[Federal Register Volume 71, Number 227 (Monday, November 27, 2006)]
[Rules and Regulations]
[Pages 68458-68463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-20018]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[T.D. TTB-56; Re: Notice No. 18]
RIN 1513-AA57


Establishment of the Chehalem Mountains Viticultural Area (2002R-
214P)

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

ACTION: Final rule; Treasury decision.

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SUMMARY: This Treasury decision establishes the 68,265-acre Chehalem 
Mountains viticultural area in Clackamas, Yamhill, and Washington 
Counties, Oregon. This new viticultural area is entirely within the 
existing Willamette Valley viticultural area. We designate viticultural 
areas to allow vintners to better describe the origin of their wines 
and to allow consumers to better identify wines they may purchase.

DATES: Effective Date: December 27, 2006.

FOR FURTHER INFORMATION CONTACT:  N.A. Sutton, Regulations and Rulings 
Division, Alcohol and Tobacco Tax and Trade Bureau, 925 Lakeville St., 
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.

[[Page 68459]]

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.

Chehalem Mountains Viticultural Area Petition and Rulemaking

Background

    TTB received a petition from Alex Sokol-Blosser, secretary of the 
North Willamette Valley AVA Group, proposing establishment of the new 
``Chehalem Mountains'' viticultural area. David Adelsheim, Paul Hart, 
and Richard Ponzi authored the petition.
    The proposed Chehalem Mountains viticultural area is located in 
portions of Clackamas, Yamhill, and Washington Counties in northwestern 
Oregon. The proposed area lies in the northern region of the Willamette 
Valley viticultural area (27 CFR 9.90) and, along its southwestern 
boundary, encompasses the smaller Ribbon Ridge viticultural area (27 
CFR 9.182). The Chehalem Mountains viticultural area is approximately 
19 miles southwest of Portland, Oregon, and 45 miles inland from the 
Pacific Ocean. The proposed Chehalem Mountains viticultural area covers 
106.6 square miles, or 68,265 acres. The petition states that, in 2002, 
the area contained at least 80 vineyards, totaling over 1,100 acres, 
and 12 commercial wineries.
    Terrain, elevation, and climate are the significant distinguishing 
features of the proposed Chehalem Mountains viticultural area. The 
proposed boundary line, which is generally at 200 to 250 feet in 
elevation, encompasses this single, continuous landmass lifted from the 
Willamette Valley floor.
    We summarize below the supporting evidence presented with the 
petition.

Name Evidence

    The petition explains that the region within the proposed 
viticultural area is locally known as the ``Chehalem Mountains.'' The 
petition notes that use of the Chehalem name extends back to the early 
19th century, that it is featured on USGS maps of the region, and that 
it is used by a variety of present-day businesses, housing 
developments, parks, and roads.
    The modern word ``Chehalem'' comes from the Native American name 
``Chahelim,'' listed under the heading Atfalati (Tualatin) in the 
``Handbook of American Indians,'' according to references in the 
petition. Also, beginning in the early 1800s, the ``Chehalem'' name 
referred to more than 20 bands of Native Americans living in the 
general vicinity of the Chehalem Mountains.
    Historically, the ``Chehalem'' name entered the vocabulary of the 
early European settlers prior to 1840, according to the petition. The 
petition explains that in 1834 a lumber mill started operations on 
Chehalem Creek. Also, in 1848, Joseph B. Rogers platted the town of 
``Chehalem'' on his property, the current site of Newberg, Oregon. The 
petition further states that on March 14, 1851, the township of 
``Chehalem'' established one of the earliest post offices in Yamhill 
County.
    The ``Chehalem Mountains'' name figures prominently on the USGS 
quadrangle maps of Newberg, Dundee, Laurelwood, and Scholls, Oregon, 
submitted with the petition. Within the Chehalem Mountains, these USGS 
maps name the Parrett Mountain and Ribbon Ridge spurs, as well as other 
hills, peaks, and ridges, including Laurel Ridge, Bald Peak, Iowa Hill, 
Spring Hill, and Fern Hill. The entry for Chehalem Mountains in 
``Oregon Geographic Names'' by Lewis L. McArthur reads, ``These are the 
highest mountains in the Willamette Valley * * *. The Chehalem 
Mountains and some independent spurs extend from the Willamette River 
east of Newberg to the foothills of the Coast range south of Forest 
Grove, Oregon.'' Additional geographic location name references on the 
USGS maps include Chehalem Creek, which runs through Chehalem Valley, 
on the south side of the Chehalem Mountains.
    In addition to the USGS map references, modern ``Chehalem'' name 
usages include a municipal park and recreation district, a public 
middle school, public roads, 27 business names, and several housing 
developments, according to petition evidence.

