0516 ss ren 020708

SUPPORTING STATEMENT
ALASKA REGION BERING SEA and ALEUTIAN ISLANDS CRAB ARBITRATION
OMB CONTROL NO.: 0648-0516

INTRODUCTION
In January 2004, the U.S. Congress amended Section 313(j) of Magnuson-Stevens Act to
mandate the Secretary of Commerce to implement the Crab Rationalization Program for the
Bering Sea and Aleutian Islands Management Area (BSAI) crab fisheries. The Program
allocates BSAI crab resources among harvesters, processors, and coastal communities. The
North Pacific Fishery Management Council prepared, and National Marine Fisheries Service
(NMFS) approved, the Fishery Management Plan (FMP) for BSAI King and Tanner Crabs. The
FMP establishes criteria for the management of certain aspects of the BSAI crab fisheries by the
State of Alaska Department of Fish and Game (ADF&G). The FMP is implemented by
regulations at 50 CFR part 680.
This action is a request for renewal for this collection-of-information and addresses the binding
arbitration provisions of the BSAI Crab Rationalization Program (Program). In addition, the title
of the collection is changed from “Alaska Region Arbitration” to “Alaska Region Bering Sea and
Aleutian Islands Crab Arbitration”.
The Crab Rationalization Program (CR Program) components include quota share allocation,
processor quota share allocation, individual fishing quota (IFQ) and individual processing quota
(IPQ) issuance, quota transfers, use caps*, crab harvesting cooperatives, protections for Gulf of
Alaska groundfish fisheries, arbitration system, monitoring, economic data collection, and cost
recovery fee collection. Program details are found at:
http://www.alaskafisheries.noaa.gov/regs/680/default.htm.
A.

JUSTIFICATION

1. Explain the circumstances that make the collection of information necessary.
The CR Program: 1) addresses conservation and management issues associated with the previous
“crab derby” fisheries, 2) reduces bycatch and associated discard mortality, and 3) increases the
safety of crab fishermen by ending the race for fish. The Arbitration System is established by the
contracts required by § 680.20, including the process by which the Market Report and NonBinding Price Formula are produced, the negotiation approaches, the Binding Arbitration
process, and fee collection.
*Use caps limit the amount of rockfish quota share and cooperative quota of primary rockfish species that may be held or used by
an eligible rockfish harvester, and the amount of primary rockfish species total allowable catch that may be received by an
eligible rockfish processor.

