[Federal Register Volume 69, Number 236 (Thursday, December 9, 2004)]
[Rules and Regulations]
[Pages 71372-71375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27016]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[TTB T.D.-20; Re: Notice No. 19]
RIN 1513-AA59


Establishment of the Yamhill-Carlton District Viticultural Area 
(2002R-216P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Final rule; Treasury decision.

-----------------------------------------------------------------------

SUMMARY: This Treasury decision establishes the Yamhill-Carlton 
District viticultural area in Yamhill and Washington Counties, Oregon. 
The new Yamhill-Carlton District viticultural area is entirely within 
the existing Willamette Valley viticultural area. We designate 
viticultural areas to allow vintners to better describe the origin of 
their wines and to allow consumers to better identify wines they may 
purchase.

DATES: Effective Date: February 7, 2005.

FOR FURTHER INFORMATION CONTACT: N. A. Sutton, Program Manager, 
Regulations and Procedures Division, Alcohol and Tobacco Tax and Trade 
Bureau, 925 Lakeville St., 158, Petaluma, CA 94952; telephone 
415-271-1254.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (the FAA 
Act, 27 U.S.C. 201 et seq.) requires that alcohol beverage labels 
provide the consumer with adequate information regarding a product's 
identity and prohibits 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. The Alcohol and Tobacco 
Tax and Trade Bureau (TTB) administers these regulations.
    Part 4 of the TTB regulations (27 CFR part 4) allows the 
establishment of definitive viticultural areas and the use of their 
names as appellations of origin on wine labels and in wine 
advertisements. Part 9 of the TTB regulations (27 CFR part 9) contains 
the list of approved viticultural areas.

Definition

    Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) 
defines a viticultural area for American wine as a delimited grape-
growing region distinguishable by geographical features, the boundaries 
of which have been recognized and defined in part 9 of the regulations. 
These designations allow vintners and consumers to attribute a given 
quality, reputation, or other characteristic of a wine made from grapes 
grown in an area to its geographic origin. The establishment of 
viticultural areas allows vintners to describe more accurately the 
origin of their wines to consumers and helps consumers to identify 
wines they may purchase. Establishment of a viticultural area is 
neither an approval nor an endorsement by TTB of the wine produced in 
that area.

Requirements

    Section 4.25(e)(2) of the TTB regulations outlines the procedure 
for proposing an American viticultural area and provides that any 
interested party may petition TTB to establish a grape-growing region 
as a viticultural area. Section 9.3(b) of the TTB regulations requires 
the petition to include--
     Evidence that the proposed viticultural area is locally 
and/or nationally known by the name specified in the petition;
     Historical or current evidence that supports setting the 
boundary of the proposed viticultural area as the petition specifies;
     Evidence relating to the geographical features, such as 
climate, soils, elevation, and physical features, that distinguish the 
proposed viticultural area from surrounding areas;
     A description of the specific boundary of the proposed 
viticultural area, based on features found on United States Geological 
Survey (USGS) maps; and
     A copy of the appropriate USGS map(s) with the proposed 
viticultural area's boundary prominently marked.

Yamhill-Carlton District Petition

General Background

    TTB received a petition from Alex Sokol-Blosser, Secretary of the 
North Willamette Valley AVA Group, on behalf of Yamhill-Carlton 
District winegrowers, proposing a new viticultural area to be called 
the ``Yamhill-Carlton District.'' Ken Wright was the author of the 
petition. The proposed Yamhill-Carlton District viticultural area is 
located about 35 miles southwest of Portland, Oregon, and 25 miles 
inland from the Pacific Ocean. The proposed area is wholly within 
Yamhill and Washington Counties in northwestern Oregon and is entirely 
within the existing Willamette Valley viticultural area (27 CFR 9.90). 
As of the 2002 Yamhill-Carlton District petition, there were 26 
vineyards within the area, with about 650 acres planted to grapes.
    The proposed Yamhill-Carlton District viticultural area is 
distinguished primarily by elevation, soil, and climate. Within the 
viticultural area's described boundary the defined viticultural area is 
limited to elevations between 200 feet and 1,000 feet, yielding size of 
8,500 acres. A precedent exists for elevation as a distinguishing 
factor with the establishment of the Mendocino Ridge viticultural area 
in Mendocino County, California, which includes land only at or above 
the 1,200-foot elevation (see 27 CFR 9.158 and T.D. ATF-392 at 62 FR 
55512, October 27, 1997).

