Legislature(2007 - 2008)BARNES 124

03/26/2008 08:30 AM House FISHERIES


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08:40:16 AM Start
08:40:16 AM Overview: Round-table Discussion: Statutory and Regulatory Tools to Address Over Escapement and Foregone Harvest in Bristol Bay and Westward Regions
10:07:13 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
Bristol Bay and Westward Region
- ADF&G, Commercial Fishing Groups,
Processors
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 26, 2008                                                                                         
                           8:40 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Craig Johnson                                                                                                    
Representative Gabrielle LeDoux                                                                                                 
Representative Bryce Edgmon                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lindsey Holmes                                                                                                   
Representative Kyle Johansen                                                                                                    
Representative Peggy Wilson                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  ROUND-TABLE DISCUSSION:  STATUTORY AND REGULATORY                                                                    
TOOLS TO ADDRESS OVER ESCAPEMENT AND FOREGONE HARVEST IN BRISTOL                                                                
BAY AND WESTWARD REGIONS                                                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOHN HILSINGER, Director                                                                                                        
Division of Commercial Fisheries                                                                                                
Alaska Department of Fish & Game (ADF&G)                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the round-table discussion:                                                              
Statutory and Regulatory Tools to Address Over Escapement and                                                                   
Foregone Harvest in Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
JEFF REGNART, Central Regional Supervisor                                                                                       
Division of Commercial Fisheries                                                                                                
Alaska Department of Fish & Game (ADF&G)                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the round-table discussion:                                                              
Statutory and Regulatory Tools to Address Over Escapement and                                                                   
Foregone Harvest in Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
JIM MCCULLOUGH, Central Regional Supervisor                                                                                     
Division of Commercial Fisheries                                                                                                
Alaska Department of Fish & Game (ADF&G)                                                                                        
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
ROBERT HEYANO, President                                                                                                        
Bristol Bay Regional Seafood Development Association (BB-RSDA)                                                                  
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
BOB WALDROP, Executive Director                                                                                                 
Bristol Bay Regional Seafood Development Association (BB-RSDA)                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
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 Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
KRIS NOROSZ, Government Relations                                                                                               
Icicle Seafoods                                                                                                                 
Petersburg, Alaska                                                                                                              
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
MARVIN EBNET                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
KRISTIN RYAN, Director                                                                                                          
Division of Environmental Health                                                                                                
Department of Environmental Conservation (DEC)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
DAVID HARSILA , President                                                                                                       
Alaska Independent Fishermen's Marketing Association (AIFMA)                                                                    
Seattle, Washington                                                                                                             
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
ROBIN SAMUELSON, President and CEO                                                                                              
Bristol Bay Economic Development Corporation (BBEDC)                                                                            
[No address provided]                                                                                                           
POSITION STATEMENT:  Participated  in the round-table discussion:                                                             
Statutory  and Regulatory  Tools to  Address Over  Escapement and                                                               
Foregone Harvest in Bristol Bay and Westward Regions.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  PAUL   SEATON  called  the  House   Special  Committee  on                                                             
Fisheries  meeting  to  order at  8:40:16  AM.    Representatives                                                             
Seaton, Johnson, LeDoux,  and Edgmon were present at  the call to                                                               
order.                                                                                                                          
                                                                                                                                
^OVERVIEW:   ROUND-TABLE  DISCUSSION:   STATUTORY AND  REGULATORY                                                             
TOOLS TO ADDRESS OVER ESCAPEMENT  AND FOREGONE HARVEST IN BRISTOL                                                             
BAY AND WESTWARD REGIONS                                                                                                      
                                                                                                                                
