1997 SCOTIA-FUNDY OFFSHORE SCALLOP INTEGRATED FISHERIES MANAGEMENT PLAN MARITIMES REGION

Offshore Scallop
(Placopecten megellanicus )

TABLE OF CONTENTS

• I. OVERVIEW OF THE FISHERY
• • Participants
  • Location of Fishery
  • Timeframe of the Fishery
  • Landings/Value
  • Consultative Process
  • Management Style
• II. STOCK STATUS
• • Prospects for 1997
  • • Georges Bank
    • Browns Bank
    • German Bank
    • Eastern Scotian Shelf (Sable/Western Bank and Middle Ground)
    • St. Pierre Bank
• III. LONG-TERM OBJECTIVES FOR FISHERY
• IV. MANAGEMENT OBJECTIVES
• • Domestic Considerations
  • • Aboriginal
• V. CURRENT MANAGEMENT ISSUES
• • By-catch
• VI. MANAGEMENT MEASURES FOR 1997
• • Quota Allocations / Meat Counts / Fishing Seasons
  • Control and Monitoring of Fishing Activities
  • Other relevant elements to the 1997 Management Plan
  • • Licensing
    • Key Regulations
• VII. CONSERVATION & PROTECTION ISSUES AND STRATEGIES FOR 1997
• • Conservation Issues
  • Strategy
• VIII. INDUSTRY RESPONSIBILITIES
• IX. ENFORCEMENT PLAN

List of Appendices

Appendix 1 Map of Scallop Fishing Areas

Appendix 2 Offshore Scallop Advisory Committee Membership

and Terms of Reference

Appendix 3 Enterprise Allocation (EA) Document

Appendix 3(a) Administrative Guidelines for Enterprise Allocations in the Offshore Scallop Fishery

Appendix 4 1997 Interim Offshore Scallop Fishing Plan

Appendix 5 Offshore Scallop Enforcement Plan

1997 OFFSHORE SCALLOP FISHERY INTEGRATED FISHERIES MANAGEMENT PLAN

I. OVERVIEW OF THE FISHERY

Canadian participation in the offshore scallop fishery first began on Georges Bank in the mid-1940´s. In 1973, limited entry was introduced and the fishery restricted to 76 licences (vessels > 65´ LOA). In 1977, Canada declared a 200-mile fishing zone: the result was that Canadian access to Georges Bank was limited to a zone disputed by Canada and the United States. Competitive fishing by both the Canadian and US scallop fleets continued in the disputed zone and grew more intensive until 1984, when the International Court of Justice established an international boundary in the Gulf of Maine. The northeast portion of Georges Bank was awarded to Canada. The result of the intensive fishery leading up to the Court decision was that, in 1984, Canadian scallop landings from Georges Bank were less than 2,000t of meats, the lowest catch on record for the offshore fleet.

On October 30, 1986, the Minister announced the permanent separation of the inshore and offshore fleets at the 43^o 40´ North Latitude line near Yarmouth, NS.

Participants

The offshore scallop fleet initiated an enterprise allocation (EA) program in 1986 which was made permanent in 1989. The result was a rationalization of the offshore fleet which has been gradually reduced from 68 active vessels in 1986 to 25 active vessels in 1997. The following TABLE I.1 sets out the number of active vessels and the number of vessels eligible to be licensed, by company, for 1997. The number of companies holding offshore scallop licences has decreased from nine in 1986 to seven in 1997.

TABLE I.1

In 1996, the offshore scallop fishery provided full time employment for approximately 500 crew members and also supported approximately 150 land-based jobs in processing (particularly in the now well established roe-on product), onshore maintenance and repair people, etc.

Location of Fishery

Offshore scallop fisheries are conducted on Georges Bank (Scallop Fishing Area 27), Browns and German Bank (Scallop Fishing Area 26) the Eastern Scotian Shelf (Scallop Fishing Area 25) and St. Pierre Bank (Scallop Fishing Areas 10, 11 and 12). Appendix 1 contains a map delineating the Scallop Fishing Areas (SFAs).

Timeframe of the Fishery

The offshore scallop fishery in most SFAs is open year round. The one exception is German Bank in SFA 26 which is the subject of an intensive sixth month inshore lobster fishery from November each year to the end of May the following year. To avoid gear conflicts, the offshore scallop fleet does not fish German Bank during the open lobster season. Although the fishing season is open all year on St. Pierre Bank, winter weather conditions normally prevent a twelve month fishery there.

