A third shot at Prince William Sound spot shrimp

Here's the latest announcement from the Alaska Department of Fish and Game in Cordova:

April 30, 2010

Prince William Sound commercial shrimp season, third period

The second fishing period of the Prince William Sound Area E commercial shrimp pot fishery closed at 8 p.m. April 29. Preliminary catch reports indicate a harvest of approximately 6,000 pounds by 18 vessels.

The cumulative harvest of approximately 19,000 pounds is 34 percent of the 55,000-pound guideline harvest level. Therefore, a third fishing period will open at 8 a.m. on May 1 and close at 8 p.m. May 7.

This fishing period may be extended depending upon effort levels and reported harvest.

More information here.

Heads-up for Copper River salmon

The Copper River District will open for the season on May 13 with a 12-hour fishing period starting at 7 a.m., the Alaska Department of Fish and Game says.

More information here.

Dividing the assets

Deckboss has received reliable information about the pending split of Seattle-based American Seafoods and Anchorage-based Coastal Villages Region Fund.

The word is that Coastal, which owns 46 percent of American, will exit the business and take with it the following:

• The Northern Hawk, a 341-foot pollock factory trawler. The vessel is one of American's eight powerful factory ships.

• American subsidiary Pacific Longline Co., with its three big cod freezer longliners: the Deep Pacific, the Lilli Ann and the North Cape.

• A significant chunk of Bering Sea pollock quota.

We still don't have the official press release on this breakup, and we might not for some time.

I've heard for years that relations between the top brass at American and Coastal haven't been great.

For American, which is carrying a lot of debt, the split might be simply a business necessity, especially as the Bering Sea pollock stocks have declined sharply in recent years.

Coastal is one of six Alaska companies operating under the federal Community Development Quota program.

For Coastal, and for the CDQ program in general, this deal appears huge.

CDQ companies long have held partial ownership in some of the North Pacific's top fishing ships. But to own the likes of the Northern Hawk outright would be a first to my knowledge.

I spoke with a couple of Coastal managers the other day, operations director Trevor McCabe and investments director Rich Monroe.

They weren't at liberty to talk about any deal, and I didn't really push them. I figure these things happen when they happen.

Something big brewing with American Seafoods?

Deckboss advised you a couple of weeks ago about a possible divorce involving American Seafoods and one of its main owners, Coastal Villages Region Fund.

Now, apparently, Seattle-based American, operator of the largest fleet of Bering Sea pollock factory trawlers, is mounting a major refinancing.

A friend today passed along the following item from some sort of subscriber-based financial news service.

It would take, like, a Goldman Sachs trader to fully understand this thing, but it seems clear this is a big and possibly transformative deal for American.

American Seafoods preps bond deal for refinancing effort

American Seafoods this morning unveiled a $400 million, two-part bond deal that is part of a broader refinancing effort. The deal includes $275 million of six-year (non-call three) subordinated notes issued by American Seafoods Group and $125 million of senior notes with warrants from ASG Consolidated and ASG Finance, according to sources.

Bank of America and Wells Fargo are joint bookrunners on the deal. The notes are being issued under Rule 144A for life.

The units consist of seven-year (non-call three) senior notes and warrants expiring in 2018 to purchase 125,000 common shares representing about a 15% indirect ownership of ASG Consolidated, according to sources. The senior notes are conditionally PIK and the first two interest payments will be paid in kind. The first call on notes is at par plus 75% of the coupon.

The subordinated notes are rated B/B3, with a stable outlook on both sides. S&P also gave these notes a 4 recovery rating, which indicates expectations for average (30-50%) recovery in the event of a payment default. The PIK notes are not rated.

Proceeds from the deal will be used to repay debt. The bond deal accompanies a loan package that includes a $85 million, five-year revolving credit, priced at L+400, and a $390 million, five-year term loan, priced at L+400 with a 1.5% LIBOR floor, offered at 99. Bank of America Merrill Lynch, Wells Fargo and DNB Nordbanken are arranging the loan.

Mike Smith of Fairbanks named to Fish Board

This just in from the governor's office:

April 23, 2010

Gov. Parnell Announces Board of Fisheries Appointment

ANCHORAGE — Gov. Sean Parnell today named Mike Smith to the state Board of Fisheries.

