CHANGES UNDER ALASKA'S HALIBUT IFQ PROGRAM, 1995 TO 1998

This is the final report of the Alaska Department of Fish and Game - Commercial Fisheries Entry Commission pursuant to National Oceanic and Atmospheric Administration Award No. NA87FN0320 covering the halibut IFQ program from 1995 through 1998. The executive summary is contained in a separate document. The final report for the sablefish fishery is contained in a separate document.

This project is partially funded by National Oceanic and Atmospheric Administration (NOAA) Cooperative Agreement Award No. NA87FN0320. Information about the award can be obtained from: Peter Jones Federal Program Officer, Alaska Region National Marine Fisheries Service P.O. Box 21668 Juneau, AK 99802-1668

List of Preparers:

Elaine Dinneford

Kurt Iverson

Ben Muse

Kurt Schelle

Organization:

Alaska Department of Fish and Game

Commercial Fisheries Entry Commission

This study uses NMFS-RAM administrative data and other ancillary data to analyze the first four years of the halibut individual fishing quota (IFQ) program in Alaska. The topics covered in the report include basic data on the extent of consolidation of quota share (QS) holdings, the volume of permanent QS transfers; QS prices; the volume of seasonal QS lease transfers, and IFQ lease prices. The report highlights the importance of several special features of the IFQ program and provides an extensive overview of changes in the geographic distribution of QS holdings. The report includes summary data on permanent transfers including the amount of QS transferred as sales, gifts, and trades; the relationships between the transferors and transfer recipients; and the finance methods used in sales transfers. The report investigates changes in the distribution of QS by person-type, changes in the distribution of QS between initial QS recipients and new entrants, and changes in halibut harvest and delivery patterns. The report also provides information on the consolidation of IFQ permit holders onto single vessel operations and on the underharvest of IFQ during the 1995 to 1998 fishing seasons.

Table of Contents

Chapters in the report are available as PDF files (portable document format). You can read and/or print them using Adobe Acrobat. Click here for information on downloading free Adobe Acrobat reader software.

1 Introduction

(PDF file, 173K)

1.1 The Purpose of This Study

1.2 The Halibut Fishery

1.3 Background on the Halibut IFQ Program

2 Overview of This Report

(PDF file, 27K)

2.1 Topics in the Report

2.2 Overview of Chapters 3 through 16

3 Consolidation of QS Holdings

(PDF file, 59K)

3.1 Introduction

3.2 QS Consolidation by Vessel Category

3.3 QS Consolidation by Size of QS Holding

4 QS Transfers and QS Prices

(PDF file, 94K)

4.1 Transfer Rates by Area

4.2 Transfer Rates by Area and Vessel Category

4.3 QS Sales Prices

4.4 Estimated QS Prices

5 Halibut QS Leases

(PDF file, 105K)

5.1 Halibut QS and QS Holder Lease Rates by IFQ Area

5.2 Halibut QS and QS Holder Transfer and Lease Rates by Area and Vessel Category, 1995-1998

5.3 Lessors, Lessees, Leases, and Lease Rates

5.4 QS Lease Prices

6 Types of Transfers, Financing of Transfers, Relationships Between Transferors and Transfer Recipients, and Use of Brokers

(PDF file, 87K)

6.1 Sales, Gifts, Trades, and Other Transfers

6.2 Finance Source on Priced Sales Transfers

6.3 Relationship of Buyer and Seller on Permanent Transfers

6.4 Use of Broker Services in Permanent QS Transfers

6.5 Use of Broker Services in Lease Transfers

7 Distribution of QS by Blocking Factor, CDQ Compensation QS, CDQ Compensation QS "Swaps"

(PDF file, 48K)

7.1 Introduction

7.2 QS Blocks, CDQ Compensation QS, and Swappable CDQ Compensation QS

8 "Sweep-ups" of Small QS Blocks

(PDF file, 20K)

8.1 Changes in Sweepable QS Blocks

8.2 Sweep-up Transactions

8.3 Sweepable QS Relative to Total QS

8.4 Summary

9 Changes in QS Holdings by Type of Person(PDF file, 62K)

10 Changes in the Distribution of Halibut QS by State(PDF file, 19K)

11 Changes by Management Area, Rural-Urban, and Local-Nonlocal

(PDF file, 99K)

11.1 Initial and Year-end 1998 QS Holdings, by Resident Type

11.2 Net Result of QS Transfers, Migrations, and Revocations

11.3 Details of Halibut QS Transfers: To and From Each Resident Category

11.4 Intra-cohort and Cross-cohort Transfers

12 Changes in the Distribution of Halibut QS by Census Area(PDF file, 51K)

13 New Entrants in the Fishery(PDF file, 24K)

14 Changes in Harvest and Delivery Patterns(PDF file, 73K)

14.1 Deliveries by State, Census Area, Annual Quarter, and Residency

14.2 Harvests by QS Owners and Hired Skippers

15 Overharvest and Underharvest of IFQs and TACs

(PDF file, 56K)