8:40:16 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the only order of  business would be                                                               
a round-table discussion addressing  the statutory and regulatory                                                               
tools to address over escapement  and foregone harvest in Bristol                                                               
Bay and  Westward regions.   The state constitution  requires the                                                               
legislature to  endeavor to maximize  the value of  the resources                                                               
to  benefit Alaskan's.   The  Alaska  Department of  Fish &  Game                                                               
(ADF&G) has  compiled reports, included in  the committee packet,                                                               
based  on monitored  index streams  indicating where  escapements                                                               
have  fallen  short of  the  minimum,  attained the  minimum,  or                                                               
exceeded goals.  The minimum  escapement is required to sustain a                                                               
healthy, continuous  run of salmon.   Where escapement  goals are                                                               
exceeded  the number  represents  a surplus  of  fish entering  a                                                               
system,  which  could  have  been  harvested,  hence  a  foregone                                                               
harvest.  In  the case of sockeye salmon, he  stated, this can be                                                               
detrimental, due to an overabundance  of fry creating stress on a                                                               
system.   Furthermore, 55 percent  of the monitored  streams, for                                                               
2006,  experienced  an over  escapement,  a  situation which  may                                                               
occur for  various reasons.   Chair  Seaton explained  that these                                                               
interest  groups  discussions are  being  held  in an  effort  to                                                               
discover  means  for  optimizing   the  fishery  resources.    He                                                               
encouraged participants  to offer  ideas for  implementing change                                                               
in  state regulation,  consider utilization  of fishing  methods,                                                               
explore  processing procedures,  and suggest  improved management                                                               
techniques.                                                                                                                     
                                                                                                                                
8:46:25 AM                                                                                                                    
                                                                                                                                
JOHN  HILSINGER,  Director,  Division  of  Commercial  Fisheries,                                                               
Alaska Department of  Fish & Game (ADF&G), stated  that the issue                                                               
of  excess  escapement  is  a  complex topic  that  lies  at  the                                                               
intersection  of  conservation,  economics, allocation,  and  the                                                               
practicalities  of  fisheries management.    He  agreed that  the                                                               
dissection  of this  topic may  be helpful,  given the  variables                                                               
that occur from year to year.                                                                                                   
                                                                                                                                
8:47:31 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  added that  the  effect  on  Bristol Bay  and  the                                                               
western regional  fisheries of lost  harvest, represented  by the                                                               
chinook salmon  by-catch in the  Bering Sea, is another  topic he                                                               
would like to hear addressed in today's discussion.                                                                             
                                                                                                                                
8:48:07 AM                                                                                                                    
                                                                                                                                
JEFF   REGNART,   Central   Regional  Supervisor,   Division   of                                                               
Commercial Fisheries,  Alaska Department of Fish  & Game (ADF&G),                                                               
said the  Bristol Bay sockeye  salmon run  is the largest  in the                                                               
state, and  the department conducts  intensive monitoring  on its                                                               
numerous watershed systems, to establish  escapement goals.  Over                                                               
escapement occurs due to several factors.  He said:                                                                             
                                                                                                                                
     One,  the   department's  made  a   mistake  in-season.                                                                    
     Either we should have fished  earlier or more time, and                                                                    
     that does  happen, on  any given year,  for any  of the                                                                    
     systems.  ... Second  ... [a]  forecast  that might  be                                                                    
     inaccurate. ... We're not prepared  early in the season                                                                    
     for  the large  ... run  that we're  experiencing.   It                                                                    
     comes to strategy  of how we prosecute  the fishery in-                                                                    
     season. ... You also have  capacity issues ... that can                                                                    
     cause   issues   in-season,   which   can   result   in                                                                    
     potentially  going   over  goals,  [and]   having  lost                                                                    
     opportunity.                                                                                                               
                                                                                                                                
8:50:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LEDOUX   queried   how  quickly   an   in-season                                                               
management adjustment  can be made,  when an  inaccurate forecast                                                               
is realized, and over escapement is occurring.                                                                                  
                                                                                                                                
MR. REGNART responded  that Bristol Bay fisheries  are managed on                                                               
an hourly  basis, and from tide  to tide, during the  peak of the                                                               
season.   The department utilizes EO  (emergency order) authority                                                               
to issue  openings 5-6 times  per day,  which last an  average of                                                               
10-12 hours.   The  department is  able to  react quickly  to run                                                               
information  sources,  often  within  2-3 hours,  issuing  an  EO                                                               
accordingly.                                                                                                                    
                                                                                                                                
