[Federal Register Volume 60, Number 112 (Monday, June 12, 1995)]
[Rules and Regulations]
[Pages 30783-30785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14278]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[FV95-985-2FIR]


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: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
increasing 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: June 1, 1994, through May 31, 1995.

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, PO Box 96456, 
Washington, DC 20090-6456; telephone: (202) 720-8139; or Fax: (202) 
720-5698.

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 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 final rule 
finalizes an interim final rule that increased 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 8 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 final rule finalizes an interim final rule increasing 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 [[Page 30784]] 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 Secs. 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
    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.
    An interim final rule concerning this action was issued on March 
31, 1995, and was published in the Federal Register (60 FR 17434). 
Comments were solicited from interested persons through May 8, 1995. No 
comments were received.
    Based on available information, the Administrator of the AMS has 
determined that the issuance of this 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 Sec. 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 final rule finalizes an interim final rule increasing 
the quantity of Native spearmint oil that may be marketed during the 
marketing year beginning on June 1, 1994; and (2) Handlers are aware of 
this rule which was recommended by the Committee at [[Page 30785]] a 
public meeting and published in the Federal Register as an interim 
final rule with a 30-day comment period.

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

    Accordingly, the interim final rule amending 7 CFR part 985 which 
was published at 60 FR 17434 on April 6, 1995, is adopted as a final 
rule without change.

    Dated: June 6, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-14278 Filed 6-9-95; 8:45 am]
BILLING CODE 3410-02-P