Smith, of Fairbanks, has worked for the Tanana Chiefs Conference for 20 years in a variety of positions related to fisheries and resources, and currently serves as the organization's director of subsistence resources.

He has been a subsistence and commercial fisherman in the Interior and has gained experience in fisheries management issues as a member of the North Pacific Fishery Management Council's Bering Sea Salmon Bycatch Workgroup, the Yukon River Panel Technical Committee, the Arctic-Yukon-Kuskokwim Sustainable Salmon Initiative, and the Western Arctic Salmon Stock Identification Program.

Smith also has served as a state legislative aide and as a member of the Fairbanks Community Health Corp. and Fairbanks Habitat for Humanity.

Smith will begin service immediately, completing the remainder of the term formerly filled by Janet Woods, which runs through June 30, 2012. His appointment will be subject to legislative confirmation.

The seven-member Board of Fisheries is responsible for conservation and development of the state's fishery resources by setting seasons, bag limits, methods and means for the state's subsistence, commercial, sport, guided sport and personal-use fisheries. The board sets fishery management policy and makes allocation decisions for the Department of Fish and Game to implement.

Blotter

Plenty of law enforcement news today on The Brig.

Spot shrimp, round two!

The Alaska Department of Fish and Game in Cordova today issued the following announcement:

April 22, 2010

Prince William Sound commercial shrimp season, second period

The first fishing period of the Prince William Sound Area E commercial shrimp pot fishery closed on April 18 and produced a harvest of approximately 13,000 pounds from 109 landings by 68 vessels.

Gale-force winds during the fishing period affected participation in the fishery as well as fishery performance. Therefore, a second commercial shrimp pot fishing period will open at 8 a.m. April 24 and close at 8 p.m. April 29.

The hours that fishing gear can be operated is also increased to 12 hours per day. Shrimp pot gear may only be deployed and retrieved from 8 a.m. to 8 p.m. each day.

The maximum number of shrimp pots that may be operated from a vessel remains at 20.

More information here.

Northern Belle survivor: 'I prayed to God'

A crewman in a life raft dropped from a Coast Guard plane awaits a helicopter rescue. USCG Petty Officer Sara Francis photo

Here's a Seattle Times story about yesterday's sinking of the fishing vessel Northern Belle.

The U.S. Coast Guard rescued three crewmen, but the captain and a "boat dog" perished, the article says.

The sinking occurred in the Gulf of Alaska, about 50 miles south of Montague Island.

Coast Guard fishes four out of Gulf after sinking

From the U.S. Coast Guard:

April 20, 2010

Coast Guard recovers four from Seattle fishing vessel

ANCHORAGE — Coast Guard rescue crews from Air Station Kodiak recovered four fishermen at 8:39 p.m. today 50 miles south of Montague Island after the 75-foot Seattle-based fishing vessel Northern Belle sank.

Three of the four fishermen were reported to be suffering from hypothermia and a forth was unresponsive but receiving CPR.

It was reported the four fishermen were wearing survival gear when hoisted into the helicopter.

The helicopter crew transferred the fishermen to awaiting emergency medical personnel in Cordova at 9:20 p.m. for further medical treatment.

Coast Guard Communications Station Kodiak received the distress call on HF-FM radio around 5:30 p.m. from a crewmember reporting four people were onboard and they were sinking and abandoning ship.

The call was forwarded to the 17th District Command Center in Juneau.

The command center directed Air Station Kodiak to launch an MH-60 Jayhawk rescue helicopter and an HC-130 Hercules aircraft at 5:40 p.m.

The cutter Long Island, which was 40 miles northwest of the Northern Belle, also was diverted to the area and was to arrive on scene shortly after 8:30 p.m.

Hatchery showdown in Cordova

Deckboss wishes he could be in Cordova tomorrow to hear all the hatchery talk.

The Prince William Sound Aquaculture Corp. (PWSAC), a private, nonprofit operator of some of the world's largest fish hatcheries, wants to make millions more salmon each year, which could mean millions more dollars for commercial fishermen.

The hatchery operator would create additional fish by upping its "egg take," raising more fingerlings for release into the sea. A year or three later, the adult salmon would return home, many to be captured in nets.

At 9 a.m. tomorrow in Cordova, a panel called the Prince William Sound Regional Planning Team will meet to consider the proposed expansion.