15.1 TACs and Harvests: 1990 to 1998

15.2 Total Available IFQs and Actual Harvest by Vessel Category

15.3 Unchanged QS and Unharvested IFQ, 1995 to 1998

16 Consolidation of Permit Holders on Fishing Operations(PDF file, 29K)

Appendix I Local/Nonlocal and Rural/Urban Designations(PDF file, 6K)

Appendix II QS Transfer Application Forms

List of Tables

1 Introduction(PDF file, 173K)

Table 1-1 Quota Share Pools and IFQ TACs by Halibut Management Area, 1995-1998

3 Consolidation of QS Holdings(PDF file, 59K)

Table 3-1a. Initial Issuance and Year-end 1998 QS and QS Holders by Management Area

Table 3-1b. Consolidation of Halibut QS Holdings From Initial Issuance Through Year-end 1998, by Mangement Area

Table 3-2a. Initial Allocation and Year-end 1998 QS by Management Area and Vessel Category

Table 3-2b. Initial Allocation and Year-end 1998 QS Holders by Management Area and Vessel Category

Table 3-3a. Initial Allocation and Year-end 1998 QS by Management Area and Size of QS Holding

Table 3-3b. Initial Allocation and Year-end 1998 QS Holders by Management Area and Size of QS Holding

4 QS Transfers and QS Prices(PDF file, 94K)

Table 4-1. Halibut QS Transfer Rates by Area and Year

Table 4-2. Halibut QS Transfer Rates by Area, Vessel Class, and Year

Table 4-3. Annual Prices for Halibut QS and IFQ Transfers by Area and Year

Table 4-4. Annual Prices for Halibut QS and IFQ Transfers by Area, Vessel Class, and Year

Table 4-5. Annual Prices for Halibut QS-Only Transfers by Area and Year

Table 4-6. Annual Prices for Halibut QS-Only Transfers by Area, Vessel Class, and Year

Table 4-7. Estimated Prices Per Unit of Halibut QS, Expressed in Dollars Per Pound of IFQ

5 Halibut QS Leases(PDF file, 105K)

Table 5-1. Halibut QS and QS Holder Lease Rates by Area, 1995-1998

Table 5-2a. Halibut QS Transfer and Lease Rates, 1995-1998 by Area, Year, and Vessel Category

Table 5-2b. Transfer and Lease Rates of Halibut QS Holders, 1995-1998 by Area, Year, and Vessel Category

Table 5-3. Leases of QS, by Area and Vessel Category, 1995-1998

Table 5-4. Priced and Unpriced Halibut QS Leases by Area and Vessel Category, 1995-1998

Table 5-5. Average Prices For Halibut "Priced" QS Leases by Area and Vessel Category, 1995-1998

6 Types of Transfers, Financing of Transfers, Relationships Between Transferors and Transfer Recipients, and Use of Brokers(PDF file, 87K)

Table 6-1a. Halibut QS Transfer Activity by Area, Year, and Nature of the Transfer

Table 6-1b. Numbers of Halibut QS Transfers by Area, Year, and Nature of the Transfer

Table 6-2a. QS Financed for Priced QS Sales, by Area, Year and Finance Method, 1995-1998

Table 6-2b. QS Transactions for Priced QS Sales, by Area, Year, and Finance Method, 1995-1998

Table 6-3a. QS Transferred by Area, Year, and Relationship of Transfer Parties, 1995-1998

Table 6-3b. QS Transfer Transactions by Area, Year, Relationship of Transfer Parties, 1995-1998

Table 6-4a. Use of Brokers In Halibut QS Transfers, by Year

Table 6-4b. Use of Brokers In Halibut QS Transfers, by Area and Year

Table 6-4c. Use of Brokers In Halibut QS Transfers, by Vessel Category and Year

Table 6-5a. Use of Brokers in Halibut QS Leases, by Year

Table 6-5b. Use of Brokers in Halibut QS Leases, by Area and Year

7 Distribution of QS by Blocking Factor, CDQ Compensation QS, CDQ Compensation "Swaps"(PDF file, 48K)

Table 7-1a. Halibut Initial Allocation and Year-end 1998 QS by Area, Block, and CDQ Status

Table 7-1b. Halibut QS Holders: Initial Allocation and Year-end 1998 QS Holders by Area, Block, and CDQ Status

Table 7-2. Net Changes in Swappable QS and Number of Persons Holding Swappable QS, From Initial Issuance Through 1998, by Area

Table 7-3. Swappable Halibut QS: Net Changes From Initial Allocation to Year-end 1998, by Area and Vessel Category

Table 7-4. Swappable Halibut CDQ QS: Swaps From/To Vessel Categories, by Area

Table 7-5. Initial and Year-end 1998 Halibut QS: Net QS Changes in Vessel Categories Due to Swaps, Revocations, Appeals, and Other Factors

8 "Sweep-ups" of Small QS Blocks(PDF file, 20K)

Table 8-1. Persons Holding Sweepable Halibut QS Blocks, Number of Sweepable Blocks, and Total Sweepable QS Holdings at Initial Issue and Year-end 1998

Table 8-2. Number of Transferors and Recipients of Sweep-up Transactions, With Mean QS of Sweep-ups, by Area

Table 8-3. 1998 Year-end Total Halibut QS, Blocked QS, and Sweepable Blocked QS by Area

9 Changes in QS Holdings by Type of Person(PDF file, 62K)

Table 9-1. Halibut QS by Area and Type of Holder

Table 9-2. Halibut QS Holders by Area and Type of Holder

Table 9-3. Halibut QS by Type of Holder, Vessel Category, and Area

Table 9-4. Halibut QS Holders by Type of Holder, Vessel Category, and Area

10 Changes in the Distribution of Halibut QS by State(PDF file, 19K)

Table 10-1. Initial Allocation and Year-end 1998 QS Holdings by Area and State

Table 10-2. Initial Allocation and Year-end 1998 QS Holders by Area and State

11 Changes by Management Area, Rural-Urban, Local-Nonlocal(PDF file, 99K)

Table 11-1a. Initial Allocation and Year-end 1998 QS Holdings by Management Area and Resident Type

Table 11-1b. Initial Allocation and Year-end 1998 QS Holders by Area and Resident Type

Table 11-2. Net Result of Halibut QS Transfers, Migrations, and Revocations From Initial Issuance Through Year-end 1998, by Management Area and Resident Type

Table 11-3a. Halibut QS Transfers From Initial Issuance Through Year-end 1998: The Number of Transfers and the Amount of QS Transferred To and From Each Resident Type, by Management Area

Table 11-3b. Halibut QS Transfers From Initial Issuance Through Year-end 1998: The Number of Transferors and Transfer Recipients, by Resident Type and Management Area

Table 11-4a. Intra-cohort and Cross-cohort Transfers of Halibut QS From Initial Issuance Through Year-end 1998, by Management Area

Table 11-4b. Intra-cohort and Cross-cohort Transfers From Initial Issuance Through Year-end 1998, by Management Area

12 Changes in the Distribution of Halibut QS by Census Area(PDF file, 51K)

Table 12-1a. Initial Allocation and Year-end 1998 QS Holdings by Management Area and Census Area

Table 12-1b. Initial Allocation and Year-end 1998 QS Holders by Management Area and Census Area

13 New Entrants in the Fishery(PDF file, 24K)

Table 13-1a. Halibut QS Holdings for Initial Issuees and New Entrants at Year-end

Table 13-1b. New Entrants to the IFQ Fisheries

Table 13-2. Leases of Halibut QS to Initial Issuees and New Entrants to the Area

14 Changes in Harvest and Delivery Patterns(PDF file, 73K)

Table 14-1. Alaska Halibut Harvest (Pounds) by State of Delivery: 1990-1998

Table 14-2. Halibut Deliveries by Alaska Census Area: 1990-1998

Table 14-3. Comparison of Persons With Landings and Average Landings in the Halibut Fishery From 1990 to 1998

Table 14-4. Halibut Harvest (pounds) by Area, Year, and Quarter: 1995-1998

Table 14-5. Halibut Harvest (pounds), by Area, Year, and State of QS Owner: 1995-1998

Table 14-6. Halibut Harvest by QS Owners and Hired Skippers, 1995-1998

Table 14-7. Halibut Harvests by QS Owners and Hired Skippers, 1995 to 1998, by Vessel Category

15 Overharvest and Underharvest of IFQs and TACs(PDF file, 56K)

Table 15-1. Comparison of Halibut TACs and Harvest by Management Area, 1990 to 1998

Table 15-2. Available IFQs and IFQs Harvested, by Area and Vessel Category

Table 15-3a. Fished and Unfished QS Owned by Initial Issuees Who Had Not Altered Their QS Holdings by Year-end 1995 to 1998

Table 15-3b. Number of Initial QS Recipients Who Had Not Altered Their QS Holdings by Year-end 1995 to 1998: Persons With and Without Harvests

16 Consolidation of Permit Holders on Fishing Operations(PDF file, 29K)

Table 16-1. Summary of 1990-1998 Halibut Harvest and Participation

Table 16-2. Summary of 1995-1998 Halibut Harvest and Participation by Vessel Category

Figure 1. Map of IPHC Halibut Management Areas (Chapter 1)

Figure 2. QS Transfer Application Form - 1995 (Appendix II)

Figure 3. QS Transfer Application Form - 1996 (Appendix II)

Figure 4. QS Transfer Application Form - 1997 (Appendix II)

Figure 5. QS Transfer Application Form - 1998 (Appendix II)