Diablo Grande Viticultural Area (97-104)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 9

[TD ATF-399; Re: Notice No. 853]

RIN 1512-AA07

Diablo Grande Viticultural Area (97-104)

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF) Treasury.

ACTION: Treasury decision, final rule.

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SUMMARY: This Treasury decision establishes a viticultural area located

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

as ``Diablo Grande'' under 27 CFR part 9. The viticultural area

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

viticultural area is the result of a petition submitted by Dr. Vincent

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

the principal property owner within the viticultural area and

developers of the Diablo Grande Resort Community.

EFFECTIVE DATE: August 21, 1998.

FOR FURTHER INFORMATION CONTACT: David W. Brokaw, Regulations Division,

Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, NW,

Washington, DC 20226, (202) 927-8199.

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 geographical 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, 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

Dr. Vincent E. Petrucci, Sc.D., petitioned ATF on behalf of the

Diablo Grande Limited Partnership, for the establishment of a new

viticultural area located in the western foothills of Stanislaus

County, California, to be known as ``Diablo Grande.'' The Diablo Grande

Limited Partnership is the principal property owner within the proposed

viticultural area and the developer of the Diablo Grande Resort

Community. The viticultural area occupies over 45 square miles, or

approximately 30,000 acres. Currently there are 35 acres of grapes

planted with an additional 17 acres planned for 1997. The petitioner

claims that the area can accommodate an additional 2700 acres of future

grape plantings.

Comments

A Notice of Proposed Rulemaking, Notice No. 853 (62 FR 34027) was

published in the Federal Register on June 24, 1997, requesting comments

from all interested persons concerning the proposed ``Diablo Grande''

viticultural area. No comments were received in response to this

notice.

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

``Diablo Grande,'' is the name of the destination resort and

residential community that occupies the viticultural area. The

petitioner stated that this name was given to the area because of its

proximity to Mount Diablo, the highest peak of the Pacific Coast

mountain range. Mount Diablo is located 38-40 miles due north of the

proposed area. The petitioner emphasized the fact that the proposed

area lies in the Diablo Mountain Range, which extends from Mount Diablo

State Park in Contra Costa County to the south of and beyond the

proposed ``Diablo Grande'' viticultural area located in Stanislaus

County. There is evidence that the name, ``Diablo Grande,'' has become

associated with the area by both the residents of California, and

perhaps the nation, as a result of the development of the destination

resort and residential community. The resort community has been in

existence since the early 1990s. As evidence that the area is known as

``Diablo Grande,'' the petitioner submitted copies of 21 newspaper

articles that discuss the development of the resort. With the exception

of the Golf Course Report, Alexandria, Virginia, all of the articles

are from local California newspapers.

There is also evidence that the area occupied by the resort was

historically known as the ``Oak Flats Valley.'' A working ranch, known

as the Oak Flats Valley Ranch once occupied this land. Many of the

newspaper 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. Accordingly, ATF solicited comments in

Notice No. 853 on whether the use of the name ``Diablo Grande'' was

proper for this area. No comments were received on this issue.

Consequently, based on the evidence submitted by the petitioner, ATF

believes the name ``Diablo Grande'' is now associated with the area.

[[Page 33851]]

Historical or Current Evidence That the Boundaries of the

Viticultural Area Are as Specified in the Petition

As evidence that the boundaries of the viticultural area are as

specified in the petition, the petitioner submitted a map titled,

``Stanislaus County Vicinity Map'' drawn by Thompson-Hysell Engineers.

A more detailed map entitled ``Concept Plan Diablo Grande,'' prepared

by T.R.G. Land Resources, Inc., was also submitted. In addition, the

petitioner 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'' is illustrated on

the ``Stanislaus County Vicinity Map'' and the maps in the newspaper

article giving the 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 Area From Surrounding Areas

Climate

The petitioner provided a table of heat summation in degree days

illustrating the contrast in temperature between the viticultural area

and areas immediately outside the viticultural 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, the

``Diablo Grande'' viticultural area is 384 degree days warmer than

Modesto, 191 degree days cooler than Newman, 243 degree days cooler

that Tracy, and 1022 degree days cooler than Westley.

The petitioner submitted a four year record of rainfall spanning

from 1992 to 1995 for the viticultural area. The petitioner also

provided a table illustrating the contrast in monthly and annual

rainfall in inches between the ``Diablo Grande'' viticultural area and

areas immediately outside of the viticultural area. The rainfall data

shows that the ``Diablo Grande'' viticultural area has an annual

rainfall 13.8% to 22.6% higher that the other four areas (Newman,

Westley, Modesto, and Tracy). The higher rainfall in the 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.

Rainfall generally occurs during the winter in all five areas, with

little or no rainfall during the summer months.