The planning team makes recommendations to Alaska's fish and game commissioner, who has the last word.

Going into the meeting, it looks bad for PWSAC.

Here's a 51-page memo from Department of Fish and Game biologists generally opposing the hatchery expansion.

Among other concerns, they say the straying of hatchery-born pink, chum and sockeye salmon into local streams already might "pose an unacceptable risk to wild salmon stocks."

They cite studies that found pink salmon display "competitive dominance," grabbing food such as zooplankton and squid and thus hurting other species of salmon from as far away as Bristol Bay and Puget Sound.

What's more, it appears juvenile hatchery pinks can prey on herring juveniles, helping retard recovery of Prince William Sound's famously depressed herring stocks.

"While this hypothesis needs to be explored with additional research, the rapid decline of herring stocks in PWS did occur shortly after a large ramp-up in production of hatchery pink salmon," the Fish and Game memo says.

Because large numbers of hatchery pinks and chums are "likely having a detrimental impact to wild stocks of salmon and herring," the department's research and management biologists are advising against increased production of these fish, which are the main hatchery species.

OK, so that's the Fish and Game perspective.

At the Regional Planning Team meeting, I expect we'll hear a considerably different perspective from PWSAC.

It'll also be interesting to hear where the commercial fishing industry stands on this. Most Alaska fishermen I know are mother hens when it comes to the health of wild salmon stocks.

According to PWSAC, the time is right to boost production.

"The global salmon market has been steadily expanding over the past several years and Prince William Sound's local processing capacity has increased significantly on numerous fronts," PWSAC said in permit alteration requests to Fish and Game.

The operator said fish resulting from the proposed expansion "should be easily absorbed" in the marketplace.

Charter boat bust

Check out The Brig for news of an undercover investigation that turned up numerous violations on charter vessels operating out of Elfin Cove.

Your chance to make a difference in Petersburg

This just in from Julianne Curry of the Petersburg Vessel Owners Association:

Petersburg Mayor Al Dwyer has just established a Commercial Fishing Committee to address problems and solutions facing the future of Petersburg's commercial fishing fleet. Commercial fishing is the mainstay of our local and regional economy. If you are interested in maintaining the viability and success of Petersburg's commercial fishing industry, please consider submitting a letter of interest to Mayor Dwyer and City Clerk Kathy O'Rear. The committee will potentially have nine commercial fishermen and one processor. Of the nine fishermen, ideally a broad range of ages and gear groups would be represented. The committee will meet between one and three times before providing recommendations to the Petersburg City Council. Meeting dates will be chosen based on group availability.

If you would like to know more, or need help with your letter of interest, please contact the office.

Happy fishing,

Julianne Curry
Petersburg Vessel Owners Association

Westward to pay $570,000 in air pollution case

This just in from the U.S. Environmental Protection Agency:

April 19, 2010

Alaska seafood company agrees to pay more than $500,000 to resolve alleged environmental violations

WASHINGTON — Westward Seafoods Inc., the operator of a seafood processing plant in Dutch Harbor, Alaska, will pay a $570,000 civil penalty as part of a settlement agreement to resolve alleged violations of the Clean Air Act and the Emergency Planning and Community Right-to-Know Act, the Justice Department and U.S. Environmental Protection Agency announced today.

Under the settlement agreement filed in federal court in Alaska, Westward, a Seattle-based company, will be required to undertake four measures designed to improve the company's environmental compliance. The agreement requires the company to create a preventative maintenance and operations plan, develop and implement an annual training plan for all employees responsible for operating generating equipment, develop and submit to EPA an organizational chart that outlines staff that have environmental compliance responsibilities and develop internal procedures for submitting required reports to federal, state or local environmental agencies.

The settlement resolves a complaint that alleged that Westward had multiple violations of the Clean Air Act from 2002 until 2006. The complaint alleged violations including the burning of approximately 1.3 million gallons of diesel fuel with excessive sulfur; operating three diesel generators while air pollution control devices were inoperable, resulting in excessive emissions of nitrogen oxides; and failing to respond to repeated requests for information from state and federal inspectors.

