Saving Seafood

New England Fishermen File Lawsuit Over At-Sea Monitoring Mandate

WASHINGTON — December 9, 2015 — The following was released by Cause of Action:

Today, Cause of Action is announcing that its clients, David Goethel, owner and operator of F/V Ellen Diane, a 44-foot fishing trawler based in Hampton, N.H., and Northeast Fishery Sector 13, a nonprofit entity comprised of over 20 groundfishermen located up and down the eastern seaboard, are suing the U.S. Department of Commerce over a program that would devastate much of the East Coast’s ground fish industry.

The complaint challenges the legality of a federal mandate requiring groundfishermen in the Northeast United States to not only carry National Oceanic and Atmospheric Administration (“NOAA”) enforcement contractors known as “at-sea monitors” on their vessels during fishing trips, but to soon begin paying out-of-pocket for the cost of these authorities. In addition to the complaint, the Plaintiffs have filed a motion for a preliminary injunction that would protect fishermen from having to bear the costs of the at-sea monitors.

“Fishing is my passion and its how I’ve made a living, but right now, I’m extremely fearful that I won’t be able to do what I love and provide for my family if I’m forced to pay out of pocket for at-sea monitors,” said Goethel.  “I’m doing this not only to protect myself, but to stand up for others out there like me whose livelihoods are in serious jeopardy. I’m grateful to Cause of Action for giving my industry a voice and helping us fight to preserve our way of life.”

“The fishermen in my sector are hard-working and compassionate folks who would give the shirts off of their backs to help a fellow fisherman in need,” said Northeast Fishery Sector 13 Manager John Haran. “Our sector will be effectively shut down if these fishermen are forced to pay, themselves, for the cost of at-sea monitors.”

“By the federal government’s own estimate, this unlawful regulation will be the death knell for much of what remains of a once-thriving ground fish industry that has been decimated by burdensome federal overreach,” said Cause of Action Executive Director Dan Epstein. “Americans, particularly those who enjoy good, quality seafood, should be extremely concerned that an industry that has been around since before our nation was even founded is slowly going extinct, having been left out at sea by a federal government that seems more interested in caving to special interests than protecting jobs, families and consumers everywhere.”

 

BACKGROUND: 

“Catch Shares” are a fishery management tool that dedicates a secure share of quota allowing fishermen or other entities to harvest a fixed amount of fish. Since 2010, the National Oceanic and Atmospheric Administration has coerced New England groundfishermen like Mr. Goethel into joining a form of catch shares known as “sectors,” where they share quota, and are forced to invite federally-contracted monitors onto their boats anytime they set out to sea. 

Although the agency has claimed in Federal court that “Sector membership is voluntary; permit holders need not join a sector in order to be able to fish,” the reality is they have designed the alternative, known as the “common pool” to be so prohibitive, that fisherman are forced to join a sector to remain economically viable in the groundfish industry. 

Catch Shares were promoted heavily by environmental groups and NOAA during the first years of the Obama Administration. Former NOAA Administrator Jane Lubchenco, asserted that “fisheries managed with catch share programs perform better than fisheries managed with traditional tools.” She promised that catch shares are “the best way for many fisheries to both meet [federal mandates] and have healthy, profitable fisheries that are sustainable.” However, the promises made by Federal appointees and environmentalists have not been fulfilled in New England.

Unfortunately, it’s about to get much worse for these struggling fishermen, who are already policed by the U.S. Coast Guard, the National Oceanic Atmospheric Administration (NOAA) and agents from the U.S. Fish and Wildlife Service. Some time in “early 2016,”, NOAA will begin forcing them to pay the costs associated with having at-sea monitors watch over their shoulders.

This unlawful mandate will cost Mr. Goethel and the groundfishermen of Sector 13 hundreds of dollars per day at sea, which, for many of them, is the difference between sinking and staying afloat. In fact, according to a study produced by NOAA, nearly 60% of the industry will be rendered unprofitable if it is required to pay out of pocket for these monitors. 

NOAA has implemented the industry funding requirement for monitoring despite the fact that:

  • The Secretary of Commerce declared the groundfish fishery an economic disaster in 2012.
  • The industry continues to struggle with the precipitous decline in groundfish profitability, as evidenced by a four-year low in groundfish revenue of $55.2 million for Fishing Year 2013 – a 33.6 percent decline from Fishing Year 2010.
  • Congress has directed NOAA to use its appropriated funding to cover the cost of these at-sea monitors, which NOAA has refused to properly utilize and allocate in accordance with congressional intent.
  • NOAA is specifically required by statute to implement regulations that allow fishing communities sustainable prosperity and “minimize adverse economic impacts on such communities.”
  • As mentioned above, NOAA itself produced a study indicating that upwards of 60 percent of the groundfish industry could be rendered unprofitable if it is required to pay for at-sea monitors.