8:55:01 AM                                                                                                                    
                                                                                                                                
JIM   MCCULLOUGH,  Central   Regional  Supervisor,   Division  of                                                               
Commercial Fisheries,  Alaska Department of Fish  & Game (ADF&G),                                                               
said that  the directed fisheries  for chinook salmon  only occur                                                               
in a  few minor systems,  in the central  region.  Sockeye  are a                                                               
major target  species, however  a portion of  the catch  are fish                                                               
that  are migrating  to systems  located  in the  Bering Sea  and                                                               
North  Pacific waters.   Pink  and chum  salmon are  the abundant                                                               
species,  and coho  are becoming  more  important throughout  the                                                               
region.  The central region fishery  begins the first of June and                                                               
continues through  October, due  to each species  being targeted,                                                               
as well as  multiple runs.  The department  has established weirs                                                               
on the  major sockeye systems,  providing accurate counts.   Pink                                                               
and chum escapements are estimated  via aerial survey counts, and                                                               
those  runs are  managed using  averages  vs. exact  counts.   He                                                               
reported that industry  plays a major role,  regarding control of                                                               
the run  escapement.  When  the Bristol Bay sockeye  runs overlap                                                               
with those  of the  central region,  processing capacity  is over                                                               
taxed to  handle the harvest  from both  areas.  Some  years have                                                               
seen   fish  transported   to  British   Columbia,  Canada,   for                                                               
processing.                                                                                                                     
                                                                                                                                
9:00:00 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON   directed  attention  to  the   committee  packet,                                                               
referred to the ADF&G report  5J08-1, [page 24], appendix D2, and                                                               
pointed out  that several systems  were noted, to wit:   "Surplus                                                               
escapements were primarily  due to lack of  industry interest and                                                               
minimal  fishing  effort  rather  than  any  specific  management                                                               
action."   He asked  why there  was a lack  of interest  in these                                                               
systems,  and  whether  fishing effort  could  be  generated  via                                                               
direct  marketing techniques,  or  other methods.   The  included                                                               
systems were  Cinder River, Meshik  River, Bear River  Early Run,                                                               
North  Creek, Orzinski  Lake, Mortensen  Lagoon,  and Thin  Point                                                               
Lake.                                                                                                                           
                                                                                                                                
MR. MCCULLOUGH many  of these areas are  unfortunately distant to                                                               
the  necessary  support  infrastructure.   Transportation  costs,                                                               
combined  with  the price  of  processing,  prohibit an  economic                                                               
harvest.                                                                                                                        
                                                                                                                                
9:03:08 AM                                                                                                                    
                                                                                                                                
ROBERT   HEYANO,   President,   Bristol  Bay   Regional   Seafood                                                               
Development   Association    (BB-RSDA),   explained    that   the                                                               
association  has  1,800 members,  who  are  experiencing loss  of                                                               
economic  opportunity in  Bristol  Bay, and  he  deferred to  the                                                               
association's director to  provide recommendations for rectifying                                                               
the situation.                                                                                                                  
                                                                                                                                
9:04:09 AM                                                                                                                    
                                                                                                                                
BOB  WALDROP, Executive  Director, Bristol  Bay Regional  Seafood                                                               
Development Association (BB-RSDA), said  the association has been                                                               
in  business about  four months,  after two  years aborning.   He                                                               
acknowledged the spirits, on all  fronts, to assist in optimizing                                                               
the  fishery.    A  possible   solution  would  be  to  allow  an                                                               
aggressive early season  fishery.  For the past  three years, the                                                               
Bristol Bay region  has experienced a foregone  harvest worth $55                                                               
million wholesale, representing 39  million round pounds, with an                                                               
exvessel value of $22 million to  the fishermen.  He stressed the                                                               
magnificence of the Bristol Bay  sockeye run, where the 2007 over                                                               
escapement  totaled approximately  6  million fish,  representing                                                               
more than the  combined sockeye harvests in the  remainder of the                                                               
state.                                                                                                                          
                                                                                                                                
9:08:31 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON directed  attention to ADF&G report  J508-3, table 1                                                               
page 2 of 2  [report page 3], and asked if this  is the data that                                                               
he is using in his calculations.                                                                                                
                                                                                                                                
MR. WALDROP  responded that  he is actually  starting from  a mid                                                               
point  estimate of  the escapement  goal, not  the upper  end, to                                                               
which the document refers.                                                                                                      
                                                                                                                                
