[Federal Register Volume 67, Number 210 (Wednesday, October 30, 2002)]
[Proposed Rules]
[Pages 66083-66086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27443]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 9

[Notice No. 961]
RIN 1512-AC66


Red Hills (California) Viticultural Area (2001R-330P)

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms has received a 
petition proposing the establishment of the ``Red Hills'' viticultural 
area in Lake County, California. This proposed 31,250-acre viticultural 
area lies entirely within the current Clear Lake viticultural area in 
Lake County, which is, in turn, entirely within the multi-county North 
Coast viticultural area.

DATES: Written comments must be received by December 30, 2002.

ADDRESSES: Send written comments to: Chief, Regulations Division, 
Bureau of Alcohol, Tobacco and Firearms, P.O. Box 50221, Washington, DC 
20091-0221, (Attn: Notice No. 961). See the ``Public Participation'' 
section of this document for alternative methods of commenting.
    Copies of the petition, the proposed regulations, the appropriate 
maps, and any written comments received will be available for public 
inspection during normal business hours at the ATF Reference Library, 
Office of Public Affairs and Disclosure, Room 6480, 650 Massachusetts 
Avenue, NW., Washington, DC 20226; telephone 202-927-7890.

FOR FURTHER INFORMATION CONTACT: N. A. Sutton, Specialist, Regulations 
Division (San Francisco, CA), Bureau of Alcohol, Tobacco and Firearms, 
221 Main Street, 11th Floor, San Francisco, CA 94105-1906; telephone 
(415) 947-5192.

SUPPLEMENTARY INFORMATION:

Background

    The Federal Alcohol Administration Act (FAA Act) at 27 U.S.C. 
205(e) requires that alcohol beverage labels provide the consumer with 
adequate information regarding a product's identity while prohibiting 
the use of deceptive information on such labels. The FAA Act also 
authorizes the Bureau of Alcohol, Tobacco and Firearms (ATF) to issue 
regulations to carry out the Act's provisions.
    Regulations in 27 CFR part 4, Labeling and Advertising of Wine, 
allow the establishment of definitive viticultural areas. The 
regulations allow the name of an approved viticultural area to be used 
as an appellation of origin on wine labels and in wine advertisements. 
A list of approved viticultural areas is contained in 27 CFR Part 9, 
American Viticultural Areas.
    Section 4.25a(e)(1), title 27 CFR, defines an American viticultural 
area as a delimited grape-growing region distinguishable by geographic 
features, the boundaries of which have been delineated in subpart C of 
part 9.
    Section 4.25a(e)(2) outlines the procedure for proposing an 
American viticultural area. Any interested person may petition ATF to 
establish a grape-growing region as a viticultural area. The petition 
should include:
    (a) Evidence that the name of the proposed viticultural area is 
locally and/or nationally known as referring to the area specified in 
the petition;
    (b) Historical or current evidence that the boundaries of the 
viticultural area are as specified in the petition;
    (c) Evidence relating to the geographical characteristics (climate, 
soil, elevation, physical features, etc.) which distinguish the 
viticultural features of the proposed area from surrounding areas;
    (d) A description of the specific boundaries of the viticultural 
area, based on features which can be found on United States Geological 
Survey (U.S.G.S.) maps of the largest applicable scale; and
    (e) A copy (or copies) of the appropriate U.S.G.S. map(s) with the 
boundaries prominently marked.

Impact on Current Wine Labels

    If this proposed viticultural area is approved, bottlers using 
brand names similar to the name of the viticultural area must review 
their existing products to insure that they are eligible to use the 
viticultural area's name as the appellation of origin. To be eligible, 
85% of the grapes in a wine must be grown within the viticultural area. 
If a product is not eligible to use the viticultural area as an 
appellation, the bottler must obtain approval of a label with a 
different brand name for that wine. (See 27 CFR 4.39(i).)

