Processor Shares Analysis

Steven K. Minor Executive Director T Work Phone F 206-801-5803 Work Email

Wesley Loy

Wesley, The is the REAL story about Processor Quota Shares. When the program was implemented, virtually all of the Processing Quota Shares were held by interests outside of Alaska. Now, Alaska community organizations in Kodiak, King Cove, Dutch Harbor, Saint Paul, St. George, Atka and the Coastal Villages Region own between 20% and up to more than 50% of all of the PQS in the rationalized fisheries (there are seven rationalized fisheries). These shares have been bought by the Eligible Crab Community Organization that we established under this program for this purpose. This has been one of the most rapid shifts of control of processing in any fisheries resource in the history of the State of Alaska, period. To date there have been six major PQS transactions, and in the five instances where there was a community Right of First Refusal (ROFR) agreement in place, the ECCO has in fact become the PQS buyer without actually triggering the ROFR. It is easy to understand why: since the PQS seller knew they were going to have to deal with the ECCO at some point in the transaction, they simply went to the ECCO first. It is also worth noting that the sixth major PQS transaction, though not consummated directly with the ECCO, resulted in the purchase of significant PQS by a western Alaska CDQ organization, which in my opinion achieves the same social/community goal envisioned by the ROFR provisions. For the record, the six transactions are: 1.



The sale of a significant amount of Bristol Bay Red King Crab and Bairdi PQS to Aleutia, on behalf of King Cove.



2.

The sale of Bristol Bay Red King Crab PQS to the Kodiak Fishery Development Association, on behalf of Kodiak.

3.

The sale of SnoPac’s Bristol Bay Red King Crab and Opilio PQS to APICDA, on behalf of St. George Island.

4.

The sale of Golden King Crab PQS to APICDA, on behalf of the community of Atka.

5.

The sale of significant PQS shares (and other assets) in the Bristol Bay Red King Crab and Opilio fisheries to the Central Bering Sea Fishermen’s Association (CBSFA), on behalf of St. Paul Island.

6.

The sale of significant PQS shares in the Bristol Bay Red King Crab and Opilio fisheries to the Coastal Villages Region Fund (CVRF), who continue to have the crab processed in Unalaska/Dutch Harbor.

Alaska should be extraordinarily happy.

Steve

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