(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. 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 679.41 (i) and
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
5.277 in the Southeast regulatory area to 11.615 in the Bering Sea regulatory area. (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) Except for
CDQ compensation swaps. (7) 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. (8)
See 50 CFR 679.40 (a) (3) and 50 CFR 679.40 (a)(4). (9) 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 sablefish 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. (10) 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). The sablefish CDQ reserve is set at
20% Of the fixed gear allocation of sablefish in each Bering Sea-Aleutian Island subarea
(See 50 CFR 679.31 (c)). (11) See 50
CFR 679.41(i). (12) See 50 CFR
679.41(e)(2). The amount that can be swept up is actually a QS equivalent of 3,000
pounds of IFQ based on 1994 sablefish 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 3,000 to 5,000 pounds in 1997. (13) See 50 CFR 679.41(g). (14) See 50 CFR 679.42(g). (15) See 50 CFR 679.42(f) and (g). (16) 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. (17) In
the tables, percentages have been rounded to the nearest percent. Thus some small
changes have been rounded to zero percent. (18)
Recall that the QS is not comparable across areas with respect to its 1995
IFQ value. (19) 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. (20)
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. (21) 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) (22) 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. (23)
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. (24) 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. (25) This "roll-in" occurred at initial allocation. The authors
estimated the unswappable CDQ compensation QS. (26) 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. (27) See 50 CFR 679.42(e). (28) See 50 CFR 679.42(h)(2) and (3). (29) See 50 CFR 679.42(g). (30) 50 CFR 679.41(g) and 50 CFR 679.42(j). (31) 50 CFR 679.41(f). (32) 50 CFR 679.42(j)(1), (2), (3), and (4).