Legislature(2007 - 2008)BARNES 124

03/19/2008 08:30 AM House FISHERIES


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08:40:13 AM Start
08:44:20 AM Overview: Round-table Discussion: Statutory and Regulatory Tools to Address Over Escapement and Foregone Harvest in Southeastern Alaska.
10:02:00 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Round Table Discussion: Statutory and TELECONFERENCED
Regulatory Tools to Address
Over-escapement and Foregone Harvest in
Southeastern Alaska
+ ADF&G, Commercial Fishing Groups, TELECONFERENCED
Processors
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 19, 2008                                                                                         
                           8:38 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Kyle Johansen                                                                                                    
Representative Craig Johnson                                                                                                    
Representative Peggy Wilson                                                                                                     
Representative Bryce Edgmon                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Gabrielle LeDoux                                                                                                 
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
ROUND-TABLE DISCUSSION:  STATUTORY REGULATOR TOOLS TO ADDRESS                                                                   
OVER ESCAPEMENT AND FOREGONE HARVEST IN SOUTHEAST ALASKA                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BOB THORSTENSEN                                                                                                                 
Southeast Seiners Association                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Participated in the round-table discussion:                                                              
Statutory and Regulatory Tools to Address Over Escapement and                                                                   
Foregone Harvest in Southeastern Alaska.                                                                                        
                                                                                                                                
GERON BRUCE, Assistant Director                                                                                                 
Division of Commercial Fisheries                                                                                                
Alaska Department of Fish & Game                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Participated in the round-table discussion:                                                              
Statutory and Regulatory Tools to Address Over Escapement and                                                                   
Foregone Harvest in Southeastern Alaska.                                                                                        
                                                                                                                                
BILL DAVIDSON, Coordinator                                                                                                      
Southeast Regional Fin-Fish Management                                                                                          
Division of Commercial Fisheries                                                                                                
Alaska Department of Fish & Game                                                                                                
Sitka, Alaska                                                                                                                   
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Southeastern Alaska.                                                                                        
                                                                                                                                
JOHN HILSINGER, Director                                                                                                        
Division of Commercial Fisheries                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Southeastern Alaska.                                                                                        
                                                                                                                                
MARK STOPHA, Direct Marketer                                                                                                    
Alaska Wild Salmon Company                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Southeastern Alaska.                                                                                        
                                                                                                                                
JERRY MCCUNE, Lobbyist                                                                                                          
United Fishermen of Alaska (UFA)                                                                                                
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Southeastern Alaska.                                                                                        
                                                                                                                                
LEN PETERSON Direct Marketer                                                                                                    
Taku River Reds                                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Southeastern Alaska.                                                                                        
                                                                                                                                
MARY MCDOWELL                                                                                                                   
Pacific Seafood Processors Association (PSPA)                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Southeastern Alaska.                                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  PAUL   SEATON  called  the  House   Special  Committee  on                                                             
Fisheries meeting to order at  8:38 a.m.  Representatives Seaton,                                                               
Edgmon, Johansen, and Johnson were  present at the call to order.                                                               
Representative Wilson arrived as the meeting was in progress.                                                                   
                                                                                                                                
^OVERVIEW:   ROUND-TABLE  DISCUSSION:   STATUTORY AND  REGULATORY                                                             
TOOLS  TO  ADDRESS  OVER  ESCAPEMENT   AND  FOREGONE  HARVEST  IN                                                             
SOUTHEASTERN ALASKA.                                                                                                          
                                                                                                                                
8:40:13 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  welcomed the participants,  and explained  that, in                                                               
2007,  Alaska  Department  of  Fish &  Game  (ADF&G)  prepared  a                                                               
summary  of  statewide  salmon  fishery  escapement  data.    The                                                               
reports,  contained  in  the  committee  packet,  indicate  where                                                               
escapements fell short  of the minimum, attained  the minimum, or                                                               
exceeded goals.   For discussion purposed,  those fisheries above                                                               
escapement  goals  will  be  treated as  foregone  harvest.    He                                                               
explained  contributing  factors  that  create  over  escapement,                                                               
regardless of  management efforts:   a remote stream  location, a                                                               
non-economical   size   run   to  pursue,   and   market   demand                                                               
fluctuations.    Following  the   first  summary,  the  committee                                                               
requested  an identification  of  the value  of  each stream,  by                                                               
species.  Fifty-five percent of  the monitored streams were above                                                               
the upper escapement goal.  In  situations where this occurs on a                                                               
regular  basis, ways  and means  to realize  an improved  harvest                                                               
needs  to be  addressed to  maximize  the economic  value of  the                                                               
resource.  He reminded the  participants that the discussion does                                                               
not  carry a  fault finding  mission, but  rather should  bring a                                                               
variety of  perspectives to improve the  situation for everyone's                                                               
benefit.                                                                                                                        
                                                                                                                                
