OCS STUDY COMMERCIAL FISHING INDUSTRY OF THE GULF OF ALASKA SOCIAL AND ECONOMIC STUDIESSTUDIE US DEPARTMENTOF THE MINERALSMINERAL MANAGEMENT SERVICE ALASKA OUTER CONTINENTAL SHELF REGION TECHNICAL REPORTNO 159 CONTRACT NO 35 FINAL TECHNICAL REPORT COMMERCIAL FISHING INDUSTRY OF THE GULF OF ALASKA PREPAREDFOR MINERALSMINERAL MANAGEMENTSERVICE ALASKA OUTERCONTINENTALSHELFREGION LEASINGAND ENVIRONMENTOFFICE SOCIALAND ECONOMIC STUDIESSTUDIE UNIT BY NORTHERNECONOMICSECONOMIC WITH JON AND ASSOCIATESASSOCIATE RESOURCECON RESOURCEVALUATIONSVALUATION INC SEPTEMBER1994 THISTHI DOCUMENT IS DISSEMINATED UNDER THE SPONSORSHIPOFTHE US DEPARTMENTOFTHE IOR MINERALSMINERAL MANAGEMENTSERVICEALASKA OUTERCONTINENTALSHELF REGIONIN THE INTERESTOF INFORMATIONEXCHANGETHE UNITED STATESSTATE GOVERNMENTASSUMESASSUME NO LIABILITYFORITSCONTENT OR USE THEREOF ACKNOWLEDGMENTSACKNOWLEDGMENT THE STUDYTEAM WISHESWISHE TO GRATEFULLYACKNOWLEDGETHESUPPORTAND COOPERATIONOF THE RESIDENTSRESIDENT FISHERMENAND PROCESSINGPLANTPERSONNELIN THESTUDYCOMMUNITIESCOMMUNITIE AND STAFFOF NUMEROUSNUMEROU AGENCIESAGENCIE AND ORGANIZATIONSORGANIZATIONSUPPLYINGSECONDARYDATA THISTHI REPORTWAS PREPAREDUNDER THE HELPFULGUIDANCEOF MR TIM HOLDERMINERALSMINERAL MANAGEMENT SERVICE PNNCIPALAUTHORSAUTHOR WERE PATRICK BURDEN OF NORTHERN ECONOMICSECONOMIC JAMESJAME RICHARDSON OF JON OFJON LSAACSLSAAC AND ASSOCIATESASSOCIATE WITH ASSISTANCE FROM WILLIAM JENSEN AND HANSHAN RADTKE OF RESOURCEVALUATIONSVALUATION INC DOCUMENT IS AVAILABLE TO THE PUBLICTHROUGHTHE NATIONAL TECHNICAL INFORMATION SERVICE 5285 PORTROYALROAD SPRINGFIELDVIRGINIA22161 ABSTRACT THE GULFOFALASKA IS FRONTIERAREA FOROUTERCONTINENTALSHELFOCS PETROLEUMEXPLORATION AND AN AREA OF BOUNTIFULFISHERIESFISHERIE HARVEST IN THE NORTH PACIFIC IN ADDITION TO NUMBER OF INVESTIGATIONSINVESTIGATIONABOUT THE PHYSICALENVIRONMENT OF THE GULFOFALASKA THE MINERALSMINERAL MANAGEMENT SERVICE MMS HAS CONDUCTEDFIVESTUDIESSTUDIE SINCE 1980 TO PREDICTAND ANALYZEPOTENTIALIMPACTSIMPACT AND CHANGESCHANGEIN COMMERCIALFISHINGDUE TO OIL AND GAS ACTIVITIESACTIVITIE MMS ALSO CONDUCTSCONDUCT ECONOMIC AND DEMOGRAPHICFORECASTSFORECAST FORTHE REGIONSREGIONAND COMMUNITIESCOMMUNITIE THAT MAY HOST ONSHORE OCS ACTIVITIESACTIVITIE THE COMMERCIALFISHINGINDUSTRYIS THE MOST IMPORTANTAND MOST VOLATILEECONOMIC SECTORIN THE REGIONANYASSESSMENT OF PROSPECTSPROSPECTFORECONOMIC GROWTHAMONG THE COMMUNITIESCOMMUNITIE