THE MFC ADVISOR

Marine Fisheries Commission Business Meeting
Pine Knoll Shores, North Carolina
September 6-7, 2007


The Marine Fisheries Commission and the Division of Marine Fisheries continue to look for ways to keep committee advisors and the public informed about commission activities. It is our intent to publish the MFC Advisor after each business meeting, summarizing the meeting, and providing a list of motions and rulemaking proceedings. Hopefully this bulletin will keep you better informed about commission activities. Your comments regarding this update are always appreciated – please contact Nancy Fish by e-mail at nancy.fish@ncmail.net or by phone at 252-726-7021 or 1-800-682-2632.

The MFC held a business meeting September 6-7 at the Clamdigger Inn in Pine Knoll Shore, North Carolina. The following members were in attendance: Mac Currin - Chairman, Dr. B.J. Copeland -Vice Chairman, David Beresoff, Dr. Barbara Garrity-Blake, Mikey Daniels, Dr. Jim Leutze, Rusty Russ, Bradley Styron and Marshall Williford.
Motions and Actions
The agenda was approved for the September 2007 MFC business meeting by consent.

The minutes from the June 2007 MFC business meeting were approved by consent.

Public Comment
The following individuals addressed the MFC:

Wayne Dunbar, fisherman – spoke of the need to suspend the rules and issue a proclamation to allow trawlers to work in long-haul areas and six-foot contour areas to catch shrimp in the Neuse River, since there were no crabs being caught and no pots were set.

Alex Adams, fisherman - spoke of the need to suspend the rules and issue a proclamation to allow trawlers to work in long-haul areas and six-foot contour areas to catch shrimp in the Neuse River, since there were no crabs being caught and no pots were set.

The DMF issued a proclamation in response to these requests, which can be found at:
http://www.ncdmf.net/procs/procs2k7/SH-13-2007R.html

Sean McKeon, NCFA – asked the MFC to send a letter to NMFS asking them to use an age-based assessment for vermilion snapper rather than the length-based assessment they are currently using. Also asked the MFC to send a letter to the N.C. General Assembly stating that we do not need a legislative fiat that overrides the Fisheries Reform Act in regard to recent menhaden legislation.

Al Perry, Martin County Commission – asked the MFC to allow a 100,000-pound harvest of river herring, as recommended by the River Herring FMP Advisory. Committee.

Chairman’s Report
The MFC held a discussion on the format for its business meeting records and decided to change from hard-copy verbatim minutes to digital recordings placed on CDs. The MFC also instructed DMF staff to provide hard copy meeting summaries.

Motion by Jim Leutze for the MFC meetings to be recorded digitally and for summary minutes to be distributed instead of verbatim minutes, seconded by Marshall Williford – motion passed 5 – 3.

The MFC reviewed the following proposed 2008 meeting schedule:
-February 21 & 22  Marriott, Carolina Beach
-April 22 & 23   City Hotel and Bistro, Greenville
-June 19 & 20      Sheraton, Downtown Raleigh
-September 25 & 26  Clamdigger Inn, Pine Knoll Shores
-November 6 & 7   Ramada Inn, Kill Devil Hills
DMF staff was asked to investigate if the February meeting could be moved to January.

Committee Recommendations
The MFC received reports and updates from all of its advisory committees that met during July and August.

Motion by Barbara Garrity-Blake to send a letter to EMC in support of more stringent stormwater runoff measures, seconded by Jim Leutze – motion passed unanimously.

Motion by B.J. Copeland to send a letter of appreciation to Dick Hamilton thanking him for his years of service with the Wildlife Resources Commission, seconded by Rusty Russ – motion passed unanimously.

Motion by Barbara Garrity-Blake to set the Standard Commercial Fishing License
Eligibility Pool CAP at 1562, seconded by David Beresoff – motion passed unanimously.

Fishery Management Plans
The commission was given an update on the status of the fishery management plans that are in the process of being developed or reviewed.

