Commercial fisheries licensing rules and policies reference document Pacific region
Halibut
Categories L and FL
Licence category
A commercial or communal commercial Halibut licence (category L or FL) is required to participate in the directed commercial Pacific Halibut fishery. Category L licence eligibilities are limited entry and vessel based. Category FL licence eligibilities are party based and the eligibility must be designated to a registered Canadian commercial fishing vessel that meets established length restrictions. Category FL licences are held by a First Nation.
Vessels authorized to fish under authority of a Halibut licence are also permitted to:
- fish for Schedule II Species according to the conditions of each licence;
- catch and retain other Groundfish species as outlined in licence conditions;
- transport fish caught by other vessels; and
- be designated to fish under the authority of a category Z licence.
Licence category background
Limited entry was introduced in the halibut fishery in 1979. To qualify, vessels must have recorded commercial catch of 1,360 kg (3,000 lb.) of Halibut (dressed head-off weight) during 1977 or 1978. Ten halibut licences were issued to Aboriginal individuals who depended on halibut for a major portion of their income and who utilized leased vessels owned by processing companies. These halibut licences were initially party based eligibilities but were later converted to vessel based licence eligibilities.
A two-year trial of Individual Transferable Quota (IVQ) in the halibut fishery began in 1991. IVQs were set for each licence eligibility based on a combination of vessel catch history and vessel length. In 1993, reallocation and stacking of halibut IVQ were allowed on a trial basis. Each licence eligibility received quota in two equal shares and each share was expressed as a percentage of the total allowable catch (TAC). Shares were based upon the allocation formula adopted in 1990. The success of the halibut IVQ program allowed for its continuation.
For 1994, the trial program for halibut IVQ’s was again extended. There were further modifications for 1994. Again, the objective of the changes were to allow more flexibility for the fleet in the area of temporary quota transfers and in the area of permanent halibut category L licence transfers.
The transfer and stacking of halibut IVQ was allowed on a trail basis for the 1994 Halibut fishery as follows:
- Each initial Halibut licence quota has been split into two equal shares. A total of 870 IVQ shares is available among 435 licensed vessels. Each share can then be expressed as a percentage of the Halibut TAC and share will vary in size depending on the allocation formula adopted in 1990.
- Quota shares can be transferred among Halibut licensed vessels only and are not constrained by vessel size. Quota shares can be transferred without transferring the Halibut licence. It will be possible for a Halibut licence to exist without quota shares attached to it.
- A maximum of four shares can be held or fished by a Halibut licensed vessel in 1994.
- In 1994, the restrictions on the number of quota share transfers has been removed. It has been changed from the maximum of two share transfers per vessel, which was permitted in 1993. A quota share transfer is defined as the transfer of one share from a licensed Halibut vessel onto a licensed Halibut vessel.
- All quota share transfers must be approved by DFO prior to fishing those shares.
- Once a quota share has had landings validated against it, the remainder of that quota share can not be transferred.
- Quota share transfers will only be permitted on a temporary (annual) basis.
Due to a Federal Court Trial Division decision in 1996, DFO implemented a new IVQ formula in 1997. However, when the Federal Court of Appeal overturned this decision in 1998, the Minister of Fisheries and Oceans decided to return to the original formula. The changed IVQ formula in 1997 resulted in an average benefit of 9,145 pounds for 38 licence eligibilities and an average disadvantage of 880 pounds for the other 395 licence eligibilities. To compensate those who lost quota in 1997, IVQ adjustments were made in equal amounts over three years: 1999, 2000, and 2001.
During this time, a maximum of two quota share reallocations between Halibut licence eligibilities was permitted, vessels were limited to fishing four shares in a season, and it became possible for a licence eligibility to have nil shares attached. All quota share reallocations had to be approved by DFO prior to fishing those shares and, once a share had landings validated against it, the remainder of that quota could not be reallocated.
As of 1999, quota allocation was no longer based on shares; instead, it was negotiated on the basis of poundage. Quota may also be reallocated either temporarily or permanently. Vessel owners may permanently reallocate all quotas except for .01149 per cent of the TAC or they may temporarily reallocate as little as one pound of quota. A licence eligibility may not hold more than one per cent of the TAC, except licence eligibilities/vessels that fished more than one per cent of the TAC in any year from 1993 to 1998. These licence eligibilities may hold quota up to their individual maximum.
In 2006, a three-year pilot plan was introduced in the commercial groundfish fisheries. The pilot was intended to strengthen conservation in commercial groundfish fisheries in the Pacific Region through a range of measures, including improving bycatch monitoring, reducing discard, and making fish harvesters accountable for their bycatch.
A comprehensive management plan for all groundfish fisheries (e.g., Schedule II Species, Groundfish Trawl, Rockfish hook and line, halibut, and sablefish) was also created to replace all of the individual plans that were produced in previous years. This new Integrated Fisheries Management Plan (IFMP) for Groundfish was released on April 26, 2006.
Licence renewal fee
The annual renewal fee for a commercial category L licence is calculated as follows:
- $310.00 multiplied by the number of tonnes of Halibut allocated, minus 40 per cent up of that product up to a maximum reduction of $1,000.00.
There is no annual licence fee for a communal commercial category FL licence.
