Chiles Valley Viticultural Area (96F-111)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 9

[Notice No. 858]

RIN 1512-AA07

Chiles Valley Viticultural Area (96F-111)

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

ACTION: Notice of proposed rulemaking.

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

a petition for the establishment of a viticultural area in Napa County,

California, to be known as ``Chiles Valley.'' This proposal is the

result of a petition submitted by Mr. Volker Eisele, owner of the

Volker Eisele Vineyard and Winery.

DATES: Written comments must be received by May 19, 1998.

ADDRESSES: Send written comments to: Chief, Regulations Branch, Bureau

of Alcohol, Tobacco and Firearms, P.O. Box 50221, Washington, D.C.

20091-0221 (Attn: Notice No. 858). Copies of the petition, the proposed

regulation, the appropriate maps, and written comments will be

available for public inspection during normal business hours at: ATF

Public Reading Room, Office of Public Affairs and Disclosure, Room

6480, 650 Massachusetts Avenue, NW, Washington, D.C.

FOR FURTHER INFORMATION CONTACT: Thomas B. Busey, Specialist,

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

Massachusetts Avenue, NW, Washington, D.C. 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, providing 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 4.25(e)(2), Title 27, CFR, 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

proposed boundaries prominently marked.

Petition

ATF has received a petition from Mr. Volker Eisele, representing

the Chiles Valley District Committee proposing to establish a new

viticultural area in Napa County, California to be known as ``Chiles

Valley District.'' The proposed Chiles Valley District viticultural

area is located entirely within the Napa Valley. The proposed

viticultural area is located in the eastern portion of Napa Valley

between and on the same latitude as St. Helena and Rutherford. It

contains approximately 6,000 acres, of which 1,000 are planted to

vineyards. Four wineries are currently active within the proposed

viticultural area.

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

An historical survey written by Charles Sullivan spells out the

historical use of the name Chiles Valley and vineyard plantings dating

back to the late 1800's. Numerous references exist indicating the

general use of the name ``Chiles Valley'' to refer to the petitioned

area. The petitioner included copies of title pages of various

publications, guide and tour book references, public and private phone

book listings and Federal and State agency maps, to illustrate the use

of the name.

In the petitioner's original proposal, the term ``district'' was

included as part of the viticultural area name (i.e., Chiles Valley

District). Although the petitioner stated that there was no historical

evidence for the use of the term ``district'' in conjunction with

Chiles Valley, the committee felt that the use of this term was

important to emphasize that the Chiles Valley was part of a larger

valley, in this case the Napa Valley, which totally surrounds the

proposed viticultural area. Under California state law an appellation

that is totally surrounded by the Napa Valley appellation can only use

the name conjunctively with the name Napa Valley on any wine label. ATF

has permitted the addition of the term ``District'' to the proposed

names of viticultural areas before. See Stag's Leap District, 27 CFR

9.117; San Ysidro District, 27 CFR 9.130; and, Spring Mountain

District, 27 CFR 9.143. However, in each of these there was evidence

submitted to justify the use of the term ``district'' as part of the

viticultural area name.

ATF does not believe the petitioner has submitted sufficient

evidence to support the use of the term ``District'' with Chiles

Valley. Consequently, the name of the proposed viticultural area is

being proposed as ``Chiles Valley.'' However, ATF encourages the

submission of any specific comments on the issue of whether the term

``district'' in the proposed name is appropriate.

Historical or Current Evidence That the Boundaries of the Viticultural

Area Are as Specified in the Petition

According to the petitioner, the boundaries establish a grape

producing area with an identifiable character and quality, based on

climate, topography, and historical tradition. The historical evidence

can be dated to the mid 1800's with a land grant from the Mexican

government to Joseph Ballinger Chiles, whose name the valley would

later bear. The land grant was called Rancho Catacula and these lands

all lie within the proposed appellation boundaries. The boundaries of

the land grant are still recognized on U.S.G.S. maps of the area. A

vineyard planting was one of the earliest agricultural operations

conducted. For the most part the

[[Page 13584]]

boundaries of the proposed area use the land grant (Rancho line)

boundary lines. This area includes virtually all lands that in any way

might be used for agricultural purposes. Beyond the Rancho line are

very steep slopes, which are mostly part of the serpentine chaparral

soil formation. Historically it is also fairly clear the land grant

boundaries were drawn to include usable land rather than the watershed,

which, on all sides of the old Rancho Catacula is much further up the

slopes. In sum, the petitioner believes the proposed boundaries

encompass an area of remarkable uniformity with respect to soils,

climate and elevation that produce a unique microclimate within the

Napa Valley.

