50 CFR Part 680 — Shellfish Fisheries of the Exclusive Economic Zone off Alaska

PART 680—SHELLFISH FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA Authority: 16 U.S.C. 1862; Pub. L. 109-241; Pub. L. 109-479. Source: 70 FR 10241, Mar. 2, 2005, unless otherwise noted. Subpart A—General § 680.1 Purpose and scope. Regulations in this part implement policies developed by the North Pacific Fishery Management Council and approved by the Secretary of Commerce in accordance with the Magnuson-Stevens Fishery Conservation and Management Act. In addition to part 600 of this chapter, these regulations implement the following: (a) Fishery Management Plan (FMP) for Bering Sea and Aleutian Islands King and Tanner Crabs. (b) License Limitation Program. § 680.2 Definitions. In addition to the definitions in the Magnuson-Stevens Act, in 50 CFR part 600, and § 679.2 of this chapter, the terms used in this part have the following meanings: Adak community entity Affiliation (1) Entity. (i) Quota share (QS), processor quota share (PQS), individual fishing quota (IFQ), or individual processing quota (IPQ); or, (ii) For purposes of the economic data report (EDR), a vessel or processing plant operating in CR fisheries. (2) Indirect interest. (3) Controls a 10 percent or greater interest. (i) Controls a 10 percent ownership share of the second entity, or (ii) Controls 10 percent or more of the voting stock of the second entity. (4) Otherwise controls. (A) The right to direct, or does direct, the business of the entity which holds the QS or IFQ; (B) The right in the ordinary course of business to limit the actions of or replace, or does limit or replace, the chief executive officer, a majority of the board of directors, any general partner or any person serving in a management capacity of the entity which holds the QS or IFQ; (C) The right to direct, or does direct, the transfer of QS or IFQ; (D) The right to restrict, or does restrict, the day-to-day business activities and management policies of the entity holding the QS or IFQ through loan covenants; (E) The right to derive, or does derive, either directly, or through a minority shareholder or partner, and in favor of a PQS or IPQ holder, a significantly disproportionate amount of the economic benefit from the holding of QS or IFQ; (F) The right to control, or does control, the management of, or to be a controlling factor in, the entity holding QS or IFQ; (G) The right to cause, or does cause, the sale of QS or IFQ; (H) Absorbs all of the costs and normal business risks associated with ownership and operation of the entity holding QS or IFQ; and (I) Has the ability through any other means whatsoever to control the entity that holds QS or IFQ. (ii) Other factors that may be indica of control include, but are not limited to the following: (A) If a PQS or IPQ holder or employee takes the leading role in establishing an entity that will hold QS or IFQ; (B) If a PQS or IPQ holder has the right to preclude the holder of QS or IFQ from engaging in other business activities; (C) If a PQS or IPQ holder and QS or IFQ holder use the same law firm, accounting firm, etc.; (D) If a PQS or IPQ holder and QS or IFQ holder share the same office space, phones, administrative support, etc.; (E) If a PQS or IPQ holder absorbs considerable costs and normal business risks associated with ownership and operation of the QS or IFQ holdings; (F) If a PQS or IPQ holder provides the start up capital for the QS or IFQ holder on less than an arm's-length basis; (G) If a PQS or IPQ holder has the general right to inspect the books and records of the QS or IFQ holder; and (H) If the PQS or IPQ holder and QS or IFQ holder use the same insurance agent, law firm, accounting firm, or broker of any PQS or IPQ holder with whom the QS or IFQ holder has entered into a mortgage, long-term or exclusive sales or marketing agreement, unsecured loan agreement, or management agreement. Arbitration IFQ (1) Class A catcher vessel owner (CVO) IFQ held by a person who is not a holder of PQS or IPQ and who is not affiliated with any holder of PQS or IPQ, and (2) IFQ held by an FCMA cooperative. Arbitration QS Arbitration System Assessed value Box size BSAI crab BSAI Crab Capacity Reduction Program BSAI crab fisheries Captain Catcher/processor (CP) Catcher vessel CDQ community CDQ group Committed IFQ (1) Any Arbitration IFQ for which the holder of such IFQ has agreed or committed to delivery of crab harvested with the IFQ to the holder of previously uncommitted IPQ and for which the holder of the IPQ has agreed to accept delivery of that crab, regardless of whether such agreement specifies the price or other terms for delivery, or (2) Any Arbitration IFQ for which, on or after the date which is 25 days prior to the opening of the first crab fishing season in the crab QS fishery for such IFQ, the holder of the IFQ has unilaterally committed to delivery of crab harvested with the IFQ to the holder of previously uncommitted IPQ, regardless of whether the IFQ and IPQ holders have reached an agreement that specifies the price or other terms for delivery. Committed IPQ Converted CPO QS CP standard price Crab cost recovery fee liability Crab fee percentage Crab fishing year Crab grade (1) Grade 1 means standard or premium quality crab, and (2) Grade 2 means below standard quality crab. Crab harvesting cooperative Crab harvesting cooperative IFQ Crab individual fishing quota (crab IFQ) (1) Catcher vessel crew (CVC) IFQ (2) Catcher vessel owner (CVO) IFQ (i) Class A IFQ (ii) Class B IFQ (3) Catcher/processor owner (CPO) IFQ (4) Catcher/processor crew (CPC) IFQ Crab IFQ hired master Crab IFQ permit holder Crab LLP license history Crab quota share (crab QS) (1) Catcher vessel crew (CVC) QS (2) Catcher vessel owner (CVO) QS (3) Catcher/processor owner (CPO) QS (4) Catcher/processor crew (CPC) QS Crab QS fishery Crab QS program Crab QS regional designation Crab Rationalization (CR) allocation Crab Rationalization (CR) crab Crab Rationalization (CR) fisheries Crab Rationalization (CR) Program Crew (1) Any individual, other than the fisheries observers, working on a vessel that is engaged in fishing. (2) For the purposes of the EDR, each employee on a vessel, excluding the captain and fisheries observers, that participated in any CR fishery. Custom processing Data collection agent (DCA) Days at sea Economic data report (EDR) Eligible community resident (1) Is a citizen of the United States; (2) Has maintained a domicile in the ECC, from which the individual requests to lease crab IFQ, for at least 12 consecutive months immediately preceding the time when the assertion of residence is made and who is not claiming residency in another community, state, territory, or country; and (3) Is otherwise eligible to receive crab QS or IFQ by transfer. Eligible crab community (ECC) (1) CDQ Communities. (i) Akutan; (ii) False Pass; (iii) St. George; and (iv) St. Paul. (2) Non-CDQ Communities. (i) Unalaska/Dutch Harbor; (ii) Kodiak; (iii) King Cove; (iv) Port Moller; and (v) Adak. Eligible crab community (ECC) entity Eligible crab community organization (ECCO) Ex-vessel value (1) For the shoreside processing sector. (2) For the catcher/processor sector. FCMA cooperative, Finished pounds Fishing trip IFQ account IFQ crab Individual processor quota (IPQ) Initial processor quota share (PQS) pool Initial quota share (QS) pool IPQ account Landing (1) For catcher/processors, the amount of crab retained during a reporting period constitutes a landing. (2) For catcher vessels, the amount of crab removed from the boat at a single location/time constitutes a landing. Lease of QS/IFQ or PQS/IPQ Leaseholder (1) Is identified as the leaseholder in a written lease of a catcher vessel, catcher/processor, shoreside crab processor, or stationary floating crab processor, or (2) Pays the expenses of a catcher vessel, catcher/processor, shoreside crab processor, or stationary floating crab processor, or (3) Claims expenses for the catcher vessel, catcher/processor, shoreside crab processor, or stationary floating crab processor as a business expense on schedule C of his/her Federal income tax return or on a state income tax return. Magnuson-Stevens Act et seq. Mutual Agreement Newly constructed vessel Official crab rationalization record Processing, or to process Processor quota share (PQS) Raw crab pounds Registered crab receiver (RCR) Retain Right of First Refusal (ROFR) Seafood Marketing Association Assessment (SMAA) Share payment Shoreside crab processor Sideboards Stationary floating crab processor (SFCP) Uncommitted IFQ Uncommitted IPQ U.S. Citizen means: (1) Any individual who is a citizen of the United States; or (2) Any corporation, partnership, association, or other entity that is organized under Federal, state, or local laws of the United States or that may legally operate in the United States. [70 FR 10241, Mar. 2, 2005, as amended at 73 FR 29982, May 23, 2008; 73 FR 35088, June 20, 2008; 73 FR 76189, Dec. 15, 2008; 74 FR 41095, Aug. 14, 2009; 77 FR 6503, Feb. 8, 2012; 82 FR 52014, Nov. 9, 2017; 88 FR 7591, Feb. 6, 2023; 89 FR 47876, June 4, 2024; 89 FR 47876, June 4, 2024] § 680.3 Relation to other laws. (a) King and Tanner crab. (2) The Alaska Administrative Code (at 5 AAC 39.130) governs reporting and permitting requirements using the ADF&G “Intent to Operate” registration form and “Fish Tickets.” (b) Sport, personal use, and subsistence. (2) For State of Alaska statutes and regulations governing subsistence fishing for crab, see Alaska Statutes, Title 16—Fish and Game; 5 AAC 02.001 through 02.625. § 680.4 Permits. (a) General information. (1) Approval. (2) Issuance. (3) Transfer. (4) Inspection. (b) Crab QS permit. (2) Each unit of Crab QS initially issued under § 680.40 for the Bering Sea Tanner crab ( Chionoecetes bairdi (3) A converted CPO QS permit is valid until the end of the crab fishing year for which the permit is issued. (c) Crab PQS permit. (2) Each unit of Crab PQS initially issued under § 680.40 for the Bering Sea Tanner crab ( Chionoecetes bairdi (d) Crab IFQ permit. (i) Until the end of the crab fishing year for which the permit is issued; (ii) Until the amount harvested is equal to the amount specified on the permit; (iii) Until the permit is modified by transfers under § 680.41; or (iv) Until the permit is revoked, suspended, or modified pursuant to § 679.43 or under 15 CFR part 904. (2) A legible copy of the crab IFQ permit must be carried on board the vessel used by the permitted person at all times that IFQ crab are retained on board. (3) On an annual basis, the Regional Administrator will issue a crab IFQ permit to a person who submits a complete Application for Annual Crab Individual Fishing Quota (IFQ) Permit, described at paragraph (f) of this section, that is subsequently approved by the Regional Administrator. (4) To qualify for a crab IFQ permit, the applicant must be a U.S. Citizen. (e) Crab IPQ permit. (i) Until the end of the crab fishing year for which the permit is issued; (ii) Until the amount received/processed is equal to the amount specified on the permit; (iii) Until the permit is modified by transfers under § 680.41; or (iv) Until the permit is revoked, suspended, or modified pursuant to § 679.43 or under 15 CFR part 904. (2) A legible copy of the crab IPQ permit authorizing receiving/processing of IFQ crab must be retained on the premises or vessel used by the permitted person to process the IFQ crab at all times that IFQ crab are retained on the premises or vessel. (3) On an annual basis, the Regional Administrator will issue a crab IPQ permit to a person who submits a complete Application for Annual Crab Individual Processing Quota (IPQ) Permit, described at paragraph (f) of this section, that is subsequently approved by the Regional Administrator. (f) Contents of annual applications for crab IFQ and IPQ permits. (2) For the application to be considered complete, all fees required by NMFS must be paid, and any EDR required under § 680.6 must be submitted to the DCA. In addition, the applicant must include the following information: (i) Applicant information. (ii) Crab IFQ or IPQ permit identification. (iii) Identification of ownership interests. (iv) Certification of ROFR contract for crab IPQ permit. (v) Documentation of affiliation. (vi) Certification of applicant. (g) Crab IFQ hired master permit. (2) A legible copy of the crab IFQ hired master permit must be on board the vessel used by the hired master to harvest IFQ crab at all times IFQ crab are retained on board. Except as specified in § 680.42, an individual who is issued a crab IFQ hired master permit must remain aboard the vessel used to harvest IFQ crab, specified under that permit, during the crab fishing trip and at the landing site until all crab harvested under that permit are offloaded and the landing report for IFQ crab is completed. (h) Contents of application for crab IFQ hired master permit. Abstract Of Title Certificate Of Documentation (1) Purpose of application. (2) IFQ permit holder information. (3) Identification of vessel upon which crab IFQ will be harvested. (4) IFQ hired master permit holder information. (5) Applicant certification. (i) RCR permit. (2) An RCR permit is required for any person who receives unprocessed CR crab from the person(s) who harvested the crab, the owner or operator of a vessel that processes CR crab at sea, any person holding IPQ, and any person required to submit a Departure Report under 50 CFR 679.5(l)(4). (j) Contents of application for RCR permit. (1) Purpose of application. (2) Applicant identification. (3) Type of activity. (4) Individual responsible for submission of EDR. (5) Application certification. (k) Federal crab vessel permit. (1) A Federal crab vessel permit is issued on an annual basis to the owner of the vessel and is in effect from the date of issuance through the end of the crab fishing year for which the permit was issued, unless it is revoked, suspended, or modified under § 600.735 or § 600.740. (2) A Federal crab vessel permit may not be surrendered at any time during the crab fishing year for which it was issued. (3) A Federal crab vessel permit issued under this paragraph is not transferable or assignable and is valid only for the vessel for which it is issued. (4) To qualify for a Federal crab vessel permit, the applicant must be a U.S. Citizen. (5) The holder of a Federal crab vessel permit must submit an amended application for a Federal crab vessel permit within 10 days of the date of change in: the ownership of the vessel (a copy of the current USCG documentation for the vessel showing the change in ownership must accompany the amended application), or the individual responsible for submission of the EDR on behalf of the vessel's owner(s). (l) Contents of application for federal crab vessel permit. Abstract Of Title Certificate Of Documentation. (1) Purpose of application. (2) Contact owner information. (3) Vessel information. (4) Designated representative for EDR. (5) Applicant certification. (m) Annual crab harvesting cooperative IFQ permit. (n) Contents of annual application for converted CPO QS/IFQ permit. (ii) To receive converted CPO QS/IFQ this application must be accompanied by a timely and complete application for crab IFQ/IPQ described at paragraph (f) of this section or a timely and complete application for a crab harvesting cooperative IFQ permit described at paragraph (m) of this section. (2) For the application to be considered complete, all fees required by NMFS must be paid, and any EDR required under § 680.6 must be submitted to the DCA. In addition, the applicant must include the following information (see paragraphs (n)(2)(i) through (v) of this section): (i) Entity identification. (ii) Applicant information. (A) For Entity A or B: ( 1 ( 2 (B) For Entity C: ( 1 ( 2 (iii) Affiliate information for Entities A and B. (B) Indicate the amount of PQS in either the BBR or BSS crab QS fishery initially issued to that person with a North Region designation for issuance as converted CPO QS. (C) Indicate the amount of CVO QS in either the BBR or BSS crab QS fishery with a North Region designation held by the affiliate for issuance as converted CPO QS. (iv) Affiliate information for Entity C. (B) Indicate the amount of PQS in either the BBR or BSS crab QS fishery with a North Region designation for issuance as converted CPO QS. (C) Indicate the amount of CVO QS in either the BBR or BSS crab QS fishery initially issued to the affiliate with a North Region designation for issuance as converted CPO QS. (v) Certification of applicant and affiliates. (o) Exemption from Western Aleutian Islands golden king crab West regional delivery requirements Request for an Annual Exemption from Western Aleutian Islands golden king crab West regional delivery requirements. (i) Mail: (ii) Fax: (iii) Hand delivery or carrier: (2) Application form. http://alaskafisheries.noaa.gov (i) Identification of eligible contract signatories. (A) QS holders: (B) PQS holders: (C) Municipalities: (ii) Affidavit affirming master contract has been signed. (3) Effective date. (4) Duration. (5) Approval. (ii) The Regional Administrator will not consider an application to have been received if the applicant cannot provide objective written evidence that NMFS Alaska Region received it. (iii) NMFS approval of an annual exemption from the Western Aleutian Islands golden king crab West regional delivery requirements will be made publicly available at the NMFS Web site at http://alaskafisheries.noaa.gov. (p) Exemption from regional delivery requirements for the Bristol Bay red king crab, Bering Sea snow crab, St. Matthew blue king crab, Eastern Aleutian Islands golden king crab, Western Aleutian Islands red king crab, and Pribilof red king and blue king crab fisheries Apply for an Exemption. (2) Identification of eligible applicants. (i) IFQ holders. (ii) IPQ holders. (iii) Community representatives. (B) For North Region St. Matthew blue king crab PQS and North Region Bering Sea snow crab PQS that was issued without a ROFR, the community representative that signs the preseason application, the framework agreement, the inseason notice, and the exemption contract for Saint Paul and Saint George shall be either: ( 1 ( 2 ( i ( ii (3) Required Applicants. (4) Application for an Exemption from the CR Program Regional Delivery Requirements Application Form. http://alaskafisheries.noaa.gov (A) Mail: NMFS Regional Administrator, c/o Restricted Access Management Program, P.O. Box 21668, Juneau, AK 99802-1668; or (B) Fax: 907-586-7354; or (C) Hand delivery or carrier: NMFS, Room 713, 709 West 9th Street, Juneau, AK 99801. (ii) Part I: Preseason Application. (B) Each applicant must certify, through an affidavit, that the applicant has entered into a framework agreement that— ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 (C) Each applicant must sign and date the affidavit and affirm that, under penalty of perjury, the information and the claims provided on the application are true, correct, and complete. (D) NMFS must receive the preseason application on or before October 15 of the crab fishing year for which the applicants are applying for an exemption. ( 1 ( 2 (E) If NMFS does not receive a timely and complete preseason application on or before October 15 of a crab fishing year, NMFS will deny the preseason application; those applicants will not be able to receive an exemption for that crab fishing year. (F) If a preseason application is timely and complete, NMFS will approve the application. If NMFS approves a preseason application for an exemption, the applicants will be able to receive an exemption during the crab fishing