Landings/Value

The following TABLE I.2 summarizes the offshore scallop total allowable catches (TACs) and landings (tonnes of meats) from each SFA from 1990 to 1996. Please note that a separate TAC for German Bank was not established until 1993. Prior to that time, German Bank was included under the Browns Bank TAC. As well, the Eastern Scotian Shelf was fished on a competitive basis until 1994 when it was brought under the EA program and a TAC established for the first time.

TABLE I.2

The following TABLE I.3 summarizes the offshore scallop landed values ($ 000) from each SFA from 1990 to 1996. (Prices used to calculate landed values were $4.13, $4.39, $5.22, $6.78, $7.51, $7.47 and $7.79 per pound, respectively for the years listed).

TABLE I.3

Consultative Process

Advice to DFO on the management of the offshore scallop fishery is through the Offshore Scallop Advisory Committee (OSAC). See Appendix 2 for membership list and terms of reference.

Management Style

The offshore scallop fishery is managed on the basis of an enterprise allocation (EA) system. Each of the seven companies holding licences receives a percentage share of the annual TAC for each SFA. The percentage shares were negotiated between licence holders in 1986 and were based on historical fishing performance on Georges Bank and the number of licences held by each company. The following TABLE I.4 summarizes the companies and EA shares effective in 1997.

TABLE I.4

No one fishing enterprise may hold more than 50% of any specific scallop stock.

See Appendix 3 - THE ENTERPRISE ALLOCATION PROGRAM IN THE CANADIAN OFFSHORE SCALLOP FISHERY, February 15, 1989 (revised November 1996).

II. STOCK STATUS

Prospects for 1997

Georges Bank

The virtual failure of two consecutive year classes (scallops born in 1990 and 1991) on Georges Bank has left the stock in need of rebuilding. The weakness of the 1991 year class has resulted in the 1996 fishery directing for the 1992 year class early. Catch levels in 1996 were up 50% from 1995 and the fishery had a high dependence on the 1992 year class. The 1997 fishery will continue to rely heavily on the 1992 year class. However, because it was fished relatively hard in 1996, the 1993 year class (at age 4), could become a major constituent of the 1997 fishery. Age 4 scallops from the 1993 year class would provide more yield if they were fished later at age 5 in 1998.

Browns Bank

The weaker 1990 and 1991 year classes are now entering the fishery as new recruits. Catches, catch per unit effort and meat weight will continue to go down until incoming recruitment to the fishery improves. Catches in 1997 should be limited to below the 750t TAC level set in 1996. Higher catch levels would encourage the exploitation of younger scallops and the loss of yield.

German Bank

There is limited information available for the scallop resource on the German Bank. The fishery resumed there in 1993 after a seven year interruption. Catch levels of 200t-300t were not sustainable in the early 1980s. Given the short (1993-1996) and long term (1979-1996) history of the Bank, it would appear that irregular recruitment and slow growth make it difficult to sustain a fishery at catch levels greater than 100t.

Eastern Scotian Shelf (Sable/Western Bank and Middle Ground)

There has been little change in the fishery performance for the Sable/Western Banks area from 1995 to 1996. Catch levels have been restricted by TACs. The 1996 survey indicates that the abundance of pre-recruits could be improving. However, in the short term, catches should be maintained at current levels so as not to jeopardize rebuilding this stock.

The Middle Grounds recruitment appears to be sporadic. The resource potential is limited and only a small localized area of Middle Grounds has sustained exploitable scallop beds. Catch levels should be kept to a minimum to protect existing stock biomass.

St. Pierre Bank

St. Pierre Bank is at the northern range of sea scallop habitat. Sea scallop recruitment to this Bank is characterized as sporadic and unpredictable. The 1982 year class (one of the strongest on record) supported record landings by the offshore fleet of over 900t and 300t of meats in 1988 and 1989, respectively. The 1982 year class has continued to support a modest fishery (in the range of 150t of meats or less per year) with no new pulse of recruits noted until 1994. Good numbers of pre-recruits (1991 and 1992 year classes) were identified on St. Pierre Bank in the 1994 survey. Science has recommended that these scallops remain unharvested until they provide better yield per recruit (33 meats per 500 grams). A closure, for several years, of the sea scallop fishery on St. Pierre Bank was an option presented by Science.

III. LONG-TERM OBJECTIVES FOR FISHERY

The long-term objectives in the offshore scallop fishery are biological sustainability and economic viability through maintenance of the EA program.

