[Federal Register Volume 71, Number 176 (Tuesday, September 12, 2006)]
[Proposed Rules]
[Pages 53612-53616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-14918]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Notice No. 63]
RIN 1513-AB20


Proposed Establishment of the Swan Creek Viticultural Area 
(2005R-414P)

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau proposes to 
establish the 96,000-acre Swan Creek viticultural area in Wilkes, 
Yadkin, and Iredell Counties, North Carolina. 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. We 
invite comments on this proposed addition to our regulations.

DATES: We must receive written comments on or before November 13, 2006.

ADDRESSES: You may send comments to any of the following addresses:
     Director, Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, Attn: Notice No. 63, P.O. Box 14412, 
Washington, DC 20044-4412.
     202-927-8525 (facsimile).
     [email protected] (e-mail).
     http://www.ttb.gov/wine/wine_rulemaking.shtml. An online 
comment form is posted with this notice on our Web site.
     http://www.regulations.gov (Federal e-rulemaking portal; 
follow instructions for submitting comments).
    You may view copies of this notice, the petition, the appropriate 
maps, and any comments we receive about this proposal by appointment at 
the TTB Information Resource Center, 1310 G Street, NW., Washington, DC 
20220. To make an appointment, call 202-927-2400. You may also access 
copies of the notice and comments online at http://www.ttb.gov/wine/wine_rulemaking.shtml.
    See the Public Participation section of this notice for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing.

FOR FURTHER INFORMATION CONTACT: N.A. Sutton, Regulations and Rulings 
Division, Alcohol and Tobacco Tax and Trade Bureau, 925 Lakeville 
Street, No. 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 consumers 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 geographic 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,

[[Page 53613]]

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.

Swan Creek Petition

    Raffaldini Vineyards submitted a petition to establish the 96,000-
acre ``Swan Creek'' viticultural area on behalf of the Vineyards of 
Swan Creek, a trade association representing a group of vineyards and 
wineries in northwest North Carolina. Within the boundary of the 
proposed viticulture area are 3 wineries and 75 acres of vineyards. The 
boundary of the proposed viticultural area incorporates portions of 
Wilkes, Yadkin, and Iredell Counties and includes a portion of the 
established Yadkin Valley viticultural area (27 CFR 9.174). We 
summarize below the evidence submitted in support of the petition.

