OFFSHORE SURF CLAM

INTEGRATED FISHERY MANAGEMENT PLAN

Maritimes and Newfoundland Regions

1998-2002

Mactromeris polynyma

(Arctic Surf Clam)

Table of Contents

• INTRODUCTION
• 1. OVERVIEW OF THE FISHERY
  • 1.1 History
  • 1.2 Current Participants
  • 1.3 Location of the Fishery
  • 1.4 Time Frame of the Fishery
  • 1.5 Landings/Landed Value
  • 1.6 Market & Economics
    • 1.6.1 Market Evolution and Present Situation
    • 1.6.2 Fishery Economics
    • 1.6.3 Comprehensive Economic Analysis of the Fishery
  • 1.7 Consultative Process
  • 1.8 New Management Style
• 2. STOCK STATUS
  • 2.1 Biology
  • 2.2 Environment
  • 2.3 Species Interactions
  • 2.4 Stock Assessment
  • 2.5 Current Research and Issues
  • 2.6 Prospects
• 3. LONG-TERM OBJECTIVES FOR THE FISHERY
• 4. GENERAL MANAGEMENT OBJECTIVES
  • 4.1 Conservation/Sustainability
  • 4.2 International Considerations
  • 4.3 Domestic Considerations
• 5. CURRENT MANAGEMENT ISSUES
  • 5.1 Issue: Sustainable Yield
  • 5.2 Issue: Effects Monitoring
  • 5.3 Issue: New Entrants
  • 5.4 Issue: Exploratory Fishery
  • 5.5 Issue: Inshore Fisheries
  • 5.6 Issue: Bycatch
  • 5.7 Issue: Fishing More Than One Quota Area Per Trip
• 6. MANAGEMENT MEASURES
  • 6.1 1998-2002 TACs
  • 6.2 Conversion Factors
  • 6.3 Enterprise Allocations
  • 6.4 Exploratory Fishing Offshore
  • 6.5 Licence Provisions
  • 6.6 Enterprise Allocation Transfers
  • 6.7 Season
  • 6.8 Gear
• 7. MONITORING AND ENFORCEMENT ISSUES/STRATEGIES
  • 7.1 Prohibited Areas (Reference Map, Appendix V)
  • 7.2 Bycatch Provisions
  • 7.3 Contaminated Areas
  • 7.4 Gear Restrictions
  • 7.5 Transshipping
  • 7.6 Reporting Requirements
  • 7.7 At-Sea Observers
  • 7.8 Dockside Monitoring
  • 7.9 Enforcement Strategies
  • 7.10 Industry Administered Enforcement Strategies
• 8. JOINT INDUSTRY/DFO RESEARCH PROGRAM
  • 8.1 Existing Projects
  • 8.2 Future Projects

List of Tables

TABLE I Landings and Landed Value of the Offshore Arctic Surf Clam Fishery, 1987-1996

TABLE II Quantity and Value of Exports of Stimpson´s Surf Clams from NS and Nfld., 1990-1996

TABLE III Arctic Surf Clam Allocations

List of Appendices

APPENDIX I Offshore Clam Fishery Chronology

APPENDIX II Offshore Clam Advisory Committee - Terms of Reference

APPENDIX III Offshore Clam Management Board - Terms of Reference

APPENDIX IV Offshore Clam Advisory Committee Membership List

APPENDIX V Map of Fishing Areas

OFFSHORE SURF CLAM

INTEGRATED FISHERY MANAGEMENT PLAN

INTRODUCTION

The offshore Arctic surf clam fishery has been operating on the Scotian Shelf since 1986, and on the Grand Banks since 1989. Although it has developed into a major new industry with annual sales of $30 million to $50 million, the lack of comprehensive scientific information on the resource has meant that Fisheries and Oceans Canada (DFO) continues to manage this fishery with a “preemptive” total allowable catch (TAC) and has limited the fishing effort to the existing licence holders or “Enterprises”. This Plan continues and enhances the joint industry-DFO study of the resource in order to better assess the health of the stocks and the sustainability of the fishery at current harvest levels and tables a mechanism whereby new entrants could be considered.

1. OVERVIEW OF THE FISHERY

1.1 History

Prior to the start-up of this fishery, there was a thriving fishery along the eastern seaboard of the United States for a related species, the Atlantic surf or “bar” clam (Spisula solidissima), for the deep-fried clam strips and chowder market in the US. That resource was then in danger of being over-fished.

At approximately that time, in 1980, DFO undertook a field research program to determine the resource potential of the ocean quahog (Artica islandica) and other underutilized clam species in the Scotia-Fundy Region. During those surveys, which took place from 1980 to 1983, commercial quantities of the clam, Mactromeris polynyma (then called Spisula polynyma), were found on Banquereau Bank on the Scotian Shelf (Rowell and Chaisson, 1983; Chaisson and Rowell, 1985). Due to the exploratory nature of the surveys, other areas of the Scotian Shelf could not be precluded from also containing commercial quantities of Arctic surf clams, although none were identified at that time. To date, there still has not been any commercial interest in Artica islandica due to market economics; however, it was thought that our local species, the Arctic surf clam, might prove to be a reasonable substitute for the American bar clam in the US market.

