[Federal Register Volume 70, Number 126 (Friday, July 1, 2005)]
[Rules and Regulations]
[Pages 37998-38002]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-13042]


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

DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[T.D. TTB-30; Re: Notice No. 28]
RIN 1513-AA79


Establishment of the High Valley Viticultural Area (2003R-361P)

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

ACTION: Final rule; Treasury decision.

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

SUMMARY: This Treasury decision establishes the 14,000-acre High Valley 
viticultural area in Lake County, California. 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: Nancy Sutton, Regulations and 
Procedures Division, Alcohol and Tobacco Tax and Trade Bureau, 925 
Lakeville St., No. 158, Petaluma, California 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;

[[Page 37999]]

     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.

High Valley Petition and Rulemaking

General Background

    TTB received a petition from Kevin Robinson of the Brassfield 
Estate Winery proposing a new viticultural area to be called ``High 
Valley'' in Lake County, California. Located above the eastern shore of 
Clear Lake near the village of Clearlake Oaks, about 85 miles north of 
San Francisco, the proposed 14,000-acre viticultural area has 
approximately 1,000 acres planted to vines.
    The proposed High Valley viticultural area boundary encompasses the 
largely enclosed, elongated bowl-shaped High Valley basin and the 
surrounding mountain ridges. The area measures about 8.5 miles east-to-
west and 3 miles north-to-south, with elevations between 1,600 and 
about 3,000 feet. Early viticultural efforts in the High Valley area 
ceased with Prohibition, and walnuts, prunes, green beans, and other 
crops became the area's popular agricultural commodities. Approximately 
25 very old ``centennial vines'' (possibly zinfandel) still exist on 
the southeast ridge above the valley floor.
    Below, we summarize the evidence presented in the petition.

Name Evidence

    ``High Valley'' is the officially recognized name of the elongated 
bowl-shaped valley encompassed by the proposed High Valley viticultural 
area, as shown on the Clearlake Oaks, California, USGS Quadrangle map 
and on the California State Automobile Association's ``Mendocino and 
Sonoma Coast Region'' map of February 1999. Both maps also show High 
Valley Ridge and High Valley Road within the proposed viticultural 
area's boundary. The petition states that ``High Valley'' is the 
popularly and historically recognized name for the valley. In addition, 
the 2002 SBC Pacific Bell Directory lists three local businesses that 
incorporate ``High Valley'' into their name, and ``High Valley 
Memories,'' a 1960 manuscript by Tom Butler describing the valley's 
history, is on file at the Lake County Historical Courthouse Museum.

Boundary Evidence

    High Valley is enclosed by surrounding mountain ridges, which 
topographically isolate High Valley from the surrounding region and 
form the valley's natural boundary. The proposed High Valley 
viticultural area boundary largely follows these surrounding ridges. 
The ridges surrounding High Valley create a mountainside grape-growing 
environment not found beyond the boundaries of the viticultural area. 
The majority of the High Valley area's vineyards are planted on these 
highland slopes, with the remainder on the western valley floor.
    The floor of High Valley has a minimum elevation of 1,600 feet, 
which is higher than other nearby valleys and flats. Based on the 
relevant USGS maps, the table below shows the lower elevations found in 
the valleys and flats nearest to the proposed High Valley viticultural 
area.

------------------------------------------------------------------------
                                                              Elevation
         Geographic  region            Direction from High    in feet on
                                         Valley boundary       USGS map
------------------------------------------------------------------------
Clear Lake..........................  West.................        1,326
Long Valley.........................  North................        1,200
North Fork of Cache Creek...........  East.................        1,100
Clearlake Oaks Township.............  South................        1,400
------------------------------------------------------------------------