Name and Boundary Evidence

    The petitioner explains that the geographical name ``Swan Creek'' 
refers to a village in the approximate center of the proposed 
viticultural area, as well as two streams located near the village, 
East Swan Creek and West Swan Creek, which are depicted in the 
southwest portion of the 1:100,000-scale USGS Winston-Salem, North 
Carolina topographic map. The USGS map shows Swan Creek village in the 
Brushy Mountains, with the two creeks running north from the mountain 
elevations to the Yadkin River. Also, an undated State of North 
Carolina Department of Environment, Health, and Natural Resources 
document lists Swan Creek, West Swan Creek, and East Swan Creek as 
streams in the Yadkin-Pee Dee River Basin.
    The DeLorme North Carolina Atlas and Gazetteer identifies the 
village as ``Swancreek,'' with East Swan Creek and West Swan Creek to 
its northwest. The petitioner explains that both names, ``Swan Creek'' 
and ``Swancreek,'' reference the proposed viticultural area region. 
However, the two-word spelling is the more common usage for businesses, 
roads, creeks, and historical documents, which led the petitioner to 
identify the proposed viticultural area as ``Swan Creek.''
    The local Wilkes Telephone Membership Corp. telephone book, which 
covers the region that includes the proposed viticultural area, lists 
an airport, church, and three businesses using ``Swan Creek'' in their 
names. A search of the North Carolina Department of the Secretary of 
State's Web site (http://www.secretary.state.nc.us/Corporations/ThePage.aspx) lists eight businesses currently operating with ``Swan 
Creek'' in their names.
    As further evidence of the significance of the ``Swan Creek'' name 
within the proposed area, the September 7, 2004, minutes of a Yadkin 
County Commission meeting includes a reference to the Swan Creek area 
and improvements to Swan Creek Road. Additionally, a National Weather 
Service bulletin from January 13, 2005, warns of the possibility of a 
tornado in the Swan Creek area. The name is also repeatedly used in the 
``Vineyards of Swan Creek Wine Trail'' Web site (http://www.swancreekvineyards.com).
    The petitioner relies on geographical and man-made elements 
identifiable on the supplied USGS maps to define and draw the boundary 
for the proposed viticultural area. Climate data and historic evidence 
that documents the breadth of the ``Swan Creek'' name also legitimize 
the proposed boundary line, according to the petitioner.
    From the regional history of the Yadkin Valley, the petitioner 
connects the ``Swan Creek'' name to stories of Revolutionary War 
soldiers traveling along the proposed Swan Creek viticultural area 
northern boundary line at the Yadkin River, en route to the pivotal 
battle at King's Mountain in South Carolina. Also, during the Civil 
War, Union Major General George Stoneman led troops eastward through 
Swan Creek to Virginia. Historic manuscripts also maintain that 
frontiersman Daniel Boone homesteaded in the Swan Creek region in the 
1750's.
    After the Civil War, the Swan Creek area turned to farming, which 
continues to characterize this rural region despite the urban 
development in other portions of the Yadkin Valley viticultural area. 
Today, agriculture in the Swan Creek region includes viticulture, with 
75 acres within the proposed Swan Creek viticultural area currently 
dedicated to grape growing, according to the petition.
    The geology of the Swan Creek region, along with its minor climatic 
variation, also creates distinguishing viticultural features upon which 
to base boundary distinctions. The entire proposed Swan Creek 
viticultural area lies within the Yadkin River Basin. The general 
uniformity in the Swan Creek region's soils is attributable to the 
natural weathering process of the Brushy Mountains and the Brevard 
Shear Zone, a major fault system that also defines the Blue Ridge 
Escarpment in the area. The homogeneous soil within the proposed 
viticultural area is unlike the varied soils and rock types found in 
other parts of the Yadkin Valley viticultural area.
    The proposed Swan Creek viticultural area boundary overlaps the 
established Yadkin Valley viticultural area as shown in the table 
below.

------------------------------------------------------------------------
                                                Overlapping    Percent
        Viticultural areas         Total acres     acres     overlapping
------------------------------------------------------------------------
Yadkin Valley....................    1,416,000       57,600            4
Swan Creek (Proposed)............       96,000       57,600           60
------------------------------------------------------------------------

    The northern 60 percent of the proposed Swan Creek viticultural 
area sits within the Yadkin Valley viticultural area, with the 
remaining 40 percent south of the Yadkin Valley viticultural area 
boundary line, according to the petition maps.
    The discussion below includes further substantive evidence on the 
differences between the Yadkin Valley viticultural area and the 
proposed Swan Creek viticultural area, which, according to the 
petitioner, justifies the proposed boundary line.

Distinguishing Features

    Situated in the moderate elevations of the Brushy Mountains, and 
bordering the Yadkin River, the proposed Swan Creek viticultural area's 
geographical location is responsible for the area's temperate climate 
and homogenous soil as compared to surrounding areas, according to the 
petitioner.
Topography
    The Brushy Mountains run through the center of the Swan Creek 
region, with elevations in the proposed Swan Creek viticultural area 
varying between 1,000 feet and 2,000 feet, according to the USGS maps 
submitted with the petition. The Brushy Mountains, within

[[Page 53614]]

the proposed viticultural area, have elevations lower than the Blue 
Ridge Mountains to the west but higher than the other surrounding 
areas, according to the USGS maps. The Blue Ridge Mountain region to 
the immediate west of the proposed boundary line rises to elevations of 
from 3,000 feet to 5,000 feet. To the east and south of the proposed 
viticultural area, the elevation drops to between 500 feet and 1,000 
feet.
Climate
    Both the Yadkin River running adjacent to the proposed Swan Creek 
viticultural area's northern boundary line and the Brushy Mountains 
that lie within the proposed viticultural area boundary serve as 
climatically moderating influences.
    The Swan Creek region has an average annual high temperature of 
68.9 [deg]F and an average annual low temperature of 42.8 [deg]F. The 
table below shows the contrasting temperatures in the regions beyond 
the proposed boundary line, as collected by the Southeast Regional 
Climate Center (SERCC) of the National Climatic Data Center.