Red Hills Petition

    The Bureau of Alcohol, Tobacco and Firearms (ATF) has received a 
petition proposing a new viticultural area to be called ``Red Hills.'' 
The petition was filed by Sara Schorske of Compliance Service of 
America on behalf of several grape growers within the proposed 
viticultural area. Located about 80 miles north of San Francisco, the 
proposed 31,250 acre viticultural area is located entirely within the 
Clear Lake viticultural area in Lake County, California, which is, in 
turn, within the larger multi-county North Coast viticultural area. 
Approximately 2,500 acres are planted to grapes with another 3,000 to 
5,000 acres available for vineyards.
    Situated on a large tract of rocky, red-colored volcanic soil, the 
petitioner contends that the proposed Red Hills viticultural area is 
distinct from the surrounding region. Steep ridges, volcanic mountains, 
and a large body of water, Clear Lake, border the proposed area's 
upland plain. The petitioner states the proposed viticulture area's 
distinctive microclimate is derived from its gently rolling terrain and 
its close proximity to a large lake and surrounding mountains.

Evidence That the Name of the Area Is Locally or Nationally Known

    The petitioner indicates the area is locally known as Red Hills. 
The name reflects the area's prevalent red, volcanic soils and gentle 
hilly terrain. The petitioner submitted evidence documenting the name's 
current usage, including references to this area as the Red Hills 
district, Red Hills area, Red Hills walnut district and Red Hills 
agricultural district in Lake County Planning Department documents. The 
petitioner also notes the University of California Red Hills weather 
station and the Red Hills Geothermal Prospect area are both located 
within the proposed viticultural area. Red Hills Road, which meanders 
through the proposed area's southwest quadrant, is shown on a Rand 
McNally county map, the Lake County Travel Atlas, DeLorme's Northern 
California Atlas, and in a published

[[Page 66084]]

listing of local scenic roads. Red Hills Country Day School is located 
along this road.
    The petitioner also submitted evidence documenting the historical 
usage of the Red Hills name, including a 1977 description of the area's 
``rolling red soil'' by local historian Henry Mauldin. He emphasized 
that the name Red Hills defined the area and not a separate prominent 
point. A 1949 written account of the Red Hills walnut territory 
indicated its location on both sides of Red Hills Road within the 
proposed viticultural area.

Historical or Current Evidence That the Boundaries of the Viticultural 
Area Are as Specified in the Petition

    According to the petitioner, the proposed area's boundaries are 
based on historical and current viticulture, geographical features, and 
a unique microclimate.
    Historically, walnuts have been the major agricultural crop of this 
area, prospering on the red soil and rolling terrain. Around the time 
of Prohibition, two small vineyards were replaced with walnut orchards, 
but in more recent years several old orchards have been replanted to 
wine grapes. There are now 2,500 acres of vineyards in the proposed 
viticultural area, and more blocks are planned for future development.
    Geographical factors also help define the proposed viticultural 
area's borders, according to the petitioner. These factors include the 
self-containment of the area, with its mountain, ridge, and lake 
boundaries, its hilly terrain, and its blanket of red, volcanic soils. 
The petitioner also notes the geography and location of the area 
promote the moderating microclimate and wind patterns that allow for 
viticulture without damaging frosts. These factors are discussed 
further below.

Evidence Relating to the Geographical Features Which Distinguish the 
Proposed Area's Viticultural Features

