[Federal Register Volume 74, Number 12 (Wednesday, January 21, 2009)]
[Rules and Regulations]
[Pages 3422-3425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-990]



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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2008-0003; T.D. TTB-73; Re: Notice No. 82]
RIN 1513-AB51


Establishment of the Snipes Mountain Viticultural Area (2007R-
300P)

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

ACTION: Final rule; Treasury decision.

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SUMMARY: This Treasury decision establishes the 4,145-acre ``Snipes 
Mountain'' viticultural area in Yakima County, Washington. 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 Dates: February 20, 2009.

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; phone 415-271-1254.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 
27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe 
regulations for the labeling of wine, distilled spirits, and malt 
beverages. The FAA Act requires that these regulations, among other 
things, prohibit consumer deception and the use of misleading 
statements on labels, and ensure that labels provide the consumer with 
adequate information as to the identity and quality of the product. The 
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the 
regulations promulgated under the FAA Act.
    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 geographical 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.

Snipes Mountain Petition

    Mr. Todd Newhouse, of the Upland Winery in Outlook, Washington, 
submitted a petition proposing the establishment of the Snipes Mountain 
viticultural area on behalf of the grape growers in the Snipes Mountain 
area. The proposed viticultural area covers 4,145 acres, and currently 
has 535 acres of commercial vineyards. According to USGS maps that the 
petitioner provided, Snipes Mountain lies north of the Yakima River, 
between the towns of Granger and Sunnyside, in Yakima County, 
Washington. [TTB notes that the proposed viticultural area lies 
entirely within the Yakima Valley viticultural area (27 CFR 9.69) and 
also entirely within the larger Columbia Valley viticultural area (27 
CFR 9.74).] According to the petitioner, the principal distinguishing 
features of the proposed viticultural area are Snipes Mountain itself, 
a singular landform rising from the floor of the Yakima Valley, and its 
comparatively unique, rocky soils. The proposed viticultural area also 
includes Harrison Hill, east of Snipes Mountain. Harrison Hill has 
similar soils, and its topography is contiguous with the elevation 
lines of Snipes Mountain.

Name Evidence

    The petition cites ``The Pacific Northwesterner'' (Fall 1959, 
reprinted as Essay 7265 on http://www.HistoryLink.org) in explaining 
that in the late 1850s, Ben Snipes built a house at the base of a 
mountain, later known as Snipes Mountain, and developed an expansive 
cattle operation. Since the early 1900s, the Snipes Mountain Irrigation 
District has provided water to the region. According to the USGS 
Sunnyside quadrangle map, the main water canal, the Snipes Mountain 
Lateral, lies to the north of Snipes Mountain. The USGS Granger and 
Sunnyside quadrangle maps identify Snipes Mountain as an elevated 
landform between the Yakima River to the south and a single railroad 
line and Interstate 82 to the north.

Boundary Evidence

    The petitioner states that growers began establishing vineyards on 
Snipes Mountain and adjacent Harrison Hill between 1914 and 1917, 
citing ``The Wine Project: Washington State's Winemaking History'' by 
R. Irvine and W. Clore (Sketch Publications, 1997). The second oldest 
cabernet sauvignon vines in Washington State have been growing for some 
40 years in vineyards on Harrison Hill. These vines have been producing 
award-winning wines for 15 years. On Snipes Mountain, the Upland 
Winery, which operated from 1934 to 1972, is being reestablished as a 
historic winery. Within the current 535 acres of vineyards in the 
proposed viticultural area, a total of 25 varietals are grown.
    According to the written boundary description and USGS maps 
provided with the petition, the boundary line of the proposed Snipes 
Mountain viticultural area lies between the 750- to 820-foot elevation 
lines, thus encompassing the mountain from those elevations to its 
peak. The USGS maps show that the proposed viticultural area is on 
elevated terrain, and comprises vineyards, orchards, roads, trails, a 
reservoir, intermittent streams, gravel pits, buildings, and a winery. 
The proposed viticultural area is surrounded by generally flat Yakima 
Valley terrain

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that, in areas, dips to approximately 700 feet in elevation. The Yakima 
River flows adjacent to the southwestern portion of the proposed 
viticultural area boundary line before turning to the south. The 
petitioner notes that at elevations below the 750-foot contour line the 
valley is flatter, and has ponds and other cold air sinks that are 
unsuitable for viticulture.
    According to the written boundary description and USGS maps, 
Harrison Hill borders Snipes Mountain in the eastern portion of the 
proposed Snipes Mountain viticultural area. According to the 
petitioner, the soils on Harrison Hill are similar to the dominant 
soils in the rest of the proposed viticultural area. The petitioner 
explains that the 132 acres on the south-facing slopes of Harrison Hill 
are suitable for successful viticulture and claims that the vineyards 
on Harrison Hill ``are the most important acres we grow.'' Other 
portions of Harrison Hill contain residential developments and are thus 
not suitable for commercial viticulture.

