Procedures for Determination and Compensation of Losses Caused to Fish Resources as a Result of Economic Activity

Issued pursuant to
Section 26, Paragraph five of
the Fishery Law

I. General Provisions

1. These Regulations prescribe the procedures by which losses caused to fish resources as a result of economic activity shall be determined and compensated.

2. These Regulations shall apply to such economic activity during the performance of which a loss to fish resources is caused, including construction and exploitation of hydro-technical structures, deepening of bodies of water (rivers, lakes, water reservoirs), ports, fairways and channels, blasting work in waters, taking and unloading of ground, adjusting of bodies of water, as well as emergencies or accidents caused by economic activity, which influence fish resources. These Regulations do not apply to fishery that is regulated by the relevant regulatory enactments.

3. These Regulations apply to the inland and territorial waters of the Republic of Latvia, as well as to the economic zone waters.

4. Loss caused to fish resources shall be compensated by legal and natural persons due to whose direct or indirect, legal or illegal activity the loss has been caused.

5. Loss caused to fish resources shall include both direct loss of fish resources and indirect losses caused due to loss of fish food objects, the natural spawning grounds and habitats of fish, including losses caused by a reduction in the fisheries productivity of bodies of water.

[30 May 2006]

6. The fishery expert-examination, which is necessary for the assessment of the loss caused to fish resources and the calculation of losses shall be performed by the State agency "Latvijas Zivju resursu aģentūra" [Latvian Fish Resources Agency] (hereinafter - Agency) or other legal persons the by-law or articles of association of which provides for scientific research activities. If the expert-examination is not performed by the Agency, but by another legal person, it shall submit the materials of the expert-examination performed to the Agency for evaluation and its opinion shall be appended to the fishery expert-examination materials. The fishery expert-examination shall:

6.1. assess the direct and indirect impact of the economic activity on fish resources, utilising scientific research data available for the expert-examination or, if necessary, performing direct research, analyses or experiments in the specific body of water; and

6.2. prepare an opinion regarding the causes for the losses incurred to the fish resources and the types of losses. The opinion shall be the basis for the calculation of losses incurred to the fish resources. The opinion shall also provide proposals regarding the type of compensation for the possible losses in conformity with Paragraph 17 of these regulations, as well as recommendations for the reduction or rectification of the losses incurred.

[30 May 2006]

II. Types of Loss and Determination of Amount of Loss

7. There are the following types of loss caused to fish resources:

7.1. loss caused as a result of continuous or regular and of constant amount economic activity. Loss caused to fish resources shall be specified only once and an annual or regular compensation shall be provided for covering the loss;

7.2. loss caused as a result of irregular economic activity. Loss caused to fish resources and compensation provided for such loss shall be specified for each particular activity; and

7.3. loss caused due to illegal economic activity, emergency or accident. Loss caused to fish resources and compensation provided for such loss shall be specified for the particular activity that has been performed up to the suspension of the illegal activity, elimination of the consequences of the emergency or accident.

8. Loss caused to fish resources in such territory of the Baltic Sea or Gulf of Riga waters, body of water or part thereof (also in a river section), which was affected by the particular economic activity.

9. In determining losses incurred to fish resources, the fishery expert-examination shall assess:

9.1. the direct loss of fish resources due to destruction of fish, fish roe and larvae;

9.2. the reduction in spawning fish numbers in future years caused by the direct destruction of fish;

9.3. the loss of the fish food base, which causes a reduction in the increase of the relevant waters fish resources biomass;

9.4. the loss of natural fish spawning grounds and disturbances similar to this for fish pre-spawning and spawning during migration, which reduces the number of spawning fish and spawning effectiveness; and

9.5. the loss of fish habitats and grounds of hibernation, which reduces the fishery productivity in the relevant waters; and

9.6. the loss of total fishery productivity in a body of water or a part thereof or a reduction in productivity for a certain time period - if the assessment of the losses incurred to fish resources is performed in accordance with Sub-paragraph 5.2 of the Annex to these Regulations.

[30 May 2006]

10. Indicators provided for in an opinion of an examination by fishery experts shall be evaluated and the loss caused to fish resources shall be calculated in accordance with the Annex to these Regulations, on the basis of the methods of measurement of fish resources and the food base thereof recognised by the International Council for the Exploration of the Sea (ICES) and the European Inland Fisheries Advisory Commission (EIFAC) of the Food and Agriculture Organisation of the United Nations (FAO).

