Trail Lakes HatcheryAdd Martin Ponds as a release site for approximately 90,000 English Bay Lakes (EBL) stock sockeye salmon smolt. No increase in permitted capacity.

Page I PERMIT ALTERATION REQUEST

STATE OF ALASKA DEPARTMENT OF FISH AND GAME

PRIVATE NONPROFIT PROGRAM

I. INDENTIFICATION OF APPLICANT

A. Applicant Information

Gar~ Fandrei Applicant Name

40610 Kalifomskl Beach Rd. Address

Kenai Alaska City State

B. Hatchery Information

Trail Lakes Hatchery Hatchery Name

Cook Inlet Aquaculture Assc. Organization

(907) 283-5761 Phone Number

99611-9445 Zip

27 PNP Permit Number

II. STATEMENT OF APPLICANT'S GOALS AND OBJECTIVES

A. Describe the nature of the requested alteration, why you have decided to request it, and what you generally expect to accomplish by the expansion of your program, including answers to the following questions. Will the proposed project affect wild salmon stocks or existing fisheries? How will a significant contribution to common property fisheries be made? How will potential effects and interactions between introduced or enhanced stocks and wild stocks be assessed? What marking and recovery studies are being proposed that will allow the project to be evaluated? What are the potential benefits to fisheries or wild stocks from the proposed project? Has this project been discussed with the department's area or regional management biologists? (Attach additional pages as necessary.)

Revised 11108

PERMIT ALTERATION REQUEST Coruinucd-pagc 2

Ill. IMPACTS ON EXISTING HATCHERY PROGRAM

A. Present Permitted Capacity (numbers of green eggs by species)

Pink Chum Sockeye

0 Coho ---------------------0 Chinook

~-------------------30,000,000 Other --~~~-------------

B. Capacity After Request (numbers of green eggs by species)

Pink Chum Sockeye

C. WaterUse

_;;_N;...;;o....;c;.;;h;.;;;a;;.;;ngliZ.e;;_;;_;re;.;;qa.;;u;.;;.e;;.;st=ed;;;...____ Coho ....;N::....:...:.o....;c..:..:h..:..:a:..:Jn goz.:e:....r:....:e~q..::u..:..:es:..:t.::...ed=----- Chinook __ N_o_c_h_a_ng~e __ re_q._u_e_st_ed _____ Other

6,000,000 4,000,000

No change requested No change requested

1. List the total amount of water available and the source.

TLH design water capacity: TLH observed seasonal low water capacity:

2. List the amount of water presently being used.

TLH current water use:

4.25 mgd from the surficial aquifer. 3.18 mgd from the surficial aquifer.

3.01 mgd from the surficial aquifer.

3. List the additional amount of water needed for this alteration.

TLH increase in water use: o_o mgd from the surficial aquifer.

Revised 11/08

PERMIT ALTERATION REQUEST Conlinued-page 3

IV. HATCHERY DESIGN

A. Please provide a detailed description of new facilities needed with this alteration (e.g., buildings, incubators, rearing space, piping, etc.). This description should represent a solid concept of the proposed hatchery changes/expansion. Drawings showing the layout of new structures should be attached when appropriate.

No alterations to TLH are required to accommodate this change.

V. DECLARATION AND SIGNATURE

I declare that the information given in this application is, to my knowledge, true, correct, and complete.

Name of Applicant Date Signed -l-e.bruet.CU 5 _ 2D l la

I I

..

Revised 11/0B

TLH PAR 2-5-16 - Statement of Goals and Objectives Nature of the Requested Alteration: This alteration request modifies the Trail Lakes Hatchery (TLH) Basic Management Plan (BMP) by:

Allowing CIAA to increase the number of green sockeye salmon eggs from English Bay Lake stock (Tutka Bay Lagoon returns) to 5,507,000 from the currently permitted maximum of 5,372,000 (increase of 135,000 green sockeye salmon eggs).

Allows CIAA to stock 90,000 English Bay Lakes stock sockeye salmon smolt to Martin Ponds (Lower Pond) at the head of Kachemak Bay. Adult sockeye salmon returns will be used as future broodstock for the Lower Cook Inlet (LCI) stocking programs.

Why is the Alteration Being Requested: The purpose of this request is to: Prior to 2004, the stock used for the LCI broodstock program was from Tustumena Lake. This stock was not only used at Hazel, Leisure and Kirschner lakes, and Tutka Bay Lagoon but also at Chenik, Ursus, Bruin, Port Dick, Upper Paint, and Lower Paint lakes. In December of 2003, the 9th Circuit Court ruled the Tustumena Lake enhancement project was a commercial enterprise which violated the 1962 Wilderness Act and ordered the project be terminated. To continue with the LCI program, CIAA along with the Alaska Department of Fish and Game (ADFG) investigated alternative brood sources. Between 2005 and 2009, CIAA collected additional eggs from the Hidden Lake program to serve as the temporary brood source for the LCI program and to develop a return to Tutka Bay Lagoon to serve as a future brood source. Without a freshwater source (lake or river) for these fish to naturally ripen, CIAA implemented the use of a lensing bag to ripen the broodstock. This lensing bag is situated within the net pen structure in Tutka Bay Lagoon. Freshwater from the hatchery is directed into this bag and essentially creates a "pond" of freshwater allowing fish to ripen. Although the use of lensing bags is a sufficient method of ripening fish, there are some setbacks or disadvantages. Firstly, freshwater must be supplied consistently. Any stoppage in the flow of freshwater can cause saltwater to enter the bag and because the fish have made the necessary physiological adjustments to reside in freshwater, they are not able to survive the saltwater intrusion. Secondly, the exchange of freshwater in the bag is low. This creates an environment in which the health of the broodstock is jeopardized. The Hidden Lake stock returns to the LCI release locations also proved to be lower in number, later in terms of timing and smaller in size. These three factors combined decreased the economic value of adult sockeye salmon returns to the fishery. Table 1 demonstrates the average return and economic value associated with the Tustumena Lake stock returns versus the Hidden Lake stock returns.