8:44:20 AM                                                                                                                    
                                                                                                                                
BOB THORSTENSEN, Southeast  Seiners Association, called attention                                                               
to the committee packet, report  5J08-02, page 1, titled Abstract                                                               
Region  1:  Southeast  Region, Pink  Salmon,  to  ascertain  what                                                               
numbers were used to generate the graph.  He said:                                                                              
                                                                                                                                
     It  looks like  ...  the numbers  we're  using are  the                                                                    
     numbers that we would take  directly off the tables for                                                                    
     over  escapement. ...  If Southeast  Alaska is  looking                                                                    
     for escapement of  12 million ... if you came  it at 16                                                                    
     ... million,  you'd just take 4  million, subtract, and                                                                    
     you're out, right. ... That's how you did it.                                                                              
                                                                                                                                
8:45:55 AM                                                                                                                    
                                                                                                                                
GERON   BRUCE,  Assistant   Director,   Division  of   Commercial                                                               
Fisheries,  Alaska  Department  of  Fish  &  Game  responded,  "I                                                               
believe so."                                                                                                                    
                                                                                                                                
MR.  THORSTENSEN  opined  how,  with aerial  surveys,  the  index                                                               
stream  numbers  may  be  estimated  erroneously  to  a  dramatic                                                               
degree.  More importantly, he explained:                                                                                        
                                                                                                                                
     What we figured, over the  years, what we estimated is,                                                                    
     that  for every  pink  salmon that  we  count there  is                                                                    
     approximately  2.5 to  3 pink  salmon total  out there.                                                                    
     ...  Those numbers  actually with  an expansion  factor                                                                    
     would come in  ... dramatically higher.   These are ...                                                                    
     low numbers.                                                                                                               
                                                                                                                                
8:47:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON inquired about  the science, and logic, of                                                               
using an expansion factor ratio.                                                                                                
                                                                                                                                
8:48:16 AM                                                                                                                    
                                                                                                                                
MR. BRUCE asked if the  question is about peak escapement numbers                                                               
or expansion numbers.                                                                                                           
                                                                                                                                
MR. THORSTENSEN interjected to clarify:                                                                                         
                                                                                                                                
     What you've got here are  index numbers.  You're trying                                                                    
     to take  index numbers, turning them  into dollars, and                                                                    
     they're not real numbers.  That's all.                                                                                     
                                                                                                                                
8:49:27 AM                                                                                                                    
                                                                                                                                
BILL   DAVIDSON,   Coordinator,   Southeast   Regional   Fin-Fish                                                               
Management, Division  of Commercial Fisheries,  Alaska Department                                                               
of Fish &  Game, explained that there are  three escapement goals                                                               
in the Southeast  region waters:  southern  end, northern inside,                                                               
and northern outside.   The escapement index is based  on the 718                                                               
pink salmon producing streams in  the region, which are surveyed,                                                               
via small  aircraft, throughout  the season.   The  highest count                                                               
observed is  used for the index.   The surveyed stream  count and                                                               
part of  the index are summed  to determine the escapement  for a                                                               
particular  regional  goal.    Within   the  regional  goal,  the                                                               
managers  will   also  have  considered  historical   run  timing                                                               
information,  and factored  in developing  run  information.   He                                                               
reported  that  there  are  about  2,500  pink  salmon  producing                                                               
streams  in the  region, which  are not  all part  of the  index.                                                               
Flying an aerial survey, looking  vertically down on a population                                                               
of fish, the estimation tends to be lower than a ground count.                                                                  
                                                                                                                                