Boundary Evidence

    The proposed boundary line of the Chehalem Mountains viticultural 
area relies primarily on geographical features and elevations, the 
petition explains and the USGS regional maps confirm. In addition to 
terrain and elevation, slope and soil criteria help delineate the line 
between mountains and valley floor, according to the petition. Thus, 
the proposed Chehalem Mountains viticultural area boundary line 
includes mountainous and hillside terrain, but excludes flat or barely 
sloping lands.
    A valley formed by the Tualatin River and its tributaries lies on 
much of the west side and all of the north side of the Chehalem 
Mountains. On the east side of the Chehalem Mountains, Rock Creek and 
Seely Ditch separate the mountains from the high ground around Tonquin. 
The southeast side of the Chehalem Mountains borders the flood plain of 
the Willamette River, and the Chehalem Valley lies along the southwest 
side of the proposed viticultural area's boundary line.
    Historically, the first vineyard acquisition in the Chehalem 
Mountains

[[Page 68460]]

dates to 1968, when Dick Erath purchased 49 acres on Dopp Road in 
Yamhill County, according to the petition. Mr. Erath planted vineyards 
in the spring of 1969, the petition continues, and shortly thereafter 
other land owners also started planting wine grapes.

Distinguishing Features

    The petition states that the distinguishing features of the 
proposed Chehalem Mountains viticultural area include its terrain, 
elevation, and climate. These features contrast with the surrounding 
Willamette Valley, Coast Range, and Columbia Gorge regions.
Physical Features
    The length and towering peaks of the Chehalem Mountains landform 
distinguish the proposed viticultural area from the surrounding 
Willamette Valley area, the petition explains. Viewable from the West 
Hills of Portland, Oregon, and the northern Willamette Valley floor, 
the Chehalem Mountains measure more than 20 miles in length and 5 miles 
in width. The mountains are a single continuous landmass of increasing 
elevation, containing a series of ridges and two highly delineated 
spurs, Ribbon Ridge and Parrett Mountain. The mountains also serve to 
separate the Tualatin River basin and the Chehalem Valley, the petition 
continues.
    The slopes of the Chehalem Mountains, both steep and gentle, 
significantly contrast with the almost flat Willamette Valley floor, 
the petition explains. On the west side of Ribbon Ridge and the 
southeast side of Parrett Mountain, the slopes descend steeply, 
according to the petition and the USGS maps of the region. At the 
bottom of these steep descents, the slopes become almost level and 
flatten into the valley floor.
    The majority of the Chehalem Mountains slopes shift gradually and 
gently to the valley floor, as shown on USGS regional maps. Where the 
terrain transition lacks distinction, the petitioner uses a combination 
of terrain, elevation, slope, and soil criteria to determine the 
boundary line of the proposed Chehalem Mountains viticultural area.
Elevation
    Within the Willamette Valley, the Chehalem Mountains tower in 
height over the surrounding landforms and terrain, according to the 
petition. Bald Peak, northwest of Newberg and within the proposed 
Chehalem Mountains viticultural area, rises to 1,633 feet above sea 
level, while the surrounding valley floor sits at or below 200 feet in 
elevation, according to the USGS regional maps.
    Most of the vineyards in the proposed Chehalem Mountains 
viticultural area, the petition states, lie between the 200 feet and 
1,000 feet contour lines. The areas below 200 feet in elevation have 
alluvial soils, characterized by greater depth, fertility, and water-
holding capacity, according to the petition. This combination of soil 
features extends the growing period of the Willamette Valley floor and 
delays grape ripening. Also, frost potential increases at the lower 
elevations of the valley floor when compared to the higher hillside and 
mountain elevations. As a result, the proposed Chehalem Mountains 
viticultural area boundary line excludes valley floor elevations and 
its alluvial soils, the petition states.
Climate
    Significant annual precipitation best distinguishes the climate of 
the proposed Chehalem Mountains viticultural area from surrounding 
regions, the petition claims. As the highest mountains in the 
Willamette Valley the Chehalems create a large obstacle for west-to-