In addition, the offshore scallop fishery has been identified as a priority candidate for a "partnership" agreement with DFO (pending passage of supporting legislation). Such a partnership would reduce costs to government while increasing the role of industry in areas of science, management, enforcement and decision making.

IV. MANAGEMENT OBJECTIVES

The objectives of the Offshore Scallop Management Plan are:

· to ensure the conservation and restoration of the resource;

· to the degree possible, stabilize landings over time; and,

· to provide increased economic benefits for crews, vessel owners, shore workers and the people of Canada.

Domestic Considerations

Aboriginal

Historically, Aboriginal people have not participated in scallop fisheries in areas where the current offshore fishery is located. Nevertheless, the following Aboriginal organizations sit as members of the Offshore Scallop Advisory Committee:

· Mi´kmaq Fish and Wildlife Commission

· Native Council of Nova Scotia

V. CURRENT MANAGEMENT ISSUES

By-catch

Section 93.3 of the Atlantic Fishery Regulations, 1985, requires that groundfish caught in any gear except cod traps be retained. As a result, offshore scallop vessels have been required to keep their groundfish by-catch. This has given rise to complaints by both fixed and mobile groundfish fishers who are faced with reduced quotas in recent years. Following discussions with OSAC in late 1995, it was recommended that incidental catches of all groundfish species, except monkfish, be returned to the water in 1996. This recommendation was subsequently implemented as a condition of the 1996 EA licence and has been continued for 1997.

Historically, monkfish have accounted for approximately 85% of the groundfish by-catch landed by offshore scallop vessels.

VI. MANAGEMENT MEASURES FOR 1997

Quota Allocations / Meat Counts / Fishing Seasons

The following TABLE VI.1 indicates the TAC levels that are set for the 1997 fishing year and allocated as per the percentage shares set out in TABLE I.4.

TABLE VI.1

Control and Monitoring of Fishing Activities

The two key management measures in the offshore scallop fishery are the TACs and the meat counts. To ensure the integrity of the TACs, the industry is required to fund an independent dockside monitoring program. Currently, 100% of landings are monitored with catch data from each landing being entered directly from the monitoring company to DFO.

Consistent with Fisheries and Oceans Canada´s (DFO´s) approach in other Enterprise Allocation (EA) fisheries, all scallops landed from offshore scallop vessels must be monitored, commencing in 1997, by a dockside observer and be recorded against the EA of the appropriate company. The past practice where crews were permitted to take small, pre-determined quantities of scallops ashore without the benefit of dockside monitoring and without having the weights attributed to EA quotas, was prohibited by licence condition effective January 1, 1997.

To ensure compliance with meat count regulations, fishery officers conduct meat counts on approximately 40% of all offshore scallop landings.

Other relevant elements to the 1997 Management Plan

Licensing

EA licences were issued for the offshore scallop fleet for the first time in 1996. Previously, a separate licence was issued for each active vessel. Licence conditions continue to be used as the main tool to control fishing between the various SFAs. This is important to ensure that fishery officers can enforce the appropriate meat count regulations and that landings are applied against the appropriate TAC. Offshore patrol vessels and aircraft (fixed wing and helicopter), are routinely used to ensure offshore scallop vessels are fishing only in the area authorized in their licence condition. Licence conditions are valid for only one SFA per trip.

At the request of offshore scallop licence holders, an in-depth review of the status of offshore scallop licences for SFAs 3 to 9 was concluded in 1995. To date, no policy or regulation has been implemented to preclude the issuance of offshore scallop licences that are valid for these areas. Consequently, the EA licences were validated for SFAs 3 to 9 commencing in 1997. Subject to the provisions of the 3LNO Icelandic Scallop Management Plan, zero (0) quota is assigned for these areas in 1997.

Key Regulations

In addition to the meat count regulations and those regulations which establish closed seasons (implemented by variation order if quotas are reached), the mandatory hailing in advance of landing scallops is also a requirement. Fishery officers must be notified at least 12 hours in advance of scallops being landed from a vessel and of the port of landing. It is an offence for the master of the vessel to land scallops at a time or place different from that hailed to the fishery officer without permission. This regulation has greatly improved efficiency in carrying out meat counts.

VII. CONSERVATION & PROTECTION ISSUES AND STRATEGIES FOR 1997

Conservation Issues

1. TAC ranges presented in Stock Status Report C3-17 for Georges Bank are from 3,000t to 5,000t for 1997. The OSAC recommendation was that the final TAC for Georges Bank be set at 4,250t for 1997. This equates to a 28% exploitation rate on age 4 - 7 scallops. Although this is somewhat low, given that exploitation rates on Georges Bank have averaged 40% over the past six years, industry made it clear at OSAC that they want to avoid dramatic fluctuations in catches from year to year.