Distinguishing Features

Topography
    High Valley is an elongated, bowl-shaped basin, which is largely 
enclosed and topographically isolated from surrounding regions by high 
surrounding mountain ridges. As shown on USGS maps, the valley floor is 
generally between 1,700 and 1,800 feet in elevation, while, to the 
north, High Valley Ridge rises to over 3,000 feet. To the east, south, 
and west, the surrounding ridges average between 2,200 and 2,400 in 
elevation. The lowest elevation within the High Valley viticultural 
area is at the 1,600-foot contour line, which forms part of the area's 
southern boundary.
    The only drainage outlet from High Valley is Schindler Creek, which 
flows south through a gap in the mountain ridge between the valley and 
Clear Lake on the viticultural area's southern side. In addition to its 
topographic isolation, High Valley has an east and west orientation, 
which is rarely found in the northern California Coastal Ranges. This 
orientation contributes to some of the distinctive climatic features of 
the High Valley area.
Climate
    The proposed High Valley viticultural area's climate is cooler than 
the surrounding viticultural areas of Lake County, according to weather 
station data collected from several locations within the High Valley 
viticultural area, including vineyards on the area's southeastern and 
western mountain ridges, and on the eastern and western portions of the 
valley floor. The Winkler degree-day heat summation method of climate 
classification classifies High Valley as a Region 3 climate and 
occasionally as a cooler Region 2, depending upon the year and a 
vineyard's location within the area. (Each degree of a day's mean 
temperature that is above 50 degrees F, which is the minimum 
temperature required for grapevine growth, is counted as one degree 
day; see ``General Viticulture,'' Albert J. Winkler, University of 
California Press, 1975.) Amber Knolls, a grape-growing region 
approximately 5 miles west of High Valley's boundary line, has 
consistently warmer growing season temperatures, and is frequently a 
Region 4 climate in the degree-day classification system.
    High Valley's cool growing climate results from the valley's east-
west orientation, the surrounding ridge topography, and the perpetual 
``wind machine'' generated from the Clear Lake basin. The high east-
west ridges above the valley trap the cooling afternoon breezes as they 
blow in from the Clear Lake basin. Also, the cooling mountain-valley 
winds from the higher northern elevations of the Mendocino National 
Forest drift down the ridges to the valley floor. The High Valley area 
is one of the coolest grape-growing regions in Lake County, with a 
frost season that frequently extends into June. The grape varietals 
planted in the High Valley area reflect this cooler and shorter growing 
season.
    The petition noted the wide variation in annual precipitation in 
High Valley between the years 2000 and May 2003, and did not provide 
extensive rainfall data to show it as a distinguishing viticultural 
factor. The High Valley area received 18 inches of precipitation in 
both 2000 and 2001, 29 inches in 2002, and 35 inches from January 
through May 2003. In recent years, other Lake County grape-growing 
regions received more precipitation than the High Valley viticultural 
area, and the petition listed

[[Page 38000]]

the following average precipitation amounts: Red Hills, 24 to 40 
inches; Kelseyville, 46 inches; and the Putah Creek basin, 47 inches.
Geology
    Originally a small east-west trending fault basin with drainage to 
the east, volcanic activity altered High Valley's shape and created a 
series of high ridges along its eastern side, forming the valley's 
largely enclosed basin and redirecting the valley's drainage southward 
into Clear Lake. This volcanic activity also created Tule Lake, a small 
lake on the valley's central floor, as well as Round Mountain, once an 
active volcanic cinder cone rising 400 feet above the northern valley 
floor.
    The dominant rock types in the proposed High Valley viticultural 
area are Jurassic sedimentary rocks of the Franciscan Complex, basalt 
flows, and Quaternary volcanic deposits. The Franciscan Complex forms 
the base material and most of the exposed rock in the southern ridges 
and western portions of High Valley, while the Quaternary volcanics 
overlay the basalts found throughout the valley's eastern half. Round 
Mountain is a prominent High Valley feature of the Quaternary 
volcanics.
Soils
    The two primary soil types of High Valley are weathered volcanic 
residue and Franciscan Complex weathered sandstone, shale, or phyllitic 
rocks. The east side of the area contains soils derived primarily from 
volcanics, while the west side contains soils from Jurassic to 
Cretaceous sedimentary and phyllitic source material.
    The four basic soil formations within the proposed High Valley 
viticultural area include: (1) The Franciscan Hills along the area's 
southern and western boundaries, (2) the alluvial basin of High Valley, 
(3) the alluvial terrace along the southeast boundary, and (4) the 
volcanic ridges along the area's northeastern boundary near Round 
Mountain.
    Wolfcreek loam soil, a very deep well-drained clay to sandy loam 
with moderately slow permeability, covers most of the High Valley 
floor. The eastern half of the proposed High Valley viticultural area 
contains Konocti variants, Konocti, Hambright, Benridge, and Sodabay 
Series soils. The Maymen, Hopland, and Mayacama Series soils dominate 
the southeast region of the High Valley area. The western hills and 
ridges contain primarily Millsholm, Bressa, Hopland, Estel, and Maymen 
Series soils.
    While the High Valley soils are permeable in mild and moderately-
warm to warm temperatures, soils in the nearby Big Valley allow only 
moderately-warm to warm temperature permeation. The soils of High 
Valley's slopes and ridges permit excellent drainage, unlike Big 
Valley's less favorable soil drainage characteristics. Further, the 
vine-planted slopes of the High Valley area incline about 30 percent, 
comparatively steeper than the 0 to 2 percent incline of Big Valley 
vineyards.
Water Resources
    The High Valley area contains aquifers and natural springs to meet 
its irrigation needs. The limited capability of Schindler Creek to take 
runoff out of High Valley contributes to the valley's unusually high 
water table. The springs of the valley's western and eastern mountain 
slopes and canyons flow down to the valley floor, which also contains 
springs and numerous ponds.