About David Goethel:

Mr. Goethel, who has been fishing for over 30 years, holds a B.S. in Biology from Boston University, and worked at the New England Aquarium as a research biologist before choosing to go back out to sea as a fisherman. Mr. Goethel served two terms on the New England Fishery Management Council, and has been an advisor to seven state and federal fishery management boards, including the Atlantic State Marine Fisheries Commission and the governor’s commission on marine biology. Mr. Goethel has been awarded the National Fisherman’s Highliners Award for his active involvement in cooperative efforts to research and manage marine fisheries resources, and is a member of the Yankee Fishermen’s Cooperative.

About Northeast Fishery Sector 13:

Northeast Fishery Sector 13 is a nonprofit organization comprised of 20 active groundfishermen who are permitted in Connecticut, Massachusetts, New York, North Carolina, Rhode Island and Virginia. The number of groundfishing activity within the sector has declined sharply in the past five years due to poor science and overregulation, which has resulted in quota cuts. Click here for more information about the sector.

About Cause of Action:

Cause of Action is a government accountability organization committed to ensuring that decisions made by federal agencies are open, honest, and fair.

MEDIA CONTACT: Geoff Holtzman, geoff.holtzman@causeofaction.org, 703-405-3511

Read the Complaint here

Read the Motion here

Watch a YouTube video to learn more about the case here

Fishermen sue to block impending fishing monitor costs

December 10, 2015 — PORTLAND, Maine (AP) — A group of East Coast fishermen is suing the federal government over a shift in the cost of at-sea fishing monitors that they say will cripple the fishery during an already difficult time.

Officials with the National Oceanic and Atmospheric Administration have said money for monitors in New England groundfisheries such as cod and haddock will be gone by early 2016. The monitors are trained workers who collect data to help determine future quotas on certain species of commercial fish.

Under the new rules, fishermen will have to pay for the monitors, which can cost about $800 per trip. Fishermen have spoken out for months against shifting the cost, saying it will sink many who are already dealing with the dwindling New England cod population and choking cuts to quotas.

A group including more than 20 groundfishermen is suing the federal Department of Commerce, which includes NOAA, in federal court in New Hampshire with a contention that the cost shift is illegal. The group is from New Hampshire, Connecticut, Massachusetts, New York, North Carolina, Rhode Island and Virginia and it is seeking an injunction to protect fishermen from having to pay up.

Read the full story from the Associated Press at San Francisco Chronicle

 

Rhode Island’s Groundfish Economic Assistance Program Now Accepting Applications

December 10, 2015 — The following was released by the Rhode Island Department of Environmental Management:

A new federal funding opportunity is available for Rhode Island fishermen through the Groundfish Disaster Economic Assistance Program, a direct-aid disbursement plan funded by the NOAA in response to the September 12, 2012 Northeast Multispecies (groundfish) disaster declaration by the Acting Secretary of Commerce. The groundfish disaster was declared for the 2013 fishing year in the states of Rhode Island, New Hampshire, Massachusetts, Maine, Connecticut, and New York. 

On May 28, 2014 the state fishery directors from Rhode Island and other affected states, in partnership with NOAA, announced a three-part framework for the distribution of $32.8 million in federal disaster aid monies to the New England groundfish industry. Rhode Island has completed the distribution of about $1.4 million to 43 pre-qualified federally permitted commercial groundfishermen (phase one) and this week began accepting applications for phase two of this framework.  In this phase, Rhode Island will distribute $519,656 for additional assistance to the Rhode Island commercial groundfish industry.

This state-specific program will be used by DEM to mitigate economic hardship experienced by the commercial groundfish industry not previously addressed by the phase one aid to qualified federal permit holders. This objective responds to cumulative economic impacts, which include lost harvest opportunities because of reduced quota allocations, high costs to operate within a sector, past debt incurred to survive the management program, and added investment needed to continue in sector programs, all of which have contributed to decreased revenue for a significant portion of the industry. 

Phase two of Rhode Island’s aid disbursement, the Groundfish Disaster Economic Assistance Program, extends direct-aid payments beyond the federal permit holders, to the captains and crew members who worked aboard the 43 vessels during the same four-year period when the reduced quotas were having the most impact on the commercial industry. It also extends direct-aid payments to the for-hire permit holders who were active in the groundfish fishery during the same period, as well as captains and crew associated with those permitted vessels, thereby addressing the impacts incurred by that sector of the groundfish industry.