Name Evidence

    This viticultural area is locally known as the ``Yamhill-Carlton 
District,'' according to the petition. The viticultural area surrounds 
the towns of Yamhill and Carlton, Oregon, which lie 3 miles apart along 
State Route 47 in Yamhill County. While the two towns operate 
independently, they have had strong ties since their separate 
incorporations over 100 years ago. The hyphenated expression of the 
cities' names has been used since 1853 with the establishment of the 
Yamhill-Carlton Pioneer Cemetery.
    In modern times, the Yamhill-Carlton Union High School has existed 
since 1955 and operates under the supervision of the Yamhill-Carlton 
School District. The two cities share a newspaper, the Carlton-Yamhill 
Review. The USGS Carlton map identifies the towns of Yamhill and 
Carlton and the Yamhill-Carlton Pioneer Cemetery.

Boundary Evidence

    Geographically, the Yamhill-Carlton District viticultural area is a 
south-facing bowl containing a series of horseshoe-shaped eroded hills 
composed of sedimentary parent material. To the area's west is the 
higher-elevation Coast Range, to the south is a cooler maritime-
influenced area, and to the east and north are natural lowland 
drainages. The area's western boundary is based on the change to 
sedimentary soils from the volcanic soils of the Coast Range. The 
higher elevations of the coastal hills to the west, generally ranging 
from 1,000-2,000 feet, are much cooler and have proven unsuitable for 
grape growing.

[[Page 71373]]

    At the viticultural area's southwestern boundary, the area's almost 
purely sedimentary parent material changes to a mix of basalt, slate, 
and sedimentary material. The southern boundary transitions to a valley 
floor that contains deep soils composed of Willamette silts. The frost-
prone nature of this lower elevation region, combined with its high 
soil permeability and fertility, makes it unsuitable for production of 
quality vinifera grape varieties.
    Abbey and Kuehne Roads serve as the Yamhill-Carlton District 
viticultural area's eastern border and mark the change from its 
sedimentary soils to the volcanic soils of the Dundee Hills. Millican 
Creek, a natural drainage between the viticultural area and the Dundee 
Hills, runs along this boundary line, flowing from north to south and 
eventually joining the Yamhill River near the town of Lafayette. 
Chehalem Creek's drainage system separates the Yamhill-Carlton District 
from Ribbon Ridge and the Chehalem Mountains to the northeast. The 
Yamhill-Carlton District's sedimentary soils are generally coarser in 
texture and subject to more faulting, uplifts, and erosion than the 
Ribbon Ridge sedimentary soils.
    The Wapato Lake Bed, a large, low drainage area on the northeastern 
boundary of the Yamhill-Carlton District, separates it from the 
Chehalem Mountains. The soils of these two viticultural regions are 
vastly different. The Yamhill-Carlton District has highly eroded 
sedimentary parent material, while the Chehalem Mountains, which lie 
across the Wapato Lake Bed, have soils formed from wind-blown mixed 
material and overlying basalt. The northern border of the Yamhill-
Carlton District viticultural area coincides with the low elevation 
Patton Valley with its predominately wind-blown soil.
    In modern times, two vineyards can lay claim to being first planted 
in the Yamhill-Carlton viticultural area. In 1974, Roy and Betty Wahle 
planted 8 acres of vinifera grapes, and, that same year, Pat and Joe 
Campbell of Elk Cove Vineyards also planted an 8-acre vineyard. In 
1977, Elk Grove Estate produced the first commercial wine in the 
Yamhill-Carlton area, and, as of 2002, there were 10 commercial 
wineries in the area.