------------------------------------------------------------------------
                                       Average annual    Average annual
                                           maximum           minimum
               Region                  temperature in    temperature in
                                           degrees           degrees
                                         Fahrenheit        Fahrenheit
------------------------------------------------------------------------
Swan Creek..........................              68.9              42.8
West and northwest..................              59.8              40.4
South and east......................              70.6              46.6
Yadkin Valley.......................              69.5              44.8
------------------------------------------------------------------------

    The SERCC data shows that the Swan Creek area is generally warmer 
than the regions to the west and northwest, cooler than the regions to 
the south and east, and slightly cooler than the Yadkin Valley as a 
whole. Also, average January temperatures of 20 [deg]F to 25 [deg]F 
make the Swan Creek region less prone to Pierce's Disease, which 
adversely affects vineyards, than the majority of the Yadkin Valley 
viticultural area.
    The proposed Swan Creek viticultural area averages 3,576 degree 
days of heat accumulation annually, which puts it in climatic region 
IV, according to temperature data collected by the SERCC. (As a measure 
of heat accumulation, each degree that a day's mean temperature is 
above 50 [deg]47F, 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.) The surrounding areas, based on Amerine and Winkler heat 
summation definitions, include climatic regions IV and V to the east, 
region V to the south, and region I to the west-northwest.
    The frost-free season of the proposed Swan Creek viticultural area 
extends on average from April 19 to October 17 annually, according to 
the ``Average Last Spring Frost Dates for Selected North Carolina 
Locations,'' horticulture information leaflets (published December 1996 
and revised December 1998), by Katharine Perry, North Carolina State 
University. According to the petition, this frost-free season is nearly 
identical to Surry County, which is part of the Yadkin Valley 
viticultural area located immediately northeast of the proposed Swan 
Creek viticultural area. However, southeast of the proposed 
viticultural area, but also within the Yadkin Valley viticultural area, 
the Davidson County frost-free season averages from March 31 to October 
31, resulting in a month less frost than in the proposed Swan Creek 
viticultural area. The frost-free season in counties outside the Yadkin 
Valley viticultural area and the proposed Swan Creek viticultural area 
varies, extending three weeks longer to the east, but lasting four to 
six weeks less in regions to the west and northwest.
    In addition, the growing season of the proposed Swan Creek 
viticultural area averages 170 to 190 days annually, according to 
Perry's ``Average Growing Seasons for Selected North Carolina 
Locations,'' horticulture information leaflets (published December 1996 
and revised December 1998). Again, this growing season is almost 
identical to the county immediately northeast, located within the 
Yadkin Valley viticultural area. However, according to Perry's data, 
Davidson County averages a 214-day growing season annually, or between 
24 and 44 more growing days than the proposed Swan Creek viticultural 
area. Similarly, the petition shows that Guilford County to the east 
has an annual growing season of between 199 and 210 days. Counties to 
the west and northwest of the Swan Creek region have a significantly 
shorter growing season, lasting an average of 139 to 162 days.
Precipitation
    The petitioner attributes the moderate rainfall within the proposed 
viticultural area to the protective influence of the Brushy Mountains. 
Rainfall within the proposed Swan Creek viticultural area averages 48.6 
inches annually, based on SERCC data, with the local grape growers 
surveyed by the petitioner recording less rainfall at their own weather 
stations. The areas to the west and northwest of the proposed 
viticultural area average 57 inches each year, while regions to the 
south and east average 44.4 inches of rain annually.
    Furthermore, snowfall within the proposed Swan Creek viticultural 
area averages 6.3 inches annually, based on SERCC records, which is far 
less than the data recorded at weather stations in surrounding areas.
Geology
    The geology of the proposed Swan Creek viticultural area, with 
documentation and evidence provided for the petition by Matthew 
Mayberry of the Mayberry Land Company, Elkin, North Carolina, is shaped 
by plate tectonics and a spectrum of uplift and erosion for the entire 
Appalachian Mountains building cycle. The Swan Creek region is part of 
the larger Appalachian Mountain Range area that has gone through at 
least three cycles of uplift and erosion, with each cycle lasting 
around 300 million years. Also, the weathering and erosion cycles 
created the resulting Piedmont and Blue Ridge surfaces found in the 
proposed viticultural area today.
    Mr. Mayberry explains that the four predominant rock types in the 
proposed viticultural area are Henderson Gneiss, Granite, Biotite 
Gneiss and Biotite Amphibolite Gneiss, and Sillimanite Mica Schist. 
These types make up more than 90 percent of the Swan Creek area, with 
the latter three composing about 80 percent of the southern part of the 
area. Along the proposed north boundary line at the Yadkin River the 
predominant rock types include Ashe Formation, Utramafics, and Granitic 
Rocks of the Crossnore Group.