CHAIR  SEATON   clarified  that   ADF&G  has  been   focusing  on                                                               
maintaining an  escapement above the  lower range, and  below the                                                               
upper  range.   The 2007  numbers that  the association  is using                                                               
differ  from  the  departments.   He  read  the  over  escapement                                                               
figures from the report:  2007  at 2.5 million sockeye, valued at                                                               
$8.87  million; 2006  at  2.69 million  sockeye,  valued at  $8.5                                                               
million; 2005  at 1.4  million sockeye,  valued at  $5.3 million.                                                               
Apparently  the association  is using  the same  numbers, but  is                                                               
calculating what  is above the  mid point  vs. what is  above the                                                               
upper range.                                                                                                                    
                                                                                                                                
MR.   WALDROP  explained   his   method   for  interpreting   the                                                               
department's figures.                                                                                                           
                                                                                                                                
9:10:59 AM                                                                                                                    
                                                                                                                                
CHAIR   SEATON   asked  for   clarity   on   how  Mr.   Waldrop's                                                               
interpretation  might interface  with the  numbers provided  from                                                               
the department.                                                                                                                 
                                                                                                                                
MR. REGNART  responded the numbers  in table 1,  page 2 of  2 are                                                               
the upper end of the bound,  and the numbers Mr. Waldrop is using                                                               
are from the  mid point.  The BOF, for  regulatory purposes, uses                                                               
the  mid  point  range  as   an  in-season  target,  however  the                                                               
department  cannot manage  the run  appropriately utilizing  that                                                               
figure.                                                                                                                         
                                                                                                                                
MR. HILSINGER pointed out:                                                                                                      
                                                                                                                                
     In   the  sustainable   fisheries   policy,  ...   [it]                                                                    
     specifies that,  over time, the department  will try to                                                                    
     distribute escapements  evenly throughout the  range of                                                                    
     a biological  escapement goal  range, which  these are.                                                                    
     ...  Our  policy for  salmon  management  says that  we                                                                    
     should  have some  escapements near  the low  end, some                                                                    
     escapements in the middle, and  some escapements at the                                                                    
     high end.   So we don't,  by policy, try to  target any                                                                    
     particular point within the range.                                                                                         
                                                                                                                                
9:14:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON,  considering  the  sustainable  fisheries                                                               
policy, asked does that preclude  the department from allowing an                                                               
early  harvest  on  the run,  minimizing  the  bottleneck,  which                                                               
traditionally occurs in early July.                                                                                             
                                                                                                                                
MR. REGNART answered that the  policy would not preclude an early                                                               
fishery.   Further, the  department is  preparing a  revised 2008                                                               
outlook for  Bristol Bay,  which will  include a  more aggressive                                                               
approach beginning June 1.                                                                                                      
                                                                                                                                
REPRESENTATIVE EDGMON  queried if  this indicates  the department                                                               
is  assessing  a  more  aggressive  early  season,  or  will  the                                                               
opportunity be instituted.                                                                                                      
                                                                                                                                
MR.  REGNART said  the  department is  taking  a more  aggressive                                                               
stance to allow  more fishing days per week, from  June 1 through                                                               
the  third  week  of  June,  for the  sockeye  fisheries  in  the                                                               
eastside districts.   The  Nushagak district  is managed  for the                                                               
chinook harvest and will require a different approach.                                                                          
                                                                                                                                
MR. WALDROP  stressed the magnitude  of the issue.   He described                                                               
how an  early season, aggressive  harvest, would be a  benefit to                                                               
economic exploitation  of the sockeye  run, and provide  an early                                                               
season  operational  "shake-down"  for  the processors.    It  is                                                               
encouraging that  the department is looking  at implementing this                                                               
possibility, he opined.                                                                                                         
                                                                                                                                
9:21:33 AM                                                                                                                    
                                                                                                                                
JERRY  MCCUNE,  Lobbyist,  United   Fishermen  of  Alaska  (UFA),                                                               
inquired  if  there will  need  to  be more  transportation,  ice                                                               
machines,  or  other  infrastructure support  to  implement  this                                                               
plan.                                                                                                                           
                                                                                                                                
MR. WALDROP  stated the  infrastructure is  shallow, in  the bay,                                                               
and  needs  to  be  bolstered,   however,  those  are  long  term                                                               
solutions that will be brought on-line in the coming years.                                                                     
                                                                                                                                