year if the applicants comply with the requirements for an inseason notice of exemption specified below at paragraph (p)(4)(iii). (G) If NMFS denies a preseason application for any reason, the applicants may appeal the denial pursuant to 50 CFR 679.43. (H) NMFS will notify all of the applicants whether NMFS has approved or denied the preseason application. (iii) Part II: Inseason Notice of Exemption. ( 1 ( 2 ( 3 (B) Each applicant must certify, through an affidavit, that the applicants have entered into an exemption contract that— ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 (C) Each applicant must sign and date the affidavit and affirm that, under penalty of perjury, the information and the claims provided on the notice are true, correct, and complete. (D) NMFS must receive the inseason notice at least one day prior to the day on which the applicants want the exemption to take effect. If an inseason notice is submitted by mail, the date that NMFS receives the inseason notice is not the postmark date of the notice. (E) The effective date of the exemption is the day after NMFS receives a complete inseason notice. Any delivery of North Region IFQ or South Region IFQ outside the designated region prior to the effective date of the exemption is prohibited under § 680.7(a)(2) and (4). Any processing of North Region IPQ or South Region IPQ outside the designated region prior to the effective date of the exemption is prohibited under § 680.7(a)(2) and (4). (F) An exemption is effective for the remainder of the crab fishing year, unless the inseason notice of exemption specifies that compensatory deliveries will occur in the following crab fishing year and then the exemption will remain in effect for the IFQ and IPQ specified for compensatory delivery in the following crab fishing year. (5) Regional Delivery Exemption Report. (A) The amount of IFQ, if any, set aside to reduce the need for, and the amount of, an exemption; (B) The mitigation measures employed before submitting an inseason notice; (C) The number of times an exemption was requested and used; (D) The arrangements for any compensatory deliveries, including all compensatory deliveries made during the crab fishing year and any outstanding compensatory delivery obligations for the following crab fishing year; (E) Whether the exemption was necessary; and (F) Any impacts resulting from the exemption on the fishery participants and communities that signed the preseason application. (ii) On or before July 15, IFQ holders must submit a copy of the Regional Delivery Exemption Report to the IPQ holders and community representatives that also signed the preseason application. (iii) On or before July 30, IFQ holders must submit the Regional Delivery Exemption Report to NMFS at the address in paragraph (p)(4)(i) of this section. (6) Public Notice of the Exemption. http://alaskafisheries.noaa.gov (q) Initial administrative determination (IAD). [70 FR 10241, Mar. 2, 2005, as amended at 71 FR 32864, June 7, 2006; 73 FR 29982, May 23, 2008; 73 FR 76189, Dec. 15, 2008; 76 FR 35785, June 20, 2011; 78 FR 28529, May 15, 2013; 80 FR 15896, Mar. 26, 2015; 81 FR 1561, Jan. 13, 2016] § 680.5 Recordkeeping and reporting (R&R). (a) General requirements Recording and reporting crab. (2) Responsibility. Recordkeeping and reporting report Person responsible Reference (A) Longline and pot gear catcher vessel daily fishing logbook Owner and operator of vessel § 679.5(c)(1). (B) Longline and pot gear catcher/processor daily cumulative production logbook Owner and operator of vessel § 679.5(c)(1). (C) Product Transfer Report (PTR) Owner and operator of catcher/processor; Owner and manager of shoreside processor or SFCP; RCR § 679.5(g). (D) U.S. Vessel Activity Report (VAR) Owner and operator of vessel § 679.5(k). (E) Transhipment Authorization Owner and operator of a catcher/processor; RCR § 679.5(l)(3). (F) IFQ Departure Report Owner and operator of vessel § 679.5(l)(4). (G) CR Crab Landing Report RCR § 679.5(e) (H) [Reserved] (I) Eligible Crab Community Organization (ECCO) Annual Report for an Eligible Crab Community (ECC) ECCO § 680.5(f). (J) RCR Fee Submission Form RCR § 680.5(g). (K) Crab Economic Data Report (EDR) Owners or leaseholders of a catcher vessel, catcher/processor, shoreside processor, or SFCP § 680.6. (L) CR RCR Ex vessel Volume and Value Report RCR § 680.5(m) (3) Representative. (4) Submittal of information. (5) Alteration of records. (6) Inspection of records. (7) Retention of records. (i) On site. (ii) For 3 years. (8) Landing verification and inspection. (9) Sampling. (b) IFQ crab landings Landing reports. (2) Properly debited landing. (c)-(e) [Reserved] (f) ECCO Annual Report. (2) Contents of ECCO Annual Report. (i) Name, ADF&G vessel registration number, USCG documentation number, and Federal crab vessel permit of each vessel from which the crab IFQ was harvested; (ii) Name and business addresses of individuals employed as crew members when fishing the crab IFQ; (iii) Criteria used by the ECCO to distribute crab IFQ leases among eligible community residents; (iv) Description of efforts made to ensure that crab IFQ lessees employ crew members who are eligible community residents of the ECC aboard vessels on which crab IFQ derived from QS held by a ECCO is being fished; (v) Description of the process used to solicit lease applications from eligible community residents of the ECC on whose behalf the ECCO is holding QS; (vi) Names and business addresses and amount of crab IFQ requested by each individual applying to receive crab IFQ from the ECCO; (vii) Any changes in the bylaws of the ECCO, board of directors, or other key management personnel; (viii) Copies of minutes, bylaw changes, motions, and other relevant decision making documents from ECCO board meetings. (g) RCR fee submission form Applicability. http://alaskafisheries.noaa.gov. (2) Due date and submittal. (3) Required information. (i) Identification of the RCR. (ii) Signature of applicant. (h) Product transfer report. (i) U.S. Vessel activity report (VAR). See (j) Transshipment authorization. See (k) IFQ departure report. See (l) Catcher vessel longline and pot daily fishing logbook (DFL) and catcher/processor daily cumulative production logbook (DCPL). See (m) CR Registered Crab Receiver (RCR) Ex-vessel Volume and Value Report Applicability. (2) Reporting period. (3) Due date. (4) Information required. http://alaskafisheries.noaa.gov (i) RCR identification. (B) Landing month. (C) Port (location of facility or vessel). (ii) CR crab program (iii) CR crab pounds purchased and ex-vessel value. (A) Pounds purchased. (B) Ex-vessel value paid. (iv) Certification. (5) Submittal. https://alaskafisheries.noaa.gov. [70 FR 10241, Mar. 2, 2005, as amended at 70 FR 33395, June 8, 2005; 70 FR 75421, Dec. 20, 2005; 73 FR 76189, Dec. 15, 2008; 74 FR 51519, Oct. 7, 2009; 75 FR 56486, Sept. 16, 2010; 80 FR 15897, Mar. 26, 2015; 81 FR 23649, Apr. 22, 2016] § 680.6 Crab economic data report (EDR). (a) Requirements. (2) A completed EDR or EDR certification pages must be submitted to NMFS, in the manner specified on the NMFS-issued EDR form, for each calendar year on or before 1700 hours, A.l.t., July 31 of the following year. (3) Annual EDR forms for catcher vessels, catcher/processors, shoreside crab processors, and stationary floating crab processors are available on the NMFS Alaska Region website at https://alaskafisheries.noaa.gov (b) EDR certification pages. (1) Part of the entire EDR. (2) A separate document. (c) Annual catcher vessel crab EDR. (d) Annual catcher/processor crab EDR. (e) Annual stationary floating crab processor (SFCP) and shoreside crab processor EDR (2) Any holder of a registered crab receiver (RCR) permit that obtained custom processing for CR Program crab in the previous calendar year must submit to NMFS, in the manner specified on the NMFS-issued EDR form, a completed processor EDR for annual data for the previous calendar year. (f) Verification of data. (2) The owner or leaseholder must respond to inquiries by the DCA within 20 days of the date of issuance of the inquiry. (g) DCA authorization. [78 FR 36127, June 17, 2013, as amended at 88 FR 7591, Feb. 6, 2023] § 680.7 Prohibitions. In addition to the general prohibitions specified in § 600.725 of this chapter, it is unlawful for any person to do any of the following: (a) Receiving and processing CR crab. (i) A scale approved by the State in which the RCR is located and that meets the requirements described in § 680.23(f); or (ii) Onboard a catcher/processor RCR on a scale approved by NMFS as described in § 680.23(e). (2) Receive CR crab harvested under an IFQ permit in any region other than the region for which the IFQ permit is designated, unless: (i) Western Aleutian Islands golden king crab are received following the effective date of a NMFS-approved exemption pursuant to § 680.4(o), or (ii) The IFQ permit and IFQ amount are subject to an exemption pursuant to § 680.4(p). (3) Use IPQ on board a vessel outside of the territorial sea or internal waters of the State of Alaska. (4) Use IPQ in any region other than the region for which the IPQ permit is designated, unless: (i) Western Aleutian Islands golden king crab IPQ is used following the effective date of a NMFS-approved exemption pursuant to § 680.4(o), or (ii) The IPQ permit and IPQ amount are subject to an exemption pursuant to § 680.4(p). (5) Receive any crab harvested under a Class A IFQ permit in excess of the total amount of unused IPQ held by the RCR in a crab QS fishery, unless that RCR subsequently receives unused IPQ by transfer as described under § 680.41 that is at least equal to the amount of all Class A IFQ received by that RCR in that crab QS fishery before the end of the crab fishing year for which an IPQ permit was issued. (6) Receive crab harvested under a Class B IFQ permit on a vessel if that vessel was used to harvest and process any crab in that crab QS fishery during the same crab fishing season. (7) For an IPQ holder to use more IPQ than the maximum amount of IPQ that may be held by that person under § 680.42(b). (b) Landing CR crab. (2) Remove any CR crab processed at sea from any vessel before completing a landing report, as defined at § 680.5(c), for all such CR crab onboard. (3) Fail to remove all processed crab harvested under a CPO or a CPC IFQ permit to an onshore location within the United States, accessible by road or regularly scheduled air service, and to weigh that crab product on a scale approved by the State in which the crab is weighed. (4) Make an IFQ crab landing except by an individual who holds either a crab IFQ permit or a crab IFQ hired master permit issued under § 680.4 in his or her name. (5) Make an IFQ crab landing without the following on board: a copy of the crab IFQ permit to be debited for the landing; and, if applicable, a copy of the crab IFQ hired master permit issued under § 680.4 in the name of the person making the landing. (6) For a Crab IFQ hired master to make an IFQ crab landing on any vessel other than the vessel named on the Crab IFQ hired master permit. (c) Harvest crab. (2) Harvest CR crab with any vessel that does not use functioning VMS equipment as required by § 680.23. (3) Harvest on any vessel more IFQ crab than are authorized under § 680.42. (4) Harvest crab under a CVC or a CPC IFQ permit unless the person named on the IFQ permit is on board that vessel. (5) Harvest crab under a CPO or CPC permit unless all scales used to weigh crab, or used by an observer for sampling crab, have passed an inseason scale test according to § 680.23(e)(1). (6) For any person who is not an entity defined in § 680.40(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) to: (i) Hold converted CPO QS. (ii) Use the CPO IFQ derived from that converted CPO QS outside of a crab harvesting cooperative. (d) Recordkeeping and reporting. (2) Submit false information on any report, application, or statement required under this part. (e) Permits. (2) Begin a fishing trip for crab in a crab QS fishery with a vessel if the total amount of unharvested crab IFQ that is currently held in the IFQ accounts of all crab IFQ permit holders or Crab IFQ Hired Masters aboard that vessel in that crab QS fishery is zero or less. (3) Have a negative balance in an IFQ or IPQ account for a crab QS fishery after the end of the crab fishing year for which an IFQ or IPQ permit was issued. (f) IPQ. (g) General. (2) Violate any other provision under this part. (h) Inseason action. [70 FR 10241, Mar. 2, 2005, as amended at 70 FR 33395, June 8, 2005; 73 FR 29982, May 23, 2008; 73 FR 76190, Dec. 15, 2008; 74 FR 25457, May 28, 2009; 74 FR 41095, Aug. 14, 2009; 76 FR 35786, June 20, 2011; 78 FR 28531, May 15, 2013; 81 FR 24518, Apr. 26, 2016; 85 FR 72583, Nov. 13, 2020; 89 FR 47877, June 4, 2024] § 680.8 Facilitation of enforcement. See § 600.730 of this chapter. § 680.9 Penalties. (a) Any person committing, or a fishing vessel used in the commission of, a violation of the Magnuson-Stevens Act, or any regulation issued under the Magnuson-Stevens Act, is subject to the civil and criminal penalty provisions, permit sanctions, and civil forfeiture provisions of the Magnuson-Stevens Act, to part 600 of this chapter, to 15 CFR part 904 (Civil Procedures), and to other applicable law. Penalties include but are not limited to permanent or temporary sanctions to PQS, QS, IPQ, IFQ, Crab IFQ hired master, Federal crab vessel permit, or RCR permits. (b) In the event a holder of any IPQ is found by a court of competent jurisdiction, either in an original action in that court or in a proceeding to enforce or review the findings or orders of any Government agency having jurisdiction under the antitrust laws, to have violated any of the provisions of antitrust laws in the conduct of the licensed activity, the Secretary of Commerce may revoke all or a portion of such IPQ. The antitrust laws of the United States include, but are not limited to, the following Acts: (1) The Sherman Act, 15 U.S.C. 1-7; (2) The Wilson Tariff Act, 15 U.S.C. 8-11; (3) The Clayton Act, 15 U.S.C. 12-27; and (4) The Federal Trade Commission Act, 15 U.S.C. 12 and 45(a). Subpart B—Management Measures § 680.20 Arbitration System. (a) Applicability Arbitration System. (2) Open negotiation. (3) Document submittal information. (b) Eligibility for Arbitration System Arbitration Organization. (i) Holders of CVO QS, (ii) Holders of PQS, (iii) Holders of Arbitration IFQ, (iv) Holders of Class A IFQ affiliated with a PQS or IPQ holder, and (v) Holders of IPQ. (2) Persons eligible to use negotiation and Binding Arbitration procedures. (i) Holders of Arbitration IFQ, and (ii) Holders of IPQ. (3) Persons ineligible to use negotiation and Binding Arbitration procedures. (c) Preseason requirements for joining an Arbitration Organization. (1) For QS holders and PQS holders except as provided for in paragraph (c)(3) of this section, not later than May 1 of each year for the crab fishing year that begins on July 1 of that year. (2) For IFQ holders and IPQ holders, not later than 15 days after the issuance of IFQ and IPQ for that crab QS fishery if that IFQ or IPQ holder does not also hold QS or PQS. (3) During 2005, QS and PQS holders must join an Arbitration Organization as described in paragraph (d) of this section not later than August 15, 2005. (4) Persons receiving QS, PQS, IFQ, or IPQ by transfer after these dates must join an Arbitration Organization at the time of receiving the QS, PQS, IFQ, or IPQ by transfer. (d) Formation process for an Arbitration Organization. (i) Arbitration QS/IFQ Arbitration Organization. (ii) PQS/IPQ Arbitration Organization. (iii) Affiliated QS/IFQ Arbitration Organization. (iv) Limitation on joining an Arbitration Organization. (A) PQS/IPQ may join only one PQS/IPQ Arbitration Organization; (B) Affiliated QS/IFQ may join only one Affiliated QS/IFQ Arbitration Organization; and (C) Arbitration QS/IFQ may join only one Arbitration QS/IFQ Organization. (2) Each Arbitration Organization must submit a complete Annual Arbitration Organization report to NMFS. A complete report must include: (i) A copy of the business license of the Arbitration Organization; (ii) A statement identifying the members of the organization and the amount of Arbitration QS and Arbitration IFQ, Non-Arbitration QS and Non-Arbitration IFQ, or PQS and IPQ held by each member and represented by that Arbitration Organization; (iii) QS, PQS, IFQ, and IPQ ownership information on the members of the organization; (iv) Management organization information, including: (A) The bylaws of the Arbitration Organization; (B) A list of key personnel of the management organization including, but not limited to, the board of directors, officers, representatives, and any managers; (v) The name of the Arbitration Organization, permanent business mailing addresses, name of contact persons and additional contact information of the managing personnel for the Arbitration Organization, resumes of management personnel; and (vi) A copy of all minutes of any meeting held by the Arbitration Organization or any members of the Arbitration Organization. (3) An Arbitration Organization, with members who are QS or PQS holders, must submit a complete Annual Arbitration Organization Report to NMFS in accordance with paragraph (a)(3) of this section by August 20, 2005, for the crab fishing year beginning on July 1, 2005, and by May 1 of each subsequent year for the crab fishing year beginning on July 1 of that year. (4) An Arbitration Organization, with members who are IFQ or IPQ holders, must submit a complete Annual Arbitration Organization Report to NMFS in accordance with paragraph (a)(3) of this section by not later than 15 days after the issuance of IFQ and IPQ for that crab QS fishery. (e) Role of Arbitration Organization(s) and annual requirements General. (i) The contract among members of an Arbitration QS/IFQ Arbitration Organization, or a PQS/IPQ Arbitration Organization shall include the terms, conditions, and provisions specified in paragraph (e)(2) of this section. (ii) The contract among members of an Affiliated QS/IFQ Arbitration Organization shall include the terms, conditions, and provisions in paragraph (e)(3) of this section. (2) Provisions for Arbitration QS/IFQ Arbitration Organizations, and PQS/IPQ Arbitration Organizations Selection of Market Analyst, Formula Arbitrator, and Contract Arbitrator(s). (ii) Confidentiality of information. (iii) Provision of information to members. (A) A copy of the contracts for the Market Analyst, Formula Arbitrator, and Contract Arbitrator for each fishery in which the member participates; and (B) A copy of the Market Report and the Non-Binding Price Formula for each fishery in which the member participates within 5 days of its release. (iv) Information release. (B) In the case of a PQS/IPQ Arbitration Organization(s): ( 1 ( 2 ( 3 ( 4 (C) In the case of a Arbitration QS/IFQ Organization(s): ( 1 ( 2 (D) Third-party Data Provider provision. Notwithstanding any provision in this section, an Arbitration Organization required to supply or receive information under this section must hire administrative personnel or may contract with a person who will arrange for the receipt and delivery of information as required. Any such third party that receives such information cannot be affiliated with or employed by or related to any QS, PQS, IFQ, or IPQ holder in any crab QS fishery and must enter a contract that: ( 1 ( 2 (v) Costs. (A) The Arbitration Organizations must establish a contract that requires the payment of all costs of the Market Analyst, Formula Arbitrator, and Contract Arbitrator(s), dissemination of