Legislature(2013 - 2014)BUTROVICH 205
03/04/2013 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SJR10 | |
| SB54 | |
| HB36 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SJR 10 | TELECONFERENCED | |
| *+ | SB 54 | TELECONFERENCED | |
| + | HB 36 | TELECONFERENCED | |
SB 54-EXTEND HAIR CRAB & SCALLOP LIMITED ENTRY
3:43:09 PM
CHAIR GIESSEL announced SB 54 to be up for consideration.
3:43:50 PM
CORA CAMPBELL, Commissioner, Alaska Department of Fish and Game
(ADF&G), Juneau, AK, supported SB 54. She explained that the
state manages most aspects of the crab and scallop fisheries in
both state and federal waters under an agreement with the
federal government and this bill would extend the Weathervane
Scallop and Bering Sea Hair Crab based limited entry program for
another 10 years. Focusing on the sustainability and
conservation aspects of the program, she explained that the
vessel-based program was born out of a need to ensure the
sustainability of those two fishery resources. Originally, a
conventional limited entry program was examined where permits
are awarded to individuals, but it was inadequate for protecting
the economic health and stability of these two fisheries and
promoting sustained yield of the resource. To address these
concerns, a vessel-based limited entry program was brought
forward to the legislature and enabling legislation was passed
in 2002 and that was extended in 2008.
She said these are the only two vessel-based limited entry
programs in Alaska due to the unique nature of these fisheries
and during the time that the program has been in place, it has
worked well. The scallop limited entry program has provided an
economically viable fishery and a sustainable fishery, which is
what is most important to the department. The Hair Crab limited
entry program is currently closed, but it remains in place so
that if and when the fishery reopens she would have the ability
to limit participation to ensure that fishery's continued
sustainability.
3:46:33 PM
SENATOR MICCICHE said he is a limited entry permit holder and
the transmittal letter warns about dire consequences that hadn't
take place. He also understood that the intent of the
constitution to not encourage corporate ownership of permits and
asked what would protect other fisheries from being added to
this type of program in the future.
COMMISSIONER CAMPBELL said this legislation specifically
authorizes a vessel-based system for these two fisheries for
particular reasons. So, it's not currently something that is
authorized for other fisheries and for policy reasons it is very
unlikely that it will be extended to other fisheries. However,
with scallop fisheries you are talking about a fishery that is a
dredging operation that is hard on bottom gear. So, a big part
of the reason they looked at wanting to come up with a limited
entry system that would effectively limit participation in this
fishery is because they have an interest in seeing those
resources harvested efficiently by an appropriate number of
vessels and not necessarily allowing for unlimited expansion of
the number of participating vessels.
3:48:34 PM
That is in contrast with some other limited entry programs like
salmon where the desire of the state is to reduce barriers to
entry and to make opportunity available to Alaskans that want to
participate in those fisheries.
SENATOR MICCICHE asked if he wanted to enter the Weathervane
Scallop fishery would he have an opportunity to buy one of the
vessels or has it become difficult because of the corporate
nature of the permit system.
COMMISISONER CAMPBELL said the permits and the vessels are
available for transfer and some have transferred since the
beginning of the program. The scallop beds are on both state and
federal sides of the boundary and the scallop fishery is also
limited on the federal side. The state program is complimentary
to a federal program that also limits entry in federal waters
and most of the fishing activity takes place across those
boundaries. So, there would be a need to buy into both programs
if you wanted to have full access to the beds.
3:50:01 PM
BEN BROWN, Commissioner, Commercial Fisheries Entry Commission
(CFEC), Juneau, AK, said the first bill for the Weathervane
Scallop fishery passed in 1997 unanimously; there wasn't very
much controversy about vessel-based limitation at that time.