Table 1. Total and average sockeye salmon returns to Trail Lakes Hatchery stocking programs in the Lower Cook Inlet using different stocks.

Stock Location Return Years Total Sockeye Return

Average Sockeye Return

Average Economic

Valueb

Tustumena Kirschner Lake 2002–2007 270,694 33,354 $226,807

Hidden Kirschner Lake 2008–2013 63,007 10,501 $63,006

English Bay Lakes Kirschner Lake 2014 19,623 19,623 $156,788

Tustumena Leisure/Hazel 2002, 2004–2007 461,806a 92,361a $628,055

Hidden Leisure/Hazel 2008–2014 163,529 23,361 $140,166

Hidden Tutka Bay Lagoon 2007–2013 161,392 23,056 $138,336

English Bay Lakes Tutka Bay Lagoon 2014 57,829 57,829 $462,054

Data taken from ADF&G, Fisheries Management Report No. 15-32, Appendix F15, F17, F18 aData from 2003 is excluded as the returns this year were an anomaly. It is hypothesized that these returns were from Kenai stock that got blown into the area because of storms and currents during that time. bFor English Bay Lakes stocks, economic value is calculated using a fish size of 4.5 lb and $1.70/lb. For the Hidden Lake and Tustumena Lake stocks, economic value is calculated using a fish size of 4.0 lb and $1.70/lb (Tustumena) and $1.50/lb (Hidden) to reflect the later returns. Recognizing the unsuitability of the Hidden Lake stock as a replacement for the Tustumena Lake stock, CIAA and ADFG once again looked at alternatives for a broodstock source. In 2011, CIAA began the transition of using the earlier-run English Bay Lakes stock instead of the late-run Hidden Lake broodstock. Additional sockeye salmon eggs were initially collected from the English Bay Lakes system as donor stock until English Bay Lakes stock adult returns were sufficient at Tutka Bay Lagoon. This transition was completed in 2015. Although not all LCI release locations have seen the adult returns of the English Bay Lakes stock, the adult returns were seen at Kirschner and Tutka Bay Lagoon. Preliminary evaluation indicates that the issues associated with the Hidden Lake stock (small fish, lower number of returns and late timing) are no longer prevalent and the economic value of the fishery is improving (see Table 1; Kirschner and Tutka Bay Lagoon). In 2011, CIAA made the decision to reopen Tutka Bay Lagoon Hatchery for the production of pink salmon. The freshwater demands for the incubation of pink salmon in the hatchery and for ripening of sockeye salmon in the lensing bag exceed the maximum freshwater capacity allowed both in terms of permitting and pumping. This situation has led to a compromise in both the pink and sockeye programs. The result is that CIAA is unable to obtain egg targets necessary to support all LCI stocking programs both in terms of pink and sockeye production. This inability to meet egg target goals has a negative impact on the economic value of the fishery. In 2014, CIAA began discussions with ADFG to find an alternative location for the LCI broodstock program. A suitable site has still not been established. Expecting a large pink salmon return to Tutka Bay Lagoon and hence a full hatchery of eggs, CIAA made the decision to temporarily relocated the sockeye broodstock ripening program to its Port Graham Hatchery in 2015—

where less conflict was expected because the Port Graham pink program was just starting. Adult sockeye salmon returning to Tutka Bay Lagoon were captured and transported via seine boat to the lensing bag located in net pens at Port Graham Bay. Environmental conditions, excessive handling and capture stress led to nearly all of the sockeye broodstock being lost. Although additional broodstock were captured from adult sockeye salmon returns to Kirschner Lake, this was not sufficient to meet the egg target goals for all release locations. Both Hazel and Leisure lakes will not be stocked with fry in 2016. As indicated in Table 2, this loss of stocking to these two locations will result in a reduced adult return by nearly 98,000 fish, thus having a substantial negative impact on the value to the fishery (loss of $779,025). Table 2. Estimated adult sockeye salmon returns and economic value to the fishery if stocking goals at each location are achieved.

Location # Stocked Life Stage

Estimated

Survival Adult Return Adult Size Total Lbs $/lb Value

Tutka Bay Lagoon 500,000 Smolt 10% 50,000 4.7 235,000 $1.70 $399,500

Hazel Lake 1,250,000 Fry 3% 37,500 4.7 176,250 $1.70 $299,625

Leisure Lake 2,000,000 Fry 3% 60,000 4.7 282,000 $1.70 $479,400

Kirschner Lake 250,000 Fry 12% 30,000 4.7 141,000 $1.70 $239,700

Total 4,000,000 177,500 834,250 $1,418,225 The LCI broodstock program has had difficulties becoming firmly established and secure since the 9th Circuit Court ordered termination of the Tustumena Lake program in 2003. This lack of security has impacted both the financial footing of CIAA and the common property fishery. Without a location in which fish can return relatively free of sport and commercial fishing pressure, and be allowed to ripen naturally in freshwater without the use of a lensing bag, the health of the broodstock program as well as those locations that rely on the progeny from these broodstock and gamete collections are in jeopardy. Without a secure broodstock, the potential loss to the fishery is approximately $1.4 million (Table 2). What is Expected to be Accomplished by the Alteration: At this time, CIAA is proposing to stock up to 90,000 English Bay Lakes stock sockeye salmon smolt at Martin River Delta Ponds on an annual basis beginning in 2017 (April/May). Assuming a 10% survival and a 30% harvest rate during their migration to the head of Kachemak Bay (set net and purse seine), the expected adult return to the ponds will be 6,300 fish. Assuming a 15% mortality rate while ripening in the ponds, approximately 5,355 broodstock would be available for gamete collection. The progeny from this gamete collection will be stocked at Tutka Bay Lagoon and Hazel, Kirschner and Leisure lakes providing an economic value to the LCI fishery of over $1.4 million.

