Description of variables used in the distribution formula for red tide

The Closure Duration for each community/fishery was determined from the date of official MarineFisheries notification of closure from the 2005 red tide event until the date of the official MarineFisheries notification indicating shellfish no longer contained biotoxins (PSP) in excess of established standards in a particular community or fishery.

Example: Gloucester was closed to shellfishing on May 19, 2005 and reopened for soft-shell clam harvest on July 19, 2005 for closure duration of 61 days. All shellfishermen who reported soft-shell clams in Gloucester will be assigned a closure duration value of 61 days.

Applicants Landings Value was determined by combining all landings for 2004 and 2005 as reported on DMF catch reports, then multiplying the landings by an average annual price. A separate average annual price was determined for each species and/or size category using dealer summary reports from 2004 and 2005. A summary report of all landings information as reported on shellfish catch reports and/or aquaculture reports was provided to each applicant along with a letter explaining their approximate award amount.

Distribution Formula

The distribution formula used for determining an applicant's award amount consists of 2 parts.

Part I allocates a portion of 1/2 of the total subsidy amount based on the closure duration due to red tide in 2005.

Every applicant is assigned a closure duration value (CDV) based on the community or fishery where the applicant fished in 2005.

The closure duration value (CDV) for all qualifying applicants was summed to determine the total closure duration value (TCDV). Each applicant's CDV will be divided by the TCDV, then be multiplied by 1/2 of the total subsidy amount to determine their Part I allocation.

Example: There are 500 qualifying applicants with a TCDV of 24,000 days (sum of all applicants' CDV's - an average of 48 days per person). A Barnstable shellfisherman with a 43 day CDV will receive (43 days / 24,000 days) x (1/2 of $1.9mil) = $1700 for Part I.

     Part I formula: (CDV/TCDV) x (1/2 total subsidy) = Part I subtotal

Part II allocates a portion of 1/2 of the total subsidy amount based on the landings value of the combined 2004 and 2005 landings of each applicant.

The landings value for all qualifying applicants was summed to determine the total landings value (TLV). Each applicant's landings value (LV) will be divided by the total landings value (TLV) to calculate an individual percent of total landings. Each applicant's individual percent of total will be multiplied by 1/2 of the total subsidy amount to determine their Part II allocation.

Example: There are 500 applicants with a TLV of $19 million (over 2 years, 2004 + 2005). A Chatham shellfisherman reports 18,000 lbs of soft shell clams in 2004 and 350 bushels of soft shell clams in 2005. The Total Landings Value (TLV is the sum of the reported landings amount multiplied by the average annual price per species per unit, $1.80/lb and $65.00/bu for soft shell clams ([18,000lb x $1.80] + [350bu x $65]) = $55,150 - this is an applicant's Landings Value (LV). This applicant's Part II allocation = ($55,150/$19 million) x (1/2 of $1.9 million) = $2757.50 for Part II.

     Part II formula: (LV/TLV) x (1/2 total subsidy) = Part II subtotal