8:52:19 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked if  ADF&G has  scientifically arrived  at the                                                               
ratio factor of 1:2.3, and found to be reasonably accurate.                                                                     
                                                                                                                                
MR. DAVIDSON said the department  has done studies to establish a                                                               
multiplier factor.  However, with  the variables involved in each                                                               
stream,  it is  difficult  to  establish one  ratio  that can  be                                                               
accurately applied to each system.  He said:                                                                                    
                                                                                                                                
     We don't really know the  exact amount.  So the [1:]2.5                                                                    
     is a rough expansion [ratio],  trying to fit all cases,                                                                    
     when we don't have information  in all of the different                                                                    
     streams.                                                                                                                   
                                                                                                                                
8:54:04 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON queried what the  confidence level is when using the                                                               
1:3 or 1:2.5 ratio.                                                                                                             
                                                                                                                                
MR. DAVIDSON  stated, for  working purposes,  it provides  a good                                                               
general estimate.  He clarified:                                                                                                
                                                                                                                                
     On smaller size  returns the expansion may  not be that                                                                    
     high.  It  might be closer to what you  see is what you                                                                    
     get.   On a very  large escapement it could  be greater                                                                    
     than  that.  ...  The   index  represents  the  general                                                                    
     condition of the area.                                                                                                     
                                                                                                                                
8:55:01 AM                                                                                                                    
                                                                                                                                
CHAIR   SEATON  requested   a  description   of  how   commercial                                                               
management occurs in relation to the index data.                                                                                
                                                                                                                                
MR. DAVIDSON described purse seine  openings, for pink, chum, and                                                               
sometimes  sockeye, throughout  the  season.   Four area  offices                                                               
simultaneously  manage individual  districts, in  accordance with                                                               
the  over-all   seasonal  management   plan  provided   from  the                                                               
department.  The  area managers are able to  adjust the openings,                                                               
based  on  the  local  CPUE  [catch  per  unit  effort]  and  run                                                               
strengths.   He said that  the managers are  able to stay  out in                                                               
front of  returns, and  are reinforced by  data from  the ongoing                                                               
aerial surveys."                                                                                                                
                                                                                                                                
CHAIR SEATON  surmised that the fishery  experiences general area                                                               
wide  openings  rather  than  individual  openings  for  specific                                                               
bays/inlets.                                                                                                                    
                                                                                                                                
MR. DAVIDSON said to describe  a single purse seine opening would                                                               
take a 6-7 page report detailing  each of the 14 districts in the                                                               
region.  The  length of each opening varies by  location, with an                                                               
attempt to  maintain some regional  consistency; it is  a complex                                                               
situation.                                                                                                                      
                                                                                                                                
8:58:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON referred to  the extrapolation question to                                                               
ask,  if it  appears that  there are  100,000 fish,  is that  the                                                               
number used without applying a multiplier to the index.                                                                         
                                                                                                                                
MR. DAVIDSON  explained that there  is not an adjustment  for the                                                               
multiplier.   "It  is  known  and understood  that  the index  of                                                               
escapements are what they are." he said.                                                                                        
                                                                                                                                
8:59:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked whether  it is  possible to  be 100                                                               
percent off in the actual count.                                                                                                
                                                                                                                                
MR. DAVIDSON allowed  that, from an airplane, it could  be off by                                                               
200 percent.   From  an airplane  at 500-600  feet and  flying 70                                                               
mpg, the exact number can not be ascertained.                                                                                   
                                                                                                                                
REPRESENTATIVE JOHNSON inquired if that  might result in an under                                                               
as well as over estimation.                                                                                                     
                                                                                                                                
MR.  DAVIDSON replied  that  in some  systems  and given  weather                                                               
conditions, it would be possible.                                                                                               
                                                                                                                                
REPRESENTATIVE JOHNSON  asked what is considered  the statistical                                                               
margin of error.                                                                                                                
                                                                                                                                
MR. DAVIDSON responded that the  focus is to observe the historic                                                               
data of  a stream vs.  providing accurate  counts.  He  said that                                                               
establishing a foregone harvest a challenge.                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  observed that, dealing with  a 50 percent                                                               
margin of error,  getting a foregone harvest is  a very difficult                                                               
process.   The  information  may  not be  available  in order  to                                                               
associate a dollar amount with the foregone harvest.                                                                            
                                                                                                                                