Will the Alteration Affect Wild Salmon Stocks or Existing Fisheries: The head of Kachemak Bay is a large delta supplied not only by the water flows from the Martin River and Battle Creek but also from Bradley River, Sheep Creek and Fox River (Figure 1). ADFG's geneticists expressed concern that the introduction of a hatchery stocking program could overwhelm the native stocks in the area. Because of the lack of an established fishery in the area due to small populations of salmon, very little evaluation and monitoring has been done in the area since the construction of the Bradley Lake Power Plant. No genetic sampling has been

performed on the stocks in this area. With this lack of data, the department believes it must follow the guidelines provided by the Genetics Policy and 5 AAC 39.222. Policy for the management of sustainable salmon fisheries (precautionary principle) and cannot support the project without additional information and appropriate precautionary measures be taken to protect the native stocks in the area. It is agreed by CIAA that there is a lack of current information in these waterbodies at the head of Kachemak Bay. This lack of activity is primarily driven by the resources available (time and money) in relation to the importance of these returns to the fishery. The number of salmon returning to the waterways in this area is low and contributes very little to the commercial fisheries. There is no sustainable escapement goals set for any of these waterways of concern. Historical estimates have the sockeye salmon population ranging at just over 2,000 fish for Fox River, 100–300 for Martin River and 100–300 for Bradley River. In the study completed by Northern Ecological Services (1995) which summarized the 10-year salmon study at Bradley River, they indicated that the sockeye salmon in the Bradley River showed a wide variation in size and time of maturity suggesting that they may be strays from other systems. The most recent study performed on Battle Creek in 2010 and 2011, also suggests that the sockeye salmon distribution is limited and intermittent (HDR, 2012). Table 3 provides the "as the crow flies" distances between the sample locations identified by ADFG. Considering the proximity of the other systems to Bradley River and the fact that Bradley River's sockeye population may be strays, it is likely that these sockeye salmon are all similar. Table 3. Distances in miles between the different suggested sampling locations.

Martin Ponds Outlet Martin River Red Lake Bradley River Fox River

Martin Ponds Outlet na 0.59 4.93 2.59 3.91

Martin River 0.59 na 4.55 3.08 4.2

Red Lake 4.93 4.55 na 7.13 8.69

Bradley River 2.59 3.08 7.13 na 2.35

Fox River 3.91 4.2 8.69 2.35 na

Distance (miles)

In 2014, ADFG predicted a total harvest of 800 sockeye salmon in the Southern District from wild stocks in the area and another 114,900 coming from the hatchery production (Hollowell, G. et al., 2015). This demonstrates the importance that the hatchery production has to the fishery. Since the lost of the Tustumena Lake stock, CIAA has been struggling to have a consistent and secured broodstock for the LCI stocking programs. None of the options tried over the last 12–13 years have provided a solution that gives a consistent adult return to provide economic sustainability to not only CIAA but to the common property fishery as well. Using the average sockeye returns provided in Table 1, the loss of the Tustumena Lake stock decreased the value of the fishery by nearly 80%. Now with the change to the English Bay Lakes stock, CIAA sees a solution to reduce this loss to the fishery but only if a location is found where these fish can return naturally and allowed to ripen without stress of capture, handling and holding in lensing bags. Martin Ponds provides such a location.

Without a secure broodstock and consistent stocking program, CIAA will continue to struggle with the LCI stocking programs. This struggle will continue to force CIAA to collect more fish from other returns, for cost recovery to support the stocking programs. This negatively impacts on the common property fishery. While CIAA recognizes that ADFG is mandated by the sustainable fisheries policy to protect the wild stocks, they are also mandated by the same policy that the "...escapement monitoring programs be appropriate to the scale, intensity, and importance of each salmon stock's use..."(Alaska Administration Code: 5 AAC 39.222) Since there is limited current information on the wild stock in terms of escapement counts, run timing and genetic samples, it can be deduced that the importance of these wild populations to the fishery are low. Although it could be argued that CIAA's proposed activity now makes these population more important because of potential interactions, the level of stocking, the number of adults returning and what the progeny from these returns can potentially bring to the economic sustainability of the fishery ($1.4 million) is far more economically valuable to the State of Alaska. What Contribution will the Alteration Make to the Common Property Fisheries: The progeny from this gamete collection will be stocked at Tutka Bay Lagoon and Hazel, Kirschner and Leisure lakes providing an economic value to the LCI fishery of over $1.4 million. Without a secure broodstock and consistent stocking program, CIAA will continue to struggle with the LCI stocking programs. This struggle will continue to force CIAA to collect more fish from other returns, for cost recovery to support the stocking programs. This negatively impacts on the common property fishery. How Will Effects and Interactions between Introduced and Wild Stocks be Assessed: Feedback was provided by ADFG on what measures could be taken to provide information to fill in the data gaps and how these would be evaluated to either allow or disallow the project. This information is provided below:

Sampling of spawning sockeye salmon in Kachemak Bay for genetic analysis

o 96 adults or 192 juveniles per site o Axillary fin (in ethanol or dried on paper) together with age, sex, and length o Sampling over for 1 year and depending on initial results, a second year o Sample locations and priority:

1. Fox River 2. English Bay Lakes (GCL has samples from 1992, but would ideally like more

recent) or current Tutka broodstock (GCL has 131 samples from 2014, but not yet analyzed)

3. Martin River 4. Lower Bradley River

When possible, gather data on run timing among stocks of sockeye salmon in Kachemak Bay.

Analyze axillary fins for variability at 96 DNA SNPs to estimate population structure, allele-frequency stability and to measure genetic diversity.

Decision criteria Several factors can be considered in evaluating the genetic aspects of the proposed project. The following conditions will be used to assess the level of genetic risk to wild populations and will be used to evaluate the proposal from a genetics point of view.

