[Federal Register Volume 60, Number 66 (Thursday, April 6, 1995)]
[Rules and Regulations]
[Pages 17434-17436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8426]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 985

[FV95-985-2IFR]


Spearmint Oil Produced in the Far West; Revision of the Salable 
Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil 
for the 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.

EFFECTIVE DATE: April 6, 1995; comments received by May 8, 1995 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 SW. 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), 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. [[Page 17435]] 
    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) 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 order). Spearmint oil is also 
produced in the Midwest. The production area covered by the order 
accounts for approximately 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 1,287,680 pounds to 1,358,404 pounds and the 
allotment percentage from 66 percent to 70 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 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 Scotch 
and Native spearmint oils 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 Scotch and Native spearmint oils. A proposed rule 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 salable quantities and allotment percentages for Scotch and Native 
spearmint oils 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 
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 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.
    At its October 5, 1994, meeting, the Committee recommended that the 
salable quantities for Scotch and Native spearmint oils for the 1994-95 
marketing year be increased from 723,326 pounds to 811,516 pounds, and 
from 1,092,577 pounds to 1,287,680 pounds, respectively. Based on a 
revised total allotment base of 1,763,795 pounds, the Committee 
recommended that the allotment percentage for Scotch spearmint oil be 
increased from 41 percent to 46 percent, resulting in an 88,190 pound 
increase in the salable quantity. Further, based on the revised total 
allotment base published in the August 26, 1994, Federal Register (59 
FR 44028), the Committee recommended that the allotment percentage for 
Native spearmint oil be increased from 56 percent to 66 percent, 
resulting in a 195,103 pound increase in the salable quantity.
    An interim final rule amending the August 26, 1994, rule was 
published in the October 31, 1994, Federal Register (59 FR 54376). 
Comments on the interim rule were solicited from interested persons 
until November 30, 1994. No comments were received.
    Accordingly, based upon an analysis of available information, a 
final rule finalizing the 1994-95 salable quantities and allotment 
percentages was published in the February 2, 1995, Federal Register (60 
FR 6392).
    Pursuant to authority contained in sections 985.50, 985.51, and 
985.52 of the order, at its February 22, 1995, meeting, the Committee 
recommended, with one member voting in opposition, that the salable 
quantity for Native spearmint oil for the 1994-95 marketing year be 
increased from 1,287,680 pounds to 1,358,404 pounds. The member voting 
in opposition favored the establishment of a lower salable quantity 
that would have resulted in a lower allotment percentage. Based on the 
revised total allotment base of 1,951,032 pounds, the allotment 
percentage for Native spearmint oil is increased from 66 percent to 70 
percent, resulting in a 70,724 pound increase in the salable quantity.

Native Spearmint Oil Recommendations

(1) Salable Quantity
  October 6, 1993
897,388 pounds
  June 14, 1994
1,092,577 pounds
  October 5, 1994
1,287,680 pounds [[Page 17436]] 
  February 22, 1995
1,358,404 pounds
(2) Total Allotment Base
  October 6, 1993
1,950,843 pounds
  June 14, 1994
1,951,032 pounds
  October 5, 1994
1,951,032 pounds
  February 22, 1995
1,951,032 pounds
(3) Allotment Percentage
  October 6, 1993
46 percent
  June 14, 1994
56 percent
  October 5, 1994
66 percent
  February 22, 1995
70 percent

    In making this latest recommendation the Committee considered all 
available information on supply and demand.
    As of February 22, 1995, the Committee reports that of the 1994-95 
marketing year Scotch and Native spearmint oil salable quantities of 
811,516 pounds and 1,287,680 pounds, respectively, 154,375 pounds and 
70,840 pounds remained available for handling. Handlers have indicated 
that the available supply of Scotch spearmint oil is adequate to meet 
anticipated demand through May 31, 1995. However, handlers have 
indicated that demand for Native spearmint oil may be as high as 
100,000 pounds 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 
and October 5, 1994, recommendations for increasing the Native 
spearmint oil salable quantity and allotment percentage.
    The recommended salable quantity of 1,358,404 pounds of Native 
spearmint oil (an increase of 70,724 pounds), combined with the June 1, 
1994, carry-in of 19,139 pounds, results in a revised 1994-95 available 
supply of 1,377,543 pounds. The revised available supply of Native 
spearmint oil is approximately 300,000 pounds higher than the annual 
average of sales for the past five years. The Committee anticipates 
that foreseeable demand for Native spearmint oil will be adequately met 
for the remainder of the 1994-95 marketing year.
    The Department, based on its analysis of available information, has 
determined that an allotment percentage of 70 percent should be 
established for Native spearmint oil for the 1994-95 marketing year. 
This percentage will provide an increased salable quantity of 1,358,404 
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 Scotch and Native 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 (60 
FR 6392) 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 1,358,404 pounds 
and an allotment percentage of 70 percent.

    Dated: March 31, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-8426 Filed 4-5-95; 8:45 am]
BILLING CODE 3410-02-P