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We offer a variety of ways to order with us as well — browse our massive, constantly updated online hobby shop or contact us for assistance in finding the right model. Begin building awesome, accurate models today! Armor Shop Now. Aircraft Shop Now. Ships Shop Now. Squadron Library Shop Now. Updates on new products and deals in your inbox! Sign Up Now! The adoption of the "More Deliberate Track Option" by the Council was, at least in part, related to divisiveness among Council members and apprehension by the fishing industry regarding implementation of an ITQ system.

There was also an impression that fishermen would eventually realize the benefits of an effort limitation programme and become more amenable to implementation of such as system. The Regional Director of the NMFS stated at the September Council Meeting that it was his opinion that after one more season of trip limits and seasonal closures, " The Panel indicated that there remained considerable industry opposition to ITQs and some of the opposition emanated from the fact that the fishermen had no knowledge as to what their individual allotments would be under an ITQ programme. The Council, waiting for the NMFS to collect and analyze red snapper landings records, took little action on Amendment 8 during much of The information became available to the Council at its November meeting.

After listening to the analysis pertaining to initial allotments, the Council made some technical changes to the Amendment and voted unanimously to hold public hearings on it. A set of eight public hearings were held in December While generating less than full support, it was obvious to some that the set of meetings and comments revealed more acceptance and support for ITQs than had been the case during previous public meetings.

In fact, a number of fishermen who had previously spoken out against ITQs changed their position after they received information as to their initial shares. Both Panels opted for a licence-limitation system in conjunction with trip limits in lieu of an ITQ programme.

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The Council, when it met in mid-January , after supporting an ITQ programme for several years, reversed itself and, following the advice of the Panels, voted for a licence-limitation system as the preferred option. Furthermore, the Council at the same meeting voted to submit Amendment 8 to the Secretary of Commerce for final approval at which point no further action could be taken by the Council on the Amendment.

In summary, the Council devoted about three years, off and on, to the development of a comprehensive management programme for red snapper with an anticipated implementation date almost a year later. The reasons for the extended process are varied. First, commercial fishermen were, in general, unfamiliar with effort limitation programmes and, hence, time was devoted to familiarizing them with alternative effort management programmes.

Second, there was considerable uncertainty among Council members as to whether an ITQ programme could be successfully implemented and the related intricacies of such a programme and, as such, they relied extensively on the industry through panels and the public hearings process to provide guidance on the specifics related to such a programme e. Finally, there was a need for information to be collected to provide fishermen with an estimate of individual ITQ allotments under an ITQ system. The collection of this information was time consuming but, in the opinion of many, exceedingly helpful in garnering increased support by fishermen for an ITQ programme.

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After all this work, however, support by the industry for an ITQ programme was considerably less than unanimous and it is debatable whether even the majority of the industry supported an ITQ programme. The Council, by and large, was constrained by what years it could use as a qualifying period for ITQ shares. Prior to , there was no systematic records of individual vessel harvest. After , there was an endorsement system which could tend to seriously distort catch records. Hence, the Council, with little objection, settled on qualifying time frame.

While there was little challenge to the time frame for qualification, there was considerable debate regarding the years to use within this time period. There was some discussion that the highest catch year within this three-year time frame should be used in determining the ITQ shares. In part, this option was rejected because it would, some thought, benefit speculators and individuals who entered the fishery in , the most productive year despite a shortened season.

Another option considered was an average of all vessel red snapper production records over the three-year period. This option was rejected because it might penalize individuals who had a bad year or missed a year of fishing during the eligibility period for unforseen reasons. As a compromise, the Council chose to allocate ITQ shares proportionately based on the average of the highest two out of three years during to On the surface, the issue of eligibility may appear relatively straight forward. Vessels fishing in the Gulf of Mexico reef fish fishery were required to have a reef fish permit.

One might conclude, therefore, that matching of the permitted vessels with documented red snapper landings attached to those vessels would provide the potential universe of ITQ shareholders.

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However, at the time that Amendment 8 was being developed, 6. This raised the issue of whether the initial red snapper ITQ allocation should be provided to the owner or operator of the reef fish permitted vessel in those instances where the operator's income was used to qualify the vessel.

In addition, public testimony pointed to the fact that "[i]n some instances, captains operate vessels under vessel lease agreements with the owners where the captain is classified as a self-employed independent contractor.


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Under these arrangements which may be written or verbal the captains pay the owner for use of the vessel through a share of the catch landed and hire and pay the crew". In all instances, however, the landings records were attached to the vessel. Amendment 8 listed seven alternative options regarding initial eligibility. Most of these options recognized only the current owners, operators, captains and income qualifiers who are in the fishery at the time of implementation of the amendments as eligible for initial allocation.

In the proposed rule establishing an ITQ programme and published in the Federal Register 25 August , initial eligibility was defined as follows: "An initial shareholder under the ITQ system would be either the owner or operator of a vessel with a valid permit on 29 August provided such owner or operator had the required landing of red snapper during the period through If the earned income of an operator was used to qualify for the permit valid on 29 August , such operator would be the initial shareholder rather than the owner.

The term "owner" includes a corporation or other legal entity. Additionally, a historical captain could be an initial ITQ shareholder". The rationale for inclusion of some operators i. Under these situations, it may be desirable to reward the individual responsible for the permit being issued p. With respect to historical captains, the Amendment goes on to state that "[u]nder such agreements the success of the fishing venture is largely based on the captain's expertise as a historical participant in the fishery".

As is the case with most ITQ programmes, the initial allocation of ITQ shares was based on historical production of vessels in the fishery. Individual shares were determined on a percentage basis of the commercial quota and then transformed into pounds that each shareholder was to receive. The expression of initial and thereafter annual allocations on a percentage basis, which was then converted to a poundage basis, was selected by the Council to facilitate allocation determinations over the long run as the stock and, hence, commercial quota was expected to increase.

