[Federal Register Volume 68, Number 210 (Thursday, October 30, 2003)]
[Proposed Rules]
[Pages 61776-61779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-27317]



[[Page 61776]]

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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Notice No. 20]
RIN 1513-AA69


Proposed Establishment of the Salado Creek Viticultural Area 
(2003R-025P)

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 Salado Creek viticultural area in western Stanislaus 
County, California. Located near the town of Patterson, the proposed 
viticultural area covers 2,940 acres, with 44 acres currently planted 
to grapes. We propose this action under the authority of the Federal 
Alcohol Administration Act. We invite comments on this proposal, 
particularly from bottlers who use brand names similar to that of the 
proposed area.

DATES: We must receive written comments on or before December 29, 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. 20);
[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 our 
reference library, 1310 G Street, NW., Washington, DC 20005; telephone 
202-927-8210 for an appointment. You may also access copies of the 
notice and comments on our Web site at http://www.ttb.gov/alcohol/rules/index.htm.
    See the Public Participation section of this notice for specific 
instructions and requirements, and for information on how to request a 
public hearing.

FOR FURTHER INFORMATION CONTACT: N.A. Sutton, Specialist, Regulations 
and Procedures Division (Oregon), Alcohol and Tobacco Tax and Trade 
Bureau, 946 Northwest Circle Blvd., 286, Corvallis, OR 97330; 
telephone 415-271-1254.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

TTB 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 misleading information on such labels. The FAA Act also 
authorizes the Secretary of the Treasury to issue regulations to carry 
out its provisions, and the Secretary has delegated this authority to 
the Alcohol and Tobacco Tax and Trade Bureau (TTB).
    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 Areas, 
contains the list of approved viticultural areas.

Definition

    Title 27 CFR 4.25(e)(1) defines an American viticultural area as a 
delimited grape-growing region distinguishable by geographic features 
whose boundary has been delineated in subpart C of part 9. These 
designations allow consumers and vintners to attribute a given quality, 
reputation, or other characteristic of the wine made from grapes grown 
in an area 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.

Requirements to Establish a Viticultural Area

    Section 4.25(e)(2) outlines the procedure for proposing an American 
viticultural area. Anyone interested 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 that the proposed area's growing conditions, such 
as climate, soils, elevation, physical features, etc., distinguish it 
from surrounding areas;
    [sbull] A description of the proposed viticultural area's specific 
boundaries, based on features found on maps approved by the United 
States Geological Survey (USGS); and
    [sbull] A copy of the appropriate USGS-approved map(s) with the 
boundaries prominently marked.

Impact on Current Wine Labels

    As appellations of origin, viticultural area names have geographic 
significance. Our 27 CFR part 4 label regulations prohibit the use of a 
brand name with geographic significance on a wine unless the wine meets 
the appellation of origin requirements for the named area. Our 
regulations also prohibit any other label references that suggest an 
origin other than the true place of origin of the wine.
    If we establish this proposed viticultural area, bottlers who use 
brand names, including trademarks, like Salado Creek must ensure that 
their existing products are eligible to use the viticultural area's 
name 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 the wine must meet the other requirements of 27 
CFR 4.25(e)(3).
    If the wine is not eligible for the appellation, the bottler must 
change the brand name or other label reference and obtain approval of a 
new label. Different rules apply to a wine in this category bearing a 
brand name that was used on a label approved prior to July 7, 1986. See 
27 CFR 4.39(i) for details.

Salado Creek Petition

    TTB has received a petition filed on behalf of Mr. Fred Vogel of 
the Sunflower Ranch Company in Patterson, California, proposing the 
establishment of the ``Salado Creek'' viticultural area in Stanislaus 
County, California. The proposed 2,940-acre area is located about 75 
miles east-southeast of San Francisco and 18 miles southwest of Modesto 
in a rural area of central, interior California. The proposed area is 
located along Interstate 5 on the western edge of the San Joaquin 
Valley, just southwest of the town of Patterson. The Diablo Mountains 
rise to the west of the proposed area and shield it from the Pacific 
Ocean's marine influence. Salado Creek flows from the mountains through 
the area, while Little Salado Creek touches its southern tip.