2. TACs for Browns Bank (500t), German Bank (100t) and the Eastern Scotian Shelf (175t) in 1997 are consistent with advice provided in Stock Status Reports C-18, C-20 and C-19, respectively.

3. The option of a closure, for several years, of the sea scallop fishery on St. Pierre Bank was rejected by industry. The closure would not be applied to Newfoundland vessels fishing Icelandic and sea scallops on St. Pierre Bank. Instead, industry recommended a modest 50t TAC in 1996 and in 1997, in an effort to maintain a presence in this area and gather catch data. The meat count regulation (33 meats per 500 grams), coupled with the industry program to limit the blending of small scallops, offers considerable protection against possible growth overfishing. Again in 1997(as was provided in the Canada/France Fishing Agreement since 1995), the offshore fleet will not be permitted any by-catch of Icelandic scallops in the core area on St. Pierre Bank and any incidental catch must be returned to the water immediately.

Strategy

The offshore scallop fishery operates on the basis of an interim fishing plan established early each year and then finalized, usually in July, when the vetted biological advice is available.

Attached as Appendix 4 is the 1997 Interim Offshore Scallop Fishing Plan, which was used to manage the fishery commencing in January.

VIII. INDUSTRY RESPONSIBILITIES

For 1997, offshore scallop licence holders have accepted responsibility for the following activities:

· to fund an independent third party dockside monitoring program

· to follow the PROTOCOL FOR MARKETING OF ROE-ON SCALLOPS including responsibility for PSP and Domoic Acid analysis

· partial funding for gathering of commercial catch data

· to provide a commercial scallop fishing vessel and crew to carry out research cruises in SFAs 25, 26 and 27 under the direction of a DFO biologist

· to continue with the voluntary program to monitor meat counts for the purpose of controlling "blending"

· to carry out an extensive survey of non-traditional scallop fishing areas within offshore SFAs 25 and 26 for the purpose of identifying the presence of commercially exploitable scallop beds.

IX. ENFORCEMENT PLAN

· Continue with regular meat count enforcement with the objective of attaining approximately 40% coverage of offshore scallop landings.

· Use offshore patrol vessels and aircraft during routine surveillance operations to ensure compliance by offshore scallop vessel captains with licence conditions which restrict fishing to one SFA per trip.

· Enforce mandatory hailing requirements under the Atlantic Fishery Regulations, 1985.

Appendix I

Appendix 2

OFFSHORE SCALLOP

ADVISORY COMMITTEE

Membership List

Name, Organization, City

DFO

P.E. Partington, Chair

Greg Stevens, Resource Management, Halifax

Bob Barnes, Conservation & Protection, Bridgewater

Cluney Best, Resource Management, St. John´s

Ginette Robert, Science, Halifax

Alan Clarke, Enforcement, Yarmouth

Keith Veinot, Enforcement, Halifax

K.S. Naidu, Scienc,e St. John´s

Jim Nelson, Policy & Economics, Halifax

Freeman Libby, Inspection, Yarmouth

Associations

J. Donald Doucette, NS Fishermen´s Association, Lr. W. Pubnico

Klaus Sonnenberg, Grand Manan Fishermen´s Assoc., Grand Manan

Mitchell Longmire, Atlantic Coast Scallop Fishermen Assoc., Annapolis Co.

Paul Fogarty, CAW-TCA Local 1944, Lunenburg

Marilyn Crook, CAW, Lunenburg

Stewart MacDonald, UFCW, Lr. Sackville

Roger Stirling, Seafood Producers Assoc. of NS, Dartrmouth

Licence Holders/Processors

D. Knickle, Adams & Knickle, Lunenberg

D. Himmelman, LaHave Seafood, Lahave

Wm. Murphy, Mersey Seafoods Ltd., Liverpool

Marcel Comeau, Comeau Seafoods Ltd., Saulnierville

J. Mosher, Scotia Trawler Equipment Ltd., Lunenburg

Eric Roe, Clearwater Fine Foods Inc., Halifax

Wilson Fudge, Fishery Products International, Riverport

First Nations

John Prosper, Mi´kmaq Fish and Wildlife, Afton

Cory Francis, Netukulimkewe´l Commission, Truro

Provincial Governments

Ron Scaplen, Nfld Dept. of Fisheries & Aquaculture, St. John´s

Greg Roach, NS Department of Fisheries, Halifax

Appendix 2(cont´d)

OFFSHORE SCALLOP ADVISORY COMMITTEE

TERMS OF REFERENCE

PURPOSE

The Offshore Scallop Advisory Committee will provide input and advice to Fisheries and Oceans Canada (DFO) on the conservation, protection and management of the offshore scallop resource. The Committee will serve as the pre-eminent consultative forum for the development of the annual Offshore Scallop Fishing Plan.