In 1986, it was estimated that Banquereau Bank had a commercially exploitable biomass of 561,000t and a maximum sustainable yield (MSY) of 16,821t per year (Rowell and Amaratunga, 1986). A three month test fishery took place with three companies (Nova Scotia Clam Company, Pursuit Fisheries and Mother Snow´s) participating. Each company used chartered US vessels, equipped with a single hydraulic clam dredge. The results from the 1986 test fishery increased the previous estimate of MSY upward to 24,000t (Amaratunga and Rowell, 1986). However, it was recognized that these estimates of MSY resulted from the use of a model which was somewhat compromised by a limited data set on the resource at this location.

In 1987, a three year offshore fishery program was developed with industry consensus. TACs and Enterprise Allocations (EAs) were set for each of the three years of the program. They were based on biological information provided by the surveys and test fishery, and an economic break-even analysis on the amount of resource required to make an operation viable. The vessels at that time were chartered (hydraulic dredge) clam vessels from the commercial fishery in the US with no at-sea processing. TACs were set at 30,000t for Banquereau Bank and 15,000t for the rest of the Scotian Shelf. There was no fishery as yet off Newfoundland.

By 1989, the initial, three-year trial Enterprise Allocation (EA) Program for Banquereau Bank was in its last year. That same year, two exploratory licences and two exploratory permits were issued for 3LNO (the Grand Banks), with a total "precautionary" TAC of 20,000t for this new area. These were issued to the three original participants plus a fourth to the Atlantic Surf Clam Co., a Newfoundland-based company. In addition, the TAC for the Scotian Shelf outside of Banquereau Bank was increased to 20,000t and access to the Scotian Shelf resource was expanded to include Atlantic Surf Clam Company.

Two factory freezer vessels were in use by 1988 (Pursuit/Clearwater, using the Atlantic Vigour and the Atlantic Pursuit) and a third came into use in 1989 (Atlantic Surf Clam Co., using the Concordia). These vessels ranged from 188-220 feet in length. Also, in 1988, value-added onshore processing began at Alder Point, NS (Pursuit/Clearwater), in 1989 at Holyrood, Nfld. (Atlantic Surf Clam Co.), and in 1993 in Grand Bank, Nfld. (by Clearwater, having purchased the licence of Atlantic Surf Co. and renaming it “Arctic Surfco”). [Processing by Seabay Clam/National Sea at Arnold´s Cove, Nfld. did not begun until early 1993.] Capital investment in the late 1980s was in the order of $20 million for the larger vessels (purchase and retrofit).

In 1990, a new multi-year Management Plan was developed and approved in 1991 for the years 1990-1994. It featured the inclusion of two Regions of DFO in the one Plan, both Scotia-Fundy (now Maritimes) and Newfoundland. It also featured the equal sharing of the preemptive TAC for each fishing bank (Banquereau and Grand Banks) among the then existing four licence holders (Atlantic Surf Co.; Deep Sea Clam Co./National Sea; Pursuit/Clearwater; and Nova Scotia Clam Co.). Any changes in the TAC would also be equally split between the existing licence holders.

It was during this period that the industry realized that the American market would not accept this species of clam (due primarily to the color difference of the meat) and the licence holders struggled to develop a market that would meet production capacity and maintain the financial viability of the clam operations. These market and financial difficulties had the following repercussions: Clearwater tied up one of its clam vessels for four years; Atlantic Surf Clam Co. sold its licence after an extended vessel tie-up; Deep Sea Clam Co./NSP delayed its vessel operation until the Fall of 1991; and the Nova Scotia Clam Co. declared bankruptcy.

The EA Program was continued under a new Agreement for the years 1995 -1997, with the industry presence in the fishery having evolved from four to three Enterprises, two of which were held by Clearwater and one by Seabay Clam in partnership with National Sea Products Ltd. The TAC stayed the same. The Plan committed the industry to cost-sharing scientific studies of the resource during this period to funding a third-party economic study of this fishery to be completed by the end of the Plan (1997), to monitoring 100% of its landings via a Dockside Monitoring Program (DMP) at industry´s expense and prohibited the permanent transfer of allocation between the three Enterprises.

A summary chronology of major milestones in the development of the Arctic surf clam fishery is included as Appendix I.

1.2 Current Participants

The industry presently consists of two companies, one holding two licences (Clearwater Fine Foods Inc.) and the other one (Seabay Clam Co., Inc.). Clearwater´s two licences are held in the names of Clearwater Fine Foods Ltd. and Arctic Surfco, with Artic Surfco being a wholly owned subsidiary of Clearwater Fine Foods Inc.

Only three vessels are currently permitted to be active, although one of the Clearwater Fine Foods Ltd. licences has a residual or “banked” vessel associated with it. The three vessels in the fishery are specialized factory freezer clam vessels which operate year round. Each vessel has equal allocations for each commercial fishing area (Banquereau and Grand Banks). Each licensed vessel lands product for further processing at separate plants: North Sydney, NS (Clearwater, Atlantic Pursuit); Grand Bank, Nfld. (Arctic Surfco, Atlantic Vigour), and Arnold´s Cove, Nfld. (Seabay Clam Co., Concordia). The licences are issued out of DFO´s offices in Halifax (Atlantic Pursuit) and St. John´s (Atlantic Vigour and Concordia).

