Thursday, October 8, 2026

EXEMPTED FISHING -PERMITS FOR SOUTH ATLANTIC RED SNAPPER AGAIN FACE JUDICIAL REVIEW

 

Last May, the National Marine Fisheries Service issued exempted fishing permits to the four South Atlantic states, which would have extended the recreational red snapper season fifteen- (in Florida) to thirty-fold (in North Carolina, South Carolina, and Georgia), and likely led to gross overfishing, while ignoring its own regulations regarding EFP issuance.  As a result, after commercial fishing interests challenged NMFS’ action, a federal district court enjoined any fishing under such permits.  The states subsequently withdrew their applications for such permits.

However, three of the states—South Carolina, Georgia, and Florida—quickly revised their permit applications, in an effort to address the issues raised by the court, and resubmitted them to NMFS.  NMFS, to no one’s surprise, issued the new exempted fishing permits in September, which will result in a 14-day red snapper season for anglers in each of the three states.

And once again, members of the commercial fishing sector, who feel their interests in the South Atlantic red snapper fishery is threatened by the issuance of the permits, are challenging NMFS’ action in court.

The new legal challenge is titled Ariel Seafoods of Florida, Inc. v. Howard Lutnick, and like the previous action, has been brought in the United States District Court for the District of Columbia.  However, unlike the first action, where NMFS’ failures to comply with the law were obvious, the arguments in Ariel Seafoods are somewhat more nuanced, but nonetheless compelling. 

In both cases, the key questions are essentially the same:  Do the terms of the exempted fishing permits conflict with the explicit language of the Magnuson-Stevens Fishery Conservation and Management Act and existing NMFS regulations?  And if they do, does that conflict invalidate the permits?

In May, the Court answered both questions in the affirmative.  Whether that will again be the case is difficult to predict.

The complaint in Ariel Seafoods makes three claims for judicial relief. 

The first claim is that

“DEFENDANTS LACK THE AUTHORITY TO ISSUE EXEMPTED FISHING PERMITS FOR SOUTH ATLANTIC RED SNAPPER THAT VIOLATE STATUTORY REQUIREMENTS AND/OR DOING SO WAS ARBITRARY AND CAPRICIOUS.”

This was a key point in the lawsuit decided last May, Southeast Fisheries Association, Inc. v Howard Lutnick, where the Court declared that

“Traditional tools of statutory analysis show that any EFPs the NMFS issues must comply with the [Magnuson-Stevens Act].  The MSA created a [c]ooperative research and management program…to address needs identified under [Chapter 38 of Title 16 of the United States Code and any other marine resource laws enforced by the Secretary of Commerce].  Chapter 38, titled ‘Fishery Conservation and Management,’ identifies several such needs…Section 1867(d) of the MSA authorizes the Secretary to issue ‘experimental permit[s].’  Under 50 C.F.R. [section] 600.745(b), the Secretary promulgated such a process.  Under that process, the Secretary may issue EFPs ‘for limited testing, public display, data collection, exploratory fishing, compensation fishing, conservation engineering, health and safety surveys, environmental cleanup, and/or hazard removal purposes,’ if a target or incidental harvest of a species managed under a fishery management plan fisheries regulation is prohibited (e.g., South Atlantic red snapper).

“Therefore, at a minimum, each EFP the agency issues—including data collection projects—must ‘address’ (i.e., ‘to give attention to or deal with a matter or problem’) the ‘needs’ (i.e., ‘necessary dut[ies] or obligation[s]’) Congress identified within Chapter 38…This is evident from the plain language of the statutes concerning EFPs, their titles, and their place within the overall statutory scheme…

“…When Congress amended MSA to create a ‘[c]ooperative research and management program,’ and directed the Secretary to create an ‘[e]xperimental fishing permitting process,’ the NMFS explained that ‘[a]ny permit issued by NMFS is a Federal action, and as such must comply with any and all applicable laws…

“…the NMFS has explicitly stated that this permit ‘does not exempt participants from the requirements of the MSA…Therefore, in addition to the relevant statutes, the Government’ [sic] own practices indicate that EFPs must be consistent with the requirements of the MSA…”

The plaintiffs in Ariel Seafoods allege that

“Under the Exempted Fishing Permits challenged in this case, South Atlantic red snapper landings in 2026 will increase substantially.  All of the increase will be recreational landings.

