[Federal Register Volume 70, Number 11 (Tuesday, January 18, 2005)]
[Rules and Regulations]
[Pages 2801-2805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-912]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[TTB T.D.-22; Re: Notice No. 12]
RIN 1513-AA63
Establishment of the McMinnville Viticultural Area (2002R-217P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau (TTB), Treasury.
[[Page 2802]]
ACTION: Final rule; Treasury decision.
-----------------------------------------------------------------------
SUMMARY: This Treasury decision establishes the McMinnville
viticultural area in Yamhill County, Oregon. The new McMinnville
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.
EFFECTIVE DATE: March 21, 2005.
FOR FURTHER INFORMATION CONTACT: Jennifer Berry, Regulations and
Procedures Division, Alcohol and Tobacco Tax and Trade Bureau, P.O. Box
18152, Roanoke, VA 24014; telephone (540) 344-9333.
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.
McMinnville Viticultural Area Petition
In 2002, Mr. Kevin Byrd, of Youngberg Hill Vineyards in
McMinnville, Oregon, filed a petition requesting the establishment of a
viticultural area to be called ``McMinnville'' in Yamhill County,
Oregon. 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. The McMinnville area
is entirely within the existing Willamette Valley viticultural area (27
CFR 9.90). According to the petitioner, there were 14 wineries and 523
acres planted to vines within the proposed McMinnville viticultural
area.
Notice of Proposed Rulemaking and Comments Received
TTB published Notice No. 12 regarding the proposed McMinnville
viticultural area in the June 27, 2003, Federal Register (68 FR 38248).
Three comments were received in response to this notice. Two of these
were from Arthur and Linda Lindsay of Mystic Mountain Vineyards in
McMinnville, Oregon. The Lindsays disagreed with the exclusion of land
above 800 feet in elevation from the McMinnville viticultural area as
the petitioner originally proposed. The third comment was from the
petitioner, Kevin Byrd, who asked that TTB amend the originally
petitioned boundaries to eliminate the 800-foot elevation restriction,
stating that he agreed with the information presented by the Lindsays
in their comments. These comments are addressed in more detail below in
the ``Boundary Evidence'' discussion.
Below, we summarize the evidence presented in the petition.
Name Evidence
The viticultural area is named for the city of McMinnville, the
county seat of Yamhill County, which is located at the northeastern
border of the viticultural area. Mr. Byrd stated that the area is
considered part of greater McMinnville and noted 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, consumers know McMinnville as a wine-
producing region. 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:
``Nestled in the heart of Oregon's beautiful wine country,
McMinnville is Oregon at its best.'' (See http://www.mcminnville.org/welcome.html.)
``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.)
``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 www.el.com/to/mcminnville.)
In addition, the petitioner noted that McMinnville is the home of
the International Pinot Noir Celebration, held every July since 1987 at
the Linfield College campus.
Boundary Evidence
The McMinnville viticultural area's boundaries encompass Gopher
Valley,
[[Page 2803]]
Dupee Valley, Muddy Valley, and the surrounding hills, all
geographically part of the eastern foothills of the Coast Range. All
land within the viticultural area is above 200 feet in elevation.
According to the petitioner, this higher elevation causes the
McMinnville viticultural area to have distinctive soils and climate
when compared to other, lower parts of the Willamette Valley.
The petitioner stated that below the 200-foot elevation line the
Willamette silt-based soils create growing conditions substantially
different from those in the proposed viticultural area. The greater
depth, water-holding capacity, and fertility of soils at these lower
elevations extends the vegetative period of the vine and delays
ripening of vineyards planted at those elevations. The soils of the
proposed viticultural area are described in greater detail in the
following section.
In addition, the petitioner noted that elevations below 200 feet
are more prone to frost when compared to the higher elevations.
Initially, the petitioner proposed to exclude from the McMinnville
viticultural area any land above 800 feet in elevation falling within
the proposed boundaries, due to climatic differences with land below
that elevation. In particular, the petitioner stated that land above
800 feet within the proposed McMinnville viticultural area experiences
fewer degree growing days than lower elevations do, thus preventing the
reliable ripening of wine grapes. Because of the unusual nature of the
boundary proposal, TTB specifically asked in Notice No. 12 for comments
regarding the proposed McMinnville viticultural area boundaries.