The industry employs approximately 600 fishermen and plant workers on a year round basis. More than $60 million has been invested by the participants in the development of the Canadian Arctic surf clam industry, including costs relating to exploration, acquisition/conversion of specialized vessels, plant and product development and the creation of new markets.

1.3 Location of the Fishery

The fishery is concentrated on offshore clam beds located on Grand Bank and Banquereau Bank.

See reference map, Appendix V, and note Section 4.2 of this Plan regarding that portion of the Grand Banks grounds which extends beyond the 200 mile economic zone.

1.4 Time Frame of the Fishery

The fishery is conducted on a year round basis commencing January 1 of each year.

1.5 Landings/Landed Value

Table I gives the data available on the historical catch and landed value.

1.6 Market and Economics

1.6.1 Market Evolution and Present Situation

Canadian surf clams or “hokkigai” (as the product is known in Japan), were first introduced in late 1988 to Northern Japan (Hokkaido) where a local clam with similar colour and taste was consumed in sushi bars. Canadian hokkigai quickly gained local acceptance and carved out a market niche at a price lower than that of Japanese hokkigai. The favorable introduction of Canadian product there resulted in positive reports to distributors elsewhere in Japan.

After its initial introduction to Japan, the major obstacle to further market growth was the lack of consumer knowledge about it other than in the Hokkaido region. This lack of knowledge about hokkigai, including unfamiliarity with the handling and preparation of frozen clam meats, greatly hindered expansion of the Japanese market for Canadian hokkigai.

The Canadian Hokkigai Export Association (CHEA) arose from discussions in the Spring of 1989 when Canadian exporters realized it was essential to work together to expand the size of the market for hokkigai in Japan or face a strong possibility of bankruptcy.

In August 1991, CHEA approached the Minister of Fisheries and Oceans Canada for a funding contribution towards a marketing campaign for Canadian hokkigai and, in 1992, approval was received. During the fall of 1992, the generic campaign was finalized and included advertisements in trade magazines, TV exposure via cooking shows, media attention generated by a publicity office and an extensive supermarket program in the Kanto and Kansai Regions to give consumers an opportunity to taste hokkigai. Over 50 supermarket chains and 1420 stores participated and an estimated 3,330,000 pieces of hokkigai were handed out as consumer samples. Surveys before and after the campaign showed that it was effective. The surveys showed a 38.5% increase in at-home eating incidence and a 15.9% increase in away from home eating experiences following the campaign.

Continued industry promotion has helped to further expand the market to over 4,000t of product exported in 1995 with a value of $46.8 million.

Despite this success, having only a single major export market means that the fishery is still susceptible to major fluctuations as a result of localized market conditions. For example, in 1996, exports declined as a result of a dramatic decrease in Japan of the consumption of uncooked animal protein, including raw seafood, due to an outbreak of food poisoning in Japan. Although not caused by seafood, the hokkigai export market nonetheless was seriously affected. Markets appear to now have recovered much of the ground lost last year.

Japan remains the primary market for this product; however, there is continuing work to expand markets in the United States, China and various other Asian countries.

1.6.2 Fishery Economics

1.6.2.1 Revenues

The industry is heavily dependent on exports to Japan which accounts for more than 90% of sales revenue. The export value of the product in a recent “normal” year, such as in 1995, was $46 million. Table II illustrates the quantities and value of exports from this fishery to Japan during the 1990-1996 period.

The market has been the single most important factor restricting the harvests to date to less than the preemptive TAC. The existing fleet has sufficient harvesting capacity that it could approach the TAC in the short term. Whether it could be harvested at that level on a sustained basis is unknown. This will be investigated further during the period of this Plan.

1.6.2.2 Fishing Costs

Offsetting gross revenue from the fishery are the costs involved in the harvesting and processing operations, both at sea and onshore. Immediate at-sea processing and freezing is required in order to preserve the quality demanded by the Japanese market. Secondary processing onshore for added value with appropriate packaging then is required to provide the high-end products to that same market. A rough estimate of the current replacement value of a vessel that is currently used in this fishery is $20 million-$30 million, of which the onboard processing plant is approximately $4.5 million. An onshore processing facility requires an investment of approximately another $10 million. Crew and processing plant operating and labour costs would be in addition to these amounts. One vessel reports that it uses a complement of 33 people at sea per trip of 42 days, but must maintain an additional 30 employees as replacements on the alternating trips.

This market demands the highest quality product and presentation. This in turn demands that the highest quality standards are maintained during the harvesting and production stages, and that the product be frozen at sea with the best technology available. Volume of catch is required to offset the high harvesting, production and marketing expenses. Participation in this fishery therefore requires a significant financial investment of the licence holders and high individual enterprise allocations.

1.6.3 Comprehensive Economic Analysis of the Fishery

In accordance with the 1995-1997 fishing Plan , the industry provided the Minister with an economic analysis of this fishery, done by a reputable third Party. Six months prior to the expiry of this Plan, i.e., by June 30, 2002, an update of the February 1998 study will be provided to the Minister by the industry, also to be done by a reputable third Party. Key parameters to be determined in these studies will be the typical total annual costs of fishing and returns on investment while fishing profitably but in a sustainable manner.

