Diablo Grande Viticultural Area (97-104)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 9

RIN 1512-AA07

[Notice No. 853]

Diablo Grande Viticultural Area (97-104)

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) has received

a petition proposing the establishment of a viticultural area located

in the western foothills of Stanislaus County, California to be known

as ``Diablo Grande.'' The proposed area occupies over 45 square miles,

or approximately 30,000 acres. The petition was submitted by Dr.

Vincent E. Petrucci, Sc.D., on behalf of the Diablo Grande Limited

Partnership, the principal property owner within the proposed

viticultural area and developers of the Diablo Grande Resort Community.

DATES: Written comments must be received by August 25, 1997.

ADDRESSES: Send written comments to : Chief, Wine, Beer, and Spirits

Regulations Branch, Bureau of Alcohol, Tobacco and Firearms, P.O. Box

50221, Washington, DC 20091-0221 (Attn: Notice No. 853). Copies of the

petition, the proposed regulations, the appropriate maps, and any

written comments received will be available for public inspection

during normal business hours at ATF Reading Room, Office of Public

Affairs and Disclosure, Room 6480, 650 Massachusetts Avenue, NW,

Washington, DC 20226.

FOR FURTHER INFORMATION CONTACT: David Brokaw, Wine, Beer and Spirits

Regulations Branch, Bureau of Alcohol, Tobacco and Firearms, 650

Massachusetts Avenue, NW, Washington, DC 20226, (202) 927-8230.

SUPPLEMENTARY INFORMATION:

Background

On August 23, 1978, ATF published Treasury Decision ATF-53 (43 FR

37672, 54624) revising regulations in 27 CFR part 4. These regulations

allow the establishment of definitive viticultural areas. The

regulations allow the name of an approved viticultural area to be used

as an appellation of origin on wine labels and in wine advertisements.

On October 2, 1979, ATF published Treasury Decision ATF-60 (44 FR

56692) which added a new part 9 to 27 CFR, for the listing of approved

American viticultural areas, the names of which may be used as

appellations of origin.

Section 4.25a(e)(1), title 27, CFR, defines an American

viticultural area as a delimited grape-growing region distinguishable

by geographic features, the boundaries of which have been delineated in

subpart C of part 9.

Section 4.25a(e)(2) outlines the procedure for proposing an

American viticultural area. Any interested person may petition ATF to

establish a grape-growing region as a viticultural area. The petition

should include:

(a) Evidence that the name of the proposed viticultural area is

locally and/or nationally known as referring to the area specified in

the petition;

(b) Historical or current evidence that the boundaries of the

viticultural area are as specified in the petition;

(c) Evidence relating to the geographical characteristics (climate,

soil, elevation, physical features, etc.) which distinguish the

viticultural features of the proposed area from surrounding areas;

(d) A description of the specific boundaries of the viticultural

area,

[[Page 34028]]

based on features which can be found on United States Geological Survey

(U.S.G.S.) maps of the largest applicable scale; and

(e) A copy (or copies) of the appropriate U.S.G.S. map(s) with the

boundaries prominently marked.

Petition

The Bureau of Alcohol, Tobacco and Firearms (ATF) has received a

petition proposing the establishment of a viticultural area located in

the western foothills of Stanislaus County, California to be known as

``Diablo Grande.'' The petition was submitted by Dr. Vincent E.

Petrucci, Sc.D., on behalf of the Diablo Grande Limited Partnership,

the principal property owner within the proposed viticultural area and

developers of the Diablo Grande Resort Community. The proposed area

occupies over 45 square miles, or approximately 30,000 acres. According

to the petitioner, currently there are 35 acres of grapes planted with

an additional 17 acres planned for 1997. The petitioner claims that the

proposed area can accommodate an additional 2700 acres of future grape

plantings.

Evidence That the Name of the Area is Locally or Nationally Known

According to the petitioner, the name, ``Diablo Grande,'' has been

given to this proposed viticultural area because of its proximity to

Mount Diablo, the highest mountain peak of the Pacific Coast mountain

range. The petitioner claims that the name, ``Diablo Grande,'' has

become well-known to the residents of California, and perhaps the

nation, because of a multitude of newspaper articles regarding

development of the destination resort and residential community in the

proposed viticultural area. The resort community has been in existence

since the early 1990s. To support the name, the petitioner provided

copies of 21 newspaper articles. With the exception of the Golf Course

Report, Alexandria, Virginia, all of the articles are from local

California newspapers. These articles discuss the development of the

resort and the difficulties encountered by the developers in obtaining

approval for, and completion of, construction.