    The petitioner states that the proposed Red Hills viticultural 
area's boundaries are based on a combination of terrain, soil, and 
climate factors that contrast with the surrounding area.
Physical Features
    Lake County is generally mountainous, with protected fertile 
valleys and a large lake near its center. Mt. Konocti, a volcano 
outside the northwest boundary of the proposed area, and Clear Lake are 
two notable geographical points in the county.
    South of Clear Lake is a field of volcanic hills and mountains. The 
proposed Red Hills viticultural area is within this volcanic field of 
gently rolling terrain, which is covered with rocky, red volcanic soil. 
It is bordered on the north by Mt. Konocti and Clear Lake, on the south 
by the Coast Range mountain chain, and on the east and west by ridges. 
The petitioner provided photographs to document the contrast between 
the red, rolling hills of the proposed area with the wider valleys and 
higher mountains of the surrounding areas.
    As described in the petition, the proposed area's northern boundary 
line excludes Mt. Konocti above its 2,600-foot elevation, Clear Lake at 
the water line, and all of Anderson Flat with its different soils. The 
east boundary line excludes the town of Lower Lake, which sits on an 
alluvial fan, and a steep ridge with older bedrock and different soils. 
The south boundary generally coincides with the Clear Lake AVA boundary 
line, but excludes the higher mountains of the Mayacmas Range. The 
petitioner notes these peaks share a common volcanic heritage with the 
rolling hills, but contends the steep slopes and high elevations are 
unsuitable for commercial viticulture. The western boundary excludes 
Boggs Lake, a large vernal pool, Camelback Ridge, and Mt. Konocti above 
2,600 feet.
Soils
    Red, volcanic soils cover over 90% of the proposed area, according 
to the petition, and are composed of Glenview-Bottlerock-Arrowhead, 
Konocti-Benridge, and Collayomi-Aiken types. All three soil types are 
red and have a high rock fragment or gravel content. These red, stony 
soils are a primary factor motivating the recent growth of viticulture 
within the proposed area, according to the petitioner.
    The petition notes that the proposed Red Hills viticultural area's 
northern boundary is defined by a narrow border of red volcanic soils 
that lack rock content at Mt. Konocti's 2,600-foot elevation line, 
Clear Lake's shore line, and a marshy territory with different soils.
    The proposed area's eastern boundary follows the edge of the 
volcanic field. The petitioner contends the red soils outside the field 
lack rock content.
    As petitioned, the proposed viticultural area's southern boundary 
is defined by the mountainous terrain, which precludes commercial 
viticulture, even though the volcanic soils extend south past the 
proposed boundary. Salminas Meadow and Seigler Valley, both within the 
Clear Lake viticultural area, have been excluded from the proposed Red 
Hills viticultural area based on their different soils and terrain.
    Boggs Lake, some steep ridges, Shaul Valley, and the base of Mt. 
Konocti mark the proposed area's western boundary. The petitioner 
states that the ridges outside of the proposed area's southwestern 
boundary represent the approximate western extent of the prehistoric 
volcanic flows and mark a change to steeper terrain. The land inside 
the boundary is geologically younger and has more porous volcanic rocks 
and soils that contrast with the bedrock of Franciscan formation 
outside the proposed area. Shaul Valley, a small, bottomland area, has 
different sandy loam soils. According to the petitioner, Mt. Konocti 
has never been considered part of the Red Hills area and acts as a 
dividing point for several distinct areas. Only the low foothills of 
this mountain are within the proposed area.
Climate
    Rainfall in the proposed area is based on its location between the 
Mayacmas Mountains and Clear Lake. The mountainous region to the south 
of the proposed gets about 80 inches of rain a year, while Clear Lake 
to the north averages 22 inches a year. The Red Hills area lies between 
these two places and receives from 25 to 40 inches of rain a year.
    The petitioner contends the proposed Red Hills viticultural area 
has a distinctive microclimate based on the area's relative lack of 
coastal influence, at about fifty miles inland, its hilly terrain, and 
its location between Clear Lake and the Mayacmas Mountains. The unique 
wind patterns in the Red Hills area result from the lake-land effect, 
driven by temperature contrasts between the lake and adjacent land, and 
the mountain-valley effect that pushes air either upward or downward in 
the valleys depending on temperatures. The petitioner notes that a 
perpetual motion wind machine is created by the combination of the 
lake-land and the mountain-valley effects, creating unique wind systems 
that blow through the Red Hills' open terrain. These constant winds 
provide natural frost protection for the grapevines. According to the 
petitioner, local residents confirm that in the early morning hours of 
cold spring days, when temperatures dip below the freezing point, the 
naturally generated winds keep frost from forming on grape shoots while 
other Lake County viticultural areas require frost protection measures.