1.7 Consultative Process

The main consultative body for this fishery is the Offshore Clam Advisory Committee (OCAC). This Comittee is open to the public and is the consultative forum for issues affecting the offshore clam fishery. It is composed of representatives of DFO, the two licence holding companies, and the relevant provinces (Nova Scotia and Newfoundland). The Terms of Reference and Membership List are attached as Appendix II. It is chaired by a representative of DFO and provides direction to the Offshore Clam Management Board (OCMB) (refer to Section 1.8).

OCAC meets at least once per year, prior to the preparation of the fishing plan for the next season. Formal scientific advice is presented to OCAC and discussed on this occasion. Specific issues may be handled by the OCMB which then reports back to OCAC.

Before scientific advice is formally tabled at OCAC, it is first presented during DFO Science´s Research Advisory Process (RAP), which is also open to invited participants from industry, the research community and the public. The RAP features reviewers invited from OCAC as well as expert reviewers from the scientific community. Upon revision, a formal Stock Assessment document is prepared for distribution and further discussion at the next OCAC meeting.

1.8 New Management Style

This fishery is managed using a total allowable catch (TAC) system whereby the amount to be fished is determined by using scientific and industry input. The TAC is usually based on harvesting a percentage (exploitation rate) of an estimate of the commercially available biomass (fishable biomass) so as to optimize the yield, while at the same time not exposing the resource to risk of over-exploitation. Once the TAC is set, the individual quotas or enterprise allocations, as they are called in this case, are established based on the percentage to which each licence holder is entitled. Bycatch controls are also in place, limiting retention of bycatch species to other bivalve molluscs, with a limit of 10% on ocean quahogs (Arctica islandica).

In addition to these output controls, under this Plan a new management body will be established. This Board will be known as the Offshore Clam Management Board (OCMB) and will include both industry and DFO representatives. The responsibility of the Board will be to review the operation of the fishery; recommend changes to the Integrated Fishery Management Plan to OCAC that are consistent with the Plan´s objectives; and provide an annual report on the fishery also to OCAC. A key duty of the Board will be to confirm the annual work plan elements. The Terms of Reference of the Board are attached as Appendix III.

All decision-making authority, with regard to allocations and TAC, continue to reside with the Minister of Fisheries and Oceans during the period of this Plan.

2. STOCK STATUS

2.1 Biology

The Arctic surf clam (Mactromeris polynyma) is a large clam (75-125 mm), similar in appearance to the more common Atlantic surf clam. The main distinguishing feature is that most specimens of Arctic surf clam have a purple color in the foot and mantle that turns red upon cooking, similar to lobster and shrimp. This species is found in both the Atlantic and Pacific oceans in medium to coarse sandy bottoms. In the Atlantic, there are large commercial fisheries on Banquereau and Grand Bank and small inshore fisheries off southwest Nova Scotia and in the Gulf of St. Lawrence. These clams are slow-growing and long-lived, the oldest aged to date was calculated to be over 56 years old and the largest was 157 mm. Preliminary estimates of age indicate that a good part of the unharvested population on Banquereau Bank reaches 40 years of age.

They reach reproductive maturity between five and eight years of age and spawn in the Fall. There is some indication that the inshore population may have a Spring spawning event as well.

2.2 Environment

As the Arctic surf clam is sedentary (i.e., non-migratory and bottom dwelling in the adult stage), environmental variations are thought to mainly influence the survival of the larval stages. For example, changes in water temperature could change the amount and location of preferred habitat available for settlement.

2.3 Species Interactions

Arctic surf clams are filter feeders and are in turn preyed upon by large groundfish such as cod and also by some species of whelks. The quantities consumed by their predators and the resultant impact on the surf clam stocks remains uncertain.

2.4 Stock Assessment

The stock assessments of total and fishable biomass are based mainly on analyses of log data from commercial fishing activities; however, there is currently a dredge survey nearing completion which will give more reliable biomass estimates for both the Grand Banks and Banquereau Bank. As indicated earlier (refer to Section 1.7), scientific results are vetted through the RAP process prior to publication.

2.5 Current Research and Issues

The prominent issue at this time is that of stock biomass. The quota on Banquereau Bank was set higher than that advised on a biological basis, and the quota on Grand Bank was a “precautionary” TAC for which there was no biological advice. The survey program that is currently underway will provide biomass estimates for both of these areas.

The next major issue is that of the effect of dredging on the habitat. A program has been initiated with the Habitat Ecology division to address this issue. Preliminary investigations were done on a freshly dredged site in 1996 and site selection for a controlled dredging experiment will take place in the fall of 1997. The experimental dredging will be conducted in 1998 and changes at the site will be followed for at least three years.

Since Mactromeris polynyma is a long-lived species, recruitment to the population is another issue of great interest. On Banquereau Bank, ageing data from studies in the 1980s indicated that the clams reached an age of 40 years or more and the size range of commercial interest represents clams 10 to 15 years old. This is well above the age of maturity for this area, but it means that even with regular recruitment, it will probably be 10 to 15 years before an area could be re-harvested. If recruitment is low or intermittent, as it is with some long-lived bivalve species, it would be even longer. Early work with grab samples done by the Habitat Ecology Division on Banquereau Bank found low numbers of juvenile clams. This raised concerns about recruitment for this fishery. There may have been problems with the penetration of the grabs used for this work as more recent work, with both lined gear and with a different design of grab sampler, although limited in the area covered, has shown much higher numbers of small clams. Samples collected during the dredge survey are currently being aged and this will provide additional information on the recruitment processes for this fishery.