Name Evidence

    According to the petition, Spanish explorer Gabriel Moraga named 
Salado Creek. Moraga, a Spanish army officer, explored the San Joaquin 
Valley during his 1806-1811 expeditions to the San Joaquin Valley and 
named many of its

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geographic features including the San Joaquin River. Many of those 
names remain in use today. The names ``Salado'' and ``Salado Creek,'' 
for example, are attached to a variety of features and places, both 
natural and man-made.
    As shown on the two official United States Geological Survey (USGS) 
maps that cover the proposed viticultural area, the Patterson and Crows 
Landing quadrangles, Salado Creek is an intermittent stream that flows 
east from the higher elevations of the Diablo Mountains. After passing 
under Interstate 5, Salado Creek turns and flows north through the 
proposed viticultural area. After leaving the proposed area, the creek 
runs west and north of Patterson.
    The Patterson quadrangle map shows Little Salado Creek running east 
from the Diablo Mountains to the southern tip of the proposed 
viticultural area, where Interstate 5 and the California Aqueduct 
interrupt its natural channel. On the Crows Landing map, the creek is 
shown to resume southeast of the proposed area where it runs northeast 
from the Delta-Mendota Canal. The Salado Sub-Station is shown beside 
the California Aqueduct within the proposed area's boundaries.
    The petition also notes that the Salado Creek Ranch, known for its 
walnuts, is within the proposed boundary area. It adds that Salado 
Avenue in Patterson is a major street that passes the town's post 
office, its branch library, a new school, and the city council's 
chambers. The petition also states that the local irrigation district 
was previously known as the Salado Irrigation District.
    The petition explains that Salado Creek is best known to local 
residents for its floods. ``Salado Creek History,'' an article 
published in ``The Gateway: A Patterson Township History Society 
Bulletin'' in December 1996, discusses the creek's significant floods. 
As noted in the article, the March 4, 1938, edition of the local 
Patterson Irrigator newspaper states that Salado Creek spilled over its 
banks and onto State Highway 33 on Patterson's east side. The article 
adds that a flood in November of 1938 spilled into a local nursery.

Boundary Evidence

    The petitioner explains that water from Salado Creek and Little 
Salado Creek has deposited large quantities of sediment on the flood 
plain and formed an alluvial fan. Further, these sediments are the 
parent material for the Ensalado soil series, which the petition states 
are unique to western Stanislaus County. The petitioner emphasizes that 
the proposed Salado Creek viticultural area boundaries, which are on 
this alluvial fan, generally coincide with the extent of the Ensalado 
soil series.