Due to its elevation and the protective mountains, the viticultural

area lies above the fog belt in contrast with areas immediately outside

of the viticultural area. In the Newman, Patterson, and Westley areas,

fog is a common occurrence throughout the rainy season in all but the

foothill regions.

The predominant wind directions are from northeast to northwest in

the ``Diablo Grande'' 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. This is a unique feature

of the viticultural area's micro-climate as 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

viticultural area's perimeter.

Soils

The soil characteristics of the ``Diablo Grande'' 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

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

viticultural area and identified 16 major soil types.

Extensive soil sampling and detailed analysis (both physical and

chemical) have been conducted at two different locations within the

viticultural area. 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

this analysis was included with the petition.

These reports show that a majority of the soils found in the

``Diablo Grande'' 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. 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. In these

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

practical to separate them geographically.

The reports show that the soils within the 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 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 viticultural area, 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 ``Diablo

Grande'' viticultural area can also be found in the nearby surrounding

areas, these series represent very small portions of the total in those

surrounding areas. Additionally, many of the soil series which make up

the major soil types of the surrounding areas are not found at all

within the viticultural area. 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. These series are found to the east and north of the

viticultural area. 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.

There is another major difference between the ``Diablo Grande''

[[Page 33852]]

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.

The area surrounding the ``Diablo Grande'' 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 viticultural area is part of the Henry W. Coe State Park and

although this area includes some of the same soil series as the

``Diablo Grande'' viticultural 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. These soils generally have slopes of 30% to 75% and elevations of

700 to 3300 feet.

Topography

The geography of the 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 viticultural area, northeast and east

respectively, toward Interstate 5. Orestimba Creek traverses the

southwestern and southern boundary line as it flows eastward.

Current vineyard plantings are at elevations ranging from 1000 feet

mean sea level (msl) near the vineyard located in the vicinity of the

Oak Flat Ranch to 1800 feet msl at the Isom Ranch. These vineyard site

elevations are the highest elevations where grapes are grown in

Stanislaus County. This contrasts with other Stanislaus County

vineyards outside the ``Diablo Grande'' viticultural 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 viticultural area boundary. The petitioner distinguishes this

vineyard site from the ``Diablo Grande'' 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. These conditions

do not exist in the ``Diablo Grande'' viticultural area.

The topographic features of the viticultural area include many

``mini-valleys'' as a result of its mountainous structure. 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 viticultural 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, site selection becomes an important feature when working with

this type of topography as contrasted to the flat lands of 1% to 2%

slopes. 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.

The petitioner provided a diagram purporting to show how

mesoclimates are influenced by sloping contour topography. The southern

and western slopes receive a greater exposure to sunshine and,

therefore, accumulate more heat units than the northern or eastern

slopes. It is this difference in sunshine and heat that makes the

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 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 ``Diablo Grande'' viticultural area exhibit characteristics

distinctive enough to deserve consideration for a specific appellation.

ATF has concluded that there is sufficient evidence to establish the

``Diablo Grande,'' area as a distinct viticultural area under 27 CFR

part 9.

Geographic Brand Names

A brand name of viticultural significance may not be used unless

the wine meets the appellation of origin requirements for the

geographic area named. See 27 CFR 4.39(i). Consequently, establishment

of this viticultural area would preclude the use of the term ``Diablo

Grande'' as a brand name for a wine, unless the wine can claim ``Diablo

Grande'' as an appellation of origin, or complies with one of the

exceptions in the regulation.

Boundaries

The boundary of the ``Diablo Grande'' 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.

Paperwork Reduction Act

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

Chapter 35, and its implementing regulations, 5 CFR part 1320, do not

apply to this final rule because no requirement to collect information

is imposed.

Regulatory Flexibility Act

It is hereby certified that this regulation will not have a

significant economic impact on a substantial number of small entities.

The establishment of a viticultural area is neither an endorsement nor

approval by ATF of the quality of wine produced in the area, but rather

an identification of an area that is distinct from surrounding areas.

ATF believes that the establishment of viticultural areas merely allows

wineries to more accurately describe the origin of their wines to

consumers, and helps consumers identify the wines they purchase. Thus,

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 imposed. Accordingly, a

regulatory flexibility analysis is not required.

Executive Order 12866

It has been determined that this regulation is not a significant

regulatory action as defined in Executive Order 12866. Accordingly,

this final rule is not subject to the analysis required by this

Executive Order.

Drafting Information

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

Regulations Branch, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 9

Administrative practices and procedures, Consumer protection,

Viticultural areas, and Wine.

Authority and Issuance

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

Viticultural Areas, is amended as follows:

[[Page 33853]]

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);

(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: May 11, 1998.

John W. Magaw,

Director.

Approved: May 29, 1998.

John P. Simpson,

Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).

[FR Doc. 98-16502 Filed 6-19-98; 8:45 am]

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