Distinguishing Features

Soils
    The most significant feature separating the Yamhill-Carlton 
District viticultural area from nearby grape-growing regions is the 
area's predominant ancient sedimentary soils. Wines made from grapes 
grown in these sedimentary soils often contain distinct aromatic 
flavors (coffee, cocoa, anis, cedar, tobacco) not found in the same 
wine varietals grown in different soils, according to the petition. 
Also, the petition adds that the wines made from grapes grown in these 
ancient sedimentary soils are consistently lower in acid than wines 
made from grapes grown in basaltic or wind-blown soils.
    According to ``The Roadside Geology of Oregon'' (David Alt and 
Donald W. Hyndman), the soils of the Yamhill-Carlton District, formed 
in the Eocene era, are derived from marine sediments and ocean floor 
volcanic basalt that have a high water-holding capacity with moderate 
to high erosion levels. Alan Campbell of NW Vineyards prepared a 
vineyard soils map of Yamhill County, Oregon, which shows that the 
western hills of the Yamhill-Carlton District comprise two soils 
groups, Willakenzie on the lower elevation slopes and Peavine on the 
upper slopes. Peavine soils dominate the northern section of the 
viticultural area, while its eastern slopes comprise Wellsdale and 
Willakenzie soil series.
    The sedimentary soils of the Yamhill-Carlton District viticultural 
area are millions of years older than the soils in the surrounding 
areas. In contrast, younger volcanic-based soils formed in the Miocene 
Era dominate in the Eola Hills (south of the Yamhill-Carlton District), 
Chehalem Mountains (north and east of the Yamhill-Carlton District), 
and Dundee Hills (southeast of the Yamhill-Carlton District).
    The Eola Hills have predominately basalt soil series (Neika, 
Gelderman, Ritner), which are characterized by their low water 
capacity, slow permeability, and moderate erosion level. The Chehalem 
Mountains have a combination of Columbia River basalt, ocean 
sedimentation, and wind-blown loess derivation soil types. The Dundee 
Hills contain soils mainly derived from Columbia River basalt lavas 
(largely based on the Jory series), which are moderately fertile and 
well drained, with slight to moderate erosion levels. The Ribbon Ridge 
region, immediately east of the Yamhill-Carlton District viticultural 
area, also contains primarily sedimentary soils. However, these were 
formed in the Oligocene Era and are younger, finer, and more uniform 
than the sedimentary soils of the Yamhill-Carlton District.
    The floor of the Willamette Valley, at elevations of 200 feet or 
below, contains fine-grained soils deposited as a result of the 
Missoula floods, which occurred 12,000 years ago. These Willamette silt 
soils have greater depth, fertility, and water-holding capacity than 
soils of the viticultural area. The fertility and water-holding 
capacity of these low-elevation soils extends the vegetative period of 
the vine and delays the ripening of vines planted in the Willamette 
valley.
Elevation
    Within the Yamhill-Carlton District viticultural area's boundary, 
which is described in the regulatory text below, only land from 200 
feet to 1,000 feet in elevation is included within the viticultural 
area. At elevations below 200 feet, the low valley floors are prone to 
frost. Conversely, at elevations greater than 1,000 feet, the higher 
terrain is significantly cooler and lacks the necessary heat to 
properly ripen wine grapes.
Climate
    The climate of the Yamhill-Carlton District viticultural area is 
distinct from the surrounding areas. It is bordered on the west by the 
mountains of the Coast Range, which have a colder climate as measured 
in degree-days (a heat summation obtained by totaling each day's 
temperature above 50 degrees Fahrenheit during the growing season), and 
which are unsuitable for production of vinifera wine grape varietals. 
Also, temperatures in the Yamhill-Carlton District annually average 
18.3 days above 90[deg] F, while the Coast Range has only 2 such days, 
making it a significantly cooler growing area.
    The Coast Range is also wetter than the Yamhill-Carlton 
viticultural area. According to data obtained from the Oregon Climate 
Service, average rainfall for the Yamhill-Carlton District is 42 
inches, while the Coast Range receives between 80 and 110 inches per 
year.
    The regions immediately south of the Yamhill-Carlton area are 
influenced by the cooling effect of weather systems flowing inland from 
the Pacific Ocean through the Van Duzer Corridor, a mountain gap in the 
Coast Range, at Dallas, Oregon. This corridor funnels cooling marine 
summer breezes east toward Salem, which substantially lowers the 
average temperature during the growing season. This marine cooling 
effect quickly dissipates as it moves north towards the Yamhill-Carlton 
District.
    The Yamhill-Carlton District has a 42-inch average annual rainfall, 
as compared to 49.1 inches for Dallas, Oregon, to the south at the Van 
Duzer Corridor. Also, Dallas, Oregon, has 51 fewer degree-days than 
McMinnville, Oregon (which is at the southern border of the Yamhill-
Carlton District), and 186 fewer degree-days than Forest Grove, Oregon 
(which lies 6 miles north of the viticultural area).