Growing Conditions

Topography
    The proposed Salado Creek viticultural area lies on the western 
side of the San Joaquin Valley at the foot of the Diablo Mountains, 
which are part of California's Coast Range. The proposed area, which is 
between 125 and 340 feet above sea level as noted on the USGS maps, is 
generally flat, with a gentle downward slope to the northeast towards 
the San Joaquin River. A number of man-made canals, ditches, and drains 
cross the proposed viticultural area. The California Aqueduct and the 
Delta-Mendota Canal, for example, flow from the northwest to the 
southeast across the proposed Salado Creek viticultural area.
    Salado Creek is the major natural watercourse in the proposed 
viticultural area. An intermittent stream, it begins in the Diablo 
Mountain Range to the area's west and runs east in its natural channel 
from the mountains to the California Aqueduct. After crossing the 
Aqueduct at the foot of the Diablos, the creek flows north and then 
northeasterly across the gently sloping floor of the San Joaquin 
Valley. After crossing the Delta-Mendota Canal in a flume, it enters a 
man-made channel that carries it north out of the proposed viticultural 
area and then east around the heart of Patterson. According to the 
petition, Salado Creek then enters large drainpipes at State Route 33, 
which take its water to the San Joaquin River.
    Another intermittent stream, Little Salado Creek, starts in the 
Diablo range south of Salado Creek. It meanders east in its natural 
channel to the southern tip of the proposed boundary area at Interstate 
5 and Fink Road. The creek then enters a series of man-made drains and 
channels as it flows northeast across the valley floor outside of the 
proposed area south of Patterson.
    The petition states that the proposed area covers the upper portion 
and back slope of the alluvial fan created by Salado and Little Salado 
Creeks. The two creeks created the fan as they left the steep slopes of 
the Diablo Mountains and their flow velocity diminished as they entered 
the much gentler slopes of the San Joaquin Valley. This drop in 
velocity allowed the coarser, heavier sediments to settle out and 
formed the creeks' alluvial fan at the foot of the Diablos. The two 
streams carried finer, lighter sediments further downstream to the 
flood plain of the San Joaquin River. The coarser, heavier sediments of 
the alluvial fan became the parent material for the Ensalado soils 
found in the proposed viticultural area.
Soils
    The Ensalado series soils, formerly known as the Salado series, are 
unique to west Stanislaus County, California, according to a 2001 
publication by soil scientist, vineyard consultant, and Salado Creek 
petition author Stan Grant. He further notes that this soil series 
occurs only along three streams in the area, Salado, Orestimba, and Del 
Puerto Creeks, and accounts for only 0.17 percent of the soils covering 
western Stanislaus County. Grant notes in the petition that because of 
their lower flow velocity, Salado Creek and Little Salado Creek dropped 
large quantities of sediment immediately after leaving the Diablo 
Mountains. This produced the large alluvial fan upon which the proposed 
viticultural area sits. The petition adds that Orestimba and Del Puerto 
Creeks, with their higher flow rates, took their sediments further to 
the east, producing smaller alluvial fans at the foot of the mountains.
    The petition explains that the Ensalado soils are very deep, with a 
root depth of 60 inches or more. They are well drained, with parent 
material from sandstone and shale, and have little organic matter. The 
petition adds that they have little layer development due to the dry, 
warm climate, and are calcareous. The petition notes that the soils 
lack of layering results in soil properties that are generally 
consistent with depth, including water permeability and soil moisture. 
Classified as coarse-loamy, this soil generally consists of a thin 
layer of fine sandy loam over deep loam subsoil. According to the 
petition, other soils on the alluvial fan are older than the Ensalado 
soils and lie beyond the courses of Salado and Little Salado Creeks.
Climate
    The proposed Salado Creek viticultural area lies on the west side 
of the San Joaquin Valley at the foot of the Diablo Mountain range. 
These Coast Range mountains shield the proposed viticultural area from 
the maritime influences of the Pacific Ocean. The petitioner states 
that the area is in a ``thermal belt,'' which covers the alluvial fans 
found along the western rim of the valley in Stanislaus County. 
Consistent breezes from the north, which cool the area in the summer, 
characterize this thermal belt, according to the petition. It adds that 
in the winter, the thermal belt has less fog and

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warmer temperatures than the valley's lower elevations along the San 
Joaquin River. The petition also notes that the thermal belt allows 
growers to raise citrus crops within it, but nowhere else in the 
northern San Joaquin Valley.
    The petition included a recent comparison of weather information 
gathered from stations north, within, and south of the proposed 
viticultural area. The petition states that the proposed Salado Creek 
viticultural area has warmer minimum temperatures and cooler maximum 
temperatures, for a milder climate, than the surrounding areas. Minimum 
temperatures are higher in May, June, and August through October. 
Maximum temperatures are cooler August through December. These periods 
of comparatively mild temperatures correspond to the ripening season 
for wine grapes, according to the petitioner.
    Solar radiation statistics collected by the petitioner in 2001 
indicate less solar influence between August and October in the 
proposed viticultural area, creating a slower ripening period for the 
grapes. The petition also comments that the proposed area's low 
humidity, high average wind speeds, and high average solar radiation 
create a high rate of moisture evaporation from the area's plants and 
soil. The petition explains that this slow ripening, along with the 
continuing high rate of evaporation for plants and soil, have a 
positive effect on the quality of grapes grown in the area.

Boundary Description

    The 2,940-acre proposed Salado Creek viticultural area is in 
western Stanislaus County, just southwest of the town of Patterson. It 
lies within a portion of a blunt-ended triangle formed by Interstate 5, 
Sperry Road, Davis Road, and Fink Road. The proposed area's boundaries 
are described in detail in the proposed regulation shown below.

Maps

    The proposed boundaries of the Salado Creek viticultural area are 
shown on two USGS maps: the Patterson, California Quadrangle--
Stanislaus Co., 7.5 Minute Series, edition of 1953; photorevised 1971, 
photoinspected 1978; and the Crows Landing, California Quadrangle--
Stanislaus Co., 7.5 Minute Series, edition of 1952, photorevised 1980.