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2. Explain how, by whom, how frequently, and for what purpose the information will be
used. If the information collected will be disseminated to the public or used to support
information that will be disseminated to the public, then explain how the collection
complies with all applicable Information Quality Guidelines.
The CR Program was implemented both to maintain rigorous safeguards on use of fishing
privileges for a public resource and to provide safeguards for program constituents.
The Arbitration System commences preseason when the Arbitration quota share (QS) Arbitration
Organizations and the processing quota share (PQS) Arbitration Organizations nominate persons
for the positions of Market Analyst, Formula Arbitrator, and Contract Arbitrators. The PQS and
QS holders, who are members of their respective Arbitration Organizations, then choose, by
mutual agreement, the persons for these positions.
To ensure fair price negotiations, the Arbitration System includes a provision for open
negotiations among individual processing quota (IPQ) and individual fishing quota (IFQ) holders
as well as various negotiation approaches, including:
♦ a share matching approach in which IPQ holders make known, to unaffiliated holders
with uncommitted IFQ available, the amount of uncommitted IPQ they have available.
This is done so the IFQ holder can match up its uncommitted IFQ by indicating intent to
deliver its catch to that IPQ holder;
♦ a lengthy season approach that allows parties to postpone binding arbitration until
sometime during the season; and
♦ a binding arbitration procedure to resolve price disputes between an IPQ holder and
eligible IFQ holders.
The Arbitration System is designed to alleviate many of the concerns arising from the parity of
supply and demand under the CR Program. If an IPQ holder or IFQ holder were unable to reach
an agreement on price during open negotiations, the negotiation approaches could be used by
certain participants to settle their disputes. This also encourages more efficient negotiations by
preventing indefinite stalemates.
The Arbitration System is designed to accommodate the varied interests of the parties involved
as well as reflect the historical negotiations between harvesters and processors. The Arbitration
System identifies the general structure of the system and the general principles that guide
oversight and management. It also identifies the roles and fundamental standards for: 1) the
Market Analyst in developing and producing a preseason Market Report for each fishery, 2) the
Formula Arbitrator in developing a single annual fleet-wide pricing formula (non-binding price
formula), 3) the Contract Arbitrators in making decisions, and 4) the last best offer binding
arbitration method as the arbitration procedure for participants.
The CR Program requires the Market Analyst, Formula Arbitrator and Contract Arbitrators, in
developing the non-binding price formula and deciding an individual arbitration, to consider:
♦ current pricing;
♦ consumer and wholesale product prices;
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♦ innovations and developments of the different sectors;
♦ efficiency and productivity of the different sectors;
♦ quality standards for each market;
♦ maintaining financially healthy and stable harvesting and processing sectors;
♦ safety;
♦ the timing and location of deliveries; and
♦ reasonable underages to avoid penalties for overharvesting IFQ and reasonable deadloss.
(Crab must be delivered live for the live/fresh market or for processing. Dead crab
deteriorates quickly and are unsuitable for human consumption. Crab that is harvested
live, but subsequently die prior to delivery to the processor or for dockside sales are
considered deadloss).
All catcher vessel owner (CVO) QS, Arbitration IFQ, Class A IFQ holders, catcher vessel crew
(CVC) QS holders – after June 30, 2008, and PQS and IPQ holders must enter the contracts as
prescribed by NMFS that establish the Arbitration System. Certain parts of the Arbitration
System are voluntary for some parties. All contract provisions are enforced by parties to those
contracts.
Any holder of uncommitted IFQ may negotiate with any holder of uncommitted IPQ, the price
and delivery terms for that season or for future seasons for any uncommitted IFQ and
uncommitted IPQ. Uncommitted IFQ holders and uncommitted IPQ holders may freely contact
each other and initiate open negotiations.
a. Market Report
The Market Report provides an analysis of the market for products of a specific fishery and shall
report on activities occurring within three months prior to its generation. Reported statistics shall
be based only on information for which there are at least five providers reporting data. No single
provider’s data may represent more than 25 percent of a weighted basis of that statistic. Data
must be sufficiently aggregated in the report such that it would not identify specific price
information by an individual provider.
The Market Analyst will provide the Market Report not later than 50 days prior to the first crab
fishing season for that crab QS fishery in that crab fishing year to: 1) each Arbitration
Organization in that fishery; 2) the NMFS Alaska Regional Administrator by electronic mail or
mail; 3) the Formula Arbitrator, and 4) any Contract Arbitrator(s) for the fishery.
The Market Report shall consider the following factors:
Current ex-vessel prices, including ex-vessel prices received for crab harvested under Class A IFQ, Class B
IFQ, and CVC IFQ permits;
Consumer and wholesale product prices for the processing sector and the participants in the arbitration
(recognizing the impact of sales to affiliates on wholesale pricing);

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Innovations and developments of the harvesting and processing sectors and the participants in the arbitration
(including new product forms);
Efficiency and productivity of the harvesting and processing sectors (recognizing the limitations on efficiency
and productivity arising out of the management program structure);
Quality (including quality standards of markets served by the fishery and recognizing the influence of harvest
strategies on the quality of landings);
The interest of maintaining financially healthy and stable harvesting and processing sectors;
Safety and expenditures for ensuring adequate safety;
Timing and location of deliveries; and
The cost of harvesting and processing less than the full IFQ or IPQ allocation (underages) to avoid penalties for
overharvesting IFQ and a mechanism for reasonably accounting for deadloss.
Market Report, Respondent
Number of respondents
Total annual responses
Responses per respondent = 1
Total burden hours (8 x 40)
Hours per response = 40 hr
Total personnel cost ($25 x 320)
Total miscellaneous cost
Postage ($6 x 8)
Market Report, Federal Government
Total responses
Total burden hours (8 x .25)
Total personnel costs (2 x $25)
Total miscellaneous costs