MR.  MCCUNE  offered  that  RSDAs   in  every  region  could  use                                                               
infrastructure  support  to help  deliver  a  quality product  to                                                               
market.                                                                                                                         
                                                                                                                                
9:23:33 AM                                                                                                                    
                                                                                                                                
KRIS NOROSZ, Government  Relations, Icicle Seafoods, acknowledged                                                               
the  intensity of  the Bristol  Bay fishery.   Fully  funding the                                                               
department would  be helpful to expand  management opportunities,                                                               
and  help  the  department  to afford  every  available  tool  to                                                               
maximize   harvest  possibilities.      She   pointed  out   that                                                               
predictability is difficult, and  this area becomes a reactionary                                                               
fishery, which  the department manages admirably.   Attempting to                                                               
not go  beyond the mid point  range could result in  some streams                                                               
not  receiving  enough  escapement.    There  is  over-escapement                                                               
despite best  efforts, which appears  to be unavoidable.   Icicle                                                               
Seafoods  has  a salmon  task  force,  which meets  regularly  to                                                               
discuss  post   and  pre   season  opportunities.     Cultivating                                                               
discussions, such  as these, the department's  move towards early                                                               
harvest,  and  continued dialogue  with  other  regions, are  all                                                               
helpful  in  means  for   creating  constructive  solutions,  she                                                               
opined.                                                                                                                         
                                                                                                                                
9:28:24 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON agreed  that  funding plays  a  part, but  dialogue                                                               
helps to  identify the tools  necessary for improved  harvest and                                                               
product.    He referred  to  the  round-table discussion  on  the                                                               
southeast region  [House Special  Committee on  Fisheries meeting                                                               
3/19/08],  and described  the concerns  that arose  regarding the                                                               
direct  market  vessels.    The  fishermen  find  that  they  are                                                               
inhibited in  only being able  to process their  individual boats                                                               
catch.  If  they purchase another boats catch, then  they must be                                                               
permitted  as a  floating  processor and  work under  constraints                                                               
that are  prohibitive for  a direct marketer.   However,  four or                                                               
five vessels working  together, could jointly gut  and gill, ice,                                                               
and  transport a  value added  product that  otherwise might  not                                                               
provide an economical harvest.   The fast and furious Bristol Bay                                                               
fishery  may not  apply, but  he asked  if other  reaches of  the                                                               
westward region have similar issues  with remote areas that could                                                               
be served by allowing this type of joint effort.                                                                                
                                                                                                                                
9:30:44 AM                                                                                                                    
                                                                                                                                
MR.  MCCUNE  said  that  not  allowing  the  direct  marketer  to                                                               
purchase fish,  to back fill  an order, is an  inhibiting factor.                                                               
Why a floating  processor permit would be required  by the state,                                                               
does not  appear to be  in concert with the  federal regulations,                                                               
he opined.   Every  direct marketer  stands on  their reputation,                                                               
which should be enough to ensure a quality product.                                                                             
                                                                                                                                
9:32:30 AM                                                                                                                    
                                                                                                                                
KRISTIN  RYAN,   Director,  Division  Of   Environmental  Health,                                                               
Department  of Environmental  Conservation (DEC),  stated that  a                                                               
chart  has  been  generated  to   clarify  what  process  can  be                                                               
completed, by whom,  and what permit is required.   The intent of                                                               
the  direct market  fishing vessel  permit was  created to  allow                                                               
fishermen  to  sell  their catch,  while  maintaining  sanitation                                                               
standards.     Cleaning  under  a   covered  area,   clean  water                                                               
availability,  and labeling  the product  in a  traceable manner,                                                               
are among  the many  requirements.  In  this way,  fishermen have                                                               
been able to cultivate a niche  market, for a quality product not                                                               
handled  by  a  processor;  a  program  invoked  ten  years  ago.                                                               
Restricting the  program to the  boat catch only, has  provided a                                                               
delineation  of the  fundamental difference  between a  fisherman                                                               
and  a  processor.   The  quantity  of  fish is  restrictive,  as                                                               
fishing boats  are not  intended to  process large  numbers fish.                                                               
Additionally, a  category was  implemented, to  support fishermen                                                               
who  have  a foot  in  both  worlds,  thus the  small  processor.                                                               
Regulations for a small processor  require safety measures beyond                                                               
what  the  direct marketer  must  meet,  to further  protect  the                                                               
product from pests  and dust.  Boats that are  26 feet, have been                                                               
outfitted  with a  fully enclosed,  collapsible structure,  which                                                               
meets  compliance   standards.    She  explained   that  a  small                                                               
processor may process their product  anywhere, however the direct                                                               
marketer  is restricted  to processing  on  the fishing  grounds.                                                               
Accommodating the  person who  wants to  process more  than their                                                               
boats  catch, has  created an  issue which  DEC is  attempting to                                                               
address in the best way, working  with the fishermen to solve the                                                               
conflicts.                                                                                                                      
                                                                                                                                