Overlapping Boundaries

    The proposed High Valley viticultural area lies almost entirely 
within the established Clear Lake viticultural area (27 CFR 9.99), 
which surrounds the large lake of that name in Lake County, California. 
In turn, the Clear Lake viticultural area is entirely within the 
larger, multi-county North Coast viticultural area (27 CFR 9.30). To 
encompass the mountain ridges surrounding High Valley, a small east-
northeast portion of the proposed High Valley viticultural area extends 
beyond the common eastern boundary of the two larger areas. The 
following table shows the overlapping relationships by acreage amount 
and percentage:

------------------------------------------------------------------------
                                                              Percentage
                                                 Acreage of    of High
            Viticultural area name              area within  Valley area
                                                High Valley    in this
                                                    area         area
------------------------------------------------------------------------
North Coast...................................       11,651         81.6
Clear Lake....................................       11,520         80.7
Outside any viticultural area.................        2,622         18.4
------------------------------------------------------------------------

    The North Coast and Clear Lake viticultural areas share a portion 
of their east boundary line, which runs diagonally northwest to 
southeast through the eastern portion of the proposed High Valley 
viticultural area. This common boundary line extends straight northwest 
from the northwest corner of section 1, T13N, R7W, on the Benmore 
Canyon map, which is outside the High Valley southeastern boundary 
line, to Round Mountain in section 21, T14N, R7W, on the Clearlake Oaks 
map. At the peak of Round Mountain, this shared boundary line divides. 
The North Coast viticultural area boundary line runs straight north-
northwest, while the Clear Lake viticultural area extends straight 
northwest. TTB has determined that the difference in overlapping 
acreage between the two viticultural areas, above Round Mountain, is 
less than 1 percent when overlaid with the proposed High Valley 
viticultural area boundary lines.
    To the east of the North Coast and Clear Lake viticultural areas' 
common boundary line, the High Valley viticultural area's east and 
northeast sections extend beyond any established viticultural area. 
This 2,622-acre, predominantly mountainous region includes the eastern 
ridges that surround High Valley, according to the USGS maps. The east 
side of Round Mountain and a small portion of the valley floor also lie 
outside the North Coast and Clear Lake viticultural areas.
    This High Valley eastern area, beyond the North Coast and Clear 
Lake boundary line overlap, possesses distinguishing geographical 
features similar to the High Valley's western region. The portion of 
the High Valley area outside the established Clear Lake and North Coast 
viticultural areas contains the mountainous terrain and high ridges 
that make High Valley an enclosed basin with distinct watershed 
boundaries. The valley floor to the east of Round Mountain is the 
natural extension of the valley, with similar elevations and 
topography, as noted on the USGS maps. Soils derived primarily from 
basalts occur throughout the High Valley area from Schindler's Creek 
east to the boundary line.

