(1) See 50 CFR 679.41(h) for catcher
vessel leasing rules. There is no corresponding rule on freezer vessel QS leases. (2) This discussion is adapted from FR
58(215):59392. November 9, 1993. (3)
See 50 CFR 679.42(j). (4) See 50 CFR
679.42(i)(1) and 50 CFR 679.42(i)(2). (5)
the September 1997 Council meeting in Seattle, revised regulations were adopted requiring a
20% interest in a vessel for QS holders wishing to hire a skipper. Some "grandfathered"
privileges to continue to use a hired skippers for initial QS recipients with smaller ownership
interests are apparently included in the amendment package. See the NPFMC's 10/8/97
newsletter. (6) While it is possible that
such arrangements have occurred, transfers with agreements for repossession by the original
owner are prohibited under 50 CFR 679.41(g)(4). (7)
See 50 CFR 679.41 (h)(2). (8)
of the TAC in CDQ areas are devoted to CDQs. In Area 4E, the entire TAC
was devoted to CDQs during 1995 and 1996 and there was no IFQ fishery; therefore, there
was no reason to lease QS in Area 4E. (9)
Note that different formulations of a "QS holder lessor rate" could be made. The number of
persons who hold QS can change during the year. During 1995 and 1996 there was a decline
in the number of QS holders due to transfer and consolidation of QS holdings. QS holder
lease rates calculated with the number of year-end QS holders in the denominator will thus be
higher than lease rates calculated with the number of year-beginning QS holders in the
denominator. (10) discussion with
NMFS-RAM personnel suggests that almost all lease transactions have monetary
considerations. However, in many cases the lease contract is a "share" contract or percentage
contract. In such cases, persons coding the transfer document have no way to calculate the
exact amount of the lease or the rental price per pound of IFQ. Thus in the computer file the
fields are left blank or "unpriced" even though the lessor will receive compensation.