9:36:49 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  pointed out  that  transporter  vessels have  been                                                               
implemented in  some areas, as  a mechanism that creates  a small                                                               
cooperative.   The point of  sale regulation has been  relaxed to                                                               
allow  the transporter  permit to  be utilized.   This  indicates                                                               
that there may  be other ways to work within  regulations to help                                                               
solve the  issue.  Some  fishermen may not  be aware of  the free                                                               
transport permit opportunity, he opined.                                                                                        
                                                                                                                                
9:38:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  clarified  the structures  required:    a                                                               
covered work  space for the individual,  direct market fisherman;                                                               
and a fully enclosed area for the small processor.                                                                              
                                                                                                                                
MS. RYAN  responded that the goal  is to keep dust  and pests out                                                               
if  the area  where  the meat  is exposed.    By restricting  the                                                               
direct marketer to  process their fish 1 ½ miles  off shore, only                                                               
a cover  is necessary  for warding off  bird droppings;  dust and                                                               
flies are  not present  when at  sea.   However, a  processor can                                                               
conduct  business anywhere,  and  are required  to  have a  fully                                                               
enclosed  facility,  which  can  be can  be  a  collapsible  tarp                                                               
structure with fly walls.                                                                                                       
                                                                                                                                
REPRESENTATIVE LEDOUX  queried, if  someone wants to  buy another                                                               
boats  fish, on  the fishing  grounds to  process with  their own                                                               
catch,  what's  the  purpose  of  requiring  that  they  have  an                                                               
enclosed structure.                                                                                                             
                                                                                                                                
MS. RYAN said, when another  boat's catch is handled, the dynamic                                                               
is  shifted  from  being  a   fisherman  to  being  a  processor.                                                               
Purchasing fish  to sell to  the public, puts the  fisherman into                                                               
another realm, hence the additional requirements.                                                                               
                                                                                                                                
CHAIR SEATON  directed the participants  back to the  day's topic                                                               
of over escapement.                                                                                                             
                                                                                                                                
9:41:50 AM                                                                                                                    
                                                                                                                                
MARVIN  EBNET,  introduced  himself  as a  Bristol  Bay  set  net                                                               
fisherman,  with a  focus  on  the Ugashik  River  district.   He                                                               
reported he has  observed the up-river run continuing  for a full                                                               
month after  the department  has pulled  the counting  towers, in                                                               
the fall.   He  suggested that,  taking this  into consideration,                                                               
the  escapement  numbers  may be  significantly  under  reported.                                                               
Further, he opined  that the two major issues in  Bristol Bay are                                                               
processing  capacity,  and   tender  availability,  inhibits  the                                                               
ability  to  process  the harvest,  and  effectively  limits  the                                                               
fishermen's catch  in the Ugashik district.   Processing capacity                                                               
either needs to  be ramped up in some way,  or foreign processors                                                               
allowed to assist with the volume.   The tender capacity has been                                                               
reduced,  due  to  the   crab  rationalization,  compounding  the                                                               
processing problem.                                                                                                             
                                                                                                                                
9:45:12 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  called  attention  to a  letter  [e-mail]  in  the                                                               
committee  packet,  dated  March   25,  2008,  from  Erick  Sabo,                                                               
regarding  correspondence from  Trident  Seafoods addressing  the                                                               
Ugashik  situation.    The  letter   makes  clear  that  handling                                                               
capacity for the Ugashik run  will not be available from Trident,                                                               
and possibly not from other buyers.   He asked if this appears to                                                               
be an anomaly, and whether the  anticipated 2008 run will lead to                                                               
over escapement.                                                                                                                
                                                                                                                                