east moving storms. When the moist air rises over the Chehalem 
Mountains, water vapor in the cooling air condenses and falls to earth 
as terrain-induced rain, the petition explains.
    According to data from the ``Atlas of Oregon,'' second edition 
(University of Oregon Press, 2001), annual rainfall within the 
boundaries of the proposed viticultural area ranges from 37 inches in 
the lower elevations to almost 60 inches at the highest elevation at 
Bald Peak. This annual precipitation contrasts with the 36 inches 
received in Hillsboro and Beaverton to the north of the proposed 
viticultural area, French Prairie to the south, and Portland 
International Airport to the east, the petition explains. To the west 
of the Chehalems, the Coast Range, closer to the moisture-laden air of 
the Pacific Ocean, annually averages over 100 inches of rain.
    Several other uplifted regions within the Willamette Valley include 
higher rainfall levels than the surrounding valley floor, but none are 
as dramatic as the Chehalem Mountains. For example, to the south-
southwest of the proposed viticultural area, the Eola Hills, which peak 
at approximately 1,160 feet, receive 40 to 48 inches of annual 
precipitation, while to the south of the proposed viticultural area, 
the Dundee Hills, which peak at 1,067 feet in elevation, receive 40 to 
44 inches of annual precipitation.
    Temperatures vary within the Chehalem Mountains more than in any 
other region within the Willamette Valley, the petition explains. 
According to data from the Oregon Climate Service, heat accumulation 
during the Chehalem Mountains growing season varies from over 2,200 
degree days along the mountains' south side base to less than 1,800 
degree days on the northsides of their higher peaks. The annual 400 
degree-day variation typically results in a three-week difference in 
the ripening of Pinot Noir grapes, the petition explains. (Each degree 
that a day's mean temperature is above 50 degrees Fahrenheit, 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.)
    Evapotranspiration, or the loss of water from soil and plants by a 
combination of evaporation and transpiration, averages about 3 inches 
less at the higher elevations of the Chehalem Mountains when compared 
to the surrounding valleys, the petition states. This difference 
corresponds to the warmer growing temperatures found at the lower 
elevations, as compared to the cooler growing temperatures at the 
higher elevations of the Chehalem Mountains, the petition explains.
Soil
    The petition emphasizes that the diverse Chehalem Mountains soils 
fail to qualify as a distinguishing feature for this viticultural area 
petition. The soils, according to the petition, include loess, 
sedimentary, basaltic, and alluvial origins.
    The Ribbon Ridge spur, within the proposed Chehalem Mountains 
southwest boundary line and heavily planted to red wine grapes, 
includes sedimentary soil of the Willakenzie Series, the petition 
explains. The central and southern Chehalem Mountains, with vineyards 
of white grapes and extensive Pinot Noir plantings, include large 
deposits of basaltic soils, mainly of the Jory Series. The central 
Chehalem Mountains region also includes loess soils, primarily of the 
Laurelwood Series.
    The petition further states that the sedimentary western flank of 
the Chehalem Mountains contains similarities to the adjacent hilly 
region surrounding the Yamhill River Basin, beyond the proposed 
boundary line. Also, the basaltic-origin soils of the Chehalem 
Mountains' southern slope and the Parrett Mountain spur resemble soils 
found further south and outside the proposed boundary line in the

[[Page 68461]]

Dundee Hills and on the east side of the Eola Hills. Eolian soils on 
the north side of the Chehalem Mountains, the petition continues, 
resemble those found on the hills further north and east, beyond the 
proposed boundary line, in the Tualatin basin at Cooper and Bull 
Mountains. Finally, alluvial soils at the base of the Chehalem 
Mountains contain similarities to the surrounding valley flood plain 
soils found at elevations below the proposed viticultural area boundary 
line.
    The petition concludes that terrain, elevation, and climatic 
features of the proposed Chehalem Mountains viticultural area join to 
create the distinguishing features of this proposed viticultural 
region. The Chehalem Mountains soils, with their variety of parent 
material types, lack distinction from the surrounding Willamette Valley 
floor and hill formations.

