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Longline Catcher Processor (CP) Subsector of the Bering Sea and Aleutian Islands (BSAI) Non-Pollock Groundfish Fishery Buyback Program

Congress authorized (FY 2005 Appropriations Act – Public Law 108-447 and 108-199) up to $75 million to finance fishing capacity reduction programs within the Alaska non-pollock fisheries.  This program allocated a $36 million portion to permanently remove 3 fishing vessels and 12 fishing licenses and permits from the longline catcher processor subsector.

All long-line catcher processors harvesting non-pollock groundfish (“fish sellers”) are required to pay the fee and all parties making the first ex-vessel purchase of the non-pollock groundfish (“fish buyers”) are required to collect the fee, account for and forward the fee revenue for the purpose of repaying the loan.  Since this industry subsector is comprised of catcher-processors, the members are deemed to be both the fish sellers and fish buyers.

The established fee is based on a $/lb basis, provided the total fees collected do not exceed five percent (5%) of the average ex-vessel production value.  The fee amount is calculated on an annual basis: the principal and interest amount due over the preceding twelve months, divided by the metric tons of pacific cod allocated to the long-line catcher processors multiplied by 2,205 .  The original fee was assessed at $0.02 per pound caught with payment and collection beginning on October 24, 2007.  NMFS has subsequently determined the fee rate was generating more than necessary to service the 30-year loan thus has been reduced on multiple occasions, currently to $0.0111 per pound effective January 1, 2013.  The interest rate is fixed at 6.84%.

On September 24, 2012, NMFS published a final rule to implement a second fishing capacity reduction program and an industry
fee system to repay a $2.7 million loan for a single latent permit within the Longline Catcher Processor Subsector of the Bering Sea and Aleutian Islands (BSAI) non-pollock groundfish fishery.  In November 2012, NMFS conducted a referendum to determine the industry’s willingness to repay a fishing capacity reduction loan to purchase the permit identified in the reduction plan.  All 32 of the votes timely received approved the fees.  NMFS tendered the reduction payment on December 18, 2012, and fee collection on this second loan began January 1, 2013.

Please see the links below for more information and visit Pay.gov to submit fee collection payments.

Click here for a summary of loan balances.

 

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Contact:
Elaine Saiz
(301) 427-8752
Michael A. Sturtevant
(301) 427-8799
Financial Services Division (F/MB5)
Office of Management and Budget
NMFS, NOAA
1315 East West Highway
Silver Spring, MD 20910