There is, however, some evidence that the area occupied by the

resort was historically known as the ``Oak Flats Valley.'' Many of the

articles submitted by the petitioner refer to the area as the ``Oak

Flats Valley Ranch'' or the ``Oak Flats Valley.'' No evidence was

provided that the area was tied to Mount Diablo prior to the

development of the resort. It should be noted that Mount Diablo is

several counties north of Stanislaus County, the location of the

proposed area. Therefore, despite the fact the petitioner submitted

some evidence justifying the use of the name ``Diablo Grande'' for the

proposed area, ATF is soliciting comments on the propriety of using

this name.

Historical or Current Evidence That the Boundaries of the Viticultural

Area Are as Specified in the Petition

As evidence that the boundaries of the proposed viticultural area

are as specified in the petition, the petitioner submitted a map

titled, ``Stanislaus County Vicinity Map'' drawn by Thompson-Hysell

Engineers. The petitioner also submitted a newspaper article from The

Modesto Bee dated June 28, 1993, showing the boundary area (map) in

respect to Interstate Highway 5, the city of Patterson, the City of

Newman, and the Santa Clara County line. The border for ``Diablo

Grande'' illustrated on the ``Stanislaus County Vicinity Map'' and the

maps in the newspaper article are non specific, giving the general

location within Stanislaus County, California. The Modesto Bee article

describes the site as being located about five miles west of Interstate

5 and seven miles southwest of Patterson consisting of gently sloping

hills to steep ridges in the Diablo Range, an eastern arm of the Coast

Ranges. The article further describes the site as encompassing portions

of three major watersheds--Orestimba, Crow, and Salado Creeks.

Evidence Relating to the Geographical Features (Climate, Soil,

Elevation, Physical Features, etc.) Which Distinguish Viticultural

Features of the Proposed Area From Surrounding Areas

Climate

According to the petitioner, in December, 1990, an automata weather

station was installed at the ``Diablo Grande'' test vineyard site by

Dr. Charles F. Krauter, professor of soils and water in the Department

of Plant Science, California State University, Fresno, California. The

recorded data from the weather station includes temperature (maximum,

minimum, average, and degree days), rainfall, humidity, solar

radiation, wind (speed and direction), and evapotranspiration rate.

The petitioner states that while the above parameters of climate

are very important, wine grape regions have been classified according

to heat summation units called degree days. The petitioner provided a

table of heat summation in degree days illustrating the contrast in

temperature between the proposed viticultural area and areas

immediately outside the proposed area. The data was taken from four

separate weather stations located in Newman (10 miles east), Westley

(10 miles north), Tracy (25 miles north) and Modesto (30 miles

northeast). The petitioner chose these areas because they were the

closest areas with climate records. According to the table, ``Diablo

Grande'' is 384 degree days warmer than Modesto, 191 degree days cooler

than Newman, 243 degree days cooler than Tracy, and 1022 degree days

cooler than Westley. Based on this data the petitioner claims that the

grapes from the proposed viticultural area would mature slightly

earlier than those grown in Modesto and would mature slightly later

than grapes grown in Newman, Westley, or Tracy.

The petitioner has submitted a four year record of rainfall

spanning from 1992 to 1995 for the proposed viticultural area. The

petitioner provided a table illustrating the contrast in monthly and

annual rainfall in inches between the proposed area and areas

immediately outside of the proposed area. The rainfall data shows that

the proposed area has an annual rainfall 13.8% to 22.6% higher than the

other four areas (Newman, Westley, Modesto, and Tracy). The petitioner

claims that the higher rainfall in the proposed viticultural area is

due to its higher elevation (800 to 2600 feet) as compared to the other

four areas which range in elevation from 40 to 300 feet. According to

the petitioner, rainfall generally occurs during the winter in all five

areas, with little or no rainfall during the summer months.

According to the petitioner, due to its elevation and the

protective mountains, the proposed area lies above the fog belt in

contrast with areas immediately outside of the proposed area. In the

Newman, Patterson, and Westley areas, fog is a common occurrence

throughout the rainy season in all but the foothill regions. The

petitioner claims that the absence of fog in the proposed area is a

unique feature which promotes a much higher quantity of solar radiation

resulting in the rate of photosynthesis being maximized providing for

better vine growth and a greater leaf canopy surface.

According to the petitioner, the predominant wind directions are

from northeast to northwest in the proposed viticultural area due to

the orientation of the many mini-valleys encompassing the area and the

wind deflection caused by the hills surrounding these mini-valleys. The

petitioner claims that this is a unique feature of the proposed

viticultural area's micro-climate as

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contrasted with the Newman/Westley areas where the reverse is true with

the predominant winds coming from the northwest, typical of the flat

lands outside of the proposed viticultural area's perimeter.

