[Federal Register Volume 68, Number 15 (Thursday, January 23, 2003)]
[Proposed Rules]
[Pages 3199-3202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1527]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 9

[Notice No. 967]
RIN 1512-AC85


Proposed Alexandria Lakes Viticultural Area (2002R-152P)

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

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: ATF has received a petition to establish a viticultural area 
in Douglas County, Minnesota, to be named ``Alexandria Lakes.'' We 
invite comments on this petition.

DATES: We must receive written comments by March 24, 2003.

ADDRESSES: You may send comments to any of the following addresses--
    [sbull] Chief, Regulations Division, Bureau of Alcohol, Tobacco and 
Firearms, P.O. Box 50221, Washington, DC 20091-0221 (Attn: Notice No. 
967);
    [sbull] 202-927-8525 (facsimile);
    [sbull] [email protected] (e-mail);
    [sbull] http://www.atf.treas.gov (online). A comment form is 
available. At this site, select ``Regulations,'' then ``Notices of 
proposed rulemaking (Alcohol).'' Finally, select ``Send comments via e-
mail'' under this notice number.
    See the Public Participation section of this notice for specific 
requirements.

FOR FURTHER INFORMATION CONTACT: Lisa M. Gesser, Regulations Division, 
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, NW., 
Washington, DC 20226 (202-927-9347).

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

ATF's Authority

    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 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 and the use of 
their names as appellations of origin on wine labels and in wine 
advertisements. Title 27 CFR Part 9, American Viticultural

[[Page 3200]]

Areas, contains the list of approved viticultural areas.

Definition of an American Viticultural Area

    Title 27 CFR 4.25a(e)(1) defines an American viticultural area as a 
delimited grape-growing region distinguishable by geographic features 
whose boundaries have been delineated in subpart C of part 9.

Requirements

    Section 4.25a(e)(2) outlines the procedure for proposing an 
American viticultural area. Anyone interested may petition ATF to 
establish a grape-growing region as a viticultural area. The petition 
must include--
    [sbull] Evidence of local and/or national name recognition of the 
proposed viticultural area as the area specified in the petition;
    [sbull] Historical or current evidence that the boundaries of the 
proposed viticultural area are as specified in the petition;
    [sbull] Evidence of geographical characteristics, such as climate, 
soils, elevation, physical features, etc., that distinguish the 
proposed area from surrounding areas;
    [sbull] A description of the specific boundaries of the proposed 
viticultural area, based on features reflected on maps that are 
approved by the United States Geological Survey (USGS) and of the 
largest applicable scale; and
    [sbull] A copy or copies of the appropriate USGS-approved map(s) 
with the boundaries prominently marked.

Impact on Current Wine Labels

    If this NPRM is approved, bottlers who use brand names like the 
name of the viticultural area may be affected. Such bottlers must 
ensure that their existing products are eligible to use the name of the 
viticultural area as an appellation of origin. For a wine to be 
eligible, 85 percent of the grapes in the wine must have been grown 
within the viticultural area(s). See 27 CFR 4.25a(e)(3).
    If the wine is ineligible, the bottler must change the brand name 
of that wine and obtain approval of the new label. Different rules 
apply if a permittee labels a wine in this category with a label 
approved as of July 7, 1986. See 27 CFR 4.39(i).

Alexandria Lakes Petition

    ATF has received a petition from Robert G. Johnson on behalf of 
Carlos Creek Winery, proposing to establish ``Alexandria Lakes'' as an 
American viticultural area. The proposed American viticultural area is 
located in Douglas County, Minnesota and encompasses approximately 17 
square miles. Six fresh water lakes surround the area.

Name Evidence

    The petitioner submitted the following as evidence that the area is 
locally and nationally known as Alexandria Lakes:
    [sbull] The 2002 Official Visitors Guide for the Alexandria Lakes 
area published by the Alexandria Lakes Area Chamber of Commerce. This 
guide refers to the area as the ``Alexandria Lakes Area.''
    [sbull] Several brochures that refer to the proposed area as the 
``Alexandria Lakes Area.''
    [sbull] A letter from the Alexandria Lake Area Sanitary District 
referring to the proposed area as the ``Alexandria Lake Area.''

Evidence of Boundaries

    The petitioner has submitted the following as boundary evidence:
    [sbull] U.S.G.S. Map (Alexandria West, Minn. 1966 (revised 1994));
    [sbull] U.S.G.S. Map (Alexandria East, Minn. 1966 (revised 1994));
    [sbull] U.S.G.S. Map (Lake Miltona West, Minn. 1969); and
    [sbull] U.S.G.S. Map (Lake Miltona East, Minn. 1969).
    The proposed Alexandria Lakes viticultural area is located in 
Douglas County, Minnesota. The proposed boundaries do not encompass the 
entire land mass known by that name. According to the petitioner, 
current viticulture and a unique microclimate limit the boundaries to 
those proposed. He also indicates that the area's geographic features 
help define the proposed viticultural area's borders. We will discuss 
these features further below.