“Due to the increased amount of recreational landings, the commercial sector will receive around 10% of the total red snapper landings in 2026, while the recreational sector will receive around 90% of the total.

“The governing allocation ration for this fishery requires 28.07% of all landings to go to the commercial sector, and 71.93% to go to the recreational sector.  So under the Exempted Fishing Permits, the actual ratio of landings between the recreational sector and the commercial sector will depart significantly from the allocation ratio established in the [fishery management plan].

“The Magnuson-Stevens Act requires Defendants to acknowledge and analyze all allocations and reallocations, ensuring among other things that they are ‘fair and equitable…’”

The latter paragraph refers to National Standard 4, one of the National Standards for Fishery Conservation and Management contained in Magnuson-Stevens, which states, in part, that

“If it becomes necessary to allocate or assign fishing privileges among various United States fishermen, such allocation shall be fair and equitable to all such fishermen…  [formatting omitted]”

It is often difficult to determine what “fair and equitable” might mean—generally, one’s view of “fair and equitable” depends on whether the allocation provides you with more fish or less, regardless of the context—but in the case of the South Atlantic red snapper EFPs, there’s an interesting twist.

Amendment 59 to the Fishery Management Plan for the Snapper-Grouper Fishery of the South Atlantic starts out by setting an annual catch limit of 509,000 red snapper, then deducts 475,000 fish from that ACL to account for the dead discards generated by both the commercial and recreational fisheries (although the overwhelming majority of those discards are killed by recreational fishermen).  The remaining 34,000 fish are allocated between the commercial and recreational sectors based on the 28.07% commercial/71.93% recreational allocation established in the fishery management plan.

However, the exempted fishing permits abandon that approach.  In explaining its logic for allowing a 14-day recreational season, NMFS notes that it recalculated the number of red snapper attributable to dead recreational discards (after recalibrating NMFS’ Marine Recreational Information Program data to accord with data from Florida’s State Reef Fish Survey) to just 163,073 fish.  Thus, depending on whether the annual catch limit was left at its former level, but converted into State Reef Fish Survey units of 276,600 fish, or set equal to the Overfishing Limit of 299,423 fish, NMFS’ recalculation resulted in about another 68,000 or 91,000 red snapper, respectively, that could be landed by fishermen.  But while the Admendment 59 methodology would have allocated those additional fish to both the commercial and recreational sectors, based on the fishery management plan’s allocation ratio of 28.07% commercial/71.93% recreational, the exempted fishing permits allocate all of the additional landings to the recreational sector.

Whether that allocation to the recreational sector is an impermissible violation of NMFS’ fishery management plan, and/or an “unfair” reallocation of red snapper that is prohibited by National Standard 4, is one of the issues that the Court will have to decide.

Plaintiff’s second claim for relief is that

“DEFENDANTS LACK THE AUTHORITY TO MAKE SUBSTANTIVE MODIFICATIONS TO THE ANNUAL CATCH LIMIT MECHANISM FOR SOUTH ATLANTIC RED SNAPPER VIA EXEMPTED FISHING PERMITS AND/OR DOING SO WAS ARBITRARY AND CAPRICIOUS.”

Here, Plaintiffs allege one of the points noted above, that

“Defendants have changed the recreational dead discard component of the Amendment 59 annual catch limit mechanism from an off-the-top set-aside to into a pool of available landings for the recreational sector, apparently accompanied by the rule that the pool can be accessed to the extent estimated recreational dead discards from the prior year came out below the projected recreational dead discard component of the Amendment 59 annual catch limit mechanism…

“This change appears to apply for only one year, insofar as it was enacted via the Exempted Fishing Permits.