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 High Valley viticultural area in the Federal 
Register as Notice No. 28 on January 24, 2005 (70 FR 3328). In that 
notice, TTB requested comments by March 25, 2005, from all interested 
persons. TTB received no comments regarding the proposed High Valley 
viticultural area in response to Notice No. 28.

[[Page 38001]]

TTB Finding

    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 
``High Valley'' viticultural area in Lake County, California, 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, ``High 
Valley,'' is recognized as a name of viticultural significance. 
Consequently, wine bottlers using ``High Valley'' 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 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

    Nancy Sutton of the Regulations and Procedures Division drafted 
this document.

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

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. Amend subpart C by adding Sec.  9.189 to read as follows:


Sec.  9. 189  High Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``High Valley''. For purposes of part 4 of this chapter, 
``High Valley'' is a term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the ``High Valley'' viticultural area are three United 
States Geological Survey (USGS) 1:24,000 scale topographic maps. They 
are titled:
    (1) Clearlake Oaks Quadrangle, California--Lake County; edition of 
1958; photorevised 1975, minor revision 1994;
    (2) Benmore Canyon Quadrangle, California--Lake County; provisional 
edition of 1989, minor revision 1994; and
    (3) Lucerne Quadrangle, California--Lake County; edition of 1958, 
photorevised 1975, minor revision 1994.
    (c) Boundary. The High Valley viticultural area is located in Lake 
County, California, near the village of Clearlake Oaks. The boundary of 
the High Valley viticultural area is as described below:
    (1) The point of beginning is on the Clearlake Oaks map on the 
northern boundary line of section 16 (also the southern boundary of the 
Mendocino National Forest), T14N, R8W, at the intersection of the 
section line and High Valley Road;
    (2) From the beginning point, proceed due east 2.4 miles along the 
northern boundary lines of sections 16, 15, and 14 (also the southern 
boundary of the Mendocino National Forest) to the northeast corner of 
section 14, T14N, R8W; then
    (3) Proceed straight east-southeast 3.15 miles to the intersection 
of the 2,000-foot elevation line and the eastern boundary of section 
17, T14N, R7W; then
    (4) Proceed easterly 2.7 miles along the meandering 2,000-foot 
elevation line to its first intersection with the eastern boundary of 
section 22, T14N, R7W, on the Benmore Canyon map; then
    (5) Proceed due south approximately 300 feet along the eastern 
boundary of section 22, T14N, R7W, to its intersection with the 
headwaters of the north branch of the Salt Canyon Creek; then
    (6) Proceed easterly 0.4 mile along the north branch of the Salt 
Canyon Creek to its intersection with the 1,600-foot elevation line in 
section 23, T14N, R7W; then
    (7) Proceed southerly along the meandering 1,600-foot elevation 
line 4.1 miles to its intersection with State Route 20, just north of 
Sweet Hollow Creek, in section 35, T14N, R7W; then
    (8) Proceed southwest and then west 1.7 miles on State Route 20 to 
its intersection with the 1,600-foot elevation line just northwest of 
BM 1634, Wye, in section 3, T13N, R7W; then
    (9) Proceed westerly 15.2 miles along the meandering 1,600-foot 
elevation line, crossing the Clearlake Oaks map, to the elevation 
line's intersection with an unnamed intermittent stream in Pierce 
Canyon in the northeast quadrant of section 20, approximately 0.4 mile 
east of VABM 2533, T14N, R8W, on the Lucerne map; then
    (10) Proceed northerly and then northeasterly along the unnamed 
intermittent stream in Pierce Canyon and then the stream's northern 
fork approximately 1.6 miles to the northern fork's intersection with 
the 3,000-foot elevation line in section 16, T14N, R8W, on the 
Clearlake Oaks map; and then
    (11) Proceed straight northeast 0.15 mile, returning to the 
beginning point.

    Signed: May 17, 2005.
John J. Manfreda,
Administrator.
    Approved: May 27, 2005.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 05-13042 Filed 6-30-05; 8:45 am]
BILLING CODE 4810-31-P