11. The amount of loss incurred to fish resources shall be determined by calculating losses for specific fish species, and the total amount of loss shall be expressed as the value of the total weight of medium-size fish to be used in fishing (commercial fishing and angling). This value shall be calculated in accordance with Paragraph 7 of the Annex to these Regulations. If the loss incurred to fish resources is the result of illegal economic activities, for the specification of the total loss a coefficient of 4 shall be applied.

[30 May 2006]

12. In accordance with an opinion provided by fishery experts, several biologically similar fish species that are also similar in price may be combined in a calculation, as well as the division of fish into categories of juvenile fish by their age and stages of development (for Salmoniformes - by smoltification) may be specified.

13. If a loss of fish resources due to the destruction of juvenile fish or larvae which are bred artificially and released from fish farms is assessed, it may be provided for in an opinion of fishery experts that losses are to be calculated by using the actual costs of raising juvenile fish or larvae.

14. If a natural spawning ground or habitat of fish is irreversibly lost, annual losses of fish resources shall be calculated in accordance with opinion provided by fishery experts and annual compensation shall be provided - contributions to the State base budget income for the formation of a Fish Fund or release of juvenile fish, or a financial compensation that covers the costs of fishway construction or recultivation and setting-up of spawning grounds or habitats.

[6 January 2004; 30 May 2006]

15. For the calculation of the loss of the main fish species useable for fishing, the indicators and formulas referred to in the Annex to these Regulations shall be used. If necessary, a fishery expert-examination, on the basis of fish resources research, which is performed in the body of water in which the loss occurred, or in an analogous body of water thereto, shall determine the different fish forecast recovery coefficients, as well as in the loss calculation use the fish productivity and fish food base indicators for the body of water in which the loss occurred, or in an analogous body of water thereto.

[30 May 2006]

III. Types of Compensation

16. The loss calculation shall indicate the amount of loss in monetary terms and the types of compensation for losses expressed in the fishery expert-examination in conformity with Paragraph 17 of these Regulations. If in the fishery expert-examination opinion as full or partial types of compensation for losses is recommended compensation measures, which do not provide for the payment of monetary funds into the revenues of the State basic budget for the establishment of the Fish Fund, such a measures plan in which is indicated the amount of expenditure for specific measures shall be approved by the National Board of Fisheries. The measures plan shall have appended the fishery expert-examination and loss calculation materials.

[30 May 2006]

17. On the basis of an opinion of fishery experts and calculation of loss, legal and natural persons may compensate the loss caused to fish resources by:

17.1. paying for the loss of fish resources or by covering the expenses which ensure the taking of measures specified in the examination by fishery experts;

17.2. paying the expenses of raising artificially propagated juvenile fish; or

17.3. releasing juvenile fish into the relevant body of water.

18. If legal persons or natural persons compensate the loss incurred to fish resources in different ways, the total amount of compensation shall correspond to the amount of loss specified in the loss calculations and with the complex of measures provided for in the expert-examination opinion.

[30 May 2006]

IV. Initiation of Determination of Loss

19. The fishery expert-examination for the assessment and calculation of the losses incurred to fish resources shall be initiated by the relevant structural unit of the State Environment Service of the Ministry of Environment (hereinafter - institution) by sending a request to a specific performer of economic activities (also the person who caused the emergency or accident) regarding ensuring a fishery expert-examination. The request shall indicate the type of economic activity impacting upon the fish resources regarding which the fishery expert-examination must be performed. The institution shall initiate a fishery expert-examination also if the economic activity has already ended or the loss has occurred as a result of an accident, emergency or illegal activity, as well as initiating a new fishery expert-examination if after the performance of the fishery expert-examination the time periods, volume or other circumstances of the economic activity are changed, which changes the impact of the economic activity on the fish resources.

[6 January 2004; 30 May 2006]

20. In the cases referred to in Sub-paragraph 7.3 of these Regulations, prior to the initiation of determination of the loss caused to fish resources, an institution in accordance with the competence thereof shall draw up a deed regarding the establishment of the fact of a loss caused to fish resources. In drawing up the deed, a representative of such local government in the waters within the territory thereof or coastal areas of such waters the loss was caused shall be invited to participate, and, if possible, also the person who caused the loss.

21. The fishery expert-examination opinion and the conclusions contained therein shall be taken into account also in developing technical regulations for economic activity planning in accordance with the Law On Environmental Impact Assessment or when issuing a permit for the economic activity in accordance with the regulatory enactments regarding special construction regulations for hydro-technical constructions of ports.