High-sulfur fuel produces higher levels of sulfur dioxide emissions, which has adverse respiratory effects on humans, especially at-risk populations including children, the elderly and asthmatics. Operating the generators without required air control devices caused an increase in nitrogen oxide air pollution, which has adverse respiratory effects on humans and is a leading contributor to ground-level ozone.

The complaint also alleged violations of the Emergency Planning and Community Right-to-Know Act, a law designed to help local communities protect public health, safety and the environment from chemical hazards. The complaint alleged failure to annually report 80,000 pounds of ammonia in use and storage at the Dutch Harbor plant to the State Emergency Response Commission, local fire department and Local Emergency Planning Committee.

"We expect companies that handle hazardous chemicals and operate diesel generators to comply with the law. This settlement is designed to put a system into place that will prevent future violations of the environment and public safety laws," said Ignacia S. Moreno, assistant attorney general for the Justice Department's Environment and Natural Resources Division.

"We have laws regulating emissions and chemicals for a reason — these substances can have serious consequences for residents and the environment," said Edward Kowalski, director of the Office of Compliance and Enforcement in EPA's Seattle office. "We work closely with the state, and we will act when a facility is not responsive to state requests, or is putting the environment and Alaskans at risk due to unlawful practices."

The consent decree, lodged in the U.S. District Court for the District of Alaska, is subject to a 30-day public comment period and approval by the federal court. A copy of the consent decree will be available on the Justice Department Web site here.

More Exxon Valdez money coming

Since November 2008, lawyers for commercial fishermen and other plaintiffs in the Exxon Valdez case have been paying out punitive damages and interest in stages.

And the process is continuing.

On Monday, federal Judge Russel Holland approved yet another distribution totaling $24.5 million before deduction of attorney fees.

Here's the lengthy payout list for this round.

It shows some pretty big amounts to be distributed across 51 claim categories.

For example, I saw a couple of claims topping $200,000 in the Chignik salmon seine category, and several for $100,000-plus in the Kodiak salmon seine category.

According to the Seattle law firm handling the distribution, this payout could take "a number of weeks" to complete because of possible impairments on the claims.

Programming note

Uh, yeah, season six of Deadliest Catch premieres tonight.

This year's celebrity crab boats include the Cornelia Marie, Kodiak, Northwestern, Time Bandit and Wizard.

Big prize for Kodiak?

As part of a proposed $380 million bond package, state legislators are including $20 million for a new Alaska Department of Fish and Game research facility on Kodiak's Near Island.

The project long has been one of Kodiak's fondest legislative priorities.

The goal is to upgrade Fish and Game's existing building, constructed in 1973, with a new home featuring research capability.

The bond issue would be subject to a vote of Alaskans on election day Nov. 2.

The legislative session ends in six days.

Catching up with the council

Deckboss spent a good bit of time this weekend hanging around the North Pacific Fishery Management Council, which is meeting through Tuesday here in Anchorage.

This is a meeting that lacks a really big, sexy headliner issue.

But lots of interesting currents are running through the council chamber, and even more through the corridors and bars of the downtown Hilton hotel, where the 11-member panel is encamped.

Here's a sampler:

• You know it's an election year when top politicians start showing up at the fish council. So it was no surprise to see Alaska Gov. Sean Parnell appear and give a little speech on Thursday. Naturally, after the speech came a fundraiser for Parnell, who is running for a new term.

• Jim Balsiger, Alaska chief for the National Marine Fisheries Service, announced it might be months longer before we see a new "biological opinion" on the status of the endangered Steller sea lion. This is a matter of considerable dread for Alaska's billion-dollar bottomfish industry, which very possibly could face painful new restrictions or even a shutdown if the agency determines commercial fishing is jeopardizing the sea lion's recovery or adversely modifying its habitat. Many industry players suspect internal conflict among NMFS scientists could explain the continual delays in rolling out this new BiOp.

• The island community of St. Paul, smack in the middle of the Bering Sea, is very worried about a pending change in crab management. You'll recall that, a few years ago, the king and snow crab fisheries were "rationalized" or divided into fishing, processing and regional shares. Under the rules, some of the crab must be delivered to northern ports including St. Paul, which heavily depends on landings taxes for its economic survival. Well, fishermen and processors want a change to allow crab to be delivered elsewhere in the event of an emergency, such as ice blocking the St. Paul harbor or a tsunami damaging the town's processing plants. St. Paul fears such an emergency exemption could be abused, however, draining the island of crab. Last I heard, a deal was in the works to compensate St. Paul somehow for lost crab landings, perhaps by requiring compensatory deliveries in future years.