9:02:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  inquired  whether  southeast  is  a  more                                                               
difficult  area to  provide definitive  numbers,  than the  other                                                               
regions of the  state.  Further, she asked, due  to the number of                                                               
streams in the  various districts, is it possible  for a district                                                               
to experience overall  low returns despite abundant  runs in some                                                               
systems.                                                                                                                        
                                                                                                                                
MR. DAVIDSON stated  that he has not observed  fisheries in other                                                               
regions  of  the state,  but  various  approaches are  used  with                                                               
differing  levels of  accuracy to  establish escapement  numbers.                                                               
In southeast,  aerial surveys are  utilized for pink  salmon, and                                                               
river sockeye  may be counted via  a fish wheel using  a mark and                                                               
recapture  program.   In  response  to  the second  question,  he                                                               
offered that there can be  variability in the strength of returns                                                               
to specific areas within a  district.  Areas within districts are                                                               
sometimes closed, when returns are deemed insufficient.                                                                         
                                                                                                                                
REPRESENTATIVE  WILSON clarified  that  the  charts indicate  low                                                               
returns  overall,   for  certain  years,  but   could  individual                                                               
districts have experienced good returns during those years.                                                                     
                                                                                                                                
CHAIR  SEATON clarified  that the  charts  indicate the  foregone                                                               
harvest, the  fish estimated above  the escapement goal,  not the                                                               
total run.   A perfect chart  would show no bars,  as there would                                                               
not be over escapement occurring.                                                                                               
                                                                                                                                
9:05:24 AM                                                                                                                    
                                                                                                                                
JOHN HILSINGER, Director, Division  of Commercial Fisheries, said                                                               
a variety  of methods  are used around  the state,  and described                                                               
the  sonar techniques,  and costs  involved in  obtaining precise                                                               
counts.  It  is not feasible to use the  most accurate methods in                                                               
many  areas where  300-700 streams  need  to be  monitored.   The                                                               
aerial survey, recognized as an  imprecise estimate, does provide                                                               
a  valuable management  tool.   Since  statehood, aerial  surveys                                                               
have been utilized to provide  a cost effective, and biologically                                                               
sound, means for rebuilding runs.                                                                                               
                                                                                                                                
CHAIR SEATON commented  that estimating a run, from  the air, can                                                               
be as much an art as a science.                                                                                                 
                                                                                                                                
9:08:02 AM                                                                                                                    
                                                                                                                                
MR.  THORSTENSEN  provided  that the  official  Alaska  expansion                                                               
factor for pink  salmon, as utilized in  negotiations with Canada                                                               
by the Pacific Salmon Commission, is  a ratio of 1:2.5.  Further,                                                               
he  reported   that,  during  the   last  seasons   effort,  over                                                               
escapement was  less attributable to the  department's ability to                                                               
manage openings,  than it was  to the fleet's actual  capacity to                                                               
harvest and  process.   Despite some  over escapement,  he opined                                                               
that the  pink harvest concerns  have been met through  the "good                                                               
old fashioned economics of the capitalist model."                                                                               
                                                                                                                                
9:11:31 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  indicated  that increased  value  credits  may  be                                                               
available  for processing  of  pink salmon,  which  may serve  to                                                               
enhance  the economics  of the  harvest.   In areas  where strong                                                               
runs prevail  in remote streams,  the direct market  approach may                                                               
prove of  value, and he  pointed out the regulatory  changes that                                                               
support  this  type  of  fishery.     The  legislature  would  be                                                               
interested  in assisting  in other  ways that  would improve  the                                                               
economic gain of these remote resource sites.                                                                                   
                                                                                                                                