8
8
320 hr
$8,000
$48

8
2 hr
$50
0

b. Annual Arbitration Organization report
An Arbitration Organization must be formed to select and contract a Market Analyst, Formula
Arbitrator, Contract Arbitrator(s), and establish the Arbitration System, including the payment of
costs of arbitration for each crab QS fishery. The members of each Arbitration Organization
must enter into a contract that specifies the terms and conditions of participation in the
organization. The following persons are the only persons eligible to join an Arbitration
Organization:
Holders of CVO and CVC QS,
Holders of PQS,
Holders of Arbitration IFQ,
Holders of Class A IFQ affiliated with a PQS or IPQ holder, and
Holders of IPQ.
Each Arbitration Organization must submit a complete Annual Arbitration Organization Report
to NMFS by email or by mail addressed to the Regional Administrator, NMFS, Post Office Box
21668, Juneau, Alaska, 99802
If members are QS or PQS holders, the Arbitration Organization Report must be
submitted by May 1 of each subsequent year for the crab fishing year beginning on July 1 of that
year.
If members are IFQ or IPQ holders, the Arbitration Organization Report must be
submitted no later than 15 days after the issuance of IFQ and IPQ for that crab QS fishery.
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Annual Arbitration Organization report
A copy of the business license of the Arbitration Organization;
A statement identifying the members of the organization and the amount of Arbitration QS and Arbitration IFQ,
Non-Arbitration QS and Non-Arbitration IFQ, or PQS and IPQ held by each member and represented by
that Arbitration Organization;
QS, PQS, IFQ, and IPQ ownership information on the members of the organization;
Management organization information, including:
The bylaws of the Arbitration Organization;
A list of key personnel of the management organization including, but not limited to, the board of directors,
officers, representatives, and any managers;
The name of the Arbitration Organization, permanent business mailing addresses, name of contact persons and
additional contact information of the managing personnel for the Arbitration Organization, resumes of
management personnel; and
A copy of all minutes of any meeting held by the Arbitration Organization or any members of the Arbitration
Organization.
Annual Arbitration Organization report, Respondent
Number of respondents
Total annual responses
Frequency of response = 1
Total burden hours (10 x 4)
Time per response = 4 hr
Total personnel cost ($25 x 40)
Total miscellaneous cost
Postage ($6 x 10 = $60)
Annual Arbitration Organization report, Federal Government
Total responses
Total burden hours (4 x 10)
Total personnel costs ($25 x 40)
Total miscellaneous costs

10
10
40 hr
$1,000
$60

10
40 hr
$1000
0

c. Arbitration Organization Miscellaneous Reporting
The Arbitration Organization must provide to each of its members a copy of the contracts for the
Market Analyst, Formula Arbitrator, and Contract Arbitrator for each fishery in which the
member participates.
Arbitration Organizations must deliver to NMFS any data, information, and documents
generated pursuant to § 680.20. In addition, in the case of a PQS/IPQ Arbitration
Organization(s), contracts with its members must have a provision that requires the Arbitration
Organization to:
♦ Provide for the delivery of the names of and contact information for its members who
hold uncommitted IPQ, identifying the regional designations and amounts of such
uncommitted IPQ, to any persons that hold uncommitted Arbitration IFQ, prohibiting the
disclosure of any information received under this provision to any person except those
holders of uncommitted Arbitration IFQ. The provision will require that information
concerning uncommitted IPQ be updated within 24 hours of a change of any such
information, including any commitment of IPQ and that information is provided to those
persons that hold uncommitted Arbitration IFQ. This provision may include a
mechanism to provide information to uncommitted Arbitration IFQ holders through a
secure website, or through other electronic means;
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♦ Arrange for the delivery to all holders of uncommitted Arbitration IFQ the terms of a
decision of a Contract Arbitrator in a Binding Arbitration proceeding involving a member
that holds uncommitted IPQ within 24 hours of notice of that decision. This provision
may include a mechanism to provide information to uncommitted Arbitration IFQ
holders through a secure website, or through other electronic means; and
♦ Provide information concerning such uncommitted IPQ as necessary for the Arbitration
Organization to comply with this paragraph and prohibits the disclosure of any such
information by a member to any person, except as directed therein.
In addition, not later than June 1 for that crab fishing year, the arbitration organizations
representing the holders of Arbitration QS and PQS in each fishery shall notify NMFS of the
persons selected as the Market Analyst, Formula Arbitrator, and Contract Arbitrator(s) for the
fishery by electronic mail or by mail addressed to the Alaska Regional Administrator. The
arbitration organizations shall include a list of arbitration organizations that mutually agreed to
the selection of the Market Analyst, Formula Arbitrator, and Contract Arbitrator(s) and
signatures of representatives of those arbitration organizations and a copy of the contract with
Market Analyst, the Formula Arbitrator, and each Contract Arbitrator. The notification must
include a curriculum vitae and other relevant biographical material for each of these individuals.
Arbitration Organization Miscellaneous Reporting, Respondent
Number of respondents
Total annual responses
Frequency of response = 4
Total burden hours (10 x 4)
Time per response = 1 hr
Total personnel cost ($25 x 40)
Total miscellaneous cost
Postage ($2.05 x 40 = $82)
Photocopy of contracts ($100 x 50 members = $5000))
Arbitration Organization Miscellaneous Reporting, Federal Government
Total responses
Total burden hours (1 x 40)
Total personnel costs ($25 x 40)
Total miscellaneous costs