MS. NOROSZ stated  that she is not familiar with  the letter from                                                               
Trident.   She  has been  to the  Ugashik area  and observed  the                                                               
fishery.  Historically, the Ugashik  has been a difficult area to                                                               
service, without many fishermen  participating, and being an area                                                               
that  has not  had  a  cannery.   The  capacity  survey that  was                                                               
conducted  this  year,  indicates  that there  will  be  adequate                                                               
processing  capacity in  Bristol  Bay, however,  she declined  to                                                               
address the Ugashik situation directly.                                                                                         
                                                                                                                                
9:47:31 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON referred  to the ADF&G report  escapement table, and                                                               
pointed out  the Ugashik  had 1,270,000 fish  last year,  but the                                                               
preceding  six  years  do  not  indicate  over  escapement.    He                                                               
inquired if the department is  concerned for the Ugashik district                                                               
goals.                                                                                                                          
                                                                                                                                
MR. REGNART responded that the  department has received a copy of                                                               
the letter.   He pointed out how the Ugashik,  on any given year,                                                               
presents two concerns:   The processors interest  in operating in                                                               
that  area, as  it is  remote represents  an expensive  endeavor.                                                               
Also, it is  difficult to attract the fleet to  the area, as they                                                               
must relocate  from a  producing district,  and possibly  have to                                                               
wait in Ugashik for the run to arrive.                                                                                          
                                                                                                                                
9:50:13 AM                                                                                                                    
                                                                                                                                
DAVID   HARSILA,   President,  Alaska   Independent   Fishermen's                                                               
Marketing  Association  (AIFMA),   stated  that  over  escarpment                                                               
issues are  compounded by processor capacity  limiting the pounds                                                               
of fish  that a fisherman can  deliver on any given  opening.  He                                                               
predicted  that the  situation may  worsen in  the coming  years;                                                               
2009 and  2010.   Early fishing efforts  were attempted  in 2004,                                                               
and in 1980, with mixed results.   Inviting new processors in may                                                               
be the most helpful solution, he opined.                                                                                        
                                                                                                                                
9:53:07 AM                                                                                                                    
                                                                                                                                
ROBIN  SAMUELSON,   President  and  CEO,  Bristol   Bay  Economic                                                               
Development Corporation (BBEDC), referred  to ADF&G table 1, page                                                               
2  of  2, [report  5J08-03],  and  suggested that  an  escapement                                                               
analysis  should  be  considered   from  the  medium  range,  for                                                               
improved accuracy.   The over escapement figures  indicate a loss                                                               
of  economic opportunity  between  $8-$16  thousand dollars,  for                                                               
each   permit  holder,   depending   on  how   the  numbers   are                                                               
interpreted.  He reported that  a major portion of the processing                                                               
capacity  in the  area  has been  lost, and  every  bay has  seen                                                               
harvest  limits  imposed on  the  fishermen.    A number  of  the                                                               
processors closed  down, or  slowed capacity,  when the  price of                                                               
salmon dipped  to $.40  cents.  These  actions have  had dramatic                                                               
impacts  on  the fishermen,  during  the  last  five years.    An                                                               
example was  the early season Igiugig  catch, when one day  saw a                                                               
million  fish brought  in.   He said  that the  entire processing                                                               
sector could not  recover from that situation,  for the remainder                                                               
of the  season, effecting other  fishing districts in the  bay in                                                               
the form of  fishing limits and closures.  The  BBEDC submitted a                                                               
request to the governor's office,  for a 2008 processing/capacity                                                               
survey, to enable foreign processors  to enter the bay and assist                                                               
should a  surplus be evident.   He said  he was dismayed  when he                                                               
read  the  survey,  which indicated  confidence  by  the  current                                                               
processors to handle the run.   However, a run projected to be 40                                                               
million  fish,  with a  harvest  expectation  of 30  million,  is                                                               
overwhelming.  Haul-out  boats have been suggested,  but they are                                                               
heavily  involved in  the pollock  fishery.   He reported  on the                                                               
chinook  by-catch,  as  part  of  the  pollock  fishery.    Scale                                                               
analyses  indicate that  the  majority, 66  percent,  of the  130                                                               
thousand chinook  by-catch, are  bound for  western Alaska.   The                                                               
Bristol Bay chinook  return has diminished, he  reported, as well                                                               
as the Kuskokwim and the Yukon  River, which may not be allowed a                                                               
commercial  chinook  harvest  this  year.    He  reiterated  that                                                               
without the presence of foreign  processors, this year will again                                                               
see limits  on harvest, and  the chronic problem of  Ugashik will                                                               
continue.   The  lost economic  opportunities cannot  be ignored.                                                               
He suggested bringing in foreign  processors to handle the custom                                                               
processing.   Further, he proposed  an opening from  6/1-22, with                                                               
the setnetters  on 24  hours per day  in the  eastside districts,                                                               
and allowing the  drift net fishery to operate  through 6/17, and                                                               
then begin  the regulation  process, or  not, depending  on need.                                                               
The  BBEDC  has invested  millions  in  ice barges,  slush  bags,                                                               
insulated  totes,  fish  hold  insulation,  and  other  means  to                                                               
increase the value of these fish by  $1.00 or more per pound.  He                                                               
strongly urged the department to consider these options.                                                                        
                                                                                                                                