That bill, House Bill 141, didn't create the vessel-based
limited system, but it envisioned its creation at the same time
the legislature put a moratorium on the entry of any new vessels
into the fishery. The reason for that was dire concern about
over-fishing. The dredges are not easy on the sea floor and
there are by-catch problems with some important crab species
that migrate through the scallop beds. The moratorium was
established unanimously by the legislature to give time to
figure out a way to manage it. Several years later, after the
National Marine Fisheries Service (NMFS) imposed a federal
scallop license limitation program, this legislature chose to
pass legislation that gave the CFEC the tool of vessel-based
limited entry.
Returning to Senator Micciche's question, Commissioner Campbell
said there can't really be a slippery slope because the
legislature would have to change the statute to allow vessel-
based limited entry for any other fishery. And even if the CFEC
commissioners wanted to do it, they would be powerless to do so
without legislative action. But they have absolutely no interest
in vessel-based limited entry for any other fisheries; it's just
not required given the biological or economic characteristics of
any other fishery.
3:52:33 PM
SENATOR MICCICHE said he had constituents from the fish trap
days who are concerned for their own fisheries and thanked him
for his answers.
MR. BROWN said bad fishing practices were going on back in the
90s, and the moratorium was driven by the collapse of the
scallop fishery in New England when some of those boats came
around and decided to fish in Alaskan waters. They were able to
do so until the moratoria in the state and federal waters were
put into place. That froze things in time, but it didn't answer
the long term question of how to issue these permits.
The impediments to the fishery are financial as much as anything
else; these are pretty large boats that require significant
numbers of crew and operate 24/7 a lot of the time. There are
some pretty stringent fisheries management plan provisions:
onboard observer coverage, an inability to use mechanical
shuckers and other measures to make sure the fishing capacity
won't overwhelm the resource. When the bill passed in 2002, it
didn't have a sunset like all the rest of the limited entry
programs; it would have existed in perpetuity but for a five-
year sunset that was put into place on the Senate floor at the
end of the process. When it came up for review five years ago, a
bill to extend it didn't pass, so that provision was attached to
another bill. So, they are now looking at a sunset at the end of
2013.
3:55:04 PM
MR. BROWN said the CFEC has a number of concerns, because of the
likelihood that reversion to open access would require the
managers to shut the fishery down on the state waters side and
the remaining fishing would probably be shut down permanently in
a short amount of time. They don't know what the feds would do,
but it would upend the existing delegated management regime,
because it would be somewhat anomalous to have the state
managing the fishery in federal waters if the fishery wasn't
being managed in state waters.
He summarized that they believe the program is working well and
that those who hold the permits obtained them in a manner
entirely consistent with the vessel-based limited entry
provisions that were created in 2002 and some of those permits
have transferred hands. They are fished and held in conjunction
with the federal permits.
MR. BROWN said they can't speak to much of the legalities on the
federal side of the line, but he could say that everything that
is happening on the state waters side is legal and
constitutional. If anyone really thought this program was too
exclusive and violated the Alaska Constitution he, as an
attorney, thought someone would have already litigated it. Or
maybe it was just too expensive, but even if one were brought he
was confident that Alaska Supreme Court would say no. It is not
too exclusive and it is serving the biological and conservation
purposes of the Limited Entry Act; and it's allowing fishermen
who are depending on the economic return on the resource to make
a living. He said they would hear from members both in and out
of the cooperative. Of the initial number of permits issued,
five are now active; three are being fished in the cooperative
and two are independent.
3:57:42 PM
CHAIR GIESSEL opened public testimony.
JIM STONE, Alaska Scallop Association, supported SB 54, and said
he is a partner/manager of three scallop vessels. He introduced
Glen Michelson, partner who had been fishing for 30-plus years,
John LaMar from Kodiak who had fished for 35 years, Erik
Neighammer who also had fished for 35 years, and Shirley, the
wife of Tom Mineo, captain of the Provider who was sick, Bobby
Mineo, and Mona Stone, his wife who does the marketing.
MR. STONE said he is a 35-year fisherman and fished Alaska crab,
cod, scallops and salmon. He is currently the manager of three
of the scallop vessels and the guy in charge of scallop sales.
All three catcher freezer boats are home-ported in Kodiak. There
are six partners, each one essentially owning half of a boat.