Rhode Island’s Groundfish Disaster Economic Assistance program addresses the restoration and sustainability of the State’s commercial groundfish industry by also providing direct aid for the administration of RI-based sectors, which play a central role in the management program and are in need of financial support to remain viable. It is the goal of this disaster aid to ensure the needs and interests of the groundfish community are being met so that we can promote long-term stability in the Rhode Island commercial fishing industry. Additional information and applications can be found online at www.dem.ri.gov/groundfish.htm. Interested applicants should contact the program administrator, Amy MacKown, at 401-782-4492 or amy.mackown@dem.ri.gov. The deadline to submit an application is January 15th.

Alaska working on flatfish tax fix to capture foregone revenue

December 9, 2015 — A state tax rate glitch let groundfish trawlers off the hook for more than $10 million of fishery taxes in the last half decade, and there’s no concrete fix just yet.

The fishery resource landing tax taxes groundfish based on ex-vessel price. Processors turn flatfish caught as bycatch into low-value fishmeal, so the only known ex-vessel price for certain flatfish species is artificially low. Nine species have this price uncertainty, but most flatfish volume comes from yellowfin sole and Atka mackerel.

By only having an ex-vessel value based on the price paid for bycatch turned into fishmeal, the state has no idea what the ex-vessel value is for the direct flatfish fishery that has annual harvests measured in hundreds of thousands of metric tons.

According to state research estimates, the state has lost out on $1.8 million to $2.5 million per year, or more than $10 million over the last five years. Researchers haven’t yet looked back further due to paucity of data, but the fishery resource landing tax has existed since 1994.

Lori Swanson, assistant executive director of groundfish trawler group Groundfish Forum, did not say whether the industry knew it had been underpaying since the tax’s birth.

“They pay what the state tells them to pay,” she said.

The state doesn’t really know

The Department of Revenue, however, hasn’t been calculating a realistic view of fleet’s tax rate, and is only starting to rework the system. The state began this tax specifically for factory trawlers and catcher-processors, but overlooked a systemic flaw from the beginning.

“It’s actually two things,” said Kurt Iverson, a research analyst with the Alaska Department of Fish and Game. “First, a very small amount of the total harvest is in the (Commercial Operator’s Annual Report), and on top of that, that harvest is not representative of a true ex-vessel valuation because it’s coming in as bycatch.”

Anna Kim, the Department of Revenue chief of revenue operations, said she can’t speculate why the issue went for so long without being noticed. Iverson said the problem isn’t intentional. The Department of Revenue simply attached the tax to shoreside sales, which don’t happen for some species.

Read the full story at Alaska Journal of Commerce

 

Pacific Seafood sues government calling fishery quota restrictions illegal

December 8, 2015 — California-based groundfish catcher and processor Pacific Seafood Group has sued the US government seeking to overturn what they say are “illegal” regulations that threaten the company’s future.

A company subsidiary, Pacific Choice Seafoods, which operates a processing plant as well as vessels that fish the Pacific Coast groundfish limited-entry trawl fishery, filed suit on Dec. 4 in a northern California federal court against the National Marine Fisheries Service (NMFS) and its ultimate overseer, US commerce secretary Penny Pritzker.

The company wants the court to overturn four NMFS regulations established in 2010 upon recommendation of the Pacific Fishery Management Council that set up an individual fishing quota (IFQ) system for the fishery.

This includes a measure known as the “aggregate control limit” which restricts the amount of quota shares permit holders can possess to 2.7% of all quota shares held by all permit holders in the fishery, according to the lawsuit. The rules stated that quota holders had to divest shares in excess of the limit by Nov. 30, 2015.

Read the full story at Undercurrent News

 

Region’s struggling fishermen may get break on monitors

December 8, 2015 — The region’s fishermen, who have railed for months against the possibility of having to pay for the government observers who monitor their catch, may be getting a bit of a reprieve.

The New England Fishery Management Council, which oversees the region’s industry, approved measures last week to alleviate some of the burden fishermen are facing to cover the costs of the observers monitoring their catch.

Earlier this year, federal regulators decided to end the multimillion-dollar subsidy that paid for the program, handing off the cost to the fishermen. The observers, under federal mandates, accompany fisherman on about a quarter of their trips as a way to curb overfishing.

A federal report this year found the new costs could cause 59 percent of the region’s once-mighty groundfishing fleet to lose money. Many of the estimated 200 boats remaining are already struggling, given sweeping government-imposed cuts to quotas of cod and other bottom-dwelling fish.

The council’s recent action, if approved by federal regulators, could reduce by half the number of trips that observers are required to take with the region’s groundfishermen. The new regulations — which the government has estimated could cost fishermen as much $710 per trip with an observer — would reduce that requirement from nearly a quarter of trips to as low as 13 percent.

