[Federal Register Volume 61, Number 69 (Tuesday, April 9, 1996)]
[Rules and Regulations]
[Pages 15695-15697]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8719]



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  Federal Register / Vol. 61, No. 69 / Tuesday, April 9, 1996 / Rules 
and Regulations  

[[Page 15695]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[FV96-985-1IFR]


Spearmint Oil Produced in the Far West; Revision of the Salable 
Quantity and Allotment Percentage for Class 1 (Scotch) Spearmint Oil 
for the 1995-96 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 1 
(Scotch) 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.

DATES: Effective on April 9, 1996 through May 31, 1996; comments 
received by May 9, 1996 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, DC 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, DC 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 Scotch 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 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 
(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

[[Page 15696]]
approximately 75 percent of the annual U.S. production of spearmint 
oil.
    This rule increases the quantity of Scotch spearmint oil that 
handlers may purchase from, or handle for, producers during the 1995-96 
marketing year, which ends on May 31, 1996. This rule increases the 
salable quantity from 908,531 pounds to 997,317 pounds and the 
allotment percentage from 51 percent to 56 percent for Scotch spearmint 
oil for the 1995-96 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 individual 
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 64624). 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 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). The 
Committee met again on February 22, 1995, to recommend an increase in 
the salable quantity and allotment percentage for Native spearmint oil. 
An interim final rule increasing the salable quantity and allotment 
percentage for Native spearmint oil by 98,527 and 5 percent, 
respectively, was published in the Federal Register on April 14, 1995 
(60 FR 18950). Comments were solicited on the interim final rule until 
May 15, 1995. No comments were received. Accordingly, based upon 
analysis of available information, a final rule establishing as the 
salable quantity and allotment percentage for Native spearmint oil for 
the 1995-96 marketing year was published in the June 12, 1995, issue of 
the Federal Register (60 FR 30785).
    Pursuant to authority contained in sections 985.50, 985.51, and 
985.52 of the order, at its February 27, 1996, meeting, the Committee 
unanimously recommended that the allotment percentage for Scotch 
spearmint oil for the 1995-96 marketing year be increased by 5 percent 
from 51 percent to 56 percent. The 1995-96 marketing year salable 
quantity of 908,531 pounds would therefore be increased by 89,046 
pounds to 997,317 pounds.
    However, some Scotch spearmint oil producers did not produce all of 
their individual salable quantities for the 1995-96 marketing year, or 
fill their deficiencies from the prior year's production. The marketing 
order authorizes such producers to have their deficiencies filled by 
other producers who have production in excess of their salable 
quantities. This is optional for producers, but must be done before 
November 1 of each marketing year. Although the Scotch spearmint oil 
salable quantity for 1995-96 was established at 908,531 pounds, only 
887,093 pounds were actually made available. Unfilled deficiencies 
totaled 21,178 pounds.
    In addition, for the Scotch spearmint oil the total industry 
allotment base of 1,781,433 pounds was revised to 1,780,923 pounds to 
reflect loss of base due to non-production of their total annual 
allotments. This adjustment resulted in a 510 pound loss of total 
industry base, which is reflected in the calculations for the revised 
salable quantity.
    This interim final rule makes an additional amount of Scotch 
spearmint oil available by increasing the salable quantity which 
releases oil from the reserve pool. Only producers with Scotch 
spearmint oil in the reserve pool will be able to use this increase in 
the salable quantity. Prior to November 1, 1995, producers without 
reserve pool oil or producers with an insufficient supply of reserve 
oil could have deficiencies in meeting their salable quantities filled 
by producers having excess Scotch spearmint oil. If all producers could 
use their salable quantity, this 5 percent increase in the allotment 
percentage would have made an additional 89,046 pounds of Scotch 
spearmint oil available. However, Scotch spearmint oil producers having 
21,260 pounds of Scotch spearmint oil will not be able to use their 
reserve pool deficiencies this marketing year. Thus, rather than 89,046 
additional pounds being made available, this action makes 67,786 
additional pounds of Scotch spearmint oil available to the market.
    The following table summarizes the Committee recommendation:

Scotch Spearmint Oil Recommendation

(a) Actual Carry In on June 1, 1995: 150,637 pounds
(b) 1995-96 Salable Quantity: 908,531 pounds
(c) 1995-96 Available Supply: 1,059,168 pounds (a+b)
(d) Total Sales as of February 27, 1996: 883,959 pounds
(e) Calculated Available Supply as of February 27, 1996: 175,209 
pounds (c-d)
(f) Unfilled Deficiencies in producers' salable quantities prior to 
November 1, 1995: 21,178 pounds
(g) Unusable salable quantities due to producers not having reserve 
pool oil: 21,260 pounds
(h) Total Deficiency Affecting Salable Quantity: 42,438 pounds (f+g)
(i) Actual Available Supply (2/27/96): 153,771 pounds (e-f)
(j) Revised Total Allotment Base: 1,780,923 pounds
(k) Recommended Allotment Percentage (2/27/96): 56 percent
(l) Calculated Revised Salable Quantity: 997,317 pounds (j x k)
(m) Actual Oil Available as Salable Quantity: 954,879 pounds (l-h)

    In making this latest recommendation, the Committee considered all 
available information on supply and demand. The 1996-97 marketing year 
begins on June 1, 1996. Handlers have indicated that with this action, 
the available supply of both Scotch and Native spearmint oils appears 
adequate to meet anticipated demand through May 31, 1996. However, with 
increases in Scotch spearmint oil production elsewhere over the past 
two years, the Committee has embarked on a strategy of maintaining an 
abundance of Scotch spearmint oil available for market in an attempt to 
regain lost market share. With 153,771 pounds of Scotch spearmint oil 
available as of February 27, 1996, the Committee, believes that the 
increase would ensure that ample supplies of Scotch spearmint oil are 
available throughout the remainder of the current marketing year. When 
the Committee made its initial recommendation for the establishment of 
the Scotch spearmint oil salable quantity and allotment percentage for 
the 1995-96 marketing year, it had anticipated that the year would end 
with an ample available supply. With this revision, 221,557 pounds of 
Scotch spearmint oil is made available for market during the remainder 
of the 1995-96 marketing year.
    The Department, based on its analysis of available information, has 
determined

[[Page 15697]]
that an allotment percentage of 56 percent should be established for 
Scotch spearmint oil for the 1995-96 marketing year. This percentage 
will provide an increased calculated salable quantity of 997,317 
pounds, the actual additional amount of Scotch spearmint oil being made 
available by this interim final rule is 67,786 pounds. This results in 
an actual salable quantity of 954,879 pounds of Scotch 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 Scotch and Native spearmint oils for the 1995-96 marketing year, 
the Committee's recommendation and other available information, it is 
found that to revise section 985.214 (60 FR 8524) to change the salable 
quantity and allotment percentage for Scotch 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 the 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 Scotch 
spearmint oil that may be marketed during the marketing year beginning 
on June 1, 1995; (2) The quantity of Scotch spearmint planted for the 
1996-97 marketing year may be affected, thus handlers and producers 
should be apprised as soon as possible of the salable quantity and 
allotment percentage of Scotch 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 985.214 is amended by revising paragraph (a) to read as 
follows:

    Note: This section will not appear in the annual Code of Federal 
Regulations.


Sec. 985.214  Salable quantities and allotment percentages-1995-96 
marketing year.

    The salable quantity and allotment percentage for each class of 
spearmint oil during the marketing year beginning on June 1, 1995, 
shall be as follows:
    (a) Class 1 (Scotch) oil--a salable quantity of 997,317 pounds and 
an allotment percentage of 56 percent.
* * * * *
    Dated: April 2, 1996.
James R. Rodeheaver,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-8719 Filed 4-8-96; 8:45 am]
BILLING CODE 3410-02-P