9:12:46 AM                                                                                                                    
                                                                                                                                
MARK  STOPHA,  Direct  Marketer,   Alaska  Wild  Salmon  Company,                                                               
explained how added  value has been implemented  in each species,                                                               
including  pink salmon.   Because  of added  value handling,  the                                                               
pink  fillet is  beginning to  find demand  in the  market place;                                                               
being  recognized as  a widely  spread affordable  product.   The                                                               
concern for  this niche market  is providing enough  high quality                                                               
fish.  He  described the frustrations involved in  his efforts to                                                               
comply  with the  DEC regulations.    The sticking  point is  the                                                               
requirement for  a fully  enclosed gutting  and gilling  room, to                                                               
protect the product  from dust and pests.  A  direct marketer who                                                               
handles only  their own  catch, does  not have  this requirement,                                                               
nor does  a floating  processor, or a  vessel that  is delivering                                                               
field dressed  catch to a  shoreside processor, who  are required                                                               
to have  a covered area  only.  He  pointed out that  many times,                                                               
these  vessels  are performing  the  same  activity within  close                                                               
proximity,  while  at sea,  which  is  void  of dust  and  pests.                                                               
Appeal has been  made through the rule making  petition, under AS                                                               
44.62.220,   for   relief,   and  to   better   understand   this                                                               
requirement.   The  federal regulations  provide other  means for                                                               
addressing these same hazards.  He said:                                                                                        
                                                                                                                                
     That's   why  we've   sent  letters   out,  and   we're                                                                    
     continuing to press to  get some legislative, statutory                                                                    
     ... relief from this, because  we don't feel ... we ...                                                                    
     have anybody to appeal to.                                                                                                 
                                                                                                                                
9:16:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  asked if there  is room  on a 26'  boat to                                                               
comply.                                                                                                                         
                                                                                                                                
MR. STOPHA responded it requires  a 55-60 foot boat, which raises                                                               
another  compliance  issue.    A direct  marketer,  doing  a  few                                                               
thousand pounds of fish per  day looses economically when running                                                               
a larger  vessel.  He  stressed that  this does not  constitute a                                                               
food safety  issue, and  the fleet  needs to be  able to  use the                                                               
vessels available.                                                                                                              
                                                                                                                                
9:17:36 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON recalled:                                                                                                          
                                                                                                                                
     I had made the amendment  and put forward to allow five                                                                    
     vessels to  work together, up  to five, and  process on                                                                    
     [one] vessel,  so that  we would  get beyond  this ...,                                                                    
     when we  were doing the  direct marketing bill  ... two                                                                    
     years  ago. ...  The Direct  Marketing Association  ...                                                                    
     didn't  support  that  amendment. ...  Before  you  are                                                                    
     going to be  able to get this, you're going  to have to                                                                    
     get all of the direct  market folks on board with that,                                                                    
     because it  was opposed  by them. ...  It is  a problem                                                                    
     and  ... it  would allow  some foregone  harvest to  be                                                                    
     taken  by smaller  operations.  ... Absolutely,  you're                                                                    
     right, it's not a safety  issue, or anything else.  But                                                                    
     the attempt was to put  that language in ... the direct                                                                    
     market bill and ... it was opposed at the time.                                                                            
                                                                                                                                
9:19:37 AM                                                                                                                    
                                                                                                                                
JERRY MCCUNE,  Lobbyist, United Fishermen of  Alaska (UFA), asked                                                               
if this is for at-sea processing, or in the harbor.                                                                             
                                                                                                                                
MR. STOPHA replied  that it only applies on  the fishing grounds.                                                               
He  pointed  out  that, according  to  Alaska  Seafood  Marketing                                                               
Institute  (ASMI)  information,  through 2006  one-third  of  H&G                                                               
[headed  and gutted]  Alaskan product  is  reprocessed in  China,                                                               
but,  with  direct  marketing, every  dollar,  and  the  products                                                               
reputation, remains in Alaska.                                                                                                  
                                                                                                                                
CHAIR  SEATON  reiterated  the legislatures  support  for  direct                                                               
marketing.                                                                                                                      
                                                                                                                                
9:21:19 AM                                                                                                                    
                                                                                                                                
MR. MCCUNE  asked for  a further description  of the  gutting and                                                               
gilling enclosure required.                                                                                                     
                                                                                                                                
MR.  STOPHA  described,  and differentiated,  the  required  hard                                                               
sided room from the commonly used tarp cover.                                                                                   
                                                                                                                                
CHAIR SEATON clarified  that the law allows a  direct marketer to                                                               
handle their  own fish, but,  if catch is purchased  from another                                                               
vessel, they  become a  floating processor  and must  comply with                                                               
the requirement for  a full enclosure.  The  foregone harvest may                                                               
be a key approach for resolving this concern.                                                                                   
                                                                                                                                