Degree of differentiation of Martin River spawners from English Bay and other Kachemak Bay populations.

The extent that Martin River supports a self-sustaining population.

Run timing of fish released in Martin Ponds, relative to run timings of fish returning to the Martin River and nearby streams and rivers.

Steps to prevent mixing of hatchery and native stocks both in natural spawning and in brood selection or cost recovery harvest.

Manning the Martin Pond weir so as not to preclude use of the ponds by other species (e.g., coho).

Precautions to prevent the escape of hatchery-origin fish released into Martin Pond.

CIAA also understands the value of good scientific information. If this project is permitted to proceed, CIAA will have staff at Martin Ponds to monitor the weirs, enumerate salmon returning to the ponds and perform eggtake duties. Other than the days in which staff perform eggtakes or the peak of salmon returns, there will be opportunities for staff to collect samples from locations like Martin River, Red Lake1 and Bradley River. These three sites will be relatively easy for staff to access from the camp located near Martin Ponds via road system and 4-wheeler. Additionally, the heads from a portion of the fish (1%) used for spawning will be collected and the otoliths will be removed for later analysis. CIAA will also collect the axillary fin every 5 years for genetic analysis from 1% of the spawning population. The expertise to conduct monitoring and collect basic biological samples (species counts, sex, length, age, thermal mark identification and axillary fin sampling) is held by CIAA. However, CIAA does not have the expertise or equipment to perform the genetic analysis—CIAA would be looking to ADFG to assist with the genetic analysis. In the event that results indicate that there are negative impacts CIAA will implement corrective measures or stop all stocking efforts at Martin Ponds.

What Marking and Recovery Studies are Being Proposed: All hatchery stocked sockeye salmon will be thermally marked. If this project is permitted to proceed, CIAA will have staff at Martin Ponds to monitor the weirs, enumerate salmon returning to the ponds and perform eggtake duties. Other than the days in which staff perform eggtakes or the peak of salmon returns, there will be opportunities for staff to collect samples from locations like Martin River, Red Lake and Bradley River. These three sites will be relatively easy for staff to access from the camp located near Martin Ponds via road system and 4-wheeler. Additionally, the heads from a portion of the fish (1%) used for spawning will be collected and the otoliths will be removed for later analysis. CIAA will also collect the axillary fin every 5 years for genetic analysis from 1% of the spawning population.

1 Red Lake is not included in the list of location supplied by ADFG but is part of the Martin River system

where sockeye salmon are believed to spawn.

The expertise to conduct monitoring and collect basic biological samples (species counts, sex, length, age, thermal mark identification and axillary fin sampling) is held by CIAA. However, CIAA does not have the expertise or equipment to perform the genetic analysis—CIAA would be looking to ADFG to assist with the genetic analysis. What are the Potential Benefits to Fisheries or Wild Stocks: In 2014, ADFG predicted a total harvest of 800 sockeye salmon in the Southern District from wild stocks in the area and another 114,900 coming from the hatchery production (Hollowell, G. et al., 2015). This demonstrates the importance that the hatchery production has to the fishery. The progeny from this gamete collection will be stocked at Tutka Bay Lagoon and Hazel, Kirschner and Leisure lakes providing an economic value to the LCI fishery of over $1.4 million. Without a secure broodstock and consistent stocking program, CIAA will continue to struggle with the LCI stocking programs. This struggle will continue to force CIAA to collect more fish from other returns, for cost recovery to support the stocking programs. This negatively impacts on the common property fishery. Has the Project been Discussed with the Area and/or Management Biologist: The Martin Ponds option was presented by CIAA to the Cook Inlet Regional Planning Team at a meeting held in December 2015. The use of these ponds for developing a return for a broodstock program was met with some apprehension from ADFG due to genetic concerns. It is noted that ADFG's pathologist provided comments as well but had no issues with the project and felt that ripening fish outside the lensing bag would improve broodstock health (Meyers, email communication, 2016).

Trail Lakes Hatchery

Permit Alteration Request ~ Martin Ponds

Additional Information

History of the Lower Cook Inlet Broodstock Program

The Trail Lakes Hatchery has five sockeye salmon broodstock programs:

1) Bear Lake ·which provides sockeye salmon eggs for the stocking programs at Bear lake and Resurrection Bay;

2) Hidden lake· which provides sockeye salmon eggs for the stocking programs at Hidden lake;

3) Shell lake· which provides sockeye salmon eggs for the stocking program at Shell lake;

4) English Bay lakes· which supplies the back·stocking program at English Bay lakes; and

5) lower Cook Inlet (lCI) ·which provides sockeye salmon eggs for the stocking programs at Hazel, leisure and Kirschner lakes as well as Tutka Bay lagoon.

The Bear lake and Hidden lake programs are long·established programs and the security and

development of the brood stock well coordinated and established among the different agencies. With

the exception of one year with the Bear lake program, Cook Inlet Aquaculture (CIAA) has consistently

been able to secure sufficient broodstock to maintain the programs. However, this has not been the

case with the LCI program.

Prior to 2004, the stock used for the lCI broodstock program was from Tustumena lake. This stock was

not only used at Hazel, Leisure and Kirschner lakes, and Tutka Bay lagoon but also at Chenik, Ursus,

Bruin, Port Dick, Upper Paint, and lower Paint lakes. In December of 2003, the 9th Circuit Court ruled

the Tustumena lake enhancement project was a commercial enterprise which violated the 1962

Wilderness Act and ordered the project be terminated.

To continue with the lCI program, CIAA along with the Alaska Department of Fish and Game (ADFG)

investigated alternative brood sources. Between 2005 and 2009, CIAA collected additional eggs from the

Hidden lake program to serve as the temporary brood source for the lCI program and to develop a

return to Tutka Bay Lagoon to serve as a future brood source. Without a freshwater source (lake or

river) for these fish to naturally ripen, CIAA implemented the use of a lensing bag to ripen the

broodstock. This lensing bag is situated within the net pen structure in Tutka Bay lagoon. Freshwater

from the hatchery is directed into this bag and essentially creates a "pond" of freshwater allowing fish to

ripen.

