[Federal Register Volume 59, Number 209 (Monday, October 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26924]


[[Page Unknown]]

[Federal Register: October 31, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 985

[FV94-985-4IFR]

 

Spearmint Oil Produced in the Far West; Revision of the Salable 
Quantities and Allotment Percentages for ``Class 1'' (Scotch) and 
``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 quantities of ``Class 
1'' (Scotch) and ``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 October 31, 1994; comments received by November 30, 
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 Caroline C. 
Thorpe, 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) 720-8139.

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). This marketing 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 quantities of ``Class 1'' and ``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 marketing order and approximately 260 producers of spearmint oil in 
the regulated production area. Of the 260 producers, approximately 160 
producers hold ``Class 1'' Scotch spearmint oil allotment base, and 
approximately 145 producers hold ``Class 3'' (Native) 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 marketing order). Spearmint oil 
is also produced in the Midwest. The production area covered by the 
marketing order normally accounts for 75 percent of the annual U.S. 
production of spearmint oil.
    This rule increases the quantities of the Scotch and Native classes 
of 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 Scotch spearmint oil salable quantity and 
allotment percentage from 723,326 pounds to 811,516 pounds and 41 
percent to 46 percent, respectively, and the Native spearmint oil 
salable quantity and allotment percentage from 1,092,577 pounds to 
1,287,680 pounds and 56 percent to 66 percent, respectively, 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 demand. 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 quantities and allotment percentages for the 
Scotch and Native classes of spearmint oil for the 1994-95 marketing 
year were recommended by the Committee at its October 6, 1993, meeting. 
The Committee recommended salable quantities of 723,326 pounds and 
897,388 pounds, and allotment percentages of 41 percent and 46 percent, 
respectively, for the Scotch and Native classes of spearmint oil. 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 the Scotch and 
Native classes of spearmint oil for the 1994-95 marketing year was 
published in the March 16, 1994, issue of the Federal Register [59 FR 
12151].
    At its June 14, 1994, teleconference meeting, the Committee 
unanimously recommended 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, 
and that the allotment percentage, based on a revised total allotment 
base of 1,951,032 pounds, be increased from 46 to 56 percent resulting 
in a 195,189 pound increase in the salable quantity.
    An interim final rule incorporating the Committee's June 14, 1994, 
recommendation was published in the August 26, 1994, Federal Register 
(59 FR 44028). Comments on the interim rule were solicited from 
interested persons until September 26, 1994. No comments were received.
    Pursuant to authority contained in sections 985.50, 985.51, and 
985.52 of the marketing order, at its October 5, 1994, meeting, the 
Committee recommended by a unanimous vote to increase the salable 
quantity and allotment percentage for Scotch spearmint oil. The 
committee also recommended by 10 to 1 vote an increase in the salable 
quantity and allotment percentage for Native spearmint oil. The person 
voting in opposition favored a smaller increase in the salable quantity 
and allotment percentage for Native spearmint oil.
    Specifically, the committee recommended that the salable quantities 
and allotment percentages for Scotch and Native classes of spearmint 
oil for the 1994-95 marketing year be increased from 723,326 pounds to 
811,516 pounds, and 1,092,577 pounds to 1,287,680 pounds, respectively. 
Based on a revised total allotment base of 1,763,795 pounds, the 
allotment percentage for Scotch spearmint oil is increased from 41 
percent to 46 percent, resulting in an 88,190 pound increase in the 
salable quantity. Further, based on the same revised total allotment 
base published in the August 26, 1994, Federal Register (59 FR 44028) 
the allotment percentage for Native spearmint oil is increased from 56 
percent to 66 percent, resulting in a 195,103 pound increase in the 
salable quantity. 

                  Scotch Spearmint Oil Recommendations                  
------------------------------------------------------------------------
                                                  Oct. 6,      Oct. 5,  
                                                   1993          1994   
------------------------------------------------------------------------
(1) Salable Quantity..........................      723,326      811,516
(2) Total Allotment Base......................    1,764,209    1,763,795
(3) Allotment Percentage......................           41           46
------------------------------------------------------------------------


                  Native Spearmint Oil Recommendations                  
------------------------------------------------------------------------
                                     Oct. 6,      June 14,     Oct. 5,  
                                      1993         1994          1994   
------------------------------------------------------------------------
(1) Salable Quantity.............      897,388    1,092,577    1,287,680
(2) Total Allotment Base.........    1,950,843    1,951,032    1,951,032
(3) Allotment Percentage.........           46           56           66
------------------------------------------------------------------------

    In making this recommendation the Committee considered all 
available information on supply and demand. As of October 5, 1994, the 
Committee reports that of the respective 1994-95 Scotch and Native 
spearmint oil salable quantities of 723,326 pounds and 1,092,577 
pounds, and approximately 116,000 pounds and 87,000 pounds, 
respectively, remained available for handling. Handlers have indicated, 
however, that demand may approximate 200,000 pounds of Scotch spearmint 
oil, and 300,000 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 the Scotch and Native spearmint oil salable quantities and allotment 
percentages for the 1994-95 marketing year, nor was it foreseen when 
the Committee made its June 14, 1994, recommendation for an increase in 
the Native spearmint oil salable quantity and allotment percentage.
    The recommended salable quantity of 811,516 pounds of Scotch 
spearmint oil (an increase of 88,190 pounds), combined with the actual 
June 1, 1994, carry-in of 145,809 pounds, results in a revised 1994-95 
available supply of 957,325 pounds. Similarly, the recommended salable 
quantity of 1,287,680 pounds of Native spearmint oil (an increase of 
195,103 pounds), combined with the revised June 1, 1994, carry-in of 
19,139 pounds, results in a revised 1994-95 available supply of 
1,306,819 pounds. The revised available supplies of the Scotch and 
Native classes of spearmint oil, respectively, are approximately 67,000 
pounds and 227,000 pounds higher than the respective annual average of 
sales for the past five years. The Committee anticipates that 
foreseeable demand for both classes of oil will be adequately met with 
the recommended increase.
    The Department, based on its analysis of available information, has 
determined that allotment percentages of 46 percent and 66 percent, 
respectively, should be established for the Scotch and Native classes 
of spearmint oil for the 1994-95 marketing year. These percentages will 
provide an increased salable quantity of 811,516 pounds of Scotch 
spearmint oil and an increased salable quantity of 1,287,680 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, final, and interim final rules in 
connection with the establishment of the salable quantities and 
allotment percentages for the Scotch and Native classes of spearmint 
oil for the 1994-95 marketing year, the Committee's recommendation and 
other available information, it is found that to revise Sec. 985.213 to 
change the salable quantities and allotment percentages for the Scotch 
and Native classes of 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 quantities of the 
Scotch and Native classes of spearmint oil that may be marketed 
immediately; (2) the committee recommended this rule a public meeting 
and all interested persons had an opportuntnity to provide input; 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 paragraphs (a) and (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.

* * * * *
    (a) ``Class 1'' (Scotch) oil--a salable quantity of 811,516 pounds 
and allotment percentage of 46 percent.
    (b) ``Class 3'' (Native) oil--a salable quantity of 1,287,680 
pounds and an allotment percentage of 66 percent.

    Dated: October 26, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-26924 Filed 10-26-94; 2:40 pm]
BILLING CODE 3410-02-P