9:23:27 AM                                                                                                                    
                                                                                                                                
LEN PETERSON  Direct Marketer,  Taku River Reds,  said that  as a                                                               
direct marketer,  he catches and  processes his own fish,  and he                                                               
also  purchases fish  from  other fishermen.    He reported  that                                                               
there is  an over abundance of  pink salmon in southeast,  and in                                                               
2006  there were  so  many  coming up  the  Taku  River, that  he                                                               
couldn't market  all that he caught.   The price he  receives for                                                               
his fish, depends completely on who  he markets it to.  Each pink                                                               
may bring three  dollars, on the direct market,  or eighty cents,                                                               
if the processor  is even buying them, making  the exvessel value                                                               
highly variable.  The direct  market customers are willing to pay                                                               
for  the high  quality product,  which a  seiner is  not able  to                                                               
deliver.  He stressed:                                                                                                          
                                                                                                                                
     I need this  foregone harvest.  I'd like to  be able to                                                                    
     sell more  of the pinks  that I  process on my  boat to                                                                    
     Mark [Stopha].   I'd like to be able to  buy pinks from                                                                    
     other  fishermen and  process  on  my direct  marketing                                                                    
     boat,  but   I  can't  by  that   regulation.  ...  I'm                                                                    
     interested in  processing fish  on my  direct marketing                                                                    
     boat  that I  purchase.   I  cannot touch  them by  the                                                                    
     regulations as  they are now.   I can  only refrigerate                                                                    
     them.  So  whatever condition I get them in  ... I have                                                                    
     to hold them  until I get to town, ...  talk to a shore                                                                    
     base processor,  and have them custom  process my fish.                                                                    
     If I  catch that fish  on my own  boat ... I  can dress                                                                    
     it, I can  take care of it, I can  pressure bleed it, I                                                                    
     can sell  it.  In this  case, though, if I  buy it from                                                                    
     another  fisherman,  and  increase the  value  to  that                                                                    
     fisherman of their  catch, I cannot process  it until I                                                                    
     get to town. ... That law makes no sense to me.                                                                            
                                                                                                                                
CHAIR  SEATON  clarified  how  the  amendment  was  opposed,  and                                                               
concerns were  expressed for  allowing five  fishermen/vessels to                                                               
work together.                                                                                                                  
                                                                                                                                
9:29:07 AM                                                                                                                    
                                                                                                                                
MR. THORSTENSEN  agreed that a  unified approach for  added value                                                               
and  direct  marketing could  only  result  in improved  economic                                                               
gain, for everyone.   He speculated what the  pink salmon harvest                                                               
number could  be if  the regulations allowed  the small  boats to                                                               
work together,  and added  that industrial  processing, including                                                               
involvement  with China,  would still  need  to occur.   The  law                                                               
currently  slows  down the  fishermen's  ability  to harvest  and                                                               
process in a timely manner;  expediting fish to market is slowed.                                                               
He  reiterated the  need for  the continued  relationship between                                                               
the  traditional seiner  and corporate  processor, to  handle the                                                               
large volume runs.                                                                                                              
                                                                                                                                
CHAIR SEATON noted that the  direct, niche markets are worked out                                                               
easier  on a  smaller scale.   Setting  competition issues  aside                                                               
will allow the  various entities to work in a  united way to help                                                               
change the  existing law.  He  pointed out how southeast  has the                                                               
potential to  do more  in the  added value  arena than  the other                                                               
regions, and reminded participants of  the state based tax credit                                                               
incentive for added value catch endeavors.                                                                                      
                                                                                                                                
9:34:33 AM                                                                                                                    
                                                                                                                                
MARY  MCDOWELL, Pacific  Seafood  Processors Association  (PSPA),                                                               
welcomed the participation of  the independent, direct marketers,                                                               
stating that there  is opportunity for everyone  to benefit given                                                               
the large  volume of the available  catch.  She pointed  out what                                                               
PSPA  is  doing  to  add  value  in  the  realm  of  large  scale                                                               
processing.                                                                                                                     
                                                                                                                                