Although the use of lensing bags is a sufficient method of ripening fish, there are some setbacks or

disadvantages. Firstly, freshwater must be supplied consistently. Any stoppage in the flow of freshwater

can cause saltwater to enter the bag and because the fish have made the necessary physiological

adjustments to reside in freshwater, they are not able to survive the saltwater intrusion. Secondly, the

TLH PAR_Martin Ponds_Application_Additionallnfo_2016.docx Page 1

exchange of freshwater in the bag is low. This creates an environment in which the health of the

broodstock is jeopardized.

The Hidden Lake stock returns to the lCI release locations also proved to be lower in number, later in

terms of timing and smaller in size. These three factors combined decreased the economic value of adult

sockeye salmon returns to the fishery. Table 1 demonstrates the average return and economic value

associated with the Tustumena lake stock returns versus the Hidden Lake stock returns.

Table 1. Total and average sockeye salmon returns to Trail Lakes Hatchery stocking programs In the Lower Cook Inlet using different stocks.

Stock Location Return Years Total Average Average Sockeye Sockeye Economic Return Return Valueb

Tustumena Kirschner lake 2002-2007 270,694 33,354 $226,807 Hidden Kirschner Lake 2008-2013 63,007 10,501 $63,006

English Bay Lakes Kirschner lake 2014 19,623 19,623 $156,788

Tustumena leisure/Hazel 2002,2004-2007 461,806' 92,361' $628,055 Hidden Leisure/Hazel 2008-2014 163,529 23,361 $140,166

Hidden Tutka Bay Lagoon 2007-2013 161,392 23,056 $138,336 English Bay Lakes Tutka Bay Lagoon 2014 57,829 57,829 $462,054 Data taken from ADF&G, Fisheries Management Report No. 15-32, Appendix F15, F17, F18

"Data from 2003 is excluded as the returns this year were an anomaly. It is hypothesized that these returns were from Kenai stock that got blown into the area because of storms and currents during that time. bFor English Bay Lakes stocks, economic value is calculated using a fish size of 4.51b and $1.70/lb. For the Hidden Lake and Tustumena Lake stocks, economic value is calculated using a fish size of 4.0 lb and $1. 70/lb {Tustumena) and $1.50/lb {Hidden) to reflect the later returns.

Recognizing the unsuitability of the Hidden Lake stock as a replacement for the Tustumena Lake stock,

CIAA and ADFG once again looked at alternatives for a broodstock source. In 2011, CIAA began the

transition of using the earlier-run English Bay Lakes stock instead of the late-run Hidden Lake

broodstock.

Additional sockeye salmon eggs were initially collected from the English Bay Lakes system as donor stock

until English Bay Lakes stock adult returns were sufficient at Tutka Bay lagoon. This transition was

completed in 2015. Although not all LCI release locations have seen the adult returns of the English Bay

Lakes stock, the adult returns were seen at Kirschner and Tutka Bay lagoon. Preliminary evaluation

indicates that the issues associated with the Hidden Lake stock (small fish, lower number of returns and

late timing) are no longer prevalent and the economic value of the fishery is improving (see Table 1;

Kirschner and Tutka Bay Lagoon).

In 2011, CIAA made the decision to reopen Tutka Bay lagoon Hatchery for the production of pink

salmon. The freshwater demands for the incubation of pink salmon in the hatchery and for ripening of

sockeye salmon in the lensing bag exceed the maximum freshwater capacity allowed both in terms of

TLH PAR_Martin Ponds_Application_Additionallnfo_2016.docx Page2

permitting and pumping. This situation has led to a compromise in both the pink and sockeye programs.

The result is that CIAA is unable to obtain egg targets necessary to support alllCI stocking programs

both in terms of pink and sockeye production. This inability to meet egg target goals has a negative

impact on the economic value of the fishery.

In 2014, CIAA began discussions with ADFG to find an alternative location for the LCI broodstock

program. A suitable site has still not been established. Expecting a large pink salmon return to Tutka Bay

Lagoon and hence a full hatchery of eggs, CIAA made the decision to temporarily relocated the sockeye

broodstock ripening program to its Port Graham Hatchery in 2015-where less conflict was expected

because the Port Graham pink program was just starting. Adult sockeye salmon returning to Tutka Bay

Lagoon were captured and transported via seine boat to the lensing bag located in net pens at Port

Graham Bay. Environmental conditions, excessive handling and capture stress led to nearly all of the

sockeye broodstock being lost. Although additional broodstock were captured from adult sockeye

salmon returns to Kirschner Lake, this was not sufficient to meet the egg target goals for all release

locations. Both Hazel and Leisure lakes will not be stocked with fry in 2016. As indicated in Table 2, this

loss of stocking to these two locations will result in a reduced adult return by nearly 98,000 fish, thus

having a substantial negative impact on the value to the fishery (loss of $779,025).

Table 2. Estimated adult sockeye salmon returns and economic value to the fishery If stocking goals at each

location are achieved.

Estimated

Location #Stocked UfeStage Survival Adult Return Adult Size Total Lbs $/lb Value

Tutka Bay Lagoon 500,000 Smolt 10% 50,000 4 .7 235,000 $1.70 $399,500

Hazel Lake 1,250,000 F_ry 3% 37,500 4 .7 176,250 $1.70 $299,625

Leisure Lake 2,000,000 Fry 3% 60,000 4 .7 282,000 $1.70 $479.400

Kirschner Lake 250,000 Fry 12% 30,000 4.7 141,000 $1.70 $239,700

Total 4,000,000 177,500 834,250 $1,418,225

The LCI broodstock program has had difficulties becoming firmly established and secure since the 9th

Circuit Court ordered termination of the Tustumena lake program in 2003. This lack of security has

impacted both the financial footing of CIAA and the common property fishery. Without a location in

which fish can return relatively free of sport and commercial fishing pressure, and be allowed to ripen

naturally in freshwater without the use of a lensing bag, the health of the broodstock program as well as

those locations that rely on the progeny from these broodstock and gamete collections are in jeopardy.