Other studies being considered are to look at dredge efficiency and the survival rate of small clams that pass through the dredge. See also Section 8 of this Plan.

2.6 Prospects

Recruitment of juveniles to the fishery has been identified as a concern for this stock. Evidence for recruitment has been limited, to date. For example, tows with the gear lined with small mesh twine during the dredge survey and grab samples taken during the initial dredge effects study have shown the presence of small clams, at least in the limited areas sampled. To date, the fishery has been able to maintain its catch rate by moving into new areas. Harvesting has not yet had to return to areas previously fished. Completion of the above-mentioned survey should provide much more information on the sustainability of the present harvesting strategy.

3. LONG-TERM OBJECTIVES FOR THE FISHERY

The long-term objectives are:

• to harvest at the optimum sustainable level;

• to further increase industry´s level of participation in the management of this resource to benefit Canadians;

• to maintain the long-term viability of the fleet;

• to minimize any adverse environmental effects of the fishing methods.

4. GENERAL MANAGEMENT OBJECTIVES

4.1 Conservation/Sustainability

The overall objective is to ensure the maturation of a biologically sustainable offshore clam fishery through scientifically based management plans, coupled with appropriate enforcement, monitoring and regulatory measures. A further objective to achieving this end is the continued cooperation between the licence holders and the Department in the management and study of this resource.

4.2 International Considerations

Apart from marketing considerations, which sees the entire harvest sold within one Asian market, there are harvesting considerations which are potentially international in nature. Specifically, this relates to a portion of the fishery grounds in the Newfoundland Region which occurs beyond the 200-mile Canadian economic zone. Under Canadian and international law this resource, being sedentary, belongs to and is managed by Canada.

4.3 Domestic Considerations

(a) Aboriginal Fishery

There are no aboriginal elements involved in this fishery.

(b) Recreational Fishery

There are no recreational elements involved in this fishery.

(c) Commercial Objectives

The main commercial objective for this fishery is the maturation of an economically viable industry capable of providing year round employment opportunities as well as year round utilization of harvesting and processing assets.

A second commercial objective is the promotion and use of harvesting and processing methods which maximize final product value in a sustainable manner.

(d) Exploratory

It is believed that the current fishing grounds represent the major commercial areas which exist for harvesting this resource offshore. However, there remain offshore areas which could be explored to further assess the nature of the resource.

5. CURRENT MANAGEMENT ISSUES

5.1 Issue: Sustainable Yield

It is recognized that the TACs for Banquereau, and particularly for the Grand Banks, were “preemptive´. To date, the annual TAC has not been taken in any fishing year. However, it is felt that this would be possible, but possibly not sustainable, given existing harvesting capacity in the fishery. So far, market forces have constituted the primary factor which has kept the harvest level below the TAC. A major current management issue, therefore, is to determine a scientifically based TAC.

Approach:

To continue with joint (government/industry) studies of the resource to determine biomass and optimum sustainable yield and other management measures which may be necessary to conserve and protect the resource.

5.2 Issue: Effects Monitoring

The effect of the harvesting methods on the habitat and resource need to be defined and mitigated where necessary.

Approach:

To augment initial DFO studies with joint studies of the fishery. See also Section 8.

5.3 Issue: New Entrants

The Department may receive future requests for new licences for this fishery.

Approach:

When considering the awarding of a new licence(s), the management objectives governing this Plan, which reflect the uncertainty still surrounding recruitment, the long-term sustainability of the fishery and the effects of additional production on pricing in this presently unique market, are key factors that the Department will take into account.

However, if during the period of this Plan, a scientifically based, combined Grand Banks/ Banquereau Bank TAC is established which exceeds the 1997 level of 50,000t, then quota will be considered to be available for the Minister to grant a licence to a new entrant at the Minister´s discretion. In that event:

• At the time of entry, any new licencees shall be viewed as having the same reporting, monitoring, and joint research responsibilities as earlier entrants, thus establishing parity of all licencees. If future TACs are revised due to new scientific advice, such future TAC revisions will be shared on a pro rata basis among all licence holders.

• All new licencees shall immediately conform with all of the requirements under the Management Plan.

5.4 Issue: Exploratory Fishery

Apart from existing licencees, who may wish to explore new offshore areas, occasional requests from inshore vessels may be received.

Approach:

All exploratory activities and requests must be reported to the Offshore Clam Management Board (OCMB), where they will be reviewed for comment and monitored as necessary by the OCMB, which will include this element of the fishery in its reports to the Offshore Clam Advisory Committee. However, the Department remains as the decision making authority on all such requests.

5.5 Issue: Inshore Fisheries

Interference with inshore fisheries has occasionally been raised as a potential problem.

Approach:

This fishery will continued to be limited to offshore fishing grounds (see map, Appendix V).