Motion by Jim Leutze to refer the issue of allowing the use of mechanical retrieval of trawl gear used by Recreational Commercial Gear License holders to the Crustacean Advisory Committee for consideration, seconded by David Beresoff – motion passed unanimously.

Motion by Marshall Williford for final approval of the River Herring FM Plan with associated rules, seconded by Jim Leutze – motion passed 5 - 3.

This FMP can be viewed or downloaded at:
http://www.ncdmf.net/download/RiverHerringMFCapprovedFeb07FMP.pdf

Motion by Jim Leutze to support the Division of Marine Fisheries’ recommendations on all three Central Southern Management Area recommendations for striped bass, including notice of text, seconded by B.J. Copeland – motion passed 7 – 0, with one recusal.

Motion by B.J. Copeland to take the Oyster and Hard Clam FMPs to public meetings, seconded by Jim Leutze – motion passed unanimously.

Motion by B.J. Copeland to take the Interjurisdictional FMP to public meetings, seconded by David Beresoff – motion passed unanimously.

Management Review of Striped Bass, Red Drum, Spiny Dogfish, Large Coastal Sharks and Snapper/Grouper
DMF staff reviewed the status of the five species referred to in a letter from the N.C. Watermen United in a March 17, 2006 letter regarding the plight of North Carolina’s commercial fishing industry and the impact of these particular fisheries. Division staff gave the commission a management overview of striped bass, red drum, spiny dogfish, large coastal sharks and snapper/grouper.

For striped bass in the ocean, a new peer reviewed Atlantic States Marine Fisheries Commission (ASMFC) stock assessment is scheduled for November 2007. If the review is favorable, and the mortality and spawning stock biomass remain steady, it is likely a coast wide commercial quota increase will be considered. With the recreational striped bass ocean fishery there has been a significant increase in fishing effort, from 8.3 million trips in 1997 to 12.6 million trips in 2006. Striped bass in the ocean are considered viable.

Striped bass in the Albemarle Sound Management Area have not met the Total Allowable Catch (TAC) since 2004 for the commercial bycatch fishery and 2001 for the recreational fishery. The division has extended seasons and increased daily harvest limits in order to try and allow fishermen to harvest their TAC. Striped bass in the Albemarle Sound Management Area are considered viable.

The red drum stock is showing improvement and a review of the state’s FMP is underway. The stock’s spawning potential ratio has gone from 18 percent in 1990 to over 30 percent in 2007. Red drum is listed as recovering in the latest state stock status report.

In 2005, a Spiny Dogfish Compliance Advisory Board was convened by the MFC to assist the state in developing management strategies. In 2006, the coast-wide quota was increased from four million pounds to six million pounds. For the 2007 winter fishery, North Carolina set trip limits at 4,000 pounds to try and make it economically feasible for fishermen to target these fish. The only cutting houses processing dogfish were in the Northeast and by the time the fish moved into our waters these processors had all the fish they could handle. Warm water also delayed the migration of the fish. Spiny dogfish is considered a recovering stock.

For large coastal sharks, in May 2006 the division opened state waters to shark fishing when federal waters are open to provide more opportunity to North Carolina fishermen. Recently the National Marine Fisheries Service released a draft amendment to the Consolidated Highly Migratory Species Fishery Management Plan keeping the closed area off of North Carolina and limiting sandbar sharks to a research fishery. The division is working with the ASMFC in developing a Coastal Shark FMP to provide access for North Carolina fishermen to large and small coastal sharks under reduced quotas. Sharks are listed as a species of concern in the latest stock status report.

With the snapper/grouper complex, lower TACs have resulted from compliance with South Atlantic Fisheries Management Council plans and reauthorization of the Magnuson-Stevens Act. The division did enter into the lawsuit as a friend of the court in support of the North Carolina fishermen against the National Marine Fisheries Service in relation to Amendment 13C to the Snapper Grouper FMP. The commission and division will continue to use their resources to participate in the council process to strive for fair treatment and access for North Carolina fishermen in this important fishery.

The MFC asked DMF staff to send a copy of the presentation to the N.C. Watermen United and to invite them to the upcoming meeting in Ocracoke on November 15-16.