Soils

According to the petitioner, the soil characteristics of the

proposed viticultural area are not only different and distinct from

those of the lower foothills and Central Valley to the east and north,

but they are also different from other areas of the Diablo Range to the

south and west of the proposed viticultural area.

The petitioner provided a general description of the soils in the

form of a report entitled, ``Diablo Grande Specific Plan Draft

Environmental Impact Report'' prepared by LSA Associates, Inc., Pt.

Richmond, California for the Stanislaus County Department of Planning

and Community Development. The petitioner also submitted a report from

the Soil Conservation Service which recently mapped soils within the

proposed viticultural area and identified 16 major soil types.

Finally, the petitioner states that extensive soil sampling and

detailed analysis (both physical and chemical) have been conducted at

two different locations within the proposed viticultural area.

According to the petitioner, in December of 1989, thirteen samples were

taken at various sites in the vicinity of the Oak Flat Ranch. In May of

1996, fourteen samples from Isom Ranch were collected and analyzed. A

copy of these analysis was included with the petition.

The petitioner claims that these reports show that a majority of

the soils found in the proposed viticultural area are composed of the

following series listed in approximate order of occurrence: Arburua

loam, Wisflat sandy loam, Contra Costa clay loam, and San Timoteo sandy

loam, with lesser amounts of Zacharias clay loam and gravelly clay

loam. According to the petitioner, most of the soils are complexes made

up of two or more of these series as well as occasional rock outcrops

of exposed sandstone and shale. The petitioner claims that in these

complexes, the soil series are so intimately intermixed that it is not

practical to separate them geographically.

The petitioner asserts that the reports show that the soils within

the proposed viticultural area typically have slopes ranging from 30%

to 75% and elevations from 400 to 2700 feet. An exception is the

relatively minor Zacharias series which has slopes of 2% to 5% and

elevations of 200 to 400 feet. The soils in the proposed viticultural

area are derived from sandstone and vary from shallow to very deep with

most of the complexes showing moderate depth. The soils are well-

drained to somewhat excessively-drained. Permeability varies from slow

to moderately rapid, surface run-off rates are rapid and, according to

the petitioner, the potential for water erosion can be severe. The

petitioner provided a table giving a complete description of the

characteristics for each soil type.

In contrast to the soils of the proposed viticultural area, the

petitioner claims that the soils of the surrounding areas are largely

composed of different soil series with different characteristics,

including elevations and slopes. The petitioner provided an exhibit

defining the various soil series and soil types, and an exhibit with

aerial photographic maps showing soil type location by map numbers.

While most of the soil series which are found within the proposed

viticultural area can also be found in the nearby surrounding areas,

the petitioner claims that these series represent very small portions

of the total in those surrounding areas. Additionally, the petitioner

states that many of the soil series which make up the major soil types

of the surrounding areas are not found at all within the proposed area.

The petitioner states that these soil types include Capay clay,

Vernalis clay loam, Stomar clay loam, Chaqua clay loam, Calla clay

loam, Carbona clay, Alo clay, Vaquero clay, El Salado loam and fine

sandy loam. According to the petitioner, these series are found to the

east and north of the proposed viticultural area. The petitioner states

that most of these series have slopes of 0% to 2% and elevations of 25

to 400 feet with four of these series having slopes up to 8%, 15%, 30%,

and 50% respectively and elevations from 300 to 1600 feet.

The petitioner states that there is another major difference

between the proposed viticultural area soils and most of those to the

east and north. The ``Diablo Grande'' soils are residual soils formed

from sedimentary deposits of sandstone and calcareous sandstone while

most of the surrounding soils are from alluvial deposits of mixed rock

parent material having lower slopes and elevations.

According to the petitioner, the area surrounding the proposed

viticultural area to the west and south includes the Orestimba Creek

Canyon beyond which lies a more rugged portion of the Diablo Range.

Much of the land directly west of the proposed area is part of the

Henry W. Coe State Park and although this area includes some of the

same soil series as the proposed area, there are also many new series

including Gonzaga clay, Honker clay, Franciscan clay loam, Vellecitos

clay, Gaviota gravelly loam, Henneke clay, Hentine loam, and Hytop

clay. The petitioner states that these soils generally have slopes of

30% to 75% and elevations of 700 to 3300 feet.