[[Page 71374]]

    The Patton Valley, a large, low area just north of the Yamhill-
Carlton District, has an annual rainfall average difference of about 2 
inches when compared with the Yamhill-Carlton District viticultural 
area. However, the 30-year average temperature data show the area north 
of Patton Valley to have 135 more degree-days than the Yamhill-Carlton 
District.

Boundary Description

    See the narrative boundary description of the viticultural area in 
the regulatory text published at the end of this notice.

Maps

    The petitioner(s) provided the required maps, and we list them 
below in the regulatory text.

Notice of Proposed Rulemaking

    TTB published a notice of proposed rulemaking regarding the 
establishment of the Yamhill-Carlton District viticultural area in the 
October 7, 2003, Federal Register as Notice No. 19 (68 FR 57845). In 
that notice, TTB requested comments by December 8, 2003, from all 
interested persons. We received one comment supporting the 
establishment of the Yamhill-Carlton District viticultural area.
    After careful review, TTB finds that the evidence submitted with 
the petition supports the establishment of the proposed viticultural 
area. Therefore, under the authority of the Federal Alcohol 
Administration Act and part 4 of our regulations, we establish the 
``Yamhill-Carlton District'' viticultural area in Oregon, effective 60 
days from this document's publication date.

Impact on Current Wine Labels

    Part 4 of the TTB regulations prohibits any label reference on a 
wine that indicates or implies an origin other than the wine's true 
place of origin. With the establishment of this viticultural area and 
its inclusion in part 9 of the TTB regulations, its name, ``Yamhill-
Carlton District,'' is recognized as a name of viticultural 
significance. Consequently, wine bottlers using ``Yamhill-Carlton 
District'' in a brand name, including a trademark, or in another label 
reference as to the origin of the wine, must ensure that the product is 
eligible to use the viticultural area's name as an appellation of 
origin.
    For a wine to be eligible to use as an appellation of origin the 
name of a viticultural area specified in part 9 of the TTB regulations, 
at least 85 percent of the grapes used to make the wine must have been 
grown within the area represented by that name, and the wine must meet 
the other conditions listed in 27 CFR 4.25(e)(3). If the wine is not 
eligible to use the viticultural area name as an appellation of origin 
and that name appears in the brand name, then the label is not in 
compliance and the bottler must change the brand name and obtain 
approval of a new label. Similarly, if the viticultural area name 
appears in another reference on the label in a misleading manner, the 
bottler would have to obtain approval of a new label.
    Different rules apply if a wine has a brand name containing a 
viticultural area name that was used as a brand name on a label 
approved before July 7, 1986. See 27 CFR 4.39(i)(2) for details.

