[Federal Register Volume 59, Number 81 (Thursday, April 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10224]


[Federal Register: April 28, 1994]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 985

[FV94-985-2IFR]


Spearmint Oil Produced in the Far West; Revision of the Salable 
Quantity and Allotment Percentage for ``Class 3'' Native Spearmint Oil 
for the 1993-94 Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule increases the quantity of Class 3 
(Native) spearmint oil produced in the Far West that handlers may 
purchase from, or handle for, producers during the 1993-94 marketing 
year. This rule was recommended by the Spearmint Oil Administrative 
Committee (Committee), the agency responsible for local administration 
of the marketing order for spearmint oil produced in the Far West. This 
rule was recommended in order to avoid extreme fluctuations in supplies 
and prices and thus help to maintain stability in the spearmint oil 
market.

DATES: Effective on April 28, 1994; comments received by May 31, 1994, 
will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525, South 
Building, P.O. Box 96456, Washington, DC 20090-6456, Fax: (202) 720-
5698. All comments should reference the docket number and the date and 
page number of this issue of the Federal Register and will be made 
available for public inspection in the Office of the Docket Clerk 
during regular business hours.

FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, 1220 SW. Third Avenue, room 369, 
Portland, Oregon 97204; telephone: (503) 326-2724; or Christian D. 
Nissen, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, room 2525, South Building, P.O. Box 96456, 
Washington, DC 20090-6456; telephone: (202) 720-5127.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 985 [7 CFR part 985], regulating the handling of spearmint oil 
produced in the Far West (Washington, Idaho, Oregon, and designated 
parts of California, Nevada, Montana, and Utah), hereinafter referred 
to as the ``order.'' This order is effective under the Agricultural 
Marketing Agreement Act of 1937, as amended [7 U.S.C 601-674], 
hereinafter referred to as the ``Act.''
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. Under the provisions of the marketing order now in 
effect, salable quantities and allotment percentages may be established 
for classes of spearmint oil produced in the Far West. This rule 
increases the quantity of Class 3 spearmint oil produced in the Far 
West that may be purchased from or handled for producers by handlers 
during the 1993-94 marketing year, which ends on May 31, 1994. This 
rule will not preempt any state or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary a 
petition stating that the order, any provision of the order, or any 
obligation imposed in connection with the order is not in accordance 
with law and request a modification of the order or to be exempted 
therefrom. A handler is afforded the opportunity for a hearing on the 
petition. After the hearing the Secretary would rule on the petition. 
The Act provides that the district court of the United States in any 
district in which the handler is an inhabitant, or has his or her 
principal place of business, has jurisdiction in equity to review the 
Secretary's ruling on the petition, provided a bill in equity is filed 
not later than 20 days after date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of the Agricultural Marketing Service 
(AMS) has considered the economic impact of this action on small 
entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf. Thus, both statutes have small 
entity orientation and compatibility.
    There are eight spearmint oil handlers subject to regulation under 
the order and approximately 260 producers of spearmint oil in the 
regulated production area. Of the 260 producers, approximately 160 
producers hold ``Class 1'' (Scotch) oil allotment base, and 145 
producers hold ``Class 3'' (Native) oil allotment base. Small 
agricultural service firms have been defined by the Small Business 
Administration [13 CFR 121.601] as those having annual receipts of less 
than $3,500,000, and small agricultural producers are defined as those 
whose annual receipts are less than $500,000. A minority of handlers 
and producers of Far West spearmint oil may be classified as small 
entities.
    The Far West spearmint oil industry is characterized by producers 
whose farming operations generally involve more than one commodity and 
whose income from farming operations is not exclusively dependent on 
the production of spearmint oil. The U.S. production of spearmint oil 
is concentrated in the Far West, primarily Washington, Idaho, and 
Oregon (part of the area covered by the order). Spearmint oil is also 
produced in the Midwest. The production area covered by the order 
normally accounts for 75 percent of the annual U.S. production of 
spearmint oil.
    This rule increases the salable quantity and allotment percentage 
of Native spearmint oil that handlers may purchase from, or handle for, 
producers during the 1993-94 marketing year, which ends on May 31, 
1994. This rule increases the salable quantity from 714,665 pounds to 
772,611 pounds and the allotment percentage from 37 percent to 40 
percent for Native spearmint oil.
    The salable quantity is the total quantity of each class of oil 
which handlers may purchase from, or handle on behalf of, producers 
during a marketing year. Each producer is allotted a share of the 
salable quantity by applying the allotment percentage to the producer's 
allotment base for the applicable class of spearmint oil.
    The initial salable quantities and allotment percentages for both 
Native and Scotch spearmint oils for the 1993-94 marketing year were 
recommended by the Committee at its October 15, 1992, meeting. The 
Committee recommended salable quantities of 714,665 pounds and 716,164 
pounds for Native and Scotch oils, respectively, and allotment 
percentages of 37 percent and 41 percent for Native and Scotch oils, 
respectively.
    A proposed rule incorporating the Committee's October 15, 1992, 
recommendation was published in the December 7, 1992, issue of the 
Federal Register [57 FR 57695]. Comments on the proposed rule were 
