[Federal Register Volume 68, Number 124 (Friday, June 27, 2003)]
[Proposed Rules]
[Pages 38248-38251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16325]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Notice No. 12]
RIN 1512-AC78


Proposed McMinnville Viticultural Area (2002R-217P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau (TTB), Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau proposes to 
establish the ``McMinnville'' viticultural area in Yamhill County, 
Oregon, within the existing Willamette Valley viticultural area. The 
proposed viticultural area would include only the land at and between 
the elevations of 200 feet and 800 feet within the described 
boundaries. We propose to amend the regulations to include this area, 
and we invite comments on this proposal, especially from those whose 
brand names may be affected by this proposal.

DATE: We must receive written comments by August 26, 2003.

ADDRESSES: You may send comments to any of the following addresses--
    [sbull] Chief, Regulations and Procedures Division, Alcohol and 
Tobacco Tax and Trade Bureau, P.O. Box 50221, Washington, DC 20091-0221 
(Attn: Notice No. 12);
    [sbull] 202-927-8525 (facsimile);
    [sbull] [email protected] (e-mail); or
    [sbull] http://www.ttb.gov (An online comment form is posted with 
this Notice on our Web site).
    You may view copies of this notice and any comments received at 
http://www.ttb.gov/alcohol/rules/index.htm or by appointment at the ATF 
Reference Library, 650 Massachusetts Avenue, NW., Washington, DC 20226; 
phone 202-927-7890.
    See the Public Participation section of this Notice for specific 
instructions and requirements, as well as information on how to request 
a public hearing.

FOR FURTHER INFORMATION CONTACT: Jennifer Berry, Alcohol and Tobacco 
Tax and Trade Bureau, Regulations and Procedures Division, P.O. Box 
18152, Roanoke, VA 24014; telephone 540-344-9333.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

What Is TTB'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 Secretary of the Treasury to issue regulations to carry 
out its 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 38249]]

Areas, contains the list of approved viticultural areas.

What Is the Definition of a 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. The 
establishment of viticultural areas allows the identification of 
regions where a given quality, reputation, or other characteristics of 
the wine is essentially attributable to its geographic 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. Establishment of a 
viticultural area is neither an approval nor endorsement by TTB of the 
wine produced there.

What Is Required To Establish a Viticultural Area?

    Section 4.25(e)(2) outlines the procedure for proposing an American 
viticultural area. Any interested person may petition TTB to establish 
a grape growing region as a viticultural area. The petition must 
include:
    [sbull] Evidence that the proposed viticultural area is locally 
and/or nationally known by the name 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 relating to geographical features, including 
growing conditions, such as climate, soil, 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 approved by the 
United States Geological Survey (USGS); and
    [sbull] A copy or copies of the appropriate USGS-approved map(s) 
with the boundaries prominently marked.

What Impact Will This Have on Current Labels?

    If this proposed viticultural area is established, bottlers who use 
brand names like ``McMinnville'' may be affected. If you fall in this 
category, you must ensure that your existing products are eligible to 
use the name of the viticultural area as an appellation of origin. For 
a wine to be eligible, at least 85 percent of the grapes in the wine 
must have been grown within the viticultural area and meet the other 
requirements listed in 27 CFR 4.25a(e)(3).
    If the wine is not eligible for the appellation, you must change 
the brand name and obtain approval of a new label. Different rules 
apply if the brand name in question is on a label approved prior to 
July 7, 1986. See 27 CFR 4.39(i) for details. Additionally, if you use 
the viticultural area name on a wine label in a context other than 
appellation of origin, the general prohibitions against misleading 
representation in part 4 of the regulations apply.

McMinnville Petition

    Mr. Kevin Byrd, of Youngberg Hill Vineyards, McMinnville, Oregon, 
has petitioned TTB for the establishment of a viticultural area to be 
called ``McMinnville.'' The proposed viticultural area is located 
approximately 40 miles southwest of Portland, Oregon, just west of the 
city of McMinnville and north of the village of Sheridan in Yamhill 
County. The proposed area is also entirely within the existing 
Willamette Valley viticultural area described in 27 CFR 9.90. According 
to the petitioner, there are 14 wineries and 523 acres planted to vines 
within the proposed McMinnville viticultural area.

What Name Evidence Has Been Provided?