information concerning uncommitted IPQ to holders of uncommitted Arbitration IFQ, and the costs of such persons associated with lengthy season approach, share matching approach, Binding Arbitration, quality and performance disputes, to be shared equally so that IPQ holders pay 50 percent of the costs and Arbitration IFQ holders and Class A IFQ holders pay 50 percent of the costs. (B) Each person shall pay an amount of the cost based on the amount of IPQ or IFQ held by that person at the time of application to an Arbitration Organization. (C) PQS holders shall advance all costs and shall collect the contribution of IFQ holders at landing subject to terms mutually agreed to by the Arbitration Organizations. (vi) Negotiation methods. (vii) Enforcement of the contract. (3) Provisions applying to Affiliated QS/IFQ Arbitration Organizations. (4) Process for selection of Market Analyst, Formula Arbitrator, and Contract Arbitrator(s). (ii) The Arbitration Organizations representing Arbitration QS holders and PQS holders in a crab fishery shall establish by mutual agreement the contractual obligations of the Market Analyst, Formula Arbitrator, and Contract Arbitrator(s) for each fishery. The contractual obligations of the Market Analyst, the Formula Arbitrator, and Contract Arbitrators will be enforced by the parties to the contract. (iii) The same person may be chosen for the positions of Market Analyst and Formula Arbitrator for a fishery. (iv) A person selected to be a Contract Arbitrator may not be the Market Analyst or Formula Arbitrator, and shall not be affiliated with, employed by, or otherwise associated with, the Market Analyst or Formula Arbitrator, for that fishery. (5) Notification to NMFS. (6) First-year implementation. (7) IFQ and IPQ issuance and selection of the Market Analyst, Formula Arbitrator, and Contract Arbitrator(s). (f) Roles and standards for the Market Analyst and process for producing the Market Report. (i) The Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations shall establish a contract with the Market Analyst to produce a Market Report for each crab QS fishery. The terms of this contract must specify that the Market Analyst must produce a Market Report that shall provide an analysis of the market for products of that fishery. (ii) The Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations may, by mutual agreement, include a provision in the contract with the Market Analyst to forgo production of a Market Report for a crab QS fishery if the Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations anticipate that the crab QS fishery will not open for fishing during a crab fishing year. If such a provision is included in the contract with the Market Analyst, the Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations must include a provision in the contract with the Market Analyst to produce a Market Report not later than the June 30 for the crab QS fishery that was expected to remain closed but subsequently opens for fishing during the crab fishing year. (2) The contract with the Market Analyst must specify that: (i) The Market Analyst will base the Market Report on a survey of the market for crab products produced by the fishery. (ii) The Market Analyst will note generally the sources from which he or she gathered information. The Market Report must include only publicly available data and information. Data and information will be considered publicly available if they are published in a manner that makes them available, either for a fee or at no cost, to the public at large. (iii) The Market Report shall consider the following factors: (A) Current ex-vessel prices, including ex-vessel prices received for crab harvested under Class A IFQ, Class B IFQ, and CVC IFQ permits; (B) Consumer and wholesale product prices for the processing sector and the participants in the arbitration (recognizing the impact of sales to affiliates on wholesale pricing); (C) Innovations and developments of the harvesting and processing sectors and the participants in the arbitration (including new product forms); (D) Efficiency and productivity of the harvesting and processing sectors (recognizing the limitations on efficiency and productivity arising out of the management program structure); (E) Quality (including quality standards of markets served by the fishery and recognizing the influence of harvest strategies on the quality of landings); (F) The interest of maintaining financially healthy and stable harvesting and processing sectors; (G) Safety and expenditures for ensuring adequate safety; (H) Timing and location of deliveries; and (I) The cost of harvesting and processing less than the full IFQ or IPQ allocation (underages) to avoid penalties for overharvesting IFQ and a mechanism for reasonably accounting for deadloss. (iv) There shall only be one annual Market Report for each fishery. (v) The Market Analyst must not issue interim or supplemental reports for any crab QS fishery unless the Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations, by mutual agreement, include a provision in the contract with the Market Analyst for the production of interim or supplemental reports for a crab QS fishery. If the Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations have a mutual agreement to produce interim or supplemental reports, the contract with the Market Analyst must specify the terms and conditions under which those interim or supplemental reports will be produced. (3) The Market Analyst shall not disclose any information to any person not required under this section. (4) In 2005, the Market Report shall be produced not later than September 30, 2005 or 25 days prior to the first crab fishing season for that crab QS fishery whichever is later in that crab fishing year as required under this section. (i) In all subsequent years and except as provided in paragraph (f)(1)(ii) of this section, the Market Report for each crab QS fishery must be produced not later than 50 days prior to the first crab fishing season for that crab QS fishery, unless the Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations, by mutual agreement, include a provision in the contract with the Market Analyst to establish a different date for production of the Market Report for that crab QS fishery. (ii) The contract with the Market Analyst must specify that the Market Analyst will provide the Market Report in that crab fishing year to: (A) Each Arbitration Organization in that fishery; (B) NMFS Alaska Region in accordance with paragraph (a)(3) of this section; and (C) The Formula Arbitrator and any Contract Arbitrator(s) for the fishery. (g) Roles and standards for the Formula Arbitrator. (i) The Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations shall establish a contract with the Formula Arbitrator to produce a Non-Binding Price Formula for each crab QS fishery. (ii) The Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations may, by mutual agreement, include a provision in the contract with the Formula Arbitrator to forgo production of a Non-Binding Price Formula for a crab QS fishery if the Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations anticipate that the crab QS fishery will not open for fishing during a crab fishing year. If such a provision is included in the contract with the Formula Arbitrator, the Arbitration QS/IFQ Arbitration Organizations and the PQS/IPQ Arbitration Organizations must include a provision in the contract with the Formula Arbitrator to produce a Non-Binding Price Formula not later than June 30 for the crab QS fishery that was expected to remain closed but subsequently opens for fishing during the crab fishing year. (2) The contract with the Formula Arbitrator must specify that: (i) The Formula Arbitrator will conduct a single annual fleet-wide analysis of the markets for crab to establish a Non-Binding Price Formula under which a fraction of the weighted average first wholesale prices for crab products from the fishery may be used to set an ex-vessel price; and (ii) The Non-Binding Price Formula shall: (A) Be based on the historical distribution of first wholesale revenues between fishermen and processors in the aggregate based on arm's length first wholesale prices and ex-vessel prices, taking into consideration the size of the harvest in each year; and (B) Establish a price that preserves the historical division of revenues in the fishery while considering the following: ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 ( 8 ( 9 (C) Include identification of various relevant factors such as product form, delivery time, and delivery location. (D) Consider the “highest arbitrated price” for the fishery from the previous crab fishing season, where the “highest arbitrated price” means the highest arbitrated price for arbitrations of IPQ and Arbitration IFQ which represent a minimum of at least 7 percent of the IPQ resulting from the PQS in that fishery. For purposes of this process, the Formula Arbitrator may aggregate up to three arbitration findings to collectively equal a minimum of 7 percent of the IPQ. When arbitration findings are aggregated with 2 or more entities, the lesser of the arbitrated prices of the arbitrated entities included to attain the 7 percent minimum be considered for the highest arbitrated price. (iii) The Non-Binding Price Formula may rely on any relevant information available to the Formula Arbitrator, including, but not limited to, (A) Information provided by the QS, PQS, IPQ and IFQ holders in the fishery, and (B) The Market Report for the fishery. (iv) The Formula Arbitrator: (A) May meet with IFQ holders who are members of any single FCMA cooperative collectively; (B) Shall meet with IPQ holders individually; (C) Shall meet with distinct FCMA cooperatives individually; and (D) Shall meet with IFQ holders who are not members of the same FCMA cooperative individually. (v) The Formula Arbitrator may request any relevant information from QS, PQS, IPQ, and IFQ holders in the fishery, but the Formula Arbitrator shall not have subpoena power. (vi) The Formula Arbitrator may obtain information from persons other than QS, PQS, IPQ, and IFQ holders in the fishery, if those persons agree to provide such data. Any information that is provided must be based on activities occurring more than three months prior to the date of submission to the Formula Arbitrator. (vii) The Formula Arbitrator shall keep confidential the information that is not publicly available and not disclose the identity of the persons providing specific information. (viii) (A) In 2005, the non-binding price formula shall be produced not later than September 30, 2005 or 25 days prior to the first crab fishing season for that crab QS fishery whichever is later in that crab fishing year as required under this section. (B) In all subsequent years and except as provided in paragraph (g)(1)(ii) of this section, the Non-Binding Price Formula must be produced not later than 50 days prior to the first crab fishing season for that crab QS fishery, except that the Non-Binding Price Formulas for the western Aleutian Islands golden king crab fishery and the eastern Aleutian Islands golden king crab fishery must be produced not later than 30 days prior to the first crab fishing season for those crab QS fisheries. (C) The contract with the Formula Arbitrator must specify that the Formula Arbitrator will provide the non-binding price formula in that crab fishing year to: ( 1 ( 2 ( 3 (ix) The Formula Arbitrator shall not disclose any information to any person unless required under this section. (h) Roles and standards for the Contract Arbitrator(s) General. (2) Selection of Contract Arbitrators. (3) Negotiation and Binding Arbitration Procedure. (i) Restrictions on collective negotiation. (A) Members of an FCMA cooperatives may participate collectively with other members of the same FCMA cooperative in Binding Arbitration except as otherwise provided under this section. (B) Members of different FCMA cooperatives shall not participate collectively in Binding Arbitration. (C) IPQ holders shall not participate collectively. Only one IPQ holder shall enter into Binding Arbitration with any IFQ holder or IFQ holder(s). (D) An Arbitration Organization must not negotiate on behalf of a member. This shall not prohibit the members of an Arbitration IFQ Arbitration Organization from negotiation if the Arbitration Organization qualifies as an FCMA cooperative. (ii) Open negotiations. (A) Uncommitted Arbitration IFQ holders and Uncommitted IPQ holders may freely contact each other and initiate open negotiations. (B) If Arbitration IFQ holders and IPQ holders do not reach an agreement on price, delivery terms, or other terms after committing shares, an Arbitration IFQ holder may initiate Binding Arbitration in accordance with the procedures specified in this section in order to resolve disputes in those price, delivery terms, or other terms. (C) Once IFQ or IPQ has been committed, the IFQ holder and IPQ holder cannot engage in open negotiation using those shares. (iii) Lengthy season approach. (B) A Lengthy Season approach allows a committed IPQ holder and a committed Arbitration IFQ holder to agree to postpone negotiation of specific contract terms until a time during the crab fishing year as agreed upon by the Arbitration IFQ holder and IPQ holder participating in the negotiation. The Lengthy Season approach allows the Arbitration IFQ holders and IPQ holder involved in the negotiation to postpone Binding Arbitration, if necessary, until a time during the crab fishing year. If the parties ready a final agreement on the contract terms, Binding Arbitration is not necessary. (C) If a committed IPQ holder and one or more committed Arbitration IFQ holder(s) are unable to reach an agreement on whether to adopt a Lengthy Season approach, they may request mediation to assist the parties in determining whether to adopt a Lengthy Season approach. The parties may request a Contract Arbitrator to act as a mediator. If the mediation proves unsuccessful or is not selected, the Arbitration IFQ holder may initiate enter Binding Arbitration to determine whether to adopt a lengthy season approach. ( 1 ( 2 (iv) Share matching. http://www.fakr.noaa.gov. (B) To commit Arbitration IFQ, the holder of uncommitted IFQ must offer an amount of Arbitration IFQ: ( 1 ( 2 (C) Any holder of uncommitted IPQ must accept all proposed Arbitration IFQ commitments, up to the amount of its uncommitted IPQ. The commitment of IPQ will take place on receipt of notice from the holder of uncommitted Arbitration IFQ of the intention to commit that IFQ. (D) After matching, an Arbitration IFQ holder and an IPQ holder may decide to enter mediation to reach agreement on contract terms. The Arbitration IFQ holder and IPQ holder may request a Contract Arbitrator to act as a mediator to facilitate an agreement. ( 1 ( 2 (v) Initiation of Binding Arbitration. (A) The lengthy season approach; (B) Performance disputes; and (C) Quality disputes. (vi) Joining a Binding Arbitration proceeding. (vii) Arbitration schedule meeting. (viii) Terms of last best offers. (ix) Submission of last best offers. (x) Arbitration decisions. (xi) Announcement of decisions. (B) The Contract Arbitrator will notify the parties by providing each Arbitration IFQ holder and IPQ holder that is a party to the Binding Arbitration proceeding, a copy of any decision. The decision is binding on the parties to the Binding Arbitration proceeding. (4) Basis for the Arbitration decision. (i) The Contract Arbitrator's decision shall: (A) Be based on the historical distribution of first wholesale revenues between fishermen and processors in the aggregate based on arm's length first wholesale prices and ex-vessel prices, taking into consideration the size of the harvest in each year; and (B) Establish a price that preserves the historical division of revenues in the fishery while considering the following: ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 ( 8 ( 9 (C) Consider the Non-Binding Price Formula established in the fishery by the Formula Arbitrator. (ii) The Contract Arbitrator's decision may rely on any relevant information available to the Contract Arbitrator, including, but not limited to: (A) Information provided by the QS, PQS, IPQ and IFQ holders in the fishery regarding the factors identified in paragraph (h)(4)(i) of this section; and (B) The Market Report for the fishery. (iii) Each of the Arbitration IFQ holders and the IPQ holders that is party to the proceeding may provide the Contract Arbitrator with additional information to support its last best offer. The Contract Arbitrator must receive and consider all data submitted by the parties. (iv) The Contract Arbitrator may request specific information from the Arbitration IFQ holder(s) and IPQ holder that will be useful in reaching a final decision. The Contract Arbitrator will not have subpoena power and it is in the sole discretion of the person from whom information is requested as to whether to provide the requested information. (5) Limits on the release of data. (i) Arbitration IFQ holders that are party to an arbitration proceeding shall have access only to information provided directly by the IPQ holder to the Contract Arbitrator for that Binding Arbitration proceeding. (ii) IPQ holders that are party to an arbitration proceeding shall have access only to information provided directly by an Arbitration IFQ holder to the Contract Arbitrator for that Binding Arbitration proceeding. (iii) The Contract Arbitrator shall keep confidential the information provided by any QS, PQS, IFQ, or IPQ holders in the fishery and not disclose the identity of the persons providing specific information except as provided in paragraph (h)(6) of this section. (iv) The Arbitration IFQ holders and IPQ holders shall not release information received in a Binding Arbitration proceeding to persons who were not party to that Binding Arbitration proceeding other than the final result of that arbitration proceeding except as provided for in paragraph (h)(6) of this section. (6) Information provided to NMFS. (i) A copy of any minutes from any meeting attended by that Contract Arbitrator between or among any PQS or IPQ holders concerning any negotiations under this section; (ii) Any last-best offers made during the Binding Arbitration process, including all contract details, the names of other participants in the arbitration, and whether the bid was accepted by the Contract Arbitrator; and (iii) A copy of any information, data, or documents given by the Contract Arbitrator to any person who is not a party to the particular arbitration for which that information was provided. The Contract Arbitrator must identify the arbitration to which the information, data, or documents apply, and the person to whom those information, data, or documents were provided. (7) Enforcement of Binding Arbitration decisions. (8) Failure of Contract Arbitrator(s). (9) Post Binding Arbitration opt-in. (A) All the terms from the arbitrated contract will apply. The Contract Arbitrator may determine fees and a time frame by which a Post Binding Arbitration opt-in may occur if those terms are not specified in the arbitrated contract. (B) Once exercised, the opt-in results in a contract that is binding on both the Arbitration IFQ and IPQ holder. (ii) To initiate the opt-in process, the holder of uncommitted Arbitration IFQ will notify the holder of uncommitted IPQ in writing of its intent to opt-in. (iii) Holders of uncommitted Arbitration IFQ may opt-in to a contract resulting from a completed Binding Arbitration procedure with a person that holds uncommitted IPQ for