10
40
40 hr
$1,000
$5,082

40
40 hr
$1,000
0

d. Non-Binding Price Formula Report.
The Formula Arbitrator may request any relevant information from QS, PQS, IPQ, and IFQ
holders in the fishery, but the Formula Arbitrator shall not have subpoena power. The Formula
Arbitrator may obtain information from persons other than QS, PQS, IPQ, and IFQ holders in the
fishery, if those persons agree to provide such data. Any information that is provided must be
based on activities occurring more than three months prior to the date of submission to the
Formula Arbitrator.
The Formula Arbitrator shall keep confidential the information that is not publicly available and
not disclose the identity of the persons providing specific information. To facilitate the gathering
of information, the Formula Arbitrator shall be permitted to meet with IFQ permit holders who
are members of any single Fishermen’s Collective Marketing Act (FCMA), 15 U.S.C. 521)
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cooperative collectively, but shall meet with IPQ permit holders individually and shall meet with
distinct FCMA cooperatives individually.
The contract with the Formula Arbitrator must specify that the Formula Arbitrator will provide
the non-binding price formula not later than 50 days prior to the first crab fishing season for that
crab QS fishery in that crab fishing year to: 1) each Arbitration Organization in that fishery; 2)
the NMFS Alaska Regional Administrator by electronic mail or mail; 3) the Market Analyst, and
4) all Contract Arbitrators in the fishery.
Non-binding Price Formula Report, Respondent
Number of respondents
Total annual responses
Responses per respondent = 8
Total burden hours (8 x 40)
Hours per response = 40 hr
Total personnel costs ($25 x 320)
Total miscellaneous costs (report by electronic file: 0.50 x 8)
Non-binding Price Formula Arbitration Report, Federal Government
Total responses
Total burden hours (0.25 x 8)
Total personnel costs (2 x 25)
Total miscellaneous costs

1
8
320 hr
$8,000
$4

8
2 hr
$50
0

e. Establish Price for Arbitration Negotiations
The contract with the Contract Arbitrator must specify that the Contract Arbitrator provide
NMFS with:
A copy of any minutes from any meeting attended by that Contract Arbitrator between or
among any PQS or IPQ holders concerning any negotiations under § 680.20;
Any last-best offers made during the Binding Arbitration process, including all contract
details, the names of other participants in the arbitration, and whether the bid was accepted by
the Contract Arbitrator; and
A copy of any information, data, or documents given by the Contract Arbitrator to any
person who is not a party to the particular arbitration for which that information was provided.
The Contract Arbitrator must identify the arbitration to which those information, data, or
documents apply, and the person to whom those information, data, or documents were provided.
The Contract Arbitrator must provide any information, documents, or data required under this
paragraph to the NMFS Alaska Regional Administrator via electronic mail or mail no later than
30 days prior to the end of the crab fishing year for which the open negotiation or arbitration
applied.
Establish Price for arbitration negotiations, Respondent
Number of respondents
Total annual responses
Responses per respondent = 1
Total burden hours (22.5)
Hours per response = 0.75 hr
Total personnel costs ($25 x 23)
Total miscellaneous costs (Postage $6 x 30)

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30
30
23 hr
$575
$180

Establish Price for arbitration negotiations, Federal Government
Total responses
Total burden hours (0.25 hr x 30)
Total personnel costs (8 x $25)
Total miscellaneous costs

