(1) Following the precedent in the RAM data bases,
appeals and revokes of QS occurring after the initial distribution have been treated as
parts of the initial allocation. (2) The "CDQ
compensation QS" swapping rules will be described later in this report. (3) There are two exceptions to the rule which will
be explained later in the report. IFQ from swappable CDQ compensation QS can be
fished from any catcher vessel category and can be permanently "swapped" to another
catcher vessel category upon the first transfer. See CFR 679.41(i). Catcher vessel IFQ can be fished from a
freezer vessel as long as the length of the freezer vessel is within the bounds of the length category of the
catcher vessel and as long as there is no frozen or processed product on board when the catcher vessel IFQ is
used. See CFR 679.42(i)(2). (4) Because of the method
used to determine each person's QS (described below) it takes multiple QS to produce a
single pound of IFQ. In 1995, the QS needed to get one pound of IFQ ranged from
about 4.998 in Area 4B to about 14.712 in Area 3B. (5) An exception to this rule could occur in an
unusual case where the amount of QS in the block exceeds an ownership constraint. See
50 CFR 679.41(e)(1). (6) A separate CFEC
report looks at what happened to persons who fished in the years 1991-1994, but did not
fish during the qualifying years. (7) See 50 CFR
679.40 (3) and 50 CFR 679.40(4). (8) See 50
CFR 679.40(a). The 20,000 pounds is actually a hypothetical IFQ based on 1994 TACs
and the amount of QS outstanding on October 17, 1994. The QS equivalent calculated
for this blocking limit will be worth different amounts of IFQ from year-to-year as TACs and the QS
outstanding change. (9) The CDQ regulations
are contained in 50 CFR 679.30 and 50 CFR 679.31(b) and(c). The provisions for CDQ
compensation are contained in 50 CFR 679.41(j). (10)
See 50 CFR 679.41(i). (11)
See 50 CFR 679.41(e)(2). The amount that can be swept up is actually a QS equivalent
of 1,000 pounds of IFQ based on 1994 TACs and the amount of QS outstanding on
October 17,1994. The NPFMC has recently adopted a change in this rule that, if approved by the
Secretary of Commerce, would increase the sweep-up threshold from 1,000 to 3,000 pounds in 1997. (12) See 50 CFR 679.41(g). (13) See 50 CFR 679.42(g). (14) See 50 CFR 679.42(f) and (g). At its June, 1996, meeting
the NPFMC approved a regulatory amendment to increase the halibut QS cap from a half percent to one and a
half percent for Areas 4A to 4E. See page 4 of the NPFMC "Newsletter" dated June 20 1996. (15) When this study was planned, it was
thought that there would be data on addresses at initial allocation and address changes as
the entity moved. However, NMFS-RAM is only maintaining data on current addresses on
their computer files. As a result, the address assignment for each entity at both initial issuance and at year-end
1995 is the address of the entity on the NMFS-RAM demographic file as of January 3, 1996. (16) In the tables, percentages have been
rounded to the nearest percent. Thus some small changes have been rounded to zero
percent. (17) Note that the percentages of
an IFQ area's QS held by persons from the different resident categories do not always
sum exactly to 100%. This is due to rounding. (18)
Langdon, S., Transfer Patterns In Alaskan Limited Fisheries, January 17, 1980
and Iverson, K. and Dinneford, E., Changes In The Distribution Of Alaska's Limited Entry
Permits 1975-1994, June 1995. (19) There are no
urban communities local to Areas 3B, 4C, and 4D, thus the numbers of urban local QS
holders are necessarily zero. Area 4E does have an urban community (Nome), but there
were no initial issuees from it. (20) The
rule identifying which QS are to be issued as blocks is at 50 CFR 679.40(a), the rule on
the transfer of blocks is at 50 CFR 679.41(e), and the rule on limitations on block
holdings is at 50 CFR 679.42(g) (21) The
leasing rule is at 50 CFR 679.41(h). A rule change has been proposed to allow QS
holders to lease IFQs as well as QS. This may solve the problem created by the
interaction of the QS leasing restriction with the blocking rules if it is adopted. This rule is described
in the Federal Register for April 24, 1996. 61(80):18118. (22)
CDQ compensation QS "swaps" occur among catcher vessel classes within an area. Swaps are
usually accompanied by a transfer transaction. This is explored further in Section 4.2. Swaps among catcher
vessel classes within an area do not change the amount of QS within an area. (23) Again, these rules are explained more fully in Section 4.2.
See 50 CFR 679.41(i) and (j). There appear to be some errors in the RAM data. (24) This "roll-in" occurred at initial allocation. The authors
estimated the unswappable CDQ compensation QS. (25) The
"after 1995 swap" classification was used by the authors in these tables to avoid the confusion caused by QS
moving among catcher vessel categories. Swaps across vessel categories are explored elsewhere in this
report. (26) See 50 CFR 679.42(f). (27) See 50 CFR 679.42(g). (28) See 50 CFR 679.42(h). (29) See 50 CFR 679.41(e) and 50 CFR 679.42(j). (30) See 50 CFR 679.41(f). (31) See 50 CFR 679.42(j)(1), (2), and (3).