that fishery. (iv) If the IPQ holder and the Arbitration IFQ holder are unable to resolve a dispute regarding whether the opt-in offer is consistent with the original contract from the completed Binding Arbitration procedure, the dispute may be decided by the Contract Arbitrator to the original arbitration that resulted in the contract to which the Arbitration IFQ holder is seeking to opt-in. The Contract Arbitrator will decide only whether the proposed opt-in terms are consistent with the original contract. (10) Performance disputes. (i) Binding Arbitration resulting from a performance dispute can occur at any point during or after the crab fishing year. The dispute must be raised by the IPQ holder or the Arbitration IFQ holder. Arbitration of that performance dispute must be initiated prior to the date of the first crab fishing season for the following crab fishing year in that crab QS fishery. (ii) Performance dispute arbitration shall follow the applicable procedures described for a Binding Arbitration in paragraph (h)(3) of this section, except that the time frame for the procedure applicable to a performance dispute will be determined by the Contract Arbitrator once the dispute has been raised. (iii) If a party fails to abide by the arbitration decision, a party may pursue available contract remedies. (iv) The costs of arbitrating performance disputes shall be provided from the general fees collected by the Arbitration Organizations pursuant to paragraph (e) of this section. (v) The Contract Arbitrator may assign fees to any party bringing frivolous complaints. Any such fees shall be paid by the party and not from the fees collected under paragraph (e)(2)(vi) of this section. (11) Quality disputes. (i) In cases where the IPQ holder and Arbitration IFQ holder(s) have agreed to a formula-based price for crab but where they cannot reach an agreement on the quality and price of the crab, the IPQ holder and Arbitration IFQ holder(s) will receive their share of the value of the amount of crab delivered based on the provisions of the contract. (ii) In quality disputes where the Arbitration IFQ holders prefer to use actual ex-vessel price and not a formula-based price and a dispute arises regarding crab quality and price, the dispute should be referred to a mutually agreeable independent quality specialist firm. This independent quality specialist firm will determine the quality of the crab. This information will be used as the basis for subsequent price determinations. The IPQ holder and Arbitration IFQ holder(s) with this quality dispute shall share the cost of hiring the specialist firm and agree to abide by its findings according to the terms of their agreement. (i) Other procedures and administrative decisions. [70 FR 10241, Mar. 2, 2005, as amended at 70 FR 33395, June 8, 2005; 70 FR 75421, Dec. 20, 2005; 71 FR 40033, July 14, 2006; 73 FR 35088, June 20, 2008; 73 FR 76190, Dec. 15, 2008; 74 FR 51519, Oct. 7, 2009; 76 FR 68364, Nov. 4, 2011] § 680.21 Crab harvesting cooperatives. This section governs the formation and operation of crab harvesting cooperatives. The regulations in this section apply only to crab harvesting cooperatives that have formed for the purpose of applying for and fishing under a crab harvesting cooperative IFQ permit issued by NMFS. Members of crab harvesting cooperatives that are not FCMA cooperatives should consult counsel before commencing any activity if the members are uncertain about the legality under the antitrust laws of the crab harvesting cooperative's proposed conduct. (a) Formation of crab harvesting cooperatives. (1) Membership requirements. (i) Minimum number of members. (ii) Voluntary nature of membership. (iii) Membership in more than one crab harvesting cooperative. (B) Upon joining a crab harvesting cooperative for a CR fishery, NMFS will convert all of a QS holder's QS holdings for that CR fishery to crab harvesting cooperative IFQ. (2) Legal and organizational requirements. (i) Registered business entity. (ii) Appointment of a designated representative. (b) Application for annual crab harvesting cooperative IFQ permits. (1) June 15 application deadline. (2) Contents. (i) Cooperative identification. (ii) Members of the cooperative. (iii) Additional documentation. (3) Issuance of crab harvesting cooperative IFQ permits. (4) Appeals. (c) Restrictions on fishing under a crab harvesting cooperative IFQ permit. (1) Maintenance of permit on board. (2) Persons eligible to harvest crab under a crab harvesting cooperative IFQ permit. (3) Liability. (d) Transfers by members of a crab harvesting cooperative. (1) Transfer of QS. (2) Transfer of individually held IFQ. (3) Transfer of crab harvesting cooperative IFQ prohibited. (e) Transfers by crab harvesting cooperatives. (1) Acquisition of QS, PQS, and IPQ prohibited. (2) Transfer of crab harvesting cooperative IFQ. (3) Use caps. (f) Application for transfer of crab harvesting cooperative IFQ Completed application. (2) Certification of transferor Non-electronic submittal. (ii) Electronic submittal. (3) Certification of transferee Non-electronic submittal. (ii) Electronic submittal. (4) Submittal information. http://alaskafisheries.noaa.gov (g) Inseason changes to crab harvesting cooperative membership. (1) Eligible membership changes. (2) Inseason membership changes are voluntary. (3) Application for an inseason change in cooperative membership. (4) Successors-in-interest. [70 FR 10241, Mar. 2, 2005, as amended at 70 FR 33395, June 8, 2005; 73 FR 35088, June 20, 2008; 74 FR 51519, Oct. 7, 2009; 80 FR 15897, Mar. 26, 2015; 81 FR 1561, Jan. 13, 2016] § 680.22 Sideboard protections for GOA groundfish fisheries. The regulations in this section restrict the owners of vessels with a history of participation in the Bering Sea snow crab fishery from using the increased flexibility provided by the CR Program to expand their level of participation in GOA groundfish fisheries. These restrictions are commonly known as “sideboards.” (a) Vessels and LLP licenses subject to sideboard restrictions. (1) Vessels subject to GOA groundfish sideboard directed fishing closures. (i) Any non-AFA vessel that made a legal landing of Bering Sea snow crab ( C. opilio C. opilio (ii) Any vessel named on an LLP license that was generated in whole or in part by the fishing history of a vessel meeting the criteria in paragraph (a)(1)(i) of this section. (2) Vessels prohibited from directed fishing for Pacific cod in the GOA. (i) Any vessel subject to GOA groundfish sideboard closures under paragraph (a)(1)(i) of this section that landed less than 50 mt (110,231 lb), in round weight equivalents, of groundfish harvested from the GOA between January 1, 1996, and December 31, 2000, or (ii) Any vessel named on an LLP license that was generated in whole or in part by the fishing history of a vessel meeting the criteria in paragraph (a)(2)(i) of this section. (3) Vessels and LLP licenses exempt from Pacific cod sideboard closures in the GOA. (i) Any vessel subject to GOA groundfish closures under paragraph (a)(1)(i) of this section that landed less than 750,000 lb (340.2 mt), in raw weight equivalents, of Bering Sea snow crab and more than 680 mt (1,499,143 lb), in round weight equivalents, of Pacific cod harvested from the GOA between January 1, 1996, and December 31, 2000; and (ii) Any LLP license that: (A) Was initially issued based on the catch history of a vessel meeting the criteria in paragraph (a)(3)(i) of this section; and (B) Did not generate crab QS based on legal landings from any vessel other than the vessel meeting the criteria in paragraph (a)(3)(i) of this section. (4) Vessels and LLP licenses exempt from pollock sideboard closures in the GOA. (i) Any vessel subject to GOA groundfish closures under paragraph (a)(1)(i) of this section that landed less than 1,212,673 lb (550 mt), in raw weight equivalents, of Bering Sea snow crab, and had 20 or more legal landings of pollock harvested from the GOA between January 1, 1996, and December 31, 2000; and (ii) Any LLP license that: (A) Was initially issued based on the catch history of a vessel meeting the criteria in paragraph (a)(4)(i) of this section; and (B) Did not generate crab QS based on legal landings from any vessel other than the vessel meeting the criteria in paragraph (a)(4)(i) of this section. (b) Notification of affected vessel owners and LLP license holders. (c) Appeals. (d) Determination of GOA groundfish sideboard ratios. (1) Pacific cod. (2) Pollock. (3) Groundfish other than Pacific cod and pollock. (e) Conversion of sideboard ratios into annual sideboard harvest limits. (1) Annual sideboard harvest limits. (ii) NMFS will not establish an annual sideboard harvest limit for Pacific cod for vessels that catch and process Pacific cod using hook-and-line gear in the Central GOA Regulatory Area if all eligible participants request that the sideboard harvest limit be removed in accordance with the requirements of paragraph (e)(1)(ii)(A) of this section. NMFS will not establish an annual sideboard harvest limit for Pacific cod for vessels that catch and process Pacific cod using hook-and-line gear in the Western GOA Regulatory Area if all eligible participants request that the sideboard harvest limit be removed in accordance with the requirements of paragraph (e)(1)(ii)(B) of this section. NMFS will publish notification of the removal of the sideboard harvest limit for Pacific cod for vessels that catch and process Pacific cod using hook-and-line gear in the Central GOA Regulatory Area or the Western GOA Regulatory Area through the annual GOA groundfish harvest specifications (see § 679.20(c)(1)(iii) and (c)(3)(ii)). (A) Central GOA. (B) Western GOA. (iii) NMFS will not establish an annual sideboard harvest limit for groundfish species, other than Pacific cod apportioned to catcher vessels using pot gear in the Western and Central Regulatory Areas. Directed fishing for groundfish species, other than Pacific cod apportioned to catcher vessels using pot gear in the Western and Central Regulatory Areas, is prohibited. (2) Sideboard directed fishing allowance. (ii) If the Regional Administrator determines that a harvest limit is insufficient to support a directed fishery for that species or species group, then the Regional Administrator may set the sideboard directed fishing allowance at zero for that species or species group. (3) Directed fishing closures. Federal Register (f) Sideboard protections in the State of Alaska parallel groundfish fisheries. [70 FR 10241, Mar. 2, 2005, as amended at 71 FR 38301, July 6, 2006; 76 FR 35780, June 20, 2011; 76 FR 74690, Dec. 1, 2011; 80 FR 28545, May 19, 2015; 84 FR 2731, Feb. 8, 2019; 86 FR 11904, Mar. 1, 2021] § 680.23 Equipment and operational requirements. (a) Catcher vessel requirements. (1) Carry and use a VMS as described in paragraph (d) of this section; (2) Land all retained crab to an RCR operating under an approved catch monitoring plan as described in paragraph (g) of this section; (b) Catcher/processor requirements. (1) Carry and use a VMS as described in paragraph (d) of this section; (2) Weigh all retained crab to be processed on board, in its raw form, on a scale approved by NMFS as described in paragraph (e) of this section; (3) Land all retained crab not processed on board at an RCR; (4) Offload all CR crab product processed onboard at a shoreside location in the United States accessible by road or regularly scheduled air service; and (5) Provide an approved observer platform scale and test weights that meet the requirements in paragraph (e) of this section. (c) RCR requirements. (1) Ensure that all CR crab landings are weighed on a scale approved by the State in which the landing takes place. (2) Ensure that all crab landing and weighing be conducted as specified in an approved crab monitoring plan as described in paragraph (g) of this section, and that a copy of the crab monitoring plan is made available to NMFS personnel or authorized officer upon demand. (d) Vessel Monitoring System (VMS) requirements General requirements. (2) VMS transmission requirements. (i) The vessel is operating in any reporting area (see definitions at § 679.2) off Alaska; (ii) The vessel has crab pots or crab pot hauling equipment, or a crab pot launcher onboard; and (iii) The vessel has or is required to have a Federal crab vessel permit for that crab fishing year. (e) Scales approved by NMFS. (1) At-sea scale tests. (i) Belt scales. (ii) Automatic hopper scales. (iii) Platform scales used for observer sampling. (iv) Approved test weights. (v) Requirements for all scale tests. (B) Conduct the scale test and record the following information on the at-sea scale test report form: ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 (C) Maintain the test report form on board the vessel until the end of the crab fishing year during which the tests were conducted, and make the report forms available to observers, NMFS personnel, or an authorized officer. In addition, the vessel owner must retain the scale test report forms for 3 years after the end of the crab fishing year during which the tests were performed. All scale test report forms must be signed by the vessel operator. (2) Scale maintenance. (3) Printed reports from the scale. (i) Reports of catch weight and cumulative weight. (A) The vessel name and Federal crab vessel permit number; (B) The weight of each load in the weighing cycle (hopper scales only); (C) The date and time the information was printed; (D) The total amount weighed since the last printout was made; and (E) The total cumulative weight of all crab or other material weighed on the scale. (ii) Printed report from the audit trail. (iii) Platform scales used for observer sampling. (4) Scale installation requirements. (i) From the location where the observer samples unsorted crab, the observer can ensure that all crab are being weighed; (ii) The scale may not be installed in a manner that facilitates bypassing. It must not be possible for the scale inspector and an assistant to bypass the scale with 100 kg (220 lb) of test material in less than 20 seconds. (f) Scales approved by the state. (1) Verification of approval. (2) Visibility. (3) Printed scale weights. (ii) A scale used to weigh any portion of a landing of CR crab must produce a printed record for each landing, or portion of each landing, weighed on that scale. The printed record must include: (A) The RCR's name; (B) The weight of each load in the weighing cycle; (C) The total weight of crab in each landing, or portion of the landing that was weighed on that scale; (D) The date and time the information is printed; and (E) The name and ADF&G vessel registration number of the vessel making the delivery. The scale operator may write this information on the scale printout in ink at the time of landing. (4) Inseason scale testing. (i) Inseason testing criteria. Test load in scale divisions Maximum error in scale divisions (A) 0-500 1 (B) 501-2,000 2 (C) 2,001-4,000 3 (D) >4,000 4 (ii) Test weight requirements. (A) Automatic hopper 0 to 150 kg (0 to 300 lb) capacity. Certified test weights Other test ( 1 Minimum. ( 2 Maximum. (B) Automatic hopper >150 kg (300 lb) capacity. Certified test weights Other test ( 1 Minimum. ( 2 Maximum. (C) Platform, flatbed or hanging scales less than 150 kg (300 lb) capacity. Certified test weights Other test ( 1 Not Acceptable. ( 2 Not Acceptable. ( 3 Not Acceptable. (D) Platform, flatbed or hanging scales >150 kg (300 lb) capacity. Certified test weights Other test ( 1 Not Acceptable. ( 2 50 percent of maximum or 75 kg (150 lb), whichever is greater. ( 3 75 percent of maximum or 150 kg (300 lb), whichever is greater. (iii) Certified test weights. (iv) Other test material. (g) Crab Monitoring Plans (CMP). (1) CMP Approval. (2) Inspection scheduling. (i) Name and signature of the person submitting the application and the date of the application; (ii) Address, telephone number, facsimile number, and e-mail address (if available) of the person submitting the application; and (iii) A proposed CMP detailing how the RCR will meet each of the standards in paragraph (g)(5) of this section. (3) Approval period. (4) Changing an approved CMP. (i) Name and signature of the person submitting the addendum; (ii) Address, telephone number, facsimile number and e-mail address (if available) of the person submitting the addendum; and (iii) A complete description of the proposed CMP change. (5) CMP standards Crab sorting and weighing requirements. (ii) Scales used for weighing crab. (iii) Scale testing procedures. (A) Describes the procedure the plant will use to test the scale; (B) Lists the test weights and equipment required to test the scale; (C) Lists where the test weights and equipment will be stored; and (D) Lists the names of the personnel responsible for conducting the scale testing. (iv) Printed record. (v) Observation area. (A) Access to the observation area. (B) Monitoring the offloading and weighing of crab. (C) Other requirements. (vi) Plant liaison. (A) Orienting new observers, NMFS staff and enforcement aides to the plant; (B) Assisting in the resolution of observer concerns; and (C) Informing NMFS if changes must be made to the CMP. (vii) Drawing to scale of delivery location. (A) Where and how crab are removed from the delivering vessel; (B) The observation area; (C) The location of each scale used to weigh crab; and (D) Each location where crab is sorted. (viii) Single geographic location. [70 FR 10241, Mar. 2, 2005, as amended at 70 FR 75421, Dec. 20, 2005; 73 FR 76190, Dec. 15, 2008; 75 FR 56486, Sept. 16, 2010] § 680.30 [Reserved] Subpart C—Quota Management Measures § 680.40 Crab Quota Share (QS), Processor QS (PQS), Individual Fishing Quota (IFQ), and Individual Processor Quota (IPQ) Issuance. (a) Crab QS and Crab QS fisheries. (1) Allocations. (2) Official crab rationalization record. (i) An LLP license is presumed to have been used onboard the same vessel from which that LLP is derived, unless documentation is provided establishing otherwise. (ii) If more than one person is claiming the same legal landings or legal processing activities, then each person eligible to receive QS or PQS based on those activities will receive an equal share of any resulting QS or PQS unless the applicants can provide written documentation establishing an alternative means for distributing the QS or PQS. (iii) For the purposes of determining eligibility for CPO QS, a person is presumed to have processed BSAI crab in 1998 or 1999 if the vessel on which the applicant's LLP license is based processed such crab in those years. (b) QS sectors and regional designations General. (i) Catcher Vessel Owner (CVO) QS (ii) Catcher Vessel Crew (CVC) QS (iii) Catcher/Processor Owner (CPO) QS (iv) Catcher/Processor Crew (CPC) QS (2) Regional designations. (A) North QS (B) South QS (C) West QS (ii) Regional designations do not apply (Undesignated QS) to: (A) Crab QS for the EBT or WBT crab QS fishery; (B) Crab QS for that portion of the WAG QS fishery not regionally designated for the West region; (C) CVC QS; (D) CPO QS unless that QS is transferred to the CVO QS sector, in which case the regional designation is made by the recipient of the resulting CVO QS at the time of transfer; and (E) CPC QS. (iii) The regional designations that apply to each of the crab QS fisheries are specified in the following table: Crab QS Fishery North Region South Region West Region Undesignated Region (A) EAG X X (B) WAG X X (C) EBT X (D) WBT X (E) BSS X X (F) BBR X X (G) PIK X X (H) SMB X X (I) WAI X (iv) The regional designation ratios applied to QS and PQS for each crab QS fishery will be established based