Without a secure broodstock, the potential loss to the fishery is approximately $1.4 million (Table 2).

Martin Ponds Project Description

Recognizing the importance of the LCI sockeye broodstock program to the fisheries in Kachemak Bay

and surrounding area, CIAA continued its investigation for an alternative location for the broodstock

program. The Martin Ponds located at the head of Kachemak Bay has been identified as a suitable area

(Figure 1).

TLH PAR_Martin Ponds_Application_Additionallnfo_2016.docx Page3

The Martin Ponds consist of three ponds (Upper, Middle and lower), which are joined together with a

spawning channel {see Picture A and B) located on roughly 30 acres. The land on which the Martin

Ponds sit is part of the Bradley lake Hydro Project, owned by the Alaska Energy Authority (AEA) and

managed by the Bradley lake Project Management Committee (BPMC) (Carey, email communication,

2015). Ownership of the land is shared between Alaska Department of Natural Resources (DNR) and the

Bureau of land Management (BLM), though the State is seeking a transfer ownership from BLM (Carey,

email communication, 2016).

Figure 1. Martin Ponds and other surrounding water bodies, head of Kachemak Bay, Alaska.

These man-made ponds were constructed during the Bradley lake Hydroelectric Project. Material was

excavated from these ponds for road development during the construction of the Bradley Lake dam and

supporting infrastructure. An armored dike was built along the Martin River to withstand a 100-year

flood along with woody debris placed on pond banks to provide cover and notched-log weirs to maintain

water depths. The original plans called for the system to empty into the main channel of the Martin

River near its mouth. Although this project was not motivated by mitigation requirements, the

construction of the ponds incorporated features that would allow future reclamation as fish rearing

ponds (Parry and Seaman, 1994). In 1993, ADFG completed a survey of these ponds and noted that coho

salmon were using the ponds and spawning channel (Parry and Seaman, 1994). However, no further

evaluation or monitoring has been implemented since.

In May and September of 2015, CIAA conducted surveys to evaluate the use of the ponds for the

stocking of sockeye salmon to provide sufficient adult returns for broodstock purposes only. These

surveys indicated that the original outlet at the mouth of Martin River had been filled in. The blockage at

the original outlet led to the eastern banks of the lower Pond being breached and the outlet now being

directed to join up with the drainage of Battle Creek in the tidal zone. With some minor maintenance

work (see Picture C), the breach of the lower Pond bank can be channelized and the outlet stream

TLH PAR_Martin Ponds_Application_Additionallnfo_2016.docx Page4

stabilized improving fish access to the pond. Water quality analysis indicated that the temperature

profile and oxygen levels are suitable for the rearing of sockeye salmon (smelt and broodstock).

Martin Ponds not only have the advantage of being suitable for fish rearing but also are protected from

many human activities and both sport and commercial fishing pressure can be regulated. The lack of

human and commercial activities existing today are the same characteristics that made the construction

of the hydroelectric dam a viable option in the 1980s and 1990s (Johnson, F.A., 1961; FERC, 1985). The

Martin Ponds project is supported by AEA providing sufficient permitting with land owners (BLM and

DNR) and CIAA provides adequate liability insurance.

At this time, CIAA is proposing to stock up to 90,000 English Bay Lakes stock sockeye salmon smelt at

Martin River Delta Ponds on an annual basis beginning in 2017 (April/May). All sockeye salmon smelt

stocked into the ponds will have a unique thermal mark. Fish will be placed into a small net within the

Lower Pond and allowed to acclimate and imprint for 24-48 hours before being released. Assuming a

10% survival and a 30% harvest rate during their migration to the head of Kachemak Bay (set net and

purse seine), the expected adult return to the ponds will be 6,300 fish. Assuming a 15% mortality rate

while ripening in the ponds, approximately 5,355 broodstock would be available for gamete collection

(Table 3).

Table 3. The number of broodstock returning to Martin Ponds under different stocking levels assuming 10%

smolt-to-adult survival, 30% harvest rate and 15% holding mortality.

% Incidental Return to Holding Surviving

#Smolu Survival #Adulu Harvest Rate • Martin Ponds Mortality Broodstock

150,000 10% 15,000 30% 10,500 15% 8,925 140,000 10% 14,000 30% 9,800 15% 8,330

130,000 10% 13,000 30% 9,100 15% 7,735

120,000 10% 12,000 30% 8,400 15% 7,140

110,000 10% 11,000 30% 7,700 15% 6,545

100,000 10% 10,000 30% 7,000 15% 5,950

90000 10% 9000 30% I 6300 15% I 5,355 80,000 10% 8,000 30% 5,600 15% 4,760

0 As the development of the LCI fishery grows due to stable returns at the release locations, the incidental harvest rate may increase which would require an increase in the number offish stocked.

To provide sufficient eggs for the LCI stocking programs (Tutka Bay Lagoon, 500,000 smelt; Martin Ponds

90,000 smelt; Hazel Lake, 1,250,000 fry; Leisure Lake, 2,000,000 million fry; Kirschner Lake, 250,000 fry),

a total of 5,507,000 green sockeye salmon eggs would be required. At a fecundity of 2,400 eggs, a 1:1

mating cross and 10% inviable, a total of 5,060 broodstock are required (Table 4). Currently CIAA is

permitted to collect 6,720,000 green sockeye salmon eggs (6,370,000 English Bay Lakes/Tutka; 350,000

English Bay Lakes/English Bay Lakes). Assuming the first stocking takes place in 2017 (BY15), the first

returns would occur in 2019 as indicated in the below table (Table 5).