9:35:36 AM                                                                                                                    
                                                                                                                                
MR. PETERSON  mentioned pink  salmon cannot  all be  harvested as                                                               
food  grade.   The pet,  and supplement,  quality product  can be                                                               
utilized  by  the large  processor,  but  not the  small,  direct                                                               
marketer.  He pointed out that  there is a world shortage of fish                                                               
meal, which the large processor  could cultivate, and be assisted                                                               
by  the direct  marketer in  a  cooperative effort.   Further  he                                                               
noted  the  surplus of  fish  to  be  harvested, and  the  volume                                                               
available, which cannot be handled at this time.                                                                                
                                                                                                                                
9:37:25 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON inquired how  the southeast processors/fishermen are                                                               
handling  carcasses, and  if  they are  taking  advantage of  roe                                                               
collection  opportunities.   Also, he  asked whether  there is  a                                                               
plan  for  handling carcasses/egg  recovery  when  a larger  than                                                               
expected run occurs; is dispersal left to nature.                                                                               
                                                                                                                                
MR. HILSINGER deferred.                                                                                                         
                                                                                                                                
MR. DAVIDSON  explained how fisheries  have been opened  to allow                                                               
roe  harvest,  ikura [salmon  caviar],  during  times of  surplus                                                               
runs, at the  mouths of streams.  The  carcasses are beneficially                                                               
utilized,  being processed  for bait,  fish meal,  fish oil,  and                                                               
other purposes.                                                                                                                 
                                                                                                                                
9:40:02 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  described carcass disposal  issues, in  other areas                                                               
of  the  state,  and  asked  how  it  is  handled  in  southeast,                                                               
particularly in remote stream harvest locals.                                                                                   
                                                                                                                                
MR. DAVIDSON  responded that the  shore based  processors operate                                                               
under EPA [environmental protection  act] standards, for grinding                                                               
and discharge of carcasses, and  some processors have meal plants                                                               
to create  a beneficial use of  the by product.   Special purpose                                                               
carcass disposal  permits are  available, but he  said he  is not                                                               
aware that they have been utilized in southeast.                                                                                
                                                                                                                                
CHAIR SEATON  explained how it  is handled in south  central, and                                                               
PWS,  and  offered that,  if  a  plan  needs  to be  devised  for                                                               
southeast,  the  issue should  be  brought  forward in  a  timely                                                               
manner.                                                                                                                         
9:43:55 AM                                                                                                                    
                                                                                                                                
MR. MCCUNE offered that southeast  fishermen have moved away from                                                               
harvesting roe,  in order  to focus on  yielding a  fully useable                                                               
product.   Three additional  processors have  been brought  in to                                                               
handle the  pink harvest to assist  in maximizing the use  of the                                                               
entire fish.                                                                                                                    
                                                                                                                                
9:44:55 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON moved  attention  to the  sockeye  salmon table  in                                                               
report 5J08-03, and asked for comment.                                                                                          
                                                                                                                                
9:46:18 AM                                                                                                                    
                                                                                                                                
MR.  HILSINGER described  the majority  of the  southeast sockeye                                                               
systems as  being small,  with the exception  of the  Taku River.                                                               
Also, some  of the systems are  enhanced with hatchery fish.   He                                                               
requested that  Mr. Davidson address  the over escapement  on the                                                               
Taku River, and the Redoubt Lake  situation.  The table in report                                                               
5J08-1,  page   2,  indicates  how  over   escapements  fluctuate                                                               
dramatically  with the  sockeye runs,  making management  of this                                                               
species  more difficult  than others.   These  fluctuations occur                                                               
for  various  reasons,  including when  over  escapement  occurs,                                                               
resulting  in  years  of  abundant  fry,  which  graze  down  the                                                               
phyto/zoaplankton, setting the stage for a population decrease.                                                                 
                                                                                                                                