Regulatory Analyses and Notices

Regulatory Flexibility Act

    We certify that this regulation will not have a significant 
economic impact on a substantial number of small entities. This 
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 rule is not a significant regulatory action as defined by 
Executive Order 12866 (58 FR 51735). Therefore, it requires no 
regulatory assessment.

Drafting Information

    N.A. Sutton of the Regulations and Procedures Division drafted this 
document.

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

    For the reasons discussed in the preamble, we amend 27 CFR, chapter 
1, part 9 as follows:

PART 9--AMERICAN VITICULTURAL AREAS

0
1. The authority citation for part 9 continues to read as follows:

    Authority: 27 U.S.C. 205.

Subpart C--Approved American Viticultural Areas

0
2. Amend subpart C by adding Sec.  9.183 to read as follows:


Sec.  9.183  Yamhill-Carlton District.

    (a) Name. The name of the viticultural area described in this 
section is ``Yamhill-Carlton District''.
    (b) Approved maps. The appropriate maps for determining the 
boundary of the Yamhill-Carlton District viticultural area are eight 
1:24,000 Scale U.S.G.S. topography maps. They are titled:
    (1) Gaston Quadrangle, Oregon, 1956, revised 1992;
    (2) Laurelwood Quadrangle, Oregon, 1956, revised 1992;
    (3) Dundee Quadrangle, Oregon, 1956, revised 1993;
    (4) Carlton Quadrangle, Oregon--Yamhill Co., 1957, revised 1992;
    (5) Fairdale Quadrangle, Oregon-Yamhill Co., 1979;
    (6) McMinnville Quadrangle, Oregon--Yamhill Co., 1957, revised 
1992;
    (7) Muddy Valley Quadrangle, Oregon--Yamhill Co., 1979, revised 
1992; and
    (8) Turner Creek Quadrangle, Oregon, 1979.
    (c) Boundary. The Yamhill-Carlton District viticultural area is 
located in Yamhill and Washington Counties, Oregon, and is entirely 
within the Willamette Valley viticultural area. The Yamhill-Carlton 
District viticultural area is limited to lands at or above 200 feet in 
elevation and at or below 1,000 feet in elevation within its boundary, 
which is described as follows--
    (1) The point of beginning is on the Gaston map in the village of 
Gaston at the intersection of Gaston Road East (E. Main Street within 
Gaston) and the 200-foot elevation line, approximately 225 feet west of 
State Route 47, section 49, T1S, R4W. From this beginning point, 
proceed southerly and then southeasterly about 8.15 miles along the 
meandering 200-foot elevation line (crossing to and from the Laurelwood 
map in sections 12 and 13, T2S, R4W, and then returning to the 
Laurelwood map) to the 200-foot elevation line's intersection with 
Spring Hill Road, section 58, T2S, R3W (Laurelwood Quadrangle); then
    (2) Proceed south 1.1 miles on Spring Hill Road, which becomes 
North Valley Road at Laughlin Road, crossing onto the Dundee map, to 
the road's intersection with the 200-foot elevation line, section 30, 
T2S, R3W (Dundee Quadrangle); then
    (3) Proceed northerly then southerly for approximately 5 miles 
along the 200-foot elevation line, crossing over to and back from the 
Laurelwood map, to the 200-foot elevation line's intersection with 
State Route 240, section 47, T3S, R3W (Dundee Quadrangle); then

[[Page 71375]]