[[Page 53615]]

Soil
    The soil information in the Swan Creek viticultural area petition 
is compiled from the published soil surveys of Wilkes, Yadkin, and 
Iredell Counties in North Carolina. Roy Mathis, Soil Specialist for 
Correlations, Natural Resources Conservation Service, United States 
Department of Agriculture, provided the soil information included in 
the petition.
    The areas surrounding the proposed Swan Creek viticultural area 
have soils with differing characteristics, Mr. Mathis explains. The 
areas to the south and east have high shrink-swell clayey soils, which 
are less desirable for agriculture. To the west and north are the 
mountainous rocks and soils of the encroaching Blue Ridge Mountains. 
Also, the Yadkin Valley viticultural area, which surrounds the proposed 
Swan Creek viticultural area to the west, north, and east, has a 
greater variety of soil types and temperature regimes.
    The proposed Swan Creek viticultural area mesic temperature regime 
has soil temperatures of 47 [deg]F to 59 [deg]F at the depth of 20 
inches, according to Mr. Mathis. In comparison, the Yadkin Valley 
viticultural area is in both the mesic and thermic temperature regimes, 
with soil temperatures much warmer at 59 [deg]F to 72 [deg]F at the 
same soil depth.
    Mr. Mathis explains that the soils in the proposed Swan Creek 
viticultural area are primarily saprolite, a soft, clay-rich soil 
derived from weathered felsic (acidic) metamorphic rocks of the Inner 
Piedmont Belt such as granites, schists, and gneisses. The region 
includes a small area of Sauratown Belt with the rocks being primarily 
metagraywacke. In contrast, the surrounding west and north areas 
include residuum (saprolite) weathered from felsic metamorphic rocks 
such as gneisses, schists, and phyllites of the Blue Ridge Geologic 
Belt and Smith River Allochothon. The saprolite in the surrounding area 
to the east is composed of weathered igneous intrusive rocks like 
granites, gabbros, and diorites, as well as some gneisses and schists 
of the Charlotte Belt.
    Evard and Cowee soils, which have moderate permeability and are 
well-drained with a loamy surface and sub-soil layer, predominate in 
the Brushy Mountains. Yet the dominant ridge top soils of the proposed 
Swan Creek viticultural area include the Fairview and Clifford series. 
These soils have sandy clay loam or clay loam surface layers with red 
clayey sub-soils, and are well-drained with moderate permeability.
    Rhodhiss series is the dominant soil on the steep side slopes 
within the proposed viticultural area boundary. This well-drained soil 
has a loamy surface and moderate permeability at the sub-soil level. 
Mr. Mathis notes that Fairview, Clifford, and Rhodhiss soils all have 
bedrock deeper than 60 inches.
    The Yadkin River, at the northern boundary of the proposed Swan 
Creek viticultural area, has alluvial soil diversity with textures and 
drainage. In general, most of the proposed Swan Creek viticultural area 
soils are acidic and low in natural fertility.