IS DEPENDENTUPON AN ACCURATE UNDERSTANDINGOFTHE IMPORTANCEOF THE FISHING INDUSTRY THE PURPOSEOF THISTHI STUDYIS TO PROVIDEMMS WITH AN UPDATEOF THE EARLIERCOMMERCIAL FISHING STUDIESSTUDIE WITH THE FOCUSFOCU ON CONTRIBUTIONOF THE INDUSTRYAT THE COMMUNITYLEVEL THE STUDY EXAMINESEXAMINE THE OVERALLSTATUSSTATU OFTHE COMMERCIAL FISHINGINDUSTRYIN THE GULFOFALASKA IDENTIFIESIDENTIFIE THE SHARE OF THE INDUSTRYCAPTUREDBYTHE SEVERAL PRINCIPALPORTSPORT AND DEVELOPSDEVELOP FORECASTOF THE COMMERCIAL HARVEST AND FISHINGRELATED EMPLOYMENT THE OBJECTIVESOBJECTIVEOF THE STUDYARE TO DESCRIBE THE CURRENTSTATUSSTATU OF THE GULFOFALASKA FISHING INDUSTRYAND THE NATURE OF THE INVOLVEMENTOF SOME OF THE PRINCIPALALASKA COMMUNITIESCOMMUNITIE THAT PARTICIPATEIN IT AND PROVIDE FORECASTOF FUTUREHARVEST LEVELSLEVEL AND EMPLOYMENTFORBOTH THE INDUSTRYAND THE PRINCIPALFISHINGCOMMUNITIESCOMMUNITIE THE GULFOFALASKA STUDYAREA DEFINED BYMMS INCLUDESINCLUDE STATE AND FEDERALWATERSWATER WITHIN THE 200MILE FISHERYCONSERVATION ZONE AND BOUND TOTHE EAST BYTHE SOUTHEAST ALASKA ARCHIPELAGOSOUTHCENTRALALASKA AND THE KENAI PENINSULA TOTHE NORTHAND THE ALASKAN PENINSULA AND THE ALEUTIAN ISLANDSISLAND TOTHE WEST COMMUNITIESCOMMUNITIE ADDRESSED IN THISTHI STUDYINCLUDE CORDOVAHOMER KENAI KINGCOVE KODIAK SEWARDLDUTTHH HARBORAND YAKUTAT THE PROJECTENTAILED LITERATUREREVIEWFIELD WORK IN THE STUDYCOMMUNITIESCOMMUNITIE AND UNPUBLISHED COMPUTERDATA BASE FILESFILE OBTAINED BYMMS FROM THE ALASKA COMMERCIALFISHERIESFISHERIE ENTRY COMMISSION AND NATIONAL MARINE FISHERIESFISHERIE SERVICE THISTHI INFORMATION WAS USED TODESCRIBE THE GULFOF ALASKA FISHINGINDUSTRYAND THE RELATIONSHIPOFTHE INDUSTRYTO THE STUDYCOMMUNITIESCOMMUNITIE BASED ON REVIEW OF THE LITERATUREDISCUSSIONSDISCUSSION WITH INDUSTRYAND AGENCY PERSONNELAND DEVELOPMENTOF SIMULATIONMODEL OFTHEALASKA FISHINGINDUSTRYRESEARCHERSRESEARCHERCONCLUDEDTHAT THE ECONOMIC BASE OF MOST GULF OF ALASKA COMMUNITIESCOMMUNITIE IS DEPENDENTON THE LOCALFISHINGFLEETSFLEET AND PROCESSINGPLANTSPLANT THE PRESENTHIGHUTILIZATIONLEVELSLEVEL FORMAJORFISHERYSTOCKSSTOCK WILL EXACERBATE ANY DOWNTURN IN RESOURCE LEVELSLEVEL BECAUSEWITH THE EXCEPTIONOF VERY LOWVALUE SPECIESSPECIE THERE ARE NO NEW FISHERIESFISHERIE LEFTTO EXPLOITAND COMPETITIONFORREMAININGSTOCKSSTOCK WILL INCREASE WITH THEEXCEPTIONOFKODIAK AND UNALASKADUTCH HARBORTHE FISHINGINDUSTRYIN COASTAL COMMUNITIESCOMMUNITIE IS DEPENDENTUPON