Suspension of Rules
If the DMF Director suspends any fisheries rules, the MFC must resuspend those rules at its subsequent meeting.

Motion by Jim Leutze to resuspend the rules to continue to have zero-harvest of river herring in state waters, seconded by B. J. Copeland – motion passed 5 - 3.

Motion by Jim Leutze to resuspend the rules to implement the Amendment 13C measures of the Snapper-Grouper FMP in state waters, seconded by B.J. Copeland – motion passed 4 - 3.

Limited Access Privilege Programs (LAPPs)
In a continuing educational discussion on LAPPs, division staff was asked to present the MFC with various options that could be used for defining a commercial fishermen.

North Carolina has always had a diverse group of commercial fishermen (full time, part time, seasonal) harvesting a diverse group of fisheries (inshore finfish, offshore finfish, shellfish). These groups are not easily delineated by the species they catch, and restricting harvests to particular sections of the commercial fleet produces an economic impact beyond the immediate confines of the fishermen’s businesses. Dealers in the Southern District, for example, rely more heavily on King Mackerel catches from a large pool of seasonal fishermen who exclusively use hook-and-line and stay within the recreational bag limits. Dealers in the Wanchese area receive harvested fish primarily from larger commercial boats using trawls and gill nets, and ship much of their product out of state. Attempts to distribute shares of the quota from one group to another will produce a geographically disproportionate economic impact.

Redistributing any fishery harvest among fewer individuals will also make the industry less resilient to business cycles, as risk is spread among a smaller number of businesses. Any movement by the MFC to change the definition of a commercial fisherman or add new categories should be done in the context of an identifiable end result. The most important question to consider is as follows: does increasing the percentage of North Carolina fishermen who work full time or year-round make the industry stronger, even if the overall number of fishermen goes down?

The following standards may be of use in defining professional commercial fishermen:

Status quo - A commercial fisherman is the holder of a commercial fishing or shellfishing license.
Positives:
Easily defined.
Consistent with current rules and public expectations.
Most fishermen seem to consider it “fair”
Would encompass the largest number of fishermen.
Negatives:
Some license holders only hold the license for investment, possible future use, or assignment.
Many shellfish license holders are recreational harvesters who purchase the license simply to harvest more than the recreational bag limit.
Because it encompasses the largest number of fishermen it does little to reduce fishing pressure.

Landings - A commercial fisherman holds a license and has used it to sell seafood to a dealer (i.e. has documentation of commercial catch from a governmental entity).
Positives:
Ends speculative use of licenses
Easy to validate through trip ticket reports.
Would encompass a large number of fishermen
Negatives:
May encourage fishing just to keep license
May still lead to excessive fishing pressure because of the large number of fishermen encompassed.
NC fishermen who also fish out of state would not have all of their landings qualify (i.e. full time commercial fishermen who fish only part of the year in NC)

Gear use - A commercial fisherman uses commercial gear such as trawls, gill nets, and pound nets OR has a federal or state permit.
Positives:
Eliminates hook-and-line recreational users from competing with commercial fishermen
Negatives:
May exclude some commercial users who do not use appropriate gear.
A fisherman could get around this by catching a minimal amount with a crab pot, etc
Difficult to establish qualifying gears since trip ticket analysis shows that even our highliners may use crab pots or clam rakes at some time during the year.
Hook & line gear used by highliners as well (snapper-grouper)
It may be difficult to predict what commercial gear will be used in the future due to regulations (fishery, habitat, or protected species specific), fishing behaviors, markets, target species, etc.
Reduced flexibility for gear changes.

Income (fixed) - A commercial fisherman earns a minimum amount of earned income from fishing in dollar terms.
Positives:
Easily defined except for out-of-state fishermen
Group that has some demonstrated success in fishing.
Negatives
Will differ substantially between regions of the state. Southern district has more small operators.
Difficult to establish and justify minimum income level for qualification.
Income could vary according to species, i.e. one bluefin tuna = 3 months of clamming. Does that make the bluefin tuna fishermen more “professional” than the clammer?

