(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)
The percentage of sablefish QS that is in blocks is shown elsewhere in this report. It is
generally smaller than the percentage of halibut QS that is blocked. (4) See CFR 679.42 (j). (5) See 50 CFR 679.42(i)(1), 50 CFR
679.42(i)(2) and 50 CFR 679.42 (j). (6)
In September, 1997 the Council adopted a revised rule requiring a 20% ownership interest in
a vessel for QS holders wishing to hire a skipper. Some "grandfathered" privileges are
apparently included in the new rule that will allow some current QS holders to continue to
use a hired skipper on a vessel in which they have a smaller ownership interest. (See the
Council's 10/8/97 newsletter) (7) it is
possible that such arrangements may have occurred, transfers with agreements for
repossession by the original owner are prohibited under 50 CFR 679.41(g)(4). (8) See 50 CFR 679.41 (h)(2). (9) The Bering Sea and Aleutians Island areas
are CDQ areas for sablefish. The relatively high lease rates in these sablefish CDQ areas
contrast sharply with the paucity of leasing in the halibut CDQ areas. (10) 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. (11) A discussion with NMFS-RAM
personnel suggests that most 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.