Distinguishing Features

    According to the petitioner, the distinguishing features of the 
proposed Snipes Mountain viticultural area include an elevated 
topography that is steep in places and a geologic history that 
contrasts with that of the surrounding Yakima Valley area. According to 
USGS and digital maps provided with the petition, Snipes Mountain 
stands alone in the center of the wide Yakima Valley like the crown of 
a brimmed hat. The petitioner notes that the Snipes Mountain region 
comprises the Ellensburg Formation. This formation consists of alluvial 
outwash, the parent material of the unique soils in the Snipes Mountain 
region.
Topography
    The petitioner describes Snipes Mountain and adjacent Harrison Hill 
as rising visibly from the Yakima Valley floor. The USGS Sunnyside and 
Granger maps show that the 1,301-foot pinnacle of Snipes Mountain 
contrasts with the 680- to 780-foot elevations of the surrounding 
valley floor. The petitioner notes that about a third of the Yakima 
Valley viticultural area is level, and cites the digital elevation maps 
of the Yakima Valley and Snipes Mountain from Washington State 10m 
Digital Elevation Model data.
    According to the petitioner, the north side slopes of Snipes 
Mountain gradually increase in elevation but the south side slopes are 
steeper. As shown on USGS maps, the south side slopes increase from 850 
to 1,200 feet in elevation over a short distance. The petitioner 
explains that these steeper slopes are suited to viticulture because 
they have good air drainage, which helps to prevent spring and fall 
frost damage to the plants in the vineyards.
Geology and Soils
    The petitioner notes that, according to the Washington Division of 
Geology and Earth Resources, the geology of central Washington consists 
mainly of a volcanic basalt mantle 10 to 15 million years old (``Late 
Cenozoic Structure and Stratigraphy of South-Central Washington,'' by 
S.P. Reidel, N.P. Campbell, K.R. Fecht, and K.A. Lindsey, Bulletin 80, 
pp. 159-180, 1994). Further study shows that subsequent alluvial events 
covered portions of the Yakima Valley, creating the Ellensburg 
Formation (``Sedimentology of proximal volcaniclastics dispersed across 
an active foldbelt: Ellensburg formation (late Miocene), central 
Washington,'' by G.A. Smith, Sedimentology 35: 953-997, 1988). The 
Ellensburg Formation consists of a conglomerate of round, river-washed 
rocks and coarse sediment; tectonic uplift in the Ellensburg Formation 
created Snipes Mountain (Reidel et al.).
    The petitioner describes the soils in the proposed viticultural 
area based on the Soil Survey of the Yakima County Area, Washington 
(U.S. Department of Agriculture, Soil Conservation Service, 1985). The 
petitioner also provides a table that compares soil series in the 
established Yakima Valley viticultural area with those in the proposed 
Snipes Mountain viticultural area. This comparison, based on parent 
material of the soils, shows that the soils in each region formed under 
differing geological events. The petitioner explains that almost all 
soils on Snipes Mountain, deposited by an ancient flood, now generally 
are dry. The soils on the mountain also are older and have more rock 
fragments than those elsewhere in the Yakima Valley region.
    According to the petition, one third of the soils in the Yakima 
Valley viticultural area formed in alluvium and 30 percent of the soils 
formed in loess over lacustrine deposits. In contrast, within the 
proposed Snipes Mountain viticultural area only 3.32 percent of the 
soils formed in alluvium. These soils are of small extent because 
tectonic uplift exposed the southwest face of Snipes Mountain, lifting 
it above the influence of additional alluvial deposits. Warden soils 
formed in loess over lacustrine deposits, and these soils cover 53 
percent of the proposed Snipes Mountain viticultural area. Typically, 
these soils are on the north- and northeast-facing slopes, in positions 
where the parent material was in place prior to tectonic uplift. The 
Harwood-Burke-Wiehl soils comprise 13.6 percent of the soils in the 
proposed viticultural area, compared to less than 1 percent of the 
entire Yakima Valley viticultural area.
    On Snipes Mountain 82 percent of the soils are classified as 
Aridisols, which are soils low in organic matter and found in generally 
dry areas. In the Yakima Valley 47 percent of the soils are classified 
as Aridisols, but 43 percent are classified as Mollisols, which are 
soils that have a deep, dark surface horizon and a high organic matter 
content. Typically, Mollisols are in low lying areas near ground water 
that supplies moisture to plants ultimately increasing the accumulation 
of organic matter.
    According to the petitioner, vineyards on the south-facing slopes 
of Harrison Hill have produced highly valued grapes. The soils on 
Harrison Hill and Snipes Mountain are similar. The steeper, south-
facing slopes of Snipes Mountain provide good air drainage to prevent 
spring and fall frost damage to the grapevines.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 82 regarding the proposed Snipes Mountain 
viticultural area in the Federal Register (73 FR 22883) on April 28, 
2008. In that notice, TTB invited comments by June 27, 2008, from all 
interested persons. We expressed particular interest in receiving 
comments on whether the proposed area name, Snipes Mountain, would 
result in a conflict with currently used brand names. We also solicited 
comments on the sufficiency and accuracy of the name, boundary, 
climatic, and other required information submitted in support of the 
petition. We received six comments from individuals in response to that 
notice. Five comments supported the establishment of the Snipes 
Mountain viticultural area as originally proposed. One commenter 
expressed concern ``with confusion that may be caused by the name, 
Snipes Mountain, with a premium vineyard that is not in the proposed 
[viticultural area] but is very close to it * * * Snipes Canyon.'' TTB 
notes that in Notice No. 82 we proposed only the full name of the 
viticultural area, ``Snipes Mountain,'' as a term of viticultural 
significance. TTB believes ``Snipes Mountain'' is readily 
distinguishable from ``Snipes Canyon.'' Further, TTB is not aware of 
any conflict with existing brand labels that