Notice of Proposed Rulemaking and Comments Received

    On October 7, 2003, TTB published in the Federal Register (68 FR 
57840) as Notice No. 18 a notice of proposed rulemaking regarding the 
establishment of the Chehalem Mountains viticultural area. We received 
eight comments in response to that notice.
    All comments supported the establishment of the Chehalem Mountains 
viticultural area. Six of the eight comments agreed that the proposed 
``Chehalem Mountains'' name, boundary line, and distinguishing features 
accurately represented the proposed viticultural area. The remaining 
two comments also supported establishment of the Chehalem Mountains 
viticultural area, but specifically expressed concern about a possible 
conflict with one winery's longstanding use of ``Chehalem'' in its 
brand name, because the winery does not source all of its grapes from 
within the proposed Chehalem Mountains boundary.
    It is the understanding of TTB that these two commenters were 
referring to Chehalem Winery and Vineyards, which utilizes grapes grown 
within the boundary of the proposed Chehalem Mountains viticultural 
area but also relies on grapes from the nearby Dundee Hills 
viticultural area (27 CFR 9.180) for its production, with the result 
that the wine produced would not meet the 85 percent standard for use 
of ``Chehalem Mountains'' as an appellation of origin (see the Impact 
on Current Wine Labels discussion below). The two commenters 
recommended that TTB allow the winery to continue to use the 
``Chehalem'' brand name for grapes obtained outside the proposed 
Chehalem Mountains viticultural area boundary line. One of these 
commenters specifically suggested that such continued use of 
``Chehalem'' in the winery's brand name would be appropriate so long as 
all of the grapes in question came from within the Willamette Valley 
viticultural area.

TTB Finding

    After careful review of the petition and the eight 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 ``Chehalem Mountains'' viticultural area 
in Clackamas, Yamhill, and Washington Counties, Oregon, effective 30 
days from the publication date of this document.
    Regarding the concerns about use of the ``Chehalem'' name by 
Chehalem Winery and Vineyards, TTB has determined that only the full 
``Chehalem Mountain'' name should have viticultural significance upon 
the establishment of the new viticultural area. Therefore, the name 
``Chehalem'' standing alone will not have viticultural significance. 
Accordingly, the Chehalem Winery and Vineyards may continue to use its 
brand name for wines produced from grapes grown outside the boundaries 
of the Chehalem Mountains viticultural area.

Boundary Description

    As originally proposed, the boundary of the Chehalem Mountains 
viticultural area encompassed the Ribbon Ridge landform, and the 
petitioning North Willamette Valley AVA Group intended to include the 
then proposed Ribbon Ridge viticultural area entirely within the 
proposed Chehalem Mountains area. Notice No. 8, included, therefore, 
proposed regulatory text that used the 200-foot and the 240-foot 
contour lines to define much of the southwestern boundary of the 
Chehalem Mountains viticultural area. In contrast, the regulatory text 
of Sec.  9.182 adopted in T.D. TTB-27, which established the Ribbon 
Ridge viticultural area, uses Dopp and North Valley Roads for the 
Ribbon Ridge area's southern and western boundary lines, thus placing 
the Ribbon Ridge boundary slightly outside the originally proposed 
Chehalem Mountains southwestern boundary line.
    TTB has, with the petitioner's agreement, modified the originally 
proposed southwestern boundary of the Chehalem Mountains viticultural 
area to mirror the established Ribbon Ridge viticultural area boundary 
line. This minor boundary line change ensures that the Chehalem 
Mountains and Ribbon Ridge viticultural areas share a common boundary 
where appropriate so that the Ribbon Ridge area is entirely within the 
Chehalem area as the petitioner intended. This boundary line 
modification increases the overall size of the proposed Chehalem 
Mountains viticultural area by approximately 425 acres.
    In addition, for clarity, we have made minor editorial, non-
substantive changes to the wording of the originally proposed Chehalem 
Mountains viticultural area boundary description. See the narrative 
boundary description of the viticultural area in the regulatory text 
published at the end of this document.