THE TRADITIONALSALMON FISHERYFORMOST OF ITS REVENUESREVENUE MANY FISHERSFISHER HAVE ALTEREDTHEIRBOATSBOAT FROM SINGLEPURPOSESALMON FISHINGBOATSBOAT TO COMBINATION BOATSBOAT THAT CAN PURSUE OTHERSPECIESSPECIEIN ORDERTO INCREASE INCOME AND OFFSETTHE VOLATILITYASSOCIATED WITH RELIANCEUPON SINGLESPECIESSPECIE THE INDUSTRYIN KODIAK AND DUTTHH HARBOR ARE MORE ORIENTED TOTHE GROUNDFISHAND CRAB FISHERIESFISHERIE ALTHOUGHSALMON IS SIGNIFICANTCONTRIBUTOR TO ANNUAL HARVESTSHARVEST IN KODIAK THE GROUNDFISHINDUSTRYTRAWLFLEETIS PNMANLYDEPENDENTUPON WALLEYEPOLLOCKFORITS FINANCIAL HEALTHAND THE CRAB FLEETIS SUPPORTEDMAINLYBY OPILIOCRAB IN GENERALSALMON ABUNDANCE IN THE AREA IS NEAR ITS HISTORICPEAKALTHOUGHVARIABILITYEXISTSEXIST IN MANY MANAGEMENTAREASAREA GROUNDFISHSTOCKSSTOCK ARE AT LOW LEVELSLEVEL OFABUNDANCE ALTHOUGH MANAGEMENTEFFORTSEFFORT ARE RESULTINGIN SOME STOCKINCREASESINCREASE CRAB STOCKSSTOCK ARE ALSOAT LOW LEVELSLEVEL OF ABUNDANCE SOME INCREASESINCREASE IN ABUNDANCE ARE BEINGNOTED IN OPILIOAND DUNGENESSDUNGENES STOCKSSTOCK STUDYAREA RESIDENTSRESIDENT ARE PRIMARILYSALMONFISHERMEN LOCALRESIDENTSRESIDENT USE THEIRSALMONVESSELSVESSEL TO PURSUE HERRINGHALIBUTSABLEFISHAND PACIFIC COD TO LESSER DEGREE THE TRAWLFLEETAND THE LARGERVESSELSVESSEL IN THE CRAB FLEETPRIMARILYINVOLVEVESSELSVESSEL FROMKODIAK AND UNALASKADUTCH HARBOR PROCESSINGPLANTSPLANTIN UNALASKADUTCH HARBOR PRIMARILYHANDLE CRAB AND GROUNDFISHOTHER PLANTSPLANTIN THE STUDYAREA FOCUSFOCU ON SALMON ALTHOUGHOTHERSPECIESSPECIE MAY BE PROCESSEDPLANTSPLANT IN KODIAK HANDLE ALLSPECIESSPECIE HARVESTED IN THE GULFOFALASKA MOST PROCESSINGPLANTEMPLOYEESEMPLOYEE ARE NONRESIDENTSNONRESIDENT OF THE STATEAND THE LOCALCOMMUNITY LOCAL COMMUNITIESCOMMUNITIE HAVE AN INTERESTIN MAINTENANCE OFTHE FISHERIESFISHERIE RESOURCE BASE AND THE HEALTH OF THE FISHINGFLEETSFLEET BECAUSE COMMERCIAL FISHINGAND PROCESSINGARE MAJORSOURCESSOURCE OF EMPLOYMENTAND WAGE AND NONWAGE INCOME IN RURALCOMMUNITIESCOMMUNITIE THE LACK OF OTHER EMPLOYMENTOPPORTUNITIESOPPORTUNITIEMAKESMAKE FISHINGINCOME AND EMPLOYMENTEVEN MORE IMPORTANTIN ADDITIONIN THE MORE RURALAND SMALLER COMMUNITIESCOMMUNITIE FISH PROCESSINGCOMPANIESCOMPANIE DEVELOPTHEIR OWN DOCKELECTRICFUELAND WATER INFRASTRUCTUREWHICH ARE OFTEN USED DIRECTLYBY COMMUNITY OR ARE AVAILABLE AS BACKUP LOCAL TAXATION OF PROCESSEDAND LANDED PRODUCTSPRODUCTPROCESSINGPLANTSPLANTAND FISHINGVESSELSVESSEL AND THE RAW FISH