Core Terms, Concerns
• Production limitations—Placing limitations on total farm production for the
region and on production for an individual farm could act as a disincentive to
investment. The environmental characteristics should be used to establish the
carrying capacity for an area as with U.S. states.
• Size limitations—Though there is not limit on farm size, dictating that a farm
site must be twice as large as the combined area of allowable aquaculture
systems to facilitate fallowing is inappropriate. Farms that want to use separate
fallowing sites at their discretion would be penalized with excessive costs.
• Site disposition—There are concerns with the proposed method of site disposition, a permit rather than a lease. Legal questions have been raised as to
whether a permit under the MSA enabling legislation is equivalent to a lease and
can provide property rights and protections, tenure, exclusive use and capacity
to secure financing and insurance.
• Terms of the permit—The concern is that the initial permit term of 10 years and
a 5 year renewal are too short. Industry believes that these terms could be
problematic for a large-scale commercial operation to fully build out and
achieve profitability, as well as provide sufficient stability in rental costs and key
terms to attract the large investment required. More reasonable and attractive
terms would be and initial minimum period of 20 years and a minimum renewal
period of 15 years, similar to several U.S. states.
The Application, Concerns
• Certified Broodstock—The applicant is required to certify that all broodstock or
progeny of such broodstock were originally harvested form the Gulf of Mexico
from the same population or sub-population where the facility is located. There
are concerns that there is not sufficient reliable fish species distribution information for the Gulf to implement this provision and that the genetic sequencing
is costly.
Operating and Monitoring Requirements, Concerns
• Time limits—There is a requirement to deploy 25% of allowable aquaculture
systems approved for a site within 2 years and have fish stocked within 3 years
of receiving the permit. Industry believes this time period should be at least
4 years for deployment and stocking, due to the many complexities of starting
up both a large-scale hatchery and open ocean farm.
• Systems evaluation—Aquaculture systems utilized for growing fish would
have to be evaluated by NOAA on a case-by-case basis. While the general
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• Production limitations—Placing limitations on total farm production for the
region and on production for an individual farm could act as a disincentive to
investment. The environmental characteristics should be used to establish the
carrying capacity for an area as with U.S. states.
• Size limitations—Though there is not limit on farm size, dictating that a farm
site must be twice as large as the combined area of allowable aquaculture
systems to facilitate fallowing is inappropriate. Farms that want to use separate
fallowing sites at their discretion would be penalized with excessive costs.
• Site disposition—There are concerns with the proposed method of site disposition, a permit rather than a lease. Legal questions have been raised as to
whether a permit under the MSA enabling legislation is equivalent to a lease and
can provide property rights and protections, tenure, exclusive use and capacity
to secure financing and insurance.
• Terms of the permit—The concern is that the initial permit term of 10 years and
a 5 year renewal are too short. Industry believes that these terms could be
problematic for a large-scale commercial operation to fully build out and
achieve profitability, as well as provide sufficient stability in rental costs and key
terms to attract the large investment required. More reasonable and attractive
terms would be and initial minimum period of 20 years and a minimum renewal
period of 15 years, similar to several U.S. states.
The Application, Concerns
• Certified Broodstock—The applicant is required to certify that all broodstock or
progeny of such broodstock were originally harvested form the Gulf of Mexico
from the same population or sub-population where the facility is located. There
are concerns that there is not sufficient reliable fish species distribution information for the Gulf to implement this provision and that the genetic sequencing
is costly.
Operating and Monitoring Requirements, Concerns
• Time limits—There is a requirement to deploy 25% of allowable aquaculture
systems approved for a site within 2 years and have fish stocked within 3 years
of receiving the permit. Industry believes this time period should be at least
4 years for deployment and stocking, due to the many complexities of starting
up both a large-scale hatchery and open ocean farm.
• Systems evaluation—Aquaculture systems utilized for growing fish would
have to be evaluated by NOAA on a case-by-case basis. While the general
9 Regulation and Permitting of Standalone …
209