SCOPE

The Committee will provide recommendations and advice on the management of the offshore scallop resource for Scallop Fishing Areas 3-9 (Grand Banks), 10-12 (St Pierre Bank), 26 and 27 (Georges Bank, Brown´s Bank, Sable Bank, Western Bank).

The Committee will provide advice on annual fishing plans, regulatory measures, fishing seasons, licensing policies, size limitations and gear restrictions. It will make recommendations on annual total allowable catches, quotas, the administration of enterprise allocation programmes and on the introduction of new fishing technologies into the fishery that may affect existing management measures.

The Committee will give consideration to biological, marketing and other information as it affects the management of the resource.

ADMINISTRATION

STRUCTURE

Any changes to the structure and administration of the Committee be decided by the Committee membership.

SUBCOMMITTEES

Ad hoc subcommittees/working groups can be established to review and assess specific policy options and management measures.

MEETINGS

Meetings can be held throughout the Scotia-Fundy Region. When feasible, meetings will be held at times and places convenient to the membership.

EXPENSES

Members are responsible for their own expenses incurred while attending meetings.

VOTING PROCEDURES

No formal voting procedures will be established. The Committee will seek to operate on a consensus basis.

MINUTES OF MEETINGS

Minutes of the Committee´s meetings will be prepared and distributed by DFO.

PUBLIC ACCESS

Unless a majority of Committee members say otherwise before a meeting starts, the proceedings of the Advisory Committee will be open to the public and to media representatives.

DFO WORKING GROUPS

The Committee will be supported by a working group of DFO officials who will consolidate scientific, economic and management advise into draft fishing plans for the Committee´s consideration.

NUMBER OF MEETINGS

The Committee will meet at least twice a year. Additional meetings can be held if required.

ATTENDANCE

If a member cannot attend, an alternate may be nominated and the Chairman notified as far in advance of the meeting date as possible.

MEMBERSHIP

CHAIRMANSHIP - The Committee chairmanship will be held by a DFO official. An industry co-chairman may be appointed at the discretion of Committee members.

Membership on the Committee shall be made up of those industry sectors having a major involvement in the harvesting and processing/marketing of the resource, as well as representatives of government of provinces with significant shore-based infrastructure and DFO.

The onus shall be on the various skipper/crew/owner organizations to nominate their representatives. Terms of appointment shall be for one year.

Enterprise Allocation Holders - 7 representatives

Vessel Captains - 2 from Lunenburg Masters Mariners Association

Inshore Scallop Advisory Committee- 1 representative

Province of Nova Scotia -1 Department of Fisheries

Other -1 representative each from Seafood Producers

Association of Nova Scotia; Nova Scotia Fishermen´s Association

Fisheries and Oceans:
2 Resource Management (Scotia-Fundy/Newfoundland);
2 Biological Sciences Branch (Scotia- Fundy/Newfoundland);
1 Area Manager Southwest Nova Scotia;
1 Economics Branch;
1 Conservation and Protection Branch;
1 Inspection Branch;
ex-officio advisors, as required.

Appendix 3

THE ENTERPRISE ALLOCATION PROGRAM

IN THE CANADIAN OFFSHORE SCALLOP FISHERY

FEBRUARY 15, 1989

* Revised November 1996

* November 1996 revisions made for housekeeping purposes only.

Enterprise Allocations in the

Canadian Offshore Scallop Fishery

CONTEXT

Enterprise Allocations (EAs) were introduced in the Offshore Scallop Fishery in June of 1986 following extensive government/industry consultations with the Offshore Scallop Advisory Committee (OSAC). As these company quotas resulted in a significant change in the harvesting strategy for this common property resource, the concept was introduced on a three year trial basis. The nature of the longer term harvesting strategy beyond the trial period (1986-1988) would depend on the relative successes of the program during the implementation phase. On October 30, 1986, the Minister announced the permanent separation of the inshore and offshore fleets at the 43° 40´ North Latitude line near Yarmouth, Nova Scotia.