5.6 Issue: Bycatch

Co-occurring molluscan shellfish species may be harvested as an incidental bycatch during this fishery. Incidental bycatch of groundfish species might also occur.

Approach:

Bycatch of other molluscan invertebrates is permitted by licence condition which will include all necessary conservation and reporting requirements specific to the permitted bycatch species. Subject to conservation needs, each quota holder will be allowed an unlimited bycatch of propeller clams, cockles and other non-quota molluscs*, with the exception of quahogs which are restricted to a 10% bycatch level. OCAC will provide the Minister with advice regarding the biological and commercial potential of bycatch mollusc species by 2002. During the period of this Plan, bycatch information is to be recorded in the fishing log books whether the bycatch is permitted and retained or discarded.

The offshore clam fishery utilizes hydraulic dredging and other molluscs are harvested along with Arctic surf clams. On Banquereau and the Grand Banks, no directed fishery should be allowed for quahogs, Greenland cockles and Northern propeller clams in order to avoid additional harvesting effort on Arctic surf clams.

To date, during trips which have been monitored at sea, groundfish bycatch has been minimal; nonetheless, no groundfish bycatch may be retained.

5.7 Issue: Fishing More Than One Quota Area Per Trip

The industry has been required to fish only one quota area on any individual fishing trip, in order to ensure that reported landings for that trip are from only one quota area; however, the industry is seeking more flexibility on this point.

Approach:

The Department may permit more than one quota area to be fished per trip if a certified at-sea observer is on board. In addition, acceptable alternate methods of at-sea surveillance and reporting will be jointly researched during the period of this Plan (see Section 8.2, project #3).

6. MANAGEMENT MEASURES

6.1 1998-2002 TACs

The Arctic surf clam TACs for Banquereau Bank and the Grand Banks during the 1998-2002 period are unchanged from that of the previous Plan ( 1995-97) and are listed below. These TACs may be revised during the period of this Plan should scientific assessment of the resource indicate the need to lower it for conservation purposes or indicate that it could be raised and fished in a sustainable manner.

AREA TAC

Banquereau Bank 30,000 MT

Grand Bank 20,000 MT

Total 50,000 MT

6.2 Conversion Factors

Conversion factors are employed in monitoring this fishery. These are factors which are applied against the landed product weight to back calculate (convert) to the original whole animal-in-shell weight. As indicated in Table I, the current (1998) conversion factors are 6.51 (blanched product) and 5.37 (raw product)

6.3 Enterprise Allocations

The licence holders will share the TACs equally as per the following table:

TABLE III

Arctic Surf Clam Enterprise Allocations

6.4 Exploratory Fishing Offshore

Subject to the requirements for the use of certified at-sea observers (refer to Section 7.7 of this Plan), the licence holders may conduct exploratory fishing in offshore areas outside Banquereau Bank and the Grand Banks, providing this activity does not interfere with other established or developing fisheries in those areas. In addition, areas closed to fishing shall be respected. Intention of conducting exploratory fishing trips shall be made in writing to DFO and the Offshore Clam Management Board prior to undertaking them. Results of all such exploratory fishing trips shall be made available in writing to DFO and the OCMB immediately upon completion of such trips. The Board will relay this information to OCAC in a timely manner and also make recommendations to OCAC respecting the development and management of the clam fishery in these other offshore areas.

All offshore licence holders shall share equally in any quotas established for new areas during the 1998-2002 period.

6.5 Licence Provisions

• All vessels used in the offshore clam fishery must be registered Canadian fishing vessels and must meet the requirements of Schedule III of the Fish Inspection Regulations and operate under a certified Quality Management Program.

• All crew must be Canadian citizens or have permanent resident status in Canada.

• Vessels are allowed to fish more than one fishing area on the same trip under specific monitoring guidelines (see Sections 5.7 and 6.3).

• The licence holder shall be the vessel owner and operator.

• An annual licence fee at the regulated rate (currently and for 1998, $23.75 per MT) is payable prior to licence issuance.

6.6 Enterprise Allocation Transfers

• Permanent transfers of allocation from one offshore clam Enterprise (licence holder) to another in this fishery is not permitted.

• Temporary transfers are permitted within a single fishing season (calendar year), subject to written request to and written approval by DFO.

• Permanent transfers of allocation from an existing offshore clam licence holder to a third Party are subject to prior review by the OCMB and prior written approval of DFO.

6.7 Season

The fishing season for Arctic surf clams on Banquereau Bank and the Grand Banks is January 1 to December 31 of any year.

6.8 Gear

The gear in use is the hydraulic clam dredge. A full description will be developed during the first year of this Plan.