Maps

    The maps for determining the boundary of the viticultural area are 
listed below in the 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. With the establishment of this viticultural area and 
its inclusion in part 9 of the TTB regulations, its name, ``Chehalem 
Mountains'' is recognized under 27 CFR 4.39(i)(3) as a name of 
viticultural significance. The text of the new regulation clarifies 
this point. Consequently, wine bottlers using ``Chehalem Mountains'' 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 name or other term as an appellation of 
origin.
    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 term as an appellation of origin and that 
name or other 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.
    Different rules apply if a wine has a brand name containing a 
viticultural

[[Page 68462]]

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.

Regulatory Flexibility Act

    We certify that this regulation will not have a significant 
economic impact on a substantial number of small entities. This 
regulation imposes no new reporting, recordkeeping, or other 
administrative requirement. Any benefit derived from the use of a 
viticultural area name is the result of a proprietor's efforts and 
consumer acceptance of wines from that area. Therefore, no regulatory 
flexibility analysis is required.

Executive Order 12866

    This rule is not a significant regulatory action as defined by 
Executive Order 12866 (58 FR 51735). Therefore, it requires no 
regulatory assessment.

Drafting Information

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

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

0
For the reasons discussed in the preamble, we amend title 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.  9.205 to read as follows:


Sec.  9.205  Chehalem Mountains.

    (a) Name. The name of the viticultural area described in this 
section is ``Chehalem Mountains''. For purposes of part 4 of this 
chapter, ``Chehalem Mountains'' is a term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the 
boundary of the Chehalem Mountains viticultural area are six United 
States Geological Survey 1:24,000 scale topographic maps. They are 
titled:
    (1) Newberg Quadrangle, Oregon, 7.5 Minute Series, 1961 
(photorevised 1985);
    (2) Dundee Quadrangle, Oregon, 7.5 Minute Series, 1956 (revised 
1993);
    (3) Laurelwood Quadrangle, Oregon, 7.5 Minutes Series 1956 (revised 
1992);
    (4) Scholls Quadrangle, Oregon, 7.5 Minute Series, 1961 
(photorevised 1985);
    (5) Beaverton Quadrangle, Oregon, 7.5 Minute Series, 1961 
(photorevised 1984); and
    (6) Sherwood Quadrangle, Oregon, 7.5 Minute Series, 1961 
(photorevised 1985).
    (c) Boundary. The Chehalem Mountains viticultural area is located 
in Clackamas, Yamhill, and Washington Counties, Oregon. The boundary of 
the Chehalem Mountains viticultural area is as described below:
    (1) The beginning point is in Yamhill County on the Newberg map in 
section 15, T3S/R2W, at the intersection of Oregon Highway 99W and the 
250-foot contour line, 0.4 mile east of Spring Brook;
    (2) From the beginning point, proceed northwesterly 1.2 miles along 
the 250-foot contour to its intersection with an unnamed light-duty 
road locally known as Benjamin Road, section 50, T3S/R2W, Newberg map; 
then
    (3) Proceed west 0.5 mile along Benjamin Road, crossing railroad 
tracks, to its intersection with an unnamed light-duty road locally 
known as Spring Brook Road, section 48, T3S/R2W, Newberg map; then