Income (majority) - A commercial fisherman earns a majority of his or her income from commercial fishing.
Positives:
Have a current definition from license sales, though not a verifiable one.
Includes those fishermen who rely on commercial fishing as their primary income source.
Excludes recreational fishermen selling bag limit fish.
Negatives:
Fluctuates based on non-fishing related activities.
Difficult to validate (IRS records required).

Permits - A commercial fisherman possesses a permit for a federally managed species, potentially one that is closed to new entrants.
Positives:
Easily defined. Easy to implement logistically.
Meeting the qualifying criteria and cost of a federal permit indicates the owner is serious about commercial fishing and willing to make a substantial investment.
Negatives:
Would result in the smallest number of fishermen.
Would exclude new entrants.
Applies only to federally-managed species.

Frequency of trips - A commercial fisherman takes a minimum number of trips or fishes at least once in each defined window (months or seasons).
Positives:
Easily defined for in-state fishermen
Negatives:
Not necessarily indicative of full time status
Can behavior modifying in biologically detrimental ways.
Difficult to define for out-of-state fishermen who infrequently land in NC.
Difficult to define some in-state fishermen who frequently land outside NC (have licenses in other states).

The MFC took no action on these options, but asked the DMF to prepare a presentation for a future meeting creating LAPP scenarios for southern flounder and king mackerel, including how fish are sold and fish houses’ dependence on these fish.

DMF staff also informed the MFC they had sent out informational material on LAPPs and a survey to 2,500 fishermen. Staff will report back to the MFC on the survey results at its November meeting.

Permanent Rules
DMF staff reviewed input received from a series of hearings June 19 – Manteo, June 20 – Edenton, June 21 – New Bern and June 25 – Raleigh, on the following topics:
Establishing River Herring-Anadromous Spawning Areas
Actions to Restore Abundance of NC River Herring, including continuing to have zero-harvest of river herring in state waters
Fishery Habitat Areas Definition in Support of Coastal Habitat Protection Plan Goals
Procedures and Requirements to Obtain a CRFL Exemption Permit
Gear-Specific Permits to Take Striped Bass from the Atlantic Ocean
Striped Bass Prohibited Trawling
Improve Language in Related Gill Net Rules

The MFC was also provided with a chart outlining its regional advisory committees recommendations on the proposed rules.

Following are the votes to adopt the above referenced issues as permanent rules:

Motion by Barbara Garrity-Blake to adopt permanent rules for the Fishery Habitat Area Definitions in support of the CHHP goals, but to hold the Submerged Aquatic Vegetation Habitat definition for further review, seconded by B.J. Copeland – motion passed unanimously.

Motion by Jim Leutze to adopt permanent rules for the striped bass permits, which includes the beach seine definition, seconded by B.J.Copeland – motion passed unanimously.

Motion by Marshall Williford to adopt a permanent rule for the Coastal Recreational Fishing License permit, including underprivileged youth as an eligible category, seconded by David Beresoff – motion passed unanimously.

Motion by Rusty Russ to adopt permanent rules for the striped bass trawl clarification, seconded by Bradley Styron – motion passed unanimously.

Motion by B.J. Copeland to adopt permanent rules to clarify lines between the Albemarle Sound and its tributaries for the purpose of enforcing the 500-yard distance between pound nets and gill nets, seconded by Jim Leutze – motion passed unanimously.

Notice of Text
The MFC decided to file notice of text to begin the rulemaking process on the following issues:

Motion by B.J. Copeland to file notice of text to amend the Blanket For Hire Coastal Recreational Fishing License and the For Hire Permit rules, seconded by Barbara Garrity-Blake – motion passed unanimously.

Motion by Marshall Williford to file notice to text to amend electrofishing rules in joint waters of the Cape Fear River between Lock and Dam #1 and the mouth of the Black River, seconded by Rusty Russ – motion passed unanimously.