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Table 4. The total number of broodstock required to meet the egg target goal for LCI stocking programs.

Broodstock Rec: uirements

Stock English Bay

Location Martin Ponds Species Sockeye

II Green Eggs 5,507,000

Fecundity 2,400

F:M Ratio 1

Morts/Green Overripe 10%

II Females 2,530

II Males 2,530

Total Broodstock 5,060

Table 5. The project development for Martin Ponds If stocking began In 2017. Fish would start returning In 2019.

By 2020, annual returns would be sufficient for meeting brood stock goals. Project would continue past 2024.

Year II Stocked Total

Return II Returned

2019 2020 2021 2022 2023 2024 2017 90,000 5,356 2,678 2,678 2018 90,000 5,356 2,678 2,678 2019 90,000 5,356 2,678 2,678

2020 90,000 5,356 2,678 2,678

2021 90,000 5,356 2,678 2,678

2022 90,000 5,356 2,678 Yearly Totals 2,678 5,356 5,356 5,356 5,356 5,356

In June of each year, CIAA would set up a weir at the lower Pond outlet to monitor and count the

number of adult sockeye salmon returning to Martin Ponds. These numbers will be reported to ADFG

and posted on CIAA's website (www.ciaanet.org}. This lower weir would also function to keep the fish in

the ponds. A second weir at the confluence of the lower Pond and spawning channel will keep the fish

from moving into the Middle and Upper ponds. Weirs will remain in place and will be operated until

eggtake activities have been completed. All other species that approach the weir will be allowed to pass

into the ponds unharmed.

Although CIAA does not anticipate larger returns than those indicated above, CIAA will be prepared to

harvest at the lower weir for cost recovery or for donations. Excess brood stock will be placed into iced

totes and transported to Homer. Once the fish have ripened, CIAA will collect broodstock from the

lower Pond using a seine net. Any other species caught unharmed will be transferred above the second

weir to avoid multiple recaptures. Egg take procedures will follow established ADFG protocols with all

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equipment and personal gear being disinfected. Gametes will be kept separate and transported via

aircraft to Trail lakes hatchery where eggs will be fertilized at a 1:1 ratio and water hardened in a 100

ppm ovadine solution for 1-2 hours before being placed into the incubators.

The heads from a portion of the fish(l%) used for spawning will be collected and the otoliths will be

removed for later analysis. CIAA will also collect the axillary fin every 5 years for genetic analysis from

1% of the spawning population. All carcasses will be discarded by either disposal in Kachemak Bay or

transporting to Homer for disposal.

Alaska Department of Fish and Game Preliminary Response

The Martin Ponds option was presented by CIAA to the Cook Inlet Regional Planning Team at a meeting

held in December 2015. The use of these ponds for developing a return for a broodstock program was

met with some apprehension from ADFG due to genetic concerns. It is noted that ADFG's pathologist

provided comments as well but had no issues with the project and felt that ripening fish outside the

lensing bag would improve broodstock health (Meyers, email communication, 2016).

The head of Kachemak Bay is a large delta supplied not only by the water flows from the Martin River

and Battle Creek but also from Bradley River, Sheep Creek and Fox River (Figure 1). ADFG's geneticists

expressed concern that the introduction of a hatchery stocking program could overwhelm the native

stocks in the area. Because of the lack of an established fishery in the area due to small populations of

salmon, very little evaluation and monitoring has been done in the area since the construction of the

Bradley lake Power Plant. No genetic sampling has been performed on the stocks in this area. With this

lack of data, the department believes it must follow the guidelines provided by the Genetics Policy and

5 AAC 39.222. Policy for the management of sustainable salmon fisheries (precautionary principle) and

cannot support the project without additional information and appropriate precautionary measures be

taken to protect the native stocks in the area.

Feedback was provided by ADFG on what measures could be taken to provide information to fill in the

data gaps and how these would be evaluated to either allow or disallow the project. This information is

provided below:

• Sampling of spawning sockeye salmon in Kachemak Bay for genetic analysis

o 96 adults or 192 juveniles per site o Axillary fin (in ethanol or dried on paper} together with age, sex, and length o Sampling over for 1 year and depending on initial results, a second year o Sample locations and priority:

1. Fox River 2. English Bay Lakes (GCL has samples from 1992, but would ideally like more recent} or current

Tutko broodstock (GCL has 131 samples from 2014, but not yet analyzed} 3. Martin River 4. Lower Bradley River

• When possible, gather data 011 run timing among stocks of sockeye salmon in Kachemak Bay. • Analyze axillary fins for variability at 96 DNA SNPs to estimate population structure, allele-frequency

stability and to measure genetic diversity.

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Decision criteria

Several factors con be considered in evaluating the genetic aspects af the proposed project. The following conditions will be used to assess the level af genetic risk ta wild populations and will be used ta evaluate the proposal from a genetics point of view.

• Degree of differentiation af Martin River spawners from English Bay and other Kachemak Bay populations.

• The extent that Martin River supports a self-sustaining papulation. • Run timing of fish released in Martin Ponds, relative to run timings of fish returning ta the Martin River

and nearby streams and rivers. • Steps to prevent mixing of hatchery and native stocks both in natural spawning and in brood selection or

cost recovery harvest. • Manning the Martin Pond weir sa as not to preclude use of the ponds by other species (e.g., coho). • Precautions to prevent the escape of hatchery-origin fish released into Martin Pond.

Response by CIAA to Sampling Plan and Evaluation Criteria

When the Bradley Lake Power Plant was proposed a flurry of studies and assessment of resources at the

head of Kachemak Bay occurred to determine the impact that this project would have (Corps of

Engineers, 1982; FERC, 1985; USFWS, 1992). After the power plant was constructed an additional 5-year

study on the salmon at Bradley River was completed to compare the salmon populations before and

after construction. Since then there has been little effort to monitor salmon populations in this area. The

most recent formal study occurred in 2010 and 2011 on the salmon resources in Battle Creek (HDR,

2012).