    (4) Proceed southwest 0.3 mile along Spring Brook Road, parallel to 
the railroad tracks, to its intersection with an unnamed light-duty 
road locally known as Mountainview Drive, section 48, T3S/R2W, on the 
Newberg map; then
    (5) Proceed west 0.35 mile on Mountainview Drive to its 
intersection with an unnamed light-duty road locally known as Aspen 
Way, along the western boundary of section 8, T3S/R2W, Newberg map; 
then
    (6) Proceed northwesterly 1.4 miles on Aspen Way to its 
intersection with Bell Road, along the northern boundary of section 47, 
T3S/R2W, Newberg map; then
    (7) Proceed west 0.8 mile on Bell Road, which becomes North Valley 
Road after crossing Oregon Highway 219, to its intersection with the 
250-foot contour line, immediately before an unimproved dirt road on 
the left, section 46, T3S/R2W, Newberg map; then
    (8) Proceed westerly 2 miles along the 250-foot contour line to its 
first intersection with the western boundary line of section 43, T3S/
R3W, along the western border of the Newberg map; then
    (9) Proceed north 0.2 mile along the western boundary of section 
43, T3S/R3W, to its intersection with the 240-foot contour line, 
Newberg map; then
    (10) Proceed westerly for 4 miles along the 240-foot contour line, 
crossing onto the Dundee map, to its intersection with an unnamed 
light-duty road locally known as Sullivan Lane, section 74, T3S/R3, 
Dundee map; then
    (11) Proceed south 0.25 mile along Sullivan Lane to its 
intersection with North Valley Road at elevation point 216, section 74, 
T3S/R3, Dundee map; then
    (12) Proceed west 0.1 mile along North Valley Road to its 
intersection with the 200-foot contour line, section 74, T3S/R3W, 
Dundee map; then
    (13) Proceed northwesterly 1 mile along the 200-foot contour line 
to its intersection with an unnamed creek northeast of elevation point 
215, and continue northwesterly 0.05 mile along the unnamed creek to 
its intersection with Dopp Road along the western boundary line of 
section 74, T3S/R3W, Dundee map; then
    (14) Proceed south 0.8 mile along Dopp Road to its intersection 
with North Valley Road at the elevation point 202 near the Ewing Young 
School, section 39, T3S/R3W, Dundee map; then
    (15) Proceed northerly 5 miles on North Valley Road, crossing onto 
the Laurelwood map, to the road's intersection with Laughlin Road and 
Albertson Road at elevation point 235, section 58, T2S/R3W, Laurelwood 
map; then
    (16) Proceed east 0.1 mile on Albertson Road to its intersection 
with the 240-foot contour line, section 58, T2S/R3W, Laurelwood map; 
then
    (17) Proceed northerly 15.6 miles along the 240-foot contour line 
to its intersection with Sandstrom Road, section 19, T1S/R3W, 
Laurelwood map; then
    (18) Proceed west 0.15 mile on Sandstrom Road to its third crossing 
of the 200-foot contour line, just before Fern Hill Road to the west, 
section 24, T1S/R4W, Laurelwood map; then
    (19) Proceed northwesterly and then northeasterly 4.5 miles along 
the meandering 200-foot contour line to its intersection with La 
Follette Road along the eastern boundary of section 8, T1S/R3W, 
Laurelwood map; then
    (20) Proceed south 0.25 mile on La Follette Road to its 
intersection with the 240-foot contour line, north of Blooming Fern 
Hill Road, along the western boundary line of section 16, T1S/R3W, 
Laurelwood map; then
    (21) Proceed easterly and then southerly 17 miles along the 
meandering 240-foot contour line, crossing over and back on the Scholls 
map in section 25 and 56, T1S/R3W,