These boats average about 100 feet in length and are quite
expensive to own and operate. They fish with 12 crewmen and must
carry required observers at a cost of almost $400/day, which is
going up soon. They burn 600 gallons of fuel/day that is about
19 percent in June; insurance has gone up by 42 percent this
year. None of them can afford to own a boat by themselves and
financially it makes sense for them to all work together.
They have done their due diligence to ensure that their
ownership violates neither state nor federal rules. Conservation
measures have forced this fishery from about 1.2 million pounds
in the 90s to only about 400,000 pounds today. They applaud the
fishery manager's stance on the side of precaution and in the
name of sustainability.
4:01:12 PM
He said they are given very small crab by-catch amounts and must
work together to avoid roving schools of crab. They are happy to
report that the conservation record of ADF&G's management of the
scallop fishery has not gone unnoticed. They have lobbied for
many years with the Monterey Bay Aquarium Seafood Watch Program
to rate Alaska Weathervane Scallops. Such a small fishery is not
normally on their radar and has been un-rated by any third
parties. When selling to the high end consumers and chefs these
ratings are increasingly important.
With the help of ADF&G, University of Alaska and National Marine
Fisheries in Anchorage, they have been able to prove their
stance as a sustainable fishery in Seafood Watch's eyes as best
alternative and have been invited to attend their cooking
solutions in May for a three-day event where they will be
afforded a golden opportunity to introduce Alaska Weathervane
Scallops to hundreds of world-famous chefs. As a result of
working together they have been able to get out to the culinary
world and market themselves and have participated with seafood
and fisheries events all over the state and up and down the West
Coast, and recently in Vancouver, B.C. They frequently work
side-by-side with the Alaska Seafood Marketing Institute (ASMI)
and are pushing the Alaska brand name with them.
He said currently open scallop beds are 100 percent in federal
waters with a couple of exceptions: one is in Shelikof Strait
and the other off of Yakutat where small pieces of the three
mile line go through the bed. So, about 10-20 percent of the
total scallop catch comes out of state waters and the remainder
out of federal waters. As a bit of historical perspective, they
got in the position of needing legislative help in 1995 when a
vessel from the East Coast found a loop hole in the regulations
and was able to go out into the federal waters and fish
scallops. ADF&G couldn't do anything and neither could NMFS. So
they fished on and off for several months until NMFS found a way
to stop them and then they left the state to never return. In
1996, as a result of this, the entire fishery was shut down,
both federal and state, for an entire year. It was obviously
devastating to the local fishermen. Department of Fish and Game
(ADF&G) has made it clear that if the vessel limited entry
program is not extended and it returns to open access that they
will not be able to manage the fishery.
He referred them to the last two whereas provisions in the
United Fishermen of Alaska Resolution that pertains the most to
them.
CHAIR GIESSEL noted a letter in support of SB 54 from the North
Pacific Fisheries Management Council (NPFMC).
SENATOR BISHOP asked how he could stay in business with
insurance rates going up 42 percent a year. What is driving
that?
MR. STONE answered that he assumed it was claims in the fishing
industry; they are lumped in with other fisheries across the
country normally going to London for insurance. Right now no one
wants to insure fishing vessels; it's a difficult market. Their
brokers told them to hold and maybe they would see a reduction
next year.
4:07:15 PM
SENATOR MICCICHE asked how many other vessels are active in the
fleet beside his three.
MR. STONE answered that four vessels have been in the fleet over
the last few years: the Arctic Hunter, Ocean Hunter, Provider
and Kilkenny Another vessel is owned by Max Hulls, who hasn't
been fishing for four or five years.
4:08:02 PM
SENATOR MICCICHE said he bought his scallops regularly and they
were incredible and he thanked him for his comments.
JOHN LAMAR, vessel owner, said a vessel just sold to someone on
the East Coast. He thought they had been misled on the size of
the stocks. The total allowable catch is 1.5 million pounds, but
now they are catching 400,000 lbs.{ He wanted them to know it
was purchased and may come back into the fishery.