    The proposed viticultural area is named for the city of 
McMinnville, the county seat of Yamhill County, which is located at the 
northeastern border of the proposed viticultural area. Mr. Byrd states 
that the proposed area is considered part of greater McMinnville and 
notes that most of the wineries within the proposed boundaries have 
McMinnville addresses. He provided historical information on the name 
``McMinnville'' from ``Oregon Geographic Names'' by Lewis L. McArthur 
(Oregon Historical Society, 1982). Mr. McArthur stated:

    McMinnville was named by William T. Newby, who was born in 
McMinnville, Warren County, Tennessee, in 1820, and came to Oregon 
in 1843. He settled near the present site of McMinnville early in 
1844, and in 1853 built a grist mill and founded the town. In 1854 
he started a store. He was county assessor in 1848 and state senator 
in 1870. McMinville post office was established on May 29, 1855, 
with Elbrige G. Edson postmaster. The name was later changed to the 
present spelling.

    According to the petitioner, McMinnville is known to consumers as a 
wine producing area. To demonstrate this, he submitted several quotes 
from Internet sites. The first quote is from the Web site of the 
Greater McMinnville Chamber of Commerce; the other two are from travel 
sites:
    [sbull] ``Nestled in the heart of Oregon's beautiful wine country, 
McMinnville is Oregon at its best.'' (See http://www.mcminnville.org/welcome.html.)
    [sbull] ``Before gaining its glamorous reputation as a wine-
producing center, McMinnville was known as the home of Linfield College 
* * *.'' (See http://www.ohwy.com/or/m/mcminnvi.htm.)
    [sbull] ``McMinnville is known for its picturesque vineyards that 
dot the foothills. Located in Yamhill County, the oldest county in 
Oregon, McMinnville is often compared to the wine regions of France and 
Germany.'' (See http://www.el.com/to/mcminnville/ mcminnville/).
    In addition, the petitioner notes that McMinnville is the home of 
the International Pinot Noir Celebration, held every July since 1987 at 
the Linfield College campus.

What Boundary Evidence Has Been Provided?

    The boundaries for the proposed McMinnville viticultural area are 
based primarily on elevation. The proposed boundaries encompass Gopher 
Valley, Dupee Valley, Muddy Valley, and the surrounding hills, all 
geographically part of the eastern foothills of the Coast Range. 
However, within the boundaries described in the proposed regulation 
section of this notice, only land at and between 200 and 800 feet of 
elevation is included in the proposed viticultural area. According to 
the petitioner, those elevations are distinctive in their soils and 
climate when compared to other parts of the Willamette Valley. The 
petitioner states that below the 200 foot elevation line the Willamette 
silt-based soils create growing conditions substantially different from 
those in the proposed area. The greater depth, water holding capacity, 
and fertility of these lower elevation soils extends the vegetative 
period of the vine and delays ripening of vineyards planted at those 
elevations. The soils of the proposed area are described in greater 
detail in the following section.
    In addition, the petitioner asserts that elevation greatly affects 
the microclimate of the proposed viticultural area. He notes that 
elevations below 200 feet are more prone to frost when compared to the 
higher elevations. On the other hand, elevations above 800 feet 
experience far fewer degree growing days than lower elevations, which 
prevents the reliable ripening of wine grapes.
    The petitioner's proposal is unusual in that the proposed 
boundaries encompass land that will not be part of

[[Page 38250]]

the proposed viticultural area. Land below 200 feet and above 800 feet 
will be excluded due to soil and climate differences with land between 
those elevations. A precedent does exist for such a viticultural area. 
Within the boundaries of the Mendocino Ridge viticultural area, only 
land at and above the 1200 foot elevation line is included in the 
viticultural area (See 27 CFR 9.158 and T.D. ATF-392 at 62 FR 55512, 
October 27, 1997). However, because of the unusual nature of such 
boundaries, TTB is particularly interested in public comments on the 
proposed McMinnville boundaries. Specifically, does the evidence 
regarding elevation support the exclusion of some of the land lying 
within the proposed area's outer boundaries?

What Evidence of Distinctive Geographical Features Has Been Provided?