[30 May 2006]

22. The performer of economic activities (also the person who caused the emergency or accident) shall ensure the performance of the fishery expert-examination within the time period specified in the request of the institution, but not later than within a period of six months after the commencement of the economic activity, the end of irregular or periodic activities, the discontinuation of illegal activities or the elimination of the consequences of an emergency or accident. The legal person or natural person who performed the relevant economic activity or caused the emergency or accident shall cover the expenditures regarding the fishery expert-examination and the calculation of loss.

[30 May 2006]

23. If the legal or natural person who has caused loss to fish resources has not been identified at the time when the loss was caused, the amount of funds spent on the determination of the loss shall be included in the calculation of the loss compensation.

24. Any of the legal persons referred to in Paragraph 6 of these Regulations may be chosen for the determination of loss caused to fish resources, except legal persons established by the person who caused the loss.

V. Approval of the Amount of Loss and Submission to the Person who Caused Loss

25. The performer of economic activities shall submit to the institution the materials of the fishery expert-examination together with the calculation of loss.

[30 May 2006]

26. If loss is calculated in parts and such loss has been determined by several legal persons, the total calculation of loss that has been submitted to the institution shall require an approval of all of such legal persons (each legal person shall approve the specified part of the calculation of loss).

[30 May 2006]

27. An institution shall approve the amount of loss caused to fish resources and the type of compensation with a decision. The decision shall come into effect when a legal or natural person who caused the loss to fish resources has become aware of the decision.

28. A decision of an institution regarding the amount of loss caused to fish resources and the type or types of compensation shall be sent to the legal or natural person who caused the loss to fish resources within a period of 10 days. The institution shall send a copy of the decision to the National Board of Fisheries.

[30 May 2006]

VI. Compensation of Loss

29. Losses caused to fish resources shall be compensated in the following way in accordance with the decision referred to in Paragraph 28 of these Regulations:

29.1. by transferring funds into the State base budget revenue for the creation of a Fish Fund for the loss caused to fish resources in accordance with Section 28, Paragraph two of the Fishery Law. If a joint calculation of loss has been performed regarding the loss caused to fish resources and the loss caused to other biological resources of water, then the amount of compensation for the loss caused to fish resources shall be indicated separately in the calculation and the amount of compensation for the loss caused to biological resources of water that are not related to fish resources;

29.2. by releasing juvenile fish into the relevant body of water and drawing up a deed of releasing the juvenile fish, which shall be drawn up in accordance with the regulatory enactments regarding the releasing juvenile fish into natural bodies of water intended for restocking and propagation of fish resources; or

29.3. by performing measures that compensate the losses incurred to fish resources, including ensuring fishway construction in barriers in bodies of water and recultivation of spawning grounds or habitats financial compensation. A deed of acceptance of work shall be drawn up regarding the completion of the relevant work, which shall be signed by the performer of the work, an official of the institution, the legal or natural person who incurred the loss, a representative of the Agency and the representative of such local government in the waters within the territory thereof or in the coastal area of such waters the loss was incurred.

[6 January 2004; 30 May 2006]

30. The funds for losses incurred to fish resources, taking into account the duration of the economic activity, shall be paid (the institution, which has taken the relevant decision, shall be informed regarding performed payments) within the following time periods:

30.1. if the economic activity continues for not longer than one year - within a period of one month after the decision referred to in Paragraph 27 of these Regulations was taken;

30.2. if the economic activity continues longer than one year - within a period of three months after the taking of the decision referred to in Paragraph 27 of these Regulations; and

30.3. if the economic activity is permanent or periodical and constant in scope - not later than by the end of September of the current year of compensation.

[30 May 2006]

31. The loss compensation measures specified in the decision referred to in Paragraph 27 of these Regulations shall be taken in accordance with an appropriate work schedule which must be provided for in an agreement between the legal or natural person who caused the loss and an institution. If the legal or natural person who caused the loss does not enter into such agreement within a period of one month after the receipt of the referred to decision or commencement of the economic activity or does not fulfil the conditions of the entered into agreement, such person shall compensate the loss caused in cash funds within a period of one month after the day of establishment of the fact.

32. If a legal or natural person who caused loss to fish resources does not observe the procedures for compensation or the time period for compensation specified in Paragraphs 30 and 31 of these Regulations, an institution may either suspend the economic activity referred to in Sub-paragraphs 7.1 and 7.2 of these Regulations until the loss caused to fish resources has been compensated, or recover such loss through a court.