Evidence Relating to the Geographical Features (Climate, Soil,

Elevation, Physical Features, Etc.) Which Distinguish Viticultural

Features of the Proposed Area From Surrounding Areas

According to the petitioner, the geographical features of the

proposed viticultural area set it apart from the surrounding area in

the Napa Valley and produce a unique microclimate.

The lands within the proposed boundaries generally lie between the

800 and 1000 feet altitudes above sea level. The valley runs northwest

to southeast and is therefore an open funnel for the prevailing

northwesterly winds. This fairly constant northwesterly flow produces

substantial cooling during the day and, in combination with the

altitude, relatively dry air. During the night, this drier air leads to

more rapid cooling than in most of the Napa Valley. In addition, the

narrow valley surrounded by the hills up to 2200 feet concentrates the

cooler air flowing down the hillsides toward the valley floor where the

vineyards are located.

Also, the relative distance from the San Pablo Bay and the Pacific

Ocean allows the summer fog to move in much later than in the main Napa

Valley. By the time the fog does reach the Chiles Valley the air

temperatures have dropped much more dramatically than in the Napa

Valley, thereby causing much lower temperatures during the night. Late

fog ceiling, combined with low minimums, cause a very slow heat buildup

during the day, again producing relatively cooler average temperature

than is found in many places of the Napa Valley.

Available data indicates a ``Region Two'' according to the U.C.

Davis climate classification. The growing season starts later than in

the Napa Valley due to a more continental winter with temperatures

dropping below 20 degrees F. The high incidence of spring frost is

another indication of the generally cooler climate conditions.

In the areas immediately adjacent to the proposed boundaries, the

micro-climate changes significantly. As one moves up the hillsides on

either side of Chiles Valley the summer fog blanket gets thinner and

thinner and disappears altogether at approximately 1400 to 1500 feet

elevation.

Since the cold air drains down into the Chiles Valley, the night

time temperatures are quite a bit higher on the steep slopes than on

the valley floor. In addition, the lack of fog allows a much faster

temperature build up during the day, reaching the daily high two to

three hours earlier than on the valley floor. Not only is the

temperature drop at nightfall less, but also much more gradual so that

during a 24 hour period the heat summation is substantially higher on

the slopes than within the proposed boundaries. In winter, the

situation is reversed. Strong winds tend to chill the uplands creating

much more of a continental climate than on the valley floor. Snowfall

above 1400 feet has been observed many times.

The microclimatic limitations combined with enormous steepness and

very poor soil (serpentine, heavy sandstone formations, and shale out

croppings) create an abrupt change from the proposed viticultural area

to the areas surrounding it.

The petitioner believes that Pope Valley to the north of the

proposed viticultural area is also significantly different. A

combination of a lower elevation valley floor and substantially higher

mountains on the western side causes the formation of inversion layers

which result in substantially higher average temperatures during the

growing season and significantly lower ones in the winter. In addition,

the summer fog from the Pacific Ocean never reaches the Pope Valley.

The petitioner also states that the particular interplay between

climate and soil make for unique growing conditions in the proposed

area. The soils within the proposed appellation are uncommonly well

drained and of medium fertility. The overall terrain gently slopes

toward a series of creeks which act as natural drainage for surface as

well as subterranean water. The petitioner believes this is a good

basis for high quality grapes.

Uniform elevation and relatively uniform soil make the proposed

viticultural area a clearly identifiable growing area. Almost all

vineyards lie between 800 and 1000 feet elevation. As a general rule

the soils in the Chiles Valley all belong to the Tehama Series: Nearly

level to gently slopping, well drained Silt loams on flood plains and

alluvial fans.

The total planted acreage in 1996 was roughly 1000 acres. The

remaining plantable area does not exceed 500 acres. This small size

illuminates the petitioner's goal of a well defined, specific

appellation.

Proposed Boundaries

The boundaries of the proposed Chiles Valley viticultural area may

be found on four 1:24,000 scale U.S.G.S. maps titled: St. Helena, CA

(1960); Rutherford, CA (1968); Chiles Valley, CA (1980); and

Yountville, CA (1968).

Public Participation-Written Comments

ATF requests comments from all interested persons. Comments

received on or before the closing data 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 on or before the closing date.

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.

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 of proposed rulemaking because no requirement to

collect information is proposed.

[[Page 13585]]

Regulatory Flexibility Act

It is hereby certified that this proposed regulation will not have

a significant 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 the region.