According to the petitioner, the results of these soil analyses and

the characteristics of the soil types found in the proposed

viticultural area, in combination with the climate and topography and

the use of drip irrigation, not only make the proposed viticultural

area suitable for the production of wine grapes but also make it a

unique and singular viticultural area which is completely distinctive

from the surrounding area.

Topography

According to the petitioner, the geography of the proposed

viticultural area sets it apart from the surrounding areas in several

respects. Three main water courses traverse the area: Salado Creek,

Crow Creek, and Orestimba Creek. Salado and Crow Creek traverse the

area from the vicinity of Mikes Peak along the western boundary of the

proposed area, northeast and east respectively, toward Interstate 5.

Orestimba Creek traverses the southwestern and southern boundary line

as it flows eastward.

The petitioner claims that current vineyard plantings are at

elevations ranging from 1000 feet msl near the vineyard located in the

vicinity of the Oak Flat Ranch to 1800 feet msl at the Isom Ranch. The

petitioner states that these vineyard site elevations are the highest

elevations where grapes are grown in Stanislaus County. The petitioner

contrasts this with other Stanislaus County vineyards outside the

proposed area where grapes are grown at elevations ranging from 70 to

90 feet at Modesto to 300 to 340 feet at the base of the foothills near

Patterson where a newly planted vineyard (1996) of 90 acres exists

approximately 4.2 miles east of the proposed viticultural area

boundary. The petitioner distinguishes this vineyard site from the

proposed viticultural area by noting that the Patterson site is 340

feet lower and has a soil type which is all Vernalis-Zacharias complex

with 0% to 2% slopes. The petitioner claims that these conditions do

not exist in the proposed viticultural area.

The petitioner also notes that the topographic features of the

proposed viticultural area include many ``mini-

[[Page 34030]]

valleys'' as a result of its mountainous structure. The petitioner

states that this provides several attributes not found in the vineyards

planted on the flat lands in the interior of Stanislaus County. Grapes

grown on the terraced hillsides of the proposed area are subject to a

mesoclimate (or topoclimate or site climate) which can vary from the

general macroclimate due to differences mainly in elevation and slope.

Thus, according to the petitioner, site selection becomes an important

feature when working with this type of topography as contrasted to the

flat lands of 1% to 2% slopes. According to the petitioner, there is

the opportunity to grow grapes on slopes (15%-30%) that have western,

eastern, southern, or northern exposure or any combination of all four

slope exposures.

According to the petitioner, while degree days associated with a

macroclimate may be similar to that of a mesoclimate, it is the makeup

of the mesoclimate of the proposed viticultural area that makes its

climate different from that of the surrounding areas. The petitioner

provided a diagram purporting to show how mesoclimates are influenced

by sloping contour topography. According to the petitioner, the

southern and western slopes receive a greater exposure to sunshine and,

therefore, accumulate more heat units than the northern or eastern

slopes. The petitioner claims that it is this difference in sunshine

and heat that makes the proposed viticultural area's mesoclimate.

According to the petitioner, grapes grown on all four slope exposures,

when harvested together and crushed as one lot, make wines that differ

considerably from grapes grown on the lower elevation flat lands. The

petitioner claims that this is the key factor which makes the proposed

viticultural area wines distinct from those of the surrounding area. In

support of this claim the petitioner provided several letters from

staff members at the Viticulture and Enology Research Center,

California State University, Fresno and winemakers. These letters

indicate that wines made from grapes grown in the proposed viticultural

area exhibit characteristics distinctive enough to deserve

consideration for a specific appellation.

Boundaries

The boundary of the proposed viticultural area may be found on four

United States Geological Survey Quadrangle 7.5 minute series

(Topographic) maps, entitled Patterson Quadrangle, California--

Stanislaus Co., Copper Mtn. Quadrangle, California--Stanislaus Co.,

Wilcox Ridge, California, Stanislaus Co., and Orestimba Peak,

California--Stanislaus Co.

Public Participation--Written Comments

ATF requests comments from all interested persons. Comments

received on or before the closing date will be carefully considered.

Comments received after that date will be given the same consideration

if it is practical to do so. However, assurance of consideration can

only be given to comments received on or before the closing date.

ATF is particularly interested in comments concerning the propriety

of using the name ``Diablo Grande'' for this proposed viticultural area

since there appears to be no evidence that this name was associated

with this area prior to the construction of the resort.

ATF will not recognize any submitted material as confidential and

comments may be disclosed to the public. Any material which the

commenter considers to be confidential or inappropriate for disclosure

to the public should not be included in the comments. The name of the

person submitting a comment is not exempt from disclosure.