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. 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 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.
    [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. Select ``Send comments via e-mail'' under this notice 
number.
    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 in our 
reference library, 1310 G Street, NW., Washington, DC 20005. You may 
also obtain copies at 20 cents per 8.5 x 11-inch page. Contact us at 
the above address or telephone 202-927-8210 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. We may omit voluminous attachments or 
material that we consider unsuitable for posting. In all cases, the 
full comment will be available in our reference library. To access the 
online copy of this notice, visit http://www.ttb.gov/alcohol/rules/index.htm and select the ``View Comments'' link under this notice 
number to view the posted comments.

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 would be 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 N.A. Sutton, Regulations 
and Procedures Division (Oregon), 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:

[[Page 61779]]

Subpart C--Approved American Viticultural Areas


Sec.  9.----  Salado Creek.

    (a) The name of the viticultural area described in this section is 
``Salado Creek''.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the Salado Creek viticultural area are two 1:24,000 Scale 
USGS topographic maps. They are titled:
    (1) Patterson, California Quadrangle,--Stanislaus Co., 7.5 Minute 
Series, edition of 1953; photorevised 1971, photoinspected 1978; and
    (2) Crows Landing, California Quadrangle,--Stanislaus Co., 7.5 
Minute Series, edition of 1952, photorevised 1980.
    (c) Boundaries. The Salado Creek viticultural area is located in 
Stanislaus County, California, just southwest of the town of Patterson.
    (1) Beginning on the Patterson Quadrangle map in section 19, T6S, 
R8E, at the junction of Fink Road and Interstate 5;
    (2) Proceed northwest for 4.25 miles along Interstate Highway 5 to 
its junction with an unnamed light duty road in section 35, T5S, R7E 
(Patterson Quadrangle); then
    (3) Following the unnamed light duty road for approximately 0.45 
miles, go east across the California Aqueduct and then north, to the 
road's intersection with the light duty road atop the levee on the east 
bank of the Delta-Mendota Canal in section 35, T5S, R7E (Patterson 
Quadrangle); then
    (4) Proceed southeast approximately 0.3 miles along the Delta-
Mendota Canal levee road to its intersection with an unnamed unimproved 
road in section 35, T5S, R7E (Patterson Quadrangle); then
    (5) Proceed north and then east on the unimproved road for 
approximately 0.4 mile to its intersection with Baldwin Road and 
continue east on Baldwin Road approximately one mile, crossing Salado 
Creek, to the road's intersection with Ward Avenue at the eastern 
boundary line of section 36, T5S, R7E (Patterson Quadrangle); then,
    (6) Proceed north on Ward Avenue approximately 400 feet to its 
intersection with 2nd Lift drainage canal in section 31, T5S, R8E 
(Patterson Quadrangle); then
    (7) Follow the 2nd Lift canal southeast approximately 0.75 miles to 
its intersection with Elfers Road in section 31, T5S, R8E (Patterson 
Quadrangle); then
    (8) Proceed east on Elfers Road approximately for 0.45 miles, 
crossing onto the Crows Landing map, to its intersection with an 
unnamed, unimproved road on the south side of Elfers Road that also 
marks the western boundary of section 6, T6S, R8E (Crows Landing 
Quadrangle); then
    (9) Proceed straight south on the unimproved road approximately one 
mile to its intersection with Marshall Road in section 6, T6S, R8E 
(Crows Landing Quadrangle); then
    (10) Follow Marshall Road straight west 1.1 miles, crossing onto 
the USGS Patterson map, to its intersection with Ward Avenue in section 
6, T6S, R8E (Patterson Quadrangle); then
    (11) Proceed south 1.65 miles on Ward Avenue to its intersection 
with the California Aqueduct, then continue generally south 
approximately 1.4 miles along the aqueduct to its intersection with 
Fink Road in section 19, T6S, R8E (Patterson Quadrangle); then
    (12) Follow Fink Road northwest for approximately 0.5 miles, 
returning to the point of beginning at Interstate Highway 5 in section 
19, T6S, R8E (Patterson Quadrangle).

    Signed: September 25, 2003.
Arthur J. Libertucci,
Administrator.
[FR Doc. 03-27317 Filed 10-29-03; 8:45 am]
BILLING CODE 4810-31-P