Boundary Description

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

Maps

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

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. If we establish this proposed viticultural area, its 
name, ``Swan Creek,'' will be recognized under 27 CFR 4.39(i)(3) as a 
name of viticultural significance. The text of the new regulation would 
clarify this point. Consequently, wine bottlers using ``Swan Creek'' in 
a brand name, including a trademark, or in another label reference as 
to the origin of the wine, will have to ensure that the product is 
eligible to use the viticultural area's name as an appellation of 
origin. On the other hand, we do not believe that any single part of 
the proposed viticultural area name standing alone would have 
viticultural significance if the new area is established. Accordingly, 
the proposed part 9 regulatory text set forth in this document 
specifies only the full ``Swan Creek'' name as a term of viticultural 
significance for purposes of part 4 of the TTB regulations.
    For a wine to be eligible to use as an appellation of origin a 
viticultural area name or other term specified as being viticulturally 
significant in part 9 of the TTB regulations, at least 85 percent of 
the wine must be derived from grapes grown within the area represented 
by that name or other term, 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 or other term as an appellation of origin and 
that name or term 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 or 
other term appears in another reference on the label in a misleading 
manner, the bottler would have to obtain approval of a new label. 
Accordingly, if a new label or a previously approved label uses the 
name ``Swan Creek'' for a wine that does not meet the 85 percent 
standard, the new label will not be approved, and the previously 
approved label will be subject to revocation, upon the effective date 
of the approval of the Swan Creek viticultural area.
    Different rules apply if a wine has a brand name containing a 
viticultural area name or other viticulturally significant term that 
was used as a brand name on a label approved before July 7, 1986. See 
27 CFR 4.39(i)(2) for details.

Public Participation

Comments Invited

    We invite comments from interested members of the public on whether 
we should establish the proposed viticultural area. We are also 
interested in receiving comments on the sufficiency and accuracy of the 
name, boundary, climate, and other required information submitted in 
support of the petition. Please provide any available specific 
information in support of your comments.
    Because of the potential impact of the establishment of the 
proposed Swan Creek viticultural area on brand labels that include the 
words ``Swan Creek'' as discussed above under Impact on Current Wine 
Labels, we are particularly interested in comments regarding whether 
there will be a conflict between the proposed area name and currently 
used brand names. If a commenter believes that a conflict will arise, 
the comment should describe the nature of that conflict, including any 
negative economic impact that approval of the proposed viticultural 
area will have on an existing viticultural enterprise. We are also 
interested in receiving suggestions for ways to avoid any conflicts, 
for example by adopting a modified or different name for the 
viticultural area.
    Although TTB believes that only the full ``Swan Creek'' name should 
be considered to have viticultural significance upon establishment of 
the proposed new viticultural area, we also invite comments from those 
who believe that ``Swan'' standing alone would have viticultural 
significance upon establishment of the area. Comments in this regard 
should include documentation or other information

[[Page 53616]]

supporting the conclusion that use of the word ``Swan'' on a wine label 
could cause consumers and vintners to attribute to the wine in question 
the quality, reputation, or other characteristic of wine made from 
grapes grown in the proposed Swan Creek viticultural area.

Submitting Comments

    Please submit your comments by the closing date shown above in this 
notice. Your comments must include this notice number and your name and 
mailing address. Your comments must be legible and written in language 
acceptable for public disclosure. We do not acknowledge receipt of 
comments, and we consider all comments as originals. You may submit 
comments in one of five ways:
     Mail: You may send written comments to TTB at the address 
listed in the ADDRESSES section.
     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 no more than five pages long. This limitation assures 
electronic access to our equipment. We will not accept faxed comments 
that exceed five pages.
     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.
     Online form: We provide a comment form with the online 
copy of this notice on our Web site at http://www.ttb.gov/wine/wine_rulemaking.shtml. Select the ``Send comments via e-mail'' link under 
this notice number.
     Federal e-rulemaking portal: To submit comments to us via 
the Federal e-rulemaking portal, visit http://www.regulations.gov and 
follow the instructions for submitting comments.
    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 whether to hold a public hearing.