Geologic Features

    The petitioner states that glacial activity formed the proposed 
area at the end of the last ice age, 10,000 years ago. The soil is 
unique because the glacial activity gouged it from the surrounding 
areas. The steep glacial erosion produced a geographically isolated 
area that the region's deepest glacial lakes surround. These lakes are 
not only the deepest, but by volume, they are largest in the region.
    The petitioner states that the most abundant soil found in the 
petitioned area is of the Nebish-Beltrami association. This association 
is very unique in that it makes up only 5% of the county. The U.S. 
Department of Agriculture Soil Conservation Service (USDASCS) defines 
this soil as deep, well and moderately well drained. The petitioner 
states that vegetation in the proposed area must survive on poorer 
soils and must have broader root systems than vegetation grown in the 
surrounding regions. According to the petitioner, the higher 
concentration of hardwood trees in the proposed area evidence this.
    By contrast, the USDASCS defines the opposing lakeshores' soil, 
just west and north of the proposed area, as belonging to the Waukon-
Flom association, which they describe as poorly drained. The petitioner 
indicates that these are alluvial wash plains containing heavy lomis 
soils and low wetlands.
    The USDASCS defines the soil associations on the opposing shores 
just south and east of the proposed areas as belonging to the Arvilla-
Sverdrup association. These soils formed in sand or sand and gravel 
outwash material and are described as excessively drained.

Geographic Features

    According to the petitioner, the proposed area's geographic 
features further distinguish it from surrounding regions. Six fresh-
water lakes almost completely surround the proposed area. To the north 
lies Lake Miltona, which is the largest lake in Douglas County. To the 
east is Lake Carlos, which is, according to the Alexandria Lakes Area 
Chamber of Commerce, the largest lake in the Alexandria Lakes chain. 
South of the border are two small lakes, Lake Louise and Lake Alvin, 
and a medium size lake, Lake Darling. West lies Lake Ida, which is one 
of the largest lakes in the area.

Climate

    The petitioner provided climate data for the years 1992 through 
2001 from the University of Minnesota Meteorological Department's Web 
site. The data indicates that the proposed area receives on average 
more precipitation than the surrounding regions. The petitioned area's 
average precipitation is approximately 23.65 inches per year. By 
contrast, Osakis, Wadena, and Ashby Counties, which are located east, 
north, and west, respectively, of the petitioned area, all received 
between 1 to 3 more inches of precipitation per year. The petitioner 
states the difference is due to the seasonal southern winds that blow 
through the petitioned area producing moisture updrafts that result in 
rain clouds generally north and east of the area.
    The petitioner states that the proposed area receives less annual 
snowfall than the surrounding regions. The petitioned area's average 
snowfall is approximately 47.67 inches per year. By

[[Page 3201]]

contrast, Osakis, Wadena, and Ashby, all receive between 4 to 8 more 
inches of snowfall per year.
    According to the petitioner, ``the drier climate and lighter snow 
cover makes for lowered water tables, but watershed flowing from areas 
to the north and east replenish the water and maintain constant lake 
water levels.'' In addition, the petitioner states that the petitioned 
area has temperature averages that are generally warmer in the winter 
and cooler in the summer than those of adjacent areas.

Public Participation

Comments

    We request comments from anyone interested. Please support your 
comments with specific information. Examples include name evidence and 
data about growing conditions or area boundaries.
    Although we do not acknowledge receipt, we will consider your 
comments if we receive them on or before the closing date. We will 
consider comments received after the closing date if time permits. We 
regard all comments as originals.
    You may submit comments in any of four ways.
    [sbull] By mail: You may send written comments to ATF at the 
address listed in the Addresses section.
    [sbull] By facsimile: You may submit comments by facsimile 
transmission to 202-927-8525. Faxed comments must--
    (1) Be legible;
    (2) Reference this Notice number;
    (3) Be on 8\1/2\ by 11-inch paper;
    (4) Contain a legible, written signature; and
    (5) Be five or less pages long. This limitation assures electronic 
access to our equipment. We will not accept faxed comments that exceed 
five pages.
    [sbull] By e-mail: You may e-mail comments to 
[email protected]. Comments transmitted by electronic-mail 
must--
    (1) Contain your name, mailing address, and e-mail address;
    (2) Reference this Notice number on the subject line; and
    (3) Be legible when printed on 8\1/2\ by 11-inch paper. We will not 
acknowledge receipt of e-mail.
    [sbull] Online: We provide a comment form with the online copy of 
this proposed rule. See the ATF Internet Web site at http://www.atf.treas.gov.
    You may also write to the Director to ask for a public hearing. The 
Director reserves the right to determine, in light of all 
circumstances, whether a public hearing will be held.

Disclosure

    You may inspect copies of the petition, the proposed regulations, 
the appropriate maps, and any written comments by appointment. The ATF 
Reading Room, Public and Governmental Affairs, is located in room 6480 
at 650 Massachusetts Avenue, NW., Washington, DC 20226. You may also 
obtain copies at 20 cents per page. If you want to view or request 
copies of comments, call the ATF librarian at telephone number 202-927-
7890.
    For your convenience, we will post comments received in response to 
this Notice on the ATF Web site. All comments posted on our Web site 
will show the names of commenters but not street addresses, telephone 
numbers, or e-mail addresses. We may also omit voluminous attachments 
or material that we consider unsuitable for posting. In all cases, the 
full comment will be available in the ATF Reading Room. 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).'' Next, select ``View Comments'' under 
this Notice number. Finally, select ``Notice of Proposed Rulemakings 
Comments'' and this Notice number.

