O'CALLAGHAN v. Rue

996 P.2d 88, 2000 Alas. LEXIS 13, 2000 WL 193580
CourtAlaska Supreme Court
DecidedFebruary 18, 2000
DocketS-8234, S-8274
StatusPublished
Cited by26 cases

This text of 996 P.2d 88 (O'CALLAGHAN v. Rue) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'CALLAGHAN v. Rue, 996 P.2d 88, 2000 Alas. LEXIS 13, 2000 WL 193580 (Ala. 2000).

Opinion

OPINION

MATTHEWS, Chief Justice.

I. INTRODUCTION

Alaska Statute 16.05.831 prohibits the waste of salmon, meaning the failure to use most of the salmon carcass. 1 This appeal concerns whether the Commissioner of Fish and Game had the authority to promulgate 5 Alaska Administrative Code (AAC) 93.320, involving salmon roe stripping, and whether the regulation is consistent with the salmon waste law. We conclude that the Commissioner had this authority and that 5 AAC 93.320 is valid.

II. FACTS AND BACKGROUND INFORMATION

The state legislature created Alaska’s private non-profit (PNP) salmon hatchery program in 1976 to boost Alaska’s salmon har *92 vest. A comprehensive statutory scheme governs PNP hatcheries; 2 currently, about thirty PNP salmon hatcheries in Alaska operate under this program. Yet since the start of the program, market conditions for salmon have changed dramatically. Worldwide salmon production has tripled, and as overall numbers of salmon increased and hatchery fish comprised a greater percentage of available fish, market prices for some species of salmon have dramatically declined. Especially depressed are the markets for pink and chum salmon. The Department of Fish and Game (the Department) and salmon hatchery operators thus claim that roe stripping — the practice challenged in this appeal — is necessary to the economic survival of both individual hatcheries and the entire PNP program.

Roe stripping occurs when a salmon’s eggs — the roe — are removed from the fish (usually to be sold for human consumption) and the flesh is discarded. Although the practice was traditionally disfavored, increases in the number of hatchery chum and pink salmon and corresponding decreases in market value for these fish, together with increasing value of caviar, have made roe stripping more attractive.

Salmon physiology also contributes to this trend. Once a salmon nears the end of its lifespan and becomes exposed to fresh water, its flesh deteriorates in quality and can become extremely difficult, sometimes impossible, to sell. Yet because salmon at this stage convert nutrients into egg production, the roe remains of high quality even after the flesh has deteriorated. With poor market conditions, a high percentage of the value of a salmon can come from its roe.

Additionally, in recent years the harvests of chum and pink salmon have been so large that hatchery owners claim they have been unable to sell all of their salmon. Thus, faced with unmarketable salmon filled with lucrative eggs, hatchery operators find that their best economic option is to roe strip.

Before 1994, the Department of Fish and Game consistently interpreted the salmon waste law to prohibit all forms of roe stripping. In 1994, in response to the growing problem of excess, unmarketable hatchery salmon, the legislature considered — but failed to enact — a bill that would have modified the salmon waste law so as to authorize the Commissioner of Fish and Game to issue permits for roe stripping from hatchery salmon determined to have flesh that was “unfit for human consumption.” 3

When this legislation failed, the Department modified its interpretation of the waste law and issued six permits allowing PNP hatcheries to strip roe from surplus brood stock salmon. 4 The Commissioner asserted that this policy was authorized by AS 16.05.831(b) because he had determined “that the salvage of roe from surplus brood stock in the hatchery raceways is consistent with maximum and wise use of the resource.” No regulations were enacted to govern the issuance of these permits.

After considering several interpretations of AS 16.05.831 (the salmon waste law) — including one that would exempt all PNP hatcheries from the roe stripping restriction — the Department formed a working group to formulate regulations interpreting the salmon waste law. The group was unable to reach agreement on whether roe stripping should be authorized. Then, the Department again unsuccessfully sought to introduce legislation clarifying the salmon waste law and authorizing some forms of roe stripping. Finally, when this failed, the Department promulgated regulations 5 AAC 93.310-93.390 addressing roe stripping. 5 One of these regulations, *93 5 AAC 93.320, is the focal point of this appeal.

Regulation 5 AAC 93.320 authorizes the Commissioner to issue permits allowing some salmon hatcheries to engage in roe stripping of salmon:

(a) Notwithstanding AS 16.05.831(a) and 5 AAC 93.310, a hatchery operator may remove and sell pink and chum salmon roe for cost recovery purposes, and dispose of the carcasses of the salmon, under the terms of the authorization embodied in this section.
(b) This section’s authorization applies only to pink and chum salmon that
(1) originated from a hatchery;
(2) are harvested by a hatchery operator in a hatchery terminal area or hatchery special harvest area;
(3) have matured to the point that their flesh cannot be marketed without an unreasonable risk of incurring a financial loss; and
(4) cannot be put to other lawful use or be given away despite compliance with the requirements of this section.
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(o) In this section, “unreasonable risk of incurring a financial loss” means that a hatchery permit holder reasonably determines that, for a given lot of fish, as designated by the hatchery, net profits from putting the salmon to lawful use and from selling the roe removed from the salmon, could be lower than needed to justify the diversion of hatchery personnel and resources, including overhead and administrative resources, to deal with the salmon.

The regulation requires a hatchery to document the estimated numbers of salmon returning to the hatchery, any attempts made to find lawful uses for the fish, and predicted financial losses if not allowed to roe strip. 6 The regulation also mandates specified efforts to distribute salmon to food banks and the public, as well as record keeping. 7 This regulation became effective on July 21,1996, 8 and the Commissioner issued permits pursuant to it throughout the 1996 salmon season, allowing PNP processors to strip roe from “unmarketable and otherwise unusable chum salmon.”

III. PROCEEDINGS

Mike O’Callaghan, an officer of the nonprofit organization EARTH, sued the Commissioner of Fish and Game for injunctive relief in November 1996.

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Bluebook (online)
996 P.2d 88, 2000 Alas. LEXIS 13, 2000 WL 193580, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ocallaghan-v-rue-alaska-2000.