• Maybe the hottest issue at this meeting concerns Gulf of Alaska rockfish. As with crab, rockfish was "rationalized," but only temporarily. The council now faces a universe of choices on how to manage the rockfish harvest after 2011. One option is awarding perhaps 20 percent of the catch rights directly to processors as "protection" for their historic investment in the fishery. This would be an unprecedented step in Alaska fisheries management, and a highly controversial one at that. So we can expect to see plenty of rockfish wrangling at future council meetings.

• Another hot topic is the proposed closure of some waters off Kodiak and Afognak islands to keep boats targeting bottomfish from accidentally catching, or mangling, bairdi Tanner crab. Supporters of the closures point the finger mainly at trawlers for this crab bycatch. Trawlers are saying, hey, we don't want to see vast areas closed without clear scientific justification. We've previously seen some pretty tough lobbying here. Remember those pictures of purported extreme crab bycatch from a few months ago? As with many issues before the council, final action on this one is still a long way off.

• Efforts to invent an excluder device to keep Chinook salmon out of pollock trawl nets apparently are coming along swimmingly. Researcher John Gauvin made a presentation on a "flapper-style" excluder to the council's Scientific and Statistical Committee. The committee wrote: "The concept for a salmon excluder has evolved over a number of years, and results of the most recent test appear to be the most promising to date." The excluder plays on salmon tendencies to allow them to exit the net through an escape hole, while most pollock stay inside. Gauvin said several vessels intend to use the excluder during next winter's pollock fishery.

• The council plans to hold its June 2011 meeting in a very unusual place: Nome! That's a big logistical challenge for the town, as a council meeting can attract hundreds of agency staffers and other people and bed space is limited. Folks in Nome believe they can handle the meeting like the Iditarod, which obviously brings scores of people to the shores of Norton Sound.

• And finally, from the rumor department, here's the very biggest buzz I heard at the council meeting (uh, in the bars) this weekend: Coastal Villages Region Fund and the company it partly owns, American Seafoods, possibly are going to divorce. This could involve part of American's mighty fleet of factory trawlers splitting off into a new company, knowledgeable and only slightly tipsy industry sources told me. Deckboss has not inquired of either Coastal Villages or American about this, so make of it what you will.

OK by us

The Alaska Legislature yesterday confirmed most of Gov. Sean Parnell's appointees to various positions, including:

Thomas Kluberton, Board of Fisheries

Vince Webster, Board of Fisheries

Bruce Twomley, Commercial Fisheries Entry Commission

More from Adak

Followers of the Adak conflict will recall how, in February, a federal judge rejected Aleut Enterprise's effort to evict Adak Seafood from the island's only processing plant.

That was a big victory for the tenant.

Now, here's news of a significant victory for the landlord.

The Regulatory Commission of Alaska has issued a seven-page order dismissing Adak Seafood's attempt to force Aleut's subsidiary, Adak Petroleum, to sell fuel to the processor.

Adak Seafood wanted the RCA to regulate the fuel business, arguing it is a "public utility" as the only fuel supplier on the island.

The RCA disagreed.

It's all over

The combative 2010 Sitka Sound herring sac roe fishery finished up Friday as seiners came close to maxing out the quota.

Friday's fishing period of two hours and 16 minutes was the fourth and final opener of the season and produced an estimated catch of 4,050 tons, the Alaska Department of Fish and Game reported.

"This brings the total harvest for the season to 17,743 tons, about 550 tons shy of the season guideline harvest level of 18,293 tons," the department said.

As for violence, we had two vessel collisions sufficient to get the state troopers and the U.S. Coast Guard involved.

The base price negotiated between fishermen and processors prior to the season was $550 per ton, at least $50 less than last season.

Multiply $550 per ton against the 17,743-ton catch and you get a dockside fishery value of $9.8 million.

Of course, herring is all about the roe, or eggs, the female fish carry.

The roe market is almost exclusively in Japan, and depending on demand there, the processors might pay the fishermen a bonus in the coming months.