30
8 hr
$200
0

Focused Outreach Campaign
Office of Management and Budget (OMB) stipulated that the renewal request for this and two
other collections include a "focused outreach campaign" to validate burden estimates and elicit
suggestions from the regulated community for reducing the burden. The information collections
are: Crab Permit Applications; Crab Economic Data Reports (EDR); and Crab Arbitration.
Comments were required to be submitted by November 1, 2007, through the Alaska Region's
website at: http://www.fakr.noaa.gov/sustainablefisheries/crab/rat/pra.
A postcard was sent to all crab permit holders announcing NMFS’ request for comments and
indicating the web address for entering comments. In addition, an information bulletin was
posted on the NMFS Alaska Region web site soliciting response to the online questionnaire. The
information bulletin No. 90 is provided in Appendix A.
The online questionnaire was posted at
http://www.fakr.noaa.gov/sustainablefisheries/crab/rat/pra
and stated:
______________________________________________________________________________
BSAI Crab Rationalization Program Information Collection
Public Comment Period

NMFS invites the pubic to comment on three of the BSAI Crab Rationalization Program's information collection
systems. Comments must be submitted by November 1, 2007, and will be accepted through the following forms.
Please click on the form that is most applicable:
Comment Forms on:
Crab Permit Applications
Crab Arbitration
Crab Economic Data Reports
The agency is seeking comments on (a) whether the three information collection systems are necessary and whether
the information has practical utility; (b) the accuracy of the agency's estimates on the burden of collecting the
information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to
minimize the burden of collecting the information from respondents.
For more information, contact Patsy Bearden, NMFS Resource Management Specialist, at 907-586-7008, or email:
[email protected].
Related Information
72 FR 50937, September 5, 2007. Notice of proposed information collection on the Alaska Region BSAI Crab
Permits and Crab Economic Data Reports. Comment period through November 5, 2007.

_____________________________________________________________________________
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When the public clicked on “Crab Arbitration,” they were transferred to the specific
questionnaire which is provided as Appendix B.
NMFS received no public comment for this collection.
It is anticipated that the information collected will be disseminated to the public or used to
support publicly disseminated information. As explained in the preceding paragraphs, the
information gathered has utility. NMFS will retain control over the information and safeguard it
from improper access, modification, and destruction, consistent with National Oceanic and
Atmospheric Administration (NOAA) standards for confidentiality, privacy, and electronic
information. See response #10 of this Supporting Statement for more information on
confidentiality and privacy. The information collection is designed to yield data that meet all
applicable information quality guidelines. Prior to dissemination, the information will be
subjected to quality control measures and a pre-dissemination review pursuant to Section 515 of
Public Law 106-554.
3. Describe whether, and to what extent, the collection of information involves the use of
automated, electronic, mechanical, or other technological techniques or other forms of
information technology.
This action addresses mainly the submittal of copies to NMFS and members, which would be
through the U.S. mail or delivered by courier. Where possible, copies may be submitted as an
attachment to e-mail.
4. Describe efforts to identify duplication.
None of the information collected as part of this information collection duplicates other
collections. This information collection is part of a specialized and technical program that is not
like any other.
5. If the collection of information involves small businesses or other small entities, describe
the methods used to minimize burden.
The collection-of-information does not impose a significant impact on small entities.
6. Describe the consequences to the Federal program or policy activities if the collection is
not conducted or is conducted less frequently.
The intent of this action is to develop an arbitration system. Without the collection of specified
information described in this Supporting Statement, the CR Program would be jeopardized. The
consequences of not collecting this information would be that NMFS could not fulfill the intent
of the law created under Pub. L. No. 108-199. This law also requires that each component of the
CR Program enacted by Congress must be implemented or the whole program must be
withdrawn. Thus, disapproval of this data collection program would threaten all components of
P.L. No. 108-199.