on the regional designations determined on August 1, 2005. QS or PQS issued after this date will be issued in the same ratio. (3) Qualified person (i) CVO QS. (ii) CPO QS. (B) Harvested and processed at sea any crab species in any BSAI crab fishery during the years 1998 or 1999. (iii) CVC QS and CPC QS. (B) Has historical participation in the fishery demonstrated by being the individual named on a State of Alaska Interim Use Permit for a QS crab fishery and made at least one legal landing per year for any 3 eligibility years under that permit based on data from fish tickets maintained by the State of Alaska. The qualifying years are described in Column C of Table 7 to this part. (C) Has recent participation in the fishery demonstrated by being the individual named on a State of Alaska Interim Use Permit for a QS crab fishery and made at least one legal landing under that permit in any 2 of 3 seasons based on data from fish tickets maintained by the State of Alaska. Those seasons are defined in Column D of Table 7 to this part; except that the requirement for recent participation does not apply if: ( 1 ( 2 (4) Qualification for initial allocation of QS Qualifying year. (ii) Legal landing of crab (A) Legal landings exclude any deadloss, test fishing, fishing conducted under an experimental, exploratory, or scientific activity permit, or the fishery conducted under the Western Alaska CDQ Program. (B) Landings made onboard a vessel that gave rise to a crab LLP license or made under the authority of an LLP license are non-severable from the crab LLP license until QS has been issued for those legal landings, except as provided for in paragraph (c)(2)(vii) of this section. (C) Landings may only be used once for each QS sector for the purposes of allocating QS. (D) Landings made from vessels which are used for purposes of receiving compensation through the BSAI Crab Capacity Reduction Program may not be used for the allocation of CVO QS or CPO QS. (E) Legal landings for purposes of allocating QS for a crab QS fishery only include those landings that resulted in the issuance of an LLP license endorsed for that crab QS fishery, or landings that were made in that crab QS fishery under the authority of an LLP license endorsed for that crab QS fishery, except as provided for in paragraph (c)(2)(vii) of this section. (iii) Documentation. (c) Calculation of QS allocation General. (ii) For each State of Alaska Interim Use Permit under which an applicant applies for CVC QS or CPC QS, the initial allocation of QS will be based on the legal landings that were made under the authority of that permit. (2) Computation for initial issuance of QS. (ii) The initial QS pool is described in Table 8 to this part. (iii) A person's initial allocation of QS shall be based on a percentage of the legal landings for the applicable sector in each crab QS fishery: (A) Associated with crab LLP licenses held by the applicant for CVO or CPO QS; or (B) Authorized under a State of Alaska Interim Use Permit held by the applicant for CVC or CPC QS. (iv) The Regional Administrator shall calculate the allocation of CVO and CPO QS for each crab QS fishery “f” based on each fully transferable LLP license “l” held by a qualified person by the following formulas: (A) Sum legal landings for each qualifying year, as described in Column B of Table 7 to this part, and divide that amount by the AHD for that year as follows: (σ legal landings lf f lf (B) In those fisheries where only a subset of the qualifying years are applied, the Regional Administrator will use the years that yield the highest percentages of each AHD as calculated in paragraph (c)(2)(iv)(A) of this section. (C) Sum the highest percentages of the AHD's for that license as calculated under paragraph (c)(2)(iv)(B) of this section and divide by the number in Column E of Table 7 to this part (Subset of Qualifying Years). This yields the Average Percentage as presented in the following equation: σ Percentages of the AHD lf f lf (D) Divide the Average percentage in paragraph (c)(2)(iv)(C) of this section for a license and fishery by the Sum of all Average Percentages for all licenses for that fishery as presented in the following equation: Average Percentage lf sf lf (E) Multiply the Percentage of the Total Percentages in paragraph (c)(2)(iv)(D) of this section by the Initial QS Pool as described in Table 8 to this part. This yields the unadjusted number of QS units derived from a license for a fishery. (F) Multiply the unadjusted number of QS units in paragraph (c)(2)(iv)(E) of this section by 97 percent. This yields the number of QS units to be allocated. (G) Determine the percentage of legal landings in the subset of qualifying years associated with a LLP license with a catcher/processor designation that were processed on that vessel and multiply the amount calculated in paragraph (c)(2)(iv)(F) of this section by this percentage. This yields the amount of CPO QS to be allocated. (H) Determine the percentage of legal landings in the subset of qualifying years associated with a LLP license that were not processed on that vessel and multiply the amount calculated in paragraph (c)(2)(iv)(F) of this section by this percentage. This yields the amount of CVO QS to be allocated. (I) Determine the percentage of legal landings associated with an LLP license in the subset of qualifying years that were delivered in each region as defined in paragraph (b)(2) of this section. The amount calculated in paragraph (c)(2)(iv)(H) of this section is multiplied by the percentage for each region. (J) The percentage calculated in paragraph (c)(2)(iv)(I) of this section may be adjusted according to the provisions at paragraphs (c)(3) and (c)(4) of this section. (v) As shown in the formulas under this paragraph (c)(2)(v), the allocation of CVC and CPC QS for each crab QS fishery “f” based on each State of Alaska Interim Use Permit “i” held by each qualified person shall be calculated by the Regional Administrator as follows: (A) Sum legal landings for each qualifying year as described in Column B of Table 7 to this part and divide that amount by the AHD for that year using the following equation: (σ legal landings if f if (B) In those fisheries where only a subset of the qualifying years are applied, the Regional Administrator will use the years that yield the highest percentages of the AHD as calculated in paragraph (c)(2)(v)(A) of this section. (C) Sum the highest percentages of the AHDs for that license calculated under paragraph (c)(2)(v)(B) of this section and divide by the number in Column E of Table 7 to this part (Subset of Qualifying Years). This yields the Average Percentage as presented in the following equation: σ Percentages of the AHD lf f if (D) Divide the Average Percentage in paragraph (c)(2)(v)(C) of this section for a permit and fishery by the Sum of all Average Percentages for all permits for that fishery as presented in the following equation: Average Percentage if sf if (E) Multiply the Percentage of the Total Percentages in paragraph (c)(2)(v)(E) of this section by the Initial QS Pool as described in Table 8 to this part. This yields the unadjusted number of QS units derived from a permit for a fishery. (F) Multiply the unadjusted number of QS units in paragraph (c)(2)(v)(E) of this section by 3 percent. This yields the number of QS units to be allocated. (G) Determine the percentage of legal landings in the subset of qualifying years associated with a permit that were processed on that vessel and multiply the amount calculated in paragraph (c)(2)(v)(F) of this section by this percentage. This yields the amount of CPC QS to be allocated. (H) Determine the percentage of legal landings in the subset of qualifying years associated with a permit that were not processed on that vessel and multiply the amount calculated in paragraph (c)(2)(v)(F) of this section by this percentage. This yields the amount of CVC QS to be allocated. (I) Determine the percentage of legal landings associated with a permit in the subset of qualifying years that were delivered in each region as defined in paragraph (b)(2) of this section. The amount calculated in paragraph (c)(2)(v)(H) of this section is multiplied by the percentage for each region. (J) The percentage calculated in paragraph (c)(2)(v)(I) of this section may be adjusted according to the provisions at paragraphs (c)(3) and (c)(4) of this section. The amount calculated in paragraph (c)(2)(v)(H) of this section is multiplied by the percentage for each region. These regional QS designations do not apply to CVC QS. (vi) Sunken vessel provisions. (B) If a person applies for CVO QS or CPO QS based, in whole or in part, on the activities of a vessel that sank and: ( 1 ( 2 ( 3 ( 4 (vii) LLP license history exemption. (A) Deployed a vessel in a crab QS fishery under the authority of an interim or permanent fully transferable LLP license; and (B) Prior to January 1, 2002, received by transfer, as authorized by NMFS, a permanent fully transferable LLP license for use in that crab QS fishery to insure that a vessel would remain authorized to participate in the fishery, may choose to use as the legal landings which are the basis for QS allocation on his or her application for crab QS or PQS either: ( 1 ( 2 (C) If the history described in paragraph (c)(2)(vii)(B)( 1 2 (3) Adjustment of CVO and CVC QS allocation for North and South regional designation. (i) Determine the ratio of the Initial PQS pool in the North and South regions. (ii) Multiply the Initial QS pool by the ratio of North and South PQS. This will yield the target QS pool for each region. (iii) Sum the QS for all persons who are eligible to receive North QS yielding the unadjusted North QS pool, and sum the QS for all persons who are eligible to receive South QS yielding the unadjusted South QS pool. (iv) To calculate the amount of QS available for adjustment, subtract the amount of QS for persons receiving North only QS from the unadjusted North QS pool and subtract the amount of QS for persons receiving South only QS from the unadjusted South QS pool, as presented in the following equations: (A) Unadj. North QS −North QS only = North QS for [North & South] QS holders. (B) Unadj. South QS −South QS only = South QS for [North & South] QS holders. (v) Determine which region becomes the gaining region if the target QS pool is greater than the unadjusted QS pool. (vi) Subtract the gaining region unadjusted QS pool from the gaining region target QS pool to calculate the number of QS units that need to be applied to the gaining region. This amount is the Adjustment Amount as presented in the following equation: Unadj. gaining region QS −Target gaining region QS pool = Adjustment Amount (vii) Divide the Adjustment Amount by the unadjusted losing region QS pool for North and South QS holders. This yields the regional adjustment factor (RAF) for each person as presented in the following equation: Adj. Amount/unadjusted losing region QS pool for [North & South] QS holders = RAF (viii) For each person (p) who holds both North and South Region QS, the QS adjustment (QS Adj. (p)) to that person's Unadjusted losing region QS is expressed in the following equation as: QS adj. p = Unadjusted losing region QS p × RAF (ix) The QS adjustment for person (p) is made by subtracting the QS adjustment from that person's unadjusted losing region QS amount and added to that person's unadjusted gaining region QS. These adjustments will yield the regional adjustment QS amounts for that person. (4) Regional designation of Western Aleutian Islands golden king crab. (i) The West QS pool is equal to 50 percent of the initial QS pool. (ii) The Undesignated QS pool is equal to 50 percent of the initial QS pool. (iii) Sum the QS for all persons who are eligible to receive West QS yielding the unadjusted West QS pool, and sum the QS for all persons who are eligible to receive undesignated QS yielding the unadjusted undesignated QS pool. (iv) To calculate the amount of QS available for adjustment, subtract the amount of QS for persons receiving West only QS from the unadjusted West QS pool and subtract the amount of QS for persons receiving undesignated only QS from the unadjusted undesignated QS pool, as presented in the following equation: (A) Unadj. West QS−West QS only = West QS for [West & Undesignated] QS holders. (B) Unadj. Undesignated QS−Undesignated QS only = Undesignated QS for [West & Undesignated] QS holders. (v) Subtract the gaining region Unadjusted QS pool from the gaining region Target QS pool to calculate the number of QS units that will need to be applied to the gaining region. This amount is the Adjustment Amount as presented in the following equation: Target gaining region QS pool−unadjusted region QS = Adjustment Amount (vi) Divide the Adjustment Amount by the unadjusted losing region QS pool for West and Undesignated QS holders. This yields the regional adjustment factor (RAF) for each person as presented in the following equation: Adj. Amount/unadjusted losing region QS pool for West & Undesignated QS holders = RAF (vii) For each person (p) who holds both unadjusted West and Undesignated Region QS, the QS adjustment (QS Adj. p) to that person's Unadjusted West QS is expressed in the following equation as: QS adj. p = Unadjusted West QS p × RAF (viii) The QS adjustment for person (p) is made by subtracting the QS adjustment for that person's unadjusted losing region QS amount and subtracted from that person's unadjusted gaining region QS. These adjustments will yield the regional adjustment QS amounts for that person. (5) Issuance of converted CPO QS. (ii) Entity A is comprised only of Yardarm Knot, Inc. (NMFS ID # 675). (iii) Entity B is comprised only of Blue Dutch, LLC (NMFS ID # 3163). (iv) Entity C is comprised only of Trident Seafoods, Inc. (NMFS ID # 8184). (v) NMFS will issue Entity A, B, or C, described in paragraphs (c)(5)(ii) through (c)(5)(iv) of this section, one unit of converted CPO for each unit of CVO QS and 0.9 units of PQS indicated in an approved application for converted CPO QS/IFQ. (vi) For each crab fishing year, the Regional Administrator will not issue CPO QS for the BBR or BSS crab QS fishery: (A) To Entity A described in paragraph (c)(5)(ii) of this section that is greater than the amount of converted CPO QS that may be derived from the amount of PQS units with a North Region designation initially issued by NMFS to Yardarm Knot, Inc. (NMFS ID # 675), and any affiliates of Yardarm Knot, Inc., as listed on an annual application for converted CPO QS/IFQ for that crab fishing year; (B) To Entity B described in paragraph (c)(5)(iii) of this section that is greater than the amount of converted CPO QS that may be derived from the amount of PQS units with a North Region designation initially issued by NMFS to Blue Dutch, LLC, (NMFS ID # 3163) under paragraph (e)(3) of this section and any affiliates of Blue Dutch, LLC, as listed on an annual application for annual application for converted CPO QS/IFQ for that crab fishing year; and (C) To Entity C described in paragraph (c)(5)(iv) of this section that is greater than the amount of converted CPO QS that may be derived from the amount of CVO QS units with a North Region designation initially issued by NMFS to Trident Seafoods, Inc. (NMFS ID # 8184), and any affiliates of Trident Seafoods, Inc., as listed on an annual application for converted CPO QS/IFQ for that crab fishing year; (vii) CPO IFQ derived from converted CPO QS may be issued to a crab harvesting cooperative only if the entity described in paragraph (c)(5)(ii), (c)(5)(iii), or (c)(5)(iv) of this section holding the converted CPO QS is a member of that crab harvesting cooperative. (6) Offloading requirements for CPO IFQ derived from converted CPO QS. (d) Crab PQS and Crab PQS Fisheries General. (2) Regional designations. (i) North PQS (ii) South PQS (iii) West PQS (iv) Undesignated. (A) That portion of the WAG crab QS fishery that is not regionally designated as West Region PQS; and (B) The EBT or WBT crab QS fishery. (v) The specific regional designations that apply to PQS in each of the crab QS fisheries are described in paragraph (b)(2)(iii) of this section. (3) Qualified person, (i) Legally processed any crab QS species established in paragraph (a)(1) of this section during 1998 or 1999 as demonstrated on the official crab rationalization record; or (ii) Did not legally process any crab QS species during 1998 or 1999 according to the official crab rationalization record, but who: (A) Processed BSS crab QS species in each crab season for that fishery during the period from 1988 through 1997; and (B) From January 1, 1996, through June 10, 2002, invested in a processing facility, processing equipment, or a vessel for use in processing operations, including any improvements made to existing facilities with a total expenditure in excess of $1,000,000; or (C) Is the person to whom the history of legal processing of crab has been transferred by the express terms of a written contract that clearly and unambiguously provides that such legal processing of crab has been transferred. This provision would apply only if that applicant for PQS: ( 1 ( 2 (iii) Qualified persons, or their successors-in-interest, must exist at the time of application for PQS. (iv) A former partner of a dissolved partnership or a former shareholder of a dissolved corporation who would otherwise be a qualified person may apply for PQS in proportion to his or her ownership interest in the dissolved partnership or corporation. (v) A person who has acquired a processing corporation, partnership, or other entity that has a history of legal processing of crab is presumed to have received by transfer all of that history of legal processing of crab unless a clear and unambiguous written contract establishes otherwise. (4) Qualification for initial allocation of PQS Years. (ii) Ownership interest. (iii) Legal processing of crab (iv) Documentation. (A) NMFS may use information from a State of Alaska Commercial Operators Annual Report, State of Alaska fishery tax records, or evidence of direct payment from a receiver of crab to a harvester if that information indicates that the buyer of crab differs from the receiver indicated on State of Alaska fish ticket records; however: (B) Information on State of Alaska fish tickets shall be presumed to be correct for the purpose of determining evidence of legal processing of crab. An applicant will have the burden of proving the validity of information submitted in an application that is inconsistent with the information on the State of Alaska fish ticket. (e) Calculation of PQS allocation Computation for initial issuance of PQS. (ii) For each crab QS fishery, the percentage of the initial PQS pool that will be distributed to each qualified person shall be based on their percentage of the TPD according to the following procedure: (A) Sum the raw crab pounds purchased for each person for all qualifying years. (B) Divide the sum calculated in paragraph (e)(1)(ii)(A) of this section by the TPD. Multiply by 100. This yields a person's percentage of the TPD. (C) Sum the TPD percentages of all persons. (D) Divide the percentage for a person calculated in paragraph (e)(1)(ii)(B) of this section by the sum calculated in paragraph (e)(1)(ii)(C) of this section for all persons. This yields a person's percentage of the TPD. (E) Multiply the amount calculated in paragraph (e)(1)(ii)(D) of this section by the PQS pool for that crab QS fishery as that amount is defined in Table 8 to this part. (F) Determine the percentages of legally processed crab that were processed in each region. The percentages calculated in