Through a series of meetings in late 1988 and early 1989, OSAC met to discuss and provide advice on the future of the EA program under a format agreed upon earlier by the Committee. The review included, firstly, an assessment of whether the program had been successful in supporting the objectives of the Offshore Scallop Management Plan (supported by a DFO economic assessment) and secondly, detailed discussions of revisions to the harvesting strategy should the program be continued.

The strong general consensus of OSAC was that the trial program had contributed to the objectives of the Plan. Biological advice indicated that a wider range of year classes was appearing in the stock which would continue to assist in the stabilization of the fishery over time. On the economic side, all members concluded that the program had contributed to the provision of increased economic benefits to the fishermen, vessel owners, shore-workers and the people of Canada, and that, generally, all those engaged in the fishery were better off in social and economic terms than would have been the case should the fishery have remained competitive. Crew member representatives expressed concern over the level to which fleet downsizing would occur in the future and requested that season catch limits and the trip limit and duration remain in the plan.

As a result of this assessment, in a strong consensus, OSAC recommended that EAs be continued in the future. This document sets the principles and guidelines for the implementation of EAs as the long term harvesting strategy for the fishery.

ESTABLISHING THE TOTAL ALLOWABLE CATCHES

1. The objectives of establishing TACs and of the Management Plan generally for the offshore scallop fishery are three-fold:

(i) to ensure the conservation and restoration of the resource;

(ii) to the degree possible, to stabilize annual landings over time and;

(iii) to provide increased economic benefits for fishermen, vessel owners, shore-workers, and the people of Canada.

2. A TAC will be established annually for scallop stocks in Scallop Fishing Areas (SFAs) 10, 11, 12, 25, 26 and 27. Given the high variability in the numbers recruiting into fishable size, and the rapid pre-recruit growth rate in the stocks, the TAC will be based on the best biological advice available at the time, taking into account the above stated objectives. (Concerns about growth and recruitment over-fishing will be considered when establishing the TAC). The annual TAC advice will be discussed in the OSAC forum prior to the commencement of the fishing year.

3. The development of TAC management strategies for other offshore scallop stocks will be pursued in consultation with OSAC subject to the perceived need of the strategy to allow for rational harvesting and taking into consideration biological advice.

4. TACs for the offshore scallop fishery will be established annually for a fishing year beginning on January 1 and ending on December 31.

5. The Department will continue to refine the techniques used to establish TACs in order to provide more timely advice and to determine more definitive TAC levels in the future.

ACCESS TO THE RESOURCE

1. Access to the Canadian Atlantic Offshore Scallop Fishery in SFAs 10 (west of 55° 10´ W.) 11, 12, 25, 26, and 27 is limited to those enterprises eligible for licenses for the fishery on October 31, 1988, and to which EAs were provided in 1988 or their replacements (See section "Individual Enterprise Allocations", pg. 4)

2. Access to the developmental Iceland Scallop fishery in SFAs 3-9, and that portion of SFA 10 east of 55° 10´ W., will be limited to two vessels of any size in the first three years (1989-1991). (See section of this document "Developmental Fishery for Iceland Scallops")

3. The maximum size of vessel to be authorized for SFAs 10 (west of 55° 10´ W.) 11, 12, 25, 26, and 27 is 44.8m (147´) LOA.

4. No foreign flagged vessels will be authorized for any fishing activity in the Canadian Offshore Scallop Fishery.

INDIVIDUAL ENTERPRISE ALLOCATIONS

The percentage shares negotiated per enterprise in 1986 will continue in the future and will apply to new stock areas which may be managed by TACs and EAs in the future unless otherwise negotiated through OSAC.

The following Table summarizes the individual company shares of the offshore scallop TACs.

Revised January 1996

No one fishing enterprise may hold more than 50% of any specific scallop stock. For the purposes of this section, enterprise includes any subsidiaries under one corporate structure.

TERM OF THE PLAN

A primary objective of the EA program is to provide stability for fishermen and vessel owners in order that a sound investment and working environment is maintained and enhanced. As such, it is the intent of this plan, through this section, to foster a commitment of government and industry for a stable and secure program into the future.

The EA plan for the offshore scallop fishery shall remain in place indefinitely. It is recognized, however that a certain amount of fine-tuning may be necessary as experience is gained. Amendments to the plan will be considered when strong consensus exists that change(s) is (are) warranted.

Any member of OSAC may request discussion on any point of the plan at any time. Should the committee not achieve consensus on the issue, a member may trigger a review of the EA program on the provision of five (5) years notice.