[[Page 66085]]

Proposed Boundaries

    The proposed Red Hills viticultural area is in Lake County, 
California and is entirely within the approved Clear Lake and North 
Coast viticultural areas. The proposed Red Hills area is an irregular 
rectangle in shape, with Mt. Konocti to the northwest, Clear Lake to 
the north, and the Mayacmas Mountains to the south.
    The USGS maps required for determining the boundary of the proposed 
Red Hills viticultural area are: (1) Clearlake Highlands Quadrangle, 
California--Lake Co., 7.5 Minute Series, edition of 1958, photorevised 
1975; (2) Lower Lake Quadrangle, California--Lake Co., 7.5 Minute 
Series, edition of 1958, photorevised 1975; (3) Whispering Pines 
Quadrangle, California, 7.5 Minute Series, edition of 1958, 
photoinspected 1975; and (4) Kelseyville Quadrangle, California--Lake 
Co., 7.5 Minute Series, edition of 1959, photorevised 1975. A complete 
description of the proposed area's boundaries is found in the proposed 
rule text below.

Public Participation

Comments Sought

    ATF requests comments from all interested persons. Specifically, 
ATF requests comments on the potential for name confusion between the 
proposed Red Hills (plural) viticultural area in Lake County, 
California, and the proposed Red Hill (singular) viticultural area in 
Oregon. To resolve this problem, ATF is considering using the names 
``Red Hills--California'' and ``Red Hill--Oregon'' for these respective 
viticultural areas. In both cases the State name would appear in direct 
conjunction with the viticultural area name. Comments on the proposed 
names and suggestions for other names are encouraged and will be given 
consideration.
    Comments received on or before the closing date will be carefully 
considered. Comments received after that date will be given the same 
consideration if it is practical to do so. However, assurance of 
consideration can only be given to comments received on or before the 
closing date.
    ATF will not recognize any submitted material as confidential and 
comments may be disclosed to the public. Any material that the 
commenter considers confidential or inappropriate for disclosure to the 
public should not be included in the comments. The name of the person 
submitting a comment is not exempt from disclosure.

Submitting Comments

    By U.S. Mail: Written comments may be mailed to ATF at the address 
listed in the ADDRESSES section above.
    By Fax: Comments may be submitted by facsimile transmission to 
(202) 927-8602, provided the comments: (1) Are legible, (2) are 8 \1/
2\'' x 11'' in size, (3) contain a written signature, and (4) are five 
pages or less in length. This limitation is necessary to assure 
reasonable public access to the equipment. Comments sent by fax in 
excess of five pages will not be accepted. Receipt of fax transmittals 
will not be acknowledged. Facsimile transmitted comments will be 
treated as originals.
    By e-mail: Comments may be submitted by e-mail to 
[email protected]. E-mail comments must contain your name, mailing 
address, e-mail address, and reference this notice number. We will not 
acknowledge the receipt of e-mail. We will treat comments submitted by 
e-mail as originals.
    Comments may also be submitted using the comment form provided with 
the online copy of this proposed rule on the ATF Internet Web site at 
http://www.atf.treas.gov.
    Public Hearing: Any person who desires an opportunity to comment 
orally at a public hearing on the proposed regulation should submit his 
or her request, in writing, to the Director within the 60-day comment 
period. The Director, however, reserves the right to determine, in 
light of all circumstances, whether a public hearing will be held.