Committee Referral
The MFC referred the issue of requiring a recreational limit of 48 quarts of shrimp for all recreational harvest and the issue of allowing the use of mechanical retrieval of trawl gear used by Recreational Commercial Gear License holders to the Crustacean Advisory Committee for review and consideration.

Coastal Recreational Fishing License
The MFC was given an update on license sales and an overview of the DMF’s funding and administration proposals for the CRFL. As of September 3, 2007, a total of 355,990 CRFL’s had been sold, for a net revenue of $3,543,370 in the Marine Resources Fund.
Approximately $1,660,852 has been obligated to the following projects or programs: Chowan River Bridge fishing complex design, a coastal angler’s guide, CRFL sales and data support, Fisheries Independent Assessment Program, CRFL implementation, and a senior stock assessment scientist position.

Waterfront Access and Marine Industry Fund
DMF Director Louis Daniel reported to the MFC that the Waterfront Access and Marine Industry (WAMI) Fund was created by the 2007 General Assembly to acquire waterfront properties or develop facilities for the purposes of providing, improving and/or developing public and commercial waterfront access. (SL 2007-0323)

Traditional maritime industries and public access to North Carolina’s coastal waters have been rapidly disappearing, being replaced by non-waterfront-dependent development and rising property taxes. The General Assembly felt state intervention was needed to ensure existing and future waterfront-dependent uses and continued access to the state’s public trust waters.

The WAMI will receive $20 million through certificate of participation bonds, which are loans that do not use the government’s taxing power as collateral; therefore, they do not require approval by a referendum, as do general obligation bonds. The debt service will be repaid by the N.C. Parks and Recreation Trust Fund financed by a deed stamp tax on the transfer or sale of property and by specialty license plate revenues.

The Division of Marine Fisheries (DMF) is the agency responsible for establishing a program to solicit proposals and disburse WAMI funds. The authorizing legislation states the DMF director may:

Consult with representatives of the commercial fishing industry and other marine industries or nonprofit groups with expertise in waterfront access issues to review potential projects.

Establish a committee to review potential property acquisitions and capital and infrastructure improvements.

The Joint Legislative Commission of Seafood and Aquaculture is given oversight of the fund and must approve all expenditures.

The DMF director will establish an advisory committee with representatives from the commercial fishing and other marine trade industries to assist in establishing a strategic plan for the fund and to develop guidelines to evaluate and select proposals. A Department of Environment and Natural Resources committee authorized in
SL 2007-0323 will assist the DMF director in determining which projects to fund.

The DMF will partner with other agencies, such as the Clean Water Management Trust Fund, Sea Grant, Division of Coastal Management and others. Access projects financed by the fund may be for recreational or commercial purposes, however any land or facility purchased with the WAMI money would be owned by the state. DMF will work closely with the State Treasurer’s Office to ensure the tax-exempt status of the bonds is not jeopardized.

Letters
The MFC decided to send the following letters:

To Senator Charlie Albertson and Representative William Wainwright, co-chairs of the Legislative Study Commission on Seafood and Aquaculture, supporting an increase in appropriations to N.C. Sea Grant.

To the Environmental Management Commission’s supporting their proposed amendments to the Coastal Stormwater Program (Rule 15A NCAC 02H .1005), which would apply in all 20 coastal counties within ½ mile of SA waters.

To Dick Hamilton, who recently retired from the Wildlife Resources Commission, thanking him for his service to the state.

To N.C. Watermen United giving them copy of the management overview of the five species of concern to them and inviting the group to the Ocracoke meeting.

To NMFS stressing need to use age-based data for the vermilion snapper assessment in Amendment 16of the SAFMC’s Snapper Grouper Fishery Management Plan.

To Senator Charlie Albertson and Representative William Wainwright, co-chairs of the Legislative Study Commission on Seafood and Aquaculture, stressing concern over the encroachment of authority with the recent legislation that was passed banning the harvest of menhaden with purse seines off of Brunswick County during certain times of the year.

2007 Meeting Schedule:
Nov. 15-16 Community Center, Ocracoke