Coast Guard airlifts burn victim from Trident plant

From the U.S. Coast Guard:

April 5, 2010

Coast Guard conducts medevac on Easter from Akutan

KODIAK — A Coast Guard Air Station Kodiak HH-65 Dolphin helicopter crew deployed in Cold Bay medevaced a 57-year-old-male from Akutan to Dutch Harbor Sunday with second- and third-degree burns to his face.

The victim reportedly suffered burns when a paint can exploded in an incinerator at the Trident Seafoods processing plant. The 17th Coast Guard District command center received a call approximately 10:40 a.m. Sunday from Health Force Partners requesting Coast Guard assistance. The helicopter launched with two Guardian Flight medical personnel.

Upon arrival of the helicopter in Dutch Harbor, the victim and Guardian medical personnel were transferred to a Guardian Flight aircraft and flown to Anchorage.

An anniversary and a new addition

Today was a special one for Deckboss.

One year ago exactly, I posted the very first item on this blog.

It was about the Alaska Legislature heading toward the finish of its 2009 session. The new picture on top is a shot I took along the waterfront in Juneau, which again this month will see legislators adjourn for the year and head home.

To date, Deckboss has posted 413 items counting this one.

In the beginning, I was thrilled to tally 300 visitors in a day to this site. Lately it's been topping 1,000.

My thanks to everyone checking out Deckboss regularly for news and analysis about Alaska's iconic commercial fishing industry. Please pass the word to your friends.

And now a little announcement.

I've added a link to FishWrap, Pacific Fishing magazine's daily roundup of Northwest and Alaska fisheries news. I'm sure you'll find it a worthwhile stop each day. Just click on the logo on the right side of this blog.

Good fishing, be safe and thanks again for visiting Deckboss!

A few more Chinook

Sounds like Southeast Alaska commercial salmon trollers will have a slightly higher Chinook allocation this year at 163,864 fish.

Here's the press release.

Is this NASCAR or commercial fishing?

Well, we've had a bang-up herring season so far down in Sitka Sound, and I'm not talking about just the fine fishing.

First, we had the March 24 collision involving the seine boats Shady Lady and Confidence.

Now we have this report today from the Alaska State Troopers:

Location: Sitka
Type: Vessel collision
On 3/31/10 a collision was reported which occurred during the Sitka sac roe herring fishery. Investigation revealed the seiner F/V Agave, operated by Kenneth M. Jones, of Homer, collided with the seiner F/V Alaskan Rose operated by John Johanson, 53, of Klawock, during the opener on 3/30/10. The F/V Agave had approximately $1,500 in damage, while the Alaskan Rose had minor damage. No injuries were reported and alcohol does not appear to be a factor. The U.S. Coast Guard Marine Safety Office was contacted regarding the incident.

Delo out, Kluberton in, Webster stays

Looks like the governor has replaced Howard Delo on the Alaska Board of Fisheries.

Here's the press release:

April 1, 2010

Gov. Parnell Announces Board of Fisheries Appointments

JUNEAU — Gov. Sean Parnell yesterday reappointed Claude "Vince" Webster of King Salmon and appointed Thomas G. Kluberton of Talkeetna to the state Board of Fisheries.

The seven-member board is responsible for conservation and development of the state's fishery resources by setting seasons, bag limits, methods and means for the state's subsistence, commercial, sport, guided sport and personal use fisheries. The board sets fishery management policy and makes allocation decisions the Department of Fish and Game must carry out through its management of fishery resources. Appointees are subject to legislative confirmation.

Webster is finishing his first term on the board, and is the current board chair. He is a set gillnetter in the Kvichak district in Bristol Bay, and a drift gillnet fisherman in the Naknek district. Webster is also an engineering equipment operator for the National Park Service, and previously worked as facilities and maintenance director for the Lake and Peninsula Borough School District.

Kluberton is the innkeeper at Fireweed Station Inn near Talkeetna. He served as a member of the Matanuska-Susitna Borough Assembly from 2006-09, and served on the borough mayor's Blue Ribbon Sportsman's Committee during that time. Kluberton was co-owner of K&K Service & Rental, and director of market research for Netsys Technologies Inc. He also worked as an information systems and management consultant for the state of Alaska.

The remaining vacancy on the Board of Fisheries, created by the resignation of Janet Woods on March 26, will be filled within 30 days as required by statute.