9:49:02 AM                                                                                                                    
                                                                                                                                
MR.  DAVIDSON addressed  the consistent  sockeye  surplus in  the                                                               
Taku River, pointing out that it  is a complex fishery to manage.                                                               
As a trans  boundary river, it is managed in  accordance with the                                                               
Pacific Salmon Treaty,  that results in a  multiplicity of goals.                                                               
He  offered an  example of  how surplus  sockeye, present  in the                                                               
main stem  Taku River, have  been managed for limited  harvest to                                                               
provide    sufficient    escapement   into    Tatsamenie    Lake.                                                               
Additionally, enhanced chum stocks play  a role.  Last season saw                                                               
a  chum  harvest of  600,000  fish,  with  a sockeye  harvest  of                                                               
112,000,   indicating   how   fishermen  are   seeking   economic                                                               
opportunities to harvest  more chum; by passing  the lower priced                                                               
pink runs.  Yet another  problem is the directed chinook harvest,                                                               
which  overlaps  with  the  sockeye run.    Fishermen  allow  the                                                               
sockeye to  escape, in  order to target  the chinook.   Regarding                                                               
Redoubt Lake,  he said that, although  it may appear to  be ready                                                               
for harvest,  the lake fluctuates greatly  in escapement numbers.                                                               
It is  the primary  subsistence system in  the Sitka  area, which                                                               
takes priority  over a commercial  opening.  Finally,  he pointed                                                               
out that the sockeye populations  of southeast primarily exist in                                                               
small, widely scattered lakes throughout  the region, and only 13                                                               
systems  have established  escapement  goals.   Stock  assessment                                                               
projects imply a need for funding, he finished.                                                                                 
                                                                                                                                
CHAIR  SEATON praised  the department's  efforts in  working with                                                               
the  local  user groups  to  solve  the  management issues.    He                                                               
provided an update on the scheduled round-table discussions.                                                                    
                                                                                                                                
9:55:21 AM                                                                                                                    
                                                                                                                                
MR. PETERSON described an additional  conflict that occurs at the                                                               
mouth  of the  Taku River,  when  the run  intermingles with  the                                                               
Snettisham  hatchery returns,  creating hatchery  and wild  stock                                                               
management difficulties.  Also, he  reported that last season was                                                               
a down year for  chum salmon in the Taku River,  with a return of                                                               
half of  what was expected.   He opined that the  majority of the                                                               
foregone  harvest  is  comprised  of  Snettisham  hatchery  fish.                                                               
These sockeye average between 2-4  pounds, while the wild sockeye                                                               
average 8-9 pounds; a more valuable  product.  The market for the                                                               
smaller sockeye has not been  established, and until that happens                                                               
they  will  continue  to  represent  the  bulk  of  the  foregone                                                               
harvest.                                                                                                                        
                                                                                                                                
9:58:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN  referred to  report 5J08-01, page  2, to                                                               
inquire  about   the  consistent  "B,"  below   escapement  goal,                                                               
standing of McDonald Lake.                                                                                                      
                                                                                                                                
MR.  HILSINGER explained  that McDonald  Lake  is a  particularly                                                               
difficult  system,   with  stock   numbers  that  tend   to  vary                                                               
dramatically.   Although it has experienced  abundant returns, in                                                               
recent  years it  has  not  produced well.    The department  has                                                               
launched a study  to determine what has happened  to this system.                                                               
Further,  a restocking  plan  is under  way,  along with  harvest                                                               
restrictions, to boost production.   The exact reason why sockeye                                                               
runs  vary  dramatically in  certain  systems,  such as  McDonald                                                               
Lake, is unknown.                                                                                                               
                                                                                                                                
REPRESENTATIVE JOHANSEN  asked if the  up and down  trend appears                                                               
in  the  historical  escapement  goal  charts,  or  has  it  only                                                               
occurred recently.                                                                                                              
                                                                                                                                
MR. HILSINGER deferred.                                                                                                         
                                                                                                                                
MR.  DAVIDSON stated  that  the lake  does  have historical  data                                                               
indicating  a  history  of  fluctuation.    He  agreed  with  Mr.                                                               
Hilsinger, the exact cause remains a scientific mystery.                                                                        
                                                                                                                                
CHAIR  SEATON interjected  that over  escapement of  sockeye, can                                                               
cause  serious detriment  to a  system, which  requires time  for                                                               
recovery.                                                                                                                       
                                                                                                                                
10:01:40 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  EDGMON  suggested that  DEC  be  included in  the                                                               
future meetings.                                                                                                                
                                                                                                                                
10:02:00 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON thanked everyone for participating and for their                                                                   
interest in uniting efforts towards a more economic fisheries                                                                   
resource harvest.                                                                                                               
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 10:02                                                                   
a.m.                                                                                                                            

Document Name Date/Time Subjects