    The petitioner asserts that the geographic and climatic features of 
the proposed McMinnville viticultural area distinguish it from 
surrounding areas of the Willamette Valley.
Temperature and Precipitation
    According to the petitioner, the proposed viticultural area's 
location just east of the Coast Range and northeast of the Van Duzer 
Corridor greatly affects its growing season temperatures and 
precipitation. He submitted temperature and precipitation data from the 
Oregon Climate Service comparing McMinnville with two other sites in 
the western Willamette Valley--Dallas, Oregon, to the south of 
McMinnville, and Scoggins Dam, Oregon, to the north. This data shows 
that McMinnville is, on average, warmer and drier than Dallas and 
Scoggins Dam. McMinnville averaged 2178 degree growing days above 50 
degrees during the growing season for the years 1971-2000, with average 
yearly precipitation of 41.66 inches. Dallas, for the same period, 
averaged 2116 degree growing days above 50 degrees, with precipitation 
of 49.13 inches. Scoggins Dam, for the period, averaged 1974 degree 
growing days above 50 degrees, with precipitation of 50.68 inches.
    The petitioner explains that cooler and wetter conditions south of 
McMinnville are due to the Van Duzer Corridor, a pass through Oregon's 
Coast Range. Cool, wet marine air flows inland through this pass, 
causing cooler, wetter growing conditions in areas east of the pass. 
North and west of McMinnville, at Scoggins Dam for example, the 
petition states that the land makes a rapid transition to the slopes of 
the Coast Range, which has much cooler temperatures and greater 
rainfall.
Soils and Geology
    According to the petitioner, the soils and geology of the proposed 
McMinnville viticultural area are different from those in surrounding 
areas, thus providing distinctive growing conditions for the area's 
grapes. To demonstrate the soil differences, the petitioner submitted 
soil survey maps published by the Soil Conservation Service of the U.S. 
Department of Agriculture. The soils of the McMinnville area are 
characterized by several types of shallow (less than 40 inches deep) 
silty clay and clay loams that exhibit low total available moisture. 
These soils, primarily Yamhill, Nekia, Peavine, Willakenzie, and 
Hazelair, all have a typical depth to base materials of between 20 and 
40 inches, while the average total available moisture for these soils 
ranges from 4.8 to 6.3 inches.
    To the west and northwest of the proposed area, the petition notes, 
the soils transition to those of the Olyic and Hembre associations. 
While these soils are also shallow silty clay and clay loams, they tend 
to be acidic. To the north of the area (within the proposed Yamhill-
Carlton viticultural area), a greater percentage of the soils are of 
the Woodburn-Willamette association. These soils are of greater depth 
(60 inches) and have a higher total available moisture (12 to 13 
inches). The Woodburn-Willamette soils also predominate to the south 
and southwest of the proposed area.
    The petitioner states that the most distinctive geological feature 
within the proposed area is the Nestucca Formation, a 2000-foot thick 
bedrock formation that extends west from the city of McMinnville to the 
slopes of the Coast Range. This formation contains marine sandstone and 
mudstone with intrusions of marine basalts. These intrusions 
differentiate the formation from the pure basaltic parent materials 
found under the Red Hills and Chehalem Mountains and the pure marine 
sedimentary materials of the Yamhill Formation found on the valley 
floor.
    Because of these marine basalts, the petition notes that the ground 
water composition of the McMinnville area is significantly different 
from that in areas to the east. According to data obtained from Oregon 
State University's Drinking Water Program, it contains greater 
dissolved sodium (66 mg/L vs. 16 mg/L), less dissolved potassium (.9 
mg/L vs. 3.8 mg/L), and greater dissolved boron (230 ug/L vs. 20 ug/L) 
than the ground water east of McMinnville. The petitioner asserts that 
significant variations in these component materials can result in 
grapes with unique flavor and development characteristics.

Boundary Description

    See the narrative boundary description of the petitioned 
viticultural area in the proposed regulation published near the end of 
this notice.

Public Participation

Comments Sought

    We request comments from anyone interested. Please support your 
comments with specific information about the proposed area's name, 
growing conditions, or boundaries. Due to the unusual nature of the 
proposed boundaries, we are particularly interested in comments 
regarding the proposed area's elevation limitations. All comments must 
include your name and mailing address, reference this notice number, 
and be legible and written in language acceptable for public 
disclosure.
    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 we can. We regard 
all comments as originals.

Confidentiality

    We do not recognize any submitted material as confidential. All 
comments are part of the public record and subject to disclosure. Do 
not enclose in your comments any material you consider confidential or 
inappropriate for disclosure.

Submitting Comments

    You may submit written comments in any of four ways:
    [sbull] By mail: You may send written comments to TTB 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 on 8.5 by 11 inch paper;
    (2) Contain a legible, written signature; and
    (3) 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 e-mail address;
    (2) Reference this notice number on the subject line; and
    (3) Be legible when printed on 8.5 by 11 inch paper.

[[Page 38251]]

    [sbull] By online form: We provide a comment form with the online 
copy of this notice on our Web site at http://www.ttb.gov/alcohol/rules/index.htm.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine, in light of all circumstances, whether a public hearing 
will be held.