    (4) Proceed straight west for 0.2 mile on State Route 240 to its 
intersection with Kuehne Road at the 207-foot benchmark, section 47, 
T3S, R3W (Dundee Quadrangle); then
    (5) Proceed southerly for about 1.9 miles on Kuehne Road to its 
intersection with Abbey Road, section 50, T3S, R3W (Dundee Quadrangle); 
then
    (6) Proceed southerly 1.4 miles on Abbey Road to its intersection 
with the 200-foot elevation line, north of the 174-foot elevation 
point, section 52, T3S, R3W (Dundee Quadrangle); then
    (7) Proceed southwesterly for about 2.1 miles along the meandering 
200-foot elevation line to Lafayette Cemetery on the Carlton map in 
section 1, T4S, R4W, and turning northerly along the 200-foot elevation 
line, continue along the elevation line for about 6 miles, crossing to 
and from the Dundee map, to the 200-foot elevation line's intersection 
with Stag Hollow Road, north of Hendricks Road and 190-foot elevation 
point, section 24, T3S, R4W (Carlton Quadrangle); then
    (8) Continue westerly along the meandering 200-foot elevation line, 
turning northeasterly as the elevation line passes through the Carlton 
Lakes State Wildlife Refuge, then westerly as the elevation line 
crosses Stag Hollow Creek in section 47, T3S, R4W, then southerly as 
the elevation line crosses the North Yamhill River on the Fairdale map 
in section 43, T2S, R5W, then, returning to the Carlton map, continue 
southerly on the 200-foot elevation line to its intersection with 
Meadow Lake Road near the southwest corner of section 55, T3S, R4W 
(Carlton Quadrangle);
    (9) Continue westerly along the meandering 200-foot elevation line, 
crossing onto the Fairdale map, to the elevation line's intersection 
with the 123[deg]17'30'' longitude line (north of Panther Creek) in the 
western extension of section 22, T3S, R5W (Fairdale Quadrangle); then
    (10) Proceed 0.2 mile straight south along the 123[deg]17'30'' 
longitude line, crossing Panther Creek, to the line's intersection with 
the 200-foot elevation line south of the creek in the western extension 
of section 22, T3S, R5W (Fairdale Quadrangle); then
    (11) Proceed easterly and then southeasterly along the meandering 
200-foot elevation line, crossing onto the Carlton map, then the 
McMinnville map, to the elevation line's third intersection with an 
unnamed light-duty road, southwest of the Henderson Benchmark in 
section 87, T4S, R4W (McMinnville Quadrangle);
    (12) Continue southerly and then westerly along the meandering 200-
foot elevation line, crossing onto the Muddy Valley map, to the 
elevation line's intersection with Baker Creek Road (very near Baker 
Creek Road's intersection with High Heaven Road) in section 54, T4S, 
R5W (Muddy Valley Quadrangle); then
    (13) Proceed west-southwest for 0.8 mile on Baker Creek Road to its 
intersection with the 123[deg]17'30'' longitude line in Happy Valley, 
section 54, T4S, R5W (Muddy Valley Quadrangle); then
    (14) Proceed straight north 13.4 miles on the 123[deg]17'30'' 
longitude line, passing through the Fairdale map and crossing onto the 
Turner Creek map, to the longitude line's intersection with the 1,000-
foot elevation line in the northwestern quadrant of section 10, T2S, 
R5W, approximately one mile diagonally northwest of the footbridge in 
Menefee Park (Turner Creek Quadrangle); then
    (15) Proceed easterly and then northerly for 4.1 miles along the 
meandering 1,000-foot elevation line to its intersection with the 
Washington-Yamhill County line at northern boundary of section 3, T2S, 
R5W (also the common T1S/T2S boundary line) (Turner Creek Quadrangle); 
then
    (16) Proceed straight east 3.9 miles along the Washington-Yamhill 
County line, crossing onto the Gaston map, to the county line's 
intersection with South Road, just east of Mt. Richmond Road, section 
60, T2S, R4W (Gaston Quadrangle); then
    (17) Proceed east-northeast for 1.8 miles on South Road to its 
intersection with the 200-foot elevation line, 0.3 mile west of the 
Gaging Station, section 34, T1S, R4W (Gaston Quadrangle); then
    (18) Proceed easterly 1.9 miles along the 200-foot elevation line 
and return to the beginning point within the village of Gaston.

    Signed: November 1, 2004.
Arthur J. Libertucci,
Administrator.

    Approved: November 18, 2004.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 04-27016 Filed 12-8-04; 8:45 am]
BILLING CODE 4810-31-P