VII. Changes in the Amount of Compensation for Loss and Reviewing of Compensation Type

33. Upon the proposal of an institution or at the request of a legal or natural person who has caused a loss to fish resources, if such person has at its disposal the relevant justification and calculations regarding the non-conformity of the amount of compensation for the loss caused to fish resources of the legal persons referred to in Paragraph 6 of these Regulations with the determined amount of the loss, the institution may review a decision such institution has taken previously regarding the amount and type of compensation for the loss caused to fish resources in accordance with the procedures specified in Paragraphs 25, 26 and 27 of these Regulations.

34. If a legal or natural person who has caused a loss to fish resources cannot compensate the loss in any of the ways of compensation provided for in an agreement, such person may ask an institution to replace such way of compensation with a compensation in cash in accordance with the procedures specified in Paragraphs 25, 26 and 27 of these Regulations.

VIII. Cases when Compensation of Loss is not Specified

35. A legal or natural person who has caused a loss to fish resources may be released from the compensation of loss if the loss has occurred due to force majeure.

36. A legal or natural person who has caused a loss to fish resources shall prove the effect of the force majeure referred to in Paragraph 35 of these Regulations by attaching a statement issued by a competent State authority, which includes a confirmation and characterisation of the force majeure effect.

37. [30 May 2006]

IX. Liability for Non-compliance with these Regulations and Collection of Compensation for Loss

38. If a legal or natural person who has caused a loss to fish resources refuses to compensate the loss or does not fulfil the conditions of an agreement of loss compensation, an institution shall bring an action to a court regarding the collection of the compensation for the loss.

Prime Minister A. Bērziņš

Minister for Agriculture A. Slakteris

Annex
Cabinet Regulation No. 188
8 May 2001

Assessment of Loss Incurred to Fish Resources as a Result of Economic Activity

1. Direct losses of fish resources if the losses of fish, the roe and larvae thereof have been directly counted in nature or numerically evaluated. Loss of fish resources shall be calculated by using the following formula:

Z = S x C x (N + n₀ x k₀ + N₁ x k₁ + n₂ x k₂ + n₃ x k₃),

where:

Z - loss of fish resources, LVL;

S - average weight of fish usable in fishing, kg:

C - fish price, LVL/kg;

N - number of destroyed adult fish, pieces;

n₀ - number of destroyed fish roe, pieces;

n¹ - number of destroyed larvae, pieces;

n₂, n₃ - number of destroyed juvenile fish of various ages or stages of development, pieces; and

k₀, k₁, k₂, k₃ - coefficients of fishing recovery - from fish roe (k₀), larvae (k₁) and juvenile fish of various ages or stages of development (k₂ and k₃) - in accordance with Paragraph 6 of this Annex.

2. Future losses of fish resources, on the basis of the decrease of the next (first) generation of fish resources due to direct losses of fish resources, shall be determined by taking into account the fact that the destroyed fish would have provided not only a catch, but also naturally reproduced progeny and with the next (first) generations preserved the stability of the relevant fish resources. Future loss of fish resources shall be calculated by using the following formula:

Zn = S x C x Np x M x Nk x A x k₀,

where:

Zn - future loss of fish resources, LVL;

S - average weight of fish usable in fishing, kg:

C - fish price, LVL/kg;

Np - potential number of spawning fish, which are lost due to the destruction of adult fish, juvenile fish, larvae or fish roe, pieces;

M - proportion of female fish in a shoal;

Nk - the number of times the specific fish species spawns;

A - average fertility of a female fish - number of fish roe, pieces; and

k₀ - coefficient of the fishing recovery from fish roe in accordance with Paragraph 6 of this Annex.

3. Losses of the fish food base that cause a reduction of the fishery productivity of fish resources shall be determined on the basis of an assessment of the destruction of the main fish food base groups - zooplankton and zoobenthos organisms, and shall be expressed as an increase of the lost (foregone) fish biomass:

3.1. loss of fish resources due to the destruction of zooplankton shall be calculated by using the following formula:

Zp = T x Bp x kpv x kpp x kpb x C,

where:

Zp - loss of fish resources due to the destruction of the fish food base - zooplankton, LVL;

T - water volume subjected to the harmful factors of an economic activity, m³;

Bp - average biomass of zooplankton, kg/m³;

kpv - coefficient that determines the portion of zooplankton destroyed due to the harmful factors of the economic activity;

kpp- coefficient that specifies the utilisation of zooplankton in fish food from the total biomass of zooplankton;

kpb - fish food (biomass increase) coefficient for zooplankton; and

C - price, LVL/kg; and

3.2. the loss of fish resources due to the destruction of zoobenthos shall be calculated by using the following formula:

Zb = Lb x Bb x kbv x kbp x kbb x C,

where:

Zb - loss of fish resources due to the destruction of the fish food base - zoobenthos, LVL;

Lb - area of the body of water that has come under the effect of the harmful factors of an economic activity, m²;

Bb - average biomass of zoobenthos, kg/m2;

kbv - coefficent that specifies the portion of zoobenthos destroyed due to the harmful factors of the economic activity;

kbp - coefficent that specifies the utilisation of zoobenthos in fish food from the total biomass of zoobenthos;

kbb - coefficient of the fish feed (biomass increase) for zoobenthos; and

C - price, LVL/kg.

4. The loss of natural fish spawning grounds and disturbances similar to this for fish pre-spawning and spawning during migration, which determines a decrease of the number of spawning fish and next generations of fish, shall be calculated taking into account whether the loss of spawning grounds or also the possibility of spawning causes loss for one or several years, but a long-term (annual) loss shall be calculated if the loss of spawning grounds or possibility of spawning is irreversible. The loss of fish resources due to the loss of spawning grounds shall be calculated by using the following formula:

Zn = Ln x np x knv x kn x S x C x Gs,

where:

Zn - loss of fish resources due to the loss of spawning grounds, LVL;

Ln - spawning area, m²;

np - productivity of the spawning area - the number of fish roe, larvae (n₀, n₁, n₂, n₃), pieces/m²;

knv - coefficient that determines the portion of fish roe, larvae or juvenile fish destroyed due to the harmful factors of an economic activity;

kn - coefficient of the fishing recovery from fish roe, larvae or juvenile fish (k₀, k₁, k₂, k₃), respectively;

S - the average weight of fish usable in commercial fishing, kg:

C - price, LVL/kg; and

Gs - the number of years for which the spawning ground has been damaged or lost.

5. The loss of fish habitats and hibernation grounds, which determines a reduction of fish resources due to the loss of habitats and hibernation grounds, shall be determined by calculating the difference between the productivity of the relevant ground before and after the effect of an economic activity:

5.1. if indicators regarding the number of adult fish, larvae or juvenile fish thereof in an area or volume unit (pieces/m² or pieces/m³) are available for the specification of the productivity of fish habitats and hibernation grounds, the loss of fish resources due to the loss of fish habitats or hibernation grounds shall be calculated by using the following formula:

Zd = Ld x (N - N₁) x kn x S x C x Gs,

where:

Zd - loss of fish resources due to the loss of fish habitats or hibernation grounds, LVL;

Ld - the area of a habitat or hibernation ground or the volume of water that has come under the effect of harmful factors of the economic activity, m² or m³;

N - the number of adult fish, fish roe, larvae or juvenile fish thereof before the effect of the harmful factors, pieces/m² or pieces/m³;

N₁ - the number of adult fish, fish roe, larvae or juvenile fish thereof after the effect of the harmful factors, pieces/m² or pieces/m³;

Kn - coefficient of the fishing recovery from fish roe, larvae or juvenile fish (k₀, k₁, k₂, k₃), respectively;

S - the average weight of fish usable in commercial fishing, kg; and

C - price, LVL/kg;

Gs - the number of years for which the fishery productivity of fish habitats or hibernation grounds has been reduced; and

5.2. if the indicators referred to in Sub-paragraph 5.1 of this Annex are not available for the determination of the productivity of fish habitats, such indicators may be substituted by fishery productivity of a catch in one area unit (kg/m²) for individual fish species or for all fish together. In such case, loss of fish resources due to the loss of the habitat productivity shall be calculated by using the following formula:

Zdp = Lp x (P - P₁) x C x Gs,

where:

Zdp - loss of fish resources due to the loss of the habitat productivity, LVL;

Lp - the area that has come under the effect of the harmful factors of an economic activity, m²;

P - the area productivity for the relevant fish species or for all fishes together before the effect of the harmful factors, kg/m²;

P₁ - the area productivity for the relevant fish species or for all fishes together after the effect of the harmful factors, kg/m²;

C - price, LVL/kg; and

Gs - the number of years for which the fishery productivity of fish habitats or hibernation grounds has been reduced.

6. The fishing recovery coefiicients to be used for various stages of development and ages of fish species:

7. The value of fish in monetary terms to be used for the calculation of loss of fish resources:

[30 may 2006]

Minister for Agriculture A. Slakteris

Translation © 2007 Tulkošanas un terminoloģijas centrs (Translation and Terminology Centre)