paragraph (e)(1)(ii)(E) of this section are multiplied by the amount determined within each regional designation. Regional designations will apply to that PQS according to the provisions established in paragraphs (d)(2) and (e)(2) of this section. (2) Regional designation of Western Aleutian Islands golden king crab. (ii) A person will receive only West PQS if, at the time of application, that person owns a crab processing facility that is located in the West region. A person will receive West region and Undesignated Region PQS if, at the time of application, that person does not own a crab processing facility located in the West region. Expressed algebraically, for any person (p) allocated both West region PQS and undesignated region PQS the formula is as follows: (A) PQS West (B) PQS Und. (C) PQS West West & Und. West West only (D) PQS West p West & Und. p West West & Und. West West & Und. Und. (E) PQS Und. p p West p (iii) For purposes of the allocation of PQS in the WAG crab fishery: (A) Ownership of a processing facility is defined as: ( 1 ( 2 (B) A processing facility is a shoreside crab processor or a stationary floating crab processor. (3) PQS issued to Blue Dutch, LLC. (ii) PQS units issued to Blue Dutch, LLC, under paragraph (e)(3)(i) of this section were assigned a regional designation according to the procedures established in paragraph (b)(2)(iv) of this section. (iii) PQS units issued to Blue Dutch, LLC, under paragraph (e)(3)(i) of this section may not be transferred to any other person. (f) Application for crab QS or PQS General. (i) The Regional Administrator will send application materials to the person identified by NMFS as an eligible applicant based on the official crab rationalization record. An application form may also be obtained from the Internet or requested from the Regional Administrator. (ii) An application for crab QS or PQS may be submitted to NMFS as instructed on the application. Forms are available on the NMFS Alaska Region website at http://alaskafisheries.noaa.gov (iii) An application that is postmarked, faxed, or hand delivered after the ending date for the application period for the Crab QS Program specified in the Federal Register (2) Contents of application. (i) Type of QS or PQS for which the person is applying. (A) If applying for CVO QS or CPO QS, submit information required in paragraphs (f)(2)(ii) through (f)(2)(iv) of this section; (B) If applying for CVC QS or CPC QS, submit information required in paragraphs (f)(2)(ii), (f)(2)(iii) and (f)(2)(v) of this section; (C) If applying for PQS, submit information required in paragraphs (f)(2)(ii), (f)(2)(iii) and (f)(2)(vi) of this section. (ii) Applicant information. (B) Indicate (YES or NO) whether applicant is a U.S. citizen; if YES, enter his or her date of birth. You must be a U.S. citizen or U.S. corporation, partnership, or other business entity to obtain CVO, CPO, CVC, or CPC QS. (C) Indicate (YES or NO) whether applicant is a U.S. corporation, partnership, association, or other business entity; if YES, enter the date of incorporation; (D) Indicate (YES or NO) whether applicant is deceased; if YES, enter date of death. A copy of the death certificate must be attached to the application; (E) Indicate (YES or NO) whether applicant described in paragraph (f)(2)(ii)(C) of this section is no longer in existence; if YES, enter date of dissolution and attach evidence of dissolution to the application; (iii) Fishery and QS/PQS type. (iv) CVO or CPO QS. (B) Indicate (YES or NO) whether applicant is applying for QS for any crab QS fishery for which the applicant purchased an LLP license prior to January 1, 2002, in order to remain in that fishery. If YES, include LLP crab license number, and the vessel's name, ADF&G vessel registration number, and USCG documentation number. (C) Indicate (YES or NO) whether QS is being claimed based on the fishing history of a vessel that was lost or destroyed. If YES, include the name, ADF&G registration number, and USCG documentation number of the lost or destroyed vessel, the date the vessel was lost or destroyed, and evidence of the loss or destruction. (D) Indicate (YES or NO) whether the lost or destroyed vessel described in paragraph (f)(2)(iv)(C) of this section was replaced with a newly constructed vessel. If YES, include the name, ADF&G vessel registration number, and USCG documentation number of the replacement vessel, date of vessel construction, and date vessel entered fishery(ies). Indicate (YES or NO) if the replacement vessel participated in a Bering Sea crab fishery by October 31, 2002. If YES, provide documentation of the replacement vessel's participation by October 31, 2002, in a Bering Sea crab fishery. (E) If the applicant is applying for CPO QS, indicate (YES or NO) whether the applicant processed crab from any of the crab QS fisheries listed on Table 1 to this part on board a vessel authorized by one of the LLP licenses listed in paragraph (f)(2)(iv)(A) of this section in 1998 or 1999. If YES, enter information for the processed crab, including harvest area, date of landing, and crab species. (v) CVC or CPC QS. (B) Indicate (YES or NO) whether applicant has recent participation in a crab QS fishery as defined in Table 7 to this part. (C) If the answer to paragraph (f)(2)(v)(A) or paragraph (f)(2)(v)(B) of this section is YES, enter State of Alaska Interim Use Permit number and the name, ADF&G vessel registration number, and USCG documentation number of vessel on which harvesting occurred. Select the qualifying years or seasons fished by QS fishery, and the dates during which those permits were used on that vessel; (D) Indicate (YES or NO) whether a person is applying as the successor-in-interest to an eligible applicant. If YES, attach to the application documentation proving the person's status as a successor-in-interest and evidence of the death of the eligible applicant. (vi) Processor QS. (B) If answer to paragraph (f)(2)(vi)(A) of this section is YES, enter the facility name and ADF&G processor code for each processing facility where crab, from any of the crab QS fisheries listed in Table 1 of this part, were processed and the qualifying years or seasons by fishery for which applicant is claiming eligibility for PQS. (C) If answer to paragraph (f)(2)(vi)(A) of this section is NO, indicate (YES or NO) whether applicant is claiming eligibility under hardship provisions; (D) If answer to paragraph (f)(2)(vi)(C) of this section is YES, both of the following provisions must apply to a processor to obtain hardship provisions. Attach documentation of the following circumstances: ( 1 ( 2 (E) Indicate (YES or NO) whether applicant has entered into a Community Right of First Refusal (ROFR) contract consistent with paragraph (f)(3) of this section pertaining to the transfer of any PQS and/or IPQ subject to ROFR and issued as a result of this application. (F) Contract that the legal processing history and rights to apply for and receive PQS based on that legal processing history have been transferred or retained; and (G) Any other information deemed necessary by the Regional Administrator. (H) If applicant is applying to receive PQS for the WAG crab QS fishery, indicate (YES or NO) whether applicant owns a crab processing facility in the West region ( see (vii) Applicant signature and certification. (3) Notice and contract provisions for community right of first refusal (ROFR) for initial issuance of PQS. http://www.fakr.noaa.gov. (ii) To be complete, an application for crab QS or PQS from a person based on legal processing that occurred in the GOA north of a line at 56°20′ N. lat. must also include an affidavit signed by the applicant stating that notice has been provided to the City of Kodiak and Kodiak Island Borough of the applicant's intent to apply for PQS. If the City of Kodiak and Kodiak Island Borough designate an entity to represent it in the exercise of ROFR under § 680.41(l), then the application also must include an affidavit of completion of a contract for ROFR that includes the terms enacted under the Consolidated Appropriations Act of 2004 (Pub. L. 108-199) and that is signed by the applicant for initial allocation of PQS and the ECC entity designated by the City of Kodiak and Kodiak Island Borough under § 680.41(l)(2). A list of contract terms is available from the NMFS Alaska Region Web site at http://www.fakr.noaa.gov. (4) Application evaluation. (5) Additional information or evidence. (6) 30-day evidentiary period. (7) Right of First Refusal (ROFR) contract provisions. (8) Initial administrative determinations (IAD). (g) Annual allocation of IFQ General. (2) Eligibility for CVC IFQ and CPC IFQ. (i) During one of the 3 crab fishing years preceding the crab fishing year for which the individual is filing an annual crab IFQ permit application, the individual has participated as crew in at least: (A) One fishing trip where a delivery of crab is made in any CR fishery; or (B) 30 days of: ( 1 ( 2 (C) Individuals may combine their participation specified in paragraphs (g)(2)(i)(B)( 1 2 (D) If the individual holds CVC QS or CPC QS in one or more CR fisheries and all CR crab fisheries for which the QS holder holds QS are closed, NMFS will exclude that crab fishing year when determining whether the individual has satisfied the participation requirements specified in paragraph (g)(2)(i) of this section. (ii) All of the CVC QS or CPC QS permits held by the individual were acquired using the eligibility criteria in § 680.41(c)(1)(vii)(B) or reissued under paragraph (m)(6) of this section and the individual has held those CVC QS or CPC QS permits for less than 3 crab fishing years. (3) Withholding of CVC IFQ or CPC IFQ. (i) Notice of C Share IFQ Withholding. (ii) Initial administrative determination (IAD). (h) Calculation of annual IFQ allocation General. (A) IFQ TAC f f f (B) IFQ pf f pf f (ii) CVO, CPO, CVC, and CPC IFQ. f f (A) CVC/CPC IFQ f f (B) CVO/CPO IFQ f f (2) Class A/B IFQ. (A) Initially assigned to the CVO QS sector; or (B) Transferred to the CVO QS sector from the CPO QS sector. (ii) The Class A/B IFQ TAC is the portion of the TAC assigned as Class A/B IFQ under paragraphs (h)(2)(i)(A) and (B) of this section. (3) Class A/B IFQ issuance ratio. (ii) The Regional Administrator will determine the amount of Class A and Class B IFQ that is assigned to each QS holder. The Class A IFQ is calculated by allocating 90 percent of the Class A/B IFQ TAC (TAC a) to Class A IFQ. A portion of the IFQ TAC a is allocated to persons eligible to hold only Class A IFQ (TAC a only), the remaining IFQ TAC (TAC r) is allocated for harvest by a person (p) eligible to receive both Class A IFQ and Class B IFQ. Expressed algebraically, for an individual person (p) eligible to hold both Class A and Class B IFQ the annual allocation formula is as follows: (A) TAC a (B) TAC r a a only (C) IFQ ap r a only p (D) IFQ bp p ap (4) Class A IFQ and Class B IFQ issuance to IPQ holders. (5) Class A IFQ and Class B IFQ issuance to persons affiliated with IPQ holders. (6) CVC IFQ. (ii) CVC IFQ is not subject to regional designation. (7) CPO IFQ. (ii) CPO IFQ is not subject to regional designation. (8) CPC IFQ. (ii) CPC IFQ is not subject to regional designation. (9) QS amounts for IFQ calculation. (10) Class A IFQ. (ii) Any amount of Class A IFQ that is issued in excess of the IPQ issuance limits for the BSS or BBR crab QS fisheries, as described in paragraph (j)(3) of this section, is not required to be delivered to an RCR with unused IPQ. (i) Annual allocation of IPQ. (j) Calculation of annual IPQ allocation General. a IPQ pf af pf f. (2) PQS amounts for IPQ calculation. (3) IPQ issuance limits. (i) 157,500,000 raw crab pounds (71,441.5 mt) in the BSS crab QS fishery; and (ii) 18,000,000 raw crab pounds (8,164.7 mt) in the BBR crab QS fishery. (4) IPQ issued to Blue Dutch, LLC BBR IPQ. (ii) BSS IPQ. (k) Timing for issuance of IFQ or IPQ. (l) Harvesting and processing privilege. (m) Participation requirements for retention of CVC QS and CPC QS. (2) During one of the 4 crab fishing years preceding the crab fishing year for which the individual is filing an annual crab IFQ permit application, the individual has participated as crew in at least: (i) One fishing trip where a delivery of crab is made in any CR fishery; or (ii) 30 days of: (A) Fishing in a commercial fishery managed by the State of Alaska or in a Federal commercial fishery in the EEZ off Alaska. Individuals may combine their participation as crew in State and Federal commercial fisheries to meet this requirement; or (B) On a tender vessel operating in support of a commercial fishery managed by the State of Alaska or in a Federal commercial fishery in the EEZ off Alaska. Individuals may combine their participation as crew on a tender vessel in State and Federal commercial fisheries to meet this requirement. (iii) Individuals may combine participation specified in paragraphs (m)(2)(ii)(A) and (B) of this section to meet this requirement. (iv) If the individual holds CVC QS or CPC QS in one or more CR crab fisheries and all CR crab fisheries for which the QS holder holds QS are closed, NMFS will exclude that crab fishing year when determining whether the individual has satisfied the participation requirement specified in this paragraph (m)(2). (3) An individual issued a CVC QS or CPC QS permit may include information demonstrating compliance with the participation requirements in paragraph (m)(2) of this section with the individual's annual Application for Crab IFQ. (4) If an individual issued a CVC QS or CPC QS permit fails to meet the participation requirements in paragraph (m)(2) of this section or fails to qualify for the exemption in paragraph (m)(5) of this section, NMFS will revoke all of the individual's CVC QS or CPC QS in accordance with § 680.43. (5) All of the CVC QS or CPC QS permits held by the individual were acquired using the eligibility criteria in § 680.41(c)(1)(vii)(B) or reissued under paragraph (m)(6) of this section, and the person has held those CVC QS or CPC QS permits for less than 4 crab fishing years. (6) For CVC QS or CPC QS revoked by NMFS under regulations paragraph (m)(2) of this section from July 1, 2019, through May 31, 2024, an individual may apply for reissuance of QS with the individual's annual crab IFQ permit application from May 31, 2024 through June 15, 2025. [70 FR 10241, Mar. 2, 2005, as amended at 70 FR 33395, June 8, 2005; 70 FR 75421, Dec. 20, 2005; 71 FR 32864, June 7, 2006; 73 FR 29983, May 23, 2008; 73 FR 30320, May 27, 2008; 73 FR 35088, June 20, 2008; 73 FR 76190, Dec. 15, 2008; 74 FR 51520, Oct. 7, 2009; 80 FR 15897, Mar. 26, 2015; 87 FR 42394, July 15, 2022; 89 FR 47877, June 4, 2024] § 680.41 Transfer of QS, PQS, IFQ and IPQ. (a) General. (2) A crab IFQ hired master permit issued by NMFS, as described in § 680.4, is not a transfer of crab QS or IFQ; and (3) The use of IFQ assigned to a crab harvesting cooperative and used within that cooperative is not a transfer of IFQ. (b) Transfer applications Application. (2) Notification of application approval or disapproval. (3) Reasons for disapproval. (i) Lack of U.S. citizenship, where U.S. citizenship is required; (ii) Failure to meet minimum requirements for sea time as a member of a harvesting crew; (iii) An incomplete application, including fees and an EDR, if required; (iv) An untimely application; or (v) Fines, civil penalties, or other payments due and owing, or outstanding permit sanctions resulting from Federal fishery violations. (4) QS, PQS, IFQ, or IPQ accounts. (i) QS, PQS, IFQ, or IPQ accounts affected by a transfer approved by the Regional Administrator will change on the date of approval. (ii) For non-electronic submittals, any necessary IFQ or IPQ permits will be sent with the notification of approval if the receiver of the IFQ or IPQ permit has completed an annual application for crab IFQ or IPQ permit for the current fishing year as required under § 680.4. (iii) For electronic submittals, the parties to the transfer would access and print approvals and permits online. (5) Submittal. Submit applications and other documents to NMFS as instructed on the application. Forms are available on the NMFS Alaska Region website at http://alaskafisheries.noaa.gov (c) Eligibility to receive QS, PQS, IFQ, or IPQ by transfer. (1) To be eligible to receive QS, PQS, IFQ, or IPQ by transfer, a person must first meet the requirements specified in the following table: Quota type Eligible person Eligibility requirements (i) PQS not issued under § 680.40(e)(3)(i) Any person None. (ii) IPQ Any person None. (iii) CVO or CPO QS (A) A person initially issued QS No other eligibility requirements. (B) An individual who is a U.S. citizen with at least 150 days of sea time as part of a harvesting crew in any U.S. commercial fishery. (C) A corporation, partnership, or other entity with at least one individual member who is a U.S. citizen and who: 1 2 (D) An ECCO that meets the eligibility requirements described under paragraph (j) of this section. (E) A CDQ group No other eligibility requirements. (iv) Converted CPO QS N/A Converted CPO QS may not be transferred. (v) CPO IFQ derived from Converted CPO QS N/A CPO IFQ derived from Converted CPO may not be transferred. (vi) CVO or CPO IFQ All eligible persons for CVO or CPO QS according to the requirements in paragraph (c)(1)(iii) of this section. (vii) CVC or CPC QS An individual (A) Who is a U.S. citizen with: (1) (2) (B) From May 1, 2015, until May 1, 2019, CVC or CPC QS also may be transferred to an individual who is a U.S. citizen with: (1) (2) (i) (ii) (viii) CVC or CPC IFQ All eligible individuals for CVC or CPC QS According to the requirements in paragraph (c)(1)(vii) of this section. (2) Application for eligibility to receive QS/IFQ and PQS/IPQ by transfer. http://www.fakr.noaa.gov/. (ii) Contents. (A) Type of QS, IFQ, PQS, or IPQ for which the applicant is seeking eligibility. Indicate type of QS, IFQ, PQS, IPQ for which applicant is seeking eligibility. ( 1 ( 2 ( 3 (B) Applicant information. 1 ( 2 (C) Eligibility for CVC or CPC QS/IFQ. (D) U.S. Corporations, partnerships, or business entities. 1 ( 2 (E) Commercial fishing experience. 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 ( 8 ( 9 ( 10 ( 11 ( 12 (F) Applicant certification. 