Mystic Mountain Vineyards submitted two comments disagreeing with
the proposed elevation limitation--one signed by Linda Lindsay, the
other by Arthur Lindsay. Mr. Lindsay noted that he and his wife own a
vineyard within the proposed McMinnville viticultural area's boundary,
but at an elevation of 1,200 feet. He stated that their records, dating
back to 1999, show that their vineyard's degree growing days are
sufficient to ripen their yearly crop. While Mr. Lindsay acknowledged
that their vineyard's daily high temperatures are lower than those of
vineyards at lower elevations, he argued that their nighttime
temperatures are generally higher than those at lower elevations during
the growing season. He pointed out that since degree growing days are
calculated on a 24-hour basis, the degree growing days for their
vineyard's elevation are as high as those found at lower elevations.
The petitioner, Kevin Byrd, wrote to request that TTB amend the
McMinnville viticultural area's proposed boundary to eliminate the 800-
foot elevation restriction. He stated that he researched the
information provided by Mr. Lindsay and found that the degree growing
days for the higher elevations within the McMinnville viticultural area
are indeed comparable to those at lower elevations. He also noted that
the Lindsays' vineyard has a history of producing quality grapes.
TTB believes that the information presented by the commenters
provides an adequate basis for amending the McMinnville viticultural
area boundary originally proposed in Notice No. 12. Accordingly, the
proposed restriction limiting the McMinnville viticultural area to land
below 800 feet within the described boundary has been eliminated in
this final rule. All land within the described boundary is included
within the McMinnville viticultural area regardless of elevation.
Distinguishing Features
The petitioner asserted that the geographic and climatic features
of the McMinnville viticultural area distinguish it from surrounding
areas of the Willamette Valley.
Temperature and Precipitation
According to the petitioner, the McMinnville 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.
The submitted data show that McMinnville is, on average, warmer and
drier than Dallas and Scoggins Dam. McMinnville averaged 2,178 degree
growing days above 50 degrees (each degree that a day's mean
temperature is above 50 degrees F counts as one degree day) during the
growing season for the years 1971-2000, with average yearly
precipitation of 41.66 inches. Dallas, for the same period, averaged
2,116 degree growing days above 50 degrees, with precipitation of 49.13
inches. Scoggins Dam, for the period, averaged 1,974 degree growing
days above 50 degrees, with precipitation of 50.68 inches.
The petitioner explained that cooler and wetter conditions south of
McMinnville viticultural area 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 stated 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
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. Several types of shallow (less than 40
inches deep) silty clay and clay loams that exhibit low total available
moisture characterize the McMinnville viticultural area. 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 McMinnville viticultural 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 McMinnville area
(within another proposed viticultural area named Yamhill-Carlton
District), a greater percentage of the soils are of the Woodburn-
Willamette association. These soils are of greater depth (60 inches)
and have higher available moisture (12 to 13 inches). The Woodburn-
Willamette soils also predominate to the south and southwest of the
McMinnville area.
The petitioner stated that the most distinctive geological feature
within the McMinnville viticultural area is the Nestucca Formation, a
2,000-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
[[Page 2804]]
viticultural area is significantly different from that of 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 (0.9 mg/L vs. 3.8 mg/L), and
greater dissolved boron (230 [mu]g/L vs. 20 [mu]g/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 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.
TTB Finding
After careful review of the petition and the comments, TTB finds
that the evidence submitted 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 ``McMinnville'' viticultural area in Yamhill County, 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,
``McMinnville,'' is recognized as a name of viticultural significance.
Consequently, wine bottlers using ``McMinnville'' 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
Jennifer Berry of the Regulations and Procedures Division drafted
this document.
List of Subjects in 27 CFR Part 9
Wine.
The Final Rule
0
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. Subpart C is amended by adding Sec. 9.181 to read as follows:
Sec. 9.181 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) 1:24,000 scale topographic maps titled:
(1) McMinnville, Oregon, 1957, revised 1992;
(2) Muddy Valley, Oregon, 1979, revised 1992;
(3) Stony Mountain, Oregon, 1979, revised 1992;
(4) Sheridan, Oregon, 1956, revised 1992; and
(5) Ballston, Oregon, 1956, revised 1992.