“The Magnuson-Stevens Act requires annual catch limit mechanisms to be codified in fishery management plans…

“Because Defendants’ Exempted Fishing Permits make major changes to the South Atlantic red snapper annual catch limit mechanism outside the fishery management plan, the permits are ‘in excess of statutory jurisdiction, authority, or limitations, or short of statutory right…

“Moreover, because Defendants’ temporary revision to the annual catch limit mechanism was invalid, the Exempted Fishing Permits end up allowing far more landings than allowed by the governing Recreational [annual catch limit], as established in Amendment 59—and in turn violate the statutory requirement for annual catch limits…  [citations and formatting omitted]”

Plaintiff’s third and final claim for relief is that

“DEFENDANTS IN ISSUING THE EXEMPTED FISHING PERMITS RELIED ON ASSUMPTIONS AND REASONING THAT DID NOT REPRESENT THE BEST SCIENTIFIC INFORMATION AVAILABLE, FAILED TO ENSURE OVERFISHING IS PREVENTED, AND/OR WERE ARBITRARY AND CAPRICIOUS.”

This claim is based on two more National Standards for Fishery Conservation and Management, National Standard 2, which requires that

“Conservation and management measures shall be based upon the best scientific information available,”

and National Standard 1, which states, in relevant part, that

“Conservation and management measures shall prevent overfishing.”

While it’s usually folly to predict what any judge will do, and what arguments might capture a judge’s attention, and while the Plaintiff’s first two claims for relief certainly make valid and viable arguments, it may be that this third claim has the best chance of convincing the Court that the exempted fishing permits were issued in error.

Perhaps the most egregious flaw in the exempted fishing permit process was the fact that, in setting the catch limits for Florida, Georgia, and South Carolina, and so also in setting the 14-day season, NMFS never considered the fish that were caught in Florida earlier in the year, and there is reason to believe that the number already caught might be substantial.  As reported in an article on the website floridatrib.org,

“In years past, recreational anglers have hit the annual red snapper catch limit in one weekend of fishing.  This summer’s state season ran from May 22 to July 31, and the fall season will open September 1.

“’They’ve been fishing since Memorial Day weekend, so they’ve probably blown through that limit a couple of times over if they’re fishing as hard as they could be,’ [Andrea] Treece [an attorney for Earthjustice, a non-governmental organization that specializes in environmental litigation] said.

“The legal limit has been frustrating for [Christine] Shaffer, who manages the [party boat] Canaveral Princess.  She said private anglers and other charter boat operators are landing red snapper in federal territory, and pretending they came from state waters [which may remain open for fishing when federal waters are closed].

“’They’re not even hiding it,’ she said.  ‘They’re posting it all over social media.’

“Some of her customers are demanding she do the same.  But Shaffer won’t break the rules, even though it’s costing her business.

“’You’ve got the president, the governor, all trying to say, ‘Yeah, go for it,’ but that doesn’t help people like us that are in business here 365 of the year,’ Shaffer said.  ‘We’ve got a federal fishing permit that we have to abide by, and we can’t go out and break the law like everybody else.’”

Given that NMFS, in issuing the exempted fishing permits, predicted a Florida recreational catch rate of 5,960 red snapper per day, it’s not unreasonable to assume that Florida anglers caught as many as 423,000 red snapper between May 22 and July 31, and even more after the season reopened in September, far exceeding even NMFS’ most optimistic annual catch limit for the entire year—before the exempted fishing permits ever went into effect.

Even if that figure was reduced by 75%, on the assumption that most anglers chose not to violate the law and fish in federal waters, it would still just about equal the 112,787-fish recreational catch limit for 2026.  Since that limit was set right at the Overfishing Limit, any additional red snapper caught pursuant to the exempted fishing permit would cause overfishing to occur.

Florida apparently has data that sets out the number of red snapper caught during the state’s open season but, as the Plaintiff’s complaint alleges,

“Upon information and belief, a substantial quantity of red snapper has been landed on Florida’s East Coast since May 22, 2026, whether taken in state waters or taken in federal waters and reported as state waters catch.  The annual catch limits for South Atlantic red snapper are stock-based, and include fish landed from both state and federal waters.

