged in fishing. This reduces catch
                                             requested, or determined to be                           and ACE accounting occur. This is                     of these as target stocks and also
                                             necessary, would be addressed in a                       fundamental to achieving the goals and                impacts catch of more abundant stocks
                                             future rulemaking.                                       objectives of the FMP.                                like haddock and pollock, which catch
                                             Classification                                              We previously proposed and accepted                these limiting stocks as bycatch. This,
                                                The NMFS Assistant Administrator                      comment on allocating groundfish quota                together with the benefit of ensuring
                                             has preliminarily determined that this                   to NEFS 7 and 9 (83 FR 12706; March                   that all quota overages that resulted
                                             interim final rule is consistent with the                23, 2018). Additionally, before taking                from Mr. Rafael’s criminal misreporting
                                             Northeast Multispecies FMP, other                        this action, we consulted with the New                are reconciled, outweigh the benefits of
                                             provisions of the Magnuson-Stevens                       England Council at its April 2018                     allowing for additional public comment
                                             Act, and other applicable law.                           meeting, at which the Council                         prior to effectiveness, beyond that
                                                This interim final rule is exempt from                recommended that we approve the                       which we already received on the
                                             the procedures of Executive Order (E.O.)                 sectors’ operations plan requests. This               March 23, 2018, proposed rule (83 FR
                                             12866 because this action contains no                    consultation provided the Council and                 12706) and through consultation with
                                             implementing regulations.                                interested members of the public an                   the Council.
                                                This interim final rule does not                      opportunity to comment on NEFS 7’s                       This interim final rule is exempt from
                                             contain policies with Federalism or                      and 9’s potential operations plan                     the procedures of the Regulatory
                                             ‘‘takings’’ implications as those terms                  changes and an additional opportunity                 Flexibility Act because the rule is issued
                                             are defined in E.O. 13132 and E.O.                       to comment on the allocation of quota                 without opportunity for prior notice and
                                             12630, respectively.                                     to both sectors. At this meeting, the                 opportunity for public comment.
                                                Pursuant to 5 U.S.C. 553(b)(B), the                   Council recommended that we ensure
                                                                                                                                                              Authority: 16 U.S.C. 1801 et seq.
                                             Assistant Administrator for Fisheries                    the repayment of the NEFS 9 overage,
                                             (AA) finds good cause to waive prior                     approve the NEFS 9 lease-only                           Dated: July 16, 2018.
                                             notice and the opportunity for public                    operations plan, amend the NEFS 7                     Samuel D. Rauch III,
                                             comment on approval of the NEFS 9                        operations plan as needed, and                        Deputy Assistant Administrator for
                                             lease-only operations plan, and                          appropriately allocate to the sectors.                Regulatory Programs, National Marine
                                             approval of the amendment to the NEFS                    The Council also explained the                        Fisheries Service.
                                             7 operations plan because it would be                    importance of making quota available to               [FR Doc. 2018–15477 Filed 7–19–18; 8:45 am]
                                             contrary to the public interest.                         the fishery at-large. Some stocks, such               BILLING CODE 3510–22–P
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Document Created: 2018-07-20 01:18:32
Document Modified: 2018-07-20 01:18:32
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule; request for comments.
DatesEffective July 20, 2018 through April 30, 2019. Comments must be received on or before August 20, 2018.
ContactLiz Sullivan, Fishery Policy Analyst, (978) 282-8493.
FR Citation83 FR 34492 
RIN Number0648-XG05

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