Disclosure

    You may view copies of the petition, the proposed regulation, the 
appropriate maps, and any comments received by appointment at the ATF 
Reference Library, 650 Massachusetts Avenue, NW., Washington, DC 20226. 
You may also obtain copies at 20 cents per 8.5 x 11-inch page. Contact 
the ATF Librarian at the above address or telephone 202-927-7890 to 
schedule an appointment or to request copies of comments.
    For your convenience, we will post this notice and the comments 
received on the TTB Web site. All posted comments 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 Reference Library. To access the online copy of 
this notice and any posted comments, see this notice number at http://www.ttb.gov/alcohol/rules/index.htm.

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 proposed regulation, if adopted, will not have 
a significant economic impact on a substantial number of small 
entities. This proposed regulation imposes no new reporting, 
recordkeeping, or other administrative requirement. Any benefit derived 
from the use of a viticultural area name is the result of a 
proprietor's efforts and consumer acceptance of wines from that area. 
Therefore, no regulatory flexibility analysis is required.

Executive Order 12866

    This proposed rule is not a significant regulatory action as 
defined by Executive Order 12866, 58 FR 51735. Therefore, it requires 
no regulatory assessment.

Drafting Information

    The principal author of this document is Jennifer Berry, 
Regulations and Procedures Division, Alcohol and Tobacco Tax and Trade 
Bureau.

List of Subjects in 27 CFR Part 9

    Wine.

Authority and Issuance

    For the reasons discussed in the preamble, we propose to amend 
Title 27, Code of Federal Regulations, Part 9, American Viticultural 
Areas, 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.

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

Subpart C--Approved American Viticultural Areas


Sec.  9.----  McMinnville.

    (a) Name. The name of the viticultural area described in this 
section is ``McMinnville''.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the McMinnville viticultural area are five United States 
Geological Survey (USGS) topographic maps, scale 1:24,000:
    (1) McMinnville, OR, 1957, photorevised 1970;
    (2) Muddy Valley, OR, 1979;
    (3) Stony Mountain, OR, 1979;
    (4) Sheridan, OR, 1956, photorevised 1970; and
    (5) Ballston, OR, 1956, photorevised 1970.
    (c) Boundary. The McMinnville viticultural area is located in 
Yamhill County, Oregon, and is entirely within the Willamette Valley 
viticultural area (27 CFR 9.90). Within the boundary description that 
follows, the McMinnville viticultural area encompasses only that land 
at and between the 200 foot and 800 foot elevation lines.
    (1) From the point of beginning on the McMinnville, OR map in 
section 18, T.4.S, R.4.W, at the intersection of Baker Creek Road and 
Hill Road, follow Baker Creek Road west to its intersection with Power 
Plant Hill Road (known locally as Power House Hill Road) on the Muddy 
Valley map;
    (2) Then proceed southwest on Power Plant Hill Road to its 
intersection with Peavine Road;
    (3) Follow Peavine Road northwest to its intersection with Gill 
Creek;
    (4) Follow Gill Creek in a southwesterly direction to its 
intersection with the 800-foot contour line in section 18, T.4.S., 
R.5.W, on the Muddy Valley map;
    (5) Starting on the west bank of Gill Creek, follow the meandering 
800-foot contour line in a westerly direction, crossing Gopher Valley 
Road in section 14, T.4.S., R.6.W. on the Stony Mountain map, and 
continue to follow the 800-foot contour line as it meanders back and 
forth four times between the Stony Mountain map and the Muddy Valley 
map in section 24, T.4.S., R.6.W.;
    (6) Continue to follow the meandering 800-foot contour line in a 
southwesterly direction, crossing Rock Creek Road in section 27, 
T.4.S., R.6.W. on the Stony Mountain map, to the 800-foot contour 
line's intersection with Rock Creek Road in section 46, T.5.S, R.6.W., 
on the Stony Mountain map;
    (7) Then follow Rock Creek Road south to its intersection with the 
Salmon River Highway on the Sheridan map;
    (8) Follow the Salmon River Highway east through the village of 
Sheridan and then northeast through the Ballston map, to its 
intersection with Oldsville Road on the Muddy Valley map;
    (9) Follow Oldsville Road northeast to its intersection with McCabe 
Chapel Road (unnamed on the map);
    (10) Follow McCabe Chapel Road west then north to its intersection 
with Masonville Road;
    (11) Follow Masonville Road east to its intersection with Old 
Sheridan Road on the McMinnville map;
    (12) Follow Old Sheridan Road northeast to its intersection with 
Peavine Road;
    (13) Follow Peavine Road northwest for approximately 800 feet to 
its intersection with Hill Road; and
    (14) Follow Hill Road north to its intersection with Baker Creek 
Road and the beginning point.

    Signed: June 19, 2003.
John J. Manfreda,
Acting Administrator.
[FR Doc. 03-16325 Filed 6-26-03; 8:45 am]
BILLING CODE 4810-13-P