7. MONITORING AND ENFORCEMENT ISSUES/STRATEGIES

7.1 Prohibited Areas (Reference Map, Appendix V)

Offshore surf clam vessels are prohibited at all times from fishing:

• within 20 miles of land;

• in the Gulf of St. Lawrence - i.e., no fishing is authorized north northwest of a line drawn from Burgeo Island, Nfld., following the 3Pn line intersecting the 4Vn line at 46°50´N; 58°50´W and proceeding in a southeasterly direction and extending to Cape Breton Island at 46°11´N; 59°55´W;

• in the area West of 65°30´W in NAFO Division 4X and Subarea 5;

• in the Bay of Fundy (Fishing Zone 2);

• in the waters off Cabot Island/Funk Island, Nfld., enclosed by straight lines joining the following points in the order in which they are listed:

50°05´N 53°15´W

50°05´N 52°35´W

49°15´N 52°35´W

49°15´N 53°15´W

49°43´30"N 53°38´W

50°05´N 53°15´W

7.2 Bycatch Provisions

Only those species permitted by licence condition may be retained. Bycatch data in logs must be reported by species and weight or number. Bycatch conservation requirements, if any, will be monitored according to the restrictions stipulated in the licence conditions

*In the case of whelks, a DFO Inspection/industry protocol must be in place prior to retaining for marketing purposes.

7.3 Contaminated Areas

To date, in this fishery, this has never been a concern.

7.4 Gear Restrictions

The gear type used while fishing must be as described in the licence (hydraulic dredge).

7.5 Transshipping

The transshipping or receiving of catches to or from other vessels is prohibited.

7.6 Reporting Requirements

Licence holders must complete the information required of them in DFO supplied logbooks which will serve as the required, accurate record of catches. See also Section 7.8.

As per the licence, hails must be submitted to the Department on a daily basis while the vessel is at sea.

7.7 At-Sea Observers

The need for certified at-sea observers in the offshore clam fishery is considered low because:

• there is normally a near absence of groundfish bycatch in the fishery;

• data for scientific purposes will be collected under research programs to be developed under this Management Plan.

However, issues such as highgrading of catch, over-fishing of areas, bycatch of sedentary species not permitted by licence condition (such as scallops or other species) might arise during the lifetime of this Plan. The recommended minimum level of monitoring by certified observers varies within DFO from zero to ten percent of sea days on commercial grounds. This Plan therefore requires that certified observers be deployed on an as required basis, at industry expense. In addition, a higher level of coverage, possibly up to 20%, may be required for all exploratory trips pending review of the results of this monitoring by DFO and the Board.

Alternatively, joint government/industry studies into the use of approved electronic monitoring systems may reduce this need during the lifetime of this Plan. Refer also to Sections 5.7 and 8.2.

7.8 Dockside Monitoring

100% dockside monitoring is required, as in the previous Plan, and will be paid for by industry.

7.9 Enforcement Strategies

DFO will monitor compliance with all regulatory and licence requirements through aerial surveillance, patrol vessels, observer coverage, dockside checks and data audits. DFO enforcement staff will investigate infractions of regulations and licence requirements and take court action where necessary. DFO may seek Departmental administrative sanctions against licence holders pending the outcome of several challenges to the sanctions process currently before the Federal Court of Canada.

DFO enforcement staff will work with the Board and other branches of DFO in the development of electronic surveillance systems. An initial target date of January 1, 1998, has been set for the offshore clam fishery participants to carry transponders in order to provide exact 24 hour per day, vessel locations at industry cost.

7.10 Industry Administered Enforcement Strategies

Pursuant to this Plan, if in any year a company catches more than its EA on a given Bank then, for the following year, that company´s EA on that particular Bank will be reduced by an amount equal to a minimum of five times the amount by which its catch in the previous year exceeded its EA.

Self-administered sanctions for infractions will be developed by the OCMB. Consideration will be given to the use of binding arbitration process to handle contested violations covered in the self-administered guidelines.

8. JOINT INDUSTRY/DFO RESEARCH PROGRAM

In 1994, a Joint Industry/DFO Program was initiated to study the Arctic surf clam population on Banquereau Bank and the Grand Banks. The main objective was to provide scientifically sound advice on sustainable yields. It is noteworthy that the industry felt that the stability afforded by the previous, multi-year Offshore Clam Management Plan permitted them to make that major investment in the scientific research of this resource.

8.1 Existing Projects

1997 was the final year of the original research project, which took place over three years and, in total, involved approximately 100 sea days of acoustical survey work as well as 105 sea days performing standard tows at survey points. The industry paid the costs for the research vessel cruises and DFO undertook the biological assessment of the data/samples collected, as funding permitted. Dredge efficiency studies were also included in the 105 sea days. Survey cruises began in August 1994 and all data collection and analysis were to have been completed in 1997.

The program was expected to cost $1.9 million with approximately $1.5 million contributed by industry and $0.4 million contributed by DFO. The Department and industry view the program as a model for their future cooperation in research projects.

8.2 Future Projects

During the 1998-2002 period, the industry (on a pro rata licence share basis) and DFO will jointly develop and fund (on a cost sharing basis to be agreed to project by project) an Arctic Surf Clam Research Program to further the knowledge about this species and the other mollusc species harvested as bycatch species in this fishery.

Projects currently under consideration are:

1. Natural mortality rate studies: design and implement a sampling program in an unfished area for two years in succession and from size/age data make estimates of mortality. Two or three small closed areas may be established from which the commercial vessels would land frozen shell stock (i.e., unprocessed except for freezing) for two consecutive years.

2. Studies of the effects of hydraulic gear: the effects of hydraulic dredging on the habitat, recruitment and incidental mortality of clams and other molluscs may be studied.