Appendix 3(a)

ADMINISTRATIVE GUIDELINES FOR ENTERPRISE ALLOCATIONS

IN THE OFFSHORE SCALLOP FISHERY

Permanent transfers of Enterprise Allocations

1. The permanent transfer of a portion of a company´s enterprise allocation to another company will not be permitted. Should the transfer of an EA be necessary in the event of the sale of a company, that company will be required to request that its entire EA and all related licenses be reissued to the new owner. For the purposes of the section, company means any one of the enterprises listed in the section "Individual Enterprise Allocations"

2. All requests for permanent transfers of EAs must be approved by the Minister of Fisheries and Oceans.

Temporary Transfers of EAs within the Fishing Year

1. Once an EA is established, it is the responsibility of the Enterprise to decide how this allocation is to be harvested. The concept of the EA program in the offshore scallop fishery is that each individual EA will be harvested by the holder. Each Enterprise undertakes, as a matter of principle, that all or part of its allocation that cannot be harvested shall be offered to the remaining active enterprises.

2. Inter-enterprise transfers of EA´s maybe necessary during the fishing year as companies fine-tune their harvesting plans. Such transfers of allocations are temporary in that they will be applicable to that fishing year only.

(a) Transfers of EAs are not automatic. To assure that such transactions are accurately recorded and properly understood by all participants, the parties involved must submit their request for a "temporary" transfer in writing to the Chairman of OSAC or his designate. The Department will respond as quickly as possible.

(b) Transfers of EAs from individual enterprises within the offshore scallop fleet will only be offered to those enterprises within the offshore scallop fleet having eligible Canadian registered vessels.

(c) Barring catastrophic events, an enterprise will not be authorized to transfer in excess of 25% of its EA for more than two consecutive years.

(d) A transaction report will be forwarded to all offshore scallop enterprises upon request.

Permanent Vessel Replacement

1. One of the major longer term benefits of the EA approach is that each enterprise will naturally invest in the appropriate number, size and type of vessel necessary to harvest its allocation in the most economically effective manner. In contrast to competitive fishing, there should be no tendency toward over-investment in the fleet.

2. While acknowledging the principle spoken to in item 1, it is recognized that some caution is to be exercised in developing fisheries and in the heavily capitalized existing fishery.

(a) In SFAs 10 (west of 55° 10´ W.) 11, 12, 25, 26, and 27, the maximum size of replacement vessel to be licensed will not exceed 44.8 m (147´) LOA; with the minimum size of vessels to be 19.8 m (65´).

(b) For the developing fishery in SFAs 3 to 9, and that portion of SFA 10,(east of 55 °10´ W), see the section of this document "Developmental Fishery for Iceland Scallops."

3. In the event of the collapse of the EA program, the fishery could revert to a competitive fishery. In this event, enterprises (or their replacements) would be held to the number of licences held in 1986 prior to the introduction of EAs.

Licensing Mechanisms

1. In order to ensure effective implementation, operation and monitoring of the EA program, each company owning vessels in the offshore scallop fleet, will be required to provide the department with the following information:

(i) the name of the authorized officer of the company responsible for the administration of that company´s EAs and the operation of that company´s fishing vessels; and

(ii) a list of the offshore scallop vessels which will be fishing that company´s allocation.

2. In accordance with the Offshore Scallop Licensing Policy, limited entry will remain a feature of the program. A maximum of 76 licenses will be authorized for the fishery.

3. Should an enterprise withdraw vessel(s) from the fishery, such action shall not be cause for the removal of that vessel´s fishing privilege. Should the fishery revert to a competitive fishery at any time in the future, enterprises would have two years from the date of the cessation of the program to enter a replacement vessel or to enter into a binding contractual agreement to acquire a replacement vessel.

4. Should the offshore scallop fishery revert to a competitive fishery in the future, each enterprise (or its replacement, in the event of sale of that enterprise) would be permitted to utilize those licences held on January 1, 1986.

5. In order to assure effective monitoring and control of the fishery, limited fishery licences for each vessel will be required in addition to the EA licence issued to the enterprise.

6. In the event of repossession of vessels or the bankruptcy of an enterprise, the portion of the company´s EA equivalent to the average historical catch of the vessel repossessed will revert to the Licensing Authority for possible reallocation.

REGULATORY AND ENFORCEMENT MEASURES

New Regulatory Requirements

To assure the successful implementation of the EA program, the following new regulations are required:

1. A regulation to prevent the carrying of scallop fishing gear on board of a vessel in SFA 27 by vessels without offshore scallop licenses.