Comments may be submitted by facsimile transmission to (202) 927-

8602, provided the comments: (1) are legible; (2) are 8\1/2\'' x 11''

in size, (3) contain a written signature, and (4) are three pages or

less in length. This limitation is necessary to assure reasonable

access to the equipment. Comments sent by FAX in excess of three pages

will not be accepted. Receipt of FAX transmittals will not be

acknowledged. Facsimile transmitted comments will be treated as

originals.

Any person who desires an opportunity to comment orally at a public

hearing on the proposed regulation should submit his or her request, in

writing, to the Director within the 60-day comment period. The

Director, however, reserves the right to determine, in light of all

circumstances, whether a public hearing will be held.

After consideration of all comments and suggestions, ATF may issue

a Treasury decision. The proposals discussed in this notice may be

modified due to comments and suggestions received.

Paperwork Reduction Act

The provisions of the Paperwork Reduction Act of 1995 (44 U.S.C.

3507 (j)) and its implementing regulations, 5 CFR part 1320, do not

apply to this notice because no requirement to collect information is

proposed.

Regulatory Flexibility Act

It is hereby certified that this proposed regulation will not have

a significant economic impact on a substantial number of small

entities. Any benefit derived from the use of a viticultural area name

is the result of the proprietor's own efforts and consumer acceptance

of wines from a particular area. No new requirements are proposed.

Accordingly, a regulatory flexibility analysis is not required.

Executive Order 12866

It has been determined that this proposed regulation is not a

significant regulatory action as defined in Executive Order 12866.

Accordingly, this proposal is not subject to the analysis required by

this Executive order.

Drafting Information

The principal author of this document is David W. Brokaw, Wine,

Beer, and Spirits Regulations Branch, Bureau of Alcohol, Tobacco and

Firearms.

List of Subjects in 27 CFR Part 9

Administrative practices and procedures, Consumer protection,

Viticultural areas, Wine.

Authority and Issuance

Title 27, Code of Federal Regulations, part 9, American

Viticultural Areas, is proposed to be amended as follows:

PART 9--AMERICAN VITICULTURAL AREAS

Paragraph 1. The authority citation for part 9 continues to read as

follows:

Authority: 27 U.S.C. 205.

Subpart C--Approved American Viticultural Areas

Par. 2. Subpart C is amended by adding Sec. 9.156 to read as

follows:

Sec. 9.156 Diablo Grande.

(a) Name. The name of the viticultural area described in this

section is ``Diablo Grande.''

(b) Approved maps. The appropriate maps for determining the

boundary of the Diablo Grande viticultural area are the following four

U.S.G.S. Quadrangle 7.5 Minute Series (Topographic) maps. They are

titled:

(1) Patterson Quadrangle, California--Stanislaus Co., 1953

(Photorevised 1971, Photoinspected 1978).

(2) Copper Mtn. Quadrangle, California--Stanislaus Co., 1953 (Field

Check 1956, Aerial Photo 1971).

(3) Wilcox Ridge, California--Stanislaus Co., 1956 (Photorevised

1971).

[[Page 34031]]

(4) Orestimba Peak, California--Stanislaus Co., 1955 (Photorevised

1971).

(c) Boundary. The Diablo Grande viticultural area is located in the

western foothills of Stanislaus County, California. The beginning point

is at Reservoir Spillway 780 in section 8, Township 6 South, Range 7

East (T. 6S., R. 7E.) on the Patterson Quadrangle U.S.G.S. map.

(1) Then proceed northwest to Salt Grass Springs to the point where

the 1000 foot contour line crosses the northern section line of section

9, T. 6S., R. 6E., on the Copper Mtn., Quadrangle U.S.G.S. map.

(2) Then proceed due south past Copper Mountain in section 16, T.

6S., R. 6E., to Mikes Peak in section 4, T. 7S., R. 6E., on the Wilcox

Ridge Quadrangle U.S.G.S. map.

(3) Then proceed due west to Oristimba Creek in section 6, T. 7S.,

R. 6E.

(4) Then proceed following Orestimba Creek south/southeast and then

east/northeast to the point where Orestimba Creek meets Bench Mark #340

in section 28, T. 7S., R. 7E., on the Orestimba Peak Quadrangle

U.S.G.S. map.

(5) Then proceed northwest to the point of beginning at Reservoir

Spillway 780 in section 8, T. 6S., R. 7E.

Signed: June 13, 1997.

John W. Magaw,

Director.

[FR Doc. 97-16491 Filed 6-23-97; 8:45 am]

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