4:10:08 PM
ALEXUS KWACHKA, representing himself, Kodiak, AK, opposed SB 54.
When they started there were 11 boats; now there are four only
two of which are fishing in state waters. And it is a monopoly
on the federal side. One of the beauties of the state fisheries
is that you have to be an owner/operator and he didn't like the
vessel-based limited entry system for the reason. Being an
active participant is key. He said they are looking at
rationalizing the Gulf for the trawl fisheries and he didn't
want to see this ever slide into another fishery. The 10 years
is inappropriate and if this goes forward a five-year sunset is
more appropriate in terms of fixing it if it's wrong.
4:12:18 PM
CHAIR GIESSEL said he alluded to shortening the sunset to five
years and asked what they had gotten wrong so far.
MR. KWACHKA said he was concerned about the participation in the
state waters even though it's a small portion. Basically, a
group of people has gotten together and consolidated and setting
the precedent of a lack of potential opportunity by the monopoly
on the federal side things because they hold the LLPs on that
side, too. The idea is to have more opportunity and it's a cost
prohibitive fishery to get into.
4:13:27 PM
BRENDEN HARRINGTON, representing F/V Kilkenny, Kodiak, AK,
supported SB 54, He said the Kilkenny is the one independent
scallop boat. He is a life-long Alaska resident and a life-long
fisherman as well. He is 32 years old and been fishing out of
Kodiak since he was nine in a lot of different fisheries. In
2009, seeing the way things were going in the halibut fishery
they decided to diversify and bought one of the open scallop
permits and boat. They employ eight people and theirs is evenly
split between Kodiak and Homer residents.
He said the Weathervane fishery is small, but he was impressed
with the level of oversight the state had managed to put
together for the fishery and the degree of communication that
exists between the fishermen and the regulators as well as the
generally conservation-minded management of the fishery. He felt
confident about the management and the future help of the
scallop stock, which is a welcome feeling given the uncertain
sectors of fisheries up here, like halibut.
4:16:21 PM
Their biggest worry since making the investment in the scallop
fishery is the possibility of the expiration of the state
limited entry permit at the end of the year. He is part of the
new generation of fishermen who want to move away from boom/bust
mentality of the past into the future where they take a smarter
more sustainable approach to harvesting and husbanding the
resources.
The current management of the weathervane scallop fishery is a
good example of this new mentality of conservation and he feared
the consequences of allowing the vessel-based permitting system
to expire and open up the state waters to more boats, especially
since the current licensing system was in direct response to
irresponsible actors splitting loop holes in the previous
regulations in order to fish unsupervised and unregulated with
complete disregard for sustainability of the resource.
MR. HARRINGTON explained that they are different from the other
boats in that they take the majority of their scallops from
state waters, because only one other boat is fishing there. The
others are fishing in federal waters.
4:18:23 PM
HENRY MITCHELL, representing himself, Fisheries Consultant,
Coastal Villages Region Fund (CVQ group that owns numerous
vessels), supported SB 54 saying a number of their vessels are
the successors and interests through purchase of the vessels and
permits to participate in the Bering Sea Hair Crab fisheries. He
urged them to extend CFEC authority over the fishery so that
they may be able to participate in it at some time in the
future.
4:19:34 PM
STEVEN BRANSON, Crewman's Association, Kodiak, Alaska, opposed
SB 54. It seems like a continuation of a de facto privatization
of what should be a public resource. The state waters are a
state resource. Although Kilkenny hires a local crew, the rest
are not so state-minded. The Alaska Constitution said the
resources are for first and foremost for the people of Alaska.
He said he would love to go scallop fishing with his small boat
and dredge. If it must be extended, he urged them to do it for
less than 10 years. He said he supported adhering to the total
allowable catch, trip limits and gear restrictions; perhaps
using smaller dredges would do less damage and allow more people
to fish.
SENATOR DYSON asked if water conditions where they fish are such
that small boats are disadvantaged in tough weather.