1 ( 2 (G) Verification that the applicant applying for eligibility to receive crab QS/IFQ or PQS/IPQ by transfer has submitted an EDR, if required to do so under § 680.6; (H) A non-profit entity seeking approval to receive crab QS or IFQ by transfer on behalf of a ECC must first complete an Application to Become an ECCO under paragraph (j) of this section. (d) Transfer of CVO, CPO, CVC, CPC QS or PQS General. (2) CVO QS. (3) CPO QS. (i) Each unit of CPO QS shall yield 1 unit of CVO QS, and 0.9 units of PQS; and (ii) The CVO QS and PQS derived from the transfer of CPO QS may be transferred separately, except that these shares must receive the same regional designation. The regional designation shall be determined at the time of transfer by the person receiving the CVO QS. (4) CVC or CPC QS. (e) Transfer of IFQ or IPQ by Lease IFQ derived from CVO or CPO QS. (i) If the IFQ will be used on a vessel on which the QS holder has less than a 10 percent ownership interest; or (ii) If the IFQ will be used on a vessel on which the QS holder or the holder of a crab IFQ hired master permit, under § 680.4, is not present. (2) Ownership of a vessel, for the purposes of this section, means: (i) A sole proprietor; or (ii) A relationship between 2 or more entities in which one directly or indirectly owns a 10 percent or greater interest in a vessel. (3) IFQ derived from CVC QS or CPC QS. (4) IPQ derived from PQS. (f) Transfer of QS, PQS, IFQ or IPQ with restrictions. (1) The person who received the QS, PQS, IFQ or IPQ with restrictions meets the eligibility requirements of this section and the Regional Administrator approves an application for eligibility for that person; or (2) The Regional Administrator approves the application for transfer from the person who received the QS, PQS, IFQ or IPQ with restrictions to a person who meets the eligibility requirements of this section. (g) Survivorship transfer privileges. (2) A QS or PQS holder may provide the Regional Administrator with the name of the designated beneficiary from the QS or PQS holder's immediate family to receive survivorship transfer privileges in the event of the QS or PQS holders death and in the absence of a surviving spouse. (3) The Regional Administrator will approve, for 3 calendar years following the date of the death of an individual, an Application for transfer of crab QS/IFQ or PQS/IPQ from the surviving spouse or, in the absence of a surviving spouse, a beneficiary from the QS or PQS holder's immediate family designated pursuant to this section, to a person eligible to receive IFQ or IPQ under the provisions of this section, notwithstanding the limitations on transfers of IFQ and IPQ in this section and the use limitations under § 680.42. (h) Applications for transfer Application for transfer of crab IFQ. (2) Application for transfer of crab IPQ Completed application. (ii) Certification of transferor Non-electronic submittal. (B) Electronic submittal. (iii) Certification of transferee Non-electronic submittal. (B) Electronic submittal. (3) Application for transfer of crab QS or PQS. (i) Approval criteria for an Application for transfer of crab QS/IFQ or PQS/IPQ. (1) The person applying to receive the QS, PQS, IFQ or IPQ meets the requirements of eligibility in paragraph (c) of this section; (2) The person applying for transfer and the person applying to receive QS or IFQ/IPQ have their signatures on the application; (3) No fines, civil penalties, or other payments due and owing, or outstanding permit sanctions, resulting from Federal fishery violations involving either party exist; (4) The person applying to receive QS, PQS, IFQ or IPQ currently exists; (5) The transfer would not cause the person applying to receive the QS, PQS, IFQ or IPQ to exceed the use limits in § 680.42; (6) The person applying to make or receive the QS, PQS, IFQ or IPQ transfer has paid all IFQ or IPQ fees described under § 680.44; or has timely appealed the IAD of underpayment as described under § 680.44; (7) The person applying to make or receive the QS, PQS, IFQ or IPQ transfer has submitted an EDR, if required to do so under § 680.6; (8) In the case of an application for transfer of PQS or IPQ for use outside an ECC that has designated an entity to represent it in exercise of ROFR under paragraph (l) of this section: (i) The Regional Administrator will not act upon the application for a period of 10 days. At the end of that time period, the application will be approved pending meeting the criteria set forth in paragraph (i) of this section. (ii) The person applying to transfer PQS subject to ROFR must include an affidavit certifying that the ECC entity was provided with notice of the proposed transfer at least 90 days prior to the date of the transfer application and that the ECC entity did not exercise its ROFR during that period. (iii) The person applying to receive the PQS must include an affidavit certifying that a ROFR contract that includes the ROFR contract terms specified in Chapter 11 section 3.4.4.1.2 of the Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner Crabs has been completed with an ECC entity eligible to hold a ROFR under paragraph (l) of this section and that represents an ECC within the region for which the PQS is designated. (9) In the case of an application for transfer of PQS for use within an ECC that has designated an entity to represent it in exercise of ROFR under paragraph (l) of this section, the Regional Administrator will not approve the application unless the proposed recipient of the PQS and the ECC entity provide an affidavit to the Regional Administrator certifying that either the ECC wishes to permanently waive ROFR for the PQS or that a ROFR contract that includes the ROFR contract terms specified in Chapter 11 section 3.4.4.1.2 of the Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner Crabs has been completed by the proposed recipient of the PQS and the ECC entity. (10) Other pertinent information requested on the application for transfer has been supplied to the satisfaction of the Regional Administrator. (11) The person applying to receive the CVC QS or IFQ or CPC QS or IFQ by transfer has submitted proof of at least one delivery of a crab species in any CR crab fishery in the 365 days prior to submission to NMFS of the Application for transfer of crab QS/IFQ or PQS/IPQ, except if eligible under the eligibility requirements in paragraph (c)(1)(vii)(B) of this section. Proof of this landing is— (i) Signature of the applicant on an ADF&G fish ticket; or (ii) An affidavit from the vessel owner attesting to that person's participation as a member of a fish harvesting crew on board a vessel during a landing of a crab QS species within the 365 days prior to submission of an Application for transfer of crab QS/IFQ or PQS/IPQ. (j) Transfer of crab QS/IFQ to or from an ECCO Designation of an ECCO. (ii) If the non-profit entity is approved by NMFS to serve as the ECCO, then the appropriate governing body of the ECC must authorize the transfer of any QS from the ECCO. (iii) The appropriate governing body for purposes of designating a non-profit organization for the Application to Become an ECCO, or acknowledging the transfer of any QS from an ECCO in each ECC is as follows: (A) If the ECC is also a community eligible to participate in the Western Alaska CDQ Program, then the CDQ group is the appropriate governing body; (B) If the ECC is not a CDQ community and is incorporated as a municipality and is not within an incorporated borough, then the municipal government is the appropriate governing body; (C) If the ECC is not a CDQ community and is incorporated as a municipality and also within an incorporated borough, then the municipality and borough jointly serve as the appropriate governing body and both must agree to designate the same non-profit organization to serve as the ECCO or acknowledge the transfer of QS from the ECCO; and (D) If the ECC is not a CDQ community and is not incorporated as a municipality and is in a borough, then the borough in which the ECC is located is the appropriate governing body. (iv) The appropriate governing body in each ECC may designate only one non-profit organization to serve as the ECCO for that community at any one time. (2) Application to become an ECCO. http://www.fakr.noaa.gov/. (i) Contents of application Applicant identification. 1 ( 2 ( 3 (B) Required attachments to the application. 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 (C) Applicant certification. 1 ( 2 (ii) [Reserved] (k) Application for transfer of crab QS/IFQ to or from an ECCO. (2) An application for transfer of crab QS/IFQ to or from an ECCO will not be approved until the Regional Administrator has reviewed and approved the transfer agreement signed by the parties to the transaction. Persons who submit an application for transfer of crab QS/IFQ to or from an ECCO for approval will receive notification of the Regional Administrator's decision to approve or disapprove the application, and if applicable, the reason(s) for disapproval, by mail, unless another communication mode is requested on the application. (3) Contents. (i) General requirements. (B) The party to whom an ECCO is seeking to transfer the QS/IFQ must be eligible to receive QS/IFQ by transfer. (C) If the ECCO is applying to permanently transfer QS, a representative of the community on whose behalf the QS is held must sign the application. (D) If authorized representative represents either the transferor or transferee, proof of authorization to act on behalf of transferor or transferee must be attached to the application. (ii) Transferor information. (iii) Transferee information. (iv) Identification (A) QS species; (B) QS type; (C) Number of QS or IFQ units to be transferred; (D) Total QS units; (E) Number of IFQ pounds; (F) Range of serial numbers to be transferred (shown on QS certificate) numbered to and from; (G) Name of community to which QS are currently assigned; and (H) Indicate (YES or NO) whether remaining IFQ pounds for the current fishing year should be transferred; if NO, specify the number of pounds to be transferred. (v) Transfer of IFQ only. (B) Actual number of IFQ pounds to be transferred. (vi) Transferor Information, if an ECCO. (A) ECCO management and administration; (B) Fund additional QS purchase; (C) Participation by community residents; (D) Dissolution of ECCO; and (E) Other (specify). (vii) Price paid for QS, PQS, and/or IFQ, IPQ (Transferor). (A) Whether (YES or NO) a broker was used for this transaction; If YES, provide dollar amount paid in brokerage fees or percentage of total price; (B) Provide the total amount paid for the QS/IFQ in this transaction, including all fees; (C) Provide the price per unit of QS (price divided by QS units) and the price per pound (price divided by IFQ) of IFQ; and (D) Indicate all reasons that apply for transferring the QS/IFQ. (viii) Price paid for QS, PQS, and/or IFQ, IPQ (Transferee). (A) Indicate (YES or NO) whether QS/IFQ purchase will have a lien attached; if YES, provide the name of lien holder; (B) Indicate one primary source of financing for this transfer; (C) Indicate the sources used to locate the QS or IFQ being transferred; (D) Indicate the relationship, if any, between the transferor and the transferee; (E) Indicate (YES or NO) whether an agreement exists to return the QS or IFQ to the transferor or any other person, or with a condition placed on resale; If YES, explain; and (F) Attach a copy of the terms of agreement for the transfer, the bill of sale for QS, or lease agreement for IFQ. (ix) Certification information Certification of transferor. 1 ( 2 (B) Certification of transferee. 1 ( 2 (C) Certification of authorized representative of community. 1 ( 2 (4) Attachments to the application and other conditions to be met. (ii) A copy of the terms of agreement for the transfer, the bill of sale for QS or PQS, or lease agreement for IFQ or IPQ. (iii) An affirmation that the individual receiving IFQ from an ECCO has been a permanent resident in the ECC for a period of 12 months prior to the submission of the Application for Transfer QS/IFQ to or from an ECCO on whose behalf the ECCO holds QS. (5) Approval criteria for an application for transfer of crab QS/IFQ to or from an ECCO. (i) The ECCO applying to receive or transfer crab QS has submitted a complete annual report(s) required by § 680.5; (ii) The ECCO applying to transfer crab QS has provided information on the reasons for the transfer as described in paragraph (e) of this section; and (iii) An individual applying to receive IFQ from an ECCO is a permanent resident of the ECC in whose name the ECCO is holding QS. (l) Eligible crab community right of first refusal (ROFR) Applicability Exempt Fisheries. (ii) Eligible Crab Communities (ECCs). (2) Community representation CDQ Communities. (ii) Non-CDQ communities. Federal Register. (B) The ECC entity eligible to exercise the right of first refusal on behalf of an ECC will be identified by the governing body(s) of the ECC. If the ECC is incorporated under the laws of the State of Alaska, and not within an incorporated borough, then the municipality is the governing body; if the ECC is incorporated and within an incorporated borough, then the municipality and borough are the governing bodies and must agree to designate the same ECC entity; if the ECC is not incorporated and in an incorporated borough, then the borough is the governing body. (C) Each ECC may designate only one ECC entity to represent that community in the exercise of ROFR at any one time through a statement of support from the governing body of the ECC. That statement of support identifying the ECC entity must be submitted to the Regional Administrator, NMFS, Post Office Box 21668, Juneau, Alaska 99802, at least 30 days prior to the ending date of the initial application period for the crab QS program under § 680.40. (D) The ECC ROFR is not assignable by the ECC entity. (3) Restrictions on transfer of PQS or IPQ out of North Gulf of Alaska communities Applicability. (ii) Notification of PQS or IPQ transfer. [70 FR 10241, Mar. 2, 2005, as amended at 71 FR 32864, June 7, 2006; 73 FR 29983, May 23, 2008; 74 FR 51520, Oct. 7, 2009; 80 FR 15898, Mar. 26, 2015; 81 FR 1561, Jan. 13, 2016; 81 FR 24518, Apr. 26, 2016; 86 FR 70754, Dec. 13, 2021; 89 FR 47877, June 4, 2024] § 680.42 Limitations on use of QS, PQS, IFQ, and IPQ. (a) QS and IFQ use caps General. (i) A person who receives an initial allocation of QS that exceeds the use cap listed in paragraph (a)(2) of this section may not receive QS by transfer unless and until that person's holdings are reduced to an amount below the use cap. (ii) A person will not be issued QS in excess of the use cap established in this section based on QS derived from landings attributed to an LLP license obtained via transfer after June 10, 2002 unless; (A) The person applies to receive QS based on an LLP transferred after June 10, 2002 but prior to November 24, 2004, and (B) The person will receive the amount of QS associated with that transferred LLP in excess of the use cap established in this section for a crab QS fishery solely because of the adjustment to legal landings available for QS allocation resulting from the BSAI Crab Capacity Reduction Program. (iii) QS and IFQ use caps shall be based on the initial QS pools used to determine initial allocations of QS. (2) Except for non-individual persons who hold PQS, as provided for in paragraph (a)(1)(ii) of this section, or a CDQ group, as provided for in paragraph (a)(3) of this section, a person, individually or collectively, may not: (i) Hold QS in amounts in excess of the amounts specified in the following table, unless that person's QS was received in the initial allocation: Fishery CVO/CPO Use Cap in QS Units CVC/CPC Use Cap in QS Units (A) Percent of the initial QS pool for BBR 1.0% = 3,880,000 2.0% = 240,000 (B) Percent of the initial QS pool for BSS 1.0% = 9,700,000 2.0% = 600,000 (C) Percent of the initial QS pool for EBT 1.0% = 1,940,000 2.0% = 120,000 (D) Percent of the initial QS pool for WBT 1.0% = 1,940,000 2.0% = 120,000 (E) Percent of the initial QS pool for PIK 2.0% = 582,000 4.0% = 36,000 (F) Percent of the initial QS pool for SMB 2.0% = 582,000 4.0% = 36,000 (G) Percent of the initial QS pool for EAG 10.0% = 970,000 20.0% = 60,000 (H) Percent of the initial QS pool for WAG 10.0% = 3,880,000 20.0% = 240,000 (I) Percent of the initial QS pool for WAI 10.0% = 5,820,000 20.0% = 360,000 (ii) Use IFQ in excess of the amount of IFQ that results from the QS caps in paragraph (a)(2)(i) of this section, unless that IFQ results from QS that was received by that person in the initial allocation of QS for that crab QS fishery. (3) A CDQ Group, individually or collectively, may not: (i) Hold QS in excess of the amounts of QS specified in the following table: Fishery CDQ CVO/CPO Use Cap in QS Units (A) 5.0 percent of the initial QS pool for BBR 19,400,000 (B) 5.0 percent of the initial QS pool for BSS 48,500,000 (C) 5.0 percent of the initial QS pool for EBT 9,700,000 (D) 5.0 percent of the initial QS pool for WBT 9,700,000 (E) 10.0 percent of the initial QS pool for PIK 2,910,000 (F) 10.0 percent of the initial QS pool for SMB 2,910,000 (G) 20.0 percent of the initial QS pool for EAG 1,940,000 (H) 20.0 percent of the initial QS pool for WAG 7,760,000 (I) 20.0 percent of the initial QS pool for WAI 11,640,000 (ii) Use IFQ in excess of the amount of IFQ that results from the QS caps in paragraph (a)(3)(i) of this section, unless that IFQ results from QS that was received by that person in the initial allocation of QS for that crab QS fishery. (4) A person who is not an individual and who holds PQS may not: (i) Hold QS in excess of the amounts specified in the following table: Fishery CVO/CPO Use Cap in QS Units (A) 5.0 percent of the initial QS pool for BBR 19,400,000 (B) 5.0 percent of the initial QS pool for BSS 48,500,000 (C) 5.0 percent of the initial QS pool for EBT 9,700,000 (D) 5.0 percent of the initial QS pool for WBT 9,700,000 (E) 5.0 percent of the initial QS pool for PIK 1,455,000 (F) 5.0 percent of the initial QS pool for SMB 1,455,000 (G) 5.0 percent of the initial QS pool for EAG 485,000 (H) 5.0 percent of the initial QS pool for WAG 1,940,000 (I) 5.0 percent of the initial QS pool for WAI 2,910,000 (ii) Use IFQ in excess of the amount of IFQ that results from the QS caps in paragraph (a)(4)(i) of this section, unless that IFQ results from QS that was received by that person in the initial allocation of QS for that crab QS fishery. (iii) A non-individual person that holds PQS, and all affiliates of that person, is limited to a QS and IFQ use cap that is calculated based on the sum of all QS or IFQ held by that PQS holder and all QS or IFQ held by any affiliate of the PQS holder. (5) IFQ that is used by a crab harvesting cooperative is not subject to the use caps in this paragraph (a) except as provided for in paragraph (a)(7) of this section. (6) Non-individual persons holding QS will be required to provide, on an annual basis, a list of persons with an ownership interest in the non-individual QS holder. This list of owners shall be provided to the individual level and will include the percentage of ownership held by each individual. This annual submission of information must be submitted as part of the complete annual application for crab IFQ/IPQ permit. (7) In a calendar year, an entity as described in § 680.40(c)(5)(ii), (c)(5)(iii), or (c)(5)(iv), may not use more than 1,000,000 lb (453.6 mt) of IFQ derived from converted CPO QS in the BBR or BSS crab QS fisheries. (b) PQS and IPQ Use Caps. (i) Hold PQS in excess of 30 percent of the initial PQS pool in any crab QS fishery unless that person received an initial allocation of PQS in excess of this limit. A person will not be issued PQS in excess of the use caps established in this section based on PQS derived from the transfer of legal processing history after June 10, 2002. (ii) Use IPQ in excess of the amount of IPQ that results from the PQS caps in paragraph (b)(1)(i) of this section, unless that IPQ is: (A) Derived from PQS that was received by that person in the initial allocation of PQS for that crab QS fishery; or (B) Subject to an exemption for that IPQ pursuant to § 680.4(p); or (C) Used for custom processing at a facility that is: ( 1 ( 2 ( i ( ii ( iii (2) A person may not use IPQ in excess of 60 percent of the IPQ issued in the BSS crab QS fishery with a North region designation during a crab fishing year. Except that a person who: (i) Holds IPQ; and (ii) Has a 10 percent or greater direct or indirect ownership interest in the shoreside crab processor or stationary floating crab processor where that IPQ crab is processed will not be considered to use any IPQ in the BSS crab QS fishery with a North region designation if that IPQ is custom processed at a facility consistent with paragraph (b)(1)(ii)(C) of this section. (3) A non-individual entity holding PQS will be required to provide, on an annual basis, a list