1. Red Snapper Individual Fishing Quota Review August 17, 2010 Tab B, No. 11(a)

2. Outline Overview of the Red Snapper IFQ Program Landings and Share Ownership Review Requirements Objectives of the IFQ Program Program Review

3. Overview - Red Snapper IFQ  Duration: No time limit – program review every 5 years  Ownership Cap: Maximum % issued to a recipient during initial apportionment  Initial Eligibility: Owners of a Class 1 or Class 2 license  Initial Apportionment:  Class 1: 10 consecutive years between 1990 -2004  Class 2: 5 years between 1998 – 2004  Historical Captains: 7 years between1998-2004  continued 

4. Overview - Red Snapper IFQ  Appeals Process: RA review (no hardship cases)  Transfer: Commercial reef fish permit holders during the first 5 years; all US citizens and permanent residents thereafter  Quota Adjustments: Proportional -based on share ownership  Use it or Lose it: No minimum landings requirement  Cost Recovery: 3% of ex vessel value of landings

5. Landings & Cost Recovery Fees LandingsValueQuota%Cost Recovery Year (gutted wt)($)(gutted wt)QuotaFees Collected 20072,867,326 $10,127,176 2,986,48696.0%$303,816 2008 2,237,480 $8,262,729 2,297,29797.4%$247,815 20092,237,399$8,005,1842,297,29797.4%$240,157

6. Share Ownership Share Percentage 1/1/200712/31/200712/31/200812/31/2009 0.0001% - 0.0049% 159150146142 0.0050% - 0.0099% 91766858 0.0100% - 0.0999% 184158147130 0.1000% - 1.9999% 104949392 2.0000% - 2.9999% 3563 3.0000% - 6.0203% 5667 Total 546489466432 Source: Strelcheck – NMFS-SERO

7. Share Distribution – by State Source: Strelcheck – NMFS-SERO Shareholder's Percentage of Shares as of State of1/1/2000712/31/200712/31/200812/31/2009 Residence AL/MS9.60% 9.50%8.80% FL44.00%42.30% 43.90% LA11.60%10.70%10.60%10.20% TX32.90%35.70%35.80%35.30% Other1.80%

8. Review - Requirements Section 303A(c)(1)(G) of the MSA states that “Any limited access privilege program (…) shall – include provisions for the regular monitoring and review by the Council and the Secretary of the operations of the program, including determining progress in meeting the goals of the program and this Act, and any necessary modification of the program to meet those goals…”

9. Objectives of the IFQ Program The purpose of the red snapper IFQ program is  to reduce overcapacity in the commercial fishery and,  to eliminate, to the extent possible, the problems associated with derby fishing.

10. Program Review NMFS has initiated a review (Agar and Keithly)  Evaluation using logbook data and IFQ database Indicators (effort, transfers, landings, share prices) Economic performance (stochastic frontier analysis) Cost adjustments, Supply responses  IFQ Participants Survey Attitudes towards the program Socioeconomic assessment of the program continued

11. Program Review Additional issues Council would want to address Are other reviews warranted