9

7. Explain any special circumstances that require the collection to be conducted in a
manner inconsistent with OMB guidelines.
No special circumstances exist.
8. Provide a copy of the PRA Federal Register notice that solicited public comments on the
information collection prior to this submission. Summarize the public comments received
in response to that notice and describe the actions taken by the agency in response to those
comments. Describe the efforts to consult with persons outside the agency to obtain their
views on the availability of data, frequency of collection, the clarity of instructions and
recordkeeping, disclosure, or reporting format (if any), and on the data elements to be
recorded, disclosed, or reported.
A Federal Register notice, 72 FR 50936 published September 5, 2007, solicited public comment,
and no comments were received.
9. Explain any decisions to provide payments or gifts to respondents, other than
remuneration of contractors or grantees.
No payment or gift will be provided under this program.
10. Describe any assurance of confidentiality provided to respondents and the basis for
assurance in statute, regulation, or agency policy.
The information collected is confidential under section 302(i) of the Magnuson-Stevens Act (16
U.S.C. 1852 et seq.) and under NOAA Administrative Order (AO) 216-100, which sets forth
procedures to protect confidentiality of fishery statistics.
11. Provide additional justification for any questions of a sensitive nature, such as sexual
behavior and attitudes, religious beliefs, and other matters that are commonly considered
private.
This information collection does not involve information of a sensitive nature.
12. Provide an estimate in hours of the burden of the collection of information.
Estimated total respondents: 49. Estimated total responses: 96. Estimated total burden: 743 hr.
Estimated total personnel costs at $25 per hour is $18,575.
13. Provide an estimate of the total annual cost burden to the respondents or recordkeepers resulting from the collection (excluding the value of the burden hours in #12
above).
Estimated total miscellaneous costs: $5,374.
14. Provide estimates of annualized cost to the Federal government.
Estimated total burden: 92 hr. Estimated total personnel costs: $2,300.
10

15. Explain the reasons for any program changes or adjustments reported in Items 13 or
14 of the OMB 83-I.
There was an adjustment: one hour was added due to correction of a previous error of rounding
down instead of up. Cost in ROCIS appears to have increased due to system's previous rounding.
16. For collections whose results will be published, outline the plans for tabulation and
publication.
The results of this collection-of-information will not be published.
17. If seeking approval to not display the expiration date for OMB approval of the
information collection, explain the reasons why display would be inappropriate.
There are no forms used in connection with this collection.
18. Explain each exception to the certification statement identified in Item 19 of the
OMB 83-I.
There are no forms used in connection with this collection.

B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
This collection does not employ statistical methods.

11

APPENDIX A
Information Bulletin 07-90
Sustainable Fisheries Division
907-586-7228

September 11, 2007
10:30 a.m.

NMFS Alaska Region Seeks Comments on BSAI Crab Rationalization Program Information
Collections
The Alaska Region is soliciting public comments on three information collections associated
with the Crab Rationalization Program (Program) according to Robert D. Mecum, Acting
Administrator, Alaska Region, NMFS.
The information collections are: Crab Permits; Crab Economic Data Reports (EDR); and Crab
Arbitration. Comments must be submitted by November 1, 2007, and will be accepted through
the Alaska Region's website at: http://www.fakr.noaa.gov/sustainablefisheries/crab/rat/pra.
The Crab Permits collection includes permit applications, transfer applications, and a form and
an online site for payment of Program fees. The EDR collection includes forms and an online
site requesting information on the economic impacts of the Program. The Arbitration collection
is designed to accommodate the varied interests of the parties involved as well as reflect the
historical negotiations between harvesters and processors.
The Region is seeking comments on:
♦ whether the information collections are necessary and whether the information has
practical utility;
♦ the accuracy of the agency's estimates on the burden of collecting the information;
♦ ways to enhance the quality, utility, and clarity of the information collected; and
♦ ways to minimize the burden of collecting the information from respondents.
For more information, contact Patsy A. Bearden at 907-586-7008, or email
[email protected].

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APPENDIX B

Crab Arbitration Comment Form
Please let us know:

•
•
•
•

whether the Crab Arbitration information collection system is necessary and whether the information has
practical utility
the accuracy of the agency's estimates on the burden of collecting the information
ways to enhance the quality, utility, and clarity of the information collected
ways to minimize the burden of collecting the information from respondents

Call Patsy Bearden if you have any questions: (907) 586-7008. Thank you.

Contact Information
Name (required)

Email Address (optional)

Phone (optional)

1. Are any elements of the binding arbitration process not working? If so, please explain why not?

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2. Please provide any additional comments you have on any aspect of the crab arbitration process.

14

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OMB Control No.: 0648-0516
Expiration Date: 02/29/2008

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