Read the full story at the Boston Globe

 

‘We don’t leave our friends behind’

December 5, 2015 — The story is as chilling as it is all too familiar here in America’s oldest fishing village, where for centuries fishermen, in pursuit of the ocean’s bounty, have fallen prey to nature’s full force and elements that inexorably overwhelm all that is human.

On Thursday, in the rushing darkness of a winter twilight, the three-man crew of the 51-foot Orin C went into the water and only two emerged safely onto the deck of the U.S. Coast Guard’s 47-foot lifesaving boat out of Station Gloucester.

David Sutherland, 47, of 10 Montvale Ave. — known to all along the waterfront as Heavy D — died in the water as the Coast Guard tried to rescue him after his slime eel boat sunk about 12 miles off Thacher Island.

“At the end of the day, we managed to save two men, but we lost one and that’s heartbreaking for his family, this community and for us,” said U.S. Coast Guard Chief Warrant Officer Robert Lepere, the commander at Station Gloucester.

The sinking is being investigated by the National Transportation Safety Board with assistance from the Coast Guard. No cause of death has been released.

The story began to unfold about 9:30 Thursday morning, when Phil Powell of Swampscott, captain of the groundfishing boat Foxy Lady, received word from Sutherland that the Orin C was taking on water and in trouble.

Read the full story at the Gloucester Daily Times

 

 

New England’s struggling cod fishery to see new quota cut

December 2, 2015 — PORTLAND, Maine (AP) — Fishing managers on Wednesday recommended a shift in the amount of fish New England’s beleaguered cod fishing businesses should be allowed to catch for the next few years, which would reduce the limit for some fishermen.

The New England Fishery Management Council met to consider quotas for several important food fish, including the Gulf of Maine cod, which once was the backbone of the New England fishing industry and is now in decline. The council recommended a slight rise in quota for Gulf of Maine cod along with a steeper quota cut for Georges Bank’s cod.

Tough quotas and low availability have made local cod difficult to find in New England, and when it is available, customers must pay more for it than they would for foreign cod. Ben Martens, executive director of the Maine Coast Fishermen’s Association, called the reduction in Georges Bank quota “a substantial cut to the industry.”

Inability to catch cod also prevents fishermen from landing species such as haddock, pollock and hake that live in the same areas, Martens said.

“It’s going to be hard for boats of any size to go out there and run a groundfish business,” he said.

Read the full story from the Associated Press at the San Francisco Cronicle

 

 

NOAA to pay for at-sea monitors into 2016

December 3, 2015 — NOAA Fisheries again has extended the timetable for shifting the cost of at-sea monitoring to the groundfish industry, saying one of its monitoring contractors will have sufficient funds to continue paying for the program into 2016.

The National Oceanic and Atmospheric Administration announced on Wednesday that one of its three at-sea monitoring contractors has enough money remaining to fund at-sea monitoring for an estimated 250 to 300 sea days into 2016 and that the other two contractors will sub-contract to provide the necessary number of monitors to ensure full coverage for all groundfish vessels until the final allotment of funds runs out.

A sea day is defined as a calendar day which any monitor spends at sea on a covered fishing trip.

Teri Frady, a spokeswoman for NOAA, said approximately $200,000 remains for at-sea monitoring and the agency estimates that money will last until sometime early in 2016 — possibly around the end of February.

Read the full story at the Gloucester Daily Times

 

 

Federal funding for at-sea monitoring likely to extend into 2016

December 2, 2015 — The following was released by NOAA Fisheries:

We are pleased to announce an update on the status of federal funding for at-sea monitors in the New England Groundfish fishery. We have been informed that industry has facilitated an initial agreement among the three at-sea monitoring contract providers that may allow the remaining contract funds remaining to cover at-sea monitors after December 31 across the fleet, until those funds are expended, through sub-contracting arrangements. 

We have continued to track the expenditures of the three at-sea monitoring contract providers through the month of November and, as we anticipated, two of the contract providers have been on target to expend all monies by December 31, 2015. However, the third contract provider continues to spend funds at a slower rate because this company provides observers for only a small percent of the fleet (approximately 2% of the effort). 

Approximately $200K is currently available on this at-sea monitoring provider’s contract. This would allow for approximately 250 to 300 sea days of at-sea monitoring. (A “sea day” is a calendar day that the monitor spends at sea on a covered fishing trip. The rate at which those days will be used depends on how much fishing occurs.)

Following the use of the remaining 250-300 sea days of at-sea monitoring, the industry will be required to begin paying for all at-sea monitoring. We anticipate this occurring in early 2016. 

It is important to note that if the subcontracting arrangement the industry has negotiated is not effective, the transition of costs would occur as previously announced. NOAA cannot compel the companies to enter into such an arrangement, nor would it be equitable for NOAA to continue to cover only a portion of the fleet while requiring the rest of the fleet to pick up observer costs.