[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21081]


[[Page Unknown]]

[Federal Register: August 26, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 985

[FV94-985-3IFR]

 

Spearmint Oil Produced in the Far West; Revision of the Salable 
Quantity and Allotment Percentage for ``Class 3'' Native Spearmint Oil 
for the 1994-95 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 1994-95 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. The 
Committee recommended this rule to avoid extreme fluctuations in 
supplies and prices and thus help to maintain stability in the Far West 
spearmint oil market.

DATES: Effective on August 26, 1994; comments received by September 26, 
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, D.C. 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 S.W. Third Avenue, Room 369, 
Portland, Oregon 97204-2807; 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, D.C. 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 1994-95 marketing year, which ends on May 31, 1995. 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 145 
producers hold ``Class 3'' (Native) spearmint oil allotment base, and 
approximately 160 producers hold ``Class 1'' (Scotch) spearmint 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 $5,000,000, 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 are 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 quantity of Native spearmint oil that 
handlers may purchase from, or handle for, producers during the 1994-95 
marketing year, which ends on May 31, 1995. This rule increases the 
salable quantity from 897,388 pounds to 1,092,577 pounds and the 
allotment percentage from 46 percent to 56 percent for Native spearmint 
oil for the 1994-95 marketing year.
    The salable quantity is the total quantity of each class of oil 
that handlers may purchase from, or handle for, producers during a 
marketing year. The salable quantity calculated by the Committee is 
based on the estimated trade. The total salable quantity is divided by 
the total industry allotment base to determine an allotment percentage. 
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 quantity and allotment percentages for both 
Native and Scotch spearmint oils for the 1994-95 marketing year were 
recommended by the Committee at its October 6, 1993, meeting. For both 
Native and Scotch spearmint oils, the Committee recommended salable 
quantities of 897,388 pounds and 723,326 pounds, and allotment 
percentages of 46 percent and 41 percent, respectively.
    A proposed rule incorporating the Committee's October 6, 1993, 
recommendation was published in the December 21, 1993, issue of the 
Federal Register [58 FR 67378]. Comments on the proposed rule were 
solicited from interested persons until January 20, 1994. 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 both Native and 
Scotch spearmint oils for the 1994-95 marketing year was published in 
the March 16, 1994, issue of the Federal Register [59 FR 12151].
    Pursuant to authority contained in sections 985.50, 985.51, and 
985.52 of the order, the Committee unanimously recommended at its June 
14, 1994, teleconference meeting that the salable quantity and 
allotment percentage for Native spearmint oil for the 1994-95 marketing 
year be increased. The Committee recommended that the Native spearmint 
oil salable quantity be increased from 897,388 pounds to 1,092,577 
pounds. Based on a revised total allotment base of 1,951,032 pounds, 
the allotment percentage is increased from 46 to 56 percent which 
results in a 195,189 pound increase in the salable quantity.

------------------------------------------------------------------------
                                                    Recommendations     
                                               -------------------------
                                                 October 6,    June 14, 
                                                   1993         1994    
------------------------------------------------------------------------
(1) Salable Quantity..........................      897,388    1,092,577
(2) Total Allotment Base......................    1,950,843    1,951,032
(3) Allotment Percentage......................           46          56 
------------------------------------------------------------------------

    In making this recommendation the Committee considered all 
available information on supply and demand. As of June 14, 1994, the 
Committee reports that of the 1994-95 Native spearmint oil salable 
quantity of 897,388 pounds, 78,787 pounds remained available for 
handling. Handlers have indicated, however, that demand may approximate 
200,000 pounds of Native spearmint oil for the remainder of this 
marketing year. This level of demand was not anticipated by the 
Committee when it made its initial recommendation for the establishment 
of a salable quantity and allotment percentage for Native spearmint oil 
for the 1994-95 marketing year.
    The recommended salable quantity of 1,092,577 pounds of Native 
spearmint oil (an increase of 195,189 pounds), combined with the actual 
June 1, 1994, carry-in of 21,125 pounds, results in a revised 1994-95 
available supply of 1,113,702 pounds. This available supply is 
approximately 30,000 pounds higher than the annual average of sales for 
the past five years. The Committee anticipates that foreseeable demand 
will be adequately met with the recommended increase.
    The Committee did not recommend an increase in the available 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 1994-95 marketing 
year.
    The Department, based on its analysis of available information, has 
determined that an allotment percentage of 56 percent should be 
established for Native spearmint oil for the 1994-95 marketing year. 
This percentage will provide an increased salable quantity of 1,092,577 
pounds of Native spearmint oil.
    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 1994-95 marketing year, 
the Committee's recommendation and other available information, it is 
found that to revise section 985.213 [59 FR 12151] 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 interim final rule increases the quantity of Native 
spearmint oil that may be marketed immediately; (2) Handlers and 
producers should be apprised as soon as possible of the salable 
quantity and allotment percentage of Native spearmint oil contained in 
this interim final rule; and (3) 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 985.213 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. 985.213  Salable quantities and allotment percentages--1994-95 
marketing year.

    The salable quantity and allotment percentage for each class of 
spearmint oil during the marketing year beginning on June 1, 1994, 
shall be as follows:
* * * * *
    (b) ``Class 3'' (Native) oil--a salable quantity of 1,092,577 
pounds and an allotment percentage of 56 percent.

    Dated: August 22, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-21081 Filed 8-25-94; 8:45 am]
BILLING CODE 3410-02-P