Accordingly, a regulatory flexibility analysis is not required

because the proposal, if promulgated as a final rule, is not expected

(1) to have significant secondary, or incidental effects on a

substantial number of small entities; or (2) to impose, or otherwise

cause a significant increase in the reporting, recordkeeping, or other

compliance burdens on a substantial number of small entities.

Executive Order 12866

It has been determined that this proposed regulation is not a

significant regulatory action as defined by 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 Thomas B. Busey,

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 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.

Par. 2. Subpart C is amended by adding Sec. 9.154 to read as

follows:

* * * * *

Subpart C--Approved American Viticultural Areas

Sec. 9.154 Chiles Valley

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

section is ``Chiles Valley.''

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

boundary of the Chiles Valley viticultural area are four 1:24,000 Scale

U.S.G.S. topography maps. They are titled:

(1) St. Helena, CA 1960 photorevised 1980

(2) Rutherford, CA 1951 photorevised 1968

(3) Chiles Valley, CA 1958 photorevised 1980

(4) Yountville, CA 1951 photorevised 1968

(c) Boundary. The Chiles Valley viticultural area is located in the

State of California, entirely within the Napa Valley viticultural area.

The boundaries of the Chiles Valley viticultural area, using landmarks

and points of reference found on appropriate U.S.G.S. maps follow. The

local names of roads are identified by name.

(1) Beginning on the St. Helena, CA quadrangle map at the

northernmost corner of Rancho Catacula in Section 34, Township 9 North

(T9N), Range 5 West (R5W), Mount Diablo Base and Meridian (MDBM);

(2) Then in southwesterly direction along the Rancho Catacula

boundary line to its intersection with the Rancho La Jota boundary

line;

(3) Then in a south-southeasterly direction approximately 3,800

feet along the Rancho Catacula/Rancho La Jota boundary line to the

point where the Rancho Catacula boundary separates from the common

boundary with Rancho La Jota;

(4) Then in a southeasterly direction continuing along the Rancho

Catacula boundary approximately 23,600 feet to a point of intersection,

in the NE \1/4\ Sec. 19, T8N, R4W, on the Chiles Valley quadrangle map,

with a county road known locally as Chiles and Pope Valley Road;

(5) Then in a southwesterly direction along Chiles and Pope Valley

Road to a point where it first crosses an unnamed blueline stream in

the SE \1/4\ Section 19, T8N, R4W;

(6) Then following the unnamed stream in generally southeast

direction to its intersection with the 1200 foot contour;

(7) Then following the 1200 foot contour in a northeasterly

direction to a point of intersection with the Rancho Catacula boundary

in section 20, T8N, R4W;

(8) Then in a southeasterly direction along the Rancho Catcula

boundary approximately 17,500 feet to the southwest corner of Rancho

Catacula in section 34, T8N, R4W on the Yountville, CA, quadrangle map;

(9) Then in a northeasterly direction along the Rancho Catacula

boundary approximately 650 feet to its intersection with the 1040 foot

contour;

(10) Then along the 1040 foot contour in a generally east and

northeast direction to its intersection with the Rancho Catacula

boundary;

(11) Then in a northeasterly direction along the Rancho Catacula

boundary approximately 1100 feet to its intersection with the 1040 foot

contour;

(12) Then along the 1040 foot contour in an easterly direction and

then in a northwesterly direction to its intersection of the Rancho

Catacula boundary;

(13) Then in a southwesterly direction along the Rancho Catacula

boundary approximately 300 feet to a point of intersection with a line

of high voltage power lines;

(14) Then in a westerly direction along the high voltage line

approximately 650 feet to its intersection with the 1000 foot contour;

(15) Then continuing along the 1000 foot contour in a generally

northwesterly direction to the point of intersection with the first

unnamed blueline stream;

(16) Then along the unnamed stream in a northerly direction to its

point of intersection with the 1200 foot contour;

(17) Then along the 1200 foot contour in a northwesterly direction

to its points of intersection with the Rancho Catacula boundary in

Section 35, T9N, R5W on the St. Helena, CA, quadrangle map;

(18) Then along the Rancho Catacula boundary in a northwesterly

direction approximately 5,350 feet to a northernmost corner of Rancho

Catacula, the beginning point on the St. Helena quadrangle map a the

northernmost corner of Rancho Catacula in Section 34, T9N, R5W, MDBM.

Signed: February 20, 1998.

John W. Magaw,

Director.

[FR Doc. 98-7200 Filed 3-19-98; 8:45 am]

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