[Federal Register Volume 60, Number 112 (Monday, June 12, 1995)]
[Rules and Regulations]
[Pages 30785-30786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14280]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 985

[FV95-985-3FIR]


Spearmint Oil Produced in the Far West; Revision of the Salable 
Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil 
for the 1995-96 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 
that increased the quantity of Class 3 (Native) spearmint oil produced 
in the Far West that handlers may purchase from, or handle for, 
producers during the 1995-96 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: Effective on July 12, 1995.

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; 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 1995-96 marketing year, 
which ends on May 31, 1996. 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 
normally accounts for approximately 75 percent of the annual U.S. 
production of spearmint oil.
    This final rule finalizes an interim final rule that increased the 
quantity of Native spearmint oil that handlers may purchase from, or 
handle for, producers during the 1995-96 marketing year, which ends on 
May 31, 1996. The interim final rule increased the salable quantity 
from 906,449 pounds to 1,004,976 pounds and the allotment percentage 
from 46 percent to 51 percent for Native spearmint oil for the 1995-96 
marketing year.
    The interim final rule was issued on April 7, 1995, and published 
in the Federal Register (60 FR 18950, April 14, 1995), with an 
effective date of April 14, 1995. That rule amended section 985.214 of 
the rules and regulations in effect under the order. The rule provided 
a 30-day comment period which ended May 15, 1995. No comments were 
received. [[Page 30786]] 
    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 quantity and allotment percentages for Scotch 
and Native spearmint oils for the 1995-96 marketing year were 
recommended by the Committee at its October 5, 1994, meeting. The 
Committee recommended salable quantities of 908,531 pounds and 906,449 
pounds, and allotment percentages of 51 percent and 46 percent, 
respectively, for Scotch and Native spearmint oils. A proposed rule was 
published in the December 15, 1994, issue of the Federal Register (59 
FR 64625). Comments on the proposed rule were solicited from interested 
persons until January 17, 1995. 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 Scotch and Native spearmint oils for the 1995-96 
marketing year was published in the February 15, 1995, issue of the 
Federal Register (60 FR 8524).
    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 1995-96 marketing year be 
increased from 906,449 pounds to 1,004,976 pounds. The member voting in 
opposition did not favor an increase in the salable quantity and 
allotment percentage because he believed it was too early to determine 
what the market conditions will be during the 1995-96 marketing year. 
Based on the total allotment base of 1,970,542 pounds, the allotment 
percentage for Native spearmint oil is increased from 46 percent to 51 
percent, resulting in a 98,527 pound increase in the salable quantity.

Native Spearmint Oil Recommendations

(1) Salable Quantity

October 5, 1994
906,449 pounds
February 22, 1995
1,004,976 pounds

(2) Allotment Base

October 5, 1994
1,970,542 pounds
February 22, 1995
1,970,542 pounds

(3) Allotment Percentage

October 5, 1994
46 percent
February 22, 1995
51 percent

    In making this latest recommendation, the Committee considered all 
available information on supply and demand. The 1995-96 marketing year 
begins on June 1, 1995. Handlers have indicated that the available 
supply of Scotch spearmint oil appears adequate to meet anticipated 
demand through May 31, 1996. Handlers have indicated, however, that 
demand for Native spearmint oil is currently fairly strong and 
anticipate that this trend will likely continue into the next marketing 
year. Based upon this strengthening demand, as well as historical data 
that indicates the annual average of sales for the last eight years is 
1,006,512 pounds, the Committee believes that an increase in the 
salable quantity to 1,004,976 pounds is necessary to meet anticipated 
demand. This level of demand was not anticipated by the Committee when 
it made its initial recommendation for the establishment of the Native 
spearmint oil salable quantity and allotment percentage for the 1995-96 
marketing year.
    The recommended salable quantity of 1,004,976 pounds of Native 
spearmint oil (an increase of 98,527 pounds), combined with a revised 
estimated carry-in of 100,000 pounds on June 1, 1995, results in a 
revised 1995-96 estimated available supply of 1,104,976 pounds. Thus, 
the revised estimate for the 1995-96 marketing year Native spearmint 
oil available supply is approximately 100,000 pounds higher than the 
annual average of sales for the past eight years. With this revision, 
the Committee anticipates that demand for Native spearmint oil during 
the 1995-96 marketing year will be adequately met.
    The Department, based on its analysis of available information, has 
determined that an allotment percentage of 51 percent should be 
established for Native spearmint oil for the 1995-96 marketing year. 
This percentage will provide an increased salable quantity of 1,004,976 
pounds of Native spearmint oil.
    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, interim final and final rules in 
connection with the establishment of the salable quantities and 
allotment percentages for Scotch and Native spearmint oils for the 
1995-96 marketing year, the Committee's recommendation and other 
available information, it is found that to finalize the interim final 
rule revising Sec. 985.214 (60 FR 8524) of the salable quantity and 
allotment percentage for Native spearmint oil, as hereinafter set 
forth, will tend to effectuate the declared policy of the Act.

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 18950 on April 14, 1995, is adopted as a final 
rule without change.

    Dated: June 6, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-14280 Filed 6-9-95; 8:45 am]
BILLING CODE 3410-02-P