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would occur if the viticultural area is established as proposed.
    TTB, with the consent of the petitioner, has made a minor 
adjustment to the proposed southern boundary of the Snipes Mountain 
viticultural area. To simplify the boundary description, we have 
removed from the proposed viticultural area a few acres of non-
agricultural land located south of the Union Pacific railroad line in 
section 27, T10N, R21E, near the town of Granger. We also rewrote other 
portions of the proposed boundary description for better clarity and 
conciseness.

TTB Finding

    After careful review of the petition and the comments received, TTB 
finds that the evidence submitted supports the establishment of the 
proposed viticultural area. Therefore, under the authority of the 
Federal Alcohol Administration Act and part 4 of our regulations, we 
establish the ``Snipes Mountain'' viticultural area in Yakima County, 
Washington, effective 30 days from the publication date of this 
document.

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, ``Snipes 
Mountain,'' is recognized under 27 CFR 4.39(i)(3) as a name of 
viticultural significance. The text of the new regulation clarifies 
this point by specifying ``Snipes Mountain'' as a term of viticultural 
significance for purposes of part 4 of the TTB regulations.
    Once this final rule becomes effective, wine bottlers using 
``Snipes Mountain'' 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 full 
name as an appellation of origin.
    For a wine to be eligible to use a viticultural area name or other 
term of viticultural significance as an appellation of origin or in a 
brand name, 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 for labeling with the viticultural area name or 
other viticulturally significant term 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 viticulturally 
significant 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 previously approved label uses the name 
``Snipes Mountain'' for a wine that does not meet the 85 percent 
standard, the previously approved label will be subject to revocation, 
upon the effective date of the establishment of the Snipes Mountain 
viticultural area.
    Different rules apply if a wine has a brand name containing a 
viticultural area name or other term of viticultural significance 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. 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.  9.213 to read as follows:


Sec.  9.213  Snipes Mountain.

    (a) Name. The name of the viticultural area described in this 
section is ``Snipes Mountain''. For purposes of part 4 of this chapter, 
``Snipes Mountain'' is a term of viticultural significance.
    (b) Approved maps. The two United States Geological Survey 1:24,000 
scale topographic maps used to determine the boundary of the Snipes 
Mountain viticultural area are titled:
    (1) Sunnyside, Wash., 1965, photo revised 1978; and
    (2) Granger, Wash., 1965.
    (c) Boundary. The Snipes Mountain viticultural area is located in 
Yakima County, Washington. The boundary of the Snipes Mountain 
viticultural area is as described below:
    (1) The beginning point is on the Sunnyside map, to the southwest 
of the town of Sunnyside, at the intersection of South Hill Road and 
the eastern boundary of section 34, T10N, R22E. From the beginning 
point, proceed south along the eastern boundary of section 34 for less 
than 0.1 mile to its intersection with the 750-foot elevation line, 
T10N, R22E; then
    (2) Proceed along the 750-foot elevation line, first southeasterly 
then westerly, to its first intersection with the Union Pacific 
railroad line in section 31, T10N, R22E; then
    (3) Proceed west-northwesterly along the Union Pacific railroad 
line, crossing onto the Granger map, and continue along the railroad 
line to its intersection with the northern boundary of section 27, 
T10N, R21E; then
    (4) Proceed north in a straight line for less than 0.1 mile to the 
line's intersection with the 820-foot elevation line in section 22, 
T10N, R21E; then
    (5) Proceed along the meandering 820-foot elevation line, first 
northwesterly then easterly, and, returning to the Sunnyside map, 
continue along the elevation line to its intersection with the northern 
boundary of section 34, T10N, R22E; then
    (6) Proceed east along the northern boundary line of section 34 and 
then section 35 to its intersection with the 820-foot elevation line, 
section 35, T10N, R22E; then
    (7) Proceed southwesterly along the 820-foot elevation line to its 
intersection with the eastern boundary of section 34, T10N, R22E; and 
then
    (8) Proceed south along the eastern boundary of section 34 for

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approximately 0.2 mile, returning to the point of beginning.

    Signed: December 5, 2008.
John J. Manfreda,
Administrator.
    Approved: December 19, 2008.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. E9-990 Filed 1-16-09; 8:45 am]
BILLING CODE 4810-31-P