Confidentiality

    All submitted material is part of the public record and subject to 
disclosure. Do not enclose any material in your comments that you 
consider confidential or inappropriate for public disclosure.

Public Disclosure

    You may view copies of this notice, the petition, the appropriate 
maps, and any comments we receive by appointment at the TTB Information 
Resource Center at 1310 G Street, NW., Washington, DC 20220. You may 
also obtain copies at 20 cents per 8.5- x 11-inch page. Contact our 
information specialist at the above address or by telephone at 202-927-
2400 to schedule an appointment or to request copies of comments.
    We will post this notice and any comments we receive on this 
proposal on the TTB Web site. All name and address information 
submitted with the comments will be posted, including e-mail addresses. 
We may omit voluminous attachments or material that we consider 
unsuitable for posting. In all cases, the full comment will be 
available in the TTB Information Resource Center. To access the online 
copies of this notice and the submitted comments, visit http://www.ttb.gov/wine/wine_rulemaking.shtml. Select the ``View Comments'' 
link under this notice number to view the posted comments.

Regulatory Flexibility Act

    We certify that this proposed regulation, if adopted, would not 
have a significant economic impact on a substantial number of small 
entities. The 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

    N.A. Sutton of the Regulations and Rulings Division drafted this 
notice.

List of Subjects in 27 CFR Part 9

    Wine.

Proposed Regulatory Amendment

    For the reasons discussed in the preamble, we propose to amend 27 
CFR, chapter 1, part 9, 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.

Subpart C--Approved American Viticultural Areas

    2. Subpart C is amended by adding Sec.  9.------ to read as 
follows:


Sec.  9.----  Swan Creek.

    (a) Name. The name of the viticultural area described in this 
section is ``Swan Creek''. For purposes of part 4 of this chapter, 
``Swan Creek'' is a term of viticultural significance.
    (b) Approved maps. The appropriate maps for determining the 
boundary of the Swan Creek viticultural area are three United States 
Geological Survey, 1:100,000 scale, topographic maps. They are titled:
    (1) Winston-Salem, North Carolina, 1984, photoinspected 1982;
    (2) Boone, North Carolina-Tennessee, 1985; and
    (3) Salisbury, North Carolina, 1985, photoinspected 1983.
    (c) Boundary. The Swan Creek viticultural area is located in 
Wilkes, Yadkin, and Iredell Counties, North Carolina. The boundary of 
the Swan Creek viticultural area is described below:
    (1) The beginning point is on the Winston-Salem, North Carolina map 
at the intersection of the Yadkin River and U.S. Highway 21, along the 
Surry-Yadkin county line, between Elkin and Jonesville;
    (2) From the beginning point, proceed 24.6 miles generally south on 
U.S. Highway 21, crossing onto the Salisbury, North Carolina map, to 
the intersection of U.S. Highway 21 with Rocky Creek at Turnersburg;
    (3) Proceed 12.3 miles generally north and west along Rocky Creek, 
returning to the Winston-Salem map, to the intersection of Rocky Creek 
with State Highway 115 at New Hope in the southwest corner of the map;
    (4) Proceed 15.5 miles generally northwest along State Highway 115, 
crossing onto the Boone, North Carolina-Tennessee map, to the 
intersection of State Highway 115 and the Yadkin River, at North 
Wilkesboro; and
    (5) Proceed 16.7 miles generally east-northeast along the Yadkin 
River, crossing onto the Winston-Salem map, to the beginning point.

    Signed: August 1, 2006.
John J. Manfreda,
Administrator.
 [FR Doc. E6-14918 Filed 9-11-06; 8:45 am]
BILLING CODE 4810-31-P