Confidentiality

    We do not recognize any submitted material as confidential. We will 
disclose all information that relates to the comments, including the 
identity of the commenters. Do not enclose in your comments any 
material you consider confidential or inappropriate for disclosure.

Regulatory Analyses and Notices

Paperwork Reduction Act

    We propose no requirement to collect information. Therefore, the 
provisions of the Paperwork Reduction Act of 1995, 44 U.S.C. 3507, and 
its implementing regulations, 5 CFR part 1320, do not apply.

Regulatory Flexibility Act

    We certify that this regulation will not have a significant 
economic impact on a substantial number of small entities, including 
small businesses. The establishment of viticultural areas represents 
neither ATF endorsement nor approval of the quality of wine produced in 
the areas. Rather, it allows identification of areas distinct from one 
another where a given quality, reputation, or other characteristic of 
the wine produced in the area is essentially attributable to its 
geographical origin. We believe that the establishment of viticultural 
areas allows wineries to describe more accurately 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 efforts and consumer acceptance 
of wines from that area.

Executive Order 12866

    This proposed rule is not a ``significant regulatory action'' as 
defined by Executive Order 12866. Therefore, no regulatory assessment 
is required.

Drafting Information

    The principal author of this document is Lisa M. Gesser, 
Regulations Division, 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

    ATF proposes to amend 27 CFR part 9 as follows:

PART 9--AMERICAN VITICULTURAL AREAS

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

    Authority: 27 U.S.C. 205.

Subpart C--Approved American Viticultural Areas

    2. Amend subpart C by adding Sec.  9.177 to read as follows:


Sec.  9.177  Alexandria Lakes

    (a) Name. The name of the viticultural area described in this 
section is ``Alexandria Lakes''.
    (b) Approved maps. The appropriate maps for determining the 
boundary of the Alexandria Lakes viticultural area are the following 
four U.S.G.S. topographical maps (7.5 minute series 1:24000 scale):
    (1) ``Alexandria West, Minn.,'' 1966, revised 1994.
    (2) ``Alexandria East, Minn.,'' 1966, revised 1994.
    (3) ``Lake Miltona East, Minn.,'' 1969.
    (4) ``Lake Miltona West, Minn.,'' 1969.
    (c) Boundaries. The proposed Alexandria Lakes viticultural area is 
located in Douglas County, Minnesota and is encompassed by 6 fresh 
water lakes in an area of approximately 17 square miles. The proposed 
boundaries are as follows:
    (1) The beginning point is located on Alexandria West, Minn. map 
between

[[Page 3202]]

Lake Carlos and Lake Darling at bench mark (BM) 1366, which is an 
unmarked bridge on County Road 11, known as the Carlos-Darling Bridge.
    (2) The boundary continues along the Carlos-Darling bridge and then 
northeasterly along the western shore of Lake Carlos on to the 
Alexandria East, Minn. map.
    (3) The boundary continues along the shoreline until the point 
where the Lake Carlos shoreline parallels an unlabeled road known as 
County Road 38.
    (4) The boundary continues north along County Road 38 until it 
intersects with an unlabeled road known as County Road 62.
    (5) The boundary continues north along County Road 62 on to the 
Lake Miltona, East, Minn. map and then on to an unlabeled road known as 
Buckskin Road.
    (6) The boundary continues north on Buckskin Road to the point at 
BM 1411.
    (7) From BM 1411, the boundary continues north in a straight line 
to the south shoreline of Lake Miltona.
    (8) The boundary continues generally west along the south shoreline 
of Lake Miltona on to the Lake Miltona West, Minn. map until the 
southern shoreline parallels an unlabeled road known as Krohnfeldt 
Drive.
    (9) The boundary continues south and then west along Krohnfeldt 
Drive until it intersects with an unlabeled road known as County Road 
34.
    (10) The boundary continues south along County Road 34 until the 
point where County Road 34 runs parallel to Lake Ida's eastern 
shoreline.
    (11) The boundary continues south along Lake Ida's eastern 
shoreline then on to the Alexandria West, Minn. map to the point where 
two unlabeled roads known as Burkey's Lane and Sunset Strip Road 
intersect.
    (12) The boundary continues south along Sunset Strip Road to the 
point where it intersects with an unlabled road known as County Road 
104.
    (13) The boundary continues generally east along County Road 104 
until it intersects with an unlabeled road known as County Road 34.
    (14) The boundary continues east along County Road 34 until it 
intersects with an unlabeled road known as County Road 11.
    (15) The boundary continues east along County Road 11 to the 
beginning point for the area at BM 1366, known as the Carlos-Darling 
Bridge.

    Signed: January 14, 2003.
Bradley A. Buckles,
Director.
[FR Doc. 03-1527 Filed 1-22-03; 8:45 am]
BILLING CODE 4810-31-P