[Federal Register Volume 70, Number 126 (Friday, July 1, 2005)]
[Rules and Regulations]
[Pages 38002-38004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-13040]



[[Page 38002]]

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

DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[T.D. TTB-29; Re: Notice No. ATF-967]
RIN 1513-AA45


Establishment of Alexandria Lakes Viticultural Area (2002R-152P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Department of the 
Treasury.

ACTION: Final rule; treasury decision.

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

SUMMARY: This Treasury decision establishes the Alexandria Lakes 
viticultural area in Douglas County, Minnesota. 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: August 1, 2005.

FOR FURTHER INFORMATION CONTACT: Lisa M. Gesser of the Regulations and 
Procedures Division, Alcohol and Tobacco Tax and Trade Bureau, P.O. Box 
128, Morganza, MD 20660; 301-290-1460.

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 product 
identity and prohibits the use of misleading information on those 
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.

Alexandria Lakes Petition and Rulemaking

    Robert G. Johnson, on behalf of Carlos Creek Winery, filed a 
petition proposing the establishment of Alexandria Lakes as an American 
viticultural area. The proposed viticultural area is located in Douglas 
County, Minnesota, and encompasses approximately 17 square miles. Six 
freshwater lakes surround the area.
    Below, we summarize the evidence presented in the petition.

Name Evidence

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

Boundary Evidence

    The boundaries of the Alexandria Lakes viticultural area, located 
in Douglas County, Minnesota, do not encompass the entire land mass 
known by that name. According to the petitioner, current viticulture 
and a unique microclimate limit the boundaries to those he proposed. 
The petitioner also indicates that certain geographical features help 
define the viticultural area's borders. We discuss these features 
further below.
Geologic Features
    The petitioner states that glacial activity, which occurred 10,000 
years ago at the end of the last ice age, formed the proposed 
Alexandria Lakes viticultural area. The soil is unique, because the 
glacial activity gouged it from the surrounding areas. The steep 
glacial erosion produced a geographically isolated area that the 
region's deepest glacial lakes surround. These lakes are not only the 
deepest, but also, by volume, the largest in the region.
    The petitioner states that the most abundant soils within in the 
proposed Alexandria Lakes viticultural area are of the Nebish-Beltrami 
association. This association is unique in that it makes up only 5 
percent of the soils in Douglas County. The U.S. Department of 
Agriculture Soil Conservation Service (USDASCS) defines this soil as 
deep and well to moderately well drained. The petitioner states that 
vegetation in the area survives on poorer soils and has broader root 
systems than vegetation in surrounding regions. As evidence of this, 
the petitioner refers to the high concentration of hardwood trees in 
the proposed Alexandria Lakes viticultural area.
    By contrast, the USDASCS defines the opposing lakeshores' soil, 
just west and north of the viticultural area, as belonging to the 
Waukon-Flom association, which they describe as poorly drained. The 
petitioner indicates that these are alluvial wash plains containing 
heavy lomis soils and low wetlands.
    The USDASCS defines the soil associations on the opposing shores 
just south and east of the proposed Alexandria Lakes viticultural area 
as belonging to the Arvilla-Sverdrup association. These soils formed in 
sand

[[Page 38003]]

or sand and gravel outwash material and are described as excessively 
drained.
Geographical Features
    According to the petitioner, the proposed Alexandria Lakes 
viticultural area's geographical features further distinguish it from 
surrounding regions. Six freshwater lakes almost completely surround 
the area. Lake Miltona, which is the largest lake in Douglas County, 
lies to the north. Lake Carlos, the largest lake in the Alexandria 
Lakes chain, according to the Alexandria Lakes Area Chamber of 
Commerce, lies to the east. Two small lakes, Lakes Louise and Alvin, 
and a medium-size lake, Lake Darling, are just south of the 
viticultural area boundary. Lake Ida, one of the largest lakes in the 
area, lies to the west.
Climate
    The petitioner provided climate data for the years 1992 through 
2001 from the University of Minnesota Meteorological Department's Web 
site. The data indicate that the Alexandria Lakes viticultural area 
averages less precipitation than the surrounding regions. The area's 
average precipitation is approximately 23.65 inches per year. By 
contrast, Osakis, Wadena, and Ashby Counties, which are located east, 
north, and west of the area, respectively, all received between 1 to 3 
more inches of precipitation per year. The petitioner states that the 
difference results from the seasonal southern winds that blow through 
the area and produce moisture updrafts that result in the formation of 
rain clouds generally north and east of the area.
    The proposed Alexandria Lakes viticultural area receives less 
annual snowfall than the surrounding regions, according to the 
petitioner. The area's average snowfall is 47.67 inches per year. By 
contrast, Osakis, Wadena, and Ashby all receive between 4 to 8 more 
inches of snowfall per year.
    According to the petitioner, ``the drier climate and lighter snow 
cover makes for lowered water tables, but watershed flowing [sic] from 
areas to the north and east replenish the water and maintain constant 
lake water levels.''
    In addition, the petitioner states that the Alexandria Lakes 
viticultural area has temperature averages that are generally warmer in 
the winter and cooler in the summer than those of adjacent areas.

Boundary Description

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

Maps

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

Notice of Proposed Rulemaking

    In response to the petition, our predecessor Agency, the Bureau of 
Alcohol, Tobacco and Firearms (ATF), published Notice No. 967 regarding 
the proposed Alexandria Lakes viticultural area in the Federal Register 
on January 23, 2003 (68 FR 3199). ATF received comments from 
representatives of two Minnesota vineyards that opposed the 
establishment of the Alexandria Lakes viticultural area. These two 
commenters provided no substantive support for their opposition to the 
petition.

TTB Finding

    After careful review of the petition and the comments received, 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 ``Alexandria Lakes'' viticultural area as described in 
this final rule.

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, ``Alexandria 
Lakes,'' is recognized as a name of viticultural significance. 
Consequently, wine bottlers using ``Alexandria Lakes'' 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 Flexibility Act

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

Drafting Information

    Lisa M. Gesser of the Regulations and Procedures Division drafted 
this final rule.

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

0
For the reasons discussed in the preamble, TTB amends title 27 CFR, 
chapter I, 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.


0
2. Amend subpart C by adding Sec.  9.177 to read as follows:

Subpart C--Approved American Viticultural Areas


Sec.  9.177  Alexandria Lakes.

    (a) Name. The name of the viticultural area described in this 
section is ``Alexandria Lakes''.
    (b) Approved maps. The appropriate maps for determining the 
boundary of the Alexandria Lakes viticultural area are four United 
States Geological Survey 1:24,000 scale topographic maps. They are 
titled:
    (1) Alexandria West, Minn., 1966, revised 1994.
    (2) Alexandria East, Minn., 1966, revised 1994.
    (3) Lake Miltona East, Minn., 1969.
    (4) Lake Miltona West, Minn., 1969.
    (c) Boundary. The Alexandria Lakes viticultural area is located in 
Douglas

[[Page 38004]]

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

    Signed: May 17, 2005.
John J. Manfreda,
Administrator.
    Approved: May 31, 2005.
Timothy E. Skud,
Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
[FR Doc. 05-13040 Filed 6-30-05; 8:45 am]
BILLING CODE 4810-31-P