10:01:25 AM                                                                                                                   
                                                                                                                                
CHAIR  SEATON  asked  if  the  size of  the  anticipated  run  is                                                               
expected to  accentuate the problems  experienced in  the Ugashik                                                               
and other out lying areas.                                                                                                      
                                                                                                                                
MS. NOROSZ,  speaking only  on behalf  of Icicle  Seafoods, which                                                               
traditionally serviced  Ugashik when  the fleet is  present, said                                                               
the company  does expect to be  able to handle the  run, based on                                                               
the current capacity study.  She said:                                                                                          
                                                                                                                                
     There is  a lot  of risk  and down  side, when  we talk                                                                    
     about  bringing in  foreign floaters.    The number  of                                                                    
     processors, in  Bristol Bay, is  not limited.   Anybody                                                                    
     that wants  to process  can come in  there with  a U.S.                                                                    
     hull and process.  My  main concern, when we talk about                                                                    
     bringing  in foreign  processors, is  the risk  that we                                                                    
     take to the Alaska brand, and  the risk that we take to                                                                    
     people who  have invested millions  of dollars  in that                                                                    
     region.                                                                                                                    
                                                                                                                                
CHAIR SEATON  noted that nothing  is being promoted  through this                                                               
discussion,  however, the  ramifications  of  a large,  damaging,                                                               
over escapement needs to be considered.                                                                                         
                                                                                                                                
10:03:39 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE LEDOUX inquired if  a capacity survey is conducted                                                               
each year.                                                                                                                      
                                                                                                                                
MS.  NOROSZ responded  this year  one was  specifically requested                                                               
for Bristol  Bay, but, to  her knowledge, the department  did not                                                               
conducted a statewide survey.                                                                                                   
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  whether  there is  a precedent  for                                                               
foreign processors being brought in for a fishery.                                                                              
                                                                                                                                
MS.  NOROSZ answered,  yes, certain  fisheries, such  as herring,                                                               
have  been tended  by foreign  vessels.   However, she  stressed,                                                               
this is not about competition, but leveling the playing field.                                                                  
                                                                                                                                
CHAIR SEATON  suggested that another  facet is the  Alaska buy-in                                                               
for a quality product, and  he speculated on whether that control                                                               
could be established, by the state, on a foreign based vessel.                                                                  
                                                                                                                                
MR.  SAMUELSON clarified  that he  advocates bringing  in foreign                                                               
processors   for    custom   processing   only,    and   imposing                                                               
specifications that  would protect the Alaska  brand.  Currently,                                                               
much of the product is shipped to China for processing.                                                                         
                                                                                                                                
10:06:12 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON  requested suggestions  continue to be  submitted to                                                               
the committee.  Additionally, he  pointed out that the board made                                                               
some changes  in 2007,  allowing ADF&G  to adjust  regulations in                                                               
order to address  over escapement in some areas;  included in the                                                               
ADF&G report.                                                                                                                   
                                                                                                                                
10:07:13 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special Committee  on Fisheries*  meeting was adjourned  at 10:07                                                               
a.m.                                                                                                                            
                                                                                                                                

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