of persons with an ownership interest in the non-individual entity. This ownership list shall be provided to the individual level, will include the percentage of ownership held by each owner, and must be submitted annually with the complete application for a crab IFQ/IPQ permit. (4) A person will be considered to be a holder of PQS for purposes of applying the PQS use caps in this paragraph if that person: (i) Is the sole proprietor of an entity that holds PQS; or (ii) Is not a CDQ group and directly or indirectly owns a 10 percent or greater interest in an entity that holds PQS. (5) A person that is not a CDQ group and holds PQS is limited to a PQS use cap that is calculated based on the sum of all PQS held by that PQS holder and all PQS held by any affiliate of the PQS holder. A person that is not a CDQ group and holds IPQ is limited to an IPQ use cap that is calculated based on the sum of all IPQ held by that IPQ holder and all IPQ held by any affiliate of the IPQ holder. (6) A CDQ group that holds PQS is limited to a PQS use cap that is calculated based on the sum of all PQS held, individually or collectively, by that CDQ group. A CDQ group that holds IPQ is limited to an IPQ use cap that is calculated based on the sum of all IPQ held, individually or collectively, by that CDQ group. (7) Before July 1, 2007, IPQ for the BSS, BBR, PIK, SMB, and EAG crab QS fisheries may not be used to process crab derived from PQS based on activities in an ECC, except in the geographic boundaries established in paragraph (b)(7)(iv) of this section, except that, before July 1, 2007: (i) Ten percent of the IPQs that are issued for a crab QS fishery or an amount of IPQ that yields up to 500,000 raw crab pounds (226.7 mt) on an annual basis, whichever is less, may be leased for use in processing crab outside that ECC. The amount of IPQ that is issued on an annual basis for use in that ECC and the amount that may be leased outside that ECC will be established annually and will be divided on a pro rata basis among all PQS permit holders issued IPQ for use in that ECC for that year. (ii) IPQ in excess of the amounts specified in paragraph (c)(7)(i) of this section may be used outside the ECC for which that IPQ is designated if an unavoidable circumstance prevents crab processing within that ECC. For purposes of this section, an unavoidable circumstance exists if the specific intent to conduct processing for a crab QS species in that ECC was thwarted by a circumstance that was: (A) Unavoidable; (B) Unique to the IPQ permit holder, or to the processing facility used by the IPQ permit holder in that ECC; (C) Unforeseen and reasonably unforeseeable to the IPQ permit holder; (D) The circumstance that prevented the IPQ permit holder from processing crab in that ECC actually occurred; and (E) The IPQ permit holder took all reasonable steps to overcome the circumstance that prevented the IPQ permit holder from conducting processing for that crab QS fishery in that ECC. (iii) This provision does not exempt any IPQ permit holder from any regional designation that may apply to that IPQ. (iv) Geographic boundaries for use of IPQ outside ECCs for purposes of this paragraph (b)(7): (A) Akutan, False Pass, King Cove, or Port Moller: IPQ may not be used outside of the boundaries of the Aleutians East Borough as those boundaries are established by the State of Alaska; (B) Kodiak: IPQ may not be used outside of the boundaries of the Kodiak Island Borough as those boundaries are established by the State of Alaska; (C) Adak: IPQ may not be used outside of the boundaries of the City of Adak as those boundaries are established by the State of Alaska; (D) Unalaska/Dutch Harbor: IPQ may not be used outside of the boundaries of the City of Unalaska as those boundaries are established by the State of Alaska. (E) St. George: IPQ may not be used outside of the boundaries of the City of St. George as those boundaries are established by the State of Alaska. (F) St. Paul: IPQ may not be used outside of the boundaries of the City of St. Paul as those boundaries are established by the State of Alaska. (8) Any person harvesting crab under a Class A CVO or Class A CVC IFQ Permit, except as provided under paragraph (b)(7) of this section, must deliver that crab: (i) Only to RCRs with unused IPQ for the same crab QS fishery; and (ii) Only to an RCR in the region for which the QS and IFQ is designated. (9) Any person harvesting crab under a Class B IFQ, CPO IFQ, CVC IFQ, or CPC IFQ permit may deliver that crab to any RCR. (c) Vessel limitations. (i) 2.0 percent for BSS; (ii) 2.0 percent for BBR; (iii) 2.0 percent for EBT; (iv) 2.0 percent for WBT; (v) 4.0 percent for PIK; (vi) 4.0 percent for SMB; (vii) 20.0 percent for EAG; (viii) 20.0 percent for WAG; or (ix) 20.0 percent for the WAI crab QS fishery west of 179° W. long. (2) CVC or CPC IFQ used on a vessel will not be included in determining whether a vessel use cap is met. (3) A single person who receives an initial allocation of QS that results in IFQ that is in excess of the vessel use caps, in paragraph (c)(1) of this section, that person may catch and retain crab harvested with the resulting IFQ with a single vessel. However, this provision does not apply to IFQ resulting from QS derived from transfer of an LLP crab license that occurred after June 10, 2002. Two or more persons may not catch and retain their IFQ with one vessel in excess of these limitations. (4) A vessel use cap would not apply to a vessel if all of the CVO or CPO IFQ used on that vessel in a crab fishing year is held by a crab harvesting cooperative. This exemption is forfeited if that vessel is used to harvest any amount of CVO or CPO IFQ not held by a crab harvesting cooperative during the same crab fishing year. (5) A person holding a CVC or CPC IFQ permit is required to be aboard the vessel upon which their IFQ is being harvested. (6) A person holding CVO or CPO QS does not have to be aboard the vessel being used to harvest their IFQ if they hold at least a 10 percent ownership interest in the vessel upon which the IFQ is to be harvested and are represented on board the vessel by a crab IFQ hired master employed by that QS holder as authorized under § 680.4. (7) Ownership of a vessel means, for purposes of this section: (i) A sole proprietor; or (ii) A person that directly or indirectly owns a 10 percent or greater interest in an entity that owns a vessel. [70 FR 10241, Mar. 2, 2005, as amended at 70 FR 33395, June 8, 2005; 70 FR 75421, 75422, Dec. 20, 2005; 71 FR 32865, June 7, 2006; 73 FR 29983, May 23, 2008; 73 FR 35088, June 20, 2008; 74 FR 25457, May 28, 2009; 78 FR 28531, May 15, 2013; 81 FR 4212, Jan. 26, 2016; 81 FR 92702, Dec. 20, 2016; 82 FR 52014, Nov. 9, 2017; 89 FR 47877, June 4, 2024; 89 FR 53532, June 27, 2024] § 680.43 Revocation of CVC and CPC QS. (a) Beginning July 1, 2028, the Regional Administrator will revoke all CVC QS and CPC QS held by an individual who has not met the participation requirements set forth in § 680.40(m). The Regional Administrator will revoke an individual's CVC QS or CPC QS in accordance with the procedures set forth in this section. (b) Notice of C Share QS Inactivity. (c) Initial administrative determination (IAD). [80 FR 15899, Mar. 26, 2015, as amended at 87 FR 42394, July 15, 2022; 89 FR 47878, June 4, 2024] § 680.44 Cost recovery. (a) Cost recovery fees Responsibility. (i) Subsequent transfer of IFQ, IPQ, CDQ, or QS does not affect the permit holder's liability for noncompliance with this section. (ii) Non-renewal of an RCR permit does not affect the permit holder's liability for noncompliance with this section. (2) Fee liability determination. (ii) Fee liability must be calculated by multiplying the applicable fee percentage by the ex-vessel value of the CR crab received by the RCR at the time of receipt, except as provided by paragraph (b)(3) of this section. (iii) NMFS will provide a summary to all RCR permit holders during the last quarter of the crab fishing year. The summary will explain the fee liability determination including the current fee percentage, details of raw crab pounds debited from CR allocations by permit, port or port-group, species, date, and prices. (3) Fee collection. (ii) All RCRs who receive CR crab in a crab fishing year must maintain and submit records for any crab cost recovery fees collected under the corresponding RCR permit. (4) Payment Payment due date. (ii) Payment recipient. (iii) Payment address. http://alaskafisheries.noaa.gov. (iv) Payment method (B) On or after June 1, 2020, payment must be made electronically in U.S. dollars by automated clearing house, credit card, or electronic check drawn on a U.S. bank account. (b) Ex-vessel value determination and use General. (2) Shoreside ex-vessel value. (3) Catcher/processor ex-vessel value General. (ii) CP standard prices. (iii) Effective period. (iv) Determination. (A) Landed pounds by CR crab, port-group, and month; (B) Total shoreside ex-vessel value by CR crab, port-group, and month; and (C) Price adjustments, including retroactive payments. (4) Fee liability calculation. (c) Crab fee percentage Established percentage. Federal Register (i) The calculated crab fee percentage will be divided equally between the harvesting and processing sectors. (ii) Catcher/Processors must pay the full crab fee percentage determined by the fee percentage calculation for all CR crab debited from a CR allocation. (2) Calculating fee percentage value. (i) Factors. (A) The catch to which the crab cost recovery fee will apply; (B) The ex-vessel value of that catch; and (C) The costs directly related to the management and enforcement of the Crab Rationalization Program. (ii) Methodology. Harvesting and Processing Sectors: [100 (DPC/ V)] 0.5 Catcher/Processors: 100 (DPC /V) where: “DPC” is the direct program costs for the Crab Rationalization Program for the previous fiscal year, and “V” is the ex-vessel value of the catch subject to the crab cost recovery fee liability for the current year. (3) Publication General. (ii) Effective period. (4) Applicable percentage. (d) Underpayment of fee liability. (2) If an RCR fails to submit full payment for crab cost recovery fee liability by the date described in paragraph (a)(4) of this section, the Regional Administrator may: (i) At any time thereafter send an IAD to the RCR permit holder stating that the RCR permit holder's estimated fee liability, as indicated by his or her own submitted information, is the crab cost recovery fee liability due from the RCR permit holder. (ii) Disapprove any transfer of IFQ, IPQ, QS, or PQS to or from the RCR permit holder in accordance with § 680.41. (3) If an RCR fails to submit full payment by the application deadline described at § 680.4, no IFQ or IPQ permit will be issued to that RCR for that crab fishing year. (4) Upon final agency action determining that an RCR permit holder has not paid his or her crab cost recovery fee liability, the Regional Administrator may continue to withhold issuance of any new IFQ, IPQ, or RCR permit for any subsequent crab fishing years. If payment is not received by the 30th day after the final agency action, the matter will be referred to the appropriate authorities for purposes of collection. (e) Over payment. (f) Appeals and requests for reconsideration. (g) Fee submission form. [70 FR 10241, Mar. 2, 2005, as amended at 71 FR 44232, Aug. 4, 2006; 73 FR 76190, Dec. 15, 2008; 74 FR 51520, Oct. 7, 2009; 81 FR 23649, Apr. 22, 2016] Table 1 to Part 680—Crab Rationalization (CR) Fisheries Fishery Code CR Fishery Geographic Area BBR Bristol Bay red king crab ( Paralithodes camtshaticus In waters of the EEZ with: A northern boundary A southern boundary A western boundary BSS Bering Sea Snow crab ( Chionoecetes opilio In waters of the EEZ with: A northern and western boundary A southern boundary EAG Eastern Aleutian Islands golden king crab ( Lithodes aequispinus In waters of the EEZ with: An eastern boundary A western boundary A northern boundary EBT Eastern Bering Sea Tanner crab ( Chionoecetes bairdi In waters of the EEZ with: A western boundary A northern boundary A southern boundary PIK Pribilof red king and blue king crab ( Paralithodes camtshaticus P. platypus In waters of the EEZ with: A northern boundary An eastern boundary A southern boundary SMB St. Matthew blue king crab ( Paralithodes platypus In waters of the EEZ with: A northern boundary A southern boundary A western boundary WAG Western Aleutian Islands golden king crab ( Lithodes aequispinus In waters of the EEZ with: An eastern boundary A western boundary A northern boundary WAI Western Aleutian Islands red king crab ( Paralithodes camtshaticus In waters of the EEZ with: An eastern boundary A western boundary A northern boundary WBT Western Bering Sea Tanner crab ( Chionoecetes bairdi In waters of the EEZ with: An eastern boundary A northern and western boundary A southern boundary [71 FR 32866, June 7, 2006] Table 3 a [The condition of the fish or shellfish at the point it is weighed and recorded on the ADF&G fish ticket] Code Description 01 Whole crab, live. 79 Deadloss. Table 3 b Code Description 80 Sections. 95 Personal use—not sold. 97 Other retained product (specify condition). Table 7 to Part 680—Initial Issuance of Crab QS by Crab QS Fishery Column A: Column B: Column C: Column D: Column E: For each crab QS fishery the Regional Administrator shall calculate (see § 680.40(c)(2): QS for any qualified person based on that person's total legal landings of crab in each of the crab QS fisheries for any: In addition, each person receiving CVC and CPC QS must have made at least one landing per year, as recorded on a State of Alaska fish ticket, in any three years during the base period described below: In addition, each person receiving CVC or CPC QS, must have made at least one landing, as recorded on a State of Alaska fish ticket, in at least 2 of the last 3 fishing seasons in each of the crab QS fisheries as those seasons are described below: The maximum number of qualifying years that can be used to calculate QS for each QS fishery is: 1. Bristol Bay red king crab (BBR) 4 years of the 5-year QS base period beginning on: 3 years of the 5-year QS base period beginning on: (1) October 15-20, 1999. 4 years 2. Bering Sea snow crab (BSS) 4 years of the 5-year period beginning on: 3 years of the 5-year period beginning on: (1) April 1-8, 2000. 4 years 3. Eastern Aleutian Islands golden king crab (EAG) 5 years of the 5-year base period beginning on: 3 years of the 5-year base period beginning on: (1) September 1 1999 through October 25, 1999. 5 years 4. Eastern Bering Sea Tanner crab (EBT) 4 of the 6 seasons beginning on: 3 of the 6 seasons beginning on: In any 2 of the last 3 seasons prior to June 10, 2002 in the Eastern Aleutian Island golden (brown) king crab, Western Aleutian Island golden (brown) king crab, Bering Sea snow crab, or Bristol Bay red king crab fisheries. 4 years 5. Pribilof red king and blue king crab (PIK) 4 years of the 5-year period beginning on: 3 years of the 5-year period beginning on: In any 2 of the last 3 seasons prior to June 10, 2002 in the Eastern Aleutian Island golden (brown) king crab, Western Aleutian Island golden (brown) king crab, Bering Sea snow crab, or Bristol Bay red king crab fisheries, except that persons applying for an allocation to receive QS based on legal landings made aboard a vessel less than 60 feet (18.3 m) LOA at the time of harvest are exempt from this requirement. 4 years 6. St. Matthew blue king crab (SMB) 4 years of the 5-year period beginning on: 3 years of the 5-year period beginning on: In any 2 of the last 3 seasons prior to June 10, 2002 in the Eastern Aleutian Island golden (brown) king crab, Western Aleutian Island golden (brown) king crab, Bering Sea snow crab, or Bristol Bay red king crab fisheries. 4 years 7. Western Aleutian Islands brown king crab (WAG) 5 of the 5 seasons beginning on: 3 of the 5 seasons beginning on: (1) September 1, 1999 through August 14, 2000. 5 years 8. Western Aleutian Islands red king crab (WAI) 3 of the 4 seasons beginning on: 3 of the 4 seasons beginning on: In any 2 of the last 3 seasons prior to June 10, 2002 in the Eastern Aleutian Island golden (brown) king crab, Western Aleutian Island golden (brown) king crab, Bering Sea snow crab, or Bristol Bay red king crab fisheries. 3 years 9. Western Bering Sea Tanner crab (WBT) 4 of the 6 seasons beginning on: 3 of the 6 seasons beginning on: In any 2 of the last 3 seasons prior to June 10, 2002 in the Eastern Aleutian Island golden (brown) king crab, Western Aleutian Island golden (brown) king crab, Bering Sea snow crab, or Bristol Bay red king crab fisheries. 4 years [71 FR 32867, June 7, 2006] Table 8 to Part 680—Initial QS and PQS Pool for Each Crab QS Fishery Crab QS Fishery Initial QS Pool Initial PQS Pool BBR Bristol Bay red king crab 400,000,000 400,000,000 BSS Bering Sea snow crab ( C. opilio 1,000,000,000 1,000,000,000 EAG Eastern Aleutian Islands golden king crab 10,000,000 10,000,000 EBT Eastern Bering Sea Tanner crab ( C. bairdi 200,000,000 200,000,000 PIK Pribilof Islands red and blue king crab 30,000,000 30,000,000 SMB St. Matthew blue king crab 30,000,000 30,000,000 WAG Western Aleutian Islands golden king crab 40,000,000 40,000,000 WAI Western Aleutian Islands red king crab 60,000,000 60,000,000 WBT Western Bering Sea Tanner crab ( C. bairdi 200,000,000 200,000,000 Table 9 to Part 680—Initial Issuance of Crab PQS by Crab QS Fishery Column A: Column B: Bristol Bay red king crab (BBR) 3 years of the 3-year QS base period beginning on: Bering Sea snow crab (BSS) 3 years of the 3-year period beginning on: Eastern Aleutian Island golden king crab (EAG) 4 years of the 4-year base period beginning on: Eastern Bering Sea Tanner crab (EBT) Equivalent to 50 percent of the total legally processed crab in the Bering Sea snow crab fishery during the qualifying years established for that fishery, and 50 percent of the total legally processed crab in the Bristol Bay red king crab fishery during the qualifying years established for that fishery. Pribilof Islands red and blue king crab (PIK) 3 years of the 3-year period beginning on: St. Matthew blue king crab (SMB) 3 years of the 3-year period beginning on: Western Aleutian Island golden king crab (WAG) 4 years of the 4-year base period beginning on: Western Aleutian Islands red king crab (WAI) Equivalent to the total legally processed crab in the Western Aleutian Islands golden (brown) king crab fishery during the qualifying years established for that fishery. Western Bering Sea Tanner crab (WBT) Equivalent to 50 percent of the total legally processed crab in the Bering Sea snow crab fishery during the qualifying years established for that fishery, and 50 percent of the total legally processed crab in the Bristol Bay red king crab fishery during the qualifying years established for that fishery. [71 FR 32867, June 7, 2006] Table 10 to Part 680—License Limitation Program License Numbers That Authorize the Owners and Operators of Catcher/Processors to Directed Fish for Pacific Cod With Hook-and-Line Gear in the Central Gulf of Alaska Regulatory Area (Column A) and in the Western Gulf of Alaska Regulatory Area (Column B) Column A: Column B: LLG1125 LLG1400. LLG1128 LLG1401. LLG1400 LLG1576. LLG1576 LLG1578. LLG1713 LLG1785. LLG1785 LLG1916. LLG1916 LLG1917. LLG1917 LLG2026. LLG1989 LLG2081. LLG2081 LLG2112. LLG2112 LLG2892. LLG2238 LLG2935. LLG2705 LLG3090. LLG2783 LLG3602. LLG2892 LLG3617. LLG2958 LLG3676. LLG3609 LLG4004. LLG3616 LLG4823. LLG3617. LLG3676. LLG3681. LLG3973. LLG4823. [80 FR 28545, May 19, 2015]

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