MR. BRANSON said yes, but state waters are within three miles
and scallops are very prolific around Kodiak.
4:23:11 PM
SENATOR DYSON asked if many scallop boats fish other gear types
as well.
MR. BRANSON answered that the Arctic Hunter switched around a
little bit.
4:24:17 PM
SHIRLEY MINEO, representing Tom Mineo, Kodiak, Alaska, said he
had fished 33 years in the State of Alaska for scallops. He now
runs the Provider and is also part owner. It's a family business
them; his father started fishing in the late 60s, and her
daughter and son fish on the boat, as well. She stressed that it
is a small fishery and this needs to be kept in place to sustain
the fishery.
SENATOR FAIRCLOUGH said previous testimony indicated that they
were hiring people from out of state.
MS. MINEO said in her group, one gentleman lives in Oregon.
SENATOR FAIRCLOUGH asked if he had ever lived here.
MS. MINEO said Steven had been on their boat for just a few
years and had fished in other fisheries, but she didn't know
that he had been an Alaskan resident.
4:26:15 PM
MAX HULSE, representing himself and the whole Hulse Family,
Eagle River, AK, supported SB 54. He said they had been involved
in Alaska fisheries, primarily scallops, since 1979. They had
been Alaskan residents since 1966 and were issued both state and
federal scallop permits due to their historical participation.
The family started harvesting and packing scallops in 40 pound
bags in ice, marketing the fresh scallops to wholesale outlets
in the Anchorage area; more recently they flash froze them
onboard in 5 pound blocks and marketed them to both Anchorage
and Seattle. On the way, they built a small family-operated DEC-
approved processing plant at his home in Eagle River and have
shipped scallops for over 20 years to customers in a number of
states. He also sold scallops at a road-side site on the Glenn
Highway.
He said his son, Scott, first started fishing in Kodiak waters
and lower Cook Inlet. He was instrumental in starting the Cook
Inlet fishery for small boats using one six-foot dredge. His
1983 proposal to the Alaska Board of Fisheries was approved and
the Cook Inlet fishery was opened.
MR. HULSE said he hoped to reenter the fishery after finishing
vessel upgrades at the end of the summer. The boat is 79 feet
and mainly relies on harvesting scallops in state waters. He
said she has a crew of 10 and they are all from Alaska.
4:29:31 PM
GLEN MICHELSON, representing himself, Kodiak, AK, supported SB
54. He had fished in Alaska for 34 years; he had fished crab,
salmon, scallop and Pollock. His grandfather and father fished
Alaska before him and both of his sons fish in Bristol Bay; one
has a permit. Now he is a relief skipper on the boats and has
become a "port engineer" making sure the boats are properly
maintained. Since the installation of the Kodiak Boat Lift in
2009 they can do most of their repairs in Alaska, which helps
local businesses and saves them $25,000 to $30,000 in fuel and
two weeks of running time per boat.
Someone mentioned a monopoly, but there are two boats fishing
that are not affiliated. Last year they paid out $1.6 million in
crew share and spent $850,000 in Alaska in fuel, $480,000 in
repairs and maintenance, $135,000 in groceries and $200,000 in
supplies.
4:31:54 PM
SENATOR FAIRCLOUGH asked how the quota of 400,000 pounds is
spread between vessels.
MR. MICHELSON replied that they don't have individual quotas;
it's an Olympic style fishery.
MR. BROWN answered that "quota is bad word;" there is a "total
allowable catch." Because of the limited number of participants
in the fishery, it resembles something like a quota, but there
is no guaranteed amount. The biologists determine a sustainable
harvest amounts. Just a couple of weeks ago, the Scallop Plan
Team, a joint state and federal group, held an annual meeting in
Kodiak and prepared the Stock Assessment and Fishery Evaluation
(SAFE) report; it is all biologically driven in terms of what
they know were in any given bed and how much is being brought up
on the state or federal side.
4:33:35 PM
CHAIR GIESSEL closed public testimony and held SB 54 in
committee.