Licence issuance
A commercial halibut licence must be renewed, and the renewal fee paid, every year by February 20th to retain the privilege to be issued the licence in the future. This means that vessel owners must renew the licence whether they intend to fish or not. If the licence is not renewed by February 20th, the licence will cease and DFO will not be able to consider a request to issue that licence in the future.
Every year, communal commercial halibut licence eligibility holders must also designate a fishing vessel to hold the licence by submitting a request through the National Online Licensing System. Instructions are available.
Prior to licence issue, vessel owners and licence eligibility holders must ensure that:
- any ministerial conditions placed on the licence eligibility have been met; and
- any conditions of the previous year’s licence have been met.
- the designated vessel's overall length does not exceed the maximum vessel length of the category FL licence eligibility.
Licence amendments
The halibut licence eligibility must be issued before a request for licence amendment or reallocation of individual transferable quota will be processed.
The vessel owner/master must have on board a valid halibut licence amendment prior to fishing. This amendment outlines the total amount of fish by species that the vessel may land for the fishing season, so without it, the vessel is not permitted to catch, retain or land any fish.
A Request for Licence Amendment form must be completed by the vessel owner, licence eligibility holder, or designated agent and faxed to the Groundfish Management Unit at 604-666-8525.
Licence documents
Halibut licence documents are valid from the date of issue to February 20th of the next calendar year.
Vessel owners or licence eligibility holders may reprint any lost or destroyed licence documents using the National Online Licensing System (NOLS).
Licence status report
The licence status report provides a listing of all current halibut IVQ and rockfish holdings for category L or FL licensed vessels, including caps, reallocated quota, catch-to-date, and balance of uncaught quota for any given date. A licence status report may be obtained by calling the Groundfish Management Unit at 604-666-5865.
Vessel replacement
The owner(s) of a category L licensed halibut vessel may apply to replace the commercial fishing vessel. Both the replacement vessel and the vessel being replaced must have a survey on file with the Pacific Fishery Licence Unit or the survey must be submitted with the vessel replacement application. Vessels must be surveyed according to DFO guidelines.
Vessel owner(s) should also note the following rules:
- A single category L halibut licence eligibility may be placed on a vessel that does not hold another vessel based licence eligibility up to the overall vessel length (OAL) of the original vessel, which is the vessel licensed as of January 31, 1993.
- A single category L halibut licence eligibility may be placed on a vessel that holds another vessel based licence eligibility with Schedule II Species privileges, up to the maximum vessel length (MVL) of the Halibut licence eligibility. The MVL being the length of the original vessel licensed as at January 31, 1993, plus 25 feet.
- A category L halibut licence eligibility may be separated from other licence eligibilities and placed on a vessel that does not exceed the MVL, as long as the replacing vessel holds another vessel based licence eligibility with Schedule II Species privileges.
- When the intention is to make the halibut licence a stand-alone licence and the replacing vessel has a Schedule II Species licence eligibility, the Schedule II Species licence eligibility must be relinquished (permanently retired). When the placement is temporary, the Schedule II Species licence eligibility is held until the halibut licence eligibility is permanently placed on a vessel.
- When a Schedule II Species licence eligibility is relinquished from a vessel with an OAL less than the MVL but greater than the OAL of the vessel licensed as at January 31, 1993, the licence eligibility may be placed on an unlicensed vessel up to the OAL of the vessel that relinquished the Schedule II Species eligibility. There is no change to the MVL for the halibut licence eligibility.
- Vessels may hold more than one halibut licence eligibility in a year, but not at the same time.
- Vessels may not fish halibut under the authority of more than one licence eligibility a year.
- When vessel owners wish to swap two married Halibut licence eligibilities, neither may exceed the MVL assigned to each licence eligibility.
Communal commercial licences are not eligible for vessel replacement.
The Application to Replace a Commercial Vessel is available.
Temporary vessel replacement
The temporary placement of halibut licence eligibilities is only allowed when the vessel to be replaced becomes a total loss.
Temporary replacement vessels may not exceed the MVL of the halibut licence eligibility. The MVL is the length of the original vessel licensed as of January 31, 1993, plus 25 feet.
Temporary replacement vessels may not have harvested halibut in the current Halibut-fishing year.
If a halibut licence eligibility is temporarily split from other licence eligibilities, the remaining eligibilities may not be placed on a third vessel.
If you require further discussion or information on the above mentioned vessel replacement policies, please contact the Pacific Fishery Licence Unit.
Quota reallocations
The Groundfish Management Unit processes requests for reallocations of Halibut IVQ and Rockfish by-catch holdings. A completed Request for Reallocation of Halibut IVQ and/or Rockfish Holdings form (available at www.pac.dfo-mpo.gc.ca/fm-gp/commercial/ground-fond/contact-en.html) must be faxed to the Unit at 604-666-8525. For permanent reallocations, all vessel owners of record must sign the form. For temporary reallocations, only the licence eligibility holder or one vessel owner must sign the form.
Note that licence amendments must be on board when fishing.
Fish harvesters should refer to the current Integrated Fisheries Management Plan for guidelines regarding the reallocation of Halibut IVQ. Any questions with regard to these guidelines should be referred to the Groundfish Management Unit by calling 604-666-5865. Any matters relating directly to the management of the fishery or quota such as quota reallocations and caps will also be handled through the Unit.
Logbooks
Logbooks may be obtained through Archipelago Marine Research by calling
250-383-4535
or toll-free 1-888-383-4535
- Date modified: