[Federal Register Volume 67, Number 236 (Monday, December 9, 2002)]
[Rules and Regulations]
[Pages 72834-72840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-31004]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 9

[T.D. No. ATF-485; Re: Notice No. 936]
RIN 1512-AC82


Yadkin Valley Viticultural Area (2001R-88P)

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

ACTION: Treasury decision; final rule.

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SUMMARY: This Treasury decision establishes the Yadkin Valley 
viticultural area in North Carolina. The viticultural area consists of 
approximately 1,416,600 acres encompassing all of Surry, Wilkes, and 
Yadkin counties and portions of Stokes, Forsyth, Davidson, and Davie 
counties.

EFFECTIVE DATE: Effective on February 7, 2003.

FOR FURTHER INFORMATION CONTACT: Tim DeVanney, Regulations Division, 
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, NW., 
Washington, DC 20226; telephone 202-927-8210.

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas

What Is ATF's Authority To Establish a Viticultural Area?

    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)

[[Page 72835]]

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.

What Is the Definition of an American Viticultural Area?

    Title 27 CFR 4.25a(e)(1) defines a viticultural area as a delimited 
grape-growing region distinguishable by geographical features. 
Viticultural features such as soil, climate, elevation, topography, 
etc., distinguish it from surrounding areas.

What Is Required To Establish a Viticultural Area?

    Any interested person may petition ATF to establish a grape-growing 
region as a viticultural area. The petition must include:
    [sbull] Evidence that the name of the proposed viticultural area is 
locally and/or nationally known as referring to the area specified in 
the petition.
    [sbull] Historical or current evidence that the boundaries of the 
viticultural area are as specified in the petition.
    [sbull] Evidence relating to the geographical features (climate, 
soil, elevation, physical features, etc.) that distinguish the proposed 
area from surrounding areas.
    [sbull] A description of the specific boundaries of the 
viticultural area, based on features that can be found on United States 
Geological Survey (USGS) maps of the largest applicable scale.
    [sbull] A copy of the appropriate USGS map(s) with the boundaries 
prominently marked.

Rulemaking Proceeding

Yadkin Valley Petition

    Ms. Patricia McRitchie petitioned ATF, on behalf of Shelton 
Vineyards, Inc., Dobson, North Carolina, to establish a viticultural 
area within the State of North Carolina, to be known as ``Yadkin 
Valley.'' The petitioned viticultural area encompassed all of Surry, 
Wilkes, and Yadkin counties and portions of Stokes, Forsyth, and Davie 
counties. It was located entirely within the Yadkin River watershed.
    The area, as originally proposed, covered approximately 1,924 
square miles or 1,231,000 acres. Within these boundaries, there are 
over 30 growers who devote approximately 350 acres to the cultivation 
of wine grapes. Currently, there are three bonded wineries in the 
petitioned area, with at least two other wineries under construction.

Comments to Notice of Proposed Rulemaking

    ATF published a Notice of Proposed Rulemaking, Notice No. 936, in 
the Federal Register on February 7, 2002 (67 FR 5756). The comment 
period for the proposed rule closed on April 8, 2002. During this 60-
day time period, we requested comments concerning the proposed Yadkin 
Valley viticultural area from all interested persons. ATF received four 
written comments, all in favor of the Yadkin Valley viticultural area's 
establishment.
    Alliston J. Stubbs, IV, Cedar Ridge Vineyards, Reeds, North 
Carolina, sought to expand the petitioned area's boundaries. ATF 
accepted Mr. Stubbs' expansion proposal based on the evidence he 
provided to support his proposed expansion.
    Mr. David Bradley, president of the Greater Mount Airy Chamber of 
Commerce, submitted a comment fully supporting the establishment of the 
Yadkin Valley viticultural area, but he did not request that the area 
be expanded.
    Ken Furr, Albemarle, North Carolina, supported a Yadkin Valley 
viticultural area with larger boundaries. Mr. Furr stated that, as 
petitioned, the area's boundaries were ``much too exclusive.'' He 
argued that the entire Yadkin River basin should be included in one 
viticultural area. His primary concern was that the few existing 
vineyards and ``the many that will be created over the next 20 years 
will be disenfranchised and deprived of a marketing mechanism that they 
deserve.''
    State Representative Pryor Gibson of the 33rd District also 
submitted comments in support of expanding the proposed Yadkin Valley 
area. Representative Gibson supported the inclusion of ``the entirety 
of the Yadkin River Basin to include Stanly, Montgomery, and any other 
counties, which border these counties to the east and west which 
geographically and climatically would include areas conducive to the 
grape production.''
    ATF will consider an expansion of a viticultural area when the 
appropriate supporting evidence is furnished. Mr. Furr and 
Representative Gibson did not provide the detailed evidence required by 
the regulations to support an expansion of the boundaries proposed in 
Notice No. 936 and, therefore, ATF is unable to expand the Yadkin 
Valley viticultural area based on these two requests. The requirements 
for expanding an approved area are the same as those for establishing a 
new area. A petitioner must include evidence that the additional land 
is also known by the viticultural area's name, in this case Yadkin 
Valley, and has growing conditions similar to the ones in the approved 
area. Any interested person may petition ATF to expand the boundaries 
of an existing American viticultural area. See the section titled What 
is Required to Establish a Viticultural Area? listed earlier in this 
final rule.
    Comments from Mr. Allston J. Stubbs, IV, submitted on behalf of 
Cedar Ridge Vineyards, Reeds, North Carolina, proposed an expansion of 
the proposed area's southern boundary. His proposed expansion added a 
portion of Davidson County and an additional area in Davie County. Mr. 
Stubbs provided data and analyses, including climate, geographical, and 
name evidence, supporting his proposal. ATF agrees that this proposed 
expansion's characteristics are consistent with the original petition's 
area and, therefore, meet the regulatory criteria for an American 
viticultural area. The revised size of the Yadkin Valley viticultural 
area is approximately 1,416,600 acres. The final rule has been modified 
accordingly.

Supporting Evidence Used in the NPRM

What Name Evidence Has Been Provided?

    The viticultural area has been known as the Yadkin Valley since 
pre-colonial times. The first known written use of the name Yadkin 
(also spelled as Yattken or Yattkin) was in 1674 in the writing of an 
early trader, Abraham Wood, whose English scouts passed through the 
area in 1673. It was used in reference to the Native American tribe 
found living along the river known as the Yadkin. Subsequently, the 
name Yadkin was applied to many natural features and man-made 
structures in the area. In fact, the only references to Yadkin as a 
place name are to places located in North Carolina: the Yadkin Valley, 
the Yadkin River, Yadkin County, and the towns of Yadkin Falls, Yadkin 
College, and Yadkinville. It is also used to name businesses, schools, 
and organizations located in the State's northwestern piedmont region.
    There is rich historical and anthropological evidence of settlement 
and cultivation in the Yadkin Valley. Native American settlements date 
back to approximately 500 B.C. The first non-Native settlers, the 
Moravians, arrived in the Yadkin Valley in the 1740s. They

[[Page 72836]]

originally scouted land in the Blue Ridge Mountains near Boone, but did 
not find a satisfactory site for settlement. The Moravians followed the 
Yadkin River east, finally reaching the three forks of Muddy Creek, a 
tributary of the Yadkin River. It was here that the Moravians made the 
first settlements in what are now Forsyth and Stokes counties. The 
settlements were Bethabara, established in 1753, and Bethania, 
established in 1759. These early settlers were meticulous recordkeepers 
and references to the Yadkin Valley can be found in their colonial 
writings as well as in later sources. References to the Yadkin Valley 
can also be found in histories of the region during the American 
Revolution and the Civil War periods.
    An influx of settlers who farmed the Valley's rich soil 
characterized the period immediately after the Civil War. In the latter 
part of the 19th century, cotton and tobacco were the Valley's main 
crops. By the early 20th century, the change to tobacco as the Valley's 
main cash crop was complete, but by the century's close, however, the 
predominance of tobacco growing in the northwest piedmont of North 
Carolina had waned. In its place is an increased interest in grape 
growing, which is rooted in pre-colonial North Carolina's history.
    An article titled ``N.C. Winery History'' (North Carolina Grape 
Council website, 2/24/01, http://www.ncagr/com/markets/commodit/horticul/ grape/winehist.htm), states that the first cultivated wine 
grape in the United States was grown in North Carolina. The first known 
recorded account of the Scuppernong grape in North Carolina is found in 
the logbook of explorer Giovanni de Verranzano. He wrote in 1524, 
``Many vines growing naturally there [in North Carolina] that would no 
doubt yield excellent wines.''
    The wine industry in North Carolina thrived through the 19th and 
20th centuries until prohibition. At that time, the industry, which was 
centered in the eastern part of the State, was based on muscadine wine.
    One of the first modern major plantings of vinifera grapes in North 
Carolina occurred in 1972, when Jack Kroustalis established Westbend 
Vineyards, located in the Yadkin Valley. According to ``Carolina Wine 
Country,'' ``[t]he vines flourished in the rich soil of the Yadkin 
River Valley.'' In 1988, Kroustalis built the first bonded winery in 
the Yadkin Valley. Other growers in Yadkin Valley took note of Westbend 
Vineyard's success with vinifera grapes and followed suit. By the end 
of 2000, over 350 acres of grapes were planted in the Yadkin Valley. 
The North Carolina Department of Agriculture has recognized this area 
as a ``unique and valuable winegrowing region.''
    In 1999, Shelton Vineyards began planting 200 acres of vinifera 
grapes on land considered perfectly suited to vinifera grape growing. 
The following year, Shelton opened a state-of-the-art 30,000 case 
winery. There are currently two additional wineries under construction 
in the viticultural area, and the Yadkin Valley Wine Grower's 
Cooperative was recently incorporated.
    In 1999, Surry Community College began offering continuing 
education viticulture courses. Spurred on by the tremendous interest in 
grape growing, the College initiated a two-year viticulture program, 
which began in the fall of 2000. The program will educate future grape 
growers to take advantage of the favorable growing environment provided 
by the Yadkin Valley. In December of 2000, the Golden Leaf Foundation 
awarded the College over $130,000 to support the establishment of a 
demonstration vineyard and winery for use by students in the program.
    The reference materials used to prepare this petition consistently 
included all of Wilkes, Surry, and Yadkin counties in the Yadkin 
Valley, as well as portions of Stokes and Forsyth counties. Davie and 
Iredell counties were also commonly included.

What Evidence Relating to Geographical Features Has Been Provided?

Soil
    The Yadkin Valley viticultural area petition included a report by 
Roger J. Leab, a soil scientist with the Natural Resource Conservation 
Service, United States Department of Agriculture. Mr. Leab was the soil 
survey project leader for Surry and Stokes counties, and is currently 
the project leader for Alamance County. He compiled his report from the 
published soil surveys of Wilkes, Stokes, Yadkin, Davie, and Forsyth 
counties and the data collected for the soon-to-be-published soil 
survey of Surry County.
    The soils of the Yadkin Valley viticultural area were formed mainly 
from residuum (saprolite) weathered from felsic metamorphic rocks 
(gneisses, schists, and phyllites) of the Blue Ridge Geologic Belt and 
the Smith River Allochothon and from metamorphosed granitic rocks of 
the inner Piedmont Belt. The extreme southeastern part of the area was 
formed from saprolite weathered from igneous intrusive rocks (granites, 
gabbros, and diorites) and some gneisses and schists, all of the 
Charlotte Belt.
    Most of the viticultural area is in the mesic soil temperature 
regime, which, at a depth of 20 inches, has an average annual soil 
temperature of 47 to 59 degrees Fahrenheit. The extreme southeastern 
part of the area is in the thermic temperature regime, which is in the 
59 to 72 degree Fahrenheit range.
    The dominant soil series formed from residuum in the mesic area are 
Fairview, Clifford, Woolwine, Westfield, Rhodhiss, and Toast soils. The 
dominant soil series formed from residuum in the thermic area are 
Pacolet, Cecil, Madison, Appling, and Wedowee soils. There are also 
some large areas of soils, which formed in old fluvial sediments of 
high stream terraces. These are the Braddock series in the mesic area 
and the Masada, Hiwassee, and Wickham series in the thermic area. These 
soils all have clayey or fine-loamy subsoils with good internal 
structure and moderate permeability. They are mostly very deep and well 
drained. These soils are acidic and have low natural fertility, 
requiring a well-structured fertility plan.
    The soil series that formed in residuum from the mafic intrusive 
rocks (gabbros and diorites), which occur scattered along the extreme 
southeastern part of the viticultural area, have slightly better 
natural fertility. However, they have subsoils with mixed mineralogy 
clays. The Gaston and Mecklenburg series have moderate or moderately 
slow permeability and are suitable to moderately suitable for 
viticulture. However, the Enon and Iredell series have high shrink-
swell clayey subsoils, which perch water during wet periods and result 
in less than desirable internal drainage.
    The less than desirable, high shrink-swell clayey soils are more 
abundant to the south and east of the viticultural area. The Blue Ridge 
Mountains are to the west and north of the area. The petitioner states 
that these limitations define the Yadkin Valley as a unique 
viticultural area.
Climate
    The petition's data for precipitation, temperature and heat 
summation were provided by the State Climate Office of North Carolina.
    Hardiness Zone. The Yadkin Valley viticultural area is in Zone 7a 
of the USDA Hardiness Zone Map. The surrounding regions are in Zones 6b 
and 7b. This zone is well suited for growing grapes while the adjacent 
zones are not as favorable for growing vinifera grapes. For example, 
the Columbia Valley viticultural area in Washington State is also 
located in Zone 7a.

[[Page 72837]]

    The Yadkin Valley is located in the warm temperate latitude between 
36[deg]00' and 36[deg]30' N. This latitude is well suited to growing 
vinifera grapes while latitudes below 35[deg]00' are not suited to 
vinifera grape growing, according to Gordon S. Howell and Timothy K. 
Mansfield's article, ``Microclimate and the Grapevine: Site Selection 
for Vineyards (A Review),'' in ``Vinifera Wine Growers Journal,'' Fall 
1977, page 373.
    Precipitation. The Yadkin Valley receives an average rainfall of 
46.42 inches. The regions to the west and northwest receive, on 
average, more than 68 inches of rain per year. The regions to the south 
and east receive, on average, 43.37 inches of rain per year. In 
general, the Yadkin Valley receives less precipitation than the land to 
the west and northwest and slightly more than the regions to the south 
and the east.
    Temperature. The Yadkin Valley has an average maximum annual 
temperature of 69.85 degrees Fahrenheit and an average minimum annual 
temperature of 44.90 degrees Fahrenheit. The regions to the west and 
northwest have an average maximum temperature of 58.6 degrees 
Fahrenheit and an average minimum annual temperature of 40.00 degrees 
Fahrenheit. The region to the east has an average maximum annual 
temperature of 68.4 degrees Fahrenheit and an average minimum annual 
temperature of 46.0 degrees Fahrenheit. The region to the south has an 
average maximum annual temperature of 71.5 degrees Fahrenheit and an 
average minimum annual temperature of 48.1 degrees Fahrenheit.
    In summary, the Yadkin Valley is much warmer than the regions to 
the west and northwest and has slightly higher maximum and minimum 
temperatures than the region to the east. The Yadkin Valley has lower 
maximum and minimum temperatures than the land to the south. 
Temperature differences become more pronounced the further south one 
travels. In addition, as one proceeds east past the Greensboro area, 
the temperatures, both maximum and minimum, become warmer than in the 
viticultural area.
    Heat Summation. Using Amerine and Winkler heat summation 
definitions, the Yadkin Valley viticultural area is in climatic region 
IV, with 3743 degree-days. The land to the east is in region IV. The 
land to the west-northwest is in region I, while lands to the south are 
in region V (Greensboro is close to region V).
    Frost-Free Season/Growing Season. The petition also offered data 
regarding the Yadkin Valley's growing season from the North Carolina 
State University horticulture information leaflet ``Average Growing 
Season for Selected North Carolina Locations'' (12/96, revised 12/98) 
by Katharine Perry. The viticultural area enjoys a frost-free season 
lasting from April 22 to October 15. This is a growing season of 176 
days and is two to four weeks longer than the region to the west. The 
frost-free/growing season in the viticultural area is similar to the 
lands immediately to the south. In contrast, the regions to the east 
and southeast have a frost-free and growing season four to six weeks 
longer than the viticultural area.
    Climate Summary. The Yadkin Valley viticultural area has more 
moderate temperatures and precipitation than the surrounding areas. The 
growing season and frost-dates fall within the optimum range for 
cultivation of premium vinifera grapes. These data support the 
proposition that the Yadkin Valley possesses climatic conditions 
distinguishing it from the surrounding areas.
Geology
    The petition also included a report on the Yadkin Valley's geology 
prepared by Matthew Mayberry, president of the River Ridge Land 
Company, Inc. The highly complex rocks of the present day Blue Ridge 
and Piedmont provinces represent a core area that has been present and 
re-crystallized and re-metamorphosed through several mountain building 
cycles to produce the complex schists, gneisses and igneous rocks of 
today's Yadkin Valley. Relics of a couple of the hot spots that re-
crystallized rock are the granites of Mount Airy and Stone Mountain, 
North Carolina. Mr. Mayberry's report noted that the weathering of 
these Piedmont rocks has produced soils with chemical and physical 
properties that are very amenable to the viticulture industry. The 
petition stated that the soils and climate of the Yadkin Valley 
viticultural area cover a spectrum equal to most vineyards of Europe 
and California.
    After the Yadkin River's origin and descent from mountain springs 
in the Blowing Rock, North Carolina region, it encounters a major 
structural feature known as the Brevard Shear Zone (fault system), 
which also defines the Blue Ridge Escarpment in the area, paralleled by 
the river. At the base of the Blue Ridge Escarpment, the Yadkin River 
turns and flows northeastward under the structural control of this 
shear zone for a distance of approximately 50 miles before bending to 
the east between the northeast end of the Brushy Mountains and Pilot 
Mountain. At the Surry, Yadkin, and Forsyth County corner, the Yadkin 
turns southward and later becomes the Pee Dee River at High Rock Lake, 
about six miles northwest of Salisbury, North Carolina.

What Boundary Evidence Has Been Provided?

    Mr. Mayberry also provided the petition's boundary description. The 
area of the Yadkin Valley viticultural area proposed in Notice No. 936 
covers approximately 1,924 square miles or 1,231,000 acres in Wilkes, 
Surry, Yadkin and parts of Stokes, Forsyth, and Davie counties. The 
subject area is identified on two 1:250,000 scale USGS maps:
    (1) Winston-Salem, N.C.; VA., Tenn. 1953 Limited Revision 1962; and
    (2) Charlotte, North Carolina; South Carolina 1953 Revised 1974.
    As noted above, ATF has expanded the Yadkin Valley viticultural 
area at the request of Mr. Allston J. Stubbs. The expansion adds an 
additional portion of the Yadkin River basin southeast of Winston-Salem 
in Davidson and Davie counties. As approved, the area covers about 
1,416,600 acres. The finalized, expanded Yadkin Valley viticultural 
area boundary is determined on a 1:250,000 scale, based on the USGS 
maps. Primarily, county lines define the viticultural area's 
boundaries. In cases where directions change, where county lines or 
rivers are too irregular to measure, a ``trend direction bearing'' with 
straight-line miles is reported. The beginning point is defined as a 
point 3.6 miles west of the northeast corner of Surry County on the 
Surry County and North Carolina/Virginia state line at the crest of 
Slate Mountain.
    The revised Yadkin Valley viticultural area boundaries are 
discussed in detail in Sec.  9.174(c) of the final rule shown below in 
this Treasury Decision. In addition to the boundaries expanded by Mr. 
Stubbs proposal, ATF expanded a small portion of the northeastern 
boundary. This expansion was necessary to meet the requirements of 27 
CFR 9.3(b)(4), i.e., so that the boundaries were based on features that 
could be found on the associated USGS maps.

Supporting Evidence Provided for the Expansion of the Petitioned Area

    As stated earlier in this Treasury Decision, a commenter, Mr. 
Allston J. Stubbs, IV, requested the expansion of the southeastern 
boundary of the proposed Yadkin Valley viticultural area. Mr. Stubbs 
provided evidence to ATF to amend the boundaries as they were 
originally proposed, in Notice of Proposed Rulemaking, Notice No. 936. 
``The addition'' is used to refer to the

[[Page 72838]]

area inside the expanded boundary and ``the petitioned viticultural 
area'' is used to refer to the area originally proposed in Notice No. 
936. A summary of this evidence, and the associated references, is 
provided below.

Climate

    The State Climate Office of North Carolina and the Southeast 
Regional Climate Center (See, respectively, http://www.nc-climate.ncsu.edu and http://water.dnr.state.sc.us/ climate/sercc/) 
provided data for precipitation, temperature, and heat summation. The 
addition is defined by climate data from weather stations at its four 
geographic corners of Mocksville, Winston-Salem, Lexington/Lexington 
Agricultural Research Station, and the Rowan Agricultural Research 
Station.
    Hardiness Zone. The petitioned Yadkin Valley viticultural area is 
in Zone 7a of the USDA Hardiness Zone Map. The addition is also in Zone 
7a. Interstate 85 through Davidson County--the southern border of the 
addition--approximates the demarcation between Zone 7a and 7b.
    Precipitation. The petitioned viticultural area has areas of 
average annual precipitation ranging from 44 inches per year in the 
east to 56 inches per year in the west and an average annual 
precipitation of 46.42 inches per year. The addition has an average 
annual precipitation of 45.05 inches per year. The amount of 
precipitation in the addition is similar to areas included in the 
petitioned viticultural area. The addition has more precipitation than 
areas to the southeast (outside the boundary) where the average annual 
precipitation ranges from 42 to 44 inches per year.
    Temperature. The petitioned viticultural area has average maximum 
annual temperatures of 69.85 degrees Fahrenheit and average minimum 
annual temperatures of 44.90 degrees Fahrenheit. The addition has an 
average maximum annual temperature of 70.93 degrees Fahrenheit and an 
average minimum annual temperature of 46.80 degrees Fahrenheit. The 
temperatures of the addition are similar to those within the petitioned 
area and are cooler than areas outside of the petitioned area's 
southern and southeastern borders.
    Heat Summation. The petitioned viticultural area is located in 
Amerine and Winkler Climatic Region IV, with 3743 degree-days. The 
addition is also located in Climatic Region IV, with 3904 degree-days.
    Frost-Free Season/Growing Season. The petitioned viticultural area 
has a range of growing seasons: 176 days (April 22 to October 15) in 
Mt. Airy, N.C. (northern Surry County), 185 days (April 19 to October 
21) in Yadkinville, N.C. (central Yadkin County), and 198 days (April 
14 to October 24) in Mocksville, N.C. (central Davie County).
    Using data from the North Carolina Climate Office (50 year average 
dates of last spring freeze and first fall freeze), the addition has an 
estimated growing season of 191 days (April 11 to October 20). This is 
similar to the growing seasons of the petitioned viticultural area.
    All referenced growing seasons have a standard deviation of 11 to 
13 days. This variability limits the distinctions among the growing 
seasons across the Yadkin Valley area. Hence, the addition has a 
similar growing season duration compared with the petitioned 
viticultural area. The growing season of the petitioned area and the 
addition is shorter than the areas along its southern and southeastern 
borders.
    Climate Summary. The addition, like the petitioned viticultural 
area, has a climate defined by temperature and precipitation that is 
different from the surrounding areas. The growing season and frost-
dates of the addition, like the originally petitioned region, fall 
within the optimum range for cultivation of premium vinifera grapes.

Geography

    Location. The petitioned viticultural area lies between the north 
latitudes of 35 degrees 52 minutes and 36 degrees 35 minutes and 
between the east longitudes of 80 degrees 14 minutes and 81 degrees 32 
minutes. The addition extends the southern boundary to a latitude of 35 
degrees 41 minutes North. The southern boundary of the addition remains 
above the 35 degree parallel recommended for vinifera grape growing by 
Howell and Mansfield's article, ``Microclimate and the Grapevine: Site 
Selection for Vineyards (A Review),'' in the ``Vinifera Wine Growers 
Journal,'' Fall 1977, 373.
    Elevation. The elevation for the petitioned viticultural area 
ranges from 694 feet (NW Davie County) to 3800 feet (NW Wilkes County). 
The addition's elevation ranges from 696 feet (NW Davie County) to 921 
feet (SW Forsyth County). The addition does not increase the range of 
elevation found in the petitioned viticultural area.

Soil

    Mr. Stubbs provided soil information that was compiled from soil 
survey data of Wilkes, Surry, Stokes, Yadkin, Davie, Forsyth, and 
Davidson counties. A general distribution of soil types across the 
petitioned viticultural area, and the addition can be viewed on the 
General Soil Map of NC, Overlay 2, May 1978, Soil Conservation 
Service, USGS, 1:250,000. Additional information is from the respective 
county soil surveys and the Soil Survey Division, Natural Resources 
Conservation Service, United States Department of Agriculture, Official 
Soil Series Descriptions (http://www.statlab.iastate.edu/soils/osd/).
    The soil types of the petitioned viticultural area comprise mesic 
and thermic residuum (saprolite). The mesic soils include the Fairview, 
Clifford, Woolwine, Westfield, Rhodhiss, and Toast series. The thermic 
soils include the Pacolet, Cecil, Madison, Appling, Louisburg, and 
Wedowee series.
    The soil types of the addition (southwestern Forsyth, western 
Davidson, and eastern Davie counties) are thermic residuum, weathered 
primarily from felsic rock. Characteristic of the petitioned 
viticultural area, these thermic soils include the Pacolet, Cecil, 
Madison, Appling, Louisburg, and Wedowee series. These soils are 
distinguished by the properties of a low shrink-to-swell ratio, good 
drainage, and moderate permeability, which are good for grape growing.
    The soil types of areas to the west, east, and south of the 
addition are composed of soil series weathered from mafic and felsic 
sources. These soils include Iredell, Mecklenburg, Enon, Wilkes, 
Sedgefield, Tatum, Goldston, and Badin series. As these soils are 
characterized by the properties of a low to high shrink-to-swell ratio, 
fair to good drainage, and slow to moderate permeability, they are less 
desirable for grape growing. These soils are neither characteristic of 
the petitioned area nor of the addition.

Geology

    The geology of the petitioned viticultural area has been defined by 
multiple orogenies or mountain building cycles. The current geology 
reflects the convergence of several metamorphic and igneous formations 
including the Blue Ridge Belt, the Smith River Allochothon, the 
Sauratown Mountains Anticlinorium, the Milton Belt, the Charlotte Belt, 
and the Inner Piedmont Belt. The addition lies on the Charlotte Belt at 
the Churchland Pluton. The Churchland Pluton is composed primarily of 
Porphyritic granite with occasional Alluvium superstrata. The erosion 
of Porphyritic granite results in soils like Appling, Cecil, Pacolet, 
and Wedowee found throughout the Yadkin Valley region. These soil types 
have desirable characteristics for grape growing.
    The area to the east of U.S. 52 and Interstate 85, along the 
eastern and

[[Page 72839]]

southern borders of the addition, rests on the Carolina Slate Belt. The 
Carolina Slate Belt comprises dioritic rock types which when weathered 
result in soils like Enon, Iredell, Mecklenburg, Sedgefield, and 
Wilkes. These soil types have less desirable characteristics for grape 
growing and are generally outside the petitioned area and the requested 
addition.

Hydrography

    The flow of the Yadkin River is measured at several points 
including Yadkin College, Davidson County (included in the addition). 
The Yadkin River proper ends at its crossing of Interstate 85, the 
southern border of the addition. South of Interstate 85 and outside of 
the addition, the river becomes a series of three lakes: High Rock, 
Badin, and Tillery. Beyond Lake Tillery, the river is referred to as 
the Pee Dee and continues from North Carolina into South Carolina and 
toward the Atlantic Ocean.

Regulatory Analyses and Notices

Is This a Significant Regulatory Action as Defined in Executive Order 
12866?

    This regulation is not a significant regulatory action as defined 
in Executive Order 12866. Accordingly, this final rule is not subject 
to the analysis required by this Executive Order.

How Does the Regulatory Flexibility Act Apply to This Final Rule?

    This regulation will not have significant economic 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. Rather, it is an identification 
of an area that is distinct from surrounding areas. We believe that the 
establishment of viticultural areas allows wineries to more accurately 
describe the origin of their wines to consumers, and helps consumers 
identify various wines. 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.

Does the Paperwork Reduction Act Apply to the Final Rule?

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(j)) and its 
implementing regulations, 5 CFR part 1320, do not apply to this final 
rule because no requirement to collect information is imposed.

Drafting Information

    The principal author of this document is Tim DeVanney, Regulations 
Division, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 9

    Wine.

Authority and Issuance

    Title 27, Code of Federal Regulations, Part 9, American 
Viticultural Areas, is amended as follows:

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 of part 9 is amended by adding Sec.  9.174 to 
read as follows:

Subpart C--Approved American Viticultural Areas

* * * * *


Sec.  9.174  Yadkin Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Yadkin Valley''.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the Yadkin Valley viticultural area are two United States 
Geological Survey (USGS) topographic maps, scale 1:250,000:
    (1) Winston-Salem, N.C.; VA; Tenn. (1953, Limited Revision 1962), 
and,
    (2) Charlotte, North Carolina; South Carolina. (1953, Revised 
1974).
    (c) Boundaries. The Yadkin Valley viticultural area is located in 
the State of North Carolina within Wilkes, Surry, Yadkin and portions 
of Stokes, Forsyth, Davidson, and Davie Counties. The boundaries are as 
follows:
    (1) On the Winston-Salem, N.C.; VA; Tenn. map, the beginning point 
is 3.6 miles west of the northeast corner of Surry County on the Surry 
County and North Carolina/Virginia state line at the crest of Slate 
Mountain. From the beginning point, proceed southeast in a straight 
line approximately 6.5 miles to the intersection of the Surry/Stokes 
County line and State Route 89;
    (2) Then bear southeast in a straight line for approximately 9 
miles to the line's intersection with State Route 66 in the village of 
Gap (between Sauratown and Hanging Rock Mountains);
    (3) Then bear south, following State Route 66 for approximately 9 
miles to intersection of State Route 66 and U.S. Route 52;
    (4) Then, for approximately 9.5 miles, follow U.S. Route 52 south 
through Rural Hall and Stanelyville, to the intersection of the 
Southern Railway track and U.S. Route 52;
    (5) Then bear southerly for approximately 2 miles, following the 
Southern Railway track to where it intersects with U.S. Route 52 in 
Winston-Salem;
    (6) Then follow U.S. Route 52 south for approximately 19.5 miles, 
crossing on to the Charlotte, North Carolina; South Carolina map, to 
its intersection with Interstate 85 at Lexington;
    (7) Then, follow Interstate 85 southwest for approximately 11 miles 
to the Yadkin River and bear northwest approximately 4.5 miles along 
the Yadkin River to the mouth of the South Yadkin River;
    (8) Follow the South Yadkin River upstream in a generally northwest 
direction approximately 3.5 miles to its intersection with U.S. Route 
601;
    (9) Then continue in a northerly direction, following U.S. Route 
601 through the town of Mocksville, onto the Winston-Salem, N.C.; VA; 
Tenn. map approximately 20 miles to the Davie/Yadkin County line;
    (10) Then, following a series of county lines, continue west along 
the Yadkin/Davie County line to the Yadkin/Davie/Iredell County line 
intersection, then follow the Yadkin/Iredell County line to the Yadkin/
Iredell/Wilkes County line intersection, then follow the Iredell/Wilkes 
County line to the Iredell/Wilkes/Alexander County line intersection, 
then follow the Wilkes/Alexander County line to the Wilkes/Alexander/
Caldwell County line intersection;
    (11) Then bear northwesterly along the Wilkes/Caldwell County line, 
to the Wilkes/Caldwell/Watauga County intersection;
    (12) Then bear northerly along the Wilkes/Watauga County line to 
the intersection of the Wilkes/Watauga/Ashe County lines;
    (13) Then bear generally northeasterly along the Wilkes/Ashe County 
line, to the Wilkes/Ashe/Alleghany County line intersection;
    (14) Then bear generally easterly along the Wilkes/Alleghany County 
line to the Wilkes/Alleghany/Surry County line intersection;
    (15) Then bear northerly along Alleghany/Surry County line to the 
intersection of the Alleghany/Surry County line and the North Carolina/
Virginia border;
    (16) Then bear east along the North Carolina/Virginia State line 
approximately 22.5 miles, returning to

[[Page 72840]]

the point of beginning 3.6 miles west of the northeast corner of Surry 
County.

    Dated: October 9, 2002.
Bradley A. Buckles,
Director.
Timothy E. Skud,
Deputy Assistant Secretary, (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 02-31004 Filed 12-6-02; 8:45 am]
BILLING CODE 4810-31-P