2. Regulations may become necessary to effectively control harvesting aspects of the roe-attached fishery in order to complement health and market protection sections of the Fish Inspection Act. Such regulations will be developed in consultation with OSAC.

3. If and as new technology is introduced to the fishery, new regulations may be required in order to assure the integrity of size limits and annual allocation. Of particular note, is the enforcement of size and annual limits in the case of scallops that are frozen and sorted at sea. While maintaining integrity is not seen as insurmountable, the need for caution has been identified as such changes appear in the fishery. Any appropriate regulations will be developed in consultation with OSAC.

4. The benefits of more variation of meat counts have been identified in order to be able to respond to changes in biological advice or objectives in the management of the fishery.

ADDITIONAL MONITORING, ENFORCEMENT, AND PENALTY PROVISIONS

1. Each company shall keep a separate journal recording scallop landings, area fished, and value of each trip landed which shall be made available upon request to a Fishery Officer.

2. The recommended penalty schedule to be presented to the court when speaking to sentence is attached in Appendix C.

3. Administrative penalty provisions for those requirements not specified in regulation:

Penalties for exceeding allocation:

(1) One percent (1%) or less (1 percent cannot be fished as a directed fishery):

- amount deducted from next quota period

(2) Over one percent (1%):

- twice amount to be deducted from next quota period.

NEW TECHNOLOGY

Whereas the introduction of new technology may have significant impacts on the management and regulation of the fishery and on those engaged in the fishery, there shall be consultation through the OSAC forum (prior to introduction) on the following or other similar topics: freezing at sea in the traditional fishery (not currently seen as a problem other than from the regulatory perspective), automated shucking or changes in harvesting technology.

Appendix 4

1997 INTERIM OFFSHORE SCALLOP FISHING PLAN

Based on recommendations from the December 3, 1996, Offshore Scallop Advisory Committee meeting, the following interim fishing plan will come into effect on January 1, 1997.

Except for monkfish, all other species of fish caught incidentally while fishing for scallops must be returned to the water in a manner that causes the least possible harm to the fish.

In addition to the Enterprise Allocation Licence, a separate and additional licence condition is required before fishing is permitted in any Scallop Fishing Area. A licence condition authorizing fishing in a specific Scallop Fishing Area(s) is valid from the date of issue until December 31, 1997, unless superseded by a subsequent condition.

No retention of Icelandic scallops is permitted in the CORE AREA adjacent to St. Pierre Bank (coordinates provided in the Licence Condition).

The weight and species of fish landed from a vessel must be verified by an Observer (dockside).

No fish may be landed (offloaded) from a vessel unless an Observer is present to verify the weight and species of fish landed.

The licence holder is required to provide information, in the form of the Scallop Monitoring Document, regarding the fishing activities carried out by each vessel.

The licence holder is required to provide catch and effort information in the form of a fishing log. A copy of the fishing log with all document entries is to be provided to Fisheries and Oceans Canada at the end of each fishing trip.

Appendix 5

OFFSHORE SCALLOP ENFORCEMENT

In the Offshore Scallop fishery, there are various means of ensuring compliance with Regulations and industry endorsed policy. As with all fisheries, the basis for achieving a high degree of compliance is properly set conservation objectives among its participants. The methods used to obtain compliance range from cooperative spirit and dialogue among industry and Departmental representatives involved in the fishery, to the use of dedicated monitoring and surveillance activity which, if necessary, will result in prosecutiuon and/or licence sanctions for serious violations.

The Conservation and Protection Branch is responsible for enforcing the Regulations which pertain to the offshore scallop fishery. In order to maintain the highest degree of compliance possible, the following elements of the fishery have been identified for coverage by enforcement personnel. These include monitoring activities to be carried out before, during and after the actual fishing at sea occurs and will be in the form of both onshore and offshore checks. Based on the management plans for the offshore scallop fishery, an enforcement strategy is set.

The following are the areas identified in more specific internal Conservation and Protection workplans:

· boundary lines: including the Hague Line and the 43§40´ Line to prevent entry by unlicensed foreign or domestic scallopers;

· seasonal and area closures;

· fishing gear inspections;

· meat count inspections;

· quota monitoring;

· bycatch/incidental catch monitoring;

· dockside monitoring program.

Description of enforcement strategies:

· at-sea boarding;

· dockside checks;

· plant checks;

· observer program;

· air surveillance;

· dockside monitoring program.

Penalty mechanisms:

· warnings;

· administrative quota reduction;

· prosecution;

· licence and/or quota sanctions.