It is agreed by CIAA that there is a lack of current information in these waterbodies at the head of

Kachemak Bay. This lack of activity is primarily driven by the resources available (time and money) in

relation to the importance of these returns to the fishery. The number of salmon returning to the

waterways in this area is low and contributes very little to the commercial fisheries. There is no

sustainable escapement goals set for any of these waterways of concern. Historical estimates have the

sockeye salmon population ranging at just over 2,000 fish for Fox River, 10Q-300 for Martin River and

10Q-300 for Bradley River.

In the study completed by Northern Ecological Services (1995) which summarized the 10-year salmon

study at Bradley River, they indicated that the sockeye salmon in the Bradley River showed a wide

variation in size and time of maturity suggesting that they may be strays from other systems. The most

recent study performed on Battle Creek in 2010 and 2011, also suggests that the sockeye salmon

distribution is limited and intermittent (HDR, 2012). Table 6 provides the "as the crow flies" distances

between the sample locations identified by ADFG. Considering the proximity of the other systems to

Bradley River and the fact that Bradley River's sockeye population may be strays, it is likely that these

sockeye salmon are all similar.

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Table 6. Distances In miles between the different suggested sampling locations.

Distance (miles)

Martin Ponds Outlet Martin River Red Lake Bradley River Fox River Martin Ponds Outlet na 0.59 4.93 2.59 3.91

Martin River 0.59 na 4.55 3.08 4.2

Red Lake 4.93 4.55 na 7.13 8.69

Bradley River 2.59 3.08 7.13 na 2.35

Fox River 3.91 4.2 8.69 2.35 na

In 2014, ADFG predicted a total harvest of 800 sockeye salmon in the Southern District from wild stocks

in the area and another 114,900 coming from the hatchery production (Hollowell, G. et al., 2015). This

demonstrates the importance that the hatchery production has to the fishery.

Since the lost of the Tustumena Lake stock, CIAA has been struggling to have a consistent and secured

broodstock for the LCI stocking programs. None of the options tried over the last 12-13 years have

provided a solution that gives a consistent adult return to provide economic sustainability to not only

CIAA but to the common property fishery as well. Using the average sockeye returns provided in Table 1,

the loss of the Tustumena Lake stock decreased the value of the fishery by nearly 80%. Now with the

change to the English Bay Lakes stock, CIAA sees a solution to reduce this loss to the fishery but only if a

location is found where these fish can return naturally and allowed to ripen without stress of capture,

handling and holding in lensing bags. Martin Ponds provides such a location.

Without a secure broodstock and consistent stocking program, CIAA will continue to struggle with the

LCI stocking programs. This struggle will continue to force CIAA to collect more fish from other returns,

for cost recovery to support the stocking programs. This negatively impacts on the common property

fishery. While CIAA recognizes that ADFG is mandated by the sustainable fisheries policy to protect the

wild stocks, they are also mandated by the same policy that the " ... escapement monitoring programs be

appropriate to the scale, intensity, and importance of each salmon stock's use ... "(Alaska Administration

Code: 5 AAC 39.222)

Since there is limited current information on the wild stock in terms of escapement counts, run timing

and genetic samples, it can be deduced that the importance of these wild populations to the fishery are

low. Although it could be argued that CIAA's proposed activity now makes these population more

important because of potential interactions, the level of stocking, the number of adults returning and

what the progeny from these returns can potentially bring to the economic sustainability of the fishery

($1.4 million) is far more economically valuable to the State of Alaska.

However, CIAA also understands the value of good scientific information. If this project is permitted to

proceed, CIAA will have staff at Martin Ponds to monitor the weirs, enumerate salmon returning to the

ponds and perform eggtake duties. Other than the days in which staff perform eggtakes or the peak of

salmon returns, there will be opportunities for staff to collect samples from locations like Martin River,

TLH PAR_Martin Ponds_Application_Additionallnfo_2016.docx Page9

Red Lake1 and Bradley River. These three sites will be relatively easy for staff to access from the camp

located near Martin Ponds via road system and 4-wheeler. The expertise to conduct monitoring and

collect basic biological samples (species counts, sex, length, age, thermal mark identification and axillary

fin sampling) is held by CIAA. However, CIAA does not have the expertise or equipment to perform the

genetic analysis-CIAA would be looking to ADFG to assist with the genetic analysis.

In the event that results indicate that there are negative impacts CIAA will implement corrective

measures or stop all stocking efforts at Martin Ponds.

Literature Cited

Corps of Engineers, 1982. Bradley Lake Hydroelectric Project, Alaska, Final Environmental Impact

Statement. Department of the Army, Alaska District Corps of Engineers, Anchorage, Alaska.

FERC, 1985. Bradley Lake Project Alaska. FERC No. 8221. Supplemental Environmental Impact

Statement.

HDR, 2012. Battle Creek Aquatic Resources Investigation, 2010 and 2011.

Hollowell, G. et al. 2015. 2014 Lower Cook Inlet FinFish Management Report. Fishery Management

Report No. 15-32.

Johnson, F.A. 1961. Waterpower Resources of the Bradley River Basin, Kenai Peninsula. Geological

Survey Water-Supply Paper 1610-A.

Northern Ecological Services, 1995. Final Report Bradley River Salmon Study Program.

Parry, Band G.A. Seaman. 1994. Restoration and Enhancement of Aquatic Habitats in Alaska : Case

Study Reports, Policy Guidance, and Recommendations. Technical Report No. 94-3.

U.S. Fish and Wildlife Service, 1992. Survey of the Fishery Resources in the Fox River Watershed, Alaska,

1985·1986. Alaska Fisheries Technical Report Number 18.

1 Red Lake Is not included in the list of location supplied by AOFG but is part of the Martin River system where sockeye salmon are believed to spawn.

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