(c) Boundary. The McMinnville viticultural area is located in
Yamhill County, Oregon, and is entirely within the Willamette Valley
viticultural area. The boundary of the McMinnville viticultural area is
as described below--
(1) The beginning point is on the McMinnville, Oregon, map where
the 200-foot contour line intersects the common boundary between
section 13, T4S, R5W, and section 18, T4S, R4W. From this point follow
the meandering 200-foot contour line westerly for about 2 miles to its
intersection with Baker Creek Road in section 54, T4W, R5W, on the
Muddy Valley map;
(2) Then follow Baker Creek Road west about 2 miles through Happy
Valley to the road's intersection with Power House Hill Road in section
50, T4S, R5W (Muddy Valley map);
(3) Proceed southwest on Power House Hill Road for about 1.4 miles
to its intersection with Peavine Road in section 17, T4S, R5W (Muddy
Valley map);
(4) Follow Peavine Road west and then northwest about 1.5 miles to
its intersection with Gill Creek in section 18, T4S, R5W (Muddy Valley
map);
(5) Follow Gill Creek southerly (downstream) for about 0.6 miles to
its intersection with the 800-foot contour line in section 18, T4S,
R5W, on the Muddy Valley map;
(6) From Gill Creek, follow the meandering 800-foot contour line
westerly, crossing Deer Creek in section 14, T4S, R6W, on the Stony
Mountain map, and, crossing back and forth four times between the Stony
Mountain and Muddy Valley maps in section 24, T4S, R6W, continue
southwesterly to the contour line's intersection with Thomson Mill Road
in section 27, T4S, R6W, on the Stony Mountain map;
(7) Continue to follow the meandering 800-foot contour line
southwesterly, crossing Cronin and Beaver Creeks, to the 800-foot
contour line's intersection with Rock Creek Road in section 46, T5S,
R6W, on the Stony Mountain map;
(8) Then follow Rock Creek Road south for about 5 miles to its
intersection with the West Valley Highway in section 44, T5S, R6W, on
the Sheridan map, and continue about
[[Page 2805]]
200 feet due south in a straight line to from that intersection to the
200-foot contour line, just north of the Yamhill River (Sheridan map);
(9) Then follow the meandering 200-foot contour line easterly,
passing north of most of the village of Sheridan, crossing onto the
Ballston map, and continue easterly and then northerly along the 200-
foot contour line to its first intersection with Christensen Road at
the common boundary between sections 27 and 34, T5S, R5W (Ballston
map);
(10) Continue to follow the 200-foot contour line westerly and then
northerly, passing onto the Muddy Valley map and then the Stony
Mountain map, to the contour line's intersection with Deer Creek in
section 64, T5S, R6W (Stony Mountain map);
(11) Cross Deer Creek and follow the 200-foot contour line
southeasterly, crossing Dupree Creek in section 64, T5S, R6W, on the
Muddy Valley map, and, crossing onto the Ballston map, continue
southerly and then easterly along the 200-foot contour line to its
intersection with State Route 18 at the hamlet of Bellevue, section 28,
T5S, R5W (Ballston map);
(12) Continue westerly then northerly along the meandering 200-foot
contour line, crossing Latham Road at the northern boundary of section
53, T5S, R5W, and, crossing onto the Muddy Valley map, continue
northerly along the 200-foot contour line to its intersection with
Muddy Creek in section 40, T5S, R5W (Muddy Valley map);
(13) Crossing Muddy Creek, follow the 200-foot contour line
southerly, then easterly, and then northerly to its intersection with
Peavine Road in the western extension of section 47, T4S, R5W (Muddy
Valley map);
(14) From Peavine Road, continue northeasterly along the meandering
200-foot contour line, crossing Cozine Creek in section 46, T4S, R5W,
and, crossing onto the McMinnville map, follow the 200-foot contour
line across Redmond Hill Road in section 44, T4S, R5W, and return to
the point of beginning (McMinnville map)
Signed: November 22, 2004.
Arthur J. Libertucci,
Administrator.
Approved: December 9, 2004.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 05-912 Filed 1-14-05; 8:45 am]
BILLING CODE 4810-31-P