“Florida has acknowledged that catch estimates for this period exist from its [State Reef Fish Survey], but has refused to releuase them.  [citations and formatting omitted]”

That likelihood of overfishing probably should, in itself, be enough to cause the Court to invalidate the exempted fishing permits but, as noted earlier, it’s always difficult to predict what any court might do.

The fact that the exempted fishing permits base the 2026 annual catch limit on the Overfishing Limit, rather than on the Acceptable Biological Catch (the Overfishing Limit reduced to account for scientific uncertainty and, in this case, the South Atlantic Fishery Management Council’s risk policy) is another red flag.

NMFS guidelines provide that

“While the [Acceptable Biological Catch] is allowed to equal [the Overfishing Limit], NMFS expects that in most cases [the Acceptable Biological Catch] will be reduced from [the Overfishing Limit] to reduce the probability that overfishing might occur.”

Moreover, the same guidelines direct that

“If a Council recommends an [Annual Catch Limit] that equals [the Acceptable Biological Catch], and [the Acceptable Biological Catch] is equal to [the Overfishing Limit], the Secretary may presume that the proposal would not prevent overfishing, in the absence of sufficient analysis and justification for the approach.”

While those guidelines don’t precisely address the current situation, where NMFS issues exempted fishing permits that include an annual catch limit equal to the Overfishing Limit, such situation is analogous enough that it is reasonable to assume that the exempted fishing permits—even without considering the Florida “state waters” landings—will also create an unacceptable risk of overfishing.

NMFS tried to justify its decision to base the annual catch limit on the Overfishing Limit, saying

“Setting the harvest level consistent with the [Overfishing Limit] would increase the risk of overfishing.  However, the stock is currently not overfished and not undergoing overfishing and at abundance levels not seen in decades.  If overfishing did occur, the risk to the stock is small because the stock is above the Minimum Stock Size Threshold (albeit not rebuilt) and a pending stock assessment will allow for new catch levels to be set in [State Reef Fish Survey] currency as early as next year,”

which may all be very good, but still fails to meet the National Standard 1 requirement that “Conservation and management measures shall prevent overfishing.  [emphasis added]”

The complaint also raises other data issues, including

“assuming that recreational dead discards in 2026 will equal the amount of dead disards in 2025; assuming an avoided dead discard can be substituted with a landed fish…and completely ignoring the fact that the Exempted Fishing Permits do nothing to address the central problem with recreational fishing data, which is out-of-season dead discards,”

but given the importance of the exempted fishing permits’ failure to ensure that overfishing does not occur, those other issues won’t be examined in detail here.

Thus, the stage is set for another last-minute intervention by the Court, although one must wonder whether the Court will have time to analyze the issues and intervene before the exempted fishing permits take effect. 

In the matter of Southeast Fisheries Association v. Lutnick, the exempted fishing permits were issued around May 1, the legal challenge was filed on May 5, and the Court issued its injunction on May 21, just hours before Florida’s red snapper season was to begin.

In the case of Ariel Seafood, the exempted fishing permits were issued around September 16, but the lawsuit wasn’t commenced until October 5, and the 14-day fishing season is scheduled to begin tomorrow, on October 9.  So one might reasonably ask whether the Court has enough time to read both sides’ papers and consider their arguments, do the necessary research, and write an opinion before the season begins—which means sometime tonight—or whether the Court will allow the exempted fishing permits to remain in effect, and fishing to begin, before ruling on the issues raised in the complaint.

Given that it took the Court 16 days to rule after the Southeast Fisheries Association action was filed, it might even be reasonable to wonder whether the Court will have time to rule before the 14-day season established by the exempted fishing permits is over.

Hopefully, it will, because it is fairly clear that the exempted fishing permits are less about testing alternative methods of obtaining recreational red snapper catch, landings, and effort data—after all, as the Plaintiffs noted, it doesn’t address the dead discards, the biggest component of recreational catch, at all—and more about creating a longer red snapper season that escapes the bounds set by the science-based provisions of Magnuson-Stevens.

But at this point, we can only wait and see what the Court’s decision will be.

 

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