[[Page 68463]]

crossing Christensen Creek in section 35, T1S/R3W, and continuing to 
the contour line's intersection with Laurel Road West, along the 
southern boundary line of section 1, T2S/R3W, Laurelwood map; then
    (22) Proceed east 0.15 mile on Laurel Road West to its intersection 
with the 200-foot contour line, along the southern boundary line of 
section 1, T2S/R3W, Laurelwood map; then
    (23) Proceed easterly 17.5 miles along the meandering 200-foot 
contour line, and, after crossing onto the Scholls map and crossing 
over Laurel Road South, McCormick Hill Road four times, and Midway 
Road, and after crossing over and back on the Newberg map (crossing 
Heaton Creek) in section 28, T2S/R2W, continue to the contour line's 
intersection with Mountain Home Road, east of Heaton Creek, section 21, 
T2S/R2W, Scholls map; then
    (24) Continue easterly and then southerly 8.9 miles along the 200-
foot contour line and, after crossing Baker Creek, skirting Laurel 
Ridge to the north, crossing onto the Beaverton map, crossing over and 
back on the Sherwood map, crossing over in the northwest corner of the 
Beaverton map, and returning to the Scholls map, continue to the 
contour line's intersection with the middle tributary of an unnamed 
creek, along the western boundary line of section 24, T2S/R2W, Scholls 
map; then
    (25) Proceed southeast along the meandering 200-foot contour line 
and, after crossing over to the northeast corner of the Newberg map to 
the Sherwood map, continue to the contour line's intersection with Edy 
Road, section 25, T2S/R2W, Sherwood map; then
    (26) Proceed southwest along the meandering 200-foot contour line 
and, after crossing onto the Newberg map, skirting part of Chicken 
Creek, and returning to the Sherwood map, continue to the contour 
line's intersection with Elwert Road, along the eastern boundary line 
of section 25, T2S/R2W, Sherwood map; then
    (27) Proceed south 0.85 mile on Elwert Road to its intersection 
with Oregon Highway 99W, along the eastern boundary line of section 36, 
T2S/R2W, Sherwood map; then
    (28) Proceed south-southwest 0.45 mile on Oregon Highway 99W to its 
intersection with the 250-foot contour line immediately south of an 
unnamed Cedar Creek tributary, section 36, T2S/R2W, Sherwood map; then
    (29) Proceed southerly 1 mile along the meandering 250-foot contour 
line to its intersection with Middleton Road, section 1, T3S/R2W, 
Sherwood map; then
    (30) Proceed southwesterly 0.5 mile on Middleton Road, which 
becomes Rein Road, to the road's intersection with the 200-foot contour 
line, immediately south of Cedar Creek, section 1, T3S/R2W, Sherwood 
map; then
    (31) Proceed 1.6 miles generally east along the 200-foot contour 
line to its intersection, in the village of Middleton, with an unnamed 
light-duty east-west road locally known as Brookman Road, section 6, 
T3S/R1W, Sherwood map; then
    (32) Proceed easterly 0.7 mile on Brookman Road to its intersection 
with the Washington-Clackamas County line, at the northwest corner of 
section 5, T3S/R1W, Sherwood map; then
    (33) Proceed east 1 mile along the Washington-Clackamas County line 
to its intersection with Brown Road, at the northeast corner of section 
5, T3S/R1W, Sherwood map; then
    (34) Proceed southerly 1 mile on Brown Road to its second 
intersection with the 250-foot contour line, immediately south of an 
intermittent stream, in section 4, T3S/R1W, Sherwood map; then
    (35) Proceed southerly 2.8 miles along the meandering 250-foot 
contour line, skirting Hoodview, to the contour line's intersection 
with Baker Road, section 16, T3S/R1W, Sherwood map; then
    (36) Proceed south 0.15 mile on Baker Road to its intersection with 
the 200-foot contour line, section 16, T3S/R1W, Sherwood map; then
    (37) Proceed southwesterly 13.1 miles along the meandering 200-foot 
contour line and, after crossing onto the Newberg map, continue to the 
contour line's intersection with Wilsonville Road, north of Willamette 
Greenway State Park, section 60, T3S/R2W, Newberg map; then
    (38) Proceed northwesterly 2 miles on Wilsonville Road to its 
intersection with an unnamed tributary of Spring Brook, east-northeast 
of Grouse Butte, section 57, T3S/R2W, Newberg map; then
    (39) Proceed southwesterly 0.25 mile along the unnamed tributary of 
Spring Brook to its intersection with the 200-foot contour line, 
section 57, T3S/R2W, Newberg map; then
    (40) Proceed westerly and then northerly 0.45 mile along the 200-
foot contour line, following the base of Grouse Butte, to the contour 
line's intersection with Wilsonville Road, section 57, T3S/R2W, Newberg 
map; then
    (41) Proceed east 0.45 mile on Wilsonville Road to its intersection 
with the same unnamed tributary of Spring Brook, section 57, T3S/R2W, 
Newberg map; then
    (42) Proceed northeasterly 0.05 mile along the unnamed tributary of 
Spring Brook to its intersection with the 250-foot contour line, 
southwest of the quarries, section 57, T3S/R2W, Newberg map; then
    (43) Proceed northerly 2.2 miles along the 250-foot contour line to 
its intersection with Corral Creek Road (misnamed Ladd Hill Road on the 
Newberg map), south of Oregon Highway 99W, section 15, T3S/R2W, Newberg 
map; then
    (44) Proceed north 0.5 mile along Corral Creek Road to its western-
most intersection with an unnamed light-duty road locally known as 
Veritas Lane, section 15, T3S/R2W, Newberg map; then
    (45) Proceed north-northwesterly in a straight line approximately 
0.05 mile and return to the beginning point.

    Signed: September 8, 2006.
John J. Manfreda,
Administrator.
    Approved: October 27, 2006.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. E6-20018 Filed 11-24-06; 8:45 am]
BILLING CODE 4810-31-P