TAX WHICH THE STATE SHARESSHARE WITH COMMUNITIESCOMMUNITIE ARE MAJORSOURCESSOURCE OF INCOME THESE REVENUESREVENUE FUND LOCALGOVERNMENTJOBSJOB SERVICESSERVICE AND PUBLICWORKSWORK IMPROVEMENTSIMPROVEMENTAND ALSO CONTRIBUTETO MUNICIPALPERMANENTFUNDSFUND IN SOME COMMUNITIESCOMMUNITIE SUCH REVENUESREVENUE ALSO ALLOW COMMUNITIESCOMMUNITIE MORE FLEXIBILITYIN DEVELOPINGOPERATINGAND MAINTAININGINFRASTRUCTURETHEYARE LESSLES DEPENDENTON USER CHARGESCHARGETO COVER COSTSCOST AND LESSLES DEPENDENTON STATE REVENUE SHARING THE PRESENCE OF SIGNIFICANTFISHINGINDUSTRYIMPROVESIMPROVETHE QUALITYOF LIFEIN LOCALCOMMUNITIESCOMMUNITIE BY PROVIDINGEMPLOYMENTAND INCOME CREATINGMUNICIPALREVENUESREVENUE PROVIDINGDEMAND BASED JUSTIFICATIONFORSTATE FUNDINGOF CAPITALPROJECTSPROJECTAND PROVIDING USER BASE FLEETAND PROCESSORSPROCESSORWHICH GENERATESGENERATESERVICECHARGEREVENUESREVENUE TO COVER OR ASSISTWITHOPERATIONSOPERATIONAND MAINTENANCE COSTSCOST AND AMORTIZATION OF INFRASTRUCTURE IV TABLE OF CONTENTSCONTENT INTRODUCTION 11 PURPOSE AND SCOPE OF TH STUDY 12 STUDYAREA CHARACTERISTICSCHARACTERISTIC OF THE GULF OF ALASKA FISHERIESFISHERIE 21 INTRODUCTION 22 REGULATORY AND MANAGEMENT STRUCTURE 221 MANAGEMENTAGENCIESAGENCIE 222 CURRENTAND FUTUREMANAGEMENTISSUESISSUE 23 FISHERIESFISHERIE RESOURCESRESOURCE 11 GROUNDFISH 27 40 24 HARVESTING SECTOR 54 241 DOMESTIC FLEET 54 242 JOINTVENTURE FLEET 78 243 GQEH FLEET 81 25 PROCESSING SECTOR 82 251 SHOREBASED PROCESSORSPROCESSOR 82 252 ICH FLOATINGPROCESSORSPROCESSOR 87 26 OTHER FISHERY DEVELOPMENT AND MARKETING ISSUESISSUE 92 CHARACTERISTICSCHARACTERISTIC OF GULF OF ALASKA FISHING COMMUNITIESCOMMUNITIE 94 31 REGIONAL SETTINGSSETTING 94 311 WESTERN GULF OF ALASKA 94 312 CENTRALGULFOFALASKA 95 313 EASTERNGULFOFALASKA 95 0RDQ 96 321 LPQ 96 322 SOCIOECONOMIC CHARACTENSTICSCHARACTENSTIC 96 323 TRUCQL CHARACTERISTICSCHARACTERISTIC 102 324 LNDUSTRCHARACTERISTICSCHARACTERISTIC 106 33 HOMER 115 331 TIONH 115 332 IQO AQ 115 333 CQTWEH CHARACTERISTICSCHARACTERISTIC 122 334 INDUSTRYCHARACTENSTICSCHARACTENSTIC 125 34 IL 133 341 SET 133 342 SOCIOECONOMIC AQ 133 REH AQ 344 INDUSTRYCHARACTERISTICSCHARACTERISTIC 143 INGC 151 351 OQN 151 352 IQO CHARACTERISTICSCHARACTERISTIC 152 353 INFRASTRUCTUREIQCSL 158 354 INDUSTRYRQA 161 36 KODIAK 172 361 SETTINGES 172 362 SOCIOECONOMIC AQ 172 363 INFRASTRUCTURECHARACTERISTICSCHARACTERISTIC 178 364 INDUSTRYCHARACTERISTICSCHARACTERISTIC