3. Introduction and implementation of electronic monitoring and reporting technologies in the fishery.

4. Dredge selectivity studies: studies to determine the size selection effect that the existing commercial dredges have on the catch and the resource may be undertaken.

5. Bycatch species: research on the biology/abundance of Greenland cockles and Northern propeller clams may be undertaken.

6. Other projects as may be developed and approved by the OCMB.

The OCMB will recommend annually to OCAC which research projects should be undertaken.

APPENDIX I

Offshore Clam Fishery Chronology

Appendix I (cont´d)

Offshore Clam Fishery Chronology, (continued)

APPENDIX II

Offshore Clam Advisory Committee

Terms of Reference

PURPOSE

The Offshore Clam Advisory Committee (OCAC) provides input and advice to Fisheries and Oceans Canada (DFO) on the conservation, protection and management of the offshore clam resource on Canada´s Atlantic Coast. The Committee will continue to serve as an open and public consultative forum on all issues affecting the offshore clam fishery.

ADMINISTRATION

STRUCTURE

Any changes to the structure and administration of the Committee will 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

The Committee will meet at least once a year or as otherwise called by the Chair. Meetings will be held in either Nova Scotia or Newfoundland.

EXPENSES

Non-DFO members do not receive funding from DFO for expenses incurred when 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

Meetings will be open to the public.

DFO WORKING GROUPS

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

ATTENDANCE

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

MEMBERSHIP

Chairperson - The Committee will be chaired by a DFO official, this position to rotate between the Scotia-Fundy Fisheries sector of the Maritimes Region and the Newfoundland Region. An industry co-chair may be appointed at the discretion of Committee members.

Members - The composition of the Committee membership will reflect the structure and nature of the offshore clam fishery. Membership on the Committee shall be made up of the two licence holding companies and related industry sectors that have a major involvement in the harvesting , processing and marketing of the resource, as well as representatives of government or provinces with significant shore-based infrastructure (i.e., Nova Scotia and Newfoundland) and DFO. Membership on this Committee reflects the inter-regional nature of the fishery, in terms of the Department´s Management Regions.

APPENDIX III

Offshore Clam Management Board

Terms of Reference

Purpose

The Offshore Clam Management Board (OCMB) will oversee and direct the implementation of the Management Plan.

Functions and Responsibilities

The Board will:

* Ensure the principles and provisions of the Management Plan are adhered to and respected.

* Recommend changes to the Management Plan consistent with the Plan´s principles.

* Receive and review scientific advice on the state of the resource.

* Develop and recommend scientific research programs to be funded on an agreed industry/DFO basis.

* Develop and recommend conservation and protection measures.

* Develop a penalty structure for infractions of the Fisheries Act, Regulations thereto or provisions of the Management Plan.

* Provide an annual report, with recommendations, on the offshore clam fishery to the Offshore Clam Advisory Committee.

* Consult with other persons, bodies and governments as deemed necessary.

Meetings

The Board shall meet at least once a year and may meet as often as it deems fit. Meetings will be held in either Nova Scotia or Newfoundland.

Subcommittees

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

Voting Procedures

No formal voting procedures will be established. The Board will operate on a consensus basis.

Minutes of Meetings

Preparation and distribution of the Minutes of the Board´s meetings to be the responsibility of the Board Chairperson.

Expenses

Members are responsible for their own expenses.

Attendance

If a member is unable to attend, an alternate may be nominated. The Chair should be notified by that member as far in advance of the meeting date as possible.

Membership

The composition of the Board´s membership is outlined below. The members will appoint an industry chair for two year terms. The position of Vice-Chair shall be held by a DFO official.

• Two representatives from each offshore licence holding company (i.e., Clearwater Fine Foods Ltd. and Seabay Clam) (4).

• Two representatives from DFO Science (2).

• Two representatives from DFO Fisheries Management (2).

Total membership: 8

Quorum

At its first meeting, the Board will determine what constitutes a quorum for future meetings of the Board, this to include at least one DFO official.

APPENDIX IV

Offshore Clam Advisory Committee

Members

Name, Organization, Address

Chairman

(Chairmanship is to rotate between Maritimes Region and Newfoundland Region)

F. Greg Peacock, DFO, Maritimes Region Halifax

Licence Holders

E. Roe, Clearwater Fine Foods Ltd. Halifax

G. Christopherson, Seabay Fishing Services Dartmouth

Processors

I. Bruce, Arctic Surf Co. St. John´s

R. Whynacht, National Sea Products Lunenburg

Provincial Government

G. Roach, NS Dept. of Fisheries & Aquaculture Halifax

G. Blackwood, Nfld. Dept. of Fisheries St. John´s

Federal Government (DFO)

V. Bradshaw, Resource Management, Maritimes Region Halifax

J. Nelson, Economics, Maritimes Region Halifax

T. Mahar, C&P, Maritimes Region Halifax

D. Roddick, Science, Maritimes Region Dartmouth

S. Naidu, Science, Newfoundland Region St. John´s

R. Russell, Resource Management, Nfld. Region St. John´s

Area Manager, Maritimes Region Sydney

Area Manager, Newfoundland Region St. John´s

Native Representatives - Notification of OCAC meetings

Cory Francis, Native Council of NS Truro

Dan Christmas, Union of NS Indians Sydney

APPENDIX V