solicited from interested persons until January 6, 1993. No comments 
were received. Accordingly, based upon analysis of available 
information, a final rule establishing the Committee's recommendation 
as the salable quantities and allotment percentages for the 1993-94 
marketing year was published in the May 13, 1993, issue of the Federal 
Register [58 FR 28340].
    Pursuant to authority contained in sections 985.50, 985.51, and 
985.52 of the order, at its February 23, 1994, meeting in Pasco, 
Washington, the Committee recommended that the salable quantity and 
allotment percentage for Native spearmint oil for the 1993-94 marketing 
year be increased. The Committee vote resulted in seven members in 
favor and one member opposed to the recommendation. The member voting 
in opposition believes current demand for Native spearmint oil is not 
adequate enough to warrant an increase in the salable quantity and 
allotment percentage.
    The Committee's recommendation to increase the allotment percentage 
for Native spearmint oil by three percent results in a 57,946 pound 
increase in the salable quantity, from 714,665 to 772,611 pounds. 
Growers currently hold in reserve 1,436,020 pounds of Native oil and 
948,063 pounds of Scotch oil. However, the Committee states that not 
all producers have reserve oil available to fill their increase in the 
salable quantity. In those cases, no additional oil is made available 
to the market. Therefore, this rule provides an actual increase of 
55,553 pounds of additional base rather than the calculated amount. 
This small difference between the calculated and actual amounts of 
released oil will not have a significant impact on the availability of 
marketable oil.
    The Committee, in reaching its decision to recommend an increase in 
the 1993-94 salable quantity and allotment percentage for Native 
spearmint oil, took into consideration the current supply and 
anticipated demand for both Native and Scotch spearmint oils. The 
available supply of Native and Scotch spearmint oil as of February 23, 
1994, is 59,599 pounds and 175,000 pounds, respectively. When 
considering its initial recommendation for the 1993-94 season, the 
Committee estimated that the recommended salable quantity and allotment 
percentage would result in an approximate carryover of 90,000 pounds of 
Native oil. This places the current available supply of Native oil 
below the expected carryover.
    Over the past five years, the average utilization of Native oil 
between March 1 and May 31 is 91,375 pounds. This figure is 
considerably more than the existing available supply. In addition, a 
majority of spearmint oil buyers indicated they will be in a position 
to buy additional Native spearmint oil if it is made available. By 
increasing the Native spearmint oil allotment percentage by three 
percent, the available supply (as of February 23, 1994), will increase 
by 55,553 pounds, from 59,599 pounds to 115,152 pounds.
    In its deliberations on how best to meet the anticipated demand, 
Committee members and other industry participants indicated that the 
available Native spearmint oil supply should be increased by three to 
seven percent. The majority of the individuals recommending some level 
of increase favored three percent, indicating a higher level may push 
Native oil supply into a surplus situation before the end of the 
marketing year. The Committee did not recommend an increase in the 
supply of Scotch spearmint oil since it is anticipated that there will 
be a surplus supply of this type of oil by the end of the marketing 
year.
    The Department, based on its analysis of available information, has 
determined that an allotment percentage of 40 percent should be 
established for Native spearmint oil for the 1993-94 marketing year. 
This percentage will provide an increase in the salable quantity of 
Native spearmint oil from 714,665 pounds to 772,611 pounds.
    Based on available information, the Administrator of the AMS has 
determined that the issuance of this interim final rule will not have a 
significant economic impact on a substantial number of small entities.
    After consideration of all relevant matter presented, including 
that contained in the prior proposed and final rules in connection with 
the establishment of the salable quantities and allotment percentages 
for Native and Scotch spearmint oils for the 1993-94 marketing year, 
the Committee's recommendation and other available information, it is 
found that to revise Sec. 985.212 [58 FR 28340] to change the salable 
quantity and allotment percentage for Native spearmint oil, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) This final action increases the quantity of Native 
spearmint oil that may be marketed immediately; (2) The Committee 
recommended this rule at a public meeting and all interested persons 
had an opportunity to provide input; (3) Handlers and producers should 
be apprised as soon as possible of the salable quantity and allotment 
percentage of Native oil contained in this interim final rule; and (4) 
This rule provides a 30-day comment period and any comments received 
will be considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 985

    Marketing agreements, Oils and fats, Reporting and recordkeeping 
requirements, Spearmint oil.
    For the reasons set forth in the preamble, 7 CFR part 985 is 
amended as follows:

PART 985--SPEARMINT OIL PRODUCED IN THE FAR WEST

    1. The authority citation for 7 CFR part 985 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. Section 985.212 is amended by revising the introductory text and 
paragraph (b) to read as follows:

    Note: This section will not appear in the annual Code of Federal 
Regulations.


Sec. 985.212  Salable quantities and allotment percentages--1993-94 
marketing year.

    The salable quantity and allotment percentage for each class of 
spearmint oil during the marketing year beginning on June 1, 1993, 
shall be as follows:
* * * * *
    (b) ``Class 3'' (Native) oil--a salable quantity of 772,611 pounds 
and an allotment percentage of 40 percent.

    Dated: April 20, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-10224 Filed 4-26-94; 8:45 am]
BILLING CODE 3410-02-P