Reviewing Comments

    Copies of the petition, the proposed regulations, the appropriate 
maps, and any written comments received will be available for public 
inspection during normal business hours at the ATF Reference Library, 
Office of the Liaison and Public Information, Room 6480, 650 
Massachusetts Avenue, NW., Washington, DC 20226; telephone 202-927-
7890. Copies of comments may be requested by writing the ATF librarian 
at the above address.
    For the convenience of the public, ATF will post comments received 
in response to this notice on the ATF Web site. All comments posted on 
our web site will show the name of the commenter, but will have street 
addresses, telephone numbers, and e-mail addresses removed. We may also 
omit voluminous attachments or material that we do not consider 
suitable for posting. In all cases, the full comment will be available 
in the ATF library as noted above. To access online copies of the 
comments on this rulemaking, visit http://www.atf.treas.gov, and select 
``Regulations,'' then ``Notices of proposed rulemaking (alcohol),'' and 
then click on the ``View Comments'' link under this Notice number.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, 44 U.S.C. 
chapter 35, and its implementing regulations, 5 CFR part 1320, do not 
apply to this notice because no requirement to collect information is 
proposed.

Regulatory Flexibility Act

    ATF certifies that this proposed regulation will not have a 
significant impact on a substantial number of small entities. The 
establishment of a viticultural area is neither an endorsement nor 
approval by ATF of the quality of wine produced in the area, but rather 
an identification of an area that is distinct from surrounding areas. 
ATF believes the establishment of viticultural areas merely allows 
wineries to more accurately describe the origin of their wines to 
consumers, and helps consumers identify the wines they purchase. Thus, 
any benefit derived from the use of a viticultural area name is the 
result of the proprietor's own efforts and consumer acceptance of wines 
from that area.
    No new requirements are proposed. Accordingly, a regulatory 
flexibility analysis is not required.

Executive Order 12866

    ATF has determined that this proposed regulation is not a 
significant regulatory action as defined by Executive Order 12866. 
Accordingly, this proposal is not subject to the analysis required by 
this Executive Order.

Drafting Information

    The principal author of this document is N.A. Sutton, Regulations 
Division (San Francisco), Bureau of Alcohol, Tobacco, and Firearms.

List of Subjects in 27 CFR Part 9

    Administrative practices and procedures, Consumer protection, 
Viticultural areas, and Wine.

Authority and Issuance

    Title 27, Code of Federal Regulations, part 9, American 
Viticultural Areas, is proposed to be amended as follows:

[[Page 66086]]

PART 9--AMERICAN VITICULTURAL AREAS

    Paragraph 1. The authority citation for part 9 continues to read as 
follows:

    Authority: 27 U.S.C. 205.

    Par. 2. Subpart C is amended by adding Sec.  9.---- to read as 
follows:

Subpart C--Approved American Viticultural Areas

* * * * *


Sec.  9.----  Red Hills

    (a) Name. The name of the viticultural area described in this 
section is ``Red Hills.''
    (b) Approved Map. The appropriate maps for determining the boundary 
of the Red Hills viticultural area are four 1:24,000 Scale U.S.G.S. 
topography maps. They are titled:
    (1) Clearlake Highlands Quadrangle, CA--Lake Co. 1958, photorevised 
1975;
    (2) Lower Lake Quadrangle, CA--Lake Co. 1958, photorevised 1975;
    (3) Whispering Pines Quadrangle, CA 1958, photoinspected 1975;
    (4) Kelseyville Quadrangle, CA--Lake Co. 1959, photorevised 1975.
    (c) Boundary. The Red Hills viticultural area is located entirely 
within the Clear Lake viticultural area of Lake County, California, on 
the south shore of Clear Lake, between the towns of Lower Lake and 
Kelseyville, CA. The point of beginning is the intersection of the 
Clear Lake shoreline, south of Slater Island, with the common boundary 
line between Sections 3 and 4, T12N, R7W (Clearlake Highlands 
Quadrangle).
    (1) Then proceed straight south along the common boundary line of 
Sections 3 and 4, T12N, R7W to its intersection with the 1,400-foot 
contour line, Section 3, T12N, R7W (Clearlake Highlands Quadrangle);
    (2) Then proceed southeast along the 1,400-foot contour line onto 
the Lower Lake Quadrangle map south of Anderson Flat, reverse direction 
with the contour line, and continue west to its intersection with 
Seigler Canyon Creek, Section 10, T12N, R7W (Clearlake Highlands 
Quadrangle);
    (3) Then proceed west along Seigler Canyon Creek to its confluence 
with Perini Creek, and continue south along Perini Creek to its 
intersection with the 1,800-foot contour line, Section 16, T12N, R7W 
(Clearlake Highlands Quadrangle);
    (4) Then proceed in a generally southern direction and then 
generally west along the 1,800-foot contour line to its intersection 
with Copsey Creek, Section 28, T12N, R7W (Whispering Pines Quadrangle);
    (5) Then proceed west along Copsey Creek to its headwaters in 
Section 29, and continue straight westerly to the headwaters of Bad 
Creek at its intersection with the Section 30 east boundary line, T12N, 
R7W (Whispering Pines Quadrangle);
    (6) Then proceed due west to the intersection of Big Canyon Road, 
Section 30, T12N, R7W (Whispering Pines Quadrangle);
    (7) Then proceed north along Big Canyon Road to its intersection 
with Loch Lomond Road, Section 19, T12N, R7W (Clearlake Highlands 
Quadrangle);
    (8) Then proceed southwest along Loch Lomond Road to its first 
intersection with the 2,640-foot contour line, Section 25, T12N, R8W 
(Whispering Pines Quadrangle);
    (9) Then proceed northwest in a straight line to Seigler Mountain, 
elevation 3,692 feet, and continue northwest along the same line of 
direction to its intersection with Salmina Road, Section 23, T12N, R8W 
(Clearlake Highlands Quadrangle);
    (10) Then proceed north along Salmina Road to its intersection with 
Highway 175, reverse direction and continue south along Highway 175 to 
its intersection with the Section 15 south boundary line, T12N, R8W, 
(Clearlake Highlands Quadrangle);
    (11) Then proceed straight northwest to Mt. Hannah, elevation 3,978 
feet, Section 16, T12N, R8W, (Clearlake Highlands Quadrangle);
    (12) Then proceed straight southwest to the intersection of the 
3,000-foot contour line with the Section 17 east boundary line, and 
continue along the same line of direction to the 2,800-foot contour 
line east of Boggs Lake, Section 17, T12N, R8W (Kelseyville 
Quadrangle);
    (13) Then proceed north and west along the 2,800-foot contour line 
around Boggs Lake to its intersection with Harrington Flat Road, 
Section 18, T12N, R8W (Kelseyville Quadrangle);
    (14) Then proceed north along Harrington Flat Road to its 
intersection with Bottle Rock Road, and continue north along Bottle 
Rock Road to its intersection with an unnamed unimproved dirt road, 
just inside Section 1, T12N, R9W (Kelseyville Quadrangle);
    (15) Then proceed northwest along the unimproved dirt road to 
Boundary Marker 2080, Section 1, T12N, R9W (Kelseyville Quadrangle);
    (16) Then proceed straight northeast to Mt. Olive, elevation 2,485 
feet, and continue along the same line of direction an unnamed peak, 
elevation 2,295 feet, Section 30, T13N, R8W (Kelseyville Quadrangle);
    (17) Then proceed straight northeast to the intersection of the 
2,600-foot contour line with the Section 19 east boundary line, T13N, 
R8W (Kelseyville Quadrangle);
    (18) Then proceed northwest along the 2,600-foot contour line to 
its intersection with an unnamed stream and Section 20 west boundary 
line, T13N, R8W (Kelseyville Quadrangle);
    (19) Then proceed straight northeast to the intersection of Konocti 
Bay Road and Soda Bay Road, and continue due east to the shore of Clear 
lake, Section 22, T13N, R8W (Clearlake Highlands Quadrangle);
    (20) Then proceed southeast along the shoreline of Clear Lake, 
returning to the point of beginning at its intersection with the common 
boundary line between Sections 3 and 4, T12N, R7W (Clearlake Highlands 
Quadrangle).

    Signed: September 4, 2002.
Bradley A. Buckles,
Director.
[FR Doc. 02-27443 Filed 10-29-02; 8:45 am]
BILLING CODE 4810-31-P