An additional feature regarding the initial ITQ shares was that no initial shareholder was to receive an initial percentage share that would equate to less than lb whole weight.


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This was, in essence, a bycatch allowance for those initial shareholders who had minimum red snapper landings records during the qualifying period. After the minimum shares were calculated, the remaining percentage shares would then be apportioned based on each remaining shareholder's red snapper landings records during the qualifying period. Each shareholder was to receive coupons in various denominations equal to the shareholder's calculated total based on shares owned as of 1 November of the proceeding year.

The coupons would be transferrable by completing the sale endorsement thereon, including the name of the recipient. Any vessel under the ITQ programme was not permitted to possess red snapper in excess of ITQ coupons on board that vessel. In accordance with the sale of red snapper to a dealer throughout the year or the transfer of coupons remaining coupons would decrease accordingly unless additional coupons were purchased. The qualifying period for red snapper landings to be used in the initial allocation under the red snapper ITQ programme, as noted, was from through A moratorium on the issue of new reef fish permits, as noted, was established in May and the transfer of these permits was permitted only under certain conditions: a transfer of permits between vessels owned by the income qualifying owner of a permitted vessels, b transfer of permits between individuals was allowed only with the transfer of the permitted vessel e.

The Council addressed this issue as follows. First, the Council made the determination that records for the period should be retained by the permitted owner if the permit was transferred to additional vessels owned by the income qualifying owner. Second, the Council determined that the landings records for the period should be transferred to the new permitted owner, if the vessel permit was transferred through sale of the vessel or transferred due to death or disability, unless there was a legally binding agreement for such transfer.

As indicated in the Proposed Rules for the Gulf of Mexico red snapper ITQ programme "[t]he transfer of shares would be prohibited for the first 6 months after the date that ITQ coupons are required to be carried on board. From 6 months after the date that coupons are required to be carried on board to 18 months after such date, shares could be transferred only to persons who are initial shareholders and are U.

Thereafter, ITQ participants may transfer all or a portion of their percentage shares to any person who is a U.

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There would be a fee imposed on these transfers. Transfers during November and December of each year would not be recorded until the next year. Several issues related to transferring of ITQ shares are worth evaluating in greater detail. First, the transfer of ITQ shares from one individual to another did not automatically provide sufficient conditions for use of the ITQ shares because a reef fish permit was still a requirement for harvesting red snapper under an ITQ programme.

Hence, if the individual to whom the ITQ shares were being transferred to did not have a reef fish permit, he would not be able to directly use the ITQ shares.

A second relevant issue with respect to the transfer of ITQ shares was that any transfer would be prohibited for six months after the implementation of the ITQ programme. The rationale for inclusion of this restriction in development of the red snapper ITQ programme was two fold: a to give the NMFS sufficient time to fully prepare for the ITQ programme, including the determination of eligibility, assessing ITQ levels, and resolving disputes; and b to prevent speculation during the initial phase of the programme.

For the 6 to 18 month-period, as noted, transfer of shares could only be made to individuals who were initial shareholders and were U. The Council imposed this constraint on transferring shares during the initial phases of the programme to give preference to existing reef fish fishermen. Similarly, transfers during the first 18 months were to be limited to U. Finally, all transfers were to be registered with the Regional Director and transfers that were made during November or December of each year would not be recorded and confirmed until the following year.

The Council, in developing the red snapper ITQ programme, considered a "use it or lose it" criterion for individuals to maintain ITQ shares over the long run. One reason for considering such an option was that a use requirement would tend to "weed out" speculators during the early phases of the programme. The use requirement would also ensure that the total annual crop not above overfishing levels was harvested over the life span of the programme. This, some presumed, would effectively stop environmental groups from purchasing ITQ shares and not fishing them.

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The Council realized, however, that there were two drawbacks associated with including a "use it or lose it" clause. First, it would generate a certain amount of instability in the harvesting sector. Second, it would create a negative conservation impact by forcing individuals to harvest red snapper. Given these factors, the Council made a determination that no ITQ shares or portions thereof should revert back to the management programme because of lack of use. The issue of maximum ownership or use of ITQs was considered by the Council on the basis of both initial ownership and ownership or use after implementation of an ITQ programme.

These issues were addressed during the early stages of the Council deliberation process and with little objection, the decision was made almost immediately to impose no maximum on the initial holding of ITQs Minutes of the Reef Fish Committee Meeting, January The rationale for this decision was based, in part, on the fact that the maximum boat landings of red snapper in any year during the period was only 75 lb and, hence, no individual would initially dominate the market Minutes of the Council Meeting, January With respect to maximum ownership or use after implementation of an ITQ programme, a suite of options was originally proposed to the Council from which to choose.

One option would impose no maximum on the possession and fishing of ITQ shares during a given year. A second option would require that no individual could possess and fish more than a specified fraction of all outstanding ITQs in any single year. At its May meeting, the Council, by a vote of nine to eight, selected that "No maximum shall be imposed on the possession and fishing of ITQs for any single fishing year" as the preferred option to be taken to public hearings. The close vote on this issue is an indication of the divisiveness among the Council members at the time and general concern, as expressed by a number of fishermen in the sponsored workshops, that monopolization of ITQs was a distinct possibility.

This concern was fueled, at least in part, by the aggregation of ITQs in the Atlantic surf clam fishery where the Mid-Atlantic Council chose not to include any anti-monopoly features in its ITQ system preferring instead to leave it to the anti-trust laws see Minutes of the Council Meeting, March In a final action taken on Amendment